Notification of Income Tax Return Forms for the A.Y. 2020-2021.

Vide Notification No. 31/2020 of the Income Tax Act, 1961, the Central Board of Direct Taxes (CBDT) has notified the Income Tax Return (ITR) Filing Forms for the Assessment Year 2020-21.

As announced earlier by the Hon’ble Finance Minister of India, The due date for filing the Income Tax Return for the A.Y. 2020-21 has been extended to 30th November, 2020.

To view the Notification: CLICK HERE

Special economic and comprehensive package of Rs 20 lakh Crores

India is presently in Lockdown 3 where the Economy is seeing a downward trend but the Hon’ble Prime Minister of India, Shri Narendra Modi Ji, on 12th May, 2020 announced aSpecial economic and comprehensive package of Rs 20 lakh Crores – equivalent to 10% of India’s GDP. He gave a clarion call for Self-Reliant India Movement. He also outlined five pillars of Aatmanirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.

Hon’ble Finance Minister of India, Smt. Nirmala Sitharaman Ji held a press conference on 13th May, 2020 and announced measures for relief and credit support related to businesses, especially MSMEs to support Indian Economy’s fight against Novel COVID-19. The relief measures ranges across Micro, Small and Medium Enterprises (MSMEs), Employees Provident Fund (EPF), Non- Banking Finance Companies (NBFCs), Housing Finance Companies (HFCs) and Micro Finance Institutions (MFIs), Distribution Companies (DISCOMs), Contractors, Real Estate Sector and several other reliefs in Income Tax Act ranging from Extension in due dates for the Financial Year 2019-20 along with Reduction in TDS and TCS Rates by 25%.

COVID-19: Extension of Due dates and Relief in Compliances

As the nation is amid country wide lockdown, the Economy is severely affected. To mitigate the Financial and Economic impact of COVID-19, The Honorable Finance Minister of India, Mrs. Nirmala Sitharaman Ji held a Press Conference on 24th March, 2020 and made several announcements relating the various sectors like Income Tax, Goods and Services Tax, Customs, Financial Service and Corporate Affairs where various Due dates of the relevant statutes are extended along with relief in reduced Interest Payment and Nil Late Fees and various relief in the Compliances to the Corporate Sector.

Clarification in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961

Section 269SU (Acceptance of payment through prescribed electronic modes) of the Income Tax Act, 1961 was inserted vide the Finance Act (No. 2) of 2019.

The Section states that:

Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic modes, of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year.

The prescribed modes are as follows:

i. Debit Card Powered by Rupay.

ii. Unified Payment Interface (UPI) (BHIM-UPI)

iii. Unified Payment Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).

Now, as per Circular No. 12 of 2020 of the Income Tax Act, 1961, it is clarified that provisions of section 269SU of the Act shall not be applicable to a specified person having only B2B transaction s (i.e. no transaction with retail customer/consumer) if at least 95% of aggregate of all amounts received during the previous year, including amount received for sales, turnover or gross receipts, are by any mode other than cash.

To read the Circular: CLICK HERE

Reduction in TDS and TCS Rates by 25% – A Big Enhancement to Liquidity upto Rs. 50,000 Crores

Vide various relief measures announced by Hon’ble Finance Minister of India, Smt. Nirmala Sitharaman Ji on 13th May, 2020, one such relief is Tax Deducted at Source (TDS) rates for all non-salaried payment to residents, and Tax Collected at Source (TCS) rate will be reduced by 25 percent of the specified rates for the remaining period of FY 20-21. This willprovided liquidity to the tune of Rs 50,000 Crores. 

To View the detailed Chart, CLICK HERE.