Direct tax – Important due dates for August 2021 and Notification/Circular/Press Release/Order of July 2021 – SK Patodia

Direct tax – Important due dates for August 2021 and Notification/Circular/Press Release/Order of July 2021

Due Date for Income tax Compliance (AUGUST 2021)

 

7th August 2021 Deposit of TDS/TCS deducted /collected for the month of July, 2021
14th August 2021 Issue of TDS Certificate for tax deducted under section 194-IA/194-IB and 194M in the month of June, 2021.
15th August 2021 Quarterly TDS certificate in respect of tax deducted (other than salary) for the quarter ending June 30, 2021.
15th August 2021 Uploading of the declaration in Form No.15G/15H during the quarter ending 30th June, 2021.
30th August 2021 Furnishing of challan-cum-statement in respect of tax deducted under section 194-IA/194-IB and 194M in the month of July, 2021
31st August 2021 Payment of tax under the Direct Tax Vivad se Vishwas Act, 2020 without additional charge.

(vide Notification No. 39/2021, dated 27-04-2021 and vide Circular no. 12/2021, dated 25-06-2021)

31st August 2021 Furnishing of Form 10A/Form 10AB for registration/provisional registration/intimation/approval/provisional approval of Trust/ Institutions/ Research Associations etc. under section 10(23C), 35 and 80G of the act.
(vide Circular no. 12/2021, dated 25-06-2021)

Income Tax Notifications and Circulars – July 2021

1.Form 15CA & CB submission in manual format

Relaxation in electronic filing of forms 15CA & 15CB continued, in view of difficulties reported by taxpayers in filing of the forms online on new website. Date for submission of forms in manual format to the authorised dealers is extended to 15th August, 2021.

2.Guidelines for asset received in connection with the dissolution or reconstitution

Finance Act, 2021 inserted a new section 9B in the Income-tax Act 1961. This section mandates that whenever a specified person receives any capital asset or stock in trade or both from a specified entity, during the previous year, in connection with the dissolution or reconstitution of such specified entity, then it shall be deemed that the specified entity have transferred such capital asset or stock in trade or both, as the case may be, to the specified person (hereinafter referred to as “deemed transfer”).

Similarly the Finance Act 2021 substituted sub-section (4) of section 45 of the Act. This newly substituted sub-section (4) now provides that where a specified person receives any money or capital asset or both from a specified entity, during the previous year, in connection with the reconstitution of such specified entity, then any profits or gains arising from receipt of such receipt by the specified person shall be chargeable to income-tax as income of the specified entity under the head “Capital gains”.

Vide CIRCULAR NO. 14 OF 2021, DATED 2-7-2021 guidelines were provided.

3.CBDT instruction on Processing of old pending refund claims

Due to certain technical issues or for other reasons not attributable to the assessee concerned, several returns for various assessment years up to the assessment year 2017-18 which were otherwise filed validly could not be processed. Consequently, intimation u/s 143(1) regarding processing of such returns could not be sent within the period of one year from the end of the financial year in which such returns were filed as prescribed in the Act.
As per the earlier order dated 10th July 2020, time frame was given till 31.10.2020 to process such returns with refund claims.
The matter has been re-considered in view of pending taxpayers’ grievances related to issue of refund. To mitigate genuine hardship being faced by the taxpayers on this issue, income tax relaxes the time-frame prescribed in second proviso to sub-section (1) of section 143 and directs that all validly filed returns up to assessment year 2017-18 with refund claims, which could not be processed and which have become time-barred. The intimation of such processing under sub-section (1) of section 143 of the Act can be sent to the assessee concerned by 30.09.2021. All subsequent effects under the Act including issue of refund shall also follow as per the prescribed procedures.
The relaxation accorded above shall not be applicable to the following returns:
(a) returns selected in scrutiny;
(b) returns remain unprocessed, where either demand is shown as payable in the return or is likely to arise after processing it;
(c) returns remain unprocessed for any reason attributable to the assessee

[Order under section 119 of the Income-tax Act, 1961 dated 5th July 2021]