|Table of Contents|
|A. Due Dates for Income Tax Compliance – March 2023|
|B .Notifications and Circulars|
|1.||Submission of Statement of Financial Transactions (SFT) for Interest income (Abolishing of limit of Rs 5000)|
|2.||Extension of time limit for compliance to be made for claiming any exemption under Section 54 to 54GB|
|3.||CBDT Notifies Income Tax return forms for the AY 2023-24|
|4.||Audit Report under form 10B and 10BB for Trust|
|5.||Window to file application for Lower/NIL TDS certificate for FY 2023-24 open|
Due Date for Income tax Compliance (March 2023)
|2th March 2023||Payment of TDS on property deducted in the month of January 2023|
|7th March 2023||Deposit of TDS/ TCS deducted/collected for the month of February, 2023|
|15th March 2023||• Fourth installment of advance tax for the assessment year 2023-24.
• Due date for payment of whole amount of advance tax in respect of assessment year 2023-24 for assessee covered under presumptive scheme of section 44AD / 44ADA
|30th March 2023||• Payment of TDS withheld in the Month of February 2023
– On property
– On rent above Rs.50,000 p.m.
– On Commission, Contractual Payment, Professional Fee above 50 lacs in a financial year
|31st March 2023||• Country-By-Country Report in Form No. 3CEAD for the previous year 2021-22 by a parent entity or the alternate reporting entity, resident in India, in respect of the international group of which it is a constituent of such group
• Country-By-Country Report in Form No. 3CEAD for a reporting accounting year (assuming reporting accounting year is April 1, 2021 to March 31, 2022) by a constituent entity, resident in India, in respect of the international group of which it is a constituent if the parent entity is not obliged to file report under section 286(2) or the parent entity is resident of a country with which India does not have an agreement for exchange of the report etc.
• Uploading of statement [Form 67], of foreign income offered to tax and tax deducted or paid on such income in previous year 2021-22, to claim foreign tax credit [if return of income has been furnished within the time specified under section 139(1) or section 139(4)
Specified persons are required to furnish a statement of financial transaction (SFT) including information relating to interest income.
The information is to be reported for all account/deposit holders where cumulative interest exceeds Rs.5,000 per person in the financial year.
Vide Notification No. 1/2023 dt. Jan 5, 2023 reporting requirement is modified and information is to be reported for all account/deposit holders where any interest exceeds 0% in the financial year excluding Jan Dhan Accounts.
In the view of the changes mentioned above, the limit prescribed will come into effect from 05/01/2023.
2. Extension of time limit for compliance to be made for claiming any exemption under Section 54 to 54GB of the Income-tax Act,1961 (‘ Act’) in view of the then-Covid-19 pandemic
In view of the representations received and on further consideration of the prevailing COVID-19 pandemic and resultant restrictions imposed, causing genuine hardship faced by taxpayers in making the aforementioned compliances under the Act, the CBDT, hereby provides that the compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase. construction or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in Section 54 to 54 OB of the Act, for which the last date of such compliance falls between 01st April 2021 to 28th February 2022 (both days inclusive), may be completed on or before 31st March 2023.
3.CBDT Notifies Income Tax return forms for the AY 2023-24.
ide Notification No. 4/2023 dt. Feb 10, 2023 ITR for AY 2023-24, i.e., ITR-1 SAHAJ, ITR-2, ITR-3, ITR-4 SUGAM, ITR-5, ITR-6, ITR-V and ITR Acknowledgment; notified.
In the ITR, the new schedule for income from the transfer of virtual digital assets is added as per the amendment of Finance Bill 2022.
ITR 7 applicable to persons like trust is yet to be notified.
In December 202, a draft of the proposed Common Income Tax Return (ITR) Form, likely to be applicable from AY 2023-24, for comments from Professionals, Taxpayers, and Stakeholders were notified. Except for ITR-7, it was planned to consolidate all existing ITR forms into a common/single ITR form.
However, separate forms are notified for AY 2023 24.
4.Government continue stricter monitoring of Activities of Charitable Trust.
In the recent notification RBI/2022-23/178 dated 16th February 2023, RBI advised Member banks to incorporate necessary changes in their core banking / middleware solutions to capture the requisite details while forwarding the foreign donations through NEFT and RTGS systems to SBI. Details include basic details of donor, country, Legal Entity Identifier (LEI) code which is a unique code to identify parties to financial transactions worldwide, Purpose of donation etc) and SBI is required to report the same to MHA on a daily basis.
Further, as per existing provisions of Income Tax, when income of a trust (computed without giving effect to exemption) exceeds Rs.2,50,000, the accounts have to be audited by a CA in Form 10B.
Vide Notification No.7/2023 dated 21st Feb 23, substantial changes are done in the said Audit report. As per said notification, Form 10B will be applicable to trust wherein income of trust (computed without giving effect to exemption) exceeds 5 crores or trust has received any foreign contribution or trust has applied any part of its income outside India.
New form 10BB is introduced and the same will be applicable to trust when income of a trust (computed without giving effect to exemption) exceeds Rs.2,50,000 and Form 10B is not applicable.
In the existing Form 10B, CAs are required to certify that accounts give a true and fair view. As per notification, now in both forms, in addition to certification for account, CAs will be required to certify that information mentioned in the Annexures are True and correct. Annexure format is of 15 pages which includes 49 points and 29 schedules. Form 10BB annexure format is of 4 pages which includes 32 points and 7 schedules.
Many details asked in both forms are such details which are currently provided by trust in Income Tax forms and Tax Audit Report (if applicable).
Last year vide Notification No. 94/2022 dated 10 August 2022 notified a new rule for the Trust to maintain books of account and other long list of details/documents.
5.Window to file application for Lower/NIL TDS certificate for FY 2023-24 open
Taxpayers file lower/NIL TDS applications with the income tax department, if a major amount of TDS (withheld by payer of income) is regularly refunded back after filing the income tax return by said taxpayer.
If the jurisdictional TDS officer of the payee issues a certificate of No Deduction or Lower Deduction of Tax, in response to the application filed before him, then the deductor/payer of Income should take into account such certificate and deduct tax at the rates mentioned therein.
To facilitate the applicants to get the certificates issued with effect from 1st April of the Financial Year, applicants can apply for lower/nil deduction certificate from 28th February of the immediately preceding Financial Year.
Therefore, applications for the certificates for F.Y .2023-24 shall be allowed to be filed from Today i.e. on or after 28.02.2023.