Direct tax – Important due dates for November 2021 and Notification/Circular/Press Release/Order of October 2021″ – SK Patodia

Direct tax – Important due dates for November 2021 and Notification/Circular/Press Release/Order of October 2021″

Due Date for Income tax Compliance (November 2021)

 

7th November 2021 Deposit of TDS/TCS deducted /collected for the month of October, 2021
14th November 2021 Due date for issue of TDS Certificate for tax deducted under section 194-IA (TDS on payment for transfer of immovable property) /194-IB (TDS on rent by certain Individuals/HUF) and 194M (TDS on contractual/commission/brokerage/professional fee by certain Individual/HUF) in the month of September, 2021
15th November 2021 Quarterly TDS certificate (in respect of tax deducted for payments other than salary) for the quarter ending September 30, 2021.
30th November2021 Furnishing of challan-cum-statement in respect of tax deducted under section 194-IA/194-IB and 194M in the month of October, 2021
30th November2021 Upload the declarations received from recipients in Form No. 15G/15H during the quarter ending June, 2021

Income Tax Notifications and Circulars – October 2021

  • Certain non resident/foreign co./foreign investor exempted from filing ITR (Notification No. 119, dated 11-10-2021):

 The following class of persons are exempt from filing of return of income u/s 139A

  • Non-resident (not co.) having income only from investment in the specified fund (related to IFSC), subject to fulfilment of conditions mentioned in Rule 114AAB(1) of the Income-tax Rules 1962 (IT Rules).
  • Foreign investor who has transactions only in capital assets referred to in section 47(viiab) which are listed at IFSC and consideration on transfer of such capital asset is paid or payable in foreign currency, subject to fulfilment of the conditions mentioned in Rule 114AAB(2A) of the IT Rules.

 

The relaxation (i.e. exemption from the requirement of furnishing a return of income) shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the IT Act has been issued for filing a return of income for the fiscal year specified therein.

  • Form 26AS will show more financial information (As per new order dated 26th Oct 2021):

CBDT authorized DGIT (Systems) to upload various financial information related to assessee in 26AS, within 3 months of information received by her/him. Such financial information includes

– Foreign remittance reported by authorized dealers\

– Information in TDS return (salary)

– Information in ITR of other taxpayer

– Interest on income-tax refund

– Form 61 (a person who has agricultural income) / Form 61A (SFT)

– Off market transactions

– Dividend from Mutual Fund

– Purchase of Mutual Fund

 

  • Clarification regarding Section 36(1)(xvii) of the Income-tax Act. 1961 inserted vide Finance Act. 2015 –

The Finance Act, 2015 inserted the following clause (xvii) in sub-section (1) of section 36 of the Income-tax Act, 1961 (the Act) to provide for deduction on account of the amount of expenditure incurred by a co-operative society engaged in the business of manufacture of sugar

– “(xvii) the amount of expenditure incurred by a co-operative society engaged in the business of manufacture of sugar for purchase of sugarcane at a price which is equal to or less than the price fixed or approved by the Government;” This clause took effect from 01.04.2016 and accordingly applied to assessment year 2016-17 and subsequent assessment years.

The issue of treatment of additional payment for sugarcane price by Cooperative sugar mills as an income distribution to farmer members and the resultant tax liabilities has been brought to the notice of the Central Board of Direct Taxes (the Board).
The matter has been examined by the Board and in this regard, it is clarified that the phrase ‘price fixed or approved by the Government’ in clause (xvii) in sub-section (1) of section 36 of the Act includes price fixation by State Governments through State-level Acts/Orders or other legal instruments that regulate the purchase price for sugarcane, including State Advised Price, which may be higher than the Statutory Minimum Price/ Fair and Remunerative Price fixed by the Central Government.