“Direct tax – Important due dates for September 2022, Income Tax updates – August 2022”

 

Table of Contents
1. Due Dates for Income Tax Compliance – September 2022
Notifications
2. Update for Charitable Trust Claiming Exemption
3. Form 29D notified for claiming of refund of Tax borne by TDS deductor u/s 195
Other Matters
4. How to deal with Income tax return filing if you have missed your July 31, 2022 deadline.
5. Punjab and Haryana HC stays Section 148 Notice & Section 148A(d) order

1. Due Date for Income tax Compliance (September2022)

Due Date Compliance
7th September 2022 Depositof TDS/ TCS deducted/collected for the month of August, 2022
14th September 2022 Issue of TDS Certificatesor tax deducted in the month of August, 2022 on:

• Transfer of Immovable property (S.194-IA);
• Payment of Rent for use of Land or Building (S. 194-IB);
• Payment by Individuals/ HUF for carrying out any work, brokerage, professional fee above 50 lakhs (S. 194M).

15th September 2022 Second installment of advance tax for the assessment year 2023-24
30th September 2022 Furnishing of TDS Return (challan-cum-statement) in respect of tax deducted in the month of August, 2022 on:

• Transfer of Immovable property (S.194-IA);
• Payment of Rent for use of Land or Building (S. 194-IB);
• Payment by Individuals/ HUF for carrying out any work, brokerage, professional fee above 50 lakhs (S. 194M)

Notifications 
 

2.Update for Charitable Trust Claiming Exemption

Sec 12A(1)(b) provides that trust having income above maximum amount which is not chargeable to tax (before claiming exemption) is required to submit audit report in Form 10B.
By finance act 2022, additional requirement of maintaining books of accounts in prescribed manner is added. Accordingly vide notification dated 10th August 2022, the manner in which books of accounts required to be maintained is specified.
It includes maintaining record of –
• all the projects and institutions run by the person containing details of their name, address and objectives;
• record of voluntary contribution made with a specific direction that they shall form part of the corpus,
• details of name of the donor, address, permanent account number (if available) and Aadhaar number (if available);
• application out of such voluntary contribution containing details of amount of application,
• name and address of the person to whom any credit or payment is made and the object for which such application is made;
• record of contribution received for the purpose of renovation or repair of temple, mosque, gurdwara, church or other place notified,
• record of loans and borrowings,
• record of properties held by the assessee,
• record of specified persons etc

Further, books of account and other documents specified shall be kept and maintained for a period of 10 years.

[Notification No. 94 of 2022

dated 10th August2022]

3.Form 29D notified for claiming of refund of Tax borne by TDS deductor u/s 195

As per earlier provisions of Sec 248 in a case where a person deducted tax u/s 195 on any income paid to a non-resident and tax is borne by deductor; deductor may file appeal to CIT (A) for a declaration that no tax was deductible on such income and obtain refund of tax so deducted. In other words, to obtain a refund of the tax deducted and paid by a person, where it was not deductible, a tax deductor had no recourse to approach the Assessing Officer. At the same time, the agreement or arrangement, under which the tax has been deducted and paid, is not brought on the record of the Assessing Officer or examined by him.

In view of the above, New Sec 239A was inserted for tax deducted and credited to the Central Government on or after 01.04.2022. As per said provision, an application for refund of such tax be made before the Assessing Officer. Such a person can, if not satisfied with the order of the Assessing Officer, file an appeal before CIT(A).

Form No. 29D is notified for claiming refund and which shall be filed along with a copy of an agreement referred to in Sec 239A (By the claimant himself or through a duly authorised agent) within 30 days from date of payment of tax.

[Notification No. 98 of 2022

dated 17th August2022]

4. How to deal with Income tax return filing if you have missed your July 31, 2022 deadline.

For the Financial Year 2021-22 that ended on March 31, 2022, individual taxpayers, who are not required to do audit of books of accounts, were required to file their Income Tax Returns (ITR) by July 31, 2022.
If, due to any reason, the due date of July 31, 2022 is missed, then a belated ITR can be filed on or before December 31, 2022. However, every extension comes with its own sets of benefits and sacrifices to be made.
Due Date for filing Original return was July 31, 2022
Due Date for filing Belated/Revised return is December 31, 2022

Filing a Belated ITR
• If you have a tax refund due from the Income Tax Department, then filing a belated ITR allows you to claim such tax refund;
• Losses of the current year are allowed to be set-off from other incomes as per the provisions of income tax law;
• Investment based deductions can still be claimed such as LIC premium, medical insurance, PF, NPS, Tax Saver mutual funds, Tax Saver FDs, Repayment of housing
loans, etc.;

• Belated return filed can also be revised on account of any error or omission in the filed ITR on or before December 31, 2022.
Sacrifices involved while filing a Belated ITR

• Specific Losses of Current Year cannot be carried forward to future years like
▪ losses from short or long term capital loss,
▪ losses from business or profession (excluding depreciation),
▪ losses from activity of owning and maintaining race horses.

However, Loss from House Property can be carried forward
• Interest on default in filing belated return applies @1 per cent per month or part thereof that immediately starts from the date following the due date of filing of ITR and ends on the date of filing of ITR (234A)

• Mandatory late return filing fees –

Particulars Late fee amount
Taxable income is below Rs. 500000 Rs 1,000
Taxable income is equal to or more than Rs. 5,00,000 Rs 5,000
  • Interest on Income Tax Refund, if applicable, will be calculated from the date of filing ITR and not from April 1, 2022.

 

 

5. Kulwant Singh Vs Union Of India And Others (Punjab and Haryana HC) CWP-18032-2022 (O&M) dated 23rd August,2022

Stays Notice under section 148 & order under section 148A(d)
• The proviso to Section 149 specifically provides that no notice under Section 148 shall be issued if such notice could not have been issued at that time on account of being beyond the time limit specified under the provisions of Section 149(1)(b) as it stood immediately before the commencement of Finance Act 2021 as such
• In terms of proviso to Section 149 as amended w.e.f. 01.04.2021, since more than 6 years had elapsed from the end of assessment year 2013-2014 on 31.03.2020, the re-assessment notice for assessment year 2013-2014 could not be issued.

• The Court after taking note of various contentions of the assesse, issued notice of motion and ordered-
“Further proceedings in the matter shall be kept in abeyance till further orders”.