Direct Tax Newsletter – Circulars and Notifications – August 2020 – SK Patodia

Direct Tax Newsletter – Circulars and Notifications – August 2020

  • CBDT Releases Guidance on Mutual Agreement Procedure (MAP) – F.No. 500/09/2016-APA-I, dated 07.08.2020

Under MAP, tax payers (taking benefit of tax treaty) likely to get relief from unauthorised action of tax authorities and will restore confidence in the tax administration system.

  • E-assessment Scheme, 2019 modified – Notification No. 60/2020, dated 13.08.2020

Faceless assessment in electronic mode, with no human interface, notices to be  issued  electronically by a Central cell, Cases to be allocated to Assessment Units in a random manner and Central Cell to be the single point of contact between taxpayer and the Department.

Request for personal hearing can be done and it will be exclusively through Video Conference only for specified cases with approval.

Proceedings like rectification, recovery proceedings etc will continue in personal hearing by residual hierarchy.

 

 

Due Dates

7 September 2020 – (Deposit TDS/TCS for the month of August, 2020)

15 September 2020 – (Pay 45% of tax as advance tax for the assessment year 2021- 22)

30 September 2020 – (Deposit TDS related to property acquisition)

30 September 2020 – (Deposit TDS related to commission – not being insurance commission, brokerage, contractual fee, professional fee to a resident person by an  Individual  or  a HUF who are not  liable  to deduct TDS  under  section 194C, 194H, or 194J and if amount exceed Rs.50 lakh p.a.)

30 September 2020 – (Last date to file return of income for the  assessment year 2019-20)

 

Measures proposed for widening the tax base

Specified   Financial   Transaction   Reporting   will   include   transactions   like (1) Payment   to   hotels   above   Rs.   20,000 (2) Payment of property tax above Rs.20,000 (3) Payment of health insurance premium above Rs.20,000 (4) Payment of rent above Rs.40,000 (5) Payment of life insurance premium above Rs.50,000 (6) Electricity consumption above Rs.1 lakh (7) Payment of educational fee/donations above Rs.1 lakh p.a (8) Purchase of jewellery, white goods, painting, marble etc. above Rs.1 lakh (9) Deposit/credits in the current account above Rs.50 lakh (10) Deposit/credits in  the  non-current account such as savings accounts above Rs.25 lakh.

 

TDS/TCS proposed on new transactions

-TDS on  Cash withdrawal above Rs. 1 crore (20 lakh for Non- filers)

-TCS on motor vehicle above Rs. 10 Lakh

-TCS on Foreign remittance under LRS above Rs.7.5 lakh/ overseas tour packages

-TDS on e-commerce suppliers & TCS on purchase of goods above Rs.50 Lakh

 

What’s new in Form 26AS

The Income tax department has come up with a new version of Form 26AS with additional information which they have received from different parties like cash  deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy back of shares, cash payment for goods and services, etc and now they have taken this initiative to share it with the tax payers in their Form 26AS. This will help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR.