Important Due Dates for January 2024, Income Tax Updates – December 2023

Due Date for Income tax Compliance (January 2024)

Due Date Compliance
7th December 2023 Deposit of TDS/ TCS deducted/collected for the month of December 2023.
14th January 2024 Issue of TDS Certificates for TDS deducted in the month of November, 2023 :

• Purchase of Immovable Property
• Payment of rent above ₹ 50,000 p.m. by Individual or HUF
• On Commission, Contractual Payment, Professional Fee above ₹ 50 Lakhs in a financial year
• Payment on transfer of Virtual Digital Assets

15th January 2024 Furnishing of Form 24G by an office of the Government where TDS/TCS for the month of December, 2023 has been paid without the production of a challan.

Quarterly statement of TCS for the quarter ending December 31, 2023.

​Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending December, 2023.

​Due date for furnishing of Form 15G/15H declarations received during the quarter ending December, 2023.

30th January 2024 Furnishing of Challan Cum Statement for TDS withheld in the Month of December, 2023:

• Purchase of Immovable Property
• Payment of rent above ₹ 50,000 p.m. by Individual or HUF
• On Commission, Contractual Payment, Professional Fee above ₹ 50 Lakhs in a financial year.
• Payment on transfer of Virtual Digital Assets
Quarterly TCS certificate in respect of quarter ending December 31, 2023

31th January 2024 Quarterly statement of TDS for the quarter ending December 31, 2023

​Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending December 31, 2023

​Exercising the option to opt for alternative tax regime under Section 115BAA by a domestic company for assessment year 2021-22.

1. Vide notification dated 13.12.2023, due date of filing of Accounts to Charity Commissioner of Maharashtra extended

Charitable trusts registered with Charity Commissioner Maharashtra are required to file accounts by 30th September. It was extended twice for FY 2022-23. It is further extended till December 31,2023.
2.New TDS guidelines for e-commerce operators [Circular no.20 of 2023]

In order to widen and deepen the tax net by bringing participants of e-commerce within the tax net, Finance Act 2020 inserted a​ new section 194-O in the Act so as to provide for a new levy of TDS @1%. The TDS is to be paid by e-commerce operators for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. E-commerce operators are required to deduct tax at the time of credit of amount of sale or service or both to the​ account of e-commerce participant or at the time of payment thereof to such participant by any mode, whichever is earlier.

Vide circular no.20 of 2023, new TDS guidelines for e-commerce operators are issued. Summary of important points of said circulars are as follows:

a. There could be a buyer side e-commerce operator (ECO) Involved in buyer side functIons and a seller side ECO Involved in seller side functions. As final payment is done by Seller side ECO, TDS obligation is on it.

b. Where the seller side ECO is the actual seller, TDS obligation is on ECO which finally makes payment to the seller, on gross amount including charges but excluding GST (unless charges are paid on lump-sum basis).

c. Adjustment is allowed for purchase return and sales discount, as allowed under 194Q guidelines subject to discount passed on by buyer.
3. IBC have overriding effect on Revenue’s claims raised after resolution [TUF Metallurgical Pvt. Ltd Vs UOI and Anr – Delhi HC]In the case of TUF Metallurgical Pvt. Ltd Vs UOI and Anr, the appellant took over management of another company in terms of the resolution plan that was approved by the NCLT.

Delhi HC observed that the impugned notices and orders pertains to revenue’s claims for income-tax for the period much prior to the date of approval of the resolution plan. Pointed out that the public announcement for submission of claims by Jan 21, 2019, however the Revenue did not file any claim till that date or even thereafter and it was only after the approval of resolution plan by the NCLT vide order dt. 05/11/2019 that the Revenue issued the impugned assessment order and demand Notice.

HC set aside order after referring to SC judgments in Ruchi Soya, EMCO Ltd and Ghanshyam Mishra apart from Delhi HC judgment in Sree Metaliks wherein it was held that, “once a resolution plan is duly approved by the adjudicating authority under sub-section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the corporate debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the adjudicating authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan”.

4.Can prosecution be launched against independent, non-executive, and nominee director under income tax act?

Revenue ​can launch prosecution against the c​ompany as well as all the directors for the offence punishable under Sections 276-B (​e.g. delay in payment of TDS).​

Recently in the case of Anish Modi, Bombay high court quashed prosecution against an independent director ​on the ground that the condition of serving notice was not fulfilled and ​h​e can not be considered as ‘principal officer’​ for TDS prosecution for delay in payment of TDS.

However, a question may arise that “​Can prosecution be launched against independent, non-executive, and nominee director​s under income tax act?​”. Following three important points of the above said Judgment may guide us to get an answer.

a. ​Revenue argued that the petitioner, a non-executive independent director of the company, regularly attended the meetings of the Board at the time of the commission of the offence. Therefore, he was well aware of all the legal and administrative matters of the company and cannot take the benefit of his designation as an independent director to absolve him from the prosecution.

b. ​​In order to treat a person as a ‘Principal Officer’ as defined under section 2(35)(b) of the I.T. Act, the following conditions must be satisfied: (i) he must be a person connected with the management or administration of the company, and (ii) the Assessing Officer must have served upon him a notice of his intention of treating him as the principal officer of the company.

c. Before initiating prosecution, revenue issue notice to the company to nominate the principal officer (if not appointed). If the department did not receive a reply, it would treat all directors of the company as principal officers and initiate appropriate action.