अंतरिम बजट 2019-20 की प्रमुख झलकियाँ The key highlights of the Interim Budget 2019-20

The key highlights of the Interim Budget 2019-20 presented by the Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal in Parliament today are as follows:

New Announcements

Farmers

• 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISAN
• - Outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19
• Outlay for Rashtriya Gokul mission increased to Rs 750 crore
• Rashtriya Kamdhenu Ayog to be setup for sustainable genetic up-gradation of the Cow resources
• New separate Department of Fisheries for welfare of 1.5 crore fishermen
• 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment.
• Interest subvention of 2% during disaster will now be provided for the entire period of reschedulement of loan

Labour

• Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers
• - Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month

Health

22nd AIIMS to be setup in Haryana

MGNREGA

Rs. 60, 000 crore allocation for MGNREGA in BE 2019-20

Direct Tax proposals

• Rebate on Income upto Rs. 5 lakh
• More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayers
• Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000
• TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits
• Existing rates of income tax to continue
• Tax exempted on notional rent on a second self-occupied house
• Housing and real estate sector to get boost-
• - TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000
  - Benefit of rollover of capital gains increased from investment in one residential house to two residential houses for capital gains up to Rs. 2 crore.
  - Tax benefits for affordable housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Act
  - Tax exemption period on notional rent, on unsold inventories, extended from one year to two years

Fiscal Programme

• Fiscal deficit pegged at 3.4% of GDP for 2019-20
• - Target of 3% of fiscal deficit to be achieved by 2020-21.
• Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years ago
• Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20 BE
• Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crore
• Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in BE 2019-20
• National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20
• Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in BE 2019-20
• Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes -
• - Allocation for SCs increased by 35.6% - from Rs. 56,619 crore in BE 2018-19 to Rs. 76,801 crore in BE for 2019-20
  - Allocation for the STs increased by 28% - from 39,135 crore in BE 2018-19 to Rs. 50,086 crore in 2019-20 BE
• Government confident of achieving the disinvestment target of 80,000 crore
• Focus now on debt consolidation along with fiscal deficit consolidation programme

Poor and Backward Classes

• 'First right on the resources of country is that of the poor': FM
• 25% additional seats in educational institutions to meet the 10% reservation for the poor
• Targeted expenditure to bridge urban-rural divide & to improve quality of life in villages
• All willing households to be provided electricity connections by March 2019

North East

• Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20 BE over 2018-19 BE
• Arunachal Pradesh came on the air map recently
• Meghalaya, Tripura and Mizoram came on India's rail map for the first time
• Container cargo movement through improved navigation capacity of the Brahmaputra

Vulnerable sections

• A new committee under NITI Ayog to identify all the remaining De-notified nomadic and semi-Nomadic tribes.
• New Welfare development Board under Ministry of social justice and empowerment for development and welfare of De-notified nomadic and semi nomadic tribes

Defence

Defence budget to cross Rs 3,00,000 crore for the first time ever

Railways

• Capital support of Rs.64,587 crore proposed in 2019-20 (BE) from the budget
• Overall capital expenditure programme to be of Rs. 1,58,658 crore
• Operating Ratio expected to improve from 98.4% in 2017-18

to 96.2% in 2018-19 (RE) and
to 95% in 2019- 20 (BE)

Entertainment Industry

• Indian filmmakers to get access to Single window clearance as well for ease of shooting films
• Regulatory provisions to rely more on self-declaration
• To introduce anti-camcording provisions in the Cinematograph Act to control piracy

MSME and Traders

• 2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs
• Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs
• Renewed Focus on Internal trade ; DIPP renamed to Department for Promotion of Industries and Internal trade

Digital Villages

The Government to make 1 lakh villages into Digital Villages over next five years

Other Announcement(s)

• New National Artificial Intelligence portal to support National Program on Artificial Intelligence
• Achievements during 2014-19

State of the Economy

• India universally recognized as a bright spot of the global economy during last five years
• 'Country witnessed its best phase of macro-economic stability during 2014-19', says FM
• India is now the 6th largest economy in the world from being the 11thlargest in 2013-14
• Annual average GDP growth during 2014-19 higher than any government since 1991
• Government has broken inflation's back from backbreaking inflation during 2009-14: FM
• Average inflation down to 4.6%, lower than during any other Government
• Inflation in December 2018 down to 2.19% only
• Fiscal deficit down to 3.4% in 2018-19 RE from the high of almost 6% seven years ago
• CAD likely to be only 2.5% of GDP this year against a high of 5.6% six years ago
• India attracted massive amount of FDI, worth $239 billion, during the last 5 years
• 'India is solidly back on track and marching towards growth and prosperity', says FM
• India becomes the fastest growing major economy in the world
• Double-digit inflation contained and fiscal balance restored
• Liberalization of FDI policy, allowing most FDI to come through the automatic route

Farmers

• Assured MSP of minimum 50% to all 22 crops
• Interest subvention doubled in last 5 years
• Soil Health card, Neem coated Urea game changer in farm sector

Labor

• Employment opportunities expanded ; EPFO membership increased by 2 crore
• Minimum income for every category of workers increased by 42% in last 5 years

Poor and Backward Classes

• 10% reservation for the poor in educational institutions and government jobs
• Free electricity connection to every household under Saubhagya Yojana
• World's largest healthcare programme, Ayushman Bharat, for nearly 50 crore people
• Aspirational Districts Programme for development in 115 most backward districts
• Rs. 1,70,000 crore spent during 2018-19 for cheaper food grains to poor and middle class
• 143 crore LED bulbs provided in mission mode with the cooperation of private sector
• Poor & middle class are saving Rs. 50, 000 crore p.a. in electricity bills due to LED bulbs
• 10 lakh patients benefited from free treatment under Ayushman Bharat
• Jan Aushadhi Kendras providing medicines at affordable prices to poor and middle class
• 14 out of 21 AIIIMS operating presently have been announced since 2014
• Government tripled rural roads' construction under the PMGSY
• 15.80 lakh habitations out of 17.84 lakh connected with pucca roads
• Rs. 19,000 crore for PMGSY in BE 2019-20 against Rs. 15,500 crore in RE 2018-19
• 1.53 crore houses built under PM Awas Yojana during the 2014-18

Women development to women leddevelopment

• 6 crore free LPG gas connections provided under Ujjwala Yojna ; All 8 crore by next year
• 70% of MUDRA Loan availed by Women
• Maternity leave extended to 26 weeks
• Financial support for pregnant women under Pradhan Mantri Matru Vandana

Youth

• Over one crore youth trained under Pradhan Mantri Kaushal Vikash Yojana
• Self-employment boost through MUDRA, STAND-UP and START-UP India

MSME and Traders

• Up-to Rs 1 crore loans can be availed in less than an hour
• 25%-28% is the average savings due to GeM (Government e-Market place)

Income Tax

• Tax collections nearly doubled in five years- from Rs. 6.38 Lakh crore in 2013-14 to almost Rs. 12 lakh crore this year
• 80% growth in tax base- from 3.79 crore to 6.85 crore in five years
• Tax administration streamlined- Last year, 99.54% of the income-tax returns accepted as were filed
• Technology intensive project approved to improve assessee friendliness –In two years, returns to be processed in 24 hours and refunds issued simultaneously
• Earlier benefits given to middle class-
• - Basic exemption limit increased from Rs. 2 lakh to Rs. 2.5 lakh
  - Tax rate reduced from 10% to 5% for the tax slab of Rs. 2.5 lakh to Rs. 5 lakh
  - Standard deduction of Rs. 40,000 introduced for the salaried class
  - Deduction of savings under section 80C increased from Rs. 1 lakh to Rs. 1.5 lakh
  - Deduction of interest for self-occupied house property raised from Rs. 1.5 lakh to Rs. 2 lakh

• Special benefits and incentives already given to small businesses and startups-
• - Overall compliance processes simplified.
  - Threshold for presumptive taxation of business raised from Rs. 1 crore to Rs. 2 crore
  - Benefit of presumptive taxation extended for the first time to small professionals fixing threshold limit at Rs. 50 lakh
  - Presumptive profit rate reduced from 8% to 6% to promote a less cash economy
  - Tax rate for about 99% companies reduced to 25%

GST

• GST made India a common market
• GST led to increased tax base, higher collections and ease of trade
• Inter-state movements now faster, more efficient, and hassle free
• Responsive and sensitive reduction of tax rates - Most items of daily use now in the 0% or 5% tax slab
• Relieving the businesses and service providers-
• - Exemptions from GST for small businesses doubled from Rs. 20 lakh to Rs. 40 lakh
  - Small businesses having turnover up to Rs. 1.5 crore pay only 1% flat rate and file one annual return only
  - Small service providers with turnover upto Rs.50 lakhs can opt for composition scheme and pay GST at 6% instead of 18%
  - Soon, businesses comprising over 90% of GST payers to be allowed to file quarterly return
• Encouraging GST revenue trends - The average monthly tax collection in the current year is Rs. 97,100 crore per month as compared to Rs. 89,700 crore per month in the first year

Infrastructure

Civil Aviation - UDAN Scheme

• Number of Operational Airports crossed 100
• Latest: Pakyong airport in Sikkim
• Domestic Passenger traffic doubled in last 5 years

Roads

• India is the fastest highway developer in the world
• 27 kms of highways built each day
• Stuck projects completed - Eastern Peripheral Highway around Delhi

- Bogibeel rail-cum-road bridge in Assam and Arunachal Pradesh

Waterways

• Flagship programme of Sagarmala along the coastal areas
• For first time, container freight movement started on Kolkata to Varanasi inland waterways

Railways

• 'Safest year' for railways in its history
• All Unmanned Level Crossings on broad gauge network eliminated.
• Semi high-speed "Vande Bharat Express" introduced - first indigenously developed and manufactured

Climate Change

International Solar Alliance

• To promote renewable energy
• First treaty based international inter-governmental organization headquartered in India
• Installed solar generation capacity grown over ten times in last five years
• Now creating lakhs of new age jobs

Digital India Revolution

• More than 3 lakh Common Service Centres (CSCs) exist to deliver services to the citizens
• India now leading the world in the consumption of mobile data
• Monthly consumption of mobile data increased by over 50 times in the last five years
• Under Make in India, mobile and parts manufacturing companies increased from 2 to more than 268 providing huge job opportunities

Jan Dhan-Aadhaar-Mobile (JAM) and Direct Benefit Transfer

• In the last five years, nearly 34 crore Jan Dhan bank accounts opened
• Aadhaar now near universally implemented
• Ensure the poor and middle class receive the benefits of Government schemes directly in their bank accounts by eliminating middlemen

Customs and trading across borders

• Customs duties on 36 capital goods abolished
• Digitization of import and export transactions
• RFID technology to improve logistics

Steps against corruption

• Government walked the talk on corruption and ushered in a new era of transparency: FM
• RERA and Benami Transaction (Prohibition) Act have brought transparency in real estate
• The Fugitive Economic Offenders Act, 2018 to help confiscate economic offenders
• Government conducted transparent auction of natural resources such as coal & spectrum

Drive against Black money

• Undisclosed income of about Rs 1,30,000 crore brought under tax through initiatives like Black money Law, Fugitive Criminal offenders Act, Demonetisation etc.
• Benami assets worth Rs 6,900 crore have been attached
• 18% growth in Direct tax

Banking Reforms and Insolvency and Bankruptcy Code (IBC)

• The IBC has institutionalized a resolution-friendly mechanism
• Government has stopped the culture of “phone banking': FM
• Government adopted 4Rs approach of recognition, resolution, re-capitalization & reforms
• Government has implemented measures to ensure ' Clean Banking'
• Government has already recovered Rs. 3 lakh crore in favor of banks and creditors
• Government has invested Rs. 2.6 lakh crore for recapitalization of public sector banks

Cleanliness

• Government launched Swachh Bharat Mission as a tribute to 150 years of Gandhi Ji
• FM thanks 130 crore Indians for translating Swachh Bharat into a national revolution
• India has achieved 98% rural sanitation coverage
• 5.45 lakh villages have been declared "Open Defecation Free"

Defence

• OROP under implementation in full spirit with Rs 35,000 crore already disbursed
• Military pay service hiked

Other achievements

• Government put a stop to questionable practices of hiding high NPAs
• Swachh Bharat Mission as the world's largest behavioral change movement

Key message in the Interim Budget 2019-20

Moving towards realizing a ' New India' by 2022 -

• Clean and healthy India with universal access to toilets, water and electricity to all
• An India where Farmers' income would have doubled
• Ample opportunities to youth and women to fulfill their dreams
• An India free from terrorism, communalism, casteism, corruption and nepotism

Vision for the next Decade

• Foundation for India's growth and development laid in the past 5 years
• Poised to become a Five Trillion Dollar Economy in the next five years
• Aspire to become a Ten Trillion Dollar Economy in the next 8 years thereafter

Ten dimensions of Vision for India of 2030

India would be a modern, technology driven, high growth, equitable and transparent society

• To build physical as well as social infrastructure and to provide ease of living
• To create a Digital India, digitize government processes with leaders from youth
• Making India pollution free by leading transport revolution with Electric Vehicles and focus on Renewables
• Expanding rural industrialisation using modern digital technologies to generate massive employment
• Clean Rivers, safe drinking water to all Indians and efficient use of water through micro-irrigation
• Besides scaling up of Sagarmala, Coastline and Ocean waters powering India's development and growth
• Aim at our space programme - Gaganyaan, India becoming the launch-pad of satellites for the World and placing an Indian astronaut into space by 2022
• Making India self-sufficient in food, exporting to the world to meet their food needs and producing food in the most organic way
• A healthy India via Ayushman Bharat with women having equal rights and concern for their safety and empowerment
• Transforming India into a Minimum Government Maximum Governance nation with pro-active and responsible bureaucracy

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Search (Raid) & Seizure under income tax act, 1961

Search & Seizure action by the income tax department popularly referred to as 'RAID' involves through 'looking for' or 'seeking out' through an inspection of a building , office, place , vehicle.

Basis or grounds for Search & Search and Seizure team after taking authorisation and approval from concerned income tax authority can conduct search operation in the assessee's premises. Seizure ;

Basis for search and seizure : Authorisation for search and seizure can be conducted if the income tax department, in consequence of information in his possession, has reason to believe that,

Section: 132(1)(a) - (i) summons u/s 131(1) or (ii) notice u/s 142(1), was issued to produce or cause to produced any books of accounts, or other documents which has been wilfully omitted or failed to produce such books of accounts as required by such issued summons or notice to assessee.  

Section: 132(1)(b) - any person to whom summons or notice has been issued, will not or would not produce any books of accounts which will be useful or relevant to any proceedings undertaken under the income tax act, 1961.

Section: 132(1)(c) - any person who is in possession of any money, bullion, jewellery or any other valuable things and these assets represent either wholly or partly the income or property which has not been disclosed by the person concerned for the purposes of this act.

The officer who is authorised for conducting search is referred to as Authorised officer. The authorisation is done by issuing a search warrant in Form 45.

Clauses (a spell out the circumstances under which the authorizing authority may issue a warrant of search. In order to attract clause (c) there must be information with authority relating to two matters;) , (b) , (c) of section 132(1)

1. That any person is in possession of money, etc.
2. That such money, etc represents either wholly or partly income  or property which has not been or would not be, disclosed for the purposes of the act.

Reasons For Income Tax Raids:

The Income Tax Department can conduct raids on individuals or groups for a wide range of reasons. The most pertinent of these are outlined below:

• Where the department has gathered evidence substantiating that an assessee is in possession of income or assets that have not been disclosed, and where the amount of tax that would be normally paid on such income or assets exceeds Rs 1 crore.
• Where the department has received verification of lavish expenditure at weddings or marriages
• Where the department has gathered data or information that has been put together from the perusal of tax assessment files and records that have passed through the process of verification
• Where the department has gathered information received from any party with an intimate relation with the assessee in question such as a member of the assessee's family, a business partner, an employee etc. This information is subject to independent questioning on the part of the Income Tax department.
• Where the department has gathered evidence of the manipulation  of any of the following:
  • Books or ledgers showing accounting details and transactions
  • Any documentation or records
  • Any invoices
  • Any vouchers
  • Any bills
• Where the department has gathered evidence of the possession of substantial amounts of income held with the following:
  • The assessee
  • At banks or financial institutions
  • At the residence of the assessee
  • At any business property
  • At lockers held in banks or financial institutions
  • At the residence of any member of the assessee's family
  • At the residence of any business partner of the assessee
  • At the residence of any employee of the assessee
• Where the department has gathered information showing that the following items are not accounted for in the books of account or balance sheets of the assessee:
  • Cash
  • Assets
  • Jewellery
  • Bank balances
  • Investments
  • Shares
• Where the department has gathered evidence of any hawala activities and transactions that have taken place within the functioning of any business
• Where the department has gathered evidence of the assessee making investments in benami or 'non titled' property
• Where the department has gathered evidence of undisclosed sums of money and investments held with banks under the name of the assessee or any of his or her family members, business associates, relatives etc
• Where the department has gathered evidence of any undisclosed amounts that have been omitted or have been withheld during the time of declaration of turnover with regards to the Goods & Service Tax Department.
• Where the department has gathered evidence of a large amount of sundry creditors every year, despite of the non-existence of any such organization, company or individual.
• Where the department has gathered evidence of any discrepancies or anomalies in the submission of stock quantities, inventory, sales production etc
• Where the department has gathered evidence of any discrepancies or anomalies with regards to the personal accounts of the assessee in question, wherein the accounts show large amounts of loans or cash appearing consistently and on a continuous basis every year
• Where the department has gathered evidence of the non-filing of income tax returns by the assessee for a single year or multiple years
• Where the department has gathered evidence of persons or individuals in possession of many Permanent Account Numbers (PAN), who file income tax returns from different locations around the country, and who declare large sums of income
• Any other reason that may be deemed valid or confidential by the Income Tax Authorities, or in specific cases dealing with evasion of tax across state borders.

Rights Of An Assessee During An Income Tax Raid:

An assessee who has been suspected of tax evasion or concealment of undisclosed property can exercise the following rights as per law in the event of a raid conducted by the income tax authorities:

• The authorised officers conducting the raid are duty bound to allow or permit two individuals from the local area to stand as independent witnesses
• If assessees under suspicion are children, they must be permitted to leave for school, although their bags may be checked by the income tax officers
• The assessee can exercise his or her right to inspect the search warrant as well as confirm the identity of the authorized income tax officer present
• The assessee under suspicion can also insist that only authorised female tax officers shall be allowed to search the female family members of the assessee
• The assessee is required to provide a statement at the time the raid is being carried out, or after the raid has been concluded. Should he or she not provide a statement, it will be considered as an act of silence, and could have an adverse effect on proceedings
• If the assessee is a woman, who as per custom does not make public appearances, then she can exercise her right to not appear before the search party consisting of authorized income tax officers
• The assessee can exercise his or her right to avail of a medical assistance should the need arise.
• The assessee can also exercise his or her right to eat meals at standard meal times

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Last chance to rectify errors of FY 2017-18 in GST Return & ITC extended Order No. 02/2018 amended 2 sections of CGST Act, 2017. One amendment pertains to rectification of errors in returns filed for FY 2017-18 and another pertains to availment of Input tax credit on invoices pertaining to FY 2017-18.

For the period July 2017 to March 2018,

1. Did your supplier stopped payment for an invoice which is not appearing in his GSTR 2A?

2. Is your turnover as per GSTR 1 and as per books of accounts not matching?

3. Did a B2B invoice entered as B2C invoice?

4. Is there an invoice on which Input tax credit is missed to be availed?

5. Are there entries appearing in GSTR 2A on which ITC is missed to be availed?

6. Are the ITC entries passed in Accounts but missed to avail in GST returns?

Here is good news. A New Year gift by way ofOrder No. 02/2018 – Central Tax dated 31.12.2018.

Order No. 02/2018 amended 2 sections of CGST Act, 2017. One amendment pertains to rectification of errors in returns filed for FY 2017-18 and another pertains to availment of Input tax credit on invoices pertaining to FY 2017-18.

Following proviso has been added to Section 16(4) of CGST Act, 2017 granting time till due date for month of March 2019 return i.e. 20^thApril ,2019 (subject to extensions, if any). Only condition is that the details of invoice on which ITC is being availed should have been uploaded by the supplier in his GSTR 1. In simple words, the invoice on which ITC is being availed should appear in the recipient’s GSTR 2A.

“Provided that the registered person shall be entitled to take input tax credit after the due date of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019.”

Following proviso had been added to Section 37 (3) of CGST Act, 2017 which allows the assesse to rectify any errors made in already filed GTSR 1 returns of July 2017 – March 2018 till due date for quarter ended January-March 2019 i.e. 30^th April,2019 for those assesses who have opted for quarterly filing of GSTR 1 and till due date for filing GSTR 1 of March 2019 i.e. 11^th April, 2019 for other assesses. Any omissions in GSTR 1 already filed can also be now added in the GSTR 1 upto above mentioned due dates.

“Provided further that the rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September, 2018 till the due date for furnishing the details under subsection (1) for the month of March, 2019 or for the quarter January, 2019 to March, 2019”

It is advised to prepare ITC as per GSTR 2A Vs ITC as per GSTR 3B/Books of accounts reconciliations to dig out any missing ITC. It also helps the assesses to follow up with the suppliers to file their GSTR 1 so that ITC as per GSTR 2A aligns with ITC as per books and ITC as per GSTR 3B. As per proposed so called “simplified” GST Return filing procedure, ITC as per GSTR 2A only is available for paying output tax and no additional ITC can be availed on invoices which are not present in GSTR 2A though the assesse is in possession of a proper invoice. Hence, it is very important for recipients to ensure that their ITC as per GTSR 2A to align with ITC available as per invoices. So, this exercise of GSTR 2A vs ITC as per books reconciliation will help the recipients in future too since the list of non-compliant suppliers will be available once the reconciliation is done and recipient can be cautious while purchasing from non-compliant suppliers which otherwise will put the ITC at stake.

सीबीडीटी ने non filer को निर्देश दिया कि वे 21 दिनों के लिए 2018-19 के लिए रिटर्न दाखिल करें

CBDT identifies non-filers through Non-filers Monitoring System (NMS) by using Data Analytics and request the Non-filers to assess their tax liability for AY 2018-19 and file the Income Tax Returns (ITR) or submit online response within 21 days

The Non-filers Monitoring System (NMS) aims to identify and monitor persons who enter into high value transactions and have potential tax liabilities but have still not filed their tax returns. Analysis was carried-out to identify non-filers about whom specific information was available in the database of the Income Tax Department. The sources of information include Statement of Financial Transactions (SFT), Tax Deduction at Source (TDS), Tax Collection at Source (TCS), information about foreign remittances, exports and imports data etc. 

Data analysis has identified several potential non-filers who have carried-out high value transactions in Financial Year 2017-18 but have still not filed Income Tax Return for Assessment Year 2018-19 (relating to FY 2017-18). 

The Department has enabled e-verification of these NMS cases to reduce the compliance cost for taxpayers by soliciting their response online. It is reiterated that there is no need to visit any Income Tax office for submitting response, as the entire process is to be completed online. Taxpayers can access information related to their case from the ‘Compliance portal’ which is accessible through the e-filing Portal of the Department at https://incometaxindiaefiling.gov.in. The PAN holder should submit the response electronically on the Compliance Portal and keep a printout of the submitted response for record purposes. User Guide and FAQs are provided under the “Resources” Menu on Compliance Portal.  

Non-filers are requested to assess their tax liability for AY 2018-19 and file the Income Tax Returns (ITR) or submit online response within 21 days. If the explanation offered is found to be satisfactory, matters will be closed online. However, in cases where no return is filed or no response is received, initiation of proceedings under the Income-tax Act, 1961 will be considered.

GST Refund Process for Excess Payment of Tax

The GSTN has given the facility to claim refund of excess GST paid. The entire process can be done online. Let us understand the manner in which a registered tax payer can claim GST refund on excess tax paid.

Which form must be filed for GST refund on excess tax paid?

Form RFD-01A form must be filed for GST refund on excess tax paid.

How to file the GST refund application in the GST portal?

1. Login to GST portal
2. Click Services>Refund>Application for refund   
   
3. 3Select the refund type as ‘Excess payment of tax’
4. Select the financial year and month for which the application is being filed. Note:
   • You should have filed all the required returns till date to file the refund application
   • Refund application for each month needs to be submitted separately
5. Click Create  
   
6. Enter the tax amount paid in excess in the Details of excess payment of tax field. Note that the refund amount should be more than Rs. 1,000. 
   
7. Select the bank account number from the dropdown 

     8    Upload any supporting documents. Note:

• For refund amount less than Rs. 2 Lakhs, only a self-declaration is required.
• For refund amount more than Rs. 2 Lakhs, you must mandatorily upload a certificate from a CA/ICWA. The format of this certificate is in Annexure 2 of Form GST RFD-01.

     9      Tick the Undertaking and Self-declaration checkboxes. Then click Proceed.

   10   Tick the Declaration checkbox. In the Name of authorized signatory dropdown, select the 

authorized signatory. Then click ‘File with DSC’ or ‘File with EVC’.

11   A success message is shown, and the status is changed to Submitted. The application Reference Number will be sent to your registered email ID and phone number.

12                         You can track the application from Refunds>Track application status.

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All About Income Tax Refund Status

Generally, a taxpayer is eligible for the income tax refund, when he/ she has paid more tax than the actual tax liability. There are various circumstances under which a taxpayer can receive Income Tax Refund. Here are the following circumstances, where you can receive Income Tax Refund from the Income Tax Department, after ITR Filing: –

• You can receive a tax refund, when your employer has deducted more TDS than you were actually liable to pay.
• There are times, when a taxpayer does not fall under the taxable bracket and yet the TDS is deducted from their income, then in that case, the taxpayer can claim Income Tax Refund as well as they can track their Income Tax Refund Status by visiting the Income Tax Department’s official e-filing website.

When a taxpayer claims a tax refund then, then the Income Tax Department processes the request and the taxpayer receives an intimation about the same from Centralized Processing Center or CPC under Section 143(1). This intimation confirms the quantum of refund that the taxpayer is eligible to receive. The tax refund can either match with the claimed amount or it can be higher/ lower than what is claimed in the Income Tax Return. This refund amount is what the taxpayer would ideally receive from the income tax department.

How can a taxpayer check Income Tax Refund Status?

Once the refund is determined, the same is processed by the Income Tax Department. Once the refund is processed a taxpayer can check the Income Tax Refund Status online by visiting the following websites: –

• The Income Tax Department’s Official E-filing Portal
• The NSDL Website

So, click here and get more details about how to get Income Tax Refund Status.

Amendments in GST Composition Scheme & Service Supplier inclusion

Amendments in Composition Scheme under GST and inclusion of Supplier of Service under the Scheme.

With a first meeting in a new calendar year of 2019 GST council has come up with a relaxing exhale for MSME units and small traders by introducing some essential changes to the policy and procedure under the GST Act.  Some important and “must know” features are as follows:

1. Threshold Limit: Council has provided two thresholds limits i.e. INR 20 Lakh and INR 40 Lakh, for registration and payment of GST for the supply of Goods and State Governments has to decide the respective limits. There is no change in case of “Service Provider” as the threshold stands continue at INR 20 Lakh and in special category states INR 10 Lakh.

Existing limit – INR 20 Lakh

New Limit – INR 40 Lakh

*Only for supplier of “Goods”

2. Turnover Limit under Composition Scheme:The annual turnover limit for the preceding financial year in order to avail the composition scheme benefit has been increased from INR 1 Crore to INR 1.5 Crore.  However, the special category states are provided a time limit of one week whether to accept the new amendment or not.

Existing limit – INR 1 Crore

New Limit – INR 1.5 Crore

*Annual Turnover of preceding financial year.

3. Composition Scheme for Service Provider:Council has decided to provide a benefit of composition scheme to service providers also, which was not so till now.  The threshold limit of turnover in the preceding financial year would be INR 50 Lakh for supplier of services or mixed suppliers with a Tax Rate of 6% (3% CGST + 3% SGST).  There will be liability of filing one Annual Return with paying taxes on quarterly basis with a prescribed declaration.

Threshold Limit – INR 50 Lakhs

Applicable to – Supplier of Service or Mixed supplier i.e. provider of goods as well as services

Tax Rate: 3% CGST + 3% SCGS (Total 6%).

4. Simplification of Compliance: Compliance norms has been simplified under composition scheme, as there would be now only Annual Return filing with liability of paying tax quarterly along with a declaration.

Only Annual Return filing

Payment of Tax quarterly

5. Natural Calamity Revenue Mobilization:Council has approved a levy of Cess on Intra-State Supply of Goods and Services within the state of Kerala maximum upto 1% for maximum 2 years

Additional Cess- >= 1%

Maximum for 2 years

Only in Kerela

6. Effective Date: This amendment shall come into force with effect from 01^st April, 2019.

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Ahmedabad: Rs 400 cr fake GST billing scam busted.

जीएसटी कोंसिल की 32वीं मीटिंग: जीएसटी कौंसिल की ताजा मीटिंग के फैसले और उनके प्रभाव. CA sudhir Halakhandi

जीएसटी कोंसिल की 32वीं मीटिंग: जीएसटी कौंसिल की ताजा मीटिंग के फैसले और उनके प्रभाव

जीएसटी कौंसिल की 32वीं कौंसिल की मीटिंग 10 जनवरी को संपन्न हो गई और इसमें जैसी कि अपेक्षा थी लगभग उससे के अनुसार छोटे एवं मध्यम उद्योग एवं व्यापार के हित में जो फैसले लिए गए उनका और इसके अतिरिक्त अन्य फैसलों का विवेचन करते हुए आइये प्रयास करे यह जानने का कि इनका प्रभाव कर दाताओं पर क्या पडेगा :-

1. जीएसटी थ्रेशहोल्ड  लिमिट में वृद्धि :-

जीएसटी की थ्रेशहोल्ड लिमिट जीएसटी लगाए जाने के समय 20 लाख रूपये तय की गई थी लेकिन केन्द्रीय उत्पाद शुल्क की सीमा 150 लाख रूपये थी इसलिए इस सीमा को कम माना जा रहा था . स्वयम प्रधानमंत्री इसे 75 तक करने की बात कर चुके थे . मंत्रियों की समिती ने भी इसे बढाने की मांग की था तो यह तो तय था कि यह्याह लिमिट बढ़ेगी और उसी अनुरूप इसे 20 लाख रूपये से बढ़ाकर 40 लाख रूपये कर दिया गया है . यह बढी हुई थ्रेशहोल्ड  केवल “माल” के सम्बन्ध में ही होगी और वह भी केवल राज्य के भीतर माल की बिक्री के सम्बन्ध में  , सेवा क्षेत्र के लिए थ्रेशहोल्ड  20 लाख ही रहेगी . अब माल एवं सेवाओं के लिए जीएसटी अलग-अलग थ्रेशहोल्ड लिमिट होगी .

इससे छोटे व्यापारियों एवं लघु उद्योगों को लाभ होगा लेकिन इसके राजस्व पर पड़ने वाले प्रभावों के बारे में भी सरकार ने जरुर सोचा होगा.

जिन राज्यों (पहाड़ी एवं उत्तरपूर्व के राज्य ) में लिमिट 10 लाख थी वहां 20 लाख हो जायेगी और अन्य राज्यों में जहां  20 लाख लिमिट थी वहां यह सीमा 40 लाख हो जायेगी. इसका राज्यों के राजस्व पर भी पडेगा इसलिए यह भी प्रावधान है कि राज्य चाहे तो इस सीमा को बढाए और नहीं चाहते है तो नहीं बढ़ाये  .लेकिन इसके बारे में राज्य जो भी फैसला हो उसे एक सप्ताह के भीतर बताना होगा .

अब अगर कुछ राज्य बढाते हैं और कुछ पुरानी सीमा पर ही रहते हैं तो “एक देश एक राज्य” का क्या होगा क्यों कि सेवाओं और माल के लिए तो अब थ्रेशहोल्ड तो अलग –अलग हो ही जायेगी और राज्यों में भी यह सीमा अलग- अलग हो जाएगी  .

थ्रेशहोल्ड संबंधी यह फैसला 1 अप्रैल 2019 से लागू होगा.

2.कम्पोजीशन की सीमा 150 तक बढाई गई :-

कम्पोजीशन कर में जाने की अंतिम सीमा 100 लाख रूपये थी जिसे बढ़ा कर 1 अप्रैल 2019 से 150 लाख करने का फैसला किया गया है . सरकार जीएसटी कानून में संशोधन कर इस सीमा को 100 लाख रूपये से बढ़ाकर 150 लाख करने के अधिकार पहले ही ले चुकी है इसलिए इस मीटिंग में व्यवहारिक रूप से 150 लाख करने की पूरी उम्मीद को पूरा किया गया है.

इसके अतिरिक्त कम्पोजीशन डीलर्स को त्रैमासिक कर के साथ त्रैमासिक रिटर्न भी भरना होता था जिसकी जगह अब यह फैसला किया गया है कि अब उन्हें त्रैमासिक कर के साथ वार्षिक रिटर्न भरना होगा.

यह कम्पोजीशन डीलर्स के लिये एक अच्छी खबर है और यह फैसला  भी 1 अप्रैल 2019 से लागू होगा.

3. सेवा क्षेत्र के लिए कम्पोजीशन स्कीम :-

सेवा क्षेत्र के लिए भी एक कम्पोजीशन स्कीम लाये जाने का फैसला किया गया है और इसके तहत 50 लाख रूपये तक के सेवा प्रदाता आयेंगे और उनको बिना कोई इनपुट क्लेम किये 6 प्रतिशत की दर से कम्पोजीशन कर का भुगतान करना होगा.

सेवा क्षेत्र के लिए कम्पोजीशन स्कीम स्वागत योग्य है लेकिन यह कर की दर उम्मीद से ज्यादा है इस सम्बन्ध में कर की दर 3 से 4 प्रतिशत होनी चाहिए लेकिन इसे 6 प्रतिशत की दर पर रख कर इसकी उपयोगिता को काफी कम कर दिया गया है .

यह फैसला भी 1 अप्रैल 2019 से लागू होगा.

4.रियल स्टेट एवं लौटरी से जुड़े जीएसटी मामले :-

इन दोनों मुद्दों पर फैसले लेने से पहले यह मुद्दे रिपोर्ट देनें के लिए “मत्रियों के समूह” को दे दिए है और इस प्रकार इन मुद्दों पर कोई फैसला इस मीटिंग में नहीं लिया गया है.

5.सीमेंट और टायर के मुद्दे पर कोई फैसला नहीं :-

सीमेंट और टायर की जीएसटी दर पर कोई बहस इस मीटिंग में नहीं की गई इस प्रकार इस क्षेत्र को इस मीटिंग में निराश ही किया गया है . जीएसटी कौंसिल को अब इस बारे में जल्दी ही फैसला ले लेना चाहिए क्यों कि ये दोनों ही वस्तुएं उसी कर की दर पर रखी गई है जहाँ “सिन और लक्जरी” वस्तुओं को रखा गया है और जीएसटी के मूल प्रारूप के विरुद्ध है.

6. सरकार डीलर्स को मुफ्त बिलिंग और एकाउंटिंग सॉफ्टवेर देगी :-

यह एक जनोपयोगी फैसला होगा और ऐसा कब होता है और इस सोफ्टवेयर की गुणवत्ता क्या होगी इस पर इस फैसले की उपयोगिता निर्भर करेगी . यदि सरकार एक अच्छी गुणवत्ता वाला सोफ्टवेयर डीलर्स को दे पायी तो यह एक बहुत अच्छी सुविधा डीलर्स के लिए होगी.

जिन डीलर्स ने लेट फीस के साथ रिटर्न भरे हैं उनकी लेट फीस लौटने के बारे में इस मीटिंग में कोई चर्चा नहीं हुई जिससे यह लगता है सरकार इन डीलर्स की एक न्यायसंगत मांग को गंभीरता से नहीं ले रही है .

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Major Decisions taken by the GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Arun Jaitley. 8545873214 sagzp73@gmail.com

The GST Council in its 32 Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate
Affairs, Shri Arun Jaitley in New Delhi took the following major decisions to give relief to MSME (including Small
Traders) among others -
1. Increase in Turnover Limit for the existing Composition Scheme: The limit of Annual Turnover in the preceding
Financial Year for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore. Special category States
would decide, within one week, about the Composition Limit in their respective States.
1.1 Compliance Simplification: The compliance under Composition Scheme shall be simplified as now they would
need to file one Annual Return but Payment of Taxes would remain Quarterly (along with a simple declaration).
2. Higher Exemption Threshold Limit for Supplier of Goods: There would be two Threshold Limits for exemption
from Registration and Payment of GST for the suppliers of Goods i.e. Rs 40 lakhs and Rs 20 lakhs. States would have an
option to decide about one of the limits within a weeks’ time. The Threshold for Registration for Service Providers would
continue to be Rs 20 lakhs and in case of Special Category States at Rs 10 lakhs.
3. Composition Scheme for Services: A Composition Scheme shall be made available for Suppliers of Services (or
Mixed Suppliers) with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the preceding Financial
Year up to Rs 50 lakhs.
3.1 The said Scheme Shall be applicable to both Service Providers as well as Suppliers of Goods and Services, who are
not eligible for the presently available Composition Scheme for Goods.
3.2 They would be liable to file one Annual Return with Quarterly Payment of Taxes (along with a Simple Declaration).
4. Effective date: The decisions at Sl. No. 1 to 3 above shall be made operational from the 1 of April, 2019.
5. Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN.
6. Matters referred to Group of Ministers:
i. A seven Member Group of Ministers shall be constituted to examine the proposal of giving a Composition
Scheme to Boost the Residential Segment of the Real Estate Sector.
 ii. A Group of Ministers shall be constituted to examine the GST Rate Structure on Lotteries.
7. Revenue Mobilization for Natural Calamities: GST Council approved Levy of Cess on Intra-State Supply of Goods
and Services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.