Weekly Finance and Tax News Bulletin by CAclubindia - 19th Dec to 26th Dec 2020

In this article, we will discuss the major updates from the Finance and Tax Industry between 19th December and 26th December 2020

A. INCOME TAX UPDATES

1. CBDT asks Yamuna Expressway Industrial Development Authority to not engage in any commercial activity

The Central Board of Direct Taxes has issued a notification asking Yamuna Expressway Industrial Development Authority to not engage in any commercial activity.

2. 7,63,832 ITRs for AY 2020-21 have been filed on 25th December up to 9 pm

The Income Tax Department, via their official Twitter Handle has released the daily statistics of Income Tax Returns Filed. The due date for filing Income Tax Return for AY 19-20 is 31st December 2020. The deadline for Tax Audit and Transfer Pricing Audit is 31st January 2021. File your return now!

3. CBDT issues refunds of over Rs. 1,50,863 crore to more than 1.18 crore taxpayers between 1st April 2020 to 20th December 2020

• Income tax refunds - Rs. 47,608 crores have been issued in 1,16,07,299 cases
• Corporate tax refunds - Rs. 1,03,255 crores have been issued in 2,01,796 cases.

4. Income Tax Department cautions taxpayers on a fake link that promises to give a refund

The Income Tax Department, via their official Twitter handle, cautioned the taxpayers of a fake link that has been circulating and is promising to give a refund. The department clarified that such phishing messages are not being sent out by the IT Department. The official poster released regarding this is attached below:

5. Income Tax Department releases E-Brochure on Vivad se Vishwas Scheme

As per the reports of the Income Tax Department, there are more than 4,50,000 pending cases before the appellate authorities under which an amount of more than 9 trillion Rupees is outstanding on the part of the assessees in these appeals.

The Vivad se Vishwas Scheme aims at speedy and hassle-free recovery of these outstanding dues. The Income Tax Department has now, also released an E-brochure on the scheme. Click here to download the e-brochure.

6. Income Tax Department introduces "Jhatpat Processing" for ITR 1 and 4

The Income Tax Department has introduced "Jhatpat Processing" for easy filing and processing of ITRs. The process has started for ITR 1 and 4.

Introducing Jhatpat Processing!
File Karo Jhat Se, Processing Hogi Pat Se.
Processing started for ITR-1 & 4.

7. Mandatory validation of UDIN in all Income Tax Forms

As per the Press Release of CBDT dated 26th November 2020, The Tax Reports / Forms will be treated valid only if their UDINs have been validated by CBDT E-filing Portal. For doing so, CAs will have a buffer time of 15 days to update their UDIN at the e-filing portal in addition to providing the same instantly. In this regard, CBDT has given a one-time relaxation by allowing them to update UDINs for forms latest by 31st December 2020 for treating these forms as valid.

8. CBDT releases Checklist to Avoid Mistakes in Filing ITR 7 for AY 2020-21

The Central Board of Direct Taxes has released a checklist to avoid mistakes in filing the Income Tax Return - 7 for AY 2020-21. To read the entire checklist, click here

B. INDIRECT TAX UPDATES

1. CBIC cautions taxpayers regarding Social Media Friends

The Central Board of Indirect Taxes and Customs, via their Official Twitter Handle, has cautioned the taxpayers to beware of Social Media Friends and that the department never calls or sends messages for paying duty in a personal bank account.

2. CBIC releases "Myths v. Facts" on CGST Notification issued on 22.12.2020 to curb GST Fake invoice frauds

In order to curb the GST fake invoice frauds, the Govt on the recommendations of the GST Council's Law Committee has issued a notification to deal with the menace of fraudsters who avail & pass on ineligible ITC by fake or fly-by-night firms. For that purpose, CBIC has released “Myths Vs. Facts" on the CGST Notification issued on 22.12.2020. Click here to read the same.

3. ITC limit under rule sec 36(4) revised to 5 percent from 10 percent

The Central Board of Indirect Taxes and Customs has released the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020, thereby making amendments in Rule 36(4) wherein, the limit has been revised to 5% instead of the earlier 10%.

In addition to this, mandatory payment has been revised to 1% from the cash ledger if the taxable supply exceeds 50 lac.

4. CBIC appoints 1st January 2021 for provisions of sections 119, 120, 121, 122, 123, 124, 126, 127 and 131 of the CGST Act to come into force

5. CBIC waives fee payable on late filing of GSTR-4 for businesses in Ladakh until 31st December 2020

The Central Board of Indirect Taxes and Customs has waived the fee payable on late filing of GSTR-4 for the registered persons whose principal place of business is in the Union Territory of Ladakh, from 1st November 2020 to 31st December 2020.

6. GSTN sends mass SMS to all GST registered businesses by mistake, creates panic among clients of CAs

The GST Network sent out the below mentioned mass SMS to all GST registered businesses, by mistake, which further created panic amongst the clients of CAs. Numerous CAs expressed their dissent over the GST Network on Twitter, due to this.

"As per QRMP scheme you are defaulted to file your GSTR-1 and 3B on quarterly basis from Jan-Mar 21. To change pls visit http://services.gst.gov.in ".

7. 8th Instalment of Rs. 6,000 crore released to the States as back to back loan to meet the GST compensation shortfall

A total amount of Rs. 48,000 crores released so far to all States and UTs with legislation This is in addition to additional borrowing permission of Rs. 1,06,830 crores granted to the States.

8. GST Portal - Ignore prompt on liability for inward supplies attracting reverse charge in Table-3.1 (d)

GST Portal says – “ It is noticed that the system is giving alert when the taxpayer revises the auto-populated values upward by 10% in table 3.1(d) which pertains to inward supplies attracting reverse charge. This alert is erroneous. The technical team is working to resolve the same at the earliest."

C. MCA UPDATES

• MCA notifies 21st December 2020 on which provisions of Companies (Amendment) Act 2020 will come into force
• MCA notifies further period of three months from 25th December 2020 for section 10A of the Insolvency and Bankruptcy Code, 2016
• MCA releases the Companies Second & Fifth Amendment Rules, 2020
• The Ministry of Corporate Affairs has extended the applicability of the Companies (Auditor's Report) Order, 2020 (CARO 2020) to 1st April 2021, together with releasing the Companies (Auditor's Report) Second Amendment Order, 2020.

D. OTHER UPDATES

1. FM Smt. Nirmala Sitharaman concludes pre-Budget meetings for forthcoming Union Budget 2021-22

The stakeholder groups made several suggestions on various subjects that included Fiscal Policy, including Taxation; Bond Markets; Insurance; Infrastructure Spending; Health and Education Budget; Social Protection; Skilling; Water Harvesting and Conservation; Sanitation; MGNREGA; Public Distribution System; Ease of Doing Business; Production Linked Investment scheme, Exports; Branding of ‘Made in India' products, Public Sector Delivery Mechanisms; Innovation, Green Growth; Non-Polluting sources of Energy and Vehicles, among others.

2. RBI Cautions against unauthorized Digital Lending Platforms/Mobile Apps

There have been reports about individuals/small businesses falling prey to growing number of unauthorized digital lending platforms/Mobile Apps on promises of getting loans in quick and hassle-free manner.

These reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers.

3. Shri Piyush Goyal launches India-Australia Economic Strategy Report

Says there is tremendous scope for Australian investment into India. With Bigger trade basket, Better trade basket and Balanced trade relationship, we can see huge & exponential growth in our trade relationship.

4. Ministry of Finance announces Auction for Sale (Re-issue) of Government Securities

The Department of Economic Affairs, Ministry of Finance has announced the Auction for Sale (Re-issue) of Government Securities together with the Method of Auction and Notified Amount for the same.

5. President of the Institute of Chartered Accountants of India - CA Atul Kumar Gupta has been elected as a Board Member of the International Federation of Accountants.

6. ADB, India sign facility to support preparation of infrastructure projects in Tripura

The Asian Development Bank (ADB) and the Government of India signed a $4.21 million project readiness financing (PRF) facility for the preparation of infrastructure development projects to improve urban amenities and develop tourism infrastructure in the northeastern state of Tripura. This is ADB's first PRF facility for a state in the northeastern region of India.

7. ADB, India sign $300 million loan to upgrade power distribution network in Uttar Pradesh

The Asian Development Bank (ADB) and the Government of India signed a $300 million loan to upgrade rural power distribution networks to provide reliable electricity supply to consumers in the state of Uttar Pradesh.

8. EPFO payroll data: 11.55 lakh net subscribers added in October 2020

The provisional payroll data of EPFO has been released on 20th December, 2020. It reveals that EPFO has added 11.55 lakh net subscribers in the month of October, 2020.

Despite the COVID-19 pandemic, EPFO has added around 39.33 lakh subscribers during the current financial year (from April to October, 2020). The data published comprises of members who have joined during the month and whose contribution has been received by EPFO for the wage month.

9. Reform Linked Borrowing - Additional borrowing permission of Rs.16,728 crores granted to 5 states

10. Know your Empanelment/Audit Allotment Status with CAG

Are you a CA Firm who has been empaneled to conduct the Audit of PSUs? The facility to check your Empanelment/Audit Allotment Status with CAG is live now. Click the link given below to check your status now!

Know your Empanelment/Audit Allotment Status with CAG: Click here