Direct Tax May 2020 Updates

Direct Tax May 2020 Updates

Recent circulars Notifications Rules Clarifications News

  • CBDT notifies new form for 26AS which shall also include information relating to assessee’s specified financial transaction (Information of property and share transactions etc.), payment of taxes, demand/ refund and pending / completed proceedings(Notification No. 30/2020-Income Tax/G.S.R. 329(E) dated 28.05.2020)
  • CBDT amended Guidelines for application of section 9A. It contains provisions related to Certain activities not to constitute business connection in India.( Notification No. 29/2020-Income Tax [G.S.R. 315(E)dated 27.05.2020)
  • CBDT notified the year of applicability of the ‘Safe Harbour Rules for International Transactions’  forAY 2020-21, as the existing rules were applicable only up to AY 2019-20. (Notification No. 25/2020-Income Tax/G.S.R. 304(E) dated 20.05.2020)
  • Section 269SU (using online mode for payments) is not applicable for specified person having only B2B transactions (circular no. 12/2020 dated 20th May 2020)
  • CBDT issues a circular for exclusion of period of 22nd March 2020 to 31st March 2020 for computation of residential status for the financial year 2019-20 (circular no. 11/2020 dated 8th May 2020)
  • Instant PAN facility basis Aadhar based e-KYC launched. Now PAN can be obtained near to real time basis. (Notification dated 28.05.2020)
  • Reduction of Tax deduction at Source and Tax collected at Source by 25% or remaining period of FY 2020-21(ref. relief measures announced by FM dated 13th May 2020)
  • New procedure for registration , approval, etc. of certain entities deferred to 1st October, 2020(Press release dated 9th May 2020)

Income Tax Compliance calendar – June 2020

Note-CBDT vide the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 ​dated 31-03-2020 has extended all respective due dates, falling during the period from 20-03-2020 to 29-06-2020, till June 30, 2020. The benefit of extended due date shall not be available in respect of payment of tax. However, any delay in payment of tax which is due for payment from 20-03-2020 to 29-06-2020 shall attract interest at the lower rate of 0.75% for every month or part thereof if same is paid after the due date but on or before 30-06-2020. ​​

Direct Tax May 2020 Updates l Recent circulars Notifications Rules Clarifications News

Things to remember
Due date for deposit of Tax deducted/collected for the month of May, 2020. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of April, 2020​

Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of April, 2020

Due date for issue of TDS Certificate for tax deducted under section 194M in the month of April, 2020

​Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of May, 2020 has been paid without the production of a challan

Quarterly TDS certificates (in respect of tax deducted for payments other than salary) for the quarter ending March 31, 2020​

First instalment of advance tax for the assessment year 2021-22​

Certificate of tax deducted at source to employees in respect of salary paid and tax deducted during Financial Year 2019-20

Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes been modified after registering in the system for the month of May, 2020

​Due date for e-filing of a statement (in Form No. 3CEK) by an eligible investment fund under section 9A in respect of its activities in financial year 2019-20​

Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of May, 2020​

Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB in the month of May, 2020

​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M in the month of May, 2020​

Return in respect of securities transaction tax for the financial year 2019-20

Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending March 31, 2020

Statement to be furnished (in Form No. 64C) by Alternative Investment Fund (AIF) to units holders in respect of income distributed during the previous year 2019-20

Report by an approved institution/public sector company under Section 35AC(4)/(5) for the year ending March 31, 2020

Due date for furnishing of statement of income distributed by business trust to its unit holders during the financial year 2019-20. This statement is required to be furnished to the unit holders in form No. 64B

Direct Tax May 2020 Updates l Recent circulars Notifications Rules Clarifications News

Important cases decided

  • Registration under section 12AA cannot be rejected merely on the basis of suspicion(Lady Floreance Education Society vs CIT (ITAT Delhi)
  • Appeal can be signed by authorised POA holder of Foreign company (South Staffordshire PLC, Vs DCIT (International Taxation) (ITAT Delhi)
  • Section 43B is not applicable on RTO registration fees collected from customers (Thar Automobiles Pvt. Ltd. Vs ITO (ITAT Delhi)
  • If reply to email notices is not done due to computer illiteracy, then it is consider genuine reason (BM Sarin Vs ACIT)
  • No reassessment after 4 years in case there was no disclosure failure on the part of Assessee(PCIT vs SKI retail Capital Ltd)
  • Assessment done without issuing notice under section 143(2), shall not be considered valid (ITO vs Satish Singh Bhati)

With Warm Regards & Jai Hind

CMA Rakesh Bhalla

Information Source – M/s LKS, CBIC.gov.in., various internet websites including Income tax website, Dailyhunt, Deloitte, livemint.com,  related links and various notifications, circulars, orders, press releases and other sources-many thanks to all.

Direct Tax May 2020 Updates l Recent circulars Notifications Rules Clarifications News

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