Income Tax Amendments July 2020 (Notifications and Circulars) By CA Rubneet Anand


Notifications and Circulars

  1. CBDT extends due date for Income Tax Returns for FY 2018-19 from 31st July 2020 to 30th September 2020 (Notification no. 56/2020 dated 29th July 2020).

  2. CMDT amends rule 31a and form 26Q from 3rd July 2020 w.r.t. providing certain information related to cash withdrawals under section 194N in form no. 26Q mandatorily. It also mandates that details of interest liable to TDS (sec 194A), even where tax has not been deducted or deducted at lower rate (Notification no. 43/2020 dated 3rd July 2020)

  3. CBDT clarifies on validity of Section 194N exemptions i.e. shall be deemed to be issued under fourth proviso to Section 194N as amended by FA 2020 (Circular 14/2020 dated 20/07/2020)

  4. CBDT has given 1 time relaxation for verification of last 5 years “E-filed” income Tax returns i.e. for AY 2015-16 to 2019-20- time provided upto 30th September 2020 (Circular no. 13/2020 dated 13/07/2020)

  5. CBDT notifies / amends rule for furnishing party wise break up of TCS (Notification no. 54/2020 dated 24th July 2020).

Income Tax Compliance Calendar – AUGUST 2020

Due Date

Particulars

7th August 2020

· Due date for deposit of Tax deducted/collected for the month of July, 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

14th August 2020

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

· Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of June, 2020

· Due date for issue of TDS Certificate for tax deducted under Section 194M in the month of June, 2020

15th August 2020

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

· ?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 July, 2020

· ??Quarterly TDS certificate (in respect of tax deducted for payments other than salary) for the quarter ending June 30, 2020

· Certificate of tax deducted at source to employees in respect of salary paid and tax deducted during Financial Year 2019-20. The due date for issuing certificate has been extended from June 15, 2020 to August 15, 2020 vide the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with Notification No.35 /2020, dated 24-06-2020.

30th August 2020

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

· ?Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IB in the month of July, 2020

· ?Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194M in the month of July, 2020


JUDICIAL PRONOUNCEMENTS

  • Rectification u/s 154 can be exercised only if their is mistake apparent from records i.e. a matter which is incapable of any argument or debate (JMD auto Pvt Ltd vs ITAT)

  • Section 11 exemption cannot be denied merely because income is exempt from Principles of mutuality (Confederation of Indian Textile Industry vs ITO)

  • Disallowance for depreciation on Brand License fees is unjustified (Star India (P) Ltd vs ACIT)

  • Stay of Demand extended by ITAT in case where delay was not attributable to Assessee (Infosys Ltd Vs ACIT)

  • Ex-parte order for non – attendance during lockdown is unjustified (Uttar Pradesh Water Supply and Sanitation Mission vs ACIT)

  • MD fined and Sentenced for TDS default of concerned company – Due to non-deposit of deducted TDS on time- Fine of Rs. 5000 & Imprisonment of 3 months (Suryodaya Infrastructure (P) Ltd vs ITO)

  • Withholding of refund for non-completion of assessment is invalid (Cooner institute of Health care and Research Centre (P) Ltd vs ITO)

  • Mere expense on electricity and water bills wont covert the status of plot to residential for claiming exemption u/s 54 of Income Tax Act (Shri Shailesh Kumar Chaturvedi vs ITO)

  • TDS u/s 194C is applicable on payment made for advertisement expenses. In case of non deduction, disallowance is made u/s 40(a)(ia) (Mehra Eyetech (P) Ltd. Vs Add. CIT

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