by CA Nimesh Hariya | Feb 1, 2021 | Income Tax Update
- First digital Budget in the history of India
- Vehicle Scrapping Policy. Vehicle Fitness Test after 20 years in case of Personal vehicle and 15 years in case of commercial vehicles
- 64,180 crores allocated for New Health Schemes
- 35,000 crores allocated for Covid Vaccine
- 7 Mega Textile Investment parks will be launched in 3 years
- 5.54 lakh crore provided for Capital Expenditure
- 1.18 lakh crore for Ministry of Roads
- 1.10 lakh crore allocated to Railways
- Proposal to amend Insurance Act. Proposal to increase FDI from 49% to 74 %.
- Deposit Insurance cover (DICGC Act 1961 to be amended). Easy and time bound access of deposits to help depositors of stress banks.
- Proposal to revive definition of ‘Small Companies’ under Companies Act 2013. Capital less than 2 Cr. and Turnover Less than 20 Cr.
- Disinvestment: IPO of LIC, Announced Disinvestment of Companies will be completed in FY 2021-22
by CA Nimesh Hariya | Jun 26, 2020 | Income Tax Update
Due date for income tax return for the AY 2020-21 (FY 2019-20) has been extended to 30th November, 2020 by the CBDT vide Notification No 35/2020. Hence, the returns of income which are required to be filed by 31st July, 2020 and 31st October, 2020 can be filed upto 30th November, 2020.
However, Tax filing comes with Tax payments and with that comes Interest levy under section 234A/B/C. This interest component and it’s impact gets ignored many times while doing tax estimations and calculations. However, later it has a great impact in amplifying the final tax payable amount.
So let’s first have a look at the sections 234A/B/C of the Income-tax Act, 1961:
234A : Interest for delay in Return Filing
This is levied if Self Assessment tax is not paid upto due date of return filing.
234B : Interest for non/short payment of advance tax
This is applicable if assessee has paid less than 90% of Advance tax payable
234C : Interest for deferment of Advance tax instalments
This shall be levied if Assessee does not pay upto 12%, 36%, 75% and 100% of assessed tax in the quarterly instalments of 15th June, 15th September, 15th December and 15th March.
Amongst the above interest sections, relief has been provided only under section 234A stating that the said interest will not be levied upto 30th November 2020 in the case of a taxpayer whose self-assessment tax liability is upto Rs. 1 lakh. However, it is clarified that there will be no extension of date for the payment of self-assessment tax for the taxpayers having self-assessment tax liability exceeding Rs. 1 lakh. In this case, the whole of the self-assessment tax shall be payable by the due dates specified in the Income-tax Act, 1961 i.e. 31st July and 30th September and delayed payment would attract interest under section 234A.
Whereas, in respect of 234B/C which are based on Advance tax payments, there is no relief being provided.
So, in the following two cases listed below, the assessee should not consider 30th November as the due date and should not procrastinate the data finalization, tax calculations and its payment:-
- Self-assessment tax payable is estimated to be above Rs 1 Lakh.
- Sufficient and regular advance tax payments have not been made.
These assessees should rather aim at the respective due dates under the Act i.e. 31st July and 30th September so as to get completed with Tax payments as far as possible so as to avoid interest levy.
In these turbulent times of COVID-19 and lockdown, businesses as well as individuals are facing high financial crunch and so tax payments itself is going to be an inevitable hit to their pocket. At least, timely payment of the same can avoid the interest levy and thus result in some relief to the assessees!
by CA Nimesh Hariya | Jun 4, 2020 | General Update
મુખ્યમંત્રી @vijayrupanibjp એ 14 હજાર કરોડ રૂપિયાનું આર્થિક પેકેજ જાહેર કર્યું
200 યુનિટ સુધીની માસિક વીજ વપરાશકર્તાને 100 યુનિટની માફી
વેપારીઓને પ્રોપર્ટી ટેક્સમાં 20% ની રાહત
નાના દુકાનદારોને 3 મહિનાના વીજબિલમાં રાહત
ઉદ્યોગ વ્યવસાય માટે 1700 કરોડની સબસીડી
by CA Nimesh Hariya | May 15, 2020 | General Update
Hon’ble Union Finance Minister is likely to announce relief measures for agriculture and related activities.
Government is actively discussing raising states’ borrowing limit for FY 2020-21. Increasing the borrowing limit may be part of Aatmanirbhar Bharat Abhiyan.
Sectors covered in tranche 3: Agriculture and allied activities including fishery, animal husbandry and food processing.
FM to announce 11 relief measures today:
8 measures related to infrastructure such as storage capacities
3 measures related to governance and administrative reforms
Steps for agriculture during COVID-19:
MSP purchases worth Rs 74,300 crore
PM Kisan Samman Yojna payments made worth Rs 18,700 crore
Cleared PM Fasal Bhima Yojna with Rs 6,400 crore
Numerous steps are taken for animal husbandry such as interest subvention, and provided liquidity worth Rs 5,000 crore.
Rs 1 lakh crore for aggregators, FPOs, agriculture entrepreneurs and startups for the development of cold chain and post-harvest management.
Rs 10,000 crore allotted to form Micro Food Enterprises (MFE), which will benefit two lakh MFEs on a cluster-based approach.
Rs 10,000 crore to boost local products for global sale
Launching Pradhan Mantri Matsya Sampadha Yojana (PMMSY) with Rs 20,000 crore. This will ensure employment to over 55 lakh people and help double the exports to Rs 1 lakh crore.
To ensure 100% vaccination for around 53 crore animals, the National Animal Disease Control Programme will receive Rs.13,343 crore.
To support private investment in dairy processing and cattle feed infrastructure, the Animal Husbandry Infrastructure Development Fund will be created and receive Rs 15,000 crore.
National Medicinal Plant Board (NMPB) will receive Rs 4,000 crore to promote herbal cultivation in 10 lakh hectares.
Rs 5,000 crore will be allocated to develop beekeeping activities. This will help 2 lakh beekeepers.
TOP to TOTAL Initiative: Extending “Operation Greens” from tomatoes, onions, and potatoes (TOP) to all fruits and vegetables in a pilot mode by allocating Rs 500 core.
Amendments to the Essential Commodities Act to deregulate cereals, edible oils, oil seeds, pulses, onions and potatoes. This will enable better price realisation for farmers.
A central law will be formulated for implementing agriculture marketing reforms. This provides marketing choices to farmers like every other trader.
Farmers will not face inter-state barriers.
A legal framework will be created for farmers, which will mitigate the risk, provide assured returns and standardise the quality.
by CA Nimesh Hariya | May 14, 2020 | General Update
Today’s initiative focuses on migrant workers, street vendors, small traders, self-employed people, small farmers– in all 9 steps to be announced: FM
Among the 9 measures — 3 are related to migrant workers, 1 for street vendors, small traders, self-employed people, 2 on small farmers1 on housing: FM
3 crore marginal farmers have already availed Rs 4 lakh cr of loans on concessional rates, says FM
Interest subvention and prompt repayment incentive on crop loans due from March 1 has been extended to May 31: FM Nirmala Sitharaman
Direct support to farmers & rural economy provided post Covid-19 as part of Aatma Nirbhar Bharat Package: FM
25 lakh new Kisan Credit Cards have been sanctioned with a loan limit of Rs 25,000 crore: FM
The government has permitted state governments to utilise SDRF for setting up shelter for migrants and providing them food and water etc. We are conscious, we are attending to the migrants and giving them in various different ways: FM
Minimum wage for workers hiked from Rs 182 to Rs 202 per day. States and UTs have also been told to provide jobs to migrants: FM
12,000 self-help groups (SHGs) have produced more than 3 crore masks and 1.2 lakh litres of sanitizers during Covid-19 period. 7,200 new SHGs for urban poor have been formed during the last two months: FM
We want to give the right to minimum wage universally to all workers. We are proposing a national floor-wise wage rate so that uniform wage rate prevails across states: FM
Govt permitted state governments to utilise SDRF for setting up shelter for migrants
We have already generated 14.62 crore person-days of work till 13th May, which is 40-50% more persons enrolled as compared to last May. Migrant workers going back to their states being actively enrolled: FM Nirmala Sitharaman
We have already generated 14.62 crore person-days of work till 13th May, which is 40-50% more persons enrolled as compared to last May. Migrant workers going back to their states being actively enrolled: FM Nirmala Sitharaman
Public ditribution ration cards can be used in any ration shops irrespective of the states. One nation one ration card will be implemented and we assure 100% of national portability of these cards by March 31, 2021: FM
Govt to launch a scheme for affordable rental housing for migrant workers/urban poor to provide ease of living by converting government-funded housing in cities into Affordable Rental Housing Complexes (ARHC) under PPP mode through concessionaire: FM
Interest subvention support of 2% for those who have availed loans under Mudra Shishu loan (Rs 50,000 or less) will be given after 3 month moratorium period ends. It will benefit over 3 crore people under the shishu category: FM
Government will launch a special scheme within a month fo facilitate easy access to credit to street vendors. Will provide Rs 5,000 crore special credit facility for street vendors. Initial working capital of Rs 10,000 will be provided to them: FM
Government to extend the Credit Linked Subsidy Scheme (CLSS) for middle income group (annual income Rs 6-18 lakhs) up to March 2021; 2.5 lakh middle income families to benefit during 2020-21: FM
Rs 2 lakh crore concessional credit will be initiated to 2.5 crore farmers through Kisan Credit Cards: FM
Rs 30,000 crore additional emergency working capital fund to be provided through NABARD to small, marginal farmers: FM
