Relief for Salaried Class

*Relief for Salaried Class: 

CBDT notifies  for Cash Allowance in lieu of Leave Travel Concession, Amends Income Tax Rules [Read Notification]*

_The Central Board of Direct Taxes (CBDT) has notified the amendment in Rule 2B of the Income Tax Rules where the provisions relating to exemption in respect of cash allowance received in lieu of leave travel concession (LTC) has been incorporated. The move would be beneficial to the employees who had not been able to avail of LTC in the block of 2018-21 due to the COVID-19 pandemic and the nationwide lockdown. This will allow them to claim the exemption in respect of cash allowance subject to fulfillment of certain conditions. As per the amended rules, a new provision, specified employees, who avails any cash allowance from his employer in lieu of any travel concession or assistance for himself and the members of his family will get an exemption up to thirty thousand rupees or one-third of the specified expenditure, whichever is less, subject to conditions prescribed. The exemption shall be subject to the following conditions (i) the individual has exercised an option to avail exemption under the second proviso of clause (5) of section 10, in lieu of the exemption under clause (5) of section 10 in respect of one unutilised journey during the block of four calendar years commencing from the calendar year 2018; (ii) the payment in respect of the specified expenditure is made by the individual or any member of his family to a registered person during the specified period; (iii) the payment in respect of the specified expenditure is made by an account payee cheque drawn on a bank or account payee bank draft, or use of electronic clearing system through a bank account or through such other electronic mode as prescribed under rule 6ABBA; and (iv) the individual obtains a tax invoice in respect of specified expenditure from the registered person referred in clause (ii). The provisions are applicable for the assessment year beginning on the 1st day of April, 2021._

Latest Updates from RBI

**RBI Announces New Measures Amid Covid Second Wave**

On-tap liquidity of Rs 50,000 crore at repo rate is being opened till March 31, 2022. Under the scheme banks can support entities including vaccine manufacturers, medical facilities, hospitals and also patients.

Such lending will get priority sector classification till repayment or maturity.

**RBI Advances Next G-SAP auction**

Second purchase of government securities for Rs 35,000 crore under G-SAP 1.0 will be conducted on May 20, RBI Governor Das said.

**RBI Re-Opens One-Time Restructuring**

For Individuals, MSMEsBorrowers, including individuals and MSMEs, permitted one-time restructuring till September 30, 2021. 

These borrowers should have been standard as on March 31, 2021.

Under restructuring 1.0, the period of moratorium can be extended upto a total of 2 years.

**RBI Announces New Measures Amid Covid Second Wave**

On-tap liquidity of Rs 50,000 crore at repo rate is being opened till March 31, 2022. 

Under the scheme banks can support entities including vaccine manufacturers, medical facilities, hospitals and also patients.Such lending will get priority sector classification till repayment or maturity.

Banks to create a Covid loan book under the scheme.

Such banks can park liquidity equal to Covid loan book at 40 basis points above the reverse repo rate.

The RBI has announced a targeted long term repo operation for small finance banks of upto Rs 10,000 crore. 

The funds can be used for lending of upto Rs 10 lakh per borrower.

SFBs permitted to on-lend to smaller microfinance institutions of asset size upto Rs 500 crore.

Due Dates under various laws

Compliance Calendar affected due to COVID-19 for May-21

*Pandemic month - keep Social distancing, wash hand and wear mask*

🚨🚨*Extension of due dates FY 2019-20*🚨🚨

▪️31st May 2021- FILING OF BELATED RETURN AND REVISED RETURN FOR FY 2019-20 I.E. AY 2020-21, WHICH WAS REQUIRED TO BE FILED ON OR BEFORE 31ST MARCH, 2021.

▪️31st May 2021- Payment of tax deducted and furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA, Section 194-IB and Section 194M for the month of March, 2021.

▪️31st May 2021- Filing SFT (Form 61) extended to 31st May, 2021 (where the due date was 30th April, 2021)

▪️31st May 2021- Relaxation of Filing Appeal dates for Appeals to CIT (Appeals) extended to 31st May, 2021 (where such last date was 1st April, 2021 or after)

▪️31st May 2021- Return filed in response to 148 of the Income Tax Act – where return of income had to be filed on or after 1st April, 2021  - can now be filed upto 31st May, 2021

*FY 2020-21*

📙* INCOME TAX*

▪️07th May 2021- TDS deducted /TCS collected for the month of April, 2021

▪️15th May 2021 - Due date for issue of TDS Certificate for tax deducted under section 194- IA/194-IB/194M for the month of March, 2021

▪️15th May 2021- Quarterly statement of TCS deposited for the quarter ending March 31, 2021

▪️30th May 2021- Furnishing of challan-cum-statement in respect of tax deducted under section 194-IA/194-IB/194M for the month of April, 2021

▪️30th May 2021- Issue of TCS certificates for the 4th Quarter of the Financial Year 2020-21

▪️30th May 2021- Form 24Q (TDS Return for Salary) Statement for TDS from salaries

▪️31st May 2021-Form 26Q (Filing of TDS statement) Quarterly statement of TDS deposited for the quarter ending March 31, 2021

📙 GST

▪️11th May 2021-Due date of filling GSTR-1 for the month of April- 2021 who does not opt QRMP (Quarterly Return Filing and Monthly Payment of Taxes) Scheme under GST.

▪️13th May 2021-Due date of filling Sales Invoice / Credit Notes for the month of April- 2021 who opted QRMP (Quarterly Return Filing and Monthly Payment of Taxes) Scheme under GST (Optional Filing)

▪️20th May 2021-Due date of filling GSTR-3B by registered person having a turnover above Rs. 5 Crores in the previous Financial Year for the month of April,2021 (for Maharashtra and Chattisgarh state)

▪️25th May 2021- GST Payment for the month of April 2021 under QRMP Scheme.

📙 ESI/PF

▪️15th May 2021- Due date for payment of Provident Fund, ESI contribution for employers who have paid wages to their employees for April 2021.

▪️25th May 2021- Due date of filing of return for month of April.

Note: If not paid within due date disallowed under income tax act.

📙 PROFESSIONAL TAX

▪️31st May 2021- Due date for payment of PT for the month of April where tax liability is more than Rs.100,000/-.

📙 LLP

▪️30th May 2021- LLP Form 11-LP Annual Filing- Details of LLP and/or Company in which partner/designated partner is director/partner.                          

#MJM Advisors

GST QRMP Scheme

Namaskar!

We wish to bring your attention to a simple yet quite effective change you can bring by using an option given by the Department. Also, you have to make that decision before the 31st of January.

If your Turnover is upto Rs 5 Crores, you can opt for Quarterly Return Monthly Scheme (QRMP) instead of the Regular Monthly Scheme as per the choice given by the Department.

We suggest using the regular scheme from what we have experienced with many of our customers and associates.

These are the top reasons:

    You have to give the details of the sales every month either in GSTR 1 and Invoice Furnishing Facility (IFF), so you might as well file the Return.

    You have to make Tax payments every month, whether it is the case of GSTR 3B or the PMT 06.

If you do these in the Regular scheme, you will face no reconciliation issues at the end of 3 months.

However, many businesses feel that the QRMP option is more convenient; we respect their decision and are sure that you will be making the decision considering all the factors involved in your Business.

But make sure to make the decision Today, as 31st January is the last date for making the decision and intimidating the Department.

If you have any doubts about the options given by the Department, or anything related to GST,

Contact us, and we will ensure to resolve your doubts and give a solution that makes sure you won't have to face any GST problem in the future!!!

Extension of Due Date for GST Audit F.Y.2018-19 & Tax Audit Due Date for A.Y. 2020-21

Income tax return for FY 2019-20 (no tax audit) - 

*31 December 2020*

Income tax return for FY 2019-20 (TP, tax audit and partners of tax audit firms) - 

*31 January 2020*

Various audit reports (including tax audit, transfer pricing) - 

*31 December 2020*

Income tax return for FY 2018-19 - 

*30 November 2020*

GSTR9/9C for FY FY 2018-19 - 

*31 December 2020*

Clarification of Issues Relating to Application of Rule 36(4) of CGST Rules 2017

In view of measures taken to contain the spread of COVID-19 pandemic, vide notification No. 30/2020-CT, dated 03.04.2020, it had been prescribed by the department that the condition made under Rule 36(4) of  CGST Rules shall apply cumulatively for the tax period February, March, April, May, June, July and August, 2020 and that the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months.

The CBIC has issued a Circular No. 142/12/2020-GST dated 9th October, 2020 providing clarification relating to application of sub-rule (4) of rule 36 of the CGST Rules, 2017 for the months of February, 2020 to August, 2020. The main points of the circular are given below:

1. To reconcile the ITC availed in their FORM GSTR-3Bs for the period February, 2020 to August, 2020 with the details of invoices uploaded by their suppliers of the said months, till the due date of furnishing FORM GSTR-1 for the month of September, 2020.

2. The cumulative amount of ITC availed for the said months in FORM GSTR-3B should not exceed 110% of the cumulative value of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers in GSTR 1, till the due date of furnishing GSTR-1 for the month of September, 2020 that is 11.10.2020. It may be noted that availability of 110% of the cumulative value of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers in GSTR 1 does not mean that the total credit can exceed the tax amount as reflected in the total invoices for the supplies received by the taxpayer i.e. the maximum credit available in terms of provisions of section 16 of the CGST Act.

3. The excess ITC availed arising out of reconciliation during this period, if any, shall be required to be reversed in Table 4(B)(2) of FORM GSTR-3B, for the month of September, 2020.

4. Failure to reverse such excess availed ITC on account of cumulative application of sub-rule (4) of rule 36 of the CGST Rules would be treated as availment of ineligible ITC during the month of September, 2020. 

5. An illustration explaining the manner of cumulative reconciliation of ITC for the period February, 2020 to August, 2020 are given below in tabulated form.

 

Tax Period	ITC availed by the taxpayer (recipient) in GSTR-3B of the respective months	Eligible ITC as per the provisions of Chapter V of the CGST Act.	Invoices on which ITC is eligible and uploaded by the suppliers till due date of FORM GSTR-1 for the tax period of September, 2020	Effect of cumulative application of rule 36(4) on availability of ITC.
February 2020	300	300	370	Maximum eligible ITC in terms of rule 36 (4) is 2450 + [10% of 2450] =2695. Taxpayer had availed ITC of 2750. Therefore, ITC of 55 [2750-2695] would be required to be reversed as mentioned in point 4 above.
March 2020	400	400	380
April 2020	500	500	450
May 2020	350	350	320
June 2020	450	450	400
July 2020	550	550	480
August 2020	200	200	150
Total	2750	2750	2450
ITC Reversal required to the extent of 55
September 2020	385	500	350	10% Rule shall apply independently for September, 2020
In the FORM GSTR-3B for the month of September, 2020, the tax payer shall avail ITC of 385 under Table 4(A) and would reverse ITC of 55 under Table 4(B)(2).

Compliance Calendar Financial Year Wise affected due to COVID-19 for July 2020

🔴 *FY 2018-19 *

📙 *INCOME TAX*

✔️31st July 2020- For assesse who has not filled their return or audit for FY 2018-19 last date of filling return

🔴 *FY 2019-20 *

📙 *INCOME TAX*

✔️31st July 2020- The date for making various investment/payment for claiming deduction under Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc.

🔴 *FY 2020-21 *

📙 *INCOME TAX*

✔️07th July 2020- TDS deducted /TCS collected for the month of June 2020

✔15th July 2020- TDS return of government department for fourth quarter ending on 31.03.2020

✔15th July 2020- TCS return deposit fir fourth quarter ending on 31.03.2020

✔️31st July 2020- TDS return in form 24Q/26Q for fourth quarter ending on 31.03.2020 

✔31st July 2020- TDS return for quarter 1 ending on 30.06.2020

✔️15th August 2020- Issue of form 16/16A for the fourth quarter ending 31.03.2020

✔️31st March 2021- Date for linking of Aadhaar with PAN

📙 *GST*

*Taxpayer having aggregate turnover > Rs. 5cr in preceding FY*

✔️20th July 2020- Due date of filling GSTR-3B for the month of June 2020 (No Extension)

✔️05th August 2020- Due date of filling GSTR-1 for the month of June 2020 

*Taxpayer having aggregate turnover upto Rs. 5cr in preceding FY*

*-GSTR-3B*

✔️03rd July 2020- Due date of filling GSTR-3B for the month of March 2020

✔️06th July 2020- Due date of filling GSTR-3B for the month of April 2020

✔️12th Sept 2020- Due date of filling GSTR-3B for the month of May 2020

✔️23th Sept 2020-Due date of filling GSTR-3B for the month of June 2020

*-GSTR-1 (Monthly)*

✔️10th July 2020- Due date of filling GSTR-1 for the month of March 2020

✔️24th July 2020- Due date of filling GSTR-1 for the month of April 2020

✔️28th July 2020- Due date of filling GSTR-1 for the month of May 2020

✔️05th August 2020- Due date of filling GSTR-1 for the month of June 2020

*-GSTR-1 (Quarterly)*

✔️17th July 2020- Due date for filling GSTR-1 for the Quarter Jan-March-2020

✔️03rd August 2020- Due date for filling GSTR-1 for the Quarter Apr-June 2020

*-Composition Dealer*

✔️08th July 2020- Due date for filling CMP-08 for the Quarter Jan-March-2020

✔️15th July 2020- Due date for filling GSTR-4 for the Quarter Jan-March-2020

*-ANNUAL RETURN /AUDIT REPORT*

✔️30th Sept 2020- GSTR-9 Annual return for FY 2018-19.

✔️30th Sept 2020- GSTR-9C Audit Report for FY 2018-19.

📙 *ESI/PF*

✔️15th July 2020- Due date of filling ESIC return of contribution for the period October-19 to March 2020.

✔️15th July 2020- Due date for payment of Provident Fund, ESI contribution for employers who have paid wages to their employees for June 2020.

📙 *PROFESSIONAL TAX*

✔31st  July 2020- Due date for exemption of  late fee payable under amnesty scheme for  in respect of monthly or annual professional tax returns pertaining to any periods up to March 2020 and monthly period of April 2020.

✔31st July 2020- Due date for payment of PT for the month of June where tax liability is more than Rs.50,000/-

*NOTE:*

1. Vivaad Se Vishwas Scheme extended to 31.12.2020 (without additional 10% of tax)

2. MCA - moratorium from 01.04.20 to 30.09.20 - there shall be no additional fees for late filings.

3. Revised CARO to get applicable from FY 20-21 instead of FY 19-20

4. For newly incorporated companies - Commencement of business is to be filed within 6 months, which is now extended for another 6 months.

5. DIN holders tagged as ‘Deactivated’ have an extended time of up to 30th September 2020 for filing DIR-3KYC/DIR-3 KYC-Web, without fees of Rs 5,000. Companies marked as “ACTIVE non-compliant” have got extended time of up to 30th September 2020 to file eForm ACTIVE without fees of Rs 10,000.