An audit cum consultancy firm, with a team of efficient chartered accountants, corporate financial advisors and service tax consultants in Kolkata, India.
The cost inflation index (CII) for the financial year (FY) 2021-22 has been notified by the Ministry of Finance. In a notification dated June 12, the finance ministry stated that CII for FY 2021-21 has been set as 317. For the previous financial year, CII was 317.
This notification shall come into force with effect from the 1st day of April 2022, and shall accordingly apply to the Assessment Year 2022-2023 and subsequent years.
CII number is important as it is used to arrive at the inflation-adjusted purchasing price of assets and thereby long-term capital gains (LTCG). It is also important to compute the long-term capital gains/long-term capital losses (LTCL) on the assets which have been or are planned to be sold in FY 2021-22. There are two things that people must keep in mind relating to the cost inflation index.
Firstly, his number would be utilized to compute inflation-adjusted cost only for those assets where inflation-adjusted (indexation benefit) is permitted. Thus, the CII value could not be used to reach LTCG/LTCL on equity mutual funds.
Secondly, this CII number would be necessary to compute LTCG for Financial Year 2021-22. The taxes on these gains would be paid by you while filing your income tax returns (ITR) for Financial Year 2021-22 (AY 2022-23), that is, next year.
The table below shows the CII of the last 5 years:
The Income Tax Department has launched its new e-filing portal on June 7, replete with new features which are expected to make the ITR process much easier and faster. However, several individuals have faced difficulties in the last few days while using the new income tax return e-filing portal. There are various glitches faced by the taxpayers namely DSC not getting registered or updated; New Incorporated companies or Firms are not able to register themselves on ITD Portal; Forget password option not working; ITR in PDF can’t be downloaded; IT acknowledgements in PDF can’t be downloaded; DIN Number not getting auto populated in new ITD website; Challan Numbers not getting validated; no tab for VSV tab; Unable to file TDS Returns; Unable to file 15CA/15CB; E proceedings tab not workings; Grievances registered on ITD website are deleted without addressing; Old demands outstanding not reflected 14. Old Grievances registered not reflected; Unable to file Income Tax Returns for FY 2021 16.
Accounts get locked, if we try to login and are not able to login due to non-operatibility of site; Unable to raise refund reissue request; Unable to view Form 26AS; PAN Number is not shown as valid 20. Mismatch in PAN Data is shown when technically there is no mismatch; JSON Utility not available 22 while filing Verification in ITR if we select ‘Self’ in capacity then Name disappeared n Shown in validation errors. 23. UDIN is also not able to update for last month’s audit and other certification; Rectification of return options not available; Return processed in March 2021 now shows under processing in view details. Moreover, additional glitches on new ITD portal are in respect of Bank validation will take around 10-12 days; HUF has no option to register DSC; ITR filing not enabled for assessee having only income from other sources like Bank Interest and FDR interest; Registering as CA for filing TAR or other reports, no option to register DSC; For AOP PAN – no sub page/option for Registering DSC or updating DSC and Corporate – Directors and Shareholders information properly captured
26/05/2021 Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic Extension of time limits of c…
May, 20th 2021
Circular No. 9 of 2021
F.No.225/49/2021 -ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi,
Dated 20th May, 2021
Subject: Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic
The Central Board of Direct Taxes, in exercise of its power under section 119 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) provides relaxation in respect of the following compliances:
1) The Statement of Financial Transactions (SFT) for the Financial Year 2020 21, required to be furnished on or before 315t May 2021 under Rule 114E of the Income-tax Rules, 1962 (hereinafter referred to as “the Rules”) and various notifications issued thereunder, may be furnished on or before 30th June 2021;
2) The Statement of Reportable Account for the calendar year 2020, required to be furnished on or before 31st May 2021 under Rule 114G of the Rules, may be furnished on or before 30th June 2021;
3) The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31st May 2021 under Rule 31A of the Rules, may be furnished on or before 30th June 2021;
4) The Certificate of Tax Deducted at Source in Form No 16, required to be furnished to the employee by 15th June 2021 under Rule 31 of the Rules, may be furnished on or before 15th July 2021;
5) The TDS/TCS Book Adjustment Statement in Form No 24G for the month of May 2021, required to be furnished on or before 15th June 2021 under Rule 30 and Rule 37CA of the Rules, may be furnished on or before 30th June 2021;
6) The Statement of Deduction of Tax from contributions paid by the trustees of an approved superannuation fund for the Financial Year 2020-21, required to be sent on or before 31st May 2021 under Rule 33 of the Rules, may be sent on or before 30th June 2021;
7) The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64D for the Previous Year 2020-21, required to be furnished on or before 15th June 2021 under Rule 12CB of the Rules, may be furnished on or before 30th June 2021;
26/05/2021 Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic Extension of time limits of c…
8) The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64C for the Previous Year 2020-21, required to be furnished on or before 30th June 2021 under Rule 12CB of the Rules, may be furnished on or before 15th July 2021;
9) The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st July 2021 under sub-section (1) of section 139 of the Act, is extended to 30th September 2021;
10) The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September 2021, is extended to 31st October 2021;
11) The due date of furnishing Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which is 31st October 2021, is extended to 30th November 2021;
12) The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October 2021 under sub-section (1) of section 139 of the Act, is extended to 30th November 2021;
13) The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 30th November 2021 under sub-section (1) of section 139 of the Act, is extended to 318t December 2021;
14) The due date of furnishing of belated/revised Return of Income for the Assessment Year 2021-22, which is 31st December 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, is extended to 31st January 2022.
Clarification 1: It is clarified that the extension of the dates as referred to in clauses (9), (12) and (13) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds one lakh rupees.
Clarification 2: For the purpose of Clarification 1, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under this Circular) provided in that Act, shall be deemed to be the advance tax.
The Ministry of Corporate Affairs (MCA) notified that every company which uses accounting software for maintaining its books of account shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Government notified the Companies (Accounts) Amendment Rules, 2021 which seeks to amend Companies (Accounts) Rules, 2014.
In rule 3, in sub-rule (1), the proviso shall be inserted which says, “Provided that for the financial year commencing on or after the 1st day of April 2021, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.”
In rule 8, in sub-rule (5), after clause (x), the two clauses shall be inserted.
Firstly, the details of an application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year.
Secondly, the details of difference between the amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof.”
The notification shall come into force with effect from the 1 April, 2021.
The Ministry of Corporate Affairs (MCA) notified the amendment in the director’s remuneration. The notification seeks to amend Schedule V of the Companies Act, 2013, in PART II, under the heading “Remuneration”.
The Central Board of Indirect Taxes and Customs (CBIC) reminded the HSN Code on GST Tax Invoice Mandatory w.e.f. 1st April 2021.
The Taxpayers whose aggregate Turnover is up to Rs. 5 crores in the preceding Financial Year HSN code of 4 digits is mandatory for all the B2B tax invoices and optional for B2C tax invoices on the supplies of Goods and Services.
It is noteworthy, important system changes need to be integrated in your e waybills, Delivery challans, Tax invoices, GSTR 1 reporting, Shipping bills , GST refund applications and further note that options available for nonreporting under Table 17 and Table 18 would be done away from FY 2122 positively.
For nonreporting in Table 17 and Table 18 in GSTR 9 of FY 2021, we need to wait for the notification which may be issued by appropriate notification.
