CA Mohamed Asharaf FCA, DISA(ICA); PAMA&C0

Charitable Trusts and exempt institutions have to reapply   for Income Tax registration   The  Finance Act, 2020 has made far-reaching and sweeping changes  pertaining to the registration and exemptions of charitable institutions. All the existing charitable and religious institutions (including NGOs) which are registered or approved under the Section 12A , Section 12AA , Section 10(23C) and Section 80G are compulsorily required to switch to section 12AB for fresh registration. Currently, several hospitals, schools and colleges are registered simultaneously under section 10(23C) and 12AA. Charitable trusts and institutions currently registered under both section 10(23C) and section 12AA will now be required to apply for revalidation or renewal of either the approval under section 10(23C) or registration under section 12AA, but not both. Section 12AA dealing with the procedure for registration of a charitable trust will cease to be ...

Additional Income Tax benefits on Housing Loan                                                 Effective from AY 2020-21 Conditions :      ·     Assessee is an individual.      ·     Not eligible to claim deduction u/s. 80 EE.      ·      A loan should have been taken for acquiring residential house.      ·      Loan should have been sanctioned between 01.04.2019 and 31.03.2020 (extended to                     31.03.2021 in Finance Act 2020).      ·      Stamp Duty Value of residential house should not exceed Rs.45 lakhs.  ...

Relaxation/ Changes under Tax provisions due to COVID 19   ·        Due dates for filing income tax returns of all Individuals, HUFs, Association of Persons, Body of Individuals etc. whose accounts are not required to be audited , for the AY 2020-21   falling due on 31.07.2020 and 31.10.2020 extended to 30. November. 2020.   ·        A company or an individual or other entities   (like proprietorship, firm etc.) or working partner of a firm whose accounts are required to be audited due for completion on 30.09.2020 extended to 31. October. 2020.   ·        Due dates for TDS returns for Quarter ended 31.03.2020 extended from 31.05.2020   to 30.06.2020.   ·        Re-registration process of Charitable Institutions deferred till 01.10.2020.   ·        Interest on tax dues fallin...

New Composition Scheme for Service Providers under GST  (Updated on 27.11.2019) The Government introduced the composition scheme to assist small taxpayers and reduce the compliance burden.   A dealer under composition scheme is required to maintain fewer records/books of accounts and not required to file monthly returns. Earlier, the scheme was available only to the suppliers of goods. However, in the 32 nd GST Council Meeting, it has been announced that the scheme will now be available to service providers too. The scheme for service providers is available from 1 April 2019. Rate for composition service providers: 1.      For composition service providers, the applicable GST rate is 6% (being 3% CGST + 3% SGST). 2.      For calculation of the aggregate annual turnover, the value of supply of exempt services byway of extending deposits, loans or advances where the income is represented by way of interest or disco...

INCOME TAX ON DIVIDEND IN INDIA Pursuant to the changes introduced by the Finance Act 2020, w.e.f. April 1, 2020, the Company would be required to withhold taxes at prescribed rates on the dividend paid to its shareholders. The withholding tax rate would vary depending on the residential status of the shareholder and the documents submitted by them and accepted by the Company. Resident Shareholder Particulars Applicable Rate Documents Required (if any) With PAN 7.5% * Update the PAN, if not already done. Without PAN/ Invalid PAN 20% Submitting Form 15G/ Form 15H NIL Declaration in Form No.15G (applicable to any person other than a company or a firm)/Form 15H (applicable to an Individual who is 60 years and older), fulfilling certain conditions. Submitting Order under section 197 of the Income Tax Act, 1961 (Act) Rate provided in the Order Lower/NIL withholding ta...