NO ITR for 75+ years old Taxpayers w.e.f. A.Y. 2022-23

In order to provide big relief, to the senior citizens aged 75 or above from IT filing, Ministry has introduced Section 194P in the Income-Tax Act, 1961 via the Finance Act 2021. New Section 194P is applicable from 1^st day of April 2021. They can give a simple declaration to his/her bank to get exemption from filing the Income Tax Return (ITR) for AY 2022-23.

q  Section 196P of the Income Tax Act, 1961:

Section 194P of the Income Tax Act, 1961 provides conditions for exempting Senior Citizens from filing income tax returns aged 75 years and above.

q  Conditions for exemption:

1)       Senior Citizen should be of age 75 years or above

2)       Senior Citizen should be ‘Resident’ in the previous year

3)       Senior Citizen has pension income and interest income only & interest income accrued / earned from the same specified bank in which he is receiving his pension

q  ITR Filing related points – what we must know:

1.      The rule prescribes a new physical form, 12BBA, that needs to be furnished to banks by the eligible senior citizen.

2.      Department has also notified a separate Annexure-II in Form 16 with the details of incomes and deductions available only to the eligible senior citizens.

3.      “For computation of the taxable income, the bank will consider the declaration submitted by the senior citizen, the pension and interest income received as also the applicable deductions and rebate.

4.      After this exercise (mentioned in point 3), the bank will deduct TDS and issue Form 16 to the senior citizen.

5.      No exemption from ITR Filing if, Senior citizen 75 years or more with multiple bank accounts will not get any exemption from filing ITR.

6.      The provisions pertaining to submission of return of income under section 139 of the Income Tax Act 1961, shall not apply to the specified senior citizen for the assessment year relevant to the previous year in which tax is deducted under section 194P.

7.      Once the specified bank deducts tax under section 197P, the specified senior citizens are not required to file ITR since section 139 will not apply to them.

8.      CBDT has notified a new rule 26D, under which senior citizens are required to submit form 12BBA with the specified bank to claim the benefit of section 194P.

9.      Necessary amendment have been made in various provisions and returns including, form 16, form 24Q, form 26QC and form 26QD to incorporate necessary changes related to provisions of section 194P.  

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

ITR and Audit Reports Due Date Further Extended on 09.09.2021 by CBDT

 ITR and Audit Reports Due Date Further Extended on 09.09.2021 by CBDT

The Central Board of Direct Taxes (Income Tax Department) vide Press Release ID: 1753603 dated 09.09.2021 {CBDT Circular No.17/2021 in F.No.225/49/2021/ITA-II dated 09.09.2021} has decided to further extend the due dates for filing of Income Tax Returns (ITR) and various reports of audit for the Assessment Year 2021-22.

CBDT has considered representation w.r.t. difficulties reported by the taxpayers and other stakeholders in filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22 under the Income-tax Act, 1961(the “Act”).

CBDT extends due dates for filing of Income Tax Returns and various reports of audit for Assessment Year 2021-22

Extension Table for AY 2021-22 by CS Lalit Rajput

·         Clarification:  It is also clarified that the extension of the dates as referred to in clauses (9), (12) and (13) of Circular No.9/2021 dated 20.05.2021 and in clauses (1), (4) and (5) 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 rupees one lakh. Further, 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 Circular No.9/2021 dated 20.05.2021 and as above) provided in that Act, shall be deemed to be the advance tax.

 

 r  Source: Press Release and Notification – Click Here

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

OPC Annual Filings – Due Dates and Key points

 OPC Annual Filings – Timeline and Key points:

Define OPC: Sec 2(62) ‘One Person Company’ means a company which has only one person as a member.

ü  One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty (180) days from the closure of the financial year.  (Section 137 of the CA 2013).

ü  AGM not Applicable for OPC: (Section 96.)

ü  A person can be member in only one OPC.

ü  The following 2 E - forms to be filed for Annual ROC filing is:

•       MGT-7 - Annual return

•       AOC- 4 - Financial Statements, Balance Sheet & P&L Account

ü  Due date for Annual Financial Statements (AOC-4): The due date for Annual Filing is 27.09.2021 (if FY ended on 31.03.2021)

ü  Due date for Annual Return (MGT-7: OPC does not require to hold AGM, yet the due date for filing Form MGT 7 shall be 60 days from the completion of the 6 months from the end of financial year, that means due date will be 60^th day from 27.09.2021.

ü  Penalty for non - submission with in due timeline: In case a return has not been filed, a Penalty (additional fees) will be levied from the due date (27.09.2021) of INR 100/- per day for each day for which default continue.   

For further query, please connect at 9625483520 / cslalitrajput@gmail.com

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information. Many sources have been considered including newspapers (ET, BS & HT etc.)