CBDT vide Notification 36/2019, dated 12th April, 2019 has revised format of Annexure II in TDS Statement for Form 24Q. CBDT has also made it mandatory for all deductors to issue the TDS certificate in Part B of Form No. 16 (TDS on salary) by downloading it through TRACES Portal. The same will be applicable in respect of all sums deducted u/s 192 on or after April 1, 2018. The revised format is more elaborative and informative and is in line with Income Tax Returns forms.
Form 16 is a certificate provided on yearly basis to all employees by 15 June after end of respective financial year. On the basis of information given in Form 16 by employer, employees file their Income tax return.
Form 16 comprise of 2 Parts namely: Part A & Part B.
Part A has details of the amount paid, TDS deducted from Salary and TDS deposited to government. Since 2012, Employers were mandatorily required to issue PART A of form 16 after downloading the same from TDS TRACES portal to their Employees.
Part B has details of Salary break up, Exempted allowances, Perquisites, Deductions and rebate allowed to the employees along with tax due and tax deducted. Earlier, Part B was prepared by the employer but now Income Tax Department has standardized format of Part B and has made it mandatory for the Employers to download the aforesaid Form from the TDS TRACES portal and issue the same to their respective Employees.
Changes/ Additional requirements in Annexure II of Form No. 24Q
- Earlier deductions under Chapter VI-A were disclosed in consolidated manner in Form 16. Now, under Revised Form 16 they have to be disclosed separately under specific sections (Sec 80C, 80CCC, 80CCD (1), 80CCD (1B), 80CCD (2), 80D, 80E, 80G, 80TTA etc.) which will enable the tax authorities to get a better insight of various components of the deductions claimed by Taxpayers in their respective Income Tax returns.
- Earlier there was no separate row for disclosure of income from previous employer in Form 16 and it was clubbed by the Companies in a separate head meant for all incomes which Employees wishes to report. Now in revised Form 16, a separate row has been inserted for the same.
- Earlier in Form 16, all the exempted allowances under section 10 were clubbed together under one head. Now in revised Form 16, all the exempted allowances have to be disclosed under specific headings such as Gratuity, Leave Travel Allowances, Pension, etc. & the balance allowances will have to be disclosed under one residual head.
- Separate row introduced for Rebate under section 87A (If Applicable)
- Separate row introduced for Standard deduction u/s 16 (ia).
- PAN of landlord shall be mandatorily furnished where the aggregate rent paid during the previous year exceeds Rs 1,00,000/- & House rent allowance exemption is claimed under Sec 10(13A).
- PAN of lender shall be mandatorily furnished where the housing loan, on which interest is paid, is taken from a person other than a Financial Institution or the Employer in revised Form 16. The same was previously optional.
- Other than Salary income which an employee could declare to the Employer has been limited to Income from House Property and Income from Other Sources under Revised Form 16. Earlier, the same was open ended and the employee could also declare income from Capital Gains to his employer for deduction of taxes at source.
MCA vide its notification dated 22/01/2019 has directed all Public and Private Companies to file E-Form MSME-1, on or before 30/05/2019.
The above mentioned form is required to be filed by all private companies and public companies who get supplies of goods or services from Micro and small enterprises and whose payment is outstanding to such Micro and Small enterprises for more than 45 days from the date of acceptance or the date of deemed acceptance of the goods or services.
Returns to be filed are as follows and period
- One time return for details of outstanding as on 22.01.2019 – To be filed before 30/05/2019
- Half Yearly return as on 31.03.2019 for period Oct 2018 to March 2019. – To be filed before 30/05/2019
Please note that filling of MSME -1 is an annual exercise here onwards. For Financial Year 19-20 the form needs to be filed twice i.e.
- On or before 30th October, 2019 for period April 2019 to September 2019.
- On or before 30th April, 2020 for period Oct 2019 to March 2020.
As we are entering the financial year 2019-20, there are few changes in tax laws which will directly impact most of the tax payers. As announced in the budget speech presented by Hon. Piyush Goyal, the changes will be effective as on 01.04.2019. Following are the changes.
- Taxpayers with Taxable Income of up to INR 5 lakh during the financial year will not be required to pay tax on the income. Taxable income will mean income after all eligible deductions u/s 80 (80C, 80CCC, 80CCD, 80D, 80TTA, 80E, 80GG etc) of the Income Tax Act, 1961.
- Now a tax payer can have two self-occupied houses from 01.04.2019. The tax payer is no more required to pay notional rent on the second house. However he will be required to pay notional rent on third and consecutive houses.
- The TDS threshold limit for interest income through bank and post office deposits has been increased from INR 10000 to INR 40000.
- The TDS threshold limit for rental income is increased from INR 180000 to INR 240000.
- The standard deduction limit has been raised to INR 50,000 from INR 40,000.
- Long term capital gains tax exempted on two houses for FY 2019-20 subject to limit of gain does not exceed to INR 2 crores.
- GST Rates on Affordable housing is reduced to 1% without availment of Input tax credit which is in confirmation with the Governments scheme for affordable housing for poor.
- GST Rates on other constructions is reduced to 5% without availment of Input tax credit. Earlier tax rate was 12% with input tax credit.
The Ministry of Corporate Affairs vide Notification dated 22/01/2019 has published Companies (Acceptance of Deposits) Amendments Rules; 2019.They shall come into effect from 22nd January, 2019.
The purposes of the said Form are for better transparency regarding the outstanding receipt of money or loan standing in the books of account of the company.
The Detailed Note is as Follows:
- Companies other than Government Companies –Meaning Public and Private Limited (even OPC), Small Company have to comply with the above notification.
- DPT-3 –This form will be used for filling return of deposit or particulars of transaction not considered as deposit or both.
- Regular Return (DPT-3)-Form DPT-3 needs to be filed for return of deposit or particulars not considered as deposit or both. Deadline-Before 30.06.2019 for every financial year, e.g. for F.Y-31.03.2019, DPT-3 to be filed by 30.06.2019. Herein Referred as First Amendment.
- One Time Return (DPT-3)-For Outstanding receipt of money or loan by a company not considered as deposit. Period-from 01.04.2014 to 22.01.2019. Deadline-Within 90 days from 22.01.2019 i.e. by 22.04.2019.Herein Referred as Second Amendment.
- Revised DPT-3 Form has not been deployed yet on the MCA portal.
- Companies Exempted from the above notification-Banking Company, NBFC Company, Government Company, Housing Finance Company.
- Meaning of Deposit -For Eg-Acceptance of loans from public, Acceptance of loan from shareholders by a public listed company, Acceptance of loan from body corporate.
- If company has received loan from holding, subsidiary or associate company then as per Rule 16A, DPT-3 needs to be filed.
Request you to collect the data as early as possible so that as and when the form is notified we can upload the same.
Due date of filing GSTR-3B for the tax period January, 2019 has been extended up to 22nd February, 2019. Only for J&K it is extended up to 28th Feb 2019.
Recently MCA has passed SPECIFIED COMPANIES (Furnishing of information about payment to micro and small enterprises suppliers) ORDER 2019.
According to the above order every specified company shall file MSME FORM 1 details of all outstanding dues to MICRO and SMALL SUPPLIERS existing on the date of notification within thirty days i.e within 22/02/2019.After which they have to file half yearly returns-April to September-by 31st October and October to March by 30th April.
CLASSIFICATION OF RETURNS
1.Intial Return-By 22/02/2019.
- Half Yearly Return-Period-April to September-By 31stOctober and October to March –By 30thApril.
MEANING OF SPECIFIED COMPANIES
As per the Notification Order, Specified Companies are all Companies, who get supplies of goods or services from Micro and Small Enterprises AND whose payment to such Micro and Small Enterprises exceeds 45 days from the date of acceptance or the date of Deemed Acceptance of the goods or services as per the provisions of Section 9 Micro, Small and Medium Enterprises Development Act, 2006.
INFORMATION TO BE PROVIDED
- Total Amount Due
- Particulars of Suppliers (Financial Years/particulars/Name /Pan Number/Amount Due/Date from which the amount is due)
- Reasons For The Delay.
ACTION POINTS TO BE TAKEN
- Declaration cum confirmation (Copy of MSMED Registration Certificate) that they fall under MSME (Micro and Small)category, based on which the company shall decide whether they need to file Form E MSME-1 with MCA.
- Practicing Professional Certification is not required. E-Form MSME -1 to be certified by the Director or CEO of the company.
- Note –Till date the form has not been notified.
No tax exemption of income upto 5 lac
Only applicable in case income not exceeded 5 lac hence not applicable on those whose income is over 5 lac.
Change is not made in tax structure but change is made in rebate of section 87A.
No slab change from 2.5 to 5 lac.
Rebate of rs. 2500 for income up to 3.5 lac is increased to rs. 12500 for income upto 5 lac.
The central board of indirect taxes and customs (CBIC) has notified that the goods and service tax (Amendment) act, 2018 is to be enforced from 1st Feb 2019. The GST act was notified within the gazette in last August.
The CBIC notified issued o last day said that except the provision of section 8(b), 17, 18, 20(a), 28(b)(i) and (c)(i), all different provision would be enforced from 1st Feb.
One of the most important changes would be that the GST composition levy has been extended to the services. The GST Amendment acts additionally the reverse charge mechanism under section 9(4).
Earlier, RCM would be applicable just in case of purchase higher than Rs. 50000 from each unregistered person by a registered person. The provision had never been enforced by the government. In September, the GST council planned to scrap the provision and set to re-introduce on for fixed items in future.
The central GST (Amendment) bill, integrated GST (Amendment) bill, Union territory GST (Amendment) bill and GST (Compensation to states.) Amendment bill cleared by the parliament a few months ago. The amendment made return forms easier and turnover threshold for availing composition scheme to Rs. 1.5 crore