CA Updates by CA. Pooja Shukla RYPS

& COMPOSITION SCHEME A   GST rate change on supply of goods and services  i)  GST rate on electric vehicle reduced  from 12 % to 5%. ii) GST rate on charger and charging station for electric vehicle reduced from 18% to 5%. iii) Hiring of electric buses (carrying capacity more than 12 passengers ) by local authority be exempt from GST.   These changes shall become effective from 1st August , 2019 B   Last Date extended for taxpayers under composition scheme i) Supplier of service  who wants to obtain 6 % composition scheme (3% SGST and 3% CGST) now can file intimation in FORM GST CMP – 02 to 30th September  2019  This date is extended from 31.07.2019 to 30.09.2019 ii) Now composition dealer is required to file statement containing the details of  self -assessed tax in FORM GST CMP -08 for the quarter April 2019 to June 2019. Last date is extended to 31st August 2019. This date is extended from...

  NFRA (NATIONAL FINANCIAL REPORTING AUTHORITY ) NFRA shall have jurisdiction over bodies corporate and persons for matter of professional and other misconduct committed, by any member or firm of CAs registered under the Chartered Accountants Act 1949 Motive of Central Govt behind the constitute of this Authority i).To setup a separate and independent authority to established high quality standard of accounting and auditing and exercise effective oversight of accounting and auditing function. ii).Protect the public interest and the interest if investors, creditors, and other associated with the companies. iii).The quality of services provided by Chartered Accountant. APPLICABILITY OF THIS SECTION 132 (“the Act”) DUTIES OF AUTHORITY i)Monitor and enforce compliance with accounting standards and audition standards. ii)To supervise the quality of service of the profession...

    PROFIT ON TRANSFER OF HOUSE PROPERTY USED FOR RESIDENCE (SECTION 54) OF THE INCOME TAX ACT 1961 (“the Act”) Provision prior to amendment Long term capital gain arises on the transfer of residential house property exempt U/S 54 if following conditions are satisfied. i) Transfer a residential house property. ii) Transfer long term capital asset and there is long term capital gain. iii) Asset is transfer by an individual or HUF iv) Assessee has purchased one residential house property in India within one year before or two years after the date on which transfer took place or constructed the same within 3 years after the date of such transfer.   If an individual or HUF sale one residential house property then he can invest only in one residential house property for claiming exemption U/S 54  Provision after the amendment made by finance bill 2019 w.e.f. A.Y. 2020-21 Now long-term capital gain arises on transfer of residential house ...

IF INCOME OF RS 50,000 PER MONTH THEN NO TDS  A)STANDARD DEDUCTION FROM GROSS SALARY UNDER SECTION 16 (ia) of (“The Act”) As per the provision prior to amendment A deduction of  Rs  40,000  or   Amount of salary  (whichever is less). i.e.  Rs  40,000 As per amendment made in this provision w.e.t. A .Y. 2020-21 The deduction has been raised from Rs 40,000 to Rs 50,000 . i.e.  Rs 50,000 B)REBATE FROM INCOME TAX TO A RESIDENT INDIVIDUAL UNDER SECTION 87A of (“the Act”)   As per provision prior to amendment   Rebate u/s 87 A is available if – i) His total taxable income upto Rs 3,50,000          Quantum of rebate is –           Amount of income -tax payable or Rs 2500 (whichever is less)                            i.e  Rs 2500   As per amendment made in...

GIFT TO NRI  IS TAXABLE IN INDIA NOW ONWARDS Amendment in Section 9 of Income Tax Act, 1961 As per existing provision of section 9 of income tax act, in case of Non resident Income earned outside India or received outside India is not taxable in the hands of non-residents. Non-residents are taxable in respect of income earned in India or deemed to be earned in India or received in India or deemed to be received in India only under section 9 of the Income Tax Act, 1961, (“the Act”). Gifts were made by residents in India to non residents upon which non resident claimed that those gifts were not taxable under the Act as that income neither accrued nor arose in India.  India wherein those gifts were claimed to be non-taxable in India as the gifted income did not accrue or arise in India. Those gifts comprised of payment of money and /or transfer of  property situated in India. Section 56(2)(x) of the Income-tax Act provides i.e. if any sum of money w...

      Commissioner Has Power To Cancel  Registration of Trust Amendment of   Section 12AA of income tax act with effect from 1 st November 2019, provides that cancellation of registration can be on two grounds i.                      The Principal Commissioner or the commissioner is satisfied that activities of trust or institution   are not genuine or are not being carried out in accordance with its objects     AND & ii.                    Where a trust or an institution has been granted registration under section 12A and subsequently ,it is noticed that the trust or institution has violated requirements of any other law which was material for the purpose of achieving its objects , the principal commissioner or commissioner may, by...

NO INCOME BUT ITR FILING MANDATORY   Mandatory furnishing of ITR by certain persons .-     In order to ensure that persons who entered into certain high value transactions do furnish their return of income , amend in section 139 of Income Tax Act that a person shall be mandatory to file ITR, if during the previous year he-   i.                 Has deposited an amount exceeding 1crore in one or more current account maintained with the banking company or a co-operative bank OR ii.               Has incurred expenditure of an amount exceeding 2 lacs for himself or any other person for travel to a foreign country. OR iii.                Has incurred expenditure of an amount 1 lacs to wards consumption of electricity     OR ...