Corporate and Professional Updates 19th July 2019

Direct Tax Updates:

• CBDT has notified changes in Form 16, the certificate issued by employers for tax deducted at source (TDS) for salaried employees, seeking disclosure of more details, especially about exempt allowances.
• Form 16 is a certificate issued by an employer detailing the TDS deducted with respect to payment to its employees. According to current income tax rules, every employer is required to issue the Form 16 with details of the salary paid and tax deducted at source of each of its employee. The Form 16 is usually issued by mid-June.
• Tax department has sought detailed bifurcation about exemptions taken by salaried employees under Section 10 of Income-tax Act, which include leave travel allowance (LTA), life insurance, pension, gratuity, leave encashment, transport allowance and house rent allowance.
• Earlier, where the disclosure of various deductions was mentioned in a consolidated manner, ranging from 80C, 80CCD, 80E, 80G would now be required to be disclosed separately
• It will also include segregated information regarding deductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources.
• The Standard deduction which was introduce has to be mention separately in Form 16
• The above changes will help in scrutinising income tax returns (ITRs) more precisely and plug possibility of tax leakage.
• PAN of Lender Mandatory in case of Loan for House Property.

RBI Updates:

• The Reserve Bank of India (RBI) on Thursday released a draft ‘Enabling Framework for Regulatory Sandbox’ in order to support the country’s rapidly growing fintech space. The sandbox will begin the testing process with 10-12 selected entities focusing on financial inclusion, payments and lending, digital KYC, etc. The cohorts may run for varying time periods, but should ordinarily be completed within six months, said the RBI.
• A regulatory sandbox usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may permit certain regulatory relaxations for the limited purpose of the testing. The regulatory sandbox would be within a well-defined space and duration where the RBI will provide the requisite regulatory guidance, so as to increase efficiency, manage risks, and create new opportunities for consumers.
• The draft guidelines highlight the clear principles and role of the proposed regulatory sandbox, its pros and cons, the reasons for setting up the regulatory sandbox and expectations of the RBI from the sandbox. The central bank has invited comments on the draft guidelines from stakeholders by May 8.

Other Updates:

• India needs land, labour reform to aid Mfg.
• India Inc’s Foreign Borrowings down 45% at $2.42 Billion in January.
• Stressed accounts of Bhushan Power, Essar up for sale.
• After Mallya saga, SEBI wants Companies Act changed.
• MSCI India weight in MSCI EM index likely to fall 20 BPS by November-end: Goldman Sachs.
• Gail chosen for Vedanta’s Barmer gas output buy.
• ONGC recieves single bid from US firm for Oil field production upgrade.
• RIL arm to acquire stake in Grab a Grub and C-Square for Rs 228 crore.
• IDBI Bank gets govt nod to handle import, export transactions with Iran.
• DIPAM to set up asset-monetisation cell to hasten sale of CPSE assets.
• RBI slaps Rs 11 Cr fine on 4 Banks for non-compliance in Swift operations.
• GMR Hyderabad airport divests stake in flight training academy.
• ‘Trump’s tirade against India’s Import tariffs unfair’.
• Coffee Exports up 13% in first 2-months of 2019.
• BHEL to set up Solar-based EV charger network on Delhi-Chandigarh highway.
• Adani Ports to pump ₹53,000 Cr to expand capacity of Kattupalli port.
• Jet pledges FDs worth ₹1,500 Crore with State Bank of India to stay in the air.
• OPEC likely to defer Output Policy decision until June.
• Superior execution powers ABB India, but lofty valuations set the bar high.
• Mahindra Lifespace looks to add strategic investment partners.
• Panel to review if Sun Pharma, Meril Life merit price cap relief.
• Despite shining Steel, Power and Debt to remain drag for JSPL.
• Nestle India unlikely to increase royalty payout beyond 4.5%.
• Grant Thornton identifies Rs 13,000 crore worth irregularities in report on IL&FS.
• Orchid Pharma set for fresh EOIs for resolution plan, Divis and Gland Celsus Bio show interest.
• Govt to set ball rolling for 1 GW Solar Power in NE.
• Helpless Mumbai Port Trust sits on 1,900-acre Prime land.
• DBS Bank floats local arm, aims to triple business.
• GST collection drops to Rs 97,247 Crore in February.
• SEBI board approves lowering of fees, easier norms for startups.

Key Due Dates:

• 07-07-2019 – Deposit of TDS/TCS for the month of June 2019.
• 07-07-2019 -Equalisation levy deposit which is withheld at the time of payment by the service  recipient where the annual payment made to one service provider exceeds Rs.1,00,000 in one  financial year for the specified and notified services.
• 10-07-2019 – GSTR 8 for E-Commerce Companies for the m/o June 2019.
• 10-07-2019 – Filing GSTR-7 (for assessee who is required to deduct TDS under GST) for the m/o June 2019.
• 10-07-2019 – Issue of TDS Certificate for salary for the financial year 2018-19.
• 11-07-2019 – GSTR-1 for the month of June 2019 for taxpayers with Annual Aggregate turnover more than 1.50 Crore.
• 13-07-2019 – GSTR-6 for Input Service Distributor.
• 14-07-2019 – Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o           May’19.
• 15-07- 2019 – Quarterly statement of TCS for the quarter ending 30 June, 2019.
• 15-07-2019- ESI/PF Payment for m/o June 2019.
• 15-07-2019- FLA Report it is required to be submitted directly by all Indian Companies which have received  FDI or made FDI abroad for m/o June 2019.
• 18-07-2019- GSTR-4 Quarterly return for taxpayers opting for composition scheme.
• 20-07-2019 – GSTR-3B for the m/o June 2019.
• 20-07-2019 – GSTR-5 for the m/o June 2019.
• 20-07-2019 – GSTR-5A for the m/o June 2019.
• 25-07-2019-  EPF return filing for the month of June 2019.
• 30 -07-2019 -Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2019.
• 30-07-2019 – Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in     month of June’19.
• 31-07-19 – GSTR-1 for June Quarter applicable for taxpayers with Annual Aggregate turnover upto Rs. 1.50/- Crore.
• 31-07- 2019 – Quarterly statement of TDS for the quarter ending 30 June, 2019.
• 31-07- 2019 – Income Tax return for the F.Y 2018-19 (A.Y 2019-20) for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report u/s 92E.
• 31-07-2019- Payment of Professional Tax and Shop and Establishments taxes.
• 31-07-2019- Form 67 Due date for claimimg Foreign Tax Credit,upload statement of Foreign income offered for tax for previous year 2018-19 and of Foreign tax deducted or paid on such incomes.