Corporate and Professional Updates on 1st March 2019

 

Corporate and Professional Updates on 1st March 2019

Direct Tax Updates:

• Income tax department will issue only e-refunds and that too these will be credited only to bank accounts linked with PAN.
• In addition to that, you are also required to pre-validate your bank account with the income tax department e-filing portal to receive tax refund.
• The income tax refunds will be credited only to bank accounts which are linked to PAN from March 1, 2019. If your PAN is not yet linked with your bank account, you must provide the details of the same to your bank branch to get an income tax refund.
• The finance ministry has asked the direct tax code (DTC) panel to revise the existing income-tax slabs, especially in the 20 per cent bracket. The panel has sought three months to incorporate the suggestions.
• “The current tax rates are ambiguous in nature, especially the lower slabs. As suggested we will work towards harmonising the tax rates, currently prone to interpretation. We will seek more expert voices and weigh the circumstances to incorporate the changes in line with the suggestions we have received,” said the official cited above. Under the current I-T slabs, income up to Rs 2.5 lakh is exempt from tax, those earning up to Rs 5 lakh pay 5 per cent, and those earning up to Rs 10 lakh have to pay 20 per cent tax. Those with income above Rs 10 lakh have to pay 30 per cent tax.
• Those with income up to Rs 5 lakh will not have to pay tax, as they have been given tax credits in the interim Budget passed by Parliament. If various investment schemes are also factored in, those with income up to Rs 10 lakh might also escape the tax net in the next financial year. Sources said with elections round the corner, the government does not want to bring in the long-pending report.

Indirect tax Updates:

• The government has detected GST evasion of Rs.20,000 crore so far this fiscal and will take more steps to check frauds and increase compliance, a senior tax officer said on Wednesday. Central Board of Indirect Taxes and Customs Member John Joseph further said the department would soon call a meeting of the representatives of the real estate sector to understand transition issues faced by the sector post reduction in GST rates. The GST Council earlier this week decided to cut tax rates on under-construction apartments and affordable housing to 5% and 1%.
• The builders will not be able to claim credit for the taxes paid on inputs, like steel, cement. The earlier GST rate on under-construction apartments and affordable housing was 12% and 8% with input tax credit (ITC), respectively. On demand for giving ITC relief to the builders of the under-construction flats which are already built but not yet sold to buyers.
• The recent exemption offered from the goods & services tax levied on development rights, including transferable development rights, development rights certificates and joint development agreements. Realtors’ body, the National Real Estate Development Council, has written to the Ministry of Housing and Urban Affairs seeking clarity.
• The GST Council proposed that intermediate tax on development rights will be exempted only for such residential projects on which GST is payable. The government decided to more than halve the GST rates for under-construction projects to 5% from 12%. The GST Council removed the input tax credit, while GST on affordable housing was reduced to a marginal 1% along with expanding definition of such homes. Ready properties that have received occupancy certificate do not attract GST.

RBI Updates:

• The Reserve Bank of India Tuesday said it would shortly put into circulation new-series Rs 100 denomination bank notes bearing the signature of its Governor Shaktikanta Das.
• The RBI will shortly issue Rs 100 denomination bank notes in Mahatma Gandhi (new) series bearing the signature of Das, the central bank said in a release.
• The design of these notes is similar in all respects to the Rs 100 bank notes in circulation currently.

SEBI Updates:

• The Securities and Exchange Board of India plans to tighten takeover norms applicable to companies undergoing proceedings under the Insolvency and Bankruptcy Code. Sources said the capital markets regulator would do away with the provision that allowed a ‘competent authority’ to exempt an acquirer from the requirement of an open offer. Only a court or a tribunal would be allowed to provide such exemptions, they added.
• Experts said the move was aimed at reducing ambiguity and curbing the misuse of the regulations. While at present the rules allow a “competent authority” to provide an open offer exemption, the regulations have not defined who act as a “competent authority”, leaving it can open for interpretation. Typically, a competent authority can be a sector regulator or ministry.

Key Due Dates:

• Challan-cun Statement in respect to tax Deducted under sec. 194IB for the month of Jan is 2nd March 2019.
• Payment of TDS/TCS collected /deducted in the month of February is 7th February 2019.

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