The scheme Maharashtra Settlement of Arrears of Tax, interest, penalty or late fee scheme 2022
Amnesty Scheme

The scheme Maharashtra Settlement of Arrears of Tax, interest, penalty or late fee scheme 2022

The Government of Maharashtra on 11th of March 2022 has announced “the Amnesty Scheme 2022” to settle the various Old cases of Sales Tax Department. Maharashtra Deputy Chief Minister, Mr. Ajit Pawar announces Amesty Scheme for Sales Tax Matters on 11th March, 2022. The due date for settlement of Sales Tax Cases will be applicable from April 1st, 2022 to September 30th, 2022.

The State Government has notified the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Scheme, 2022.

The State Government is of the view that since the past two years, the whole world has been suffering from pandemic that has effected the business and entrepreneurs so hard that many business is closed forever. Pandemic has had an adverse effect on economic growth of our Country. In order to provide relief to the industry and business sector, The Amnesty Scheme, 2022 on various taxes levied by the Sales Tax Department before the introduction of the Goods and Services Tax (GST Act, 2017) is introduced.

The Amnesty scheme, 2022 is applicable to all the pending dues for the periods up to 31/06/2017 i.e. before introduction of GST Act, 2017. In opt in for this scheme, the appeal filed by the dealers up till 31st March, 2022 will have to be withdrawn unconditionally.

The Amnesty Scheme, 2022 provided relief to dealers in two parts i.e.

  1. Arrears up to INR 10.000 or less per year as per any statutory order passed under the various tax laws implemented by the department are waived off completely. As a result, small dealers will be benefited in almost 1 lakh cases.

  • Dealers having arrears as on the 1st April, 2022 up to INR 10 lakhs or less as will have the option to pay a lump sum amount of 20% of the total arrears. Waiver will be granted to the remaining 80% of the arrears. As a result medium dealers will benefit in almost 2.20 lakh cases.

  • Other Dealers having Sales Tax dues above INR 10 lakhs or above who would not opt for lumpsum option will have to pay 100% of the undisputed tax, 30% of the disputed tax, 10% of the interest and 5% of the penalty for the periods up to 31st March 2005. For the periods from 1st April 2005 to 30th June 2017, this proportion would be 50% of the disputed tax, 15% of the interest and 5% of the penalty. Upon payment as per the aforesaid proportions. the balance arrears shall be waived.

In order to avail the benefits of this Amnesty Scheme, 2022, Dealer has to pay the required amount at one time within the stipulated time period mentioned above. However, the dealers having arrears of more than Rs. 50 lakhs have been provided an option to pay the requisite arrears in Instalments.

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Advance Tax Installment for the FY 2021-22

Last or you can say the fourth advance tax installment is due on 15th March 2022, for the FY 2021-22 & by this date, the Taxpayers need to pay 100% of their advance tax liability. Failure to pay before time may attract penal Interest.

In this article, we will cover all the provisions you need to know about Advance Tax :

Who Needs to Pay Advance Tax Installment?

If the Tax amount for the particular financial year is greater than INR 10,000/- then, the provisions of Advance Tax are applicable to you. For computing Advance Tax, one needs to include All the incomes earned till the date of computation of advance tax & also these incomes which are certain as Income to the person during the financial year are considered on an estimated basis for the computation & payment of advance tax.

However, there are certain exemptions which are as follows:

  1. Senior Citizen is exempt from paying Advance Tax subject to the following two conditions:
  2. They should be a Resident Individual, and
  3. They should not have any income from Business & Profession.

So, Any person who is a senior citizen i.e. an individual of age 60 years or above, and satisfies both the above-mentioned conditions need not pay Advance Tax Installments

  1. Salaried Employee is exempt from paying Advance Tax subject to the following two conditions:
  2. No Other Source of Income, and
  3. Employers deduct tax at source before paying salary and deposit it with the Income Tax department.

But, if the Assessee, also have Income from other sources like rent from a property or capital gain or interest from bank deposit and etc, etc which is not informed to the Employer, then the Assessee needs to pay the total tax liability if the income from other sources increases from Rs 10,000 a year.

What is the Due Date for Payment of Advance Tax?

What is the Due Date for Payment of Advance Tax?

The following is the due date for payment of Advance Tax for the FY 2021-22 (AY 2022-23) for both corporate as well as non-corporate Assessee :

Installment

Due Date

Percentage of Tax to be Paid

1

15-06-2021

15%

2

15-09-2021

45%

3

15-12-2021

75%

4

15-03-2022

100%

The percentage mentioned in the third column is the percentage of Tax Liability.

Business or Profession Assessee having income under the presumptive income scheme u/s 44AD or 44ADA also have to pay the whole amount of the advance tax by the 15th March of the Year. However, here the exemption is that any amount deposited till 31st March of the FY is also treated as advance tax of that financial year. 

The process to Pay Advance Tax?

  1. Online Procedure
  2. Login to the income tax website “incometax.gov.in
  3. Click on the “e-pay Tax” tab
  4. Now, you will be redirected to NSDL Website
  5. To pay advance tax, select “Challan 280”
  6. Fill in the required details
  7. Choose the “Netbanking” option to pay online
  8. After successful payment, a challan will be displayed which will contain the information number and payment details.
  9. Challan is proof of the payment that has been done
  10. Offline Procedure

The Assessee needs to visit the designated bank branch and fill the challan form as per Challan 280 Format and then pay the taxes.

Consequences for Late Payment of Advance Tax?

The Assessee is liable to pay advance tax before the end of the financial year in four installments as mentioned in the above table. If the Assessee fails to pay the advance tax according to the table mentioned above, then the Assessee needs to pay interest on the late payment. The interest payable can be rounded off to the nearest hundreds.

This interest on late payment of Advance Tax falls under Two Sections :

  1. Section 234C
  2. Section 234B

After the payment, if there is a change in income computed at the time of paying Advance Tax,  then you can update the revenue of advance tax in the next installments as per the new liability estimate.

If you are liable to pay Advance tax and have not yet paid, do it asap before the last date. Please note the last date to pay the fourth Instalment of Advance Tax is 15-03-2022. You can also contact us to computing your Advance Tax Liability and related consultancy.

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Form 15CA & 15CB Submission Process: New Re-engineered Form
Form 15CA & 15CB Submission Process: New Re-engineered Form

Form 15CA & 15CB Submission Process: New Re-engineered Form

Income-tax Department has introduced a completely new re-engineered Form 15CA and Form 15CB submission process based on various feedbacks provided by numerous corporates and professionals all over India. These transformations will simplify the preparation, assignment, submission, and verification process involved in the entire filing cycle of the Form.

The major key transformations are:

 (a) Taxpayers are no more required to assign the same CA for multiple 15CA/CB submission in a year. Appointment of CA for Form 15CB is a one-time activity for a particular Financial Year.

(b) Once Single Assignment is done in the year, a CA can initiate Form 15CB for a particular Remittee & Remitter without requiring the taxpayer to fill Part-C of Form 15CA and assigning it to CA during the entire year. The earlier practice of multiple acceptance/rejection for every form is removed simplifying the entire process.

(c) The CA can now access Form 15CB from File Income Tax Forms functionality for filing instead of Worklist For your Action.

(d) Offline/Bulk Mode of submission process is enabled since 4th Oct. The taxpayer can generate XML files using the Java based Offline Utility. The Offline Utilities are available on the portal in the “Download” section under “Income-tax Forms” page and upload the same in the portal for onward filings. The new online process will follow soon on the portal.

Forms under Drafts or Worklists pending acceptance or filing till 3rd October, which could not be filed under the earlier process cant be filed now. Request you to fill them using offline Utility as per the new process and upload afresh. Please be informed, the functionality is not to be used to upload forms which were submitted manually as per Department Circular.

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Tax Savings Advices For a Businessman or an Entrepreneur :
how to save tax | Tax Savings Advices for a Businessman or an Entrepreneur

Tax Savings Advices For a Businessman or an Entrepreneur :

Confused about how to save tax in India? Running a Business in India is a cumbersome job. You are burden with a lot of Taxes for operating your Business in India. Whether it’s a small business,  the person ends up paying a huge amount as GST or Income Tax or PF or ESIC, etc, etc. and the never-ending list goes on & on. But with proper planning, an entrepreneur can optimize tax payments. So here are a couple of things an entrepreneur can adopt to do Tax Savings.

1. UTILITIES ON HOW TO SAVE TAX: 

Are you worried about how to save taxes? Various utility expenses such as vehicles expenses or telephone Expenses are allowable business expenses provided it’s for business purposes. Also, parking charges for vehicles, driver’s salary, etc, can be definitely claimed.

A vital point that many entrepreneurs miss out on is that preliminary expenses in setting up the business is an allowable business expenditure and can be claimed u/s 35D of the Income Tax Act, 1961. They are deductible from the taxable income for a period of five financial years.

Another expense would be If you are running your business from home, then electricity expenses, Internet charges, landline charges also can be claimed. One needs to proportionately decide what was towards business and what was personal which we suppose can be done easily at a justifiable rate. 

2. INSURANCE:

Health Insurance premiums commonly known as Mediclaim are allowed as a deduction u/s 80D of the IT Act,1961 up to Rs 25,000/- this also includes the Preventive Health Checkup. If you cover your parents as well then the deduction amount also increases. Also if he invests in ELSS of Mutual Funds, a further deduction u/s 80C up to Rs 1,50,000/- is allowed.

In case your spouse has exhausted their deduction limit for Insurance, you can claim the remaining amount, provided the premium amount was originally paid from a joint account of your both. You can always consult your tax consultant for this before payment of Medical.

3. MARKETING :

Marketing is one of the most important tools that is not used by a business as they operate under the assumption that once they get some revenue then they will make a budget for Marketing, This is a huge mistake done by every 7 startups out of 10. Any marketing expense done for business purposes is an absolutely allowable expense and can be claimed to reduce the tax liability. To start marketing your Business to get the dual benefits i.e how to save tax and Revenue Source.

4. Donation :

Donation not only serves as a good deed that you do for society at large but also has tax benefits that reduce your tax liability. Donations paid are an allowed deduction u/s 80G help you claim only 50% of the amount made as a donation. If you want to know how to save tax and claim 100% of the donation amount, one might donate to the PM Relief Fund or any CM Relief Funds.

 5. HOUSING LOAN :

Lastly, If the entrepreneur has a Housing loan, the interest amount can be claimed as a deduction under the head “Income from House Property” and the Principal can be claimed u/s 80C subject to the limit of Rs 1,50,000/-

In this way, among others, an entrepreneur can legally save his taxes to help his business. As there are several provisions of how to save tax, it is only wise to make use of them to the maximum. For implementations of these tax savings methods legally and professionally an entrepreneur can always rely on a credible tax and bookkeeping services provider or a Tax Consultant or a Chartered Accountant to assist with tax planning.

The information on how to save tax provided in the Taxzona Blog does not constitute any legal, tax, or financial advice. It does not take into account your particular circumstances, objectives, legal and financial situation, or needs.  Before acting on any information in the Taxzona Blog you should consider the appropriateness of the information for your situation in consultation with a professional advisor of your choosing.

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