New Year, New Tax

As the financial year (FY 2019-20) ends on 31 March 2021, we move into FY 2021-22.

Here's some of the new tax items to keep in mind as we end FY 2020-21 and start the next financial year:

Income Tax

• Link PAN and Aadhar If PAN is not linked with Aadhaar by 31 March 2021, it shall remain inoperative until it is linked to Aadhar. Inoperative PAN means TDS will be  deducted at higher rates, ITR cannot be filed and penalty of INR 10,000 may be imposed.
  

• File ITR for FY 2019-20 31 March 2021 is the last date to file a revised or belated return for FY 2019-20 Late fees may apply on belated returns.
  

• Last date for investments - FY 2020-21 31 March 2021 is the last date to make tax saving investments under Section 80C, 80D, etc.
  

• Last Date for TDS returns 31 March 2021 is the last date for filing Q1 and Q2 TDS returns for FY 2020-21 (without payment of late fees)
  

• TDS on purchases With effect from 1 July 2021, TDS at 1% will be deducted on purchases of more than INR 50 lakh (if turnover in FY 2020-21 exceeds INR 10 crore).
  

• Registration for Charitable Trusts/ Institutions Charitable Institutions/Trusts already registered with Income Tax Department may have to re-register themselves in FY 2021-22.
  

• Tax Audit limit increased Income Tax Audit will not be required for persons having turnover up to INR 10 Crores if Cash Component does not exceed 5% of total Receipts/Payments. Payments received or made by cheque other than Account Payee Cheques will be counted as cash component.
  

• Reduction in time for filing revised/ belated ITR Starting next year, revised/ belated ITR can be filed only till 31 December. That means for FY 2020-21, belated ITR can be filed only till 31 December 2021.

GST

• File Fresh LUT An LUT allows you to export without paying tax. Read on LUT here. Existing LUTs expire on 31 March 2021. Don't forget to file a new LUT for FY 2021-22
  

• Opt in or opt out of Quarterly Return (QRMP) scheme You can opt in or opt out of QRMP scheme for Q1 FY 2021-22 by 30 April 2021
  

• GST Audit and Annual Return: 31 March 2021 is the last date for GST Audit and filling Annual Return of 2019-20. GST audit has been scrapped going forward.
  

• Opt for Composition Scheme You can opt for the Composition Scheme by filling Form CMP 02 by 31 March 2021
  

• QR Code mandatory QR code for B2C transactions for dealers having turnover more than 500  Cr in any preceding  year is mandatory from 1 April 2021
  

• E-invoicing now mandatory E-invoicing is now mandatory for dealers with annual turnover of over INR 50 crore. Those buying from such dealers without e-invoice will loose Input Tax Credit on said purchases.
  

• HSN Codes mandatory Till now HSN code was not mandatory for dealers up to INR 1.5 crore. From 1 April 2021, 4 digit HSN code is mandatory for dealers having Turnover up to INR 5 crore for B2B transactions. 6 digit HSN code is mandatory for those above INR 5 crore in turnover. Export invoices are required to have 8 digit HSN code in line with requirement of Foreign Trade Policy. Not following the new HSN rules may result in a penalty of INR 50,000

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