Direct Tax

New E-Filing Portal Of The Income Tax Department To Be Launched On 7 June 2021

[Press release, 5 June 2021]

The income-tax department is launching its new e-filing portal. Some of the highlights of the new portal include

  • Immediate processing of income tax returns to issue quick refunds to taxpayers
  • All interactions and uploads or pending actions will be displayed on a single dashboard
  • Free income tax return preparation software available with interactive questions
  • • The taxpayer can update their profiles, even the details of their incomes, in order to get it pre-filled while preparing the income tax return
  • New call center for taxpayer assistance, user manuals, videos and chatbot shall also be provided
  • The mobile app will also be released subsequent to the initial launch of the portal.

Directorate(Systems) notifies procedure for Compliance Check on Section 206AB/206CCA

[Directorate of Income-tax (Systems) Notification No. 1 of 2021 dated 22 June 2021]

Directorate of Income-tax (Systems) notifies the procedures for sharing of information with tax deductors/ collectors pursuant in the new functionality called "Compliance check for Sections 206AB and 206CCA" to check if the deductee/ collectee is a 'specified person' or not u/s 206AB/206CCA; -Lays down the procedure starting with the registration of tax deductors and collectors on the reporting portal by logging on to their respective e-filing portal and then accessing the compliance check functionality with the help of their respective TAN; Apprises about the two search modes available to the users, i.e., 'PAN search mode' and 'Bulk search' mode; Informs about the availability of Reference Guide on Compliance Check and FAQs, under 'Resources' section of Reporting Portal for any kind of assistance; Also provides a toll-free number 18001034215 for seeking assistance from the Customer Care Team.

Guidelines For Compulsory Selection Of Returns For Complete Scrutiny During FY 2021-22

[Circular 225/61/2021/ITA-II, 10 June 2021]

The parameters for compulsory selection of returns for complete scrutiny include:

  • Cases pertaining to survey u/s
  • Search and seizure cases
  • Cases in which notices u/s 142(1), calling for the return, have been issued
  • Cases in which notices u/s 148, have been issued
  • Cases related to registration or approval under various sections such as 12A, 35(1)(ii)/(iia)/(iii), 10(23C), etc.

Extension Of Time Limits Of Certain Compliances To Provide Relief To Taxpayers In View Of Severe Pandemic

[Circular no. 9, 20 May 2021]

The due dates for filing of SFT forms, SRA form, TDS returns of Q4 have been extended to 30 June 2021. The date for furnishing audit reports has also been moved up to 30 September 2021. As for the income tax returns, the due dates have been extended to 30 September, 31 October, 30 November and 31 December 2021.

Amendment In Rule 31A, Form 26A, Form 26Q, Form 27EQ And Form 27Q

[Notification no. 71/2021, 8 June 2021]

The Finance Act recently introduced a few new provisions under the tax deduction and/or collection. These new provisions require to deducted or collect tax on purchase or sale of goods. Also, for all TDS-related sections, another new Section 206AB has been introduced in order to deduct taxes at a higher for non-filers of income tax returns. In order to incorporate all these changes in TDS returns and the Sections, the CBDT has issued a notification update on all the relevant sections, rules and forms.

Indirect Tax

Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices

[Circular no. 156/12/2021-GST dated 21 June 2021]

The government has issued a Circular clarifying certain aspects in relation to the Dynamic QR code [key clarifications captured below]:

  • Invoices issued to a person having a Unique Identify Number under the CGST Act are required to have a Dynamic QR Code, as such invoices shall be considered to have been issued for a B2C supply;
  • Since UPI ID is linked to the bank account of the payee/person collecting the money, no separate bank account and IFSC details are to be provided in the Dynamic QR Code;
  • In the case of supply of services, when an invoice is issued to a recipient located outside India, and the place of supply of services is in India, and for which the payment is received in foreign currency through RBI approved mediums, such invoices may be issued without a Dynamic QR Code.
  • When the part payment for any supply has already been received from the customer, in the form of either advance or any adjustments, then the Dynamic QR code may provide only the remaining amount payable by the customer against invoice value. The details of total invoice value, along with details/ cross-reference of the part-payment/ advance/ adjustment done, and the remaining amount to be paid, should be provided on the invoice.

Recommendations made in the 44th GST Council Meeting

[Notification No. 5/2021-Central Tax (Rate) dated 14 June 2021]

In the 44th GST Council Meeting held on 12 June 2021, based on the report submitted by the Group of Ministers (GoM), it was decided to reduce GST rates on key medical supplies. The key items on which rates have been reduced are captured below:

Description GST(%)
Old rate Revised Rate
Remdesivr 12% 5%
Amphotericin B 5% Nil
Oxygen Concentrator/ Generator, including personal imports thereof 12% 5%
High flow nasal canula device 12% 5%
Ventilators 12% 5%
COVID-19 Testing Kits 12% 5%
Hand Sanitizer 18% 5%

Regulatory Updates

Securities Law and Compliances Corner

Automation of Continual Disclosures under Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015

In furtherance of its circular dated 9 September 2020, prescribing implementation of system-driven disclosures under SEBI (Prohibition of Insider Trading) Regulations, 2015 for member(s) of promoter group and designated person(s) in addition to the promoter(s) and director(s) of companies, SEBI has issued a Circular on 16 June 2021 to include the listed debt securities of equity listed companies under the purview of the said system-driven disclosures for the entities mentioned above.

Relaxation in compliance with requirements pertaining to AIFs and VCFs

SEBI vide its circular SEBI/HO/IMD/ IMD-I/DOF6/CIR/2021/568 dated 31 May 2021 has extended the due dates for regulatory filings by Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs), during the period ending March 2021 to July 2021 as prescribed under SEBI (Alternative Investment Funds) Regulations, 2012 and circulars issued thereunder. AIFs and VCFs are allowed to submit regulatory filings/disclosures for the aforesaid periods, as applicable, on or before 30 September 2021.

Companies Act, 2013

During the period under review, the Ministry of Corporate Affairs (MCA) has effected the following key changes:

Matters that can be dealt with through video conferencing

[Notification dated 15 June 2021]

MCA has made an amendment to the Companies (Meeting of Board and its Powers) Rules, 2014, pursuant to which now, inter alai, the following matters can be dealt with through video conferencing:

  • The approval of the Annual Financial Statements;
  • The approval of the Board's report.

Clarification on the passing of ordinary and special resolutions by companies under the Companies Act, 2013

[General Circular 10/2021 dated 23 June 2021]

Pursuant to said circular, MCA has extended the time to allow companies to conduct their extra-ordinary general meetings through video conferencing or other audio-visual means or transact items through postal ballot till 31 December 2021 in accordance with the framework provided by MCA in its circulars issued previously on the subject matter.

Companies (Accounting Standards) Rules, 2021

[Notified on 23 June 2021]

The said Rules provide the following:

  • accounting standards to be followed by Small and Medium Sized Company (SMC);
  • defines SMC;
  • clarifies that, a company shall qualify as a SMC, if the conditions mentioned therein are satisfied as at the end of the relevant accounting period;
  • specifies Accounting Standards 1 to 5, 7 and 9 to 29 as recommended by the Institute of Chartered Accountants of India to be followed by SMC;
  • prescribes that a company that becomes a SMC shall qualify for exemption or relaxation only if it remains a SMC for two consecutive accounting periods.