Discover the colorful updates in GST & Income Tax this Holi! From GST Amnesty schemes to new tax regimes, understand the hues of joy & worry for taxpayers.
Arjuna (Fictional Character): Krishna, Holi is the festival of colors. It signifies the triumph of good over evil. On occasion of Holi, which colors have the government brought in GST and Income Tax?
Krishna (Fictional Character): Arjuna, every year, Holi is played with lots of colors and zest. This Holi, the Government has mixed various colors and spread happiness, as well as brought worries to the taxpayer. Arjuna (Fictional Character): Krishna, Pink color is considered as a mark of joy and happiness. What changes are brought by the Government similar to Pink color?
Krishna (Fictional Character): Arjuna, Government has proposed the GST Amnesty scheme in the 49th GST council meeting which has brought joy and happiness among the taxpayers for the cases :
1. Where the application for revocation has not been made earlier within prescribed period.
2. Where the assessment order has been issued but the return has not been filed within 30 days of order. This amnesty scheme will be available if the return is filed along with Interest and Late Fees for which the Assessment order is issued irrespective of the fact whether the appeal has been filed or decided.
3. In respect of filing pending returns in Form GSTR-4, GSTR-9, GSTR-10 by way of conditional waiver / reduction of Late Fees.
Arjuna (Fictional Character): Krishna, Is new tax regime a YELLOW signal for taxpayers in Income Tax?
Krishna (Fictional Character): Arjuna, Yellow is the colour of happiness, mind and intellect. The Taxpayers should calculate their tax liability under the old tax regime and new tax regime and select the appropriate option which results in minimum tax liability. In the new scheme the rate of tax is less as compared to old scheme of taxation but the catch here is, cannot claim various deductions such as Interest paid on Housing Loans, LIC Premium Paid, PPF Contribution etc. which were allowed under the old scheme of taxation.
Arjuna (Fictional Character): Krishna, what does RED color denotes in Income tax ?
Krishna (Fictional Character): Arjuna, Red color signifies danger, fear and difficulty. It is now mandatory for suppliers to make payment of MSME within prescribed time. The government has proposed to add a new clause to section 43B which will allow deductions of payment to MSME only if payment is made within the timeline specified in MSMED
Act. Also, proviso to the 43B which states payment can be made till filing of income tax return does not apply to this provision.
Arjuna (Fictional Character): Krishna, which color of Income Tax is irremovable i.e. varnish?
Krishna (Fictional Character): Arjuna, Many amendments have been made in the Income Tax Act in relation to provisions applicable to Charitable and Religious Trusts . Government is trying to regulate the Trust sector as there is more tax evasion in this sector.
Arjuna (Fictional Character): Krishna, How will be Holi for GST taxpayers?
Krishna (Fictional Character): Arjuna, The government has introduced Sec16(2)(aa) where the taxpayer can claim ITC in GSTR-3B only if it is reflected in GSTR-2B. The taxpayers are worried in the same way as people gets worried when someone throws water balloon on them.
Arjuna (Fictional Character): Krishna, what can the taxpayer learn from Multicolored GST and Income Tax?
Krishna (Fictional Character): Arjuna, In Income tax and GST, taxpayer should disclose his true income and accordingly should pay tax and file return. White color signifies purity, cleanliness and truth. Taxpayer looks good in white color only. But due to black money it is difficult to find white taxpayer.
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