CBDT amended Form No. 10DA to be obtained from CA for claiming deduction towards
Additional employee cost u/s 80JJAA– CBDT Notification No. 104/2019 dated 18-Dec-2019
a) Sec 80JJAA:
Additional deduction for cost in respect of employment of new employees
|1.||Eligible Assessee||Gross total income includes income from PGBP & subject to tax audit u/s 44AB|
|2.||Amount of deduction||30% of additional employee cost for each year for a period of 3 years from the year in which it is incurred (For e.g. additional employee cost for FY 2018-19 is Rs.20 lacs. Deduction for FY 2018-19 – Rs.6 lacs, FY 2019-20 – Rs.6 lacs & FY 2020-21- Rs.6 lacs)|
|4.||Additional employee cost (in the case of existing business)||Total emoluments paid/payable to additional employees employed during the year|
|5.||Additional employee (in the first year of a new business)||Total emoluments paid/payable to employees employed during the year|
|6.||Emoluments||Any sum paid/payable to an employee for employment but does not include;
Any contribution to pension / provident / any other fund for the benefit of employee under any law
Any lump-sum payment at the time of termination of his service / superannuation / voluntary retirement such as gratuity, leave encashment, voluntary retrenchment benefits etc.,
|7.||Deduction in respect of employees employed during the year for less than 240/150 days but is employed for 240/150 days in the next year||These employees shall be deemed to be employed in the next year and the provisions of this section apply accordingly|
b) Changes made in the amended Form No. 10DA
Amended form takes in to consideration the below aspects which was not covered by old form;
2. Certain additional electronic modes were prescribed by CBDT which are mandatorily to be facilitated by persons having business turnover of more than Rs.50 crore for accepting payments– CBDT Notification No. 105/2019 dated 30-Dec-2019
Sec 269SU – Acceptance of payments through prescribed electronic modes
To promote digital economy and move towards a less-cash economy, a new section – 269SU was inserted vide Finance Act 2019 w.e.f. 01-Nov-2019
|1.||Provision (Sec 269SU)||Specified person shall mandatorily provide facilities for accepting payments through the prescribed electronic modes, in addition to other electronic modes|
|2.||Specified Person||Every person having a business turnover of more than Rs.50 crore during the preceding previous year (For e.g. turnover during the FY 2019-20 > Rs.50 crores, during the FY 2020-21 this section applicable)|
|3.||Prescribed electronic modes (Rule 119AA – Inserted
|4.||Non-compliance (i.e. fails to provide facilities for accepting payments through prescribed electronic modes)||Liable to pay penalty of Rs.5K for every day of such failure. However, such penalty will not be applicable if there are good and sufficient reasons for such failure.|
|5.||Effective date for providing facilities for accepting
payments through prescribed electronic modes
3. CBDT further extended the due date for linking of Aadhaar with PAN from 31-Dec-2019 to 31-Mar-2020- CBDT Notification No. 107/2019 dated 30-Dec-2019
4. National e-assessment centre has extended the time limit till 10-Jan-2020 for filing of response to notices issued u/s 142(1) up to 24-Dec-2019 under E-assessment Scheme, 2019
5. CBDT extended the due date for deposit of tax deducted u/s 194M (cash withdrawals) for the months of October & November, 2019 to 31-Dec-2019- CBDT Circular No. 31/2019 dated 19-Dec-2019
6. CBDT extended the due date for filing of income tax returns/tax audit reports for the AY 2019-20 till 31-Jan-2020 for all categories of income-tax assessees in the Union Territory of Jammu and Kashmir and Union Territory of Ladakh- Order u/s 119 No.F.No. 225/306/2019-ITA-II dated 24-Dec-2019
7. CBDT extended due date till 31-Jan-2020 for payment of tax, surcharge and penalty payable on undisclosed income declared under Income Declaration Scheme, 2016 – CBDT Notification No. 103/2019 dated 13-Dec-2019
Persons who declared undisclosed income as per Income Declaration Scheme, 2016 and have not made payment of tax, surcharge and penalty on such income, can make such payment on or before 31-Jan-2020 along with 1% interest for every month or part of the month.
8. CBDT released draft Form No. 15E (relating to application to A.O for determining the amount chargeable to tax out of total sum payable to non-resident u/s 195(2)) for public comments/suggestions – Office Memorandum No. F.No.370142/24/2019-TPL dated 31-Dec-2019
(1) In respect of payment of any sum chargeable to tax in India in the hands of non-resident, payer shall deduct tax at the time of credit or payment, whichever is earlier, as per applicable rates.
(2) However, if payer considers that the whole of such sum is not chargeable to tax, he may make an application to A.O to determine the appropriate portion of such sum so chargeable (e. Lower/Nil withholding tax certificate) and on the same tax shall be deducted.
(3) An amendment was made by Finance Act 2019 to provide for online application (earliest it was manual) in the prescribed form and manner.
(4) On dated 31-Dec-2019, CBDT released draft Form No.15E for public consultation. The comments/suggestions may be sent in word format through email to firstname.lastname@example.org on or before 15-Jan-2019.
9. CBDT designated Special Court (one or more first class magistrate) in the state of Himachal Pradesh for the purpose of trail of offences punishable under Chapter XXII (Offences & Prosecutions) of the Act and Sec 84 of Black Money (undisclosed Foreign Income & Assets) and Imposition of Tax Act, 2015- CBDT Notification No. 102/2019 dated 04-Dec-2019
The Central Government may designate one or more first class magistrate courts as Special Court in consultation with the chief Justice of the High Court for trail of offences punishable under Chapter XXII of the Income Tax Act, 1961.
Some of the offences punishable under Chapter XXII (Offences & Prosecutions) are mentioned below:
> Fails to pay TDS to the Central Government (CG) under the provisions of Chapter XVIIB
> Fails to pay TCS to the CG
> Fails to pay Dividend Distribution Tax (DDT)
> Fails to facilitate to inspect the books of account/other documents to the authorized officer u/s 132(1)(iib) – Search & Seizure
After consultation by CG with the Chief Justice of the Himachal Pradesh High Court, CBDT has notified Special Court in different areas in the state of Himachal Pradesh.
10. Income-tax compliance calendar for the month of January, 2020
|SI No||Due Date||Activity|
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