Income Tax Updates for the Month of November 2019 (Notifications, Circulars and other amendments)

1. Tax deducted u/s 194M (TDS by Individual/HUF) to be deposited within 30 days from the end of the month in which tax deducted

CBDT Notification No.98/2019-Income Tax dated 18-Nov-2019

a) Sec 194M:

  • Applicable w.e.f 01-Sep-2019
  • An Individual/HUF (for whom Sec 194C, 194H & 194J not applicable) shall deduct tax @5% at the time of payment or credit in the books to any resident for;
    • Carrying out any work (including supply of labour for carrying out any work) as per contract
    • Commission (other than insurance commission) or brokerage
    • Fees for professional services
  • Tax has to be deducted only if the aggregate value credited or paid exceeds Rs.50 lakhs during the year.
  • Deductor is not required to obtain TAN

b) Due date & Forms

  • Tax has to be deposited within 30 days from the end of the month in which tax is deducted.
  • Form for deposit of tax – Form No.26QD – Challan-cum-statement
  • TDS certificate – Form No.16D to be issued within 15 days from the due date for furnishing the Form No.26QD

2. While filing TDS returns, banks/post office has to furnish details of cash withdrawals on which tax was not deducted along with reason for the same.

3. CBDT facilitates use of Aadhaar Number in the place of PAN by notifying various forms

CBDT Notification No. 95/2019 dated 06-Nov-2019

CBDT notified various existing forms in which Aadhaar Number can be used in place of PAN. Below are the few notified forms;

  • Form Nos. 3CA, 3CB,3CD – Tax Audit Report
  • Form Nos. 16, 16A, 16B, 16C – TDS Certificates
  • Form Nos. 26Q, 27Q – TDS Returns
  • Form No.15CA – Information for payments to a non-resident
  • Form No.3CEB – Transfer Pricing Report etc.,

4. CBDT designated Special Court (one or more first class magistrate) in the state of Gujarat for the purpose of trail of offences punishable under Chapter XXII (Offences & Prosecutions) of the Act

CBDT Notification No.87/2019-Income Tax dated 05-Nov-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 Gujarat High Court, CBDT has notified Special Court in different areas in the state of Gujarat.

5. CBDT notified International Centre for Research in Agroforestry as approved “Scientific Research Association” for the purpose of deduction u/s 35(1)(ii) from AY 2019-20 onwards- CBDT Notification No. 99/2019-Income Tax dated 27-Nov-2019

6. CBDT notified National Stock Exchange of India Limited as a “Recognized Association” for the purpose of trading in derivatives – CBDT Notification No.100/2019-Income Tax dated 27-Nov-2019

7. CBDT amended Rule 10 of Prohibition of Benami Property Transactions Rules, 2016

CBDT Notification No.101/2019-Income Tax dated 29-Nov-2019

Rule/Section Existing Amendment
Sub-rule (1) of Rule 10 An appeal to the Appellate Tribunal under sub-section (1) of section 46 of the Act** shall be filed in Form No. 3 annexed to these rules. An appeal under sub-section (1) and sub-section (1A) of section 46 of the Act shall be made to the Appellate Tribunal in Form 3 annexed to these rules.
Sub-rule (2) of Rule 10 At the time of filing, every appeal shall be accompanied by a fee of ten thousand rupees. An appeal filed under

i.    Sub-section (1) of section 46 of the Act shall be accompanied by a fee of ten thousand rupees

ii.  sub-section (1A) of section 46 of the Act shall be accompanied by a fee of two thousand rupees

Sub-rule (4) of Rule 10 sub-section (1) sub-section (1) or sub-section (1A)

** Act refers to Prohibition of Benami Property Transactions Act, 1988

8. Income-tax compliance calendar for the month of December, 2019

SI No Due Date Activity
1) 7th December
  • For deposit of TDS/TCS for the month of November, 2019
2) 15th December
  • For payment of Q3 Advance tax for AY 2020-21 (FY 2019-20)
  • For issue of TDS certificate in Form No.16B for tax deducted u/s 194-IA (i.e. TDS on sale of property) in the month of October, 2019
  • For issue of TDS certificate in Form No.16C for tax deducted u/s 194-IB (i.e. TDS on rent) in the month of October, 2019
3) 30th December
  • For deposit of tax deducted u/s 194-IA on sale of property in the month of November, 2019
  • For deposit of tax deducted u/s 194-IB on rent payment by individual in excess of Rs.50K in the month of November, 2019
4) 31st December
  • PAN-Aadhaar Linking

Thank you for the patient reading. Hope this document has added value to your knowledge.

For feedback or comments, please write to jnr@cajvk.in

Disclaimer:

This document had been written to provide updates under Income Tax in a simple manner. The author shall not be responsible for any of the decision made based on the contents of this document.

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