ITR Filing Mandatory in some cases- New Amendment in Income Tax Rules

Now, vide Notification No. 37/2022, Dated 21-April-2022, CBDT has notified a new Rule 12AB which prescribes additional conditions which mandate the filing of Income-tax returns despite the fact that income is below the basic exemption limit.

In the Income-tax Rules, 1962, after rule 12AA, the following rule shall be inserted, namely:-

12AB. Conditions for furnishing return of income by persons referred to in clause (b) of sub-section (1) of section 139.– 

The conditions for furnishing return of income in respect of persons referred to in clause (b) of sub-section (1) of section 139 in terms of clause (iv) of the seventh proviso to sub-section (1) of section 139 shall be the following, namely: -

(i) if his total sales, turnover or gross receipts, as the case may be, in the business exceeds sixty lakh 

rupees during the previous year; or

(ii) if his total gross receipts in profession exceeds ten lakh rupees during the previous year; or

(iii) if the aggregate of tax deducted at source and tax collected at source during the previous year, in the case of the person, is twenty-five thousand rupees or more*; or

(iv) the deposit in one or more savings bank account of the person, in aggregate, is rupees fifty lakh or more during the previous year:

(*For Point No-(iii) = However, the limit of TDS + TCS has been kept at Rs 50,000 for taxpayers who are 60 years or more.)

Download : Notification No. 37/2022

GST ITC from Jan-2022 Onwards

From January 2022 input tax credit ITC available only upto what is reflected in GSTR-2B

Here is the flowchart what to add + and what to less - from GSTR-2B to arrive at "ITC to be claimed" in GSTR-3B

It is recommended that reconciliation of ITC as per books and GSTR-2B should be done monthly basis,  to keep track of ITC mismatch

+ Download GSTR-2B form
(Generally it is available in the afternoon of 14th of every month)

- Remove ineligible ITC from GSTR-2B form
(Such a motor car, food, health insurance, gift, capital expense relating to immovable property etc)

- Remove ITC claimed in earlier period from GSTR-2B
(Example invoice dated 10-12-2021  ITC taken in GSTR-3B of Dec-21, however supplier disclosed same ITC  recently  and appearing in GSTR-2B of Jan-22)

- Remove goods received in next month from GSTR-2B form
(Example invoice date 30-01-2022 and also appearing in GSTR-2B of Jan-22 , however goods are received from company 5th Feb 2022 , this ITC is to be claimed in GSTR-3B of Feb 2022)

- Remove ITC not relating to your business from GSTR-2B form
(Example A solds goods to B, but in GSTR-1 shown GSTIN of D , Here D needs to be remove ITC from is GSTR-2B)

+ Add import ITC to be Taken based on bill of entries from GSTR-2B form
(Example in Jan 2022, 3 bill of entries are filled by company, However in GSTR-2B of Jan only 1 bill of entries is reflecting, company can claim ITC of remaining 2 bill of entries too in Jan 2022, even though it is not reflecting in GSTR-2B)

+ Add pending ITC from GSTR-2B form
(Example invoice date 10-11-20 21 supplier filled his GST-R1 & GSTR-3B within due date, However buyer has not taken ITC in Nov / Dec yet, same can be now taken in Jan 2022)

Happy reconciling.

Important Changes in GST w.e.f. 01st January 2022

It is to inform you that from 1st January 2022, there is no scope for any errors while filing GST Returns.

1. Notification of provisions on recovery of "Self-Assessed Tax".

-The GSTR-1 cannot be filed, if the previous period GSTR-3B is not filed.

-The Tax Liability declared in GSTR-1 should be paid in GSTR-3B.

-The difference between the tax liability of GSTR-1 and GSTR-3B is considered as self assessed tax.

-The GST officer need not issue show cause notice for recovery of the taxes.

-Such amount can be collected directly by attaching the bank account if required.

-If you do not file GSTR-3B of the previous period the GSTR-1 also can't be filed.

-By mistake if you have declared more tax liability in your GSTR-1 , you have no choice but to pay this extra liability, (See last para below for some relief). 

2. GST ITC Credit available when reflected in GSTR-2B

-The ITC (which is the option to reduce your tax payment by cash) is as per GSTR-2B.

-If your supplier does not furnish GSTR-1 on time you cannot avail the credit of ITC in GSTR - 3B.

-If you do not file the GSTR-1 on time your supplier cannot get the ITC.

-By mistake, your supplier has mentioned the wrong date, GSTIN or wrongly mentioned as B2C instead B2B, you lose the ITC and you have to pay cash while filing GSTR-3B.

3.Suggestions to Accounts Department.

-The only option is to streamline the system of maintaining of Accounts and filing of GST returns perfectly and in time.

-Proper care should be taken to ensure correct Accounting Entries are done in the accounting system.

-There should be a proper review mechanism for cross checking the information.

-The GST return should flow ideally from the accounting system (after proper review).

-Sufficient funds should be available to make timely payment of GST.

-There is no escape from the system.

-Not only you should ensure such compliance, but your supplier should also ensure such compliance.

-Hence pass on this message to your supplier as well,



Note - However, if there is incorrect data entry in GSTR-1, I think then you need to write a letter to the Department informing the same to them to ensure that no action is taken. The same should be amended in the next GSTR-1.

TDS RATE CHART FY: 2021-22 (AY: 2022-23)

Section	Nature of Payment	Threshold	Indv/ HUF	Others
		Rs.	TDS Rate (%)
192	Salaries	–	Avg	–
192A	Premature withdrawal from EPF	50,000	10%	–
193	Interest on Securities	10,000	10%	10%
194	Dividends	5,000	10%	10%
194A	Interest (Banks)	40,000	10%	10%
194A	Interest (Others)	5,000	10%	10%
194A	Senior Citizen	50,000	10%	–
194B	Winning from Lotteries	10,000	30%	30%
194BB	Winnings from Horse Race	10,000	30%	30%
194C	Contractor – Single Transaction	30,000	1%	2%
194C	Contractor – During the F.Y.	1,00,000	1%	2%
194C	Transporter (44AE) declaration with PAN	–	–	–
194D	Insurance Commission (15G-15H allowed)	15,000	5%	10%
194DA	Life insurance Policy	1,00,000	1%	1%
194E	Non-Resident Sportsmen or Sports Association	–	20%	20%
194EE	NSS	2,500	10%	10%
194F	Repurchase Units by MFs	–	20%	20%
194G	Commission – Lottery	15,000	5%	5%
194H	Commission / Brokerage	15,000	5%	5%
194I(a)	Rent of Plant / Machinery / Equipment	2,40,000	2%	2%
194I(b)	Rent of Land Building & Furniture	2,40,000	10%	10%
194IA	Transfer of certain immovable property other than agriculture land	50,00,000	1%	1%
194IB	Rent by Individual / HUF (wef 01.06.2017)	50,000/PM	5%	–
194IC	Payment under Specified agreement applicable for F.Y: 2017-18 onwards	–	10%	10%
194J (a)	Fees-tech srvcs, call centre, royalty for sale etc.	30,000	2%	2%
194J (b)	Fee for professional service or royalty etc.	30,000	10%	10%
194K	Payment of dividend by mutual Funds	5,000	10%	10%
194LA	Compensation on transfer of certain immovable property other than agriculture land	2,50,000	10%	10%
194LA	Immovable Property (TDS exempted under RFCTLARR Act (wef 01.04.2017)	–	–	–
194LB	Income by way of interest from infrastructure debt fund(non-resident)	–	5%	5%
194LBA	Certain income from units of a business trust (applicable from 01.10.2014)	–	10%	10%
194LBA	Certain income from units of a business trust to non-resident (applicable from 01.10.2014)	–	5%	5%
194LBB	Income in respect of investment of investment fund	–	10% for residents, 30% for non-residents	10% for residents, 40% for non-residents
194LBC	Income in respect of investment in securitization trust	–	30% for residents, 40% for non-residents, 25% for individual & HUF	30% for residents, 40% for non-residents, 25% for individual & HUF
194LC	Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan/long term infrastructure bond ‘from outside India (applicable from July 1, 2012)	–	5%	5%
194LD	Interest on certain bonds and Govt. Securities (from 01.06.2013)		5%	5%
194M	Payment to commission, brokerage etc. by individual & HUF	50,00,000	5%	5%
194N	Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society (wef 01.09.2019)	1,00,00,000	2%	2%
194Q	TDS on e-commerce participants	5,00,000	1% (01.10.2020)	1% (01.10.2020)
Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)
Note: The above list covers most of the sections applicable for domestic transactions updated on 07.04.2021