As per the provisions of the Indian Income-tax law, Tax Deducted at Source (TDS) on payments/credits made during the month of March, needs to be deposited latest by 30th  April.

On account of the above-stated ordinance, tax-payers heaved a sigh of relief and felt that they need not undertake any TDS compliance as of now. However, it may be noted that there is no extension in due date for deposit of TDS and the due date for deposit of TDS for the month of March 2020 still stands on 30th April 2020.

TDS provisions provided by the ordinance

It is advisable that the taxpayers should deposit the TDS on or before the due dates to avoid any repercussions. In a case, where on account of lock-down, the taxpayer is facing any sort of difficulty in computing the TDS liability, one may deposit TDS on an estimated basis so that interest on late payment is applicable only on the shortfall if any.

• Delay in depositing TDS for the month of March will invite a reduced interest of 0.75% per month instead of the existing rate of 1.5% per month.
• No penalty shall be levied on account of the above delay.
• No prosecution shall be sanctioned on account of the above delay
• The due date for filing TDS returns has been extended from 31st May 2020 to 30th June 2020.

The fourth quarter wiped out gains across global markets.  The S&P returned a negative -13.52%, the MSCI All Country World fell -12.65% and the Nasdaq declined -17.28%.

2019 will start with an economy approaching its longest expansion in history – with more consecutive months of job gains than any prior expansion and a job market that continues to grow. Inflation is close to the Fed’s target of 2%, and the unemployment rate is its lowest in decades. There doesn’t appear to be glaring investment or financial imbalances. Economic fundamentals are slowing but still relatively strong as the year begins, typically not a bad setup for equity markets.

Some Of The Point

The finish of 2019 was stark, and pleasant, in contrast to the same time period in 2018. Global stock markets enjoyed strong growth in Q4. Bonds had positive returns at the end of the year also, but saw the majority of their returns early in 2019. Nearly every major investment index had above average returns for the year 2019. The finish of 2019 was stark, and pleasant, in contrast to the same time period in 2018. Global stock markets enjoyed strong growth in Q4. Bonds had positive returns at the end of the year also, but saw the majority of their returns early in 2019. Nearly every major investment index had above average returns for the year 2019.

• Predicting short-term returns on investment markets is a rather fickle thing to do, and very few people do it well.
• The talking heads of financial media are predictably going to tell you about how stock markets perform in election years, as we approach November 3rd.
• Many of the pundits claimed that a Narendra Modi victory in 2013 would plummet the stock markets.

Section 50 of the CGST Act is being amended to provide for a retrospective charge of interest on net cash liability, with effect from 1st July 2017.

GST audit requirement by specific professionals such as CAs and CMAs has been removed from the GST law. Section 35 and 44 have been amended in this regard. As per the amendment, only GSTR-9 annual returns on a self-certification basis need to be filed on the GST portal by taxpayers, completely removing the requirement for GSTR-9C

New Updates On GST Regarding To Taxpayers

1. GST authorities ask field units to ramp up collections, identify defaulting taxpayers.
2. Govt releases Rs 2,104 crore as 19th installment of GST compensation shortfall to states.
3. Govt extends last date for annual GST filling till march end  for FY 20.
4. GST officers to immediately suspend taxpayer’s registration for ‘significant anomalies’ in sales return.
5. Budget 2021: FM does away with the need for GST Audit for a section of taxpayers.
6. No GST on electricity charges recovered from tenants.

Under the provisions of section 96(1) of Companies Act 2013, All Companies ( other than one person companies ) are required to hold AGM within 6 months from the end of the financial year.

In the case of the First Financial year for newly incorporated companies, the time period is 9 months from the end of the first financial year. Hence the Due date for FY 2019-20 for companies other than newly incorporated companies was 30.09.2020.

Many Problems Faced During Pandemic Time

Due to the Pandemic many companies were not able to complete the audit and get the audit reports completed before September first week to issue 21 days’ notice to the AGM.  The stakeholders had made multiple requests to the government for grant extension without having to apply for an extension by companies.

• This order granting extension has come as a huge relief to companies and the Auditors in complying with the legal requirements under the Companies Act.

Public companies were allowed to grant loans, guarantees and securities subject to Central Government approval and private companies were exempted under Section 295 of the former Companies Act, 1956.

Private Companies were facing problems due to stringent provisions of Section 185 while carrying out operations. So, Government exempted private companies from entire Section 185 to ease the compliance requirement vide notification dated 5th June, 2015.

Companies (Amendment) Act, 2017

Government substituted entire Section 185 by way of Companies (Amendment) Act, 2017 to promote ease of doing business. The original Section 185 specified more exhaustive list to which Companies can’t give loans, guarantee and securities. Thus, at par with the global company laws, the provision has been amended to remove the prohibition to an extent and provides for the passing of shareholders’ resolution for granting of loans, guarantees, and securities to entities in which directors are interested.

• There should be no investment in the concerned company from any other body corporate;
• The company should not have any borrowings from banks, financial institutions and other bodies corporate equal to or more than twice its paid-up share capital, OR Rs. 50 crores, whichever is lower; and
• There should be no subsisting default at the time of making such transaction, and that the company should have the capability to pay off the loan.

For other individual ITR filers, the last date was July 31 however was extended to August 31.

Section 234F was introduced to ensure timely filing of returns of income. However, inadvertently, the ITR utility also levied the fees on the partners of the partnership firms, whose due date for ITR filing are linked with that of the partnership firm.  Now amending the inadvertent error, the Income-tax authorities have decided to remove the penalty charged u/s 234F.

Documentation Of ITR

For the financial year 2018-19 (evaluation year 2019-20), all working accomplice of a firm whose records are required to be examined should document their ITR by September 30, 2019 which was later extended to October 31. For those living in Jammu and Kashmir and Ladakh, the last date has been additionally extended to November 30.

• All persons including Individual, HUF, company, partnership firms, etc are liable to pay late filing fees under Section 234F, if the ITR is filed after their respective due dates.
• For those filing ITR after the due date but within 31 December are charged ?5,000 and the penalty increases to ?10,000 January onwards.