Big taxpayers yet to take benefits of Sabka Vishwas amnesty scheme

These taxpayers have declared tax dues of around Rs 79,968 crore and after availing the various reliefs and amnesty as per the rules of the scheme, they would pay around Rs 35,094 crore, sources said.

As many as 87.5 per cent of the eligible taxpayers have taken advantage of Sabka Vishwas, a dispute resolution-cum-amnesty scheme, which has been extended till January 15.

However, the large taxpayers who are almost 12.5 per cent of the total eligible taxpayers with total tax amount of Rs 1.7 trillion under litigation has yet to make declaration under this scheme.

According to sources, the government is unlikely to further extend the scheme which went live on September 1, 2019.

The sources said till now, 161,214 taxpayers (87.5 per cent) out of the total 184,000 eligible taxpayers have already availed the scheme.

These taxpayers have declared tax dues of around Rs 79,968 crore and after availing the various reliefs and amnesty as per the rules of the scheme, they would pay around Rs 35,094 crore, sources said.

However, only 23,000 (about 12.5 per cent of the total) eligible taxpayers have not yet applied under the scheme while the vast majority of the smaller taxpayers have already opted for the scheme.

The sources said its officers are pursuing taxpayers to avail this scheme before January 15 as it would not be extend further.

Business Standard

Eight common mistakes to avoid while filing your GSTR-9 return

While the Government is going to be extra vigilant to flag defaulting filers, taxpayers need to be cautious to avoid making any errors, as there is no way to amend the GSTR-9 return once filed.

Business Standard : There’s less than a month to go for the deadline to file the first ever annual GST return - form GSTR-9. While the Government is going to be extra vigilant to flag defaulting filers, taxpayers need to be cautious to avoid making any errors, as there is no way to amend the GSTR-9 return once filed.

So what are some of the mistakes that taxpayers can avoid while filing their GSTR-9 return?

1. Not filing your annual GST return on time

In the case of GSTR-9, the Government has already clarified that no further extensions will be given. Taxpayers should take note of this and file their GST returns well before the deadline as this could save this not only interest and penalties, but also the issue of a demand notice in cases where the GST return has not been filed.

2. Not ensuring a separate GSTR-9 return is filed for every State/Union Territory

GST returns are filed on the basis of a GSTIN held by a business. Businesses having operations in multiple States/UTs need to file a separate GSTR-9 annual return for each State/UT, and not for the entire company/business as a whole.

3. Reporting April-June 2017 transactions while filing GSTR-9

GST was introduced in India in July 2017, which means the first year of filing the annual return form GSTR-9 will only be for 9 months and not for the entire year. Taxpayers need to be extremely careful while reporting transactions for FY 17-18 as only data for the 9-month period i.e July 2017 to March 2018 needs to be reported.

4. Mismatch of filed data in monthly and quarterly returns

Taxpayers should ensure that all monthly and quarterly filed returns match with the data reported in the GSTR-9. Mismatch of data could be one of the primary causes of getting a demand notice at a later date from the GST department. While the due date for making amendments to data of FY 17-18 has passed, taxpayers can still disclose any additional tax liability in the GSTR-9 return.The same can be paid in form DRC-03.

5. Not maintaining proper documentation

Before filing the annual return, it is the duty of the taxpayer to reconcile, verify and report only accurate information. In addition to this, the taxpayer should ensure that there is substantial documentary proof of all data that is reported in the return, in order to avoid unnecessary hassles at a later date.

A complete guide to investing and I-T rebates under Section 80C

Once you know the amount required for availing maximum deductions under Section 80C, it's time to select the investment option(s) based on their liquidity and taxability of returns.

With the financial year drawing to close, income tax-payers would have started exploring various tax-saving investment options allowed under Sec 80C of the Income-Tax Act. However, with various payments and mandatory outflows also qualifying under Section 80C, the first step towards making tax saving investments under this Section is to figure out the required investment amount.

(Business Standard)

Required investments for optimal Section 80C deduction

Taxpayers can claim up to Rs 1.50 lakh as deductions under Section 80C. Apart from the various investment options eligible for availing Section 80C deduction, certain pay-outs and mandatory expenses are also covered under the same deduction. These include your child’s tuition fees, repayment of your home loan principal, your contribution to EPF or recognized provident fund, term insurance premiums and stamp duties and registration charges incurred on acquiring a home loan property. Your required investment amount would be the amount left after deducting the mandatory pay-outs from the Rs 1.50 lakh limit.

For example, assume that your gross annual income is Rs 7 lakh and your qualifying mandatory pay-outs include Rs 80,000 as home loan principal repayment, Rs 20,000 towards EPF contribution and Rs 10,000 as a term insurance premium. You will need to invest Rs 40,000 in the investment options eligible for Section 80C deduction. Investing beyond this amount would not make sense, as all Section 80C investment options come with lock-in period and other restraints.

Best investment options

Once you know the amount required for availing maximum deductions under Section 80C, it’s time to select the investment option(s) based on their liquidity and taxability of returns and your own risk appetite and return expectations.

Equity-Linked Savings Schemes (ELSS): These are primarily diversified equity mutual funds with a lock-in period of three years from the date of investment. The 3-year lock-in period is the shortest among all investment options available under Section 80C. The funds can be easily redeemed after the completion of the lock-in period with the credit of redemption amount to the linked bank account within 2–3 working days. Being equity funds, ELSS come with the same market risk as other equity funds. However, as equities usually outperform other asset classes by a wide margin over the long-term, ELSS too has outperformed various fixed income investment options under Section 80C. ELSS as a category has generated an annualised return of about 10%, 16% and 16.3% p.a. over the last 3-year, 5-year and 10-year periods.