PERSONAL INCOME TAX ‘CHECKS’ YOU MUST WATCH OUT FOR

PERSONAL INCOME TAX ‘CHECKS’ YOU MUST WATCH OUT FOR

02.02.2021

Relief from income-tax return filing for senior citizens (aged 75 or more) will not be available if the individual has more than one bank account or has income other than pension and bank interest.

Gap of up to 20% between stamp duty value and sale consideration is only allowed for first-time allotment of residential unit between November 12, 2020 and June 30, 2021. For all other cases (such as purchase of house from an existing owner), the current limit of 10% in variation will continue to apply.

LTC cash scheme is only applicable for the financial year 2020-21. No tax benefit on LTC is available for goods or services purchased after April 1, 2021.

There is lack of clarity on whether EPF interest will be taxable even where the employee’s contribution exceeding 2.5 lakh was made before April 1, 2021 but the interest accrues on such past contributions after April 1, 2021.

Same tax, less hassle for 75-plus

Same tax, less hassle for 75-plus

TEAM TOI

02.02.2021

The Budget has attempted to reduce the compliance burden on senior citizens above 75 years of age having only pension and interest income by exempting them from filing tax returns.

However, if seniors have any other income like rentals from house and investments in mutual funds, they will have to file the return. Therefore, its effectiveness would be limited to those pensioners who do not have any income other than pension. In addition to such pension income he or she may also have interest income from the same bank in which the pension is coming in.

Also, certain conditions need to be satisfied for getting exemption from return filing. In order to implement the scheme, the central government plans to notify a few banks as specified bank for the purpose. In order to avail the benefit, the pensioner will have to open his or her account in the specified bank.

Pensioner will also be required to furnish a declaration to the specified bank containing particulars as specified by the government. The bank will also verify the declaration.

Once the declaration is furnished and verified, the specified bank would be required to compute the income of the senior citizen after giving effect to the deduction and rebate allowed under the I-T Act. The bank will deduct the necessary tax, and the senior citizen will be saved the hassle of filing returns.

IT’S A BREEZE FOR SENIORS

Many happy returns... Only if you file by Dec 31

Many happy returns... Only if you file by Dec 31

TEAM TOI

02.02.2021

From the compliance point of view, the Budget seems to offer many pluses for the taxpayer. But, if you scratch beneath the surface, it does seem to be a mixed bag.

Let’s begin with the sting in the fine print of the finance bill. The time-limit for belated or revised returns (to correct any errors) is shorter, and these can now be filed three months before the end of the relevant assessment year, or before the completion of the tax assessment, whichever is earlier. Let us look at a case study.

For a salaried taxpayer, the date of filing his I-T return for the financial year ending March 2021will be July 31, 2021. The belated or revised return — which could earlier be filed by March 31, 2022 — now have a deadline of December 31, 2021, or before completion of assessment. whichever is earlier.

“The reduction of such time-limits will impact taxpayers whose returns are due by October 31 (businessmen who need to get their audits accounted) or November 30, for companies having significant international transactions. Typically, mistakes in the original returns are discovered only after a few months. Not complying with the requirement by these dates could attract severe consequences — penalty for nondisclosure of income, besides potential prosecution,” says Gautam Nayak, tax partner at CNK & Associates.

Coming to tax-audit requirements. Currently, if the turnover of a businessman exceeds Rs 1 crore, the books of accounts are required to undergo a tax audit. The FM, in her speech, pointed out that she had increased the limit to Rs 5 crore for those who carry out 95% of their transactions digitally. To give a further push, this compliance turnover threshold is now increased to Rs 10 crore.

Gautam Nayak, tax partner at CNK & Associates, says it is a positive move. “However, for informal businesses having a larger number of transactions in cash, the limit is still unchanged at Rs 1crore; this should have been enhanced to at least Rs 2 crore,” states Nayak.

A dispute-resolution committee is proposed to be set up to reduce litigation for small taxpayers. Anyone with a taxable income of up to Rs 50 lakh and disputed income of up to Rs 10 lakh can approach this committee, the proceedings of which shall be faceless. The exact contours will be notified later.

JUMBO HURDLE TO CROSS

Apex court to open doors for physical hearings after a year

Apex court to open doors for physical hearings after a year

TIMES NEWS NETWORK

New Delhi:02.02.2021

The Supreme Court is likely to resume physical hearings in three to four weeks, the Bar Council of India (BCI) said on Monday after its chairman and other bar leaders met CJI S A Bobde and sought normal functioning of the court, disrupted for nearly a year because of the Covid-19 pandemic.

The CJI met BCI chairman Manan Kumar Mishra, solicitor general Tushar Mehta, SC Bar Association leader Kailash Vasdev, leaders of advocates' on record association and former SCBA president Vikas Singh to chalk out the modalities and standard operating procedures to begin a hybrid system of working, with both physical and virtual hearings.

"From today's meeting, it is clear that physical hearings are going to start in the Supreme Court within three to four weeks," Mishra said in a press release. Mishra said he conveyed to the CJI that virtual hearings through video-conferencing mode was unacceptable to advocates and there could be no substitute to physical hearings in courts.

The SG had suggested easing the difficulties faced by advocates in getting petitions listed for hearing by assigning mentioning work to one or two judges. This was supported by the BCI chairperson. The CJI said he would consult other judges on this.

On resumption of physical hearings, the CJI said that he would consult medical experts, assess infrastructure and availability of staff before taking a decision on full-scale resumption of physical hearings.

Murderer cant be denied pension if ase not linked to hubby.s death HC

 

Murderer can’t be denied pension if case not linked to hubby’s death: HC

Murderer can’t be denied pension if case not linked to hubby’s death: HC

Saurabh Malik

Tribune News Service

Chandigarh, January 31

The Punjab and Haryana High Court has made it clear that a family is debarred from getting family pension if involved in committing or abetting the murder of a government employee “on the old fable that one cannot kill the goose which lays the golden eggs”, but a government employee’s widow cannot be denied pension on account of her conviction in a murder case unrelated to her husband’s death.

The ruling by Justice GS Sandhawalia came on a petition by a widow for releasing family pension and other admissible benefits after her husband’s death during service in November 2008.

Justice Sandhawalia observed that the reasoning given to deny the benefits was that the petitioner’s conduct was not good as she had been convicted by court.

The Bench, during the course of hearing, was told that the petitioner’s husband was working as teacher in the Education Department on regular basis since 1986.

He died, leaving behind his wife and children, and the petitioner continued to draw monthly financial assistance for some time.

She was involved in an FIR registered in July 2009 and was convicted and sentenced to life imprisonment in November 2011.

Justice Sandhawalia observed that the relevant rule talked about withholding or withdrawing pension in case of a pensioner’s conviction for a serious crime or if found guilty of gross misconduct, but the same did not refer to the family receiving financial aid.

“It is not disputed that the petitioner has committed the offence of murder and is on bail and her sentence has been suspended.

“Therefore, she requires to maintain herself and cannot be denied financial assistance. It is not a bounty as such and is her right on account of the services rendered by her husband to the government,” Justice Sandhawalia observed.

Referring to the Family Pension Rules, Justice Sandhawalia asserted that the petitioner was denied family pension on account of her conviction for murder, but the conviction was not on account of murdering her husband and the provision could not be relied upon by Haryana and other respondents to deny the claim.

“The purpose behind Rule 4-A(a) of the Family Pension Rules, 1964, is to debar the family members from getting family pension if they are involved in committing the murder or abetting the murder of the government employee,” Justice Sandhawalia observed.

Holding that the order denying pension to the petitioner due to her conviction was unrelated to her husband’s death, Justice Sandhawalia ruled that it was not sustainable and should accordingly be set aside.

Madanapalle murders: Ex-students of couple hire lawyers for defence

 Madanapalle murders: Ex-students of couple hire lawyers for defence

TNN | Jan 31, 2021, 04.30 AM IST

Tirupati: A group of students taught by lecturer couple, Dr V Purushotham Naidu and his wife Padmaja who are accused in the murder of their daughters, have come forward to provide legal assistance to the couple. The students have hired the services of senior advocate PV Krishnamachari to defend the couple in the double murder case. The lawyer had previously represented the four accused in the rape and murder of a veterinary doctor near Hyderabad in December 2019.

On January 24, the couple had allegedly killed their daughters, Alekhya and Divya, believing that they would be resurrected in the Satya Yug. The couple are still said to be in a state of trance with jail authorities referring them to a mental health hospital for psychiatric treatment.

Advocate Rajini, who is part of Krishnamachari’s team, interacted with Dr Purushotham after obtaining special permission from jail authorities. She has now sought permission for an interaction with Padmaja. Speaking to reporters, Rajini said several old students approached Krishnamachari and requested him to represent the couple’s case.

“The couple have trained and shaped many students, who are now working as doctors, advocates, engineers and in many other professions. How can the couple, who shaped the future of many youngsters throughout their careers, destroy the very future of their own daughters? It has to be probed as to how the entire family was driven into a state of trance and by whom,” said Rajini.

Meanwhile, police ruled out financial gain motive behind the double murder. “Both Purushotham Naidu and Padmaja are wealthy and their net worth runs into several crores. With both their daughters dead and both parents behind the bars, who stands to benefit from their wealth now?”, Rajini sought to know.

The post-mortem report of the deceased is yet to come.