The 2023 G20 summit was held in New Delhi, India, on September 9-10, 2023. The main venue was the Pragati Maidan, a large exhibition complex in central Delhi. The summit was also held at other venues in New Delhi, including the Hyderabad House, the Prime Minister's residence, and the India International Centre. The 2023 G20 summit was attended by the leaders of the 20 member countries of the G20, as well as the leaders of several invited countries, including Argentina, Indonesia, Senegal, South Africa, and Turkey. The summit was also attended by the heads of international organizations, such as the United Nations, the World Bank, and the International Monetary Fund. The G20 Delhi Declaration was the outcome document of the 2023 G20 summit. It was a 38-paragraph document that covered a wide range of issues, including: The global economy and finance: The declaration called for continued efforts to strengthen the global economy and financial system. It also emphasized the importance...
(1) Limit for payment of expenses by cash (both, capital and revenue
expenditure) reduced from Rs.20000 to Rs.10000 per day in aggregate per person. Capital expenses paid in cash beyond the said limit will not be taken into account for depreciation purposes. However, the cash payment limit for lorry fright etc. remains the same at Rs.35000.
expenditure) reduced from Rs.20000 to Rs.10000 per day in aggregate per person. Capital expenses paid in cash beyond the said limit will not be taken into account for depreciation purposes. However, the cash payment limit for lorry fright etc. remains the same at Rs.35000.
(2) No person shall receive an
amount of two lakh rupees or more, by cash (Sec. 269ST) —
(a) in
aggregate from a person in a day; or
(b) in respect
of a single transaction; or
(c) in respect
of transactions relating to one event or occasion.
The penalty
for violation of above is to be a sum equal to the amount of such receipt.
Examples for
above -
i) If one sells goods worth
Rs. 300000 through three different bills of Rs.100000 each to one person and
accepts cash in single day at different times then section 269ST(a) will get
violated.
ii) If one sells goods worth
Rs. 300000 through single bill to another person and receives cash of Rs.150000
on day 1 and another Rs.150000 on day 2 then section 269ST(b) will get
violated, since it pertains to single transaction.
iii) If one accepts cash of Rs.180000 for sales and Rs.20000 for
freight charges, then section 269ST(c) will get violated even if cash is
accepted on different dates, since they pertain to a single sales event.
iv) If one sells his car for
Rs. 300000 and receives the amount in cash, then penalty levied on him will be
Rs.300000.
(2A) In view of the newly introduced penal provisions relating to cash
sales, the existing provisions (in vogue from 1.6.2016) relating to collection
of TCS @ 1% on cash sales exceeding Rs.2 lakhs (Rs.5 lakhs, in the case of
jewellery) are deleted. Consequently,
there is no need to collect TCS on cash sales exceeding Rs.2 lakhs. Straight away it will attract equal amount
penalty now.
(3) For below Rs.2 crores
turnover cases -
For Non Cash
Sales (through Digital, Online, cheque, Bank etc.): Net Profit will be taken as
6% of Turnover/ Gross Receipt.
For Cash Sales
: Net Profit will be taken as 8% of Turnover/Gross Receipt.
(4) Tax Exemption limit is Rs.2,50,000/- (same as earlier) –
After that,
upto Rs.5 lakh, Tax Rate is 5% (earlier it was 10%). Tax rebate of maximum Rs.2500 will be
allowed, for total income upto Rs.3.50 lakhs.
Individuals
having total income exceeding Rs.50 lakhs but below Rs.1 crore, are to pay
surcharge @ 10% of the tax. Those having
total income exceeding Rs. 1 crore shall continue to pay surcharge @ 15%.
(5) Payment of Rent -
Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit
requirements) - deduct TDS @ 5%.
(6) Capital Gain in respect of
Land & Buildings -
– Periodicity
for long term Capital Gain is reduced from 3 years to 2 years.
– Base year
shifted from 01.04.1981 to 01.04.2001 for all assets including Immovable
property.
(7) Corporate tax rate for the
account year 2017-18 for companies with annual turnover upto Rs. 50 crores (in
the account year 2015-16) is reduced to 25%.
No change in firm tax rate of 30%.
(8) Donations made exceeding
Rs.2000 will be not be eligible for deduction under section 80G, unless these
are made using modes other than cash.
(9) Sale of unquoted shares to
be taxed at (deemed) fair value.
(10) In absence of PAN of
the buyer of specified goods, the rate of TCS will be twice of the extent rate
or 5%, whichever is higher.
(11) From financial year 2017-18, if Return is not filed within due
date, late fee of Rs.5000 for delay up to 31st December, and Rs. 10000
thereafter.
(12) A simple one page tax return form is to be introduced for
Individual with taxable income up to Rs. 5 lakh (excluding Business Income).
Those filing returns for the first time in this category will generally not be
subject to scrutiny.
(13) Time period for revision of tax return cut to one year (from 2
years) from the end of relevant financial year or before completion of
assessment, whichever is earlier.
(14) It is mandatory to disclose the Aadhar number while filing IT
Return. Every person who is eligible to obtain AADHAR number, should quote such
number, on or after 1 July 2017, in the Return of income.
Furthermore,
every person who has been allotted PAN as on 1st July 2017 must intimate the
AADHAR number to the Tax Authority, failing which, PAN allotted to such person
shall be deemed to be invalid. Kindly
note that linking of AADHAR with PAN is not possible, unless name as per AADHAR
and PAN match perfectly. Hence, please
take steps to rectify your name as per AADHAR to match as per PAN.
(15) Where Sec.12AA registered trusts modify their objects clause,
they need to apply within 30 days to CIT for approval of the modified clauses.
(16) No tax is applicable for
partial withdrawals from National Pension System. NPS subscribers will be able
to withdraw 25% of their contribution to the corpus for emergencies before
retirement. Withdrawal of 40% of the corpus is tax free before retirement.
Disclaimer:
The post on this blog is not a professional advice
and is shared for academic and knowledge sharing purpose only.
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