The institute has notified amendments for CA Inter November 2019 exams. Income tax amendments applicable for CA Inter November 2019 will include the following:

  1. Updates by Finance Act, 2018 and
  2. Notifications/circulars issued up to 30th April 2019.

Chapter 3: Incomes which do not form part of Total Income

Computation of admissible deduction u/s 10AA
[Circular No. 4/2018, Dated 14-8-2018]

IssueDecision
Whether freight, telecommunication charges, and insurance expenses are to be excluded from both “export turnover”‘ and “total turnover”? To be excluded to the extent they are attributable to the delivery of articles or things outside India.
Whether charges for rendering services outside India are to be excluded? Expenses incurred in foreign exchange for rendering services outside India are to be excluded from both “export turnover” and “total turnover” .


Chapter 4: Salaries

Notified limit of exemption for Gratuity
Notification No. 16 /2019, dated 08.03.2019

Old ProvisionAmendment
The notified limit for exemption in respect of gratuity was Rs. 10 lakh. The notified limit has been increased to Rs. 20 lakh.

Chapter 9: Advance Tax, TDS and TCS

[Notification No. 27 & 28/2018, dated 18-06-2018]

NO TAX IS REQUIRED TO BE DEDUCTED AT SOURCE ON INTEREST PAYABLE ON:

  • “Power Finance Corporation Limited 54EC Capital Gains Bond” and
  • “Indian Railway Finance Corporation Limited 54EC Capital Gains Bond”
Old ProvisionAmendment
As per clause (iib) of the proviso to section 193, no tax is required to be deducted at source from any interest payable on such debentures, as the Central Government may notify.The Central Government has, vide this notification, specified the above mentioned bonds. Hereby any interest payable on such bonds is not liable to TDS.

NO TAX IS REQUIRED TO BE DEDUCTED AT SOURCE U/S 194A, IN CASE OF SENIOR CITIZENS.

OLD PROVISIONNEW PROVISION
Exemption limit from TDS on interest u/s 194A was Rs. 10,000.In case of senior citizens this limit has been raised to Rs. 50,000.

NO TDS ON INCOME INCOME OF HOUSING AND DEVELOPMENT CORPORATION LTD. (HUDCO), NEW DELHI

OLD PROVISIONNEW PROVISION
Section 194A(3)((iii)(f) provides that no tax is required to be deducted on interest income paid or credited to such other institution, association or body or class of institutions, associations, or bodies which is notified by the Central Government. Accordingly, the Central Government has, vide this notification, notified the Housing and Urban Development Corporation Ltd.(HUDCO), New Delhi for the purpose of the said section.


Chapter 10: Provisions for filing return of income and self-assessment

The Finance Act, 2018 has expanded the list of persons covered under section 139A(1) to include the persons mentioned in (iv) & (v) in column (2) of the table below, who have not been allotted a PAN, to apply to the Assessing Officer for allotment of PAN.

Persons required to apply for PAN Time limit
Every person whose income exceeds the maximum amount which is not chargeable to income-tax. on or before the 31st May of the assessment year for which such income is assessable.
Every person carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed Rs. 5 lakhs in any previous year before the end of that financial year (previous year).
Every person who is required to furnish a return of income under section 139(4A) before the end of the financial year (previous year).
Every person being a resident, other than an individual, which enters into a financial transaction of an amount aggregating to Rs. 2,50,000 or more in a financial year on or before 31st May of the immediately following financial year
Every person who is a managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of any person referred in (iv) above or any person competent to act on behalf of such person referred in (iv) above on or before 31st May of the immediately following financial year in which the person referred in (iv) enters into financial transaction specified therein.

Quoting of Aadhaar Number mandatory in returns filed on or after 1.4.2019
[Circular No. 6/2019 dated 31.03.2019]

The Apex Court in a series of judgments has upheld the validity of section 139AA. Consequently, with effect from 01.04.2019, the CBDT clarified that it is mandatory to quote Aadhaar number while filing the return of income unless specifically exempted as per any notification issued under section 139AA(3).

Thus, returns being filed either electronically or manually on or after 1.4.2019 cannot be filed without quoting the Aadhaar number.


The time limit for intimation of Aadhar Number to Prescribed Authority
[Notification No. 31/2019, dated 31.03.2019]

The Central Government has, vide this notification, notified that every person who has been allotted permanent account number and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to the Principal DGIT (Systems) or Principal Director of Income-tax (Systems) by 30th September, 2019.

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