Income Tax Law Updates

Notification/Circulars:

Notification No. 27/ 2022/F.No. 370142/5/ 2022- TPL-Part1 dated 05-04-2022

CBDT notified E-Dispute Resolution Scheme 2022 under section 245MA of the ITA. Scheme is helpful for small taxpayers where the addition proposed is upto INR 10 lakhs.

Notification No. 24/2022 [F. No. 370142/7/2022-TPL dated 04-04-2022: Taxation of income from retirement benefit account maintained in a notified country. CBDT has notified Rule 21AAA and Form No. 10-EE to be filed by a person claiming relief under section 89A. As per the Rule, if the income from foreign retirement funds is taxed at the time of redemption or withdrawal in the foreign jurisdiction, the assessee shall have the option to include such income in that relevant previous year (previous year in which withdrawal/redemption is made).

The interest rate for various small saving schemes for the first quarter of the Financial Year 2022-23, i.e., 01-04-2022 to 30-06-2022, shall remain unchanged from the current interest rates applicable for the fourth quarter of the Financial Year 2021-22. Click here to know the latest rate on the Small Saving Scheme.

Goods and Services Tax Law Updates:

AAR/Case Laws/Judgement

In Re: Venkateshwara Infrastructure JV (MAHARASHTRA-AAR GST) Dated 31-03-2022

The applicant is supplying Composite supply of works contract involving predominantly earth work (that is, constituting more than 75per cent, of the value of the works contract) and such supply is being provided to the Central Government, i.e. Central railways. Therefore, the impugned supply of the applicant is covered under the provisions of Sr. No. 3 (vii) of Notification No. 11/2017 – CTR dated 20.06.2017 and taxable @5%.

In Re: Nagpur Waste Water Management Pvt. Ltd. (MAHARASHTRA-AAAR) Dated 01-04-2022 

Tertiary Treated Water (TTW) will be eligible for exemption in terms of entry at SI.No. 99 of the Exemption Notification No. 02/2017-C.T. (Rate) dated 28.06.2017.

In Re: B.P. Sangle Constructions Pvt. Ltd. (MAHARASHTRA-AAR GST) Dated 31-03-2022

The escalated value shall be added to the original value of the contract and the total of the escalated value plus the original value of the contract will be the transaction/taxable value u/s 15 of the Act, on which GST must be discharged by the applicant.

In re Meerabai Tukaram Borade (GST AAAR Maharashtra) Appeal Order dated 01-04-2022 

The impugned services of the renting out of immovable properties provided by the Appellant to the Social Justice Department of the Government of Maharashtra will be exempt from the levy of GST in terms of SI. No. 3 of the Notification No. 12/2017- C.T. (Rate) dated 28.06.2017, and accordingly, the TDS provisions made under section 51 of the CGST Act, 2017, will not be applicable therein.

Updates from Other Laws:

Case Laws/ Judgement/ Circular/ Notification

SEBI Circular No.: SEBI/HO/CFD/DIL2/CIR/P/2022/45 dated 05-04-2022

SEBI hikes UPI limits to Rs. 5 lakhs for individual investors applying for public issues: SEBI has decided that all Individual Investors applying in Public Issues where the application amount is upto 5 Lakhs shall use UPI and also provide their UPI ID in bid-cum-application form submitted with either syndicate member or Stock broker, or DP or an RTA. Earlier, the National Payments Corporation of India vide. circular dated 09.12.2021, hiked transaction limit in UPI from Rs. 2 lakh to Rs. 5 lakh for UPI based Application Supported by Blocked Amount in Initial Public Offers (IPOs).