Income Tax Law Updates:

Notification/Circulars

Notification No. 04-01-2022 of Department of Revenue: Provisions of sub-rule (1A) of rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 shall not apply to the Foreign Portfolio Investor.

Notification No. 142 /2021 [F. No. 300196/4/2021-ITA-I] dated 31-12-2021

Following Income of  Bureau of Indian Standards is exempt under clause 10 (46) of Income Tax Act, 1961:- (i) Certification fee; (ii) Sale of standards, provided there is no profit involved; and (iii) Income from interest;

Notification No. 1/2022-Income Tax | Dated: 6th January, 2022

Following Income of  Regional Air Connectivity Fund Trust is exempt under clause 10 (46) of Income Tax Act, 1961:- (a) Grant from Government; (b) Receipt of levy from Airlines; (c) Forfeiture of bank guarantee due to non-fulfillment of obligation by Airlines; and (d) Interest income earned on (a) to (c) above;

Revision of interest rates for Small Savings Scheme for Q4 of FY 2021-22: No change 

Notification No. 140/2021dated 29-12-2021: Special Economic Zone Reinvestment Allowance Reserve Account: The CBDT has notified Rule 16DD and Form 56FF which is required to be furnished by the assessee along with the return of income to claim deduction under section 10A. The rule is applicable retrospectively w.e.f. 29-07-2021.

Case Laws/Judgements:

Vasantlal Nyalchand Kikavat Vs DCIT (ITAT Mumbai) Order dated 17/12/2021

ITAT Mumbai allowed LTCG exemption on shares of ‘Unisys Software’. Transaction is genuine.

Goods and Services Tax Law Updates:

Notification/Circulars

Instruction No. 01/2022-GST dated 7th January, 2022 

Guidelines for recovery proceedings under the provisions of section 79 of the CGST Act, 2017 in casos covered under explanation to sub-section (12) of section 75 of the CGST Act, 2017.

Notification dated January 03,2022: Commercial Taxes Department Raj.

Rajasthan VAT  – ITC Mismatch/ Verification Date Extended to 31.03.2022 & In some cases requirement of Affidavit also Removed vide Notification No. F.16 (100)Tax/CCT/14-15/1039 Dated January 03,2022.

AAR/Case Laws/Judgements

Golkonda Hotels and Resorts Limited (GST AAR Telangana) 29/12/2021

The services of boarding and lodging facility for the officials of Greater Hyderabad Municipal Corporation for conducting 2018 General Election for Telangana State Legislative Assembly are NOT exempt under Sl.No.3 of Notification No.12/2017.

Emcure Pharmaceuticals Limited (MAHARASHTRA-AAR) dated 04-01-2022

GST is not be payable on (i) recoveries made from the employees towards providing canteen facility at subsidized rates (ii) towards providing bus transportation facility and (iii) on the notice pay recoveries.

Bharat Heavy Electricals Ltd. (CESTAT Chennai Final Order dated 15-12-2021): Right to claim Service Tax Refund cannot be frustrated for Procedural requirement of filing TRAN-1 before Dec 27, 2017.

RBI Updates:

RBI Press release dated 05-01-2022 on Credit Information Companies.

More entities can tap into info with Credit Information Companies. An entity shall be a company or Statutory Corporation incorporated in India. It should have a net worth of not less than Rs. 2 crores, and shall meet the requirement on a continuing basis.

RBI Retail Direct Scheme: One-stop access to facilitate investment in Government Securities by retail investors. [Press Release dated 04-01-2022]