Introduction:

During the financial year 2019-20, the country witnessed two Finance Bills due to the election for the Central Government. Firstly, the earlier NDA government had brought out a limited Budget, in what is technically known as “The Vote on Account”, wherein it introduced a small Finance Act, 2019. After the conclusion of the General Election, the newly elected government presented the full-fledged budget, wherein it enacted the Finance (No. 2) Act, 2019 which contained several amendments to the Income Tax Act, 1961. Further, in December 2019, The Taxation Laws (Amendment) Act, 2019 was enacted which amended certain provisions introduced vide the Finance (No. 2) Act, 2019. The present article examines the amendments made by both the Finance Acts and also by the above referred Amendment Act, in so far as they are relevant for the purpose of filing the return of income for A.Y. 2020-21.

I. RATE OF TAX:

1. Individuals, HUFs, Association of Persons, Body of Individuals, Artificial Jurisdictional Person.

Tax Slab and rates:

TOTAL INCOME	Individuals (Age < 60 years), HUFs, AOP, BOI Or AJP	Senior Citizen Individuals	Super Senior Citizens Individuals
Upto ₹ 2,50,000/-	NIL	—	—
Upto ₹ 3,00,000/-	—	NIL	—
₹ 2,50,001/- to ₹ 5,00,000/-	5%	—	—
₹ 3,00,001/- to ₹ 5,00,000/-	—	5%	—
Upto ₹ 5,00,000/-	—	—	NIL
₹ 5,00,001/- to ₹ 10,00,000/-	20%	20%	20%
Above ₹ 10,00,000/-	30%	30%	30%

• Rebate u/s. 87A for a Resident Individual:

If the total income of a resident individual does not exceed ₹ 5,00,000/- then such individual shall be allowed deduction from the income tax payable of upto ₹ 12,500/- or the amount of tax payable, whichever is lower.

• Rate of Surcharge to be applied on the amount of Income Tax:

Particulars	Total Income	Rate
Surcharge on income other than : – Capital Gains taxable u/s. 111A, 112A &115AD(1)(b) – Income taxable u/s.115BBE	Exceeds ₹ 50 Lakhs but less than ₹ 1 Crore	10%
	Exceeds ₹ 1 Crore but less than ₹ 2 Crore	15%
	Exceeds ₹ 2 Crore but less than ₹ 5 Crore	25%*
	Exceeds ₹ 5 Crore	37% *
Surcharge (on Income chargeable u/s. 115BBE)	Any Sum	25%
*Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, on income chargeable to tax u/s. 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

• The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge

2. Co-operative societies.

Total Income	Rate of Tax	Surcharge & Cess
Upto ₹ 10,000/-	10%	Surcharge will be levied on the income tax @12% if total income exceeds Rs. 1Crore
₹ 10,001/- to ₹ 20,000/-	20%	The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge
exceeds ₹ 20,000/-	30%

3. Partnership Firms, LLP and Local Authority

Flat rate of tax @ 30% of the total income. If total income exceeds ₹ 1 crore, then surcharge will be levied @ 12% on the amount of tax payable on total income.

The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge

4. Companies

➤ Domestic Companies:

• Various Tax Options:

Section	Important Conditions		Rate of Tax
115BA	a)	The company is set up and registered on or after 01/03/2016	25%
	a)	The company is not exercising option u/s. 115BAA or 115BAB.
	b)	It is engaged in manufacture or production of any article or thing
	c)	It does not claim specified exemption, incentive or deduction.
	d)	Option to opt in for this section should be exercised by filing the declaration in Form No. 10-IB on or before the due date of filing Return of Income as specified in Section 139(1).
	e)	Once the option has been exercised under this section then it cannot be subsequently withdrawn for the same or any other assessment year, except for opting for section 115BAA.
115BAA	a)	Domestic company not opting for Section 115BA or Section 115BAB can opt for this Section.	22%
	b)	It does not claim specified exemption, incentive or deduction.
	c)	Option to opt in for this section should be exercised by filing the declaration in Form No. 10-IC on or before the due date of filing Return of Income as specified in Section 139(1).
	d)	Once the option has been exercised under this section then it cannot be subsequently withdrawn for the same or any other assessment year.
115BAB	a)	The company is set up and registered on or after 01/10/2019.	15%
	b)	The company is not exercising option u/s. 115BA or 115BAA.
	c)	It is engaged in manufacture or production of any article or thing and is not engaged in any other business.
	d)	It commences manufacturing on or before 31-03-2023
	e)	It is not formed by splitting up or reconstruction of existing business and does not use second hand machinery or plant and does not use a building previously used as a hotel or convention centre in respect of which deduction under section 80ID has been claimed and allowed.
	f)	It does not claim specified exemption, incentive or deduction.
	g)	Option to opt in for this Section should be exercised by filing the declaration in Form No. 10-ID on or before the due date of filing Return of Income as specified in Section 139(1).
	h)	Once the option has been exercised under this section then it cannot be subsequently withdrawn for the same or any other assessment year.
	i)	Where the total income includes income which is not derived or incidental to manufacturing or production of an article or thing and for which separate rate of tax in not specified then the rate of tax on such income shall be 22% on gross basis.
	j)	Where course of business between company opting for this section and any other person are so arranged that it produces to the company more than the ordinary profits, the assessing officer can re-compute the profit which may be reasonably deemed to have been derived therefrom. Rate of Tax on such excess income derived by assessing officer shall be 30%.
	k)	Rate of Tax in case of short term capital gain arising from transfer of capital asset on which depreciation is not allowable, will be 22% of such gains.
First Schedule to Finance Act	If total turnover or gross receipts during the financial year 2017-18 does not exceed ₹ 400 crore		25%
First Schedule to Finance Act	Any other domestic company		30%

• Surcharge on Income Tax:

Company covered by	Total Income
	Upto ₹ 1Crore	Exceeds ₹ 1 Cr. but is Upto ₹ 10 Cr.	Exceeds ₹ 10 Cr
Section 115BA	Nil	7%	12%
Section 115BAA*	10%	10%	10%
Section 115BAB*	10%	10%	10%
Other Domestic company	Nil	7%	12%

(*) The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10%, except on that part of total income which is chargeable to tax u/s. 115BBE of the Income Tax Act, 1961, where the rate of surcharge is 25% of the income tax.)

• The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge

➤ Foreign Companies:

• A foreign company is liable to pay tax at the rate of 40% of total income.

• The rate of surcharge:

• 2% If Total Income exceeds Rs. 1 Crore but is upto Rs. 10 Crore

• 5% If Total Income exceeds Rs.10 Crore

• The health and education cess is levied at the rate of 4% on the amount of income tax plus surcharge.

MINIMUM ALTERNATE TAX (MAT)

• MAT is not applicable in case of following Companies:

– A domestic company which has opted for Section 115BAA (22% Tax Rate)

– A domestic company which has opted for Section 115BAB (15% Tax Rate)

– Foreign company which is a resident of a country or a specified territory with which India has an agreement referred to in section 90(1) or section 90A(1) and the assessee does not have a permanent establishment in India.

– Foreign company which is a resident of a country with which India does not have such an agreement and the assessee is not required to seek registration under any law for the time being in force relating to companies.

– Foreign companies whose total income consists solely of income referred to in Section 44B, Section 44BB, Section 44BBA or Section 44BBB.

– Income accruing or arising to a company from life insurance business as referred to in Section 115B

• Rate of MAT under Section 115JB is reduced from 18.5% to 15% by Taxation Laws (Amendment) Ordinance, 2019

• Rate of MAT under Section 115JB is 9% in case of Domestic Company located in International Financial Service Centre.

ALTERNATE MINIMUM TAX (AMT)

Rate of AMT is unchanged @ 18.5% on the adjusted total income. However, for the assessee located in International Financial Service Centre it shall be 9%. Further, if a person has exercised the option under section 115BAA, then AMT will not be leviable on him.

II. INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME

1. Section 10(4C)

Section 10(4C) is inserted to provide that specified interest income shall be exempt if the following conditions are fulfilled:

(a) the interest is payable to a non-resident (including a foreign company);

(b) the interest is payable by any Indian company or business trust;

(c) the interest is payable in respect of monies borrowed from a source outside India;

(d) the borrowing is by way of issue of rupee denominated bond referred to in section 194LC(2)(ia); and

(e) the bond is issued between 17th September 2018 & 31st March 2019.

2. Section 10(12A)

   Upto AY 2019-20 any payment from National Pension System (NPS) trust to an assessee on closure or opting out of scheme was exempt upto 40% of the amount payable to him. In order to enable the pensioners to have more disposable funds, the exemption limit of 40% is increased to 60% from AY 2020-21.

3. Section 10(34A)

   Consequent to the amendment in section 115QA providing for taxation of buyback of listed shares, section 10(34A) has been amended w.e.f. 05.07.2019 to provide that the exemption shall be available to all buyback of shares including those listed on a recognized stock exchange.

III. INCOME FROM SALARIES:

1. From AY 2020-21, the standard deduction from salary income, as provided in clause (ia) of Section 16 is increased from ₹ 40,000/- to ₹ 50,000/-.

2. While calculating interest u/s. 234A, 234B and 234C the amount of Advance Tax, TDS/TCS, Relief u/s. 90,90A or 91, MAT & AMT credit is allowed to be reduced from the tax liability.

However, relief u/s. 89 was not allowed to be reduced form the amount of tax liability. From AY 2020-21, the said relief is also required to be reduced for calculating the amount on which interest u/s. 234A, 234B and 234C shall be determined. Similar amendment is also made in section 140A for calculation of self assessment tax payable before filing the return of income.

IV. INCOME FROM HOUSE PROPERTY:

1. Benefit of Self Occupied Property expanded: [Section 23(4)]

Upto AY 2019-20, as per Section 23(4) an assessee could claim only one residential house property as a self occupied property and accordingly it’s Annual Letting Value (ALV) was taken as Nil.

From A.Y. 2020-21 onwards, the benefit of self occupied property is expanded from one house property to two house properties. Hence, now an assessee who owns two or more than two residential house properties which are not let out, can claim any two of such properties as self occupied properties and accordingly for both of those properties the ALV will be considered as NIL.

However, it is important to note that the threshold limit of deduction of Rs. 2,00,000/- as specified in second proviso to section 24(b); for the amount of interest, on capital borrowed for acquisition, construction, repair, renewal or reconstruction of self occupied property is not changed. In short, the combined overall threshold limit for claiming interest u/s. 24(b) for self occupied properties will be Rs. 2,00,000/- only, even though the ALV of two house properties is considered as NIL.

2. Taxability of Property held as stock-in-trade.

Sub-section (5) was inserted in Section 23 vide Finance Act, 2017 which provided that in case where property is held as stock-in-trade and the property or any part of the property was not let during the whole or any part of the previous year, Annual Letting Value (ALV) shall be taken as NIL for a period up to one year from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority.

Thus, no notional rent is chargeable to tax on such properties which were
held as stock-in-trade for a period upto one year form the end of financial Year
in which completion certificate from competent authority is received.

From A.Y. 2020-21 onwards, the benefit of non-taxability of notional rent for
a period upto one year in case of properties held as stock in trade is extended
to two years.

V. BUSINESS INCOME:

1. Section 40(a)(i)

Finance (No. 2) Act, 2019 has inserted second proviso to section 40(a)(i) to provide that if payment is made to a non-resident without deduction of tax and the assessee is not deemed as assessee in default in terms of proviso to section 201(1), then it is deemed that the assessee has deducted and paid the tax on date of furnishing of return by non-resident. Similar provision was already existing under section 40(a)(ia) for payments to resident.

2. Section 43B:

From A.Y. 2020-21 onwards, deduction in respect of interest payable on loans taken from deposit taking non banking financial company or non- deposit taking non banking financial company having total assets of not less than five hundred crore rupees as per the last audited balance sheet, will be allowable only on actual payment basis. In other words, if such interest for a financial year remains unpaid till the due date of filing return of income under section 139(1), the same shall not be allowed as deduction in that year.

3. Presumptive Taxation u/s. 44AD:

Upto AY 2019-20, an eligible assessee could declare 6% as profit rate u/s. 44AD in respect of the amount of total turnover or gross receipts which was received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.

From AY 2020-21 onwards, an assessee can declare the same 6% profit rate even on turnover or receipts through other digitalized mode of money transmission. Notification No. 8 of 2020 dated 29/01/2020 provides for following additional electronic modes:

1. Credit Card

2. Debit Card

3. Net Banking

4. IMPS

5. UPI

6. RTGS

7. NEFT

8. BHIM Aadhar Pay.

There is a similar amendment in section 35AD, 40A(3), 43(1), 43CA, 50C, 56(2)(x) and 80JJAA, where there is a requirement of payment through banking channels, the above notified modes of payments will also meet the requirements of these sections.

VI. INCOME FROM CAPITAL GAINS

Deduction u/s. 54 of Long Term Capital Gains on Sale of Residential House Property.

Deduction under section 54 can be claimed in respect of capital gains arising on transfer of capital asset, being long-term residential house property. This benefit is available only to an individual or HUF. The benefit can be claimed by purchasing or by constructing a residential house within a specified period. Upto AY 2019-20, the benefit of deduction u/s. 54 against the capital gain was restricted to the investment made in only one residential house in India.

From A.Y. 2020-21 onwards, the benefit of section 54 is extended, at the option of the assessee, to investment made in two residential house properties. However, this benefit can be availed only if the amount of such long term capital gains does not exceed ₹ 2,00,00,000/-. Further, if the assessee exercises this option, he shall not be entitled to exercise this option again for the same or any other assessment year. In other words, this benefit of deduction for investment in two residential houses can be availed of only once in the lifetime of an assessee.

1. Section 54GB:

Section 54GB provides for exemption from capital gain arising on sale of a residential house; in case the net consideration arising from sale of a residential property made upto 31.3.2019 is invested in start-ups.

Amendment is made in the section to cover within its ambit cases where the property is sold upto 31.03.2021 (from 31.03.2019).

Thus, a person who has sold specified asset during Financial Year 2019-20 can also avail the deduction under this section in his return of income of AY 2020-21.

Further the requirement of holding more than fifty per cent share capital or voting rights in the eligible company is reduced to twenty five per cent.

VII. CARRY FORWARD & SET OFF OF LOSS

Section 79 provides that in case of a closely held company, carry forward and set-off of loss is allowable only if on the last day of the previous year in which the loss is sought to be set off, the shares of the company carrying not less than 51% of voting power are beneficially held by the persons who beneficially held the shares of the company carrying not less than 51% of the voting power on the last day of the previous year in which the loss was incurred.

Finance Act, 2017 had amended Section 79 for eligible start-ups wherein it was provided that the loss would be allowed to be carry forward only if:

1. “all the shareholders” who held shares carrying voting power on the last day of the year or years in which the loss was incurred, continue to hold those shares on the last day of such previous year (when loss is intended to be set-off)

and

2. loss is incurred during the period of seven years beginning from the year of incorporation.

The implication of this amendment was that, if the eligible start-up failed to fulfill the new condition, the carry forward and set-off of loss will be denied even when the 1st condition of retaining 51% of beneficial ownership shareholder was fulfilled.

Finance (No. 2) Act, 2019 has now amended section 79 to provide that in case of an eligible start-up, carry forward & set-off of loss would be allowed if either of the two conditions are satisfied namely:

1. On the last day of the previous year in which the loss is sought to be set off, the shares of the company carrying not less than 51% of voting power are beneficially held by the persons who beneficially held the shares of the company carrying not less than 51% of the voting power on the last day of the previous year in which the loss was incurred.
   or

2. All the shareholders who held shares carrying voting power on the last day of the year or years in which the loss was incurred, continue to hold those shares on the last day of such previous year (when loss is intended to be set-off) and loss is incurred during the period of seven years beginning from the year of incorporation. Thus, there is no bar for admitting new share holders by fresh issue of shares and diluting the stake of existing shareholders below 51%.

VIII. TAX INCENTIVES:

2. Section 80C:

Central Government employees can now avail deduction u/s 80C also on contribution to Tire-II account of pension scheme referred to in section 80CCD, if the same is for a fixed period of not less than 3 years.

3. Section 80CCD:

Deduction u/s. 80CCD(2) is allowed in respect of employer’s contribution to the account of employee under the National Pension Scheme upto 10% of his salary.

From A.Y. 2020-21 onwards, the amount of deduction in respect of employer’s contribution for an assessee who is employee of Central Government is enhanced from 10% of the salary to 14% of the salary.

4. Section 80EEA:

From AY 2020-21 onwards, an individual assessee who is not claiming deduction u/s.80EE can claim deduction of upto ₹ 1,50,000/- u/s. 80EEA in respect of interest payable on loan borrowed by him from any financial institution for the purpose of acquisition of a residential house property, subject to fulfillment of following conditions:

1) Loan has been sanctioned during the financial year 2019-20,

2) the stamp duty value of house property does not exceed forty-five lakh rupees;

3) assessee does not own any residential house property on the date of sanction of loan.

Where deduction is claimed under this section for any interest, then no further deduction shall be allowed in respect of ‘such interest’ under any other provision of this Act [E.g. Section 24(b)]. However, in author’s opinion the term ‘such interest’ refers to only that part of total interest which is claimed under this section and hence the balance (if any) can be claimed u/s. 24(b), subject to threshold provided therein. Even the Hon’ble Finance Minister in her budget speech mentioned that the deduction u/s 80EEA will be over and above the deduction under section 24(b).

5. Section 80EEB:

Deduction u/s. 80EEB of upto ₹ 1,50,000/- will be allowed to an individual for interest on loan borrowed for purchase of an electric vehicle provided that the sanction of loan must be between 01/04/2019 to 31/03/2023. Further, it is also provided that the said interest shall not be eligible for any other deduction under any other provision of this Act [E.g. Section 36(1)(iii)].

6. Section 80-IBA:

The cut off date for approval of housing projects by the competent authority for being eligible to claim deduction under section 80-IBA is extended from 31.03.2019 to 31.03.2020.

Further. in respect of projects approved on or after 1st September, 2019, following modified conditions are introduced in order to avail benefit of deduction u/s. 80-IBA:

❖ The carpet area of residential units comprised in the housing project does not exceed the following area:

Sr. No.	Location of project	Carpet area of residential unit (in sq.mtrs.)
1.	within the specified cities [Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region)]	≤ 60
2.	Any place other than specified cities	≤ 90

❖ The area of the plot of land on which the project is situated is as follows:

Sr. No.	Location of Project	Area
1.	within the specified cities (as listed above)	> 1000 sq. mtr.
2.	Any place other than specified cities	> 2000 sq. mtr.

❖ The project is the only housing project on such plot of land as specified above table.

❖ The stamp duty value of a residential unit in the housing project does not exceed Rs. 45 lakhs.

❖ Where a residential unit in the housing project is allotted to an individual, no other residential unit in the housing project shall be allotted to the individual or the spouse or the minor children of such individual

❖ The project utilises the following percentage of permissible floor area under the rules to be made by the Central Government or the State Government or the local authority as the case may be:

Sr. No.	Location of project	Floor Area
1.	within the specified cities	≥ 90% of permissible floor area ratio
2.	Any place other specified cities	≥ 80% of permissible floor area ratio

❖ The assessee maintains separate books of account in respect of the housing project.

7. Section 80LA

With the view to incentivize operation of units of International Financial Services Centre, section 80LA is amended so as to provide that the deduction shall be allowed at 100% for any 10 consecutive assessment years out of 15 years beginning with the year in which the necessary permission was obtained.

IX. RETURN OF INCOME:

1. The scope of Section 139(1) is expanded so as to make it mandatory for an assessee (not being a company or firm) who otherwise may not be liable to file Return of Income, if:

   1. such assessee has deposited an amount (or aggregate of amount) in excess of ₹ 1,00,00,000/- in one or more current account maintained with a banking company or a co-operative bank, or

   2. such assessee has incurred expenditure in excess of Rs. 2,00,000/- for himself or any other person for travel to a foreign country, or

   3. such assessee has incurred expenditure in excess of Rs. 1,00,000/- towards consumption of electricity, or

   4. such assessee fulfils such other conditions as may be prescribed.

2. Further there were instances where assessee (being individual, huf, association of persons or body of individuals or artificial juridical person) earned huge capital gains on transfer of capital assets; however after claiming various deductions and exemption as provided in section 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB, their total income did not exceed the basic exemption limits and hence such assesses were not under any obligation to file their return of income.

   An amendment has been brought vide Finance (No.2) Act, 2019 applicable for returns filed for AY 2020-21 onwards, which provides that the persons in whose case, if the total income, before allowing the above mentioned deduction, exceeds the maximum amount not liable to tax, would also be required to file their return of income by the due date.

3. In the wake of Covid-19 several measures have been taken to ease the compliance burden on taxpayers. One of the recent announcement made by Hon’ble Finance Minister in the Press Conference dated 13.05.2020 is extension of all the due dates for filing return of income as provided in Section 139 from the existing due date, as specified therein, to 30.11.2020. Further, the due date for furnishing Tax Audit Report is also proposed to be extended from 30.09.2020 to 31.10.2020.

X. SECTION 9 : TAXATION OF MONETARY GIFTS RECEIVED BY A NON-RESIDENT

The Finance (No.2) Act, 2019 has inserted a new clause (viii) in Section 9(1) to provide that any income arising outside India, being any sum of money referred to in Section 56(2)(x), paid on or after 05.07.2019 by a person resident in India to a non-resident, not being a company or to a foreign company shall be deemed to accrue or arise in India.

This provision sets at rest the controversy as to the place of accrual of income in the nature of monetary gifts received outside India by a non resident person from a resident person. Such gifts will be deemed to accrue or arise in India and accordingly will be taxed in the hands of the recipient non-resident.

Even after the above mentioned amendments, the taxability of such gifts shall also depend on the provisions of relevant Double Taxation Avoidance Agreement (DTAA). Hence, if the provisions of DTAA are more beneficial, then the non-resident person can choose to apply the provisions of DTAA.

XI. START-UPS IMPLICATION FOR NON-COMPLIANCE OF NOTIFICATION

As per Section 56(2)(viib) where a closely held company, receives, from a resident person, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall be considered as income under the head ‘Income Form Other Sources’.

However, the above provisions are not applicable in case of a ‘Start ups’ claiming exemption u/s. 80-IAC, provided they fulfill certain conditions specified in the notification issued by the Central Government. (Ref: Notification No. 127(E), dated 19th February, 2019)

Finance (No.2) Act, 2019 by inserting a proviso to Section 56(2)(viib) has provided that in case of violation of the conditions specified in the notification by such start-ups:

1. Any consideration received for issue of share by such star-ups that exceeds the fair market value of such share shall be deemed to be the income for the previous year in which such non-compliance to the conditions specified in notification has taken place.

2. It shall also be deemed that the company has under-reported the income in consequence of the misreporting referred to in section 270A(8) & 270A(9).

XII. IMPORTANT CHANGES IN NOTIFIED FORM ITR-1 (SAHAJ) AND ITR-4 (SUGAM) – NOTIFICATION NO. 1/2020 DATED 03/01/2020.

1) Apart from the existing eligibility conditions in order to file ITR-1 or ITR-4, following new conditions are inserted:

1. In case where an assessee owns a house property in joint-ownership with two or more persons than he shall not be eligible to fill-up Form ITR-1 or Form ITR-4.

2. An assessee cannot opt to File Form ITR-1 in case where he is required to file return of income on account of mandate provided in seventh proviso to Section 139(1) [refer circumstances enumerated in ‘Para IX (a)’, above.]

2) Following new reporting requirements are inserted in Form ITR-4 (SUGAM):

1. In case if eligible assessee is required to file return on account of the circumstances provided in seventh proviso to Section 139(1), then, applicable clause is required to be selected.

2. In schedule-BP it is now mandatory for the assessee who is opting for presumptive taxation u/s. 44AD, 44ADA and 44AE or where assessee is not required to maintain books of Accounts, to report the following particulars of cash and bank transaction relating to presumptive business:

– Opening balance

– Receipts during the previous year

– Payments / Withdrawals during the previous year

– Closing Balance

Conclusion:

To quote Benjamin Franklin, in a letter to Jean-Baptiste Leroy, 1789, which was re-printed in The Works of Benjamin Franklin, 1817:

“‘In this world nothing can be said to be certain, except death and taxes.”

Every year, we see a lot of amendments in the Income Tax Act and all the professionals need to keep themselves updated about the same in order ro discharge their professional duties with diligence. Hope, this article will be helpful to the readers to comprehend the recent amendments as applicable for filing the returns of income for A.Y. 2020-21.