As tax changes like valuations fail to deliver results, 2021 will be an important year for tax administration in a country that wants to be the most attractive investment destination in the world.
The decision to collect GST tax information, revise income data returns, and eliminate income tax returns became the basis of cryptocurrencies and paved the way for the next step in the management of tax exchanges, which includes improving the value model of the GST.
With the start of tax reforms such as unprofitable investments, 2021 will be an important year for the tax administration in a country that dreams of becoming the most attractive investment destination in the world.
With the status of how the ministry taxes cryptocurrencies and streamlines taxes on tax evasion products and services (GST) to increase revenue, and how GST revenue is to behave in non-revenue states of the GST after June 2022, future work will be difficult. Payment assistance center.
As a landmark decision, the government lifted the reversal of the unfair exchange rate reversal in August before May 28, 2012.
To ensure tax collection, the new rules state that there will be no future tax refunds, and existing claims will be invalid if certain circumstances apply. . Money already paid / registered will be returned without any satisfaction for the fulfillment of the above circumstances.
Almost all 17 companies, including Cairn and Vodafone, which have been embroiled in a controversy with the government over the tax clawback law, have contacted the Treasury Department to withdraw and resolve the lawsuit.
In an effort to improve the process for taxpayers, the Treasury Department announced its new electronic income declaration portal in June. However, the portal was hit economically and participants complained that many did not exist.
The IRS is required to extend the date for filing I-T returns to taxpayers from July 31 to December 31, and it also has several other holidays due to compliance. At the same time, these lapses have partly disappeared, and as of December 15, 2021, 3.59 million income tax refunds (ITRs) have been reported via the new electronic data document.
As for fraudulent taxes, the GST has collected over one million rupees for the fifth consecutive month until November of this year. In April, it was 139,708 rupees, the highest since the new tax was announced in July 2017.
As part of a five-year process to pay states without GST revenue ending in June 2022, vendors and states have started deciding to remove certain items from the exclusion list and compile tax returns. to improve and strengthen tax rates. Income.
Currently, the GST is a 4-level slab construction between 5, 12, 18 and 28%. Essential goods are exempt or taxed at the lowest possible price, while luxury goods and fines are subject to the highest prices.
At the top of the highest slabs, luxury and excellence products are taxed. Tax revenue is used by the state to cover lost revenue due to the administration of the GST.
Regarding direct taxes, all eyes are on the current laws on cryptocurrencies and the amendments that can be introduced in the 2022 budget to clarify the taxation of these virtual currencies. Awaiting explanation of applicability of GST for cryptocurrency trading.
In 2018, the Reserve Bank of India (RBI) banned banks and other financial institutions from cryptocurrency trading services. However, this does not exempt you from paying taxes on cryptocurrency activities.
Sandeep Sehgal, director of taxation and administration at the tax and consultancy firm AKM Globals, said the 1961 Income Act does not contain specific guidelines for the taxation of cryptocurrencies. However, taxpayers will need to report their activity if they have invested in cryptocurrencies. what you get from that investment.
BDO India, Member and Managing Director of Taxation and Pranay Bhatia, says cryptocurrencies have captured the hearts of Indian investors and the government appears to be expanding its policies to regulate cryptocurrency trading in India. Bhatia added,
“However, the reality of the cryptocurrency tax industry outside of the above rules will need time to avoid unfair tax lawsuits and distress to traders.”
Rajat Mohan, senior partner at AMRG & Associates, said 2021 is a turning point in many tax changes, including reforms, tougher laws, closing property issues and clarifying tax complaints.
Some of the major changes in GST policy include interest only on cash payments, extending electronic submissions to all registrants with earnings of Rs 500 billion, and removing the required GST verification.
Direct tax is also experiencing significant changes in 2021. These include higher TDS / TCS rates if the non-ITR beneficiary does not report, TDS information at the time of purchase, shortened time to issue of the first ITRs, an increase in the initial tax audit to Rs. 10 billion, having pre-written ITRs and annual consumption of information.
Shailesh Kumar, member of Nangia & Co LLP, said that by 2021, the government will focus on broadening the tax base, strengthening the exchange of financial information between taxpayers and tax authorities and improving tax collection.
This year marks the first time that the anonymity process for the review process has been fully regulated.
This year, the Federal Annual Report (AIS) was announced, which aims to provide taxpayers with detailed information on every financial sector made by individuals paying taxes in one place.
This information is much higher than the previous Form 26AS, and there is no escape for taxpayers as even information that is not inferred by the TDS is published as a warning reported by the various News Agencies.