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The Indian government has introduced a GST Amnesty Scheme under Section 128A of the CGST Act , offering taxpayers relief from interest and penalties on demand notices issued under Section 73 for past financial years. This scheme is a great opportunity for businesses to clear their pending tax liabilities without additional financial burdens. 🔹 What is the GST Waiver Scheme? The scheme allows taxpayers to settle their pending GST dues from FY 2017-18, 2018-19, and 2019-20 without paying any interest or penalties. This initiative is aimed at helping businesses that may have faced compliance challenges during the initial years of GST implementation. 📌 Key Highlights of the Scheme ✅ Complete Waiver of Interest & Penalty – Taxpayers will not have to pay any interest or penalties if they settle their tax liabilities under this scheme. ✅ Applicable for Demands Raised under Section 73 – This waiver applies to demand notices issued under Section 73 of the CGST Act , which pert...

Introduction The Government of India has introduced a GST Amnesty Scheme under Section 128A to provide relief to taxpayers who have pending GST liabilities from the financial years 2017-18 to 2019-20 . This scheme allows businesses to clear their past dues by March 31, 2025, and apply for a waiver of penalties and interest . If you have any outstanding GST dues, this is your chance to settle them without heavy penalties . Read on to understand how you can benefit from this one-time relief scheme. What is the GST Amnesty Scheme? The GST Amnesty Scheme is a relief measure introduced by the government for taxpayers who failed to file their GST returns or pay taxes on time in the initial years of GST implementation (FY 2017-18 to FY 2019-20). Under this scheme, businesses and individuals can pay their pending GST dues by March 31, 2025, and apply for a waiver on interest and penalties . Who Can Avail the GST Amnesty Scheme? ✅ Taxpayers who have missed filing GST returns from 20...

As the financial year 2024-25 nears its end, businesses engaged in e-commerce transactions must ensure compliance with the Equalisation Levy . The due date for the Equalisation Levy deposit for the January - March 2025 quarter is 31st March 2025 . Failing to deposit the levy on time may lead to penalties and interest charges , making timely compliance essential. What is the Equalisation Levy? The Equalisation Levy is a tax introduced by the Indian government to ensure fair taxation of digital transactions. It applies to non-resident e-commerce operators who provide services to Indian customers. 🔹 Introduced under the Finance Act, 2016 , the levy initially applied to digital advertising services. 🔹 Extended in the Finance Act, 2020 , it now includes e-commerce transactions such as online sales, services, and digital platform usage . Who Needs to Pay the Equalisation Levy? The Equalisation Levy applies to: ✅ Digital advertising services availed from non-resident compani...

As the financial year 2023-24 comes to a close, taxpayers who have foreign income must ensure timely compliance with Form 67 filing to claim their Foreign Tax Credit (FTC) . The deadline for submitting Form 67 is 31st March 2025 , and failing to do so may result in the loss of the foreign tax credit benefit. What is Form 67? Form 67 is a mandatory document required to claim Foreign Tax Credit (FTC) under Section 90, 90A, and 91 of the Income Tax Act, 1961 . If you have foreign income on which tax has been deducted or paid overseas , you must file Form 67 to avail of tax credit and avoid double taxation. Who Should File Form 67? Any taxpayer who has: ✅ Earned income from a foreign source (salary, business income, dividends, interest, etc.) ✅ Paid or deducted tax overseas on such foreign income ✅ Wants to claim credit against Indian tax liability for the taxes already paid abroad Key Requirements for Form 67 Filing 📌 Submit a statement of the total foreign income earne...

For small businesses and taxpayers looking for a simplified GST compliance process , the Composition Scheme offers a great opportunity. To avail this scheme for FY 2025-26 , eligible taxpayers must file Form GST CMP-02 by March 31, 2025 . Let’s dive into the details! 🔹 What is GST CMP-02? GST CMP-02 is a declaration form that must be filed by normal taxpayers who wish to opt for the Composition Scheme . By opting for this scheme, businesses can pay a fixed percentage of turnover as tax and enjoy easier compliance requirements compared to regular GST filings. 🔹 Who Needs to File GST CMP-02? Any taxpayer registered under GST as a normal taxpayer can opt for the Composition Scheme by filing CMP-02 before the start of the new financial year. This is particularly beneficial for: ✅ Small businesses with annual turnover up to ₹1.5 crore (₹75 lakh for specific states). ✅ Manufacturers, traders, and restaurants (excluding alcohol-serving ones). ✅ Service providers with turnover...

If you have earned income from foreign sources and paid taxes outside India, you may be eligible to claim a Foreign Tax Credit (FTC) under Indian tax laws. To avail of this benefit, it is mandatory to file Form 67 within the prescribed deadline. The due date for filing Form 67 for the Financial Year (FY) 2023-24 is March 31, 2025 . In this blog post, we will explain the importance of Form 67, its filing process, eligibility criteria, and key deadlines. What is Form 67? Form 67 is a crucial document that must be filed to claim Foreign Tax Credit (FTC) under Section 90 and Section 91 of the Income Tax Act, 1961. This credit allows taxpayers to offset taxes paid in foreign countries against their tax liability in India. Who Needs to File Form 67? Any taxpayer who has: ✅ Earned income from a foreign source ✅ Paid taxes in a foreign country on that income ✅ Wants to claim a Foreign Tax Credit (FTC) in India This applies to individuals, companies, and other entities that have...

The Indian government has taken a significant step toward strengthening the Micro, Small, and Medium Enterprises (MSME) sector by revising the classification limits for investment and turnover . This new regulation will be effective from April 1, 2025 , as per Notification No.: S.O. 1364(E), dated 21st March 2025 . This change will enable businesses to expand operations, access government benefits, and contribute more to the economy . If you are an MSME owner or planning to register as one, here’s everything you need to know about the updated MSME classification criteria . 📌 New MSME Classification Limits (Effective from April 1, 2025) Enterprise Category Current Investment Limit Revised Investment Limit Current Turnover Limit Revised Turnover Limit Micro Enterprises ₹1 Crore ₹2.5 Crore ₹5 Crore ₹10 Crore Small Enterprises ₹10 Crore ₹25 Crore ₹50 Crore ₹100 Crore Medium Enterprises ₹50 Crore ₹125 Crore ₹250 Crore ₹500 Crore 🔹 Key Benefits of MSME Reclassification 1. Increased A...

Timely compliance with tax regulations is essential to avoid penalties and ensure smooth financial operations. One such critical tax obligation is the Tax Deducted at Source (TDS) payment under various sections of the Income Tax Act. Important Details for TDS Payment – February 2025 🔹 Applicable Sections: 194-IA, 194-IB, 194M, 194S 🔹 For the Month of: February 2025 🔹 Due Date: 30th March 2025 Now, let’s understand these sections and their applicability. Understanding the TDS Sections: 194-IA, 194-IB, 194M, and 194S 1. Section 194-IA – TDS on Purchase of Immovable Property Applicable when purchasing immovable property (excluding agricultural land) for a value of ₹50 lakh or more . TDS Rate: 1% of the transaction value. Who Pays? The buyer is responsible for deducting TDS before making the payment to the seller. 2. Section 194-IB – TDS on Rent Paid by Individuals/HUFs Applicable when an individual or HUF (not subject to tax audit) pays rent exceeding ₹50,000 per...

As the financial year 2024-25 comes to an end, it’s crucial to complete your tax-saving investments before the deadline on March 31, 2025 . Taxpayers can reduce their taxable income by making eligible investments and expenses under various sections of the Income Tax Act, 1961 . Missing this deadline could mean losing out on valuable tax benefits. In this blog, we’ll explore different tax-saving options available to individuals and how you can maximize your deductions before the deadline. Why is March 31, 2025, Important? March 31st marks the end of the financial year, and any tax-saving investments or expenses made after this date will not be considered for deductions in FY 2024-25 . If you haven't yet utilized the available tax benefits, now is the time to act. Tax-Saving Investment Options 1. Section 80C – Maximum Deduction up to ₹1.5 Lakh One of the most popular tax-saving sections, 80C , allows deductions for investments and expenses up to ₹1.5 lakh. Here are some eligib...

As the financial year progresses, taxpayers under the QRMP (Quarterly Return Monthly Payment) scheme must ensure timely compliance with GST payment requirements. The due date for filing PMT-06 for the month of February 2025 is 25th March 2025 . What is PMT-06? Form PMT-06 is a challan used by taxpayers under the QRMP scheme to pay their monthly GST liability . The amount deposited through this challan gets reflected in the Electronic Cash Ledger and is used for tax payment while filing GSTR-3B quarterly . Who Needs to Pay via PMT-06? Taxpayers who have opted for the QRMP (Quarterly Return Monthly Payment) scheme must pay tax for the first two months of the quarter using PMT-06 . The final tax adjustment is done while filing GSTR-3B for the entire quarter . QRMP Scheme Eligibility: ✔ Businesses with annual aggregate turnover up to ₹5 crores in the preceding financial year. ✔ Taxpayers who opted for quarterly filing of GSTR-3B under the QRMP scheme. Purpose of PMT-06 Pa...

What is Form 3CEAD? Form 3CEAD is a crucial report required under Section 286 of the Income-tax Act, 1961 . It is used for country-by-country (CbC) reporting by parent entities, alternate reporting entities, or other constituent entities in India. The form ensures compliance with international tax transparency and Base Erosion and Profit Shifting (BEPS) guidelines. Who Needs to File Form 3CEAD? Entities that are part of a multinational enterprise (MNE) group with a consolidated revenue of ₹6,400 crores or more in the preceding financial year must comply. This includes: ✅ Parent entity of an MNE group in India ✅ Alternate reporting entity nominated by the MNE group ✅ Any other constituent entity resident in India Purpose of Form 3CEAD To ensure transparency in global income reporting . To prevent profit shifting and tax avoidance . To provide Indian tax authorities with a clear picture of MNE group activities . Due Date for Filing – FY 2023-24 📅 Deadline: 31st March 20...

The Finance Act 2025 has introduced Section 194T , which mandates the deduction of TDS on payments to partners under specified conditions. This provision will come into effect from 1st April 2025 , impacting partnership firms making payments to their partners. 1. What is Section 194T? Section 194T of the Income Tax Act imposes a 10% TDS deduction on certain payments made by a partnership firm or LLP (Limited Liability Partnership) to its partners when the threshold limit is exceeded. 2. Key Provisions of Section 194T 📌 Applicability: ✔️ Applicable to all partnership firms and LLPs making payments to partners. ✔️ Effective from: 1st April 2025 . 📌 Threshold Limit: ✔️ TDS is applicable only if the total payments to a partner exceed ₹20,000 per annum . ✔️ If the payments remain below ₹20,000 in a financial year, TDS is not required . 📌 TDS Rate: ✔️ 10% TDS will be deducted on eligible payments exceeding the threshold limit. ✔️ The deducted amount must be deposited wi...