Tax & Regulatory Updates: July 2019
Direct Tax Updates
In Circular No. 13/2019 , CBDT has clarified that pensions granted to members of His Majesty 's naval, military or air forces who have been invalided for naval, military or air force service on account of bodily disability attributable to or aggravated by such service would be exempt from tax under the Indian Income Tax Act, 1922. Further, such tax exemption will be available only to armed forces personnel who have been invalided from service on account of bodily disability attributable to or aggravated by such service and not to personnel who have been retired on superannuation or otherwise..
In Circular No. 11/2019 , CBDT has clarified that where total income of an assessee includes any income referred to in section(s) 68/69/69A/69B/69C/69D of the Act, no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee under any provisions of the Act in computing the income referred to in section 115BBE(1) of the Act.
Indirect Tax Updates
In a summarised press release issued by CBIC about the transition plan to the new Goods and Services Tax (GST ) return,the new return will be implemented on trial basis between July to September 2019. The taxpayers will continue to file Form GSTR-1(details of outward supply)and GSTR -3B (summary return ) for the said period.
The Gst Council in its 35th meeting extended the date for filing annual return under the Goods and Service Tax (GST) regime by two months to August 30. The Council also decided to introduce a new GST return filing system, which will be applicable from January 1,2020.