Page 16 - Seniors Today - February Issue
P. 16

Now, if a business has sales turnover of more
         than Rs. 10 crore in a year and buys goods
         of more than Rs. 50 lakh from a particular
         supplier, then the excess over Rs. 50 lakh will
         be subject to TDS at 0.1%, under sec. 194Q.
          PARTNERSHIP FIRM Sec.45(4) of the
         Income-tax Act already provides for taxation
         in the hands of a firm when there is a
         dissolution or reconstitution of a firm and if a
         Capital Asset has been given to the partner.
          Now some changes are proposed in sec.45(4)        There was a need for relief to the tourism sector, as hotels
         and a new sub-sec.4A is being introduced to        and restaurants have taken a big hit due to Covid, but this
         provide that not only a Capital Asset but even     did not happen
         if money or other assets are handed over to        the instalments of June 15 and September 15.
         a partner on dissolution or reconstitution,         This is a provision which is helpful to
         this can be taxable in the hands of the firm.      assessees.
         One must therefore be careful and take              REOPENING Certain changes are proposed
         proper advice before effecting a dissolution or    in the matter of reopening of assessments.
         reconstitution of a partnership firm.              Now there will be 3 periods within which
          ADVANCE TAX There is a benefit proposed           reopening can be carried out, in various
         here. Under sec. 234C of the Act, interest is      circumstances.
         payable on shortfall in payment of Advance-         (a) In some cases, reopening can be done
         tax. The instalments of Advance-tax are to be      only within 3 years of the end of the Asst.
         paid by June 15, September 15, December 15         Year;
         and March 15 of every financial year and one        (b) If the income or asset which has escaped
         would have to predict one’s income in order to     assessment is more than Rs. 50 lakh, then
         be able to pay Advance-tax properly.               reopening can be done within 6 years from
          Dividend from other companies is not              the end of the Asst. Year;
         predictable and therefore if a person were to       (c) If any income from foreign sources is
         receive dividend at the end of the year and        deemed to have been concealed the reopening
         had not paid Advance-tax on that dividend          can be within 16 years from the end of the
         in the earlier instalments, one would be liable    Asst. Year.
         for Interest under Sec. 234C.                       An important change being made is that
          Now the law is to be amended to say that          an assessment can be reopened only if there
         dividend will be subject to Advance-tax only       is evidence and not merely on the basis of
         after it is received and need not be taken into    suspicion.
         account in the earlier instalments.                 Time limit for Completing assessments.
          If, therefore, a company declares a dividend      Assessments now will have to be completed
         on say October 20, then the advance-tax with       within 9 months from the end of the Asst.
         reference to that amount of dividend will have     Year. So, for F.Y.2020-2021 relating to Asst.
         to be paid only in instalments by December         Year 2021-21, the assessment will have to be
         15 and March 15, and the dividend will not be      completed by 31st Deemb4er 2022.
         taken into account or treated as shortfall for      This shorter period is good because matters


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