AI for Tax Compliance : How It's Revolutionizing TDS Assessments in India

India's tax regime is undergoing a sea change with the introduction of Artificial Intelligence (AI) and Data Analytics. Tax Deducted at Source (TDS) evaluations, which previously had been based on human instincts, are now being managed by AI-powered automation and data analytics. It increases compliance, accuracy, and efficiency in calculating taxes, and business houses and chartered accountants are being forced to adopt such newer technology.

The Application of AI in TDS Evaluations

Artificial intelligence-based systems are transforming TDS evaluation services through automated procedures, identification of discrepancies, and reduction of errors. Earlier, manual reconciliation and data entry used to be performed, hence resulting in errors and inaccuracy in computation. AI-based platforms apply machine learning algorithms to reconcile transactions, enable accurate deductions, and meet government policies.

Key Advantages of AI in TDS Evaluations

Light heartedness to Enterprises for Engagement Adoption:

Use of AI for TDS auditing lightens the level of compliance attainable by companies without being bogged down by cumbersome weights of manual checks and adjustments.

How Data Analytics Facilitates TDS Compliance

Data analytics is especially applicable to enhancing TDS consultancy service by authenticating patterns, detecting possible frauds, and delivering tax deduction insights. In the era of generating vast amounts of financial information on a daily basis, sophisticated analytics solutions allow organizations to:

AI & Data Analytics in TDS Consultancy Services

Indian TDS consulting companies are further investigating the potential of AI and analytics in an attempt to deliver successful tax solutions to clients. Tax consultants are using AI-driven dashboards to evaluate tax liability, identify mismatches, and maintain legal compliances.

Book My Accountant, a leading tax and financial services brand, is at the forefront of this transformation. With its expertise in TDS assessment services, the company provides AI-driven solutions that simplify calculating and adhering to taxes.

Why Companies Need AI-Based TDS Consultancy Services

Firms in Bhubaneshwar, Kolkata, and Bangalore need professional consultancy in tax to handle the complicated TDS provisions. A professionally managed TDS consultancy firm Kolkata like Book My Accountant keeps firms up to date about changing tax laws without any interference of any human being.

In the same way, TDS consultancy Bhubaneshwar services also utilize AI-based analytics to assist in maximizing tax deductions and avoiding compliance problems. With the integration of AI, companies can automate repetitive tax activities, minimizing human intervention and enhancing accuracy.

For Bangalore companies, AI-based TDS consultancy Bangalore solutions make it an easy job to deal with taxes. From e-billing to auto-filing of tax, AI revolutionizes the process of how companies deal with TDS assessments.

How Book My Accountant Leverages AI & Data Analytics for TDS Compliance

Book My Accountant leverages AI solutions to provide easy TDS assessment services. The organization provides:

  1. Automated TDS Filings: Quick processing and timely compliance.
  2. Real-Time Tax Tracking: Real-time tax assessments through AI-based dashboards.
  3. Tax Solutions Personalized: Customized solutions for maximizing tax deductions to the extent and penalties avoided.
  4. Data-Driven Decision Making: Analytics-based to achieve increased accuracy and compliance with laws.

Deploying AI to TDS estimates is not the tomorrow dream but the reality for companies eager to match the pace with times in an age of tax automation.

Upcoming AI & Data Analytics Trends for TDS Assessments

The future of TDS computations in India will see increased developments in AI and analytics, including:

Since there is going to be more advancement in AI, organizations employing AI-founded tax consultants are going to have quicker, bug-free, and compliant TDS calculations.

Conclusion

Artificial intelligence and data analytics are revolutionizing tax deduction at source assessment services and making it fast, efficient as well as accurate. Book My Accountant offers industry-best TDS consultancy services in Bhubaneshwar, Kolkata, and Bangalore for implementing AI-based solutions for authentic taxes.

To experience the best-in-class AI-based TDS solutions, schedule an appointment with Book My Accountant today and enjoy a hassle-free experience of technology at tax.

Disclaimer

The above is general information. Material on this site is for general information purposes only. Readers are advised to consult a professional tax consultant before making any tax decision. Despite the exercise of care in updating information, Book My Accountant cannot be held liable for error or omission or loss arising from use of such information.

Major Income Tax Modifications for FY 2025-26: NIL Tax on Incomes up to Rs 12 Lakhs

Revised Tax Slabs

The budget introduces a restructured tax slab system to ensure a progressive taxation approach. The new tax rates are as follows:

New Income Tax Slabs for FY 2025-26 (as per Budget 2025)

Annual Income (₹)Tax Rate (%)
Up to ₹4,00,000No Tax
₹4,00,001 - ₹7,50,0005%
₹7,50,001 - ₹12,00,00010%
₹12,00,001 - ₹15,00,00015%
₹15,00,001 - ₹20,00,00020%
₹20,00,001 - ₹25,00,00025%
Above ₹25,00,00030%

This restructuring aims to provide relief to middle-income earners while ensuring that higher-income individuals contribute a fair share to the nation's revenue.

The Finance Minister's recent budget speech for the year 2025-26 has brought a revolutionary change in India's income tax scenario. This move is proposing people a great deal, especially those with an income of up to Rs 12 lakhs. In this blog, we shall introduce the main features and implications of the new income tax regime.

1. Exemption Limit: A New Beginning

Traditionally, the income tax exemption limit was Rs 2.5 lakhs for those who were less than 60 years old. In the following financial year, though, there was a surprise twist with those having income up to Rs 12 lakhs exempted from income tax. That is way higher than previous exemptions, and the idea is to lower tax on mid-level income earners.

2. Section 87A Extended Rebate

Most relevant among these extensions is the rebate under Section 87A for taxable incomes that have been lifted to Rs 12 lakhs. That is, such eligible assessee shall not only benefit from a bigger exemption limit but also from the rebate path. It must especially be noted in this regard that this rebate remains reserved only for resident individuals. Foreigners living in India or non-resident Indians are not eligible to claim it.

3. Tax Liability of Salaried Individuals

For salaried people, it is all the more useful. Although the minimum exemption amount is the same at Rs 4 lakhs, one can see that such people can be exempt from taxation up to a point of income of Rs 12.75 lakhs if one takes average deductions and other deductions into consideration. This brings the tax scenario for the salaried community more favourable, and they get to experience prosperity in terms of finance and consumption.

4. Special Rate Incomes: Clarification Needed

Though the new regulations have been welcomed with open arms, special rate incomes like Short-Term Capital Gains (STCG) have instilled fear.

These revenues are not liable for the rebate under the current clauses whether the aggregate revenue of the taxpayer is below Rs 12 lakhs. This provision of the new scheme has brought some ambiguity. Most of the taxpayers are enquiring whether they can avail themselves of the rebate scheme if their taxable revenue is mainly from such special sources.

5. Introduction of Marginal Relief

In order to avoid that the taxpayers suddenly find themselves bearing the tax burden as their incomes just cross Rs 12 lakhs, marginal relief has been provided for by the budget.

This is invoked when the taxpayer's income just crosses this threshold. The marginal relief provides that the tax levied on the income in excess of Rs 12 lakhs is never greater than the size of the excess income, in order to avoid so-called "tax trap." For example, a taxpayer can avail of a marginal relief of overall income of Rs 12,70,587, so that his total tax burden would be the size of the income in excess of Rs 12 lakhs.

6. Implications for the Taxpayer

These measures are aimed at having beneficial effects on tax payers. With an increase in the exemption amount and increasing the rebate under Section 87A, the government aims to increase the disposable incomes of citizens, which will be able to generate economic growth as well as consumption by consumers. It can also simplify the system of taxation, decreasing the compliance burden on individuals.

Other than that, marginal relief schemes are a thoughtfully generous favor for taxpayers' well-being. The budget cost of violating a tax limit could sometimes deter individuals from seeking further meritorious compensations that could hinder economic growth. Taxpayers have much to gain with such an enlightened step on the part of the government here in this budget, with increasing economic liberty.

Conclusion

The newly released budget of FY 2025-26 is a landmark for India's income tax situation, particularly with the inclusion of NIL tax for incomes up to ₹12 lakhs. In addition to lowering the tax burden for mid-income groups, this future-proof budget also promises to increase the economic growth by increasing the disposable income. The introduction to Section 87A and marginal relief also go towards establishing the government's aim of enacting a more progressive tax regime.

And all the while, taxpayers are trying to cope with all this and keep up to speed and seek advice from an expert, especially regarding special rate incomes and rebates qualifying.

Book My Accountant Talks

We, at Book My Accountant, are dedicated to guiding you through the implications of these tax reforms and helping you get the best out of the new regime. Our experts are ready to provide you with personalized advice and assistance according to your financial situation.

Greet this exciting new era of Indian taxation with optimism, and let us help you make the most of the possibilities of the future unfolding. We can construct foundations for a prosperous economic future together.

You may approach us at any time for any fact or assistance you may require regarding tax planning and compliances. Your welfare matters to us!

Top 5 Tax Consultants in Kolkata for 2025

You can overcome the challenges of taxation by consulting a professional who can forecast a better return on your investments. Expert tax planning and compliance advice is essential for entrepreneurs and those aiming to maximize tax returns. 2025 brought sharply increased demand for professional tax advisors, especially in large, bustling cities such as Kolkata. This article highlights the top five tax consultants in Kolkata, emphasizing their skills and services, including GST.

Book My Accountant

Overview

Book My Accountant is a top tax consultancy in Kolkata, offering complete tax solutions. They are a comprehensive financial resource, handling company formation and income tax compliance. Customized tax prep services maximize deductions and reduce taxpayer rates.

Services Offered
  1. Income Tax Filing: Customized tax prep services maximize deductions and reduce taxpayer rates.
  2. GST Services Kolkata: These include registration, filing, assessment, litigation and compliance and also comprises guidance on the confusions of the GST law for enterprises.
  3. Company Formation: They help new companies establish themselves and ensure that all necessary legal compliance is envisioned and implemented from the start.
  4. ROC Compliance: Comprehensive services for meeting the requirements imposed by the Registrar of Companies (ROC).
  5. TDS/TCS Services: Timely filing of TDS and TCS returns is essential to avoid penalties.
  6. Compliance Audit: Detailed audits to verify compliance with all relevant standards.
  7. Financial Planning: Continuous financial planning services aimed at generating a more effective financial plan for the clients.
Why Choose Them?

Book My Accountant, a top tax advisor, consistently earns high marks for credibility and reliability in Kolkata. They understand client needs and stay updated on tax laws to ensure compliance and maximize client benefits.

Goyal Tax Services Pvt. Ltd.

Overview

Goyal Tax Services Pvt. Ltd. has established itself as a firm known for its expertise in accountancy and taxation. They have also gained a loyal customer base through their proactive role as tax advisors.

Services Offered
  1. Tax Planning Services: These tax planning tools help the customers have a smaller tax liability as based on the corresponding financial status.
  2. GST Services Kolkata: At Goyal Tax Services Pvt. Ltd., one is provided with strong GST consultancy services and compliance to the dynamic GST landscape.
  3. Audit and Assurance Services: Comprehensive audits to provide transparency and compliance in financial reporting.
Why Choose Them?

Goyal Tax Services Pvt. Ltd.'s focus on client education and satisfaction has made it the top competitor in Kolkata. Their principal task is explaining technical tax concepts to its clients so they may be better informed when making decisions.

RSM India

Overview

RSM India has a strong market presence in the city of Kolkata and offers a broad range of professional services, such as tax consultants , audit and risk advisory services. Their international reach enhances their local expertise.

Services Offered
  1. Corporate Tax Services: They offer a comprehensive set of corporate tax planning and compliance services that businesses can tailor to their specific needs.
  2. GST Services Kolkata: Complete GST advisory services up through closing required for easier compliance of clients' business.
  3. Financial Advisory: Performance enhancement through tailored financial advisory services.
Why Choose Them?

With a global network, RSM India offers insights into local and international tax laws, making them a top choice for clients seeking a broader perspective.

Partha Das & Associates

Overview

Partha Das Associates is a boutique tax consultancy firm distinguished by its attention to personalized service and its dedication to meeting every client's individual requirements.

Services Offered
  1. Individual Tax Filing: Expertise in doing tax preparation for oneself, helping clients comply with personal tax liability as best they can.
  2. GST Services Kolkata: Awareness of GST so that business activities are carried out in an accurate manner.
  3. Transfer Pricing Services: Guide to transfer pricing, that is, of particular relevance to companies operating in foreign markets in respect to international trade.
Why Choose Them?

They are committed to providing clients a more personal and service focused relationship to which clients feel nurtured and listened to. They are able to design individual plan which is adapted to personas financial needs.

Saha & Associates

Overview

Saha Associates is a comprehensive financial consultancy firm that combines tax services with broader financial planning and consulting.

Services Offered
  1. Business Tax Compliance: Assisting businesses in ensuring timely and accurate tax compliance.
  2. GST Services Kolkata: They provide efficient GST services that businesses can use to mitigate the risk of non-compliance and enforcement.
  3. Strategic Tax Planning: There are strategic recommendations for personal and corporate taxes.
Why Choose Them?

Saha Associates combines experience with a client-focused approach, making it a reliable legal and tax consultancy in Kolkata. That, in their aim, is to the betterment of clients’ tax systems is commendable.

Conclusion

Selecting a top tax consultant in Kolkata is crucial for financial benefits and tax compliance. In Kolkata, various firms can meet your GST and tax planning needs in 2025, allowing you to choose one that fits your personal requirements.

We need to get in touch with any of the above mentioned consultants for customisable solutions with respect to taxation, particularly for GST related purposes in Kolkata. Their help gives the information to comprehend the intricacies of taxation and guarantee financial well being.

Implementation of Mandatory HSN Codes in GSTR-1 & GSTR-1A

What You Need to Know

From January 2025, GSTN started phasing in the implementation of mandatory HSN codes in Table 12 of both GSTR 1 and GSTR 1A. It is a step based on the correct reporting of tax that has minimal human errors and simplifies compliance for businesses across the nation.

Below is a blog that has broken down what HSN codes are, change that has been introduced in Phase III, and compliance steps that need to be followed by businesses in India.

What Are HSN Codes and Why Are They Important?

It is, in fact the Harmonized System of Nomenclature, or HSN-an internationally accepted classification of goods and services. It classifies products or services with a unique numerical code, thereby standardizing trade and tax systems.

HSN is important for Goods and Services Tax in India in the following manners:

The implementation of HSN codes must be done correctly, and GST registered entities should cover it.

Phase III Implementation: Key Changes

GSTN has brought phase III in the process of reporting of HSN Codes in GSTR -1 and GSTR-1A. Here are the critical changes in the same:

  1. Segmentation of Table 12
    • Table 12 divided into two heads:
      • B2B Supplies: Business-to-business.
      • B2C Supplies: Sales to consumers.
    • Separation gives clear clarity and easy reporting of supplies.
  2. Validations Rules of Supplies and Value of Taxation
    • These supplies and taxation reported values have the new validations developed which cross-matching will happen on this reported value of supplies.
    • The business must complete the submission during this time period, so the rule will initially serve as a warning due to the mismatching.
  3. Features associated with the upgraded user
    • Download HSN Code List now with a new button whereby taxpayers can download the latest HSN and SAC codes along with descriptions in the Excel format.
    • My Master now facilitates search on product descriptions, making it easy to decide which HSN codes to use.

Change in Detail

  1. Verification for B2B Supplies
    • Verification rules will be applicable on tables like:
      • 4A, 4B, 6B and 6C for registered recipient.
      • 9A, 9B, and 15A for Exports or to registered recipient. 
    • This verification is an adjustment of tax values with correct tax amount.
  2. Verification in B2C Supplies
    • We will verify the non-registered recipient on the table such as.
      • 5A, 6A, 7A, and 7B. Domestic Supplies for non-registered recipient.
      • 9A (Ex) and 10 or 15 for unregistered recipient.

Addressing Amendments

If they conduct a revaluation, they will compare it based on differential value to eliminate the reuse of similar data.

Business Implication

Phases III Changes to GST registered will have more substantial effects for tax payers as follows -What Businesses should know:

Benefits of the new system
Challenges to be Overcome

Steps to comply with Phase III

To align the business to the new needs and ensure compliance, the businesses need to do:

  1. Study the Advisory
    • Read the official advisory given by GSTN in detail and understand what is changed and its implications.
    • The complete guidance is available on the GST portal that can be referred to.
  2. Accounting System
    • Check whether your accounting and billing software has the facility of dropping down the codes of HSN.
    • If yes then collaborate with the software vendor also to make the changes
  3. Train Your Employee
    • Train those employees who are handling GST return, which will file returns along with new updations.
    • Completely educate them about the drooping system as well as newly implemented validation rule and all change
  4. Validation Warnings Monitoring
    • Develop a procedure in order to trace the validation warnings that are arising while filing of returns.
    • Clear up the mismatches at once so no further penalties should arise.

FAQs on HSN Code Implementation

Q1: Will the validation warnings prevent the returns from being filed?

No, in the initial days, the validation warnings will not stop the filing of returns. However, the business needs to correct the warnings so as not to incur improper compliance in the future.

Q2: How can I get the new list of HSN codes?

You can download the latest HSN and SAC codes from the GST portal by clicking on the "Download HSN Code List" button on Table 12.

Q3: Is the drop-down selection compulsory for all taxpayers?

No, HSN code entry cannot be done manually. All the taxpayers must choose the appropriate HSN codes available in the list.

Why Compliances Are Important

In case of non-compliance with the latest rule, among other issues, the following may be faced:

Companies can avoid such issues and maintain smooth compliance with GST regulations by raising awareness and taking proactive measures.

Conclusion
The introduction of HSN codes in GSTR-1 and GSTR-1A in Phase III is a major step toward the betterment of GST compliance and accuracy. Mandatory drop-down selection, validation rules, and enhanced features make the process easy for businesses and promote transparency in taxation.
For that, companies should update their systems, train the teams, and be vigilant for validation warnings. Need help?
Contact Book My Accountant for expert assistance with GST compliance, tax planning, and more. Together, let's simplify your tax journey!

Book My Accountant

55th GST Council Meeting Brings Relief to GST- Registered Taxpayer

Important to know for taxpayers concerning GST

It's a big thing for registered GST taxpayers who want to minimize the hassle of claiming input credit. Taxpayers under GST who filed GSTR-3B from 2017-2018 to 2020-2021 must be cautious, as authorities are issuing demands for late ITC claims. According to the GST law, they cannot claim ITC until return filing that affected many. They have missed the advantage of ITC and, thus, their output tax liability went high. Now is the new opportunity to correct the same and obtain the available ITC.

The 2024 Budget addresses taxpayer issues and simplifies the rectification of outstanding input tax credits from previous years. It was released on 8th October, 2024 in this regard. GSTN has permitted businesses to file amendments online until January 7, 2025. It mentions that Taxpayer has to complete the process before 9th April and up to 8th April to avail its benefits from it.

Understanding the Process of GST ITC Rectification

A Simple Guide to Businesses GST. It is one of the essentials involved in conducting any business in India. Input Tax Credit, as per the scheme, enables one to recover any tax that may have been levied on buying. Companies may get an ITC demand from the tax department to repay claimed ITC with penalties and interest. Well, it is again due to the process developed by the government which enables a company to rectify this mistake. Let us tell you how is GST ITC rectification and what this is to be used to correct it with reduced penal cost on businesses.

A GST ITC Demand Order: Something Went Wrong?

As a taxpayer, you monthly filed your GST returns, only to be shocked by a portal demand stating you exceeded your input tax credit limit, despite everything seeming fine on paper, necessitating further investigation. An error on the GST portal wrongly marked specific invoices. That is why a recovery demand order for excess ITC was sent.

The New Solution: GST Rectification Process

So, instead of paying the demanded amount, businesses have the option to file for rectification under the newly introduced GST ITC rectification process. This will provide the proper rectification of the errors that arise because of technical bugs without penalty and interest.

Step-by-Step Guide to Rectify an ITC Demand Order:

Here comes Step By step-by-step guide to File a rectification application on the GST portal as per the advisory of January 7, 2025

  • GST Portal Login Go to www.gst.gov.in and login through User Id and Password
  • Proceed Further Dashboard > Services > User Services > My Applications In the next,
    Select "Application for rectification of order," then click "NEW APPLICATION."
  • Fill All the Details Download Annexure A from the portal. Fill in details of your demand order and provide details of ITC wrongly claimed by you. Upload Annexure A in complete detail now.
  • Check Your Application: Check your application once and then click on "FILE".
  • Last step:  On the specified date, one application under three months will be shown for review. Cancellation of verification for old GST claims now allows outstanding ITCs to be credited to the GST ledger.

BMA Insight

This current trend of GST advisory measures in our views, at BMA, seems progressive ones aimed more towards improving issues of compliance problems and subsequently pre-ITC errors. IThis ability to correct unadjusted ITC is a relief for trade, but it highlights the need for flexible time limits to prevent future issues. Stiff rules around e-way bills and combined multi-factor authentication are strengthening security and transparency but sometimes raise a concern for compliance for small business enterprises.

We at BMA believe that if the government makes smooth implementation and support toward taxpayers sufficient, then these initiatives could bring out positive outcomes. The thrust must be towards easier compliance rather than introducing new complexities.

Gift Vouchers and GST: What the CBIC Clarified After the 55th GST Council Meeting

The latest round of scrutiny focuses on the Indian GST regime regarding the tax treatment of gift vouchers. The 55th GST Council meeting, held on June 24, 2022, provided much-awaited clarifications on the GST treatment of gift vouchers. This post aims to clarify the implications for both businesses and consumers.

Understanding Gift Vouchers Under GST

Gift vouchers or tokens have always been a unique category of transactions falling in the grey area of taxation. A gift voucher is an instrument you can redeem for goods or services. The CBIC clarified that businesses must tax vouchers under GST at the point of sale instead of at the time of redemption.

Essential Clarifications by CBIC

The CBIC has provided much-needed clarification regarding the GST treatment of gift vouchers. The key takeaways are as follows:

1. The CBIC defines a gift voucher as a financial instrument that enables the holder to purchase goods or services. Vouchers unrelated to specific products or services will be considered 'money' in the GST regime.

2. Timing of GST Liability: The Circular clarifies that GST liability on gift vouchers is to be levied on the recipient at the time of redemption, not at the time of sale. The supplier incurs GST liability only when the voucher is redeemed for goods or services, aligning with GST principles.

3. Whether Gift Voucher sale would attract GST Gift Vouchers will be less taxed if sold since selling the same may be more or less considered as a form of consideration. Therefore, businesses which already face GST on both their sales and redemptions may find this more reassuring.

4. GST Rates: The CBIC further clarified that the specific GST rates would be applicable when the recipient receives the goods or services purchased by the gift vouchers. The GST rate will correspond to the type of goods or services that the voucher redeems. If you use a coupon and your redemption falls within a specific income tax slab, you will receive payment according to that slab.

5. Exemptions: Depending upon the nature of goods or services involved in redemption, some types of gift vouchers will be exempt from GST. It would include basic requirements and educational purposes per GST law exemptions.

Impact on Business Operations

CBIC clarifications are beneficial to business houses, particularly the issuers of the gift voucher, as the above clarification of the issue when GST will be levied may help an enterprise to arrange their accounts well and improve their effectiveness in keeping tax compliance in view.

1. Cash Flow Management: The things discussed above will enable them to manage cash flow efficiently as, due to the traditional system, currently, cash flow is recorded at the time voucher is actually liquidated. The use of gift vouchers may enhance the liquidity of businesses, particularly in the retailing and hospitality sectors.

2. Increased Sales: Because GST is not charged at the point of sale, this leaves a more flexible scenario and persuades the customer to buy gift vouchers. This can boost sales, as consumers might buy vouchers without seeing tax at checkout.

3. Customer Confidence Boosts: This transparent guideline by CBIC would make customers confident of dealing commercially. They are sure that the amount of excess tax they should not pay except they wish to encash gift vouchers.

Customer Criticism for Long-overdue amendments under which CBIC

These are some long-overdue amendments under which CBIC has clarified that it treats this kind of GST.

1. More Value: The problem of gift vouchers offers value to the consumer since, when using a voucher, an immediate tax liability will not arise. This will offer better value as customers can use the full face value of the gift voucher when purchasing.

2. Informed Choices: The justification refers to the surcharges and tax implications of a gift card, which would let the consumers realize the scenario in order to make proper choices about their purchase behaviour.

Future

The CBIC's clarification is useful, but businesses still need to remain vigilant. The law of GST would keep evolving as new developments and changes might erupt.

1. Continuous Learning: Businesses monitor GST and tax rules for gift vouchers to ensure compliance.

2. Technology: Accounting technologies manage gift voucher sales and redemptions, ensuring compliance and efficiency.

3. Adaptation in Market Dynamics: Business entities need to get ready to respond

GSTR-9: All Documents Required Step-by-Step

The GST regime in India has altogether rewritten the indirect taxation landscape. In this scheme
of things, with such a multitude of compliance, GSTR-9 still remains one of the most crucial
annual returns that assimilate data from GSTR-1 and GSTR-3B. Book My Accountant takes
you through the nitty-gritty of filing GSTR-9, mandatory documents, and finer aspects of
applicable provisions related to GSTR-9C, all in this post.

Understanding GSTR-9

GSTR-9 is an annual return that every registered taxpayer under the GST framework is liable to
file. The taxpayer includes all outward and inward supplies in GSTR-9 for the fiscal year.
Filing GSTR-9 is important because it reflects all the sales, purchases, output tax liabilities, and input tax credits availed during the fiscal year in comprehensive detail.

Required Document for Filing GSTR-9:

Taxpayers must collect and prepare a lot of documentation to file GSTR-9 correctly. We list all the important documents required in detail below:

  1. GSTR-1 Returns: Collect all the details from the monthly or quarterly GSTR-1 returns, including all sales made during the financial year.
  2. GSTR-3B Returns: All the GSTR-3Bs filed throughout the year shall be collated as they will
    contain information about the taxes paid in GST.
  3. Invoices: Maintain sufficient sales invoices to substantiate the entries made in GSTR-1 and GSTR-3B.
  4. Purchase Invoices: Collection of purchase invoices to validate the input tax credits availed.
  5. Credit/Debit Notes: Provide all the credit and debit notes generated in a fiscal year, as they reflect the liability input credits associated with the same account.
  6. Stock Registers: These stock registers shall provide them with the required reconciling
  7. outward supplies disclosed and input credited.
  8. Receipts of Payments: Records relating to the payment of GST must be made for the
    purpose of displaying the proper record of compliance.
  9. Other Relevant Documents: In addition to these, the other relevant documents that would
    support the figures provided in the annual return of a taxpayer are kept properly clean. These include agreements, delivery challans, and all records that statutes prescribe.

Elements of GSTR-9

GSTR 9 comprises a list of elements, and each element will depict one characteristic of a
taxpayer's business activity

GSTR-9C and Its Applicability

GSTR-9C is the reconciliation statement, and all taxpayers of such specific categories must file
this statement. This GSTR-9C is filed only on the basis of annual turnover. All taxpayers are
required to file GSTR-9 along with GSTR-9C, which has a consolidated turnover of INR 2 crore
and more. GSTR-9C is the consolidated version of GSTR-9 as it reconciles the financial
statements audited by a Chartered Accountant.

Key Provisions and Guidelines to File GSTR-9C

  1. The said return is required by taxpayers whose turnover has crossed the prescribed
    threshold. It thus only suggests that proper financial reporting would be necessary in cases of
    turnover business.
  2. Reconciliation of annual returns with audited annual taxpayer accounts is a mandate in such
    a return to confirm whether the GST compliances have been accurate and, if true, the figures so
    reported.
  3. Professional support: Considering the complexity of reconciliation, professional help is the
    way for taxpayers to get it. It is of utmost importance to seek help from tax professionals to make sure all documents are prepared accurately so that discrepancies are minimized to the make sure all documents are prepared accurately so that discrepancies are minimized to make sure all documents are prepared accurately so that discrepancies are minimized to the fullest.

Common Errors to Be Avoided While GSTR-9 Filing:

Taxpayers should be vigilant about common mistakes they commit while filing GSTR-9.

They are :

Conclusion

Filing GSTR 9 is one of the critical components of taxpayer compliance in terms of goods and
services tax. Thus, knowing the documentation, as well as the GSTR 9C effect that comes with
it, goes a long way in improving the filing process. These services can be availed at Book My
Accountant to make compliance smooth, and all the documentation will be in check, along with
the risks mitigated accordingly.
This way, knowing the GST regime changes the filing requirements and the attendant
documents on the part of the taxpayer would enable it to fulfil them in a more efficient and
accurate manner.

New PAN cards containing QR codes: One step closer to a safe and efficient tax administration.

The PAN cards, or Permanent Account Number Cards, issued by the income tax department, is now in everyone's hands in a new-look version carrying a QR code, which should help identify a person's PAN more reliably and curb its misuse while easing taxpayer compliance. Let's see what this upgrade means for individuals and businesses, among its wider implications for the economy.

It is a newly released PAN card QR code.

Duly attached to this PAN card will be a high-tech QR code with all that is known about the individual, including personal and financial data, digitally signed to store and access safely.

QR code scanned:
  • Name
  • Date of Birth/Date of Incorporation
  • Father's name
  • PAN No.
  • Photograph and Signature

Application of the QR code feature takes place with both the physical PAN card and e-PAN. Despite improved technology ensuring a tamper-proof, it does not create other security that can be built upon for financial transactions and identity verifications.

Why does this change occur?

This initiative by the QR code addresses major issues in India's tax system:

  • Fraud Prevention: There are several people and agencies who misuse many PAN cards. Verification through QR code is easy, and therefore duplication fraud is totally avoided.
  • Case of Verification: The verification process of information is no more manual. Let alone these things, just scan the QR code and get relevant information.
  • Digital India Push: This also corresponds with the government's thrust under digital transformation in governance and tax compliance.

Important Benefits of the QR Code PAN Card:

This will benefit taxpayers and businesses in many ways, but also at the governmental level. For example:

  • Rapid Authentication Official Apps: Official PAN QR Code Readers can read the identity verification in real-time directly by finance and tax authorities on the spot, as well as businesses.
  • Greater Security: The QR code prevents tampering with and misuse of personal information and contains encrypted data as well as digital signatures.
  • Paperless Efficiency: The PANs of a taxpayer with QR codes would be accepted for all purposes, and the issuance of paperwork for it would decrease.
  • Business Identifier Integration: The QR code has simplified tax processes for companies because identifiers can easily be embedded into their systems.
  • Redressal Mechanism: This results in a shorter verification time, thereby reducing the delay for PAN-related redressals.

How does one read the QR Code?

  1. You can scan the QR code on my PAN card.
  2. Then download the PAN QR Code Reader from your app store.
  3. Now, fire up the application and enable the camera. Scan the QR code of your Physical / e-PAN Card.
  4. All the details from your PAN card are securely rendered within the application.

This applies to the older PAN Cards. All the PAN cards issued before the coming of QR codes are valid. However, there is no compulsion to upgrade a PAN card unless an upgradation is desired, but the upgraded PAN card has extra benefits of ease and security, permitting frequent users like business houses and financial institutions without creating any hitch or difficulty.

PAN-Aadhaar Linking: Leap of Faith

The new system is quite useful only in the context of linking PAN with Aadhaar. Linking PAN with Aadhaar kills duplication of PANs and, at the same time, provides a single source of authentication. Interestingly, linking one's PAN to an Aadhaar is pretty easy.

It can be done online or even through an SMS.

  • Go to the income tax e-file site.
  • Fill in the PAN and Aadhaar number.
  • Follow these steps until the final process.

So, reconcile PAN and Aadhaar details so that the difference does not remain.

Impact on the Individual Business:

For humans

Pan card QR code: It is provided with panache, through which one can access personal details; it is fast, completely paperless and secures all transactions. It also simplifies the processes of opening accounts and filing tax returns.

For Businesses

It streamlines verification, be it with regard to vendors or employees, making the operations of business fraud-free and smooth. The existence of the same QR codes also supports compliance with tax law processes.

For Financial Institutions

In that context, institutions such as banks and mutual funds can verify identities within a few seconds, making KYC quicker and shorter in length. Digital Transformation in Tax Governance This marks the government's commitment to a transparent, efficient, and technology-driven tax system. It aligns with wider efforts such as GST and e-invoicing, which, along with the digitization of financial processes that had been proposed after all these years, were finally implemented.

FAQs on the new PAN Card QR Code:

1. Are QR codes mandatory in all PAN cards? An old PAN card is valid. The new PAN card will include the QR code facility as it will be updated.

2. Can I get my PAN card printed with a QR code? You can apply for a reprint of the PAN card to have the QR code.

3. How does that help in preparing your tax? The QR code has streamlined the process of identity proofing during tax filing, making it quicker and more secure.

4. Is an e-PAN containing a QR Code valid? The e-PAN replete with the QR code shall be valid and accepted by all wings for official purposes only.

Book My Accountant (BMA) serves as your trusted tax partner, guiding you through the constantly changing tax landscape. Our team stays well-informed about all the latest developments to ensure you receive accurate guidance.

Why Choose Us?

Help from pan-related experts for queries. Seamless PAN-Aadhaar linking services. Complete end-to-end tax compliance and financial planning support. Whether you’re an individual or a business, we’re here to make your tax journey hassle-free.

Contact us today to experience professional and reliable service.

Conclusion

Introducing a new tax administration with QR codes on PAN cards makes it even safer and falls into the vision of having a digital economy for Indians. Upgrade your PAN card and experience this easy, paperless, efficient method of verification.

Get more information and book now at Book My Accountant

Call at +91 78 9000 2000.

Can't wait to see you all in the great tax world that's changing.

TDS on Metal Scrap under GST: A Complete Guide

The Indian government has brought into effect new TDS provisions under the framework of Goods and Services Tax-specifically targeting all transactions in the form of metal scrap. With effect from 10 October 2024, these rules are aimed at improving tax compliance and transparency in the scrap materials sector. Let us dive into this and see what it will mean for the businesses buying and selling metal scrap.

What is TDS in GST for Metal Scrap?

TDS is a mechanism where tax is deducted at source at the time of making payment to the seller. Based on the latest GST rules, businesses, whose subject of business is procurement of metal scrap, are dutifully liable to deduct TDS at the time of entering into qualifying transactions.

And the transactions which attract TDS are under Chapter 72 to Chapter 81 of the Customs Tariff Act 1975, which comprises of:

Important Provisions of the TDS Rule

TDS shall apply on metal scrap under GST if the aggregate value of supplies exceeds ₹2,50,000 per transaction. The taxable value of scrap material will be deducted for deduction, and not the total invoice value.

Rate of deduction is provided as 2%, split as below:

Who must deduct TDS?

The Ministry of Finance issued Notification No. 25/2024-Central Tax on October 9, 2024, amending the earlier Notification No. 50/2018-Central Tax to clarify the Tax Deduction at Source (TDS) provisions under Section 51 of the CGST Act, 2017. Section 51 of the CGST Act 2017 deals with the mechanism of Tax Deduction at Source (TDS).

TDS provisions under Section 51 of the CGST Act shall not apply to the supply of goods or services between certain categories of persons specified in clauses (a), (b), (c), and (d) of sub-section (1) of Section 51 except for those specified in clause (d).

Process for becoming compliant

If you are a buyer dealing with metals scrap, here is what you need to do to become compliant with the new GST rules:

Obtain a Separate GST Registration

The buying party would be required to apply for a separate GST registration under REG-07 in order to start deducting TDS. Subsequently, the buyer can claim TDS on eligible transactions with which they will have to file a return month under Form GSTR-7. Simultaneously, the system generates a certificate of TDS, just like Form 16A under the Income Tax Act, after filing GSTR-7.

File Monthly Returns

The buyers who deduct TDS are liable to file GSTR-7 for the month. The return should be filed by the 10th of the next month where a payment liability will arise along with the return filing. This return should state the amount of TDS deducted.

Provide TDS Certificates

Once the return is filed by the purchaser, he shall issue the TDS certificate, GSTR-7A, to the supplier. Therefore, he would get the TDS credit to his ledger of cash at the end of every month.

TDS not Applicable in Respect of Metal Scrap

It is another important aspect that TDS under GST is not levied upon importing the metallic scraps. It does not draw any TDS deduction under such rules if the buyer imports scraps from abroad.

Conclusion

The introduction of TDS on metal scrap under the GST is perhaps a landmark to ensure better tax compliance in the industry. With the above move, the government has consequently mandated 2% TDS on all transactions, with an element of transparency and accountability that can be availed by the suppliers in due time.

Ensure your business is GST compliant with these new provisions by registering for GST TDS and the timely returns filing, contact Book My Accountant today for help with GST registration, TDS filing, and much more in accounting.

Vivad se Vishwas Scheme, 2024 of Direct Tax: Simplifying Tax Disputes Resolutions

At Book My Accountant, we well understand the plight of taxpayers who cannot manage unresolved tax disputes. To reduce this concern, the Central Government has brought in the Direct Tax Vivad se Vishwas Scheme, 2024. The scheme aims to ease legal disputes by offering a direct tax solution for many struggling individuals. Let us take a closer look into this scheme and how it can help you.

What is the Direct Tax Vivad se Vishwas Scheme, 2024?

The Direct Tax Vivad se Vishwas Scheme, 2024 was enacted under section 99 of Finance Act, 2024, and is expected to come into effect from October 1, 2024. This scheme aims to expedite tax dispute resolution without burdening appellate authorities, benefiting taxpayers and the Income Tax Department.

Who Can Benefit From the Vivad se Vishwas Scheme?

This Scheme shall benefit :

  • An Appellant who files an appeal, writ petition or special leave petition.
  • A person against whom an appeal has been filed by the Income Tax Department.
  • Any one whose case is pending in the Supreme Court, High Court, ITAT or Commissioner (Appeals) as on July 22, 2024.

This applies to objections before the DRP under Section 144C of the Income Tax Act where directions remain pending as of July 22, 2024, or are incomplete.

Eligible Key Steps to Apply

Taxpayers must submit their relief claim under the Vivad se Vishwas Scheme via Form 1 on the Income Tax portal. On filing, the declaration would be verified by the designated authority. Upon confirmation, the designated authority calculates and informs the appellant of the amount due within 15 days via Form 2.

How is the Amount Payable Calculated?

Amount payable under the scheme will depend upon the following factors:

  • Disputed Tax Cases: If an appeal is made after January 31, 2020 and was pending as of July 22, 2024, then the taxpayer is liable to pay the disputed tax that will carry cess and surcharge. But if petitioning is done during or before January 31, 2020, then a penalty of 10% on the amount of the disputed tax will be levied. If the amount is not paid till December 31, 2024.
  • Disputed Interest, Penalty, or Fee: Appeals concerning disputed interest, penalty or fee shall start requiring from January 31, 2020 onwards to pay 25% of the amount in dispute. Appeals to the date filing January 31, 2020 shall request a payment of 35% of the amount in dispute and the deadline date will remain on December 31, 2024, and thereafter draw additional penalties.

If the appeal is filed by the Income Tax Department, it is 50% of the disputed amount that the person will have to pay.

Advantages of the Scheme:

Applying the Direct Tax Vivad se Vishwas Scheme, 2024 can significantly reduce your tax liability and help resolve pending tax issues effectively.

"According to experts- Ashish Chorasia, Taxation Head, S.K. Dhanania & Co. this is to be availed by individuals whose income is less than Rs 50 Lakhs with not much variation in the assessed income. This will have lower liabilities for eligible taxpayers under DTVSV 2024 compared to E-DRS."

Important Considerations

Amount paid under the scheme No refund Any amount paid under the scheme is non-refundable. However, if an excess payment has been made before filing Form 1, the excess amount (without interest) will be refunded. Appeals The following are not eligible for this scheme:

  1. Search assessments
  2. Cases wherein undeclared income/asset is abroad, or
  3. Prosecution has started.

In the case that a statement was found to be false then, the declaration shall become invalid.

Conclusion: Why Opt for the Vivad se Vishwas Scheme, 2024 to Resolve Tax Disputes?

The Direct Tax Vivad se Vishwas Scheme, 2024 offers taxpayers a chance to resolve tax disputes at a lower cost. The Vivad se Vishwas Scheme resolves tax matters, offering relief from litigation, financial burdens, and providing peace of mind. Book My Accountant encourages eligible taxpayers to look into this opportunity and realize its benefits.

For more information and to schedule assistance in filing under the Direct Tax Vivad se Vishwas Scheme, 2024, call Book My Accountant today. Our experts will be here to guide you through the process and help you reach a smooth resolution of your tax disputes.

Disclaimer 

This document is general information and is not intended to be advice or legal opinion on any matter. Readers should seek appropriate professional advice before acting on the basis of any information contained herein.
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