Enjoy the colors of GST and Income Tax in this Holi

Arjuna (Fictional Character): Krishna, Holi is the festival of colours. It signifies the triumph of good over evil. On the occasion of Holi, which colours have the government brought in GST and Income Tax?

Krishna (Fictional Character): Arjuna, every year, Holi is played with lots of colours and zest. This Holi, the Government has mixed various colours and spread happiness, as well as brought worries to the taxpayer.

Arjuna (Fictional Character): Krishna, Pink colour is considered as a mark of joy and happiness. What changes are brought by the Government similar to the Pink colour?

Krishna (Fictional Character):  Arjuna, Government has proposed the GST Amnesty scheme in the 49th GST council meeting which has brought joy and happiness among the taxpayers for the cases :

1. Where the application for revocation has not been made earlier within the prescribed period.
2. Where the assessment order has been issued but the return has not been filed within 30 days of the order. This amnesty scheme will be available if the return is filed along with Interest and Late Fees for which the Assessment order is issued irrespective of the fact whether the appeal has been filed or decided.
3. In respect of filing pending returns in Form GSTR-4, GSTR-9, and GSTR-10 by way of conditional waiver/reduction of Late Fees.

Arjuna (Fictional Character): Krishna, Is the new tax regime a YELLOW signal for taxpayers in Income Tax?

Krishna (Fictional Character):  Arjuna, Yellow is the colour of happiness, mind and intellect. The Taxpayers should calculate their tax liability under the old tax regime and new tax regime and select the appropriate option which results in minimum tax liability. In the new scheme the rate of tax is less as compared to the old scheme of taxation but the catch here is, cannot claim various deductions such as Interest paid on Housing Loans, LIC Premium Paid, PPF Contribution etc. which were allowed under the old scheme of taxation.

Arjuna (Fictional Character): Krishna, what does the RED colour denotes in Income tax?

Krishna (Fictional Character): Arjuna, the Red colour signifies danger, fear and difficulty. It is now mandatory for suppliers to make payments to MSME within the prescribed time. The government has proposed to add a new clause to section 43B which will allow deductions of payment to MSME only if payment is made within the timeline specified in the MSMED Act. Also, proviso to the 43B which states payment can be made till the filing of an income tax return does not apply to this provision. 

Arjuna (Fictional Character): Krishna, which colour of Income Tax is irremovable i.e. varnish?

Krishna (Fictional Character): Arjuna, Many amendments have been made in the Income Tax Act about provisions applicable to Charitable and Religious Trusts. The government is trying to regulate the Trust sector as there is more tax evasion in this sector.

Arjuna (Fictional Character):  Krishna, How will be Holi for GST taxpayers?

Krishna (Fictional Character): Arjuna, The government has introduced Sec16(2)(aa) where the taxpayer can claim ITC in GSTR-3B only if it is reflected in GSTR-2B. The taxpayers are worried in the same way as people get worried when someone throws a water balloon at them.

Arjuna (Fictional Character): Krishna, what can the taxpayer learn from Multicolored GST and Income Tax?

Krishna (Fictional Character): Arjuna, In Income tax and GST, the taxpayer should disclose his true income and accordingly should pay tax and file a return. The white colour signifies purity, cleanliness and truth. The taxpayer looks good in white colour only. But due to black money, it is difficult to find white taxpayers.