If you are an Indian taxpayer, you may receive a notice under Section 148A of the Income Tax Act. This notice is issued by the Income Tax Department to initiate proceedings for re-assessment of your income. In this article, we will discuss what is a notice under Section 148A, the reasons for its issuance, and the steps you should take if you receive one.

What is a notice under Section 148A of Income Tax?

A notice under Section 148A of the Income Tax Act is issued by the Income Tax Department to initiate proceedings for re-assessment of a taxpayer’s income. It is issued if the Income Tax Department has reason to believe that the taxpayer’s income for a particular year has escaped assessment. The notice requires the taxpayer to file a return of income for the relevant year within 30 days.

Reasons for Issuance of Notice under Section 148A:

The Income Tax Department can issue a notice under Section 148A for various reasons. Some of the common reasons for its issuance are:

1. Failure to file a return of income
2. Non-disclosure of income or assets in the original return
3. Incorrect computation of income
4. Misrepresentation or suppression of facts
5. Non-disclosure of foreign assets or income

Steps to be taken on receipt of notice under Section 148A:

If you receive a notice under Section 148A, you should take the following steps:

1. Verify the details: Verify the details mentioned in the notice, such as the assessment year, the amount of income in question, and the reasons for re-assessment.
2. File a return: If you have not already done so, file a return of income for the relevant assessment year within 30 days of receiving the notice.
3. Seek professional help: Seek professional help from a chartered accountant or a tax lawyer to understand the reasons for re-assessment and to prepare your response.
4. Respond to the notice: Respond to the notice within the stipulated time, providing all relevant details and supporting documents to justify your income and assets.
5. Attend hearings: Attend any hearings scheduled by the Income Tax Department and present your case.

Conclusion:

A notice under Section 148A of the Income Tax Act can be intimidating for taxpayers, but it is essential to understand that it is merely a procedure to ensure that all taxpayers pay their fair share of taxes. If you receive such a notice, it is crucial to respond to it promptly and seek professional help to ensure that the re-assessment is carried out fairly and accurately.

Filing income tax returns in India is not only a legal obligation but also a crucial step towards contributing to the country’s development. Despite this, a significant percentage of taxpayers in India still neglect or avoid filing returns, citing various reasons like lack of awareness, fear of tax authorities, or complexity of the process. In this article, we will explain why everyone should file income tax returns in India and the advantages that come along with it.

First and foremost, filing income tax returns is a legal obligation in India for anyone earning income above a certain threshold, which is currently INR 2.5 lakhs per annum. Failure to file returns or filing incorrect information can result in hefty fines, prosecution, and even imprisonment. Hence, complying with the law by filing income tax returns is necessary to avoid legal consequences.

Apart from avoiding legal consequences, there are several benefits of filing income tax returns in India, which makes it a wise decision for everyone. Let’s look at some of these benefits in detail.

1. Claiming Tax Refunds: One of the significant advantages of filing income tax returns is claiming refunds. If a taxpayer has paid more tax than what is due, they can claim a refund by filing their returns. The process of claiming a refund is straightforward and can be done easily through the online portal. However, to claim the refund, it is essential to file the returns within the due date.
2. Loan Processing: Filing income tax returns is also essential when applying for loans. Most financial institutions ask for the latest income tax returns while processing loan applications. Having a record of filed returns can increase the chances of loan approval and also help in negotiating better interest rates.
3. Building Financial Records: Filing income tax returns can also help in building a good financial record. Banks and other financial institutions consider the income tax return as a crucial document while assessing an individual’s financial health. Having a consistent record of filed returns can help in building a good credit score and improve the chances of getting loans or credit cards with better terms.

• Avoiding Scrutiny: Filing income tax returns also helps in avoiding scrutiny by tax authorities. Non-filing of returns or underreporting of income can raise suspicion and lead to tax authorities scrutinizing an individual’s financial transactions. Filing returns regularly can help in avoiding such scrutiny and maintaining transparency in financial dealings.

• Carry Forward of Losses: If you have suffered losses in a financial year, you can carry them forward to subsequent years and set them off against future profits. However, this can only be done if you have filed your tax return on time. If you fail to file a return, you will lose the opportunity to carry forward the losses.

• For VISA Purpose: Filing an income tax return is a mandatory requirement for individuals who wish to apply for a visa to visit or immigrate to another country. Many countries, including the United States, Canada, the United Kingdom, and Australia, require individuals to provide their income tax returns as a part of their visa application process.

In conclusion, filing income tax returns is not just a legal obligation but also a wise decision for everyone in India. It can help in claiming refunds, processing loans, building financial records, and avoiding scrutiny by tax authorities. Hence, it is essential to file income tax returns on time and accurately to enjoy these benefits and contribute towards the country’s development.

As the financial year comes to an end, it is important to take stock of your finances and ensure that you have taken all the necessary steps to maximize your tax benefits and investments. Here are some things that you should do before 31st March in India:

1. File your income tax returns: The deadline for filing income tax returns of Individuals and Non-Audit cases for the financial year 2021-22 was 31st July 2022. However, if you have not yet filed your income tax returns for the previous financial year (2020-21), you must do so before 31st March 2023 to avoid penalties and interest.
2. Utilize your section 80C limit: Under section 80C of the Income Tax Act, you can claim tax deductions for investments and expenses up to Rs. 1.5 lakh. This includes investments in provident fund, National Savings Certificate, tax-saving mutual funds, and life insurance premiums. Make sure you utilize this limit before the end of the financial year to reduce your tax liability.
3. Claim deductions for medical expenses: Under section 80D, you can claim deductions for medical expenses incurred for yourself, your spouse, and your dependent children. You can claim a deduction of up to Rs. 25,000 for medical insurance premiums paid for yourself, your spouse, and dependent children. Additionally, you can claim a deduction of up to Rs. 50,000 for medical expenses incurred for senior citizens. Make sure you have all the necessary bills and receipts to claim these deductions.
4. Check your Form 26AS: Form 26AS is a consolidated tax statement that shows the tax deducted at source (TDS) from your income. Make sure you verify that the TDS has been credited to your PAN number and matches with your records. If there are any discrepancies, you must raise the issue with the relevant authority.
5. Make donations to charitable organizations: Donations made to charitable organizations are eligible for tax deductions under section 80G. Make sure you donate to a recognized charitable organization and obtain a receipt for the same. You can claim a deduction of up to 50% of the donated amount.
6. Check your investment portfolio: Review your investment portfolio and make necessary adjustments before the financial year ends. Make sure you rebalance your portfolio and align it with your financial goals.
7. Check your insurance coverage: Review your insurance coverage and ensure that you have adequate coverage for yourself and your dependents. Make sure you renew your policies before they expire.
8. Link Aadhaar with PAN: As per the government mandate, it is mandatory to link your Aadhaar card with your PAN card. The deadline for linking Aadhaar with PAN has been extended till 31st March 2023. However, it is advisable to complete this task as soon as possible.
9. Plan for the next financial year: Use the last few days of the financial year to plan for the next financial year. Set financial goals, create a budget, and invest in tax-saving instruments to maximize your tax benefits.

In conclusion, the end of the financial year is a crucial time to review your finances and ensure that you have taken all the necessary steps to maximize your tax benefits and investments. Make sure you file your income tax returns, utilize your section 80C limit, claim deductions for medical expenses and charitable donations, check your investment portfolio and insurance coverage, utilize your LTA limit, and plan for the next financial year. By doing so, you can ensure a smooth and financially stable future.

Overview

A trademark is a symbol, word, phrase, design, or combination of these elements that distinguishes and identifies the source of goods or services of one party from those of others. Trademarks serve as a form of intellectual property protection for businesses and individuals, allowing them to prevent others from using their marks in a way that could cause confusion among consumers or dilute the value of the mark.

Trademark registration is the process of legally protecting a brand name, logo, or slogan used to identify a product or service. The following are the steps involved in the trademark registration process:

1. Conduct a Trademark Search: Before filing a trademark application, it is essential to conduct a thorough search to ensure that the chosen trademark is not already registered or being used by someone else in a similar category.

• File a Trademark Application: Once the search is complete, the applicant can file a trademark application with the appropriate government agency in their jurisdiction. In the United States, the U.S. Patent and Trademark Office (USPTO) handles trademark registration.

• Examination of the Application: Once the application is submitted, the trademark office examines it to ensure that it meets all the requirements for registration. If the application is incomplete or does not meet the necessary criteria, the applicant may be asked to provide additional information or clarification.
• Publication for Opposition: Once the trademark office approves the application, it is published in an official gazette or website for a specific period, usually 30 days, to allow others to object to the registration.

• Opposition Proceedings: During the opposition period, anyone who believes they will be harmed by the registration can file an objection to the application. If an opposition is filed, the parties involved will engage in a legal proceeding to determine whether the registration should be granted.

• Registration: If no opposition is filed or the opposition proceeding is resolved in favor of the applicant, the trademark is registered and the applicant is issued a certificate of registration.

Documents and Information for Trademark Registration

The documents and information required for trademark registration may vary depending on the jurisdiction and the specific requirements of the government agency handling the registration process. However, the following are the standard documents and information required for trademark registration:

1. Trademark Application Form: The applicant needs to fill out and submit a trademark application form that includes details such as the trademark owner’s name and address, the trademark itself, and the goods or services associated with the trademark.

• Specimen of the Trademark: The applicant needs to provide a specimen of the trademark, which can be a drawing or a digital image of the logo or design.

• Proof of Use or Intent to Use: The applicant needs to provide evidence that the trademark is being used in commerce or a statement indicating the intent to use the trademark in commerce in the future.

• Classification of Goods or Services: The applicant needs to specify the classification of goods or services associated with the trademark. In the United States, this classification is based on the International Classification of Goods and Services (Nice Classification).

• Government Fees: The applicant needs to pay the government fees associated with the trademark registration process.

It is essential to ensure that all the information provided in the application is accurate and complete to avoid delays or rejection of the application.

Trademark Registration Fee

In India, the trademark registration fees are the same for individuals and other entities, such as companies or organizations. The fees are determined based on the number of classes of goods or services for which the registration is sought. The following is the fee structure for trademark registration in India:

1. For one class of goods or services – INR 4,500 (approximately USD 60) for Individuals and INR 9,000 (approximately USD 120) for Others (Companies, Firms, and other legal entities)
2. For each additional class of goods or services – INR 9,000 (approximately USD 120)

Therefore, the trademark registration fees are the same for individuals and other entities. However, the government offers a fee concession for small enterprises and startups. They are eligible for a 50% fee reduction for trademark registration.

Understanding GST for Freelancers in India

In India, Goods and Services Tax (GST) is applicable to the services provided by freelancers, as per the GST law. Freelancers are considered as service providers operating in the course or furtherance of business, making their services taxable under GST.

If a freelancer’s annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), GST registration becomes mandatory. However, if a freelancer is engaged in the export of services, GST registration is required irrespective of turnover.

Once registered, freelancers must charge 18% GST on their taxable services. However, some services attract a lower rate or may be exempt from GST altogether.

Export of Services and GST Compliance

What Qualifies as Export of Services?

Export of services is classified as zero-rated supply under GST, meaning no GST is levied, but exporters can claim Input Tax Credit (ITC) on the GST paid for inputs and input services.

As per Section 2(6) of the IGST Act, for a service to qualify as an export of service, the following conditions must be met:

1. Supplier of service is located in India.
2. Recipient of service is located outside India.
3. Place of supply of service is outside India.
4. Payment for such service is received in convertible foreign exchange or in INR, as permitted by the RBI.
5. Supplier and recipient must not be merely distinct establishments of the same person (as per Section 8 of the IGST Act).

How to Export Services Without Paying GST?

Freelancers and businesses exporting services have two options to avoid paying GST at the time of export:

1. Furnishing a Letter of Undertaking (LUT)

Freelancers and businesses with a good compliance history can submit an LUT to the GST department. This allows them to export services without paying GST upfront while still being eligible to claim Input Tax Credit (ITC).

2. Paying GST and Claiming a Refund

If a freelancer does not furnish an LUT, they must pay GST on the export of services and later claim a refund by filing a refund application in Form GST RFD-01.

👉 Key Note: Every payment received from a foreign client does not qualify as export of services. If any of the conditions under Section 2(6) of the IGST Act are not met, the transaction is treated as a domestic supply and becomes taxable under GST.

GST Return Filing for Export of Services

Freelancers and businesses exporting services must comply with regular GST return filings to remain compliant and claim ITC or refunds. The key GST returns are:

1. GSTR-3B (Monthly/Quarterly Filing)

• Must be filed on a monthly or quarterly basis based on turnover.
• Exported services must be reported in Table 3.1(d) of GSTR-3B.

2. GSTR-1 (Details of Outward Supplies)

• Filed monthly or quarterly based on turnover.
• Exported services must be reported in Table 6A of GSTR-1.

3. Invoice & Document Maintenance

• Export invoices must contain “Supply meant for export under LUT without payment of IGST” or “Export with payment of IGST”.
• Maintain shipping bills, airway bills, and bank realization certificates as proof of export.

4. GST Refund for Exported Services

• If GST is paid, a refund can be claimed via Form GST RFD-01.
• If LUT is filed, no GST is paid, but ITC can still be claimed.

Additional Insights: GST for Freelancers in Special Cases

1. GST on Freelancers Providing Services to Indian Clients

• If a freelancer provides services within India, GST is charged at 18% (unless the service is exempt).
• Reverse charge mechanism (RCM) may apply for specific services.

2. GST on Freelancers Receiving Payments from Foreign Clients

• Every transaction must meet the export criteria to be zero-rated.
• If the criteria are not met, GST must be charged at 18% even for foreign clients.

3. GST Exemptions for Freelancers

Some services like education, healthcare, and specific government-related services may be exempt from GST. Always check the latest GST rate notifications.

FAQs on GST for Freelancers in India

Q1: Is GST registration mandatory for freelancers in India?

👉 Yes, if your turnover exceeds ₹20 lakhs (₹10 lakhs for special category states). However, GST registration is mandatory for exporters irrespective of turnover.

Q2: What is the GST rate on freelance services?

👉 The standard GST rate for freelance services is 18%. Some services may be exempt or attract a lower rate.

Q3: Can freelancers claim Input Tax Credit (ITC)?

👉 Yes, freelancers registered under GST can claim ITC for GST paid on business-related expenses.

Q4: How can freelancers export services without paying GST?

👉 By submitting an LUT to the GST department, freelancers can export services without paying GST.

Q5: Can freelancers claim a GST refund?

👉 Yes, if they have paid GST on exported services, they can claim a refund via Form GST RFD-01.

Q6: What happens if I receive payments from a foreign client but don’t meet export conditions?

👉 If your transaction does not meet the conditions of export under Section 2(6) of IGST Act, then it is treated as a domestic taxable service, and GST at 18% is applicable.

Need GST Assistance? Contact a CA Firm in Delhi, Bangalore, or Noida!

Understanding GST compliance for freelancers and exporters can be complex. If you need expert guidance on GST registration, LUT filing, return filing, or refunds, consult N C Agrawal & Associates, A CA firm in Delhi, CA firm in Bangalore, or CA firm in Noida for personalized assistance.

For professional GST consultancy, tax planning, and compliance support, contact an experienced Chartered Accountant today!

1. What is Corporate Tax:-

Corporate Tax is a form of direct tax levied on the net income of corporations and other businesses.

Corporate Tax is sometimes also referred to as “Corporate Income Tax” or “Business Profits Tax” in other jurisdictions

2. Who is subject to Tax:–

Broadly, Corporate Tax applies to the following “Taxable Persons”:

• UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE;
• Natural persons (individuals) who conduct a Business or Business Activity in the UAE as specified in a Cabinet Decision to be issued in due course; and
• Non-resident juridical persons (foreign legal entities) that have a Permanent Establishment in the UAE (which is explained under [Section 8]).

Juridical persons established in a UAE Free Zone are also within the scope of Corporate Tax as “Taxable Persons” and will need to comply with the requirements set out in the Corporate Tax Law. However, a Free Zone Person that meets the conditions to be considered a Qualifying Free Zone Person can benefit from a Corporate Tax rate of 0% on their Qualifying Income (the conditions are included in [Section 14]).

Non-resident persons that do not have a Permanent Establishment in the UAE or that earn UAE sourced income that is not related to their Permanent Establishment may be subject to Withholding Tax (at the rate of 0%). Withholding tax is a form of Corporate Tax collected at source by the payer on behalf of the recipient of the income. Withholding taxes exist in many tax systems and typically apply to the cross-border payment of dividends, interest, royalties and other types of income.

3. IMPOSITION OF CORPORATE TAX::-

As per the Decree Law, the UAE CT shall be imposed on Taxable Income which shall be at the rate of 0% for taxable income up to AED 375000 and 9% for taxable income exceeding AED 375000 in a Tax Period. As regards Free Zone establishments which qualify as Qualified Free Zone Persons, the UAE CT shall be 0% for Qualifying Income and 9% on Taxable Income which is not qualifying Income.

4. Tax Period:-

For the purpose of imposition of the UAE CT, financial year of a Taxable Person shall be the Georgian calendar year or twelve months period for which the taxable person prepares financial statements.

5. Process of Registration, Filing and Paying the Taxes:-

All Taxable Persons (including Free Zone Persons) will be required to register for Corporate Tax and obtain a Corporate Tax Registration Number. The Federal Tax Authority may also request certain Exempt Persons to register for Corporate Tax.

Taxable Persons are required to file a Corporate Tax return for each Tax Period within 9 months from the end of the relevant period. The same deadline would generally apply for the payment of any Corporate Tax due in respect of the Tax Period for which a return is filed.

LLP stands for Limited Liability Partnership, and it is a type of partnership firm where partners have limited liability. LLP registration process in India is straightforward and can be completed in the following steps:

Step 1: Obtain Digital Signature Certificate (DSC)

The first step in the LLP registration process is to obtain a digital signature certificate (DSC) for all the designated partners. A DSC is required to sign the online registration documents.

Step 2: Obtain Designated Partner Identification Number (DPIN)

Every designated partner of an LLP is required to obtain a designated partner identification number (DPIN) from the Ministry of Corporate Affairs (MCA). This is a unique identification number that is required for filing the LLP registration documents.

Step 3: Reservation of Name

The next step is to reserve a unique name for your LLP. This can be done by filing Form LLP-RUN (Reserve Unique Name) with the MCA. The name should be unique and should not resemble any existing company or LLP.

Step 4: File Incorporation Documents

Once the name is approved, the next step is to file the LLP incorporation documents with the MCA. The documents required for LLP registration include Form LLP-INC 32 (Incorporation Document and Subscriber’s Statement), Form LLP-INC 33 (LLP Agreement), and Form LLP-INC 34 (Statement of Consent and Appointment of Designated Partners).

Step 5: Obtain Certificate of Incorporation

After submitting the LLP incorporation documents, the MCA will verify the documents and issue a certificate of incorporation if everything is in order. The certificate of incorporation is the final document that confirms the formation of the LLP.

Once the LLP is registered, it is mandatory to file annual returns and other compliance documents with the MCA to maintain the LLP’s status.

In India, the Goods and Services Tax (GST) is a value-added tax that is levied on the supply of goods and services. GST registration is mandatory for businesses that have a turnover of more than Rs. 40 lakhs (Rs. 20 lakhs for businesses in northeastern states). Here are the steps to register for GST in India:

1. Visit the GST portal (https://www.gst.gov.in/).
2. Click on the ‘Services’ tab and select ‘Registration’ from the drop-down menu.
3. Select the ‘New Registration’ option.
4. Fill out the registration form with the required details, including PAN card, Aadhaar card, business details, bank account details, and authorized signatory details.
5. Upload the required documents, including PAN card, Aadhaar card, business address proof, bank statement, and proof of business constitution (partnership deed, company registration certificate, etc.).
6. Submit the application and wait for the application reference number (ARN) to be generated.
7. Once the ARN is generated, the application will be reviewed by the GST officer.
8. If any additional information or documents are required, the GST officer will request them through the GST portal.
9. If the application is approved, the GST registration certificate will be issued.

The process of GST registration typically takes 5-7 working days. It’s important to note that GST registration is mandatory for businesses with a turnover of more than Rs. 40 lakhs (Rs. 20 lakhs for businesses in northeastern states), and failure to register can result in penalties and fines

If You have any doubt or query regarding the Import Export Code (IEC) Registration , feel free to contact the us

CA Neeraj Bansal

+91-9718046555

In India, the Import-Export Code (IEC) registration process is governed by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry. IEC is a 10-digit code that is required by businesses for any import or export transactions.

Here are the steps to register for an IEC code in India:

1. Create an account on the DGFT website (https://dgft.gov.in/).
2. Fill out the IEC application form (Aayaat Niryaat Form ANF 2A) online.
3. Upload the required documents, including PAN card, GST registration certificate, bank account details, and a cancelled cheque or bank certificate as proof of bank account.
4. Pay the application fee of Rs. 500 through online payment modes.
5. Submit the application form online.

After submission of the application, the DGFT will review the application and documents. Once the application is approved, the IEC code will be generated and sent to the applicant via email.

The process of IEC registration in India typically takes 1-2 weeks. It’s important to note that the IEC code does not have an expiry date and is valid for the lifetime of the business.

If You have any doubt or query regarding the Import Export Code (IEC) Registration , feel free to contact the us

CA Neeraj Bansal

+91-9718046555

There are many Taxpayers who has escaped the income intentionally or unintentionally by not declaring the Saving Interest, Fixed Deposit Interest, Capital gain transactions, Purchase or sale of immovable properties and other as specified by the department under high value transactions. Taxpayers are getting the email/sms alert from the department about these high transactions value.

However, since the date of revision of income tax returns i.e. 31st march 2022 is over so taxpayers was in dilemma that how to revise or deposit the tax amount.

Now the government has come with a solution to file the Updated Tax Return in Form ITR-U along with applicable ITR Forms (I.e. ITR-1,2,3,4,5,6,7 as applicable)

Income Tax department has notified a new form for filing updated I-T returns in which taxpayers will have to give the exact reason for filing it along with the amount of income to be offered to tax. The new form (ITR-U) will be available to taxpayers for filing updated income tax returns for 2019-20 and 2020-21 fiscals.

Updated Income Tax Return can be filed from the AY 2020-21-ITR-U along with applicable ITR-1 to ITR-7 on account of Below

• Return not filed
• Income not reported correctly
• wrong heads of income
• Reduction of c/f Loss
• Reduction of Unabsorbed Dep.
• Reduction of Tax Credit
• Wrong tax

People can now deposit the tax can relax by reducing the chances of any further notices.