Income Tax, GST, UPI, Finance Changes Applicable from 1st January 2024

This article discusses important Income Tax, GST, UPI Changes that are Applicable from 1st January 2024.

No Refund for Filing Income Tax Return for FY 2022-23

If you could not file/ Revise your Income Tax Return (ITR) for FY 2022–23, you can still file the same in form of ITR-U. The Income Tax Department has also released ITR Utilities for Filing ITR-U for AY 2023-24 on 1st January 2024. ITR-U for FY 22-23/AY 23-24 can be filed up to 31st March 2026. Certain conditions for filing ITR-U are, that it cannot be filed in case of Loss or Refund or if it leads to a reduction of Tax.

GST Portal Changes for GTA

Online Annexure V and Annexure VI have been made available for the existing GTA Taxpayers for Opting Forward Charge Payment by GTA (Annexure V) or Opting to Revert under Reverse Charge Payment by GTA (Annexure VI) from 1st January 2024. Similarly, Online Annexure V has been made available for the new GTA Taxpayers for Opting Forward Charge mechanism.

GSTN issued Advisory on functionalities available on GST portal for GTA Taxpayers

Reporting opening balance for ITC reversal: Due Date extended up to 31st January 2024

The Goods and Service Tax Portal, in order to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, has extended opportunity to declare opening balance for ITC reversal till 31st January, 2024.

Click here to learn more about this facility

New UPI Transaction Rules applicable from 1st January 2024

In 2023, the Reserve Bank of India (RBI) announced a number of adjustments to the laws and regulations surrounding the United Payments Interface (UPI) with the aim of broadening its scope. Many of these new UPI payment regulations went into force on January 1, 2024.

These changes include:

• UPI transaction limit hiked for hospitals, schools to Rs 5 lakh from Rs 1 lakh earlier.
• Deactivation of inactive UPI IDs on Google Pay, Paytm, and PhonePe.
• The transaction limit for UPI Lite wallets has also been hiked from Rs 200 to Rs 500.
• No authentication required for UPI auto payments to Rs 1 lakh for credit card repayments, mutual fund subscriptions and insurance premiums.
• Interchange fee of 1.1 percent on UPI merchant payments. The interchange fee will be levied only on specified merchant transactions of above Rs 2,000.

GST Annual Return Late Fees Applicable for FY 2022-23

The Due Date for filing GST Annual Return for FY 2022-23 was 31st December 2023. The Annual Return can still be filed, but with Late Fees which is as follows:

• Taxpayers whose Annual Aggregate Turnover (AATO) is up to Rs. 5 Cr shall pay Rs. 50 per day subject to a maximum of 0.04% of turnover in state or union territory.
• Taxpayers whose AATO is more than Rs. 5 Cr to 20 cr shall pay Rs 100 per day subject to a maximum of 0.04% of turnover in state or union territory.

Time Barred GST Orders

GST Assessment Orders u/s 73 for FY 2017-18 if made after 31st December 2023 are Time barred and thus are invalid.

The Time limit is as follows:

Please also note that Central Board of Direct Taxes and Customs (CBIC) vide Notification number 56/2023- Central Tax dated 28th December, 2023 have extended period of Limitation for issuance of Show Cause Notice u/s 73 from 31st December 2023 to 31st January 2024 for FY 2018-19.

Also Read: Notification extending period of Limitation for GST Notices for Non-Fraud cases constitutionally void?

Fees applicable for Aadhaar changes

Holders of Aadhaar cards who would like to update their information will have to pay Rs 50 from 1st January 2024.

Bank Locker to freeze

For individuals having lockers in banks, an important deadline was December 31, 2023. Those who have not signed the revised bank locker agreement till this day, their lockers can be frozen from January 1. Banks will start taking their decisions in this regard from today.

Nomination for Demat Account

By January 1, 2024, holders of demat accounts will need to submit nomination declarations or choose not to submit any. Account holders won’t be able to trade stocks if they don’t do this.