October 2020 / India

October 29 2020

Digital India, a programme to transform India into a digitally empowered society and knowledge economy

The world’s fastest growing industry, Electronics System Design and Manufacturing (ESDM) continues to transform lives, businesses, and economies across the globe. The global electronics market is estimated to be over $2 tn. India’s share in global electronics manufacturing has grown from 1.3% in 2012 to 3% in 2018.

Technology transitions such as the rollout of 5G networks and IoT are driving the accelerated adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the market and will undoubtedly usher in a new era for electronic products.

  • India is expected to have a digital economy of $1 tn by 2025
  • One of the largest electronics markets in the world anticipated reaching $400 bn by 2025
  • India’s ESDM sector is expected to generate $100 - 130 bn in economic value by 2025

100% FDI is allowed under the automatic route.

In case of electronics items for defence, FDI up to 49% is allowed under automatic route and beyond 49% through the government approval. For further details, please refer FDI Policy

To know more about the Electronic Systems Sector in India: https://www.investindia.gov.in/sector/electronic-systems

October 27 2020

COVID-19 Pandemic: India Further Extends Various Filing and Payment Deadlines

The Indian government, through the Central Board of Direct Taxes and Central Board of Indirect Taxes and Customs, has further extended the filing and payment deadlines for income tax and goods and services tax (GST) returns and reports or statements in view of the COVID-19 pandemic.

Income tax returns (ITRs) and audit reports

  • The ITR filing deadline for the financial year (FY) 2019-20 (assessment year [AY] 2020-21) has been further extended from 30 November 2020 to 31 January 2021 for:
    • taxpayers that are required to have their accounts audited by 31 October 2020; and
    • taxpayers that are required to furnish a report in respect of international or specified domestic transactions by 30 November 2020.
  • The payment deadline for self-assessment tax for the aforementioned taxpayers whose self-assessment tax liabilities do not exceed INR 100,000 has also been extended to 31 January 2021.
  • The ITR filing deadline for the FY 2019-20 (AY 2020-21) for other taxpayers (for whom the original deadline under the ITA was 31 July 2020) has been further extended from 30 November 2020 to 31 December 2020. The payment deadline for self-assessment tax for other taxpayers whose self-assessment tax liabilities do not exceed INR 100,000 has also been extended to 31 December 2020.
  • The deadline for furnishing audit reports has been extended from 31 October 2020 to 31 December 2020.

Annual GST returns and reconciliation statements

The filing deadline for annual GST returns (GSTR-9/GSTR-9A) and reconciliation statements (GSTR-9C) for FY 2018-19 has been further extended from 31 October 2020 to 31 December 2020.

Note: The filing of the FY 2018-19 GSTR-9/GSTR-9A is optional for taxpayers with aggregate turnover of less than INR 20 million, while the filing of the FY 2018-19 GSTR-9C is optional for taxpayers with aggregate turnover of up to INR 50 million.