24 July 2015
Band for GST-rates
The Bill empowered GST Council to make recommendations for the rates of goods and service tax including floor rates with bands. The Committee recommended that the word 'band' may be defined in GST laws as following:
"Band": Range of GST rates over the floor rate within which Central Goods and Service Tax (CGST) or State Goods and Service Tax (SGST) may be levied on any specified goods or services or any specified class of gods or services by the Central or a particular State Government as the case may be.
In its report, The Committee mentioned that it was aware that while discharging the functions conferred upon the GST Council, it would be guided by the need for a harmonized structure of goods and services tax and for the development of a harmonized national market for goods and services.
It can be said that while construing above definition of 'Band' one has to ensure that harmonized structure of GST-rates must not be altered.
The Committee found no merit in altering the voting pattern proposed in the Bill.
Dispute Settlement Authority
It also didn't recommend inclusion of provision for GST Dispute Settlement Authority having noted that GST Council shall decide only the 'modalities' to resolve disputes.
Definition of 'Supply'
The Bill proposed definition of 'goods and services tax' to mean any tax on supply of goods, or services or both. The Committee opined that the term 'supply' would be defined in the various GST laws relating to CGST and SGST, therefore, it would not be appropriate to define the term 'supply' in the Bill.
Definition of 'services'
The Bill proposed to define 'services' to mean anything other than goods. The Committee felt that term 'services' had been so defined in order to give it wide amplitude so that all supplies that are not goods can broadly be covered within the ambit of services and no activity remains outside the taxable net. It also opined that this would also minimize disputes. In view of the above, it proposed no change in the definition.
Additional Goods and Services Tax
The Bill proposed to levy non-Cenvatable additional tax at 1% on inter-State supply of goods. The Committee felt that the provision of 1% additional tax in its present form was likely to lead to cascading effect of taxes. Therefore, it strongly recommended that following Explanation should be added for word 'supply':
Supply: "All forms of supply made for a consideration."
Compensation to States
The Bill proposed that the Parliament 'may' compensate States for loss of revenue for a period which may be extended to five years. The Committee felt that there was no justification for substitution of the word 'may' with 'shall'. It, however, recommended that compensation should be provided for whole period of five years.
22 July 2015
With a view to contain the tendering system for attest functions, the Council at its special (338th) meeting considered the report of the Group constituted under the convenorship of CA. Tarun Jamnadas Ghia, Member, Central Council and decided as under:
1. Tendering has been prohibited in the exclusive areas of practice of chartered accountants like audit and attestation services. i.e. those areas where the assignments can be performed only by chartered accountants. In those areas, where alongwith chartered accountants, the other professionals can also apply for the tender, there is no restriction for the chartered accountants to respond to the tenders floated by authorities from time to time.
2. Members are advised to adhere to the recommended scale of fees prescribed by ICAI in the context of various professional assignments. To ensure such adherence, a member responding to a tender should be required to furnish to ICAI at the designated e-mail address email@example.com with estimated hours to be devoted by the partner/proprietor, paid CAs, other staff and the fees quoted in the tender. Such details will be furnished by the member within a period of fifteen days of his responding to the tender. If the member is successful in securing the tendered assignment, then the member will also furnish the actual hours devoted by the partner/proprietor, paid CAs and the staff within two months of completion of the assignment.
3. Members are required to maintain cost sheet in the given format while submitting any tender/bid. The format of the same can be viewed at http://184.108.40.206/38366pdc28039.pdf
4. Members are required to maintain the cost sheet compulsorily and submit a soft copy of the bid submitted by them in response to any tender within 15 days to ICAI. The office can check whether recommended scale of fees has been followed or not in those bids, to ensure adherence to quality standards.
FYI - CBDT releases Java Utility for e-filing Form 6 to declare black money
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 ('Black Money Act') has been enforced from July 1, 2015.
The Black Money Act provides for 30% tax on the value of undisclosed foreign income or assets and a penalty of three times of tax so computed. It further provides for prosecution up to 10 years in case of willful attempt to evade tax on foreign income or assets held outside India.
However, the Black Money Act allows one-time compliance window for the taxpayers to voluntarily disclose undisclosed foreign income or assets. The declaration can be made by September 30, 2015. Any person availing of benefit of compliance window is required to pay tax at the rate of 30% of value of undisclosed foreign income or asset and a penalty of 100% of tax. Such taxes and penalty are required to be paid by the declarant on or before December 31, 2015.
The Government has notified Form 6 to make declaration of undisclosed foreign income or asset under the compliance window. The taxpayer has an option to file the declaration either manually to CIT, Delhi or e-file it using the digital signature.
Therefore, for the purposes of e-filing of Form 6, the Board has released the Java utility. The taxpayer can now fill up Form 6 by downloading the Java utility from e-filing website.
After filling the relevant information in Form 6 through Java Utility, the taxpayer needs to generate the .xml file and submit it under e-filing option available after login at https://incometaxindiaefiling.gov.in. Declarant needs to attach relevant scanned documents (i.e., scanned copy of valuation report or FMV computation) in PDF or ZIP format along with XML file. The size of PDF/ZIP documents should not exceed 50MB.
Forwarded from whatsapp as received !!
21 July 2015
Members can view the Application and can Edit the Application in different stages.
However after submission of the application form members will not be able to edit the application. They would be able to view the details submitted through the Application Form and take print out of declaration/ acknowledgement and of the whole application form.
Last date for submission of applications on the website www.meficai.org is 31st August, 2015
20 July 2015
The Assessing Officer has exceeded his jurisdiction in levying fee under Section 234E while processing the statement and make adjustment under Section 200A of the Act. Therefore, the impugned intimation of the lower authorities levying fee under Section 234E of the Act cannot be sustained in law. However, it is made clear that it is open to the Assessing Officer to pass a separate order under Section 234E of the Act levying fee provided the limitation for such a levy has not expired
17 July 2015
RBI Issues New Guidelines on Concurrent Auditing at Branches
The Reserve Bank on Thursday said the concurrent audit at bank branches should cover at least half of their advances and deposits.
The concurrent audit system is regarded as part of a bank's early warning system to ensure timely detection of irregularities and lapses.
"Concurrent audit at branches should cover at least 50 per cent of the advances and 50 per cent of deposits of a bank," RBI said in a notification.
It said branches rated as high risk or above in the last risk-based internal audit (RBIA) or serious deficiencies found in internal audit are subject to concurrent audit.
The audit will also be applicable on all specialized branches like large corporate, mid corporate, exceptionally large/very large branches, SMEs and all centralised processing units like loan processing units (LPUs).
Besides, it would include service branches, centralized account opening divisions, wealth and portfolio management services, card products divisions, data centres and treasury/ foreign exchange business, investment banking, among others.
The concurrent audit also helps in preventing fraudulent transactions at branches.
The main role of concurrent audit is to supplement the efforts of the bank in carrying out simultaneous internal check of the transactions and other verifications and compliance with the procedures laid down, the RBI said.
The scope of concurrent audit should be wide enough or focused to cover certain fraud-prone areas such as handling of cash, deposits, advances, foreign exchange business, off-balance sheet items, credit-card business, Internet banking, it added.
The regulator said appointment of an external audit firm for concurrent audit may be initially for one year and extended up to three years, after which an auditor could be shifted to another branch, subject to satisfactory performance.
14 July 2015
CBDT introduces Electronic Verification Code (EVC) system as an alternate mode of verification to manually signed ITR-V (acknowledgment).
CBDT Notification No. 2/2015 Dated 13-July-2015 regarding
EVC, a ten digit alpha-numeric code, to be provided using any of the 4 methods, namely –
a) internet banking ,
b) AADHAR authentication ,
c) Bank ATM card and
d) combination of registered email and mobile number (where income is below Rs 5 lakhs).
EVC to be generated from E-filing website, generation process may vary based on risk category of taxpayer.
EVC unique to an assessee's PAN, one EVC can be used to validate one return of the assessee irrespective of the AY or return types.
EVC to be stored against assessee’s PAN and shall be valid for 72 hours (except in case of Aadhaar authentication)
The Notification is available at
Further EVC would verify the identity of the person furnishing the return of income. The mode and process for generation and validation of EVC, a user manual was prepared which is available at
https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/e-Verification_User_Manual.pdf. CA RAJIV SHUKLA
13 July 2015
Notification No. 2/2015 regarding Electronic Verification Code (EVC) for electronically filed Income Tax Return as an alternative mode of verification released. [Refer Notification No. 2/2015 dated 13/07/2015] https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/EVC_notification.pdf
EVC would verify the identity of the person furnishing the return of income .To know more about the modes and process for generation and validation of EVC https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/e-Verification_User_Manual.pdf
11 July 2015
Mr. Shaktikanta Das, Revenue Secretary of India and Mr. Richard Verma, U.S. Ambassador to India signed here today , an Inter Governmental Agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA) to promote transparency between the two nations on tax matters. The agreement underscores growing international co-operation to end tax evasion everywhere. The text of the signed agreement will be available on the website of the Indian Income Tax Department (www.incometaxindia.gov.in) and the website of U.S. Treasury (www.treasury.gov).
The United States (U.S.) and India have a long standing and close relationship. This friendship extends to mutual assistance in tax matters and includes a desire to improve international tax compliance. The signing of IGA is a re-affirmation of the shared commitment of India and USA towards tax transparency and the fight against offshore tax evasion and avoidance.
Revenue Secretary, Shaktikanta Das stated, "Signing the IGA with U.S. to implement FATCA today, is a very important step for the Government of India, to tackle offshore tax evasion. It reaffirms the Government of India's commitment to fight the menace of black money. It is hoped that the exchange of information on automatic basis, regarding offshore accounts under FATCA would deter tax offenders, would enhance tax transparency and eventually bring in higher equity in to the direct tax regime which necessary for a healthy economy."
Ambassador Verma, who signed on behalf of the United States, stated, "The signing of this agreement is an important step forward in the collaboration between the United States and India to combat tax evasion. FATCA is an important part of the U.S. Government's effort to address that issue."
FATCA is rapidly becoming the global standard in the effort to curtail offshore tax evasion. To date, the United States has IGAs with more than 110 jurisdictions and is engaged in related discussions with many other jurisdictions.
The United States enacted FATCA in 2010 to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) who do not agree to identify and report information on U.S. account holders. As per the IGA, FFIs in India will be required to report tax information about U.S. account holders directly to the Indian Government which will, in turn, relay that information to the IRS. The IRS will provide similar information about Indian account holders in the United States. This automatic exchange of information is scheduled to begin on 30th September, 2015.
Both the signing of the IGA with U.S. as well as India's decision to join the Multilateral Competent Authority Agreement (MCAA) on 3rd June, 2015 are two important milestones in India's fight against the menace of black money as it would enable the Indian tax authorities to receive financial account information of Indians from foreign countries on an automatic basis.
07 July 2015
The CBEC has issued Notification for maintenance of electronic records and issuing invoices with Digital Signature.
The assessee can now maintain the records on daily basis in respect of goods produced or manufactured, opening balance, quantity removed etc. In the electronic format and can also be preserved in electronic format provided every page of the records maintained has digital signature.
Invoice issued under this rule may be authenticated by means of digital signature provided the duplicate copy of the invoice meant for transporter is digitally signed and a hard copy of such transporter copy of the invoice duly self attested by the manufacturer is used for transport of goods.
05 July 2015
- Act: Annual return on Foreign Liabilities and Assets has been notified under FEMA 1999. Return to be filed under A.P. (DIR Series) Circular No.145 dated June 18, 2014 and submitted to the Department of Statistics and Information Management, RBI, Mumbai
- Applicability: It is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who hold foreign Assets or Liabilities in their balance sheets
- Due Date: FLA Return is mandatory under FEMA 1999 and companies are required to submit the same based on audited/ unaudited account by July 15 every year through official email id of any authorized person of company like CFO, Director, Company Secretary at firstname.lastname@example.org
- Format: The FLA Return has to be submitted in excel based format, which has inbuilt checks and validations. The latest format of FLA Return is available on RBI's web site at the following link:
27 June 2015
CBDT notifies nature of business relationship which CA can have with client to ensure his independence
June 4, 2015CMD of Nationalized Banks
MD of Associate Banks of SBI
Submission of Long Form Audit Report (LFAR) by Concurrent AuditorsIn terms of enclosure 1 of RBI circular DBS.CO.PP.BC.11/11.01.005/2001-2002 dated April 17, 2002 all the banks were advised, inter alia, as under:
LFAR in respect of branch should be addressed by the branch auditors to the Chairman of the bank, concerned with a copy thereof to the Central Statutory Auditors.
2. The above matter has been examined in light of Para B (1) (ii) of Guidelines for Appointment of Statutory Auditors in Public Sector Banks hosted on RBI web site (at link http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=946#AN2) which is reproduced below:
In respect of branches below the cut-off point, which are subject to concurrent audit by chartered accountants, henceforth, LFARs and other certifications done earlier by SBAs will now be submitted by the concurrent auditors and such branches may not generally be subject to statutory audit.
3. You are advised that henceforth Concurrent Auditors, who are chartered accountants, of branches below the cut-off point will submit LFAR only to the Chairman of the bank. The banks in turn will consolidate/compile all such LFARs submitted by the Concurrent Auditors and submit to Statutory Central Auditor as an internal document of the bank.
4. Please acknowledge receipt.
Effective and Stringent Action only in known and big cases of Tax Evasion to Demonstrate to the Large Number of Compliant Tax Payers that the Tax Laws are just and Fair and to Encourage Voluntary Tax Compliance
It may be worthwhile to mention here that one of the issues for discussion during the All India Conference of Chief Commissioners and Director Generals of Income Tax was 'Lack of Credible Deterrence through Penalty and Prosecution – Causes and Ways to Improve'. The discussion was within the limited context of cases where action under Section 132 of the IT Act 1961 for search and seizure had been undertaken by the Investigation Division of the Department. These are exceptional cases which are selected for intrusive action after detailed intelligence gathering and due diligence on the basis of credible evidence and are not the norm for routine cases. It may be noted that only 537 searches were conducted in Financial Year 2014-15 in which admitted undisclosed income was to the tune of Rs.10288.05 crore.
In such cases where after intensive fact assessment, the Department undertakes search and seizure action as permissible under the law, mere tax collection does not have deterrence value and these need to be taken to their logical conclusion in terms of levy of penalty and launching of prosecution as per the provisions of the Income Tax Act.
21 June 2015
Exemptions to Private Limited Companies as per recent MCA notification:
1. Holding, associate, subsidiary or fellow subsidiary will not be related party for the purpose of Section 188 (2(76)).
2. Provision wrt Kind of share capital (Section 43) and voting rights (Section 47) will not apply if articles of private limited company so provides
3. Number of companies in which auditors can be auditors (20 in number) will not be counted if paid up capital of private company is less than Rs.100 crores (Section 141)
4. Section 101 to 107 and Section 109 will not apply (notice of general meeting, explanatory statement, proxies etc., which were exempt under Old Act also) if articles so provide
5. Section 62 – minimum and maximum period for which rights issue should remain open will not be applicable if 90% of members give consent
6. Section 62- ESOP can be given with Ordinary resolution instead of special resolution
7. Board resolutions passed under Section 179 are not required to be filed with RoC in MGT 14
8. Deposit of 1 lakh etc. is not required to be given (Section 160). Entire Section 160 is not applicable
9. No need to have separate voting on the resolution for appointment of more than 1 director (Section 162)
10. No approval of shareholders required for matters under Section 180 (borrowing, security etc.)
11. Interested director can participate if he/ she has disclosed his interest (Section 184)
12. Section 185 (loan to director) will not apply if
· no other body corporate has invested,
· if borrowing from banks/ financial institution or any body corporate is less than twice paid-up capital or Rs.50 crores whichever is lower and
· there is no default in repayment of such borrowing
13. Related party can vote on the resolution (Section 188). Second Proviso will not be applicable
14. No approval of shareholders etc. required for appointment of managerial personnel of private company and no return needs to be filed with RoC in this regard (Section 196 (4) and 196 (5) will not be applicable)
New Delhi, the 1st June, 2015
The CCsIT (CCA)
Subject: Non-deposit of Tax Deducted at Source – regarding. Sir/Madam,
Grievances have been received by the Board from many taxpayers that in their cases the deductor has deducted tax at source from payments made to them in accordance with the provisions of Chapter-XVII of the Income-tax Act, 1961 (hereafter ‘the Act’) but has failed to deposit the same into the Government account leading to denial of credit of such deduction of tax to these taxpayers and consequent raising of demand.
2. As per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. However, as per Section 205 of the Act the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provisions of Chapter- XVII. Thus the Act puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch cannot be enforced coercively.
3. This may be brought to the notice of all the assessing officers in your region so that if the facts of the case so justify, the assessees are not put at any inconvenience on account of default of deposit of tax into the Government account by the deductor.
4. This issues with the approval of Chairperson, CBDT.
Under Secretary to the Govt. of India
18 June 2015
A Steering Committee been formed under the Co-Chairmanship of Additional Secretary, Department of Revenue and Member Secretary, Empowered Committee of State Finance Ministers. This Committee has Members from Department of Revenue, Central Board of Excise & Customs, Goods and Services Tax Network (GSTN) and representatives of State Governments. This Committee shall monitor the progress of IT preparedness of GSTN/CBEC/Tax authorities, finalisation of reports of all the Sub-Committees constituted on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST laws/rules. The Committee shall also monitor the progress on consultations with various stakeholders like trade and industry and training of officers.
Another Committee has been formed under the Chairmanship of the Chief Economic Advisor, Ministry of Finance to recommend possible tax rates under GST that would be consistent with the present level of revenue collection of Centre and States. While making recommendations, this Committee would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST. The Committee would also analyse the Sector-wise and State-wise impact of GST on the economy. The Committee is expected to give its report within two months.
Meanwhile, progress is underway to finalise various aspects of GST design like business processes, payment systems, matters relating to dual control, threshold, exemptions, place of supply rules and also making of model GST, SGST and IGST laws and rules. This task is being undertaken through various Sub-Committees formed by the Empowered Committee which has officers from Government of India as well as State Governments as Members.
Goods and Services Tax Network (GSTN) is taking steps for preparing the IT infrastructure for roll out of GST. The IT infrastructure shall enable online registration, filing of returns and getting refunds. Various State Governments are also preparing the necessary back end IT infrastructure for implementation of GST which shall relate to aspects like assessments and audit.
Periodic reviews are being held in the Department of Revenue to monitor the progress of all the above activities.
17 June 2015
Presently , An Assessee Can only file return for last 2 years and claim refund if any due and not beyond that. In case he missed to file return within prescribe timeline he has no choice other than to forget his refund claim. Income Tax Department in Latest circular No 9/ 2015 has guided on how an assessee who has failed to file return and claim Refund according to section 119(2) (B) can now make an application and get Refund due up to last 6 Assessment years.
STEP ONE : FILE AN APPLICATION
In case the amount is less than Rs 10 Lacs CsIT for any one assessment year. The Application shall be made to the Pr.CsIT/CIT. CIT will review the application & communicate with reason acceptance/rejection of such applications/claims.--In case the amount is more than Rs 10 Lacs the Application to be made to Chief Commissioner of Income Tax--In case the amount is more than Rs 50 Lacs then to CBDT.
STEP TWO ; MAY FILE UPTO 6 YEARS
Condonation Application can be file up to six previous years---Even Loss can be Claimed for Carry forward---The officer will be ensured that the income/loss declared and /or refund claimed is correct and genuine and also that the case is of genuine hardship on merits.
STEP THREE; CLEARENCE FROM AUTHORTIES
The power of accepting or rejecting the Condonation Application of Delay shall be subject to following Condition that The Income of Assessee is not assessable in the hands of other person under any provision of Income Tax Act. Further No Interest will be admissible on belated claim of Refunds and The Refund has arisen due to excess payment of Advance Tax or Self-Assessment Tax or due to excess deduction of TDS.
STEP FOUR ; SUPPLEMENTARY CLAIMS
A belated application for supplementary claim of refund (claim of additional amount of refund after completion of assessment for the same year) can be admitted for condonation provided other conditions as referred above are fulfilled. Assessee will not receive interest on belated claim of refunds.
STEP FIVE: CUMULATIVE ITEREST BEYOND SIX YEARS
In the case of 8% Savings (Taxable) Bonds, 2003 issued by Government of India opting for scheme of cumulative interest on maturity but has accounted interest earned on mercantile basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest/TDS, over various financial years involved, the time limit of six years for making such refund claims will not be applicable .
03 June 2015
100 things of TAX for common man.!!
1) Detailed information of Income Tax is available on www.incometaxindia.gov.in
2) As per Income Tax Act, Income is taxable under five heads- Salary, House Property, Business or Profession, Capital Gain and Other Sources.
3) Salaried person must obtain Form 16 from his Employer Every Year.
4) Income Tax Return should be filed by considering Form 16 and other Income.
5) Transport Allowance is exempt up to Rs. 1,600 per month.
6) 30% Standard deduction is available on Income from House Property.
7) Income to be considered as deemed let out on second House property.
8) For self-occupied house property, deduction of Interest on Housing Loan is allowed up to Rs. 200,000/- and for other house property actual expenditure of Interest on Housing Loan is allowed.
9) Repayment of Principal amount of Housing Loan is deductible u/s 80C up to Rs. 150,000/-.
10) Tax Audit is compulsory if sales turnover exceeds Rs. 1 crore in case of business.
11) Tax Audit is compulsory if the Gross Receipts of Professionals exceeds Rs.25 lakhs.
12) If sales turnover is below Rs. 1 crore, then net profit of 8% or higher is to be taken as business income otherwise tax audit is required.
13) The Due Date for Tax Audit and income Tax Return is 30th September.
14) Assessee other than Company and those eligible for Tax Audit are required to file Income Tax Return before 31st of July. Extended date is 31st Aug for F.Y. 14-15.
15) Accurate Stock Valuation should be done on 31st of March.
16) Cash payment should not be made to a person in single day exceeding Rs.20, 000.
17) Cash Payment limit for Transporters is Rs. 35,000/-.
18) Loans, deposits and Immovable Properties transactions should not be carried out above Rs. 20,000 in cash.
19) Business loss can be carried forward to Next 8 Years.
20) Tax Audit applicable assesses should deduct TDS on particular transactions.
21) TDS should be made on the date of Credit or Payment basis of whichever is earlier.
22) TDS payment should be made on or before 7th day of Next Month.
23) TDS Returns are to be filed Quarterly.
24) TDS returns can be revised any number of times.
25) TDS should be deducted and paid if applicable.
26) If TDS is not deducted then deduction of 30% of Expenditure is not allowed.
27) Late filling of TDS return attracts late filing fees of Rs. 200 per day.
28) Long Term Capital Gain will arise if transfer of specified Capital Assets is made after 3 years.
29) Generally Long Term Capital Gains is taxable @ 20%
30) STT paid Long Term Capital Gain on Shares,etc is exempt from Tax.
31) Short Term Capital Gain is Taxable @ 15% if STT is paid.
32) Capital Gain on Immovable Properties is chargeable at Stamp Duty Value or Selling Price whichever is higher.
33) Dividend received from domestic company is exempt from Tax.
34) Agricultural Income is exempt from Tax.
35) Gifts received form stranger of an Amount exceeding Rs. 50,000 is taxable.
36) Income Tax is not chargeable on Gifts received at the time of Marriage, Will, and in case of Succession and from specified relatives.
37) Maximum deduction limit u/s 80C, 80CCC and 80 CCD is Rs.1, 50,000.
38) Deduction of Medical Insurance Premium is available up to Rs. 25,000.
39) Deduction of Medical Insurance Premium paid for Parents is available up to Rs. 20,000.
40) Deduction limit of Interest earned on Saving Account is up to Rs.10, 000.
41) Income earned by a Minor child is clubbed in the hands of Parents.
42) Every Taxpayer should verify his Form 26AS.
43) Form 26AS provides the Information regarding the TDS, Advance Tax paid and details of refund.
44) Notice may be sent to the Taxpayer if the Income mentioned in Form 26AS and the Income Tax Return filed is having difference.
45) Basic Exemption Limit for individuals for F. Y. 2015-16 is Rs. 2,50, 000.
46) Basic Exemption Limit for Senior Citizen i.e. above 60 years age is Rs. 3,00, 000.
47) Basic Exemption Limit for Super Senior Citizen i.e. above 80 years age is Rs. 5,00,000.
48) Advance Tax is to be paid if Tax Liability during the year exceeds Rs. 10,000.
49) 12% of Surcharge is applicable if Income Exceeds Rs. 1Crore.
50) Income Tax Return should be filed if Income exceeds Basic Exemption Limit.
51) 30% of Tax applicable on Income of Partnership Firm, Company, LLP etc.
52) For Companies – Minimum Alternate Tax and for other Assesses – Alternate Minimum Tax rate is 18.5%.
53) Details of all Bank Accounts have to be given in Income Tax return.
54) Passport number is required to be given in Income Tax return.
55) Detail of Fixed Assets held in Foreign Country is required to be given in Income Tax return.
56) If taxable income of Individual is less than Rs. 5 Lakhs then relief of Rs. 2,000/- is available in Tax.
57) Aadhar Card No. is required to be mentioned in Income Tax return.
58) E-filling of return is compulsory if income exceeds Rs. 5 lakhs.
59) In Income Tax, E-filling of return can be done for Previous 2 Years only.
60) PAN Card is essential for Taxpayer and it should not be used as Id Proof.
61) From FY 2014-15 Depreciation is to be calculated as per New Companies Act.
62) Domestic Transfer Pricing is applicable on transaction exceeding an Amount Rs. 20 Crores.
Now some points about MVAT:
63) VAT registration is compulsory if Gross Turnover exceeds Rs. 10 lakhs.
64) VAT rate is 1%, 5%, 12.5%, and 20% and CST rate is 2% on respective commodities.
65) Return Periodicity should be verified every year from the Departments site www.mahavat.gov.in
66) Periodicities of Returns are Monthly, Quarterly and Half yearly.
67) Vat payment and return should be filed within 21st of next Quarter, Month or Half Year.
68) Late payment of VAT will attract Interest @ 1.25% p.m.
69) A late fee of Rs. 1000 is to be paid if late return is filed.
70) Late fee of Rs. 5000 is charged if Return filed after 30 days.
71) Full set off can be taken on Plant and Machinery and Electrical Fitting.
72) 3% of retention is to be taken on Office Equipment’s and Computer.
73) Setoff of Software, Building and passenger car is not available.
74) AnnexureJ1 mentioning TIN of sellers has to be filed with Vat return.
75) AnnexureJ2 mentioning TIN of buyers has to be filed with Vat return.
76) Vat Setoff cannot be carried forward to next year if it exceeds Rs. 5 lakhs.
77) VAT Audit is compulsory if Gross Turnover exceeds Rs. 1 Crore.
78) Due date for filling VAT Audit report is 15th January.
79) Dealer can verify the details of return filed and Registration from the “Dealer information System.”
80) Mis-match report of Annexure J1 and J2 should be verified and should be reconciled.
81) Composition Scheme is available for Retailers having Gross turnover less than Rs. 50 Lakhs.
82) WCT is to be deducted if Works Contract exceeds Rs. 5 lakhs.
83) 5% of WCT is to be deducted for non-registered dealers instead of 2%.
84) TDS deductor has to file return before 30th June after end of financial year.
85) Profession Tax is required to be paid for Employer and Employee.
86) Every Businessmen and Professional assesse has to pay his Professional Tax before 30th June.
87) Employer has to pay Profession Tax of employees by deducting from the salary.
88) If Professional Tax Liability exceeds Rs. 50,000 then monthly Return have to be filed otherwise annually.
89) A late fee of Rs. 1000 is to be paid if Profession Tax return in not filed before due date.
90) Profession Tax is not Applicable to Men if salary does not exceed Rs. 7, 500.
91) Profession Tax is not Applicable to Women if salary does not exceed Rs. 10,000.
92) Service Tax is applicable if Taxable Service Provided exceeds Rs. 10 lakhs.
93) 14% of service Tax is applicable w.e.f 1st June, 2015.
94) Company Assesse has to pay Service Tax monthly.
95) Individual, Partnership Firm, LLP assesse has to pay Service Tax Quarterly.
96) Service Tax is payable on the 6th after end of Month or Quarter
97) Interest is payable @ 18%pa if Service Tax is not paid before the due date.
98) Interest @ 30% is to be paid if service Tax is not paid for a Year.
99) Service Tax return should be filed Half Yearly before 25th October and 25th April.
100) If service Tax is not paid of Rs. 50 lakhs then there is imprisonment
01 June 2015
MCA has released notification dated 29th May,2015 notifying the said date as the effective date of provisions of Section 1 to 12 and 15 to 23 of the Companies (Amendment) Act, 2015. All sections of the amendment act have been made effective w.e.f. 29th May, 2015 except the sections relating to Section 143 (related to 'fraud') and 177 (related to omnibus approval by audit committee) of Companies Act, 2013.
Five Related amendment Rules have also been released today in Companies (Registration Offices and Fees) Rules, Companies (Registration of Charges) Rules, Companies (Declaration and Payment of Dividend) Rules, Companies (Incorporation) Rules and Companies (Share Capital and Debentures) Rules.
Highlights of each of the Amendment Rules are as under:
1. Companies (Incorporation) Second Amendment Rules, 2015 – The Incorporation Rules have also been amended by inserting a new proviso in rules 12 pursuant to which if pursuing of any objects require any Sectoral regulator's approval such as RBI, SEBI etc. then the registration or approval shall be required before pursuing the said objects and a declaration shall be required to be submitted in that behalf. This resolves a long pending confusion as to whether the RoC would require sectoral regulator's approval before approving the application for incorporation of a company. The format of license and MoA of a section 8 company is also amended in the new amendment.
2. Companies (Declaration and Payment of Dividend) Second Amendment Rules, 2015 – Sub Rule 5 of Rule 3 mandatorily requiring the setting off previous losses & depreciation not provided in previous year or years against the profits of the current year before declaration of dividend has been done away and the said sub rule has been omitted by the said amendment Rules.
3. Companies (Registration of Charges) Amendment Rules, 2015 – In sub rule 4 of Rule 3 relating to verification of instrument / deed consisting of property situated outside India the mandatory requirement of affixation of seal of the company has been done away and now the same has been made optional.
4. Companies (Registration Offices and Fees) Second Amendment Rules, 2015 – The Board Resolutions passed pursuant to section 179(3) and requiring filing with MCA pursuant to section 117(3)(g) would now neither be available for public inspection nor certified copies would be issued by RoC of such BRs filed by cos.
5. Companies (Share Capital and Debentures) Second Amendment Rules, 2015 – In Sub rule 3 of Rule 5 relating to Certification of Share Certificate the mandatory requirement of affixation of seal of the company has been done away and now the same has been made optional. Further issue of Share Certificate would require signatures of atleast 2 directors authorised by Board OR by any one director as authorised by the Board and mandatorily by the Company Secretary of the Company.
Ministry of Finance
31-May, 2015 13:53 IST
Income Tax Return Forms ITR 1, 2 and 4S Simplified for Convenience of the Tax Payers;
A New Form ITR 2A Proposed which can be Filed by an Individual or HUF who does not have Capital Gains, Income from Business/Profession or Foreign Asset/Foreign Income; In Form ITR 2 and the New Form ITR 2A, the Main Form will not Contain more than 3 Pages, and other Information will be Captured in the Schedules which will be Required to be filled only if applicable;
As the Software for these Forms is under Preparation, they are likely to be available for e-filing by 3rd week of june 2015;Time Limit for Filing these Returns is also Proposed to be Extended up to 31.08.2015;
Only Passport Number, if available, would be required to be given in forms Itr-2 and itr-2A. Details of Foreign Trips or Expenditure thereon are not required to be Furnished
Forms ITR 1, 2 and 4S for Assessment Year 2015-16 were notified on 15th April 2015 (15.04.2015). In view of various representations, it was announced that these ITR forms will be reviewed. Having considered the responses received from various stakeholders, these forms are proposed to be simplified in the following manner for the convenience of the taxpayers:-
1) Individuals having exempt income without any ceiling (other than agricultural income exceeding Rs. 5,000) can now file Form ITR 1 (Sahaj). Similar simplification is also proposed for individuals/HUF in respect of Form ITR 4S (Sugam).
2) At present individuals/HUFs having income from more than one house property and capital gains are required to file Form ITR-2. It is, however, noticed that majority of individuals/HUFs who file Form ITR-2 do not have capital gains. With a view to provide for a simplified form for these individuals/HUFs, a new Form ITR 2A is proposed which can be filed by an individual or HUF who does not have capital gains, income from business/profession or foreign asset/foreign income.
3) In lieu of foreign travel details, it is now proposed that only Passport Number, if available, would be required to be given in Forms ITR-2 and ITR-2A. Details of foreign trips or expenditure thereon are not required to be furnished.
4) As regards bank account details in all these forms, only the IFS code, account number of all the current/savings account which are held at any time during the previous year will be required to be filled-up. The balance in accounts will not be required to be furnished. Details of dormant accounts which are not operational during the last three years are not required to be furnished.
5) An individual who is not an Indian citizen and is in India on a business, employment or student visa (expatriate), would not mandatorily be required to report the foreign assets acquired by him during the previous years in which he was non-resident if no income is derived from such assets during the relevant previous year.
6) As a measure of simplification, it has been endeavoured to ensure that in Form ITR 2 and the new Form ITR 2A, the main form will not contain more than 3 pages, and other information will be captured in the Schedules which will be required to be filled only if applicable.
As the software for these forms is under preparation, they are likely to be available for e-filing by 3rd week of June 2015. Accordingly, the time limit for filing these returns is also proposed to be extended up to 31st August, 2015 (31.08.2015). A separate notification will be issued in this regard.