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Showing posts from May, 2015

New income tax return forms.

Revenue department notifies new income tax return forms. The tax department extends last date for filing of I-T returns to August 31 (PTI)
The Finance Ministry has notified revised Income Tax Return (ITR) forms. These forms will be used to file return for the assessment year 2015-16 (for income earned during fiscal year 2014-15). It has also been proposed to extend the last date for filing returns to August 31 as against normal practice of July 31.Under the new forms, 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. Similarly, as regard to 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 o…

FEMA Rule-Current Account Transactions-Amendment

RBI fixes USD 2,50,000 for remittances by individual for aggregate of certain current account transactionsThe Reserve Bank of India ('RBI') has notified amendment to the Foreign Exchange Management (Current Account Transactions) Rules to specify an aggregate limit of USD 2,50,000 for remittance in foreign currency for certain current account transactions, inter-alia, for private visits to any country (except Nepal and Bhutan), gifts or donations, going abroad for employment, emigration, business travels, or medical treatment abroad, etc.Remittances in foreign currency by an individual for the following current account transactions shall be made within limit of USD 2,50,000:a) Holiday/Private Visits abroadb) Business tripc) Gifts/Donationd) Employment or educatione) Remittance for Maintenance of a close relative abroadf) Medical treatment abroadg) Emigration facilitiesFurther, it is provided that an individual can avail of foreign exchange facility of an amount …

NRI-FDI

Government amends FDI rules to allow NRIs to invest in IndiaThe Union Cabinet on Thursday approved amendments to the Foreign Direct Investment (FDI) policy on investments by Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) and Overseas Citizen of India (OCIs) for greater forex remittances.A decision in this regard was taken by the Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi.The Cabinet "approved amendments to FDI policy on investments by NRIs, PIOs & OCIs. This will give PIOs & OCIs parity with NRIs in eco & edu (economy and education)," an official spokesperson said."The amendment in FDI for OCIs, NRIs & PIOs will lead to greater forex remittances & investment," he added.As per the DIPP's proposal any investment made by NRIs. OCIs and PIOs from their rupee account in India, will not be treated as foreign investment.An official said that the non-repatriable NRI funds would be treated…

New CA Course applicable from 2016 ( drafted by ICAI )

FYI - ICAI Notifications
New CA Course applicable from 2016 ( drafted by ICAI ) :
1. Change in CA Foundation :-
- Name changed from CPT to CA Foundation
- Duration increased to 9 months
- Number of Papers 4
Paper 1 - Fundamentals of Accounting (100
Marks)
Paper 2- Quantitative Aptitude (100 Marks)
Paper 3A - Mercantile Law (60 Marks)
Paper 3B - General Economics (40 Marks)
Paper 4A - General English (50 Marks)
Paper 4B - Business Communication (50 Marks)
- Partly descriptive & partly MCQ paper.
2. Change in CA Intermediate :-
- Cost Accounting & FM to be 2 different subject.
- Duration increased from 9 months to 12 months.
- ITSM removed
- Number of Papers 8
Paper 1 - Accounting ( 100 Marks)
Paper 2 - Company Law, Other law and Ethics
Part I : Company Law (60 Marks)
Part II: Other Law (20 Marks)
Part III: Ethics (20 Marks)
Paper 3 - Cost Accounting (100 Marks)
Paper 4 - Direct Taxes (100 Marks)
Paper 5 - Advanced Accounting (100 Marks)
Paper 6 - Auditing & Assurance (100 M…

Draft Circular on Range Concept

Draft norms for range concept in transfer pricing The tax department on Friday came out with draft norms for introduction of a range concept for calculating an Arms Length Price for valuing transactions between related entities for the purpose of taxation. The Central Board of Direct Taxes has proposed to use multiple year data for determining the price. At present, only one year's data is used for calculating the price.

CBDT Circular No.8

Important CBDT Circular Sets Out Procedure For Speedy Resolution Of Taxpayer's Grievances Regarding Outstanding Tax DemandsThe CBDT has issued Circular No. 8 of 2015 dated 14.05.2015 setting out the detailed procedure that has to be followed by taxpayers in response to an arrear demand from the AO. The Ministry of Finance has also issued a press release stating that the said Circular is because the Income Tax Department has taken note of grievances of taxpayers arising on account of outstanding tax demand which may be inaccurate due to non-reporting or delayed reporting of TDS by deductors leading to mismatch between the claim and data available with the Department, non-posting of challans, non-disposal of rectification applications, incorrect details of income or pre-paid taxes reported by taxpayer etc. It is emphasized that the Income Tax Department is committed to early and satisfactory resolution of taxpayers' grievances. It is also stated th…

Draft Gold Monetization Scheme

Draft Gold Monetization SchemeTheFinance Ministerin his budget speech for theUnion Budget 2015-16made the following announcement: "India is one of the largest consumers of gold in the world and imports as much as 800-1000 tonnes of gold each year. Though stocks of gold in India are estimated to be over 20,000 tonnes, most of this gold is neither traded, nor monetized. Keeping this in view, the government in Budget 2015-16 has announced the Gold Monetization Scheme which will replace both the present Gold Deposit and Gold metal Loan Schemes. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewellers to obtain loans in their metal account. Banks/other dealers would also be able to monetize this gold".Accordingly, a draft outline of the Scheme has been prepared. Comments and views are invited on the Draft Gold Monetization Scheme.Draft Gold Monetization Scheme(The outline of the Gold Monetization Scheme placed below i…

Guidance note issued by ICAI on CSR activities expenditure

FYI - ICAI today issued Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities. 
The objective of this Guidance Note is to provide guidance on recognition, measurement, presentation and disclosure of expenditure on activities relating to corporate social responsibility.
The Guidance Note does not deal with identification of activities that constitute CSR activities but only provides guidance on accounting for expenditure on CSR activities in line with the requirements of the generally accepted accounting principles including the applicable Accounting Standards.

Link for the guidance note: http://220.227.161.86/37627gn-csr150515.pdf

Supreme Court Upholds NCLT

Supreme Court upholds the constitutional validity of National Company Law TribunalREPORTABLE IN THE SUPREME COURT OF INDIACIVIL ORIGINAL JURISDICTIONWRIT PETITION (C) NO. 1072 OF 2013 MADRAS BAR ASSOCIATION VERSUSUNION OF INDIA & ANR. J U D G M E N TA.K. SIKRI, J. This writ petition filed by the petitioner, namely, the Madras Bar Association, is sequel to the earlier proceedings which culminated in the judgment rendered by the Constitution Bench of this Court in Union of India v. R. Gandhi, President, Madras Bar Association1 (hereinafter referred to as the '2010 judgment'). In the earlier round of litigation, the petitioner had challenged the constitutional validity of creation of National Company Law Tribunal ('NCLT' for short) and National Company Law Appellate Tribunal ('NCLAT' for short), along with certain other provisions pertaining thereto which were incorporated by the Legislature in Parts 1 B and 1 C of the Companies Act, 1956 (here…

Black Money Bill: All You Need to Know

Black Money Bill: All You Need to KnowThe black money Bill was passed by the Lok Sabha on Monday. Christened the Undisclosed Foreign Income and Assets (Imposition of New Tax) Bill, 2015, it seeks to check the black money menace with stringent provisions for those stashing illegal wealth abroad. The Bill provides for separate taxation of any undisclosed income in relation to foreign income and assets. Such income will henceforth not be taxed under the Income-tax Act but under the stringent provisions of the new legislation.
Here's your 10-point cheat-sheet to the story:1. According to the Undisclosed Foreign Income and Assets (Imposition of New Tax) Bill, 2015, those who conceal income and assets and indulge in tax evasion in relation to foreign assets can face rigorous imprisonment of up to 10 years.2. The offence will be non-compoundable and the offenders will not be permitted to approach the Settlement Commission for resolution of disputes.3. There will also be a penalty of 300 …

Companies amendment bill passed in Rajya Sabha

Companies amendment bill passed in Rajya Sabha Main features and relaxations are as under:1.      No minimum capital requirement of Rs.1 lakh (in case of private company) or Rs. 5 lakh (in case of public company)2.      Approval of shareholders under Section 188 (related party transactions) can be ordinary3.      Transaction between holding and wholly owned subsidiaries whose accounts are consolidated and laid before general meeting are exempt from shareholders’ approval requirement is exempt from requirement of obtaining shareholders’ approval4.      No requirement of common seal. If the company does not have common seal, authority in favour of any person by two directors or one director and company secretary, if any, will bind the Company5.      If deposit is accepted in violation of deposit rules or the company fails to repay deposit or interest thereon the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fi…

ICAI has issued today Guidance note on Accounting for Derivatives.

ICAI has issued today Guidance note on Accounting for Derivatives. This Guidance Note is an interim measure to provide recommendatory guidance on accounting for derivative contracts and hedging activities considering the lack of mandatory guidance in this regard with a view to bring about uniformity of practice in accounting for derivative contracts by various entities.Please refer link to view / Download GN on Accounting for Derivatives http://220.227.161.86/37597research27174.pdf

Proposed amendment : IMPORTANT effective from 1st JUNE, 2015;

Forwarding as received from Chintan Patel..
Proposed amendment :
IMPORTANT effective from 1st JUNE, 2015;
TDS provision u/s 194C applicable on payments to transporters vide Finance Bill, 2015

CURRENT SCENARIO:Under the existing provisions of sub section (6) of section 194C of the Income Tax Act, 1961, there is no deduction of tax from payments made to the contractor during the course of plying, hiring and leasing goods carriage if the contractor furnishes his Permanent Account Number (PAN) to the payer.REASON FOR THE AMENDMENT:This exemption (as mentioned above) applies to all the transporters irrespective of their size, which defeat the real intention of bringing this amendment vide Finance Bill, 2009.The memorandum explaining the provisions of Finance (No.2) Bill, 2009 indicates that the intention was to exempt only small transport operators (as defined in section 44AE of the Act) from the purview of TDS on furnishing of Permanent Account Number (PAN). Thus, the intention was to red…

Notification on Education Cess

Amendment to The CENVAT Credit Rules,2004 (CCR,2004)Rule 3(7)(b) of the CCR,2004 has been amended so as to allow utilization of credit of Education Cess and Secondary Education Cess for payment of basic excise duty in the following situations:1.Education Cess and Secondary & Higher Education Cess on inputs or capital goods received in the factory of manufacture of final product on or after the 1st day of March,2015;2.Balance 50% Education Cess and Secondary and Higher Education Cess on Capital Goods received in the factory of manufacture of final product in the financial year 2014-15; and3.Education Cess and Secondary & Higher Education Cess on input services received by the manufacture of final product on or after 1st day of March,2015;(Notification No.12/2015-Central Excise (N.T.) dated 30-04-2015 refers)

Illustrative formats of an auditors’ report on CFS

ICAI has today issued illustrative formats of an auditors’ report on CFS, covering some of the clauses of section 143(3) of the Companies Act, 2013 (and where the auditor does not have the responsibility for reporting on internal financial controls over financial reporting under section 143(3)(i) of the Companies Act, 2013).
These formats may be applied for the FY 2014-15 and until further announcement.Format of Auditor's Report(a) Unmodified opinion on the consolidated financial statements :  220.227.161.86/37520aasb27034-cfs-co.pdf(b) Modified opinion on the consolidated financial statements:  220.227.161.86/37521aasb27034-cfs-qo.pdf

Changes in Finance Bill,2015

Snippets of changes made in Finance Bill, 2015 as passed by the Lok SabhaThe Hon'ble Finance Minister had presented the Finance Bill, 2015 in lok Sabha on February 28, 2015. Now the Lok Sabha passed the Finance Bill, 2015 with certain changes. Originally the Finance Bill, 2015 proposed to provide relief from MAT only to FIIs without extending such relief to foreign companies. Now exemption from MAT has been proposed to be provided to foreign companies as well. Key changes as made to the Finance Bill, 2015 are given hereunder:1) MAT exemption to foreign coImpanies : The Finance Bill, 2015 proposed to provide relief from MAT only to FIIs without extending such relief to foreign companies. Thus, the foreign company would be liable to pay MAT on capital gains arising from transfer of securities and income arising from royalty, interest or FTS even if such income would not be chargeable to tax or taxable at lower rate in India by virtue of applicable double taxation avoida…