27 June 2015
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.
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