Stipend is taxable ?

Image result for stipendHello everyone,

Hope all of you enjoying our updates. Today, I would like to share income tax provisions on stipend. Taxation of Stipend has been a matter of much debate. In the Income Tax Act from a purely factual standpoint there is no mention of ‘stipend’.

Income Tax Provisions

Under Section 17(1) of the Income Tax Act — wages, pension, gratuity, fees or commission or profits in lieu of salary, advance salary, payment for leaves standing to the credit of the employee — have all been included under the definition of salary. This is taxable in the hands of the employee.

The Income Tax Act has laid down that “scholarship” granted to meet the cost of education’ is exempt from income tax under Section 10(16).

Case Laws

  • Sudhir Kumar Sharma vs ITO (1983 15 Taxman 100 Jaipur Mag) – where it has held that the stipend received by an articled clerk from a chartered accountant is exempt under Section 10(16). The reason given by the Bench was that the stipend was paid to meet the cost of books, coaching fees, examination fees, and so on.
  • ITO vs Dr. G. N. Ramachandran (1 ITD 902 Bangalore) – where it held that stipend received to meet the cost of education would be exempt under Section 10(16).

So, in case of Company Secretary’s, Chartered Accountants, Cost Accountants and Advocates, Stipend is exempted because it is paid to meet the cost of books, coaching fees, examination fees, and so on.

When Doctors receive Stipend at hospitals Usually doctors earn stipend as they pursue a higher degree at a hospital. Such work by the doctor is similar in nature to that of a full time employee. The doctor is gaining experience from such work and performing duties like regular doctors – in such cases your Stipend may be taxed.

MBA graduates or engineering graduates receive stipend by pursuing internship at a company Some companies may even offer accommodation. The Stipend letter may or may not include a break up like a salary letter does. This may or may not be similar to the employment letter offered to a full time employee. However, if this payment is made for you to gather an experience and perform services similar to an employee, such Stipend income shall be taxable.

Filing of Income Tax Return – If total stipend is not more then exemption limit specified under income tax slab rates (vary every year) then no need to file income tax return otherwise you must go for filing income tax return.

DRAFT COMPANIES (REGISTERED VALUERS AND VALUATION) RULES, 2017

Ministry of Corporate Affairs

NOTICE INVITING COMMENTS ON THE DRAFT COMPANIES (REGISTERED VALUERS AND VALUATION) RULES, 2017

Dated: 26th May, 2017

The draft Companies (Registered Valuers and Valuation) Rules, 2017 have been placed on the Ministry’s website www.mca.gov.in for suggestions/ comments.

Image result for RULESSuggestions/ comments on the draft rules along with justifications in brief may be sent latest by 27/06/2017 through email at comments_rv@mca.gov.in It is requested that the name, contact number, email address and postal address of the sender be indicated clearly at the time of sending suggestions/comments in the following format:-

Format for sending suggestions/comments

1. Name, contact number, email address and postal address of stakeholder.

2. Suggestions/comments as under Serial Number | Rule Number | Suggestion/ comments | Justification.

Click here to open draft rules.

Highlights

#DRAFT Companies (Registered #Valuers and #Valuation) Rules, 2017.

Rule 6: Eligibility of an Individual for registration as #Registered valuer:

1. #Post-graduate degree and at least #three years of experience in the discipline thereafter; or

2. A Bachelor’s degree and have at least #five years of experience in the discipline thereafter; or

3. Membership of a #professional institute set up under an Act of Parliament and at least #five years’ experience after such membership.

How to check annual filing status of the Company or LLP at MCA Portal

Hello everyone,

Hope all of you enjoying our updates. Today I would like to guild you about “How to check annual filing status of the company at ministry of corporate affairs website.  The term annual filing means statutory filing of the company as per companies act 2013.

downloadAs a part of Annual Filing, Companies incorporated under the Companies Act 1956 or Companies Act 2013, are required to file the following E-Forms with the Registrar of Companies (ROC):-

Form 23AC : For filing Balance Sheet (applicable to all Companies other than select class of Companies)

Form 23ACA : For filing Profit & Loss Account (applicable to all Companies other than select class of Companies)

Form 23AC-XBRL : For filing Balance Sheet in XBRL format (applicable to select class of Companies)

Form 23ACA-XBRL : For filing Profit & Loss Account (applicable to select class of Companies)

Form 20B : For filing Annual Return by Companies having share capital

Form 66 : For filing Compliance Certificate by Companies having paid up capital of Rs. 10 lakh – Rs. 2 crore

Form 21 A : For filing Annual Return by Companies not having share capital

Form AOC-4 : For filing financial statement and other documents (For FY start on or after 01.04.2014)

Form AOC4-CFS : Form for filing statement containing salient features of consolidated financial statement of a group (For FY start on or after 01.04.2014)

Form AOC4-XBRL : For filing XBRL document in respect of financial statement and other documents (For FY start on or after 01.04.2014)

Form MGT-7 : Form for filing Annual Return by Companies having share capital (For FY ending on or after 01.04.2014)

Navigation – (WWW.MCA.GOV.IN) Home MCA Services > E-Filing > Check Annual E-Filing Status

Click here to open link directly

Bitcoin

A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

History of Bitcoin – According to legend, Satoshi Nakamoto began working on the Bitcoin concept in 2007. While he is on record as living in Japan, it is speculated that Nakamoto may be a collective pseudonym for more than one person. On 22 May 2010, Laszlo Hanyecz made the first real-world transaction by buying two pizzas in Jacksonville, Florida for 10,000 BTC. In five days, the price grew 1000%, rising from $0.008 to $0.08 for 1 bitcoin. top of a price rally, during which the value was growing by 5-10% daily.

August 2008

Three individuals, Neal Kin, Vladimir Oksman, and Charles Bry file an application for an encryption patent application. All three individuals deny having any connection to Satoshi Nakamoto, the alleged originator of the Bitcoin concept. The three also register the site Bitcoin.org in the same month, over on anonymousspeech.com – which allows people to buy domain names anonymously.

BitcoinBitcoin trading at over Rs 2 lakh in India as global prices cross $2,500

A surge in demand has seen a price rally in crypto-currencies worldwide, with buying led by investors in the US, China, Japan, Korea and even India. The average bitcoin price is around $2,670, about 155 per cent more than at the beginning of the year. In India, it went up to trade at Rs 2.26 lakh at the time of writing this report.
With supply lagging, the India price is at a 20 per cent premium to the global one; the South Korean market is at a 35 per cent premium, at $3,800. The US Bitstamp index is quoting at a $100 premium to the Chinese market. In India, one exchange has had to issue a cautionary note to investors; another is facing a system slowdown.
Zebpay, the largest exchange here, with a little over half a million investors, tweeted: “Bitcoin prices are very volatile now. Please use caution while investing. This is a new technology innovation on a global platform but at an early stage. Your investment should match your knowledge (about the bitcoin).”

Rule 7 of chapter 24 of companies act, 2013 – MCA

Related imageManner and Conditions of Filing

Every application, financial statement, prospectus, return, declaration, memorandum, articles, particulars of charges, or any other particulars or document or any notice, or any communication or intimation required to be filed or delivered or served under the Act and rules made there under, shall be filed or delivered or served in computer readable electronic form, in portable document format (pdf) or in such other format as has been specified in any rule or form in respect of such application or form or document or declaration to the Registrar through the portal maintained by the Central Government on its web-site or through any other website notified by the Central Government:

Provided that where the documents are required to be filed on Non-Judicial Stamp Paper, the company shall submit such documents in the physical form, in addition to their submission in electronic form, unless the Central Government, by an order, does not require submission in physical form and proof of delivery of documents submitted in physical form shall be scanned and form part of attachment to the e-form.

Provided further that if stamp duty on such documents is paid electronically through the portal maintained by the Central Government or through any other website notified by the Central Government, then, the company shall not be required to make physical submission of such documents, in addition to their submission in the electronic form:

Provided also that in respect of certain documents filed under the Act which are not covered for payment of stamp duty through the portal of the Central Government, and stamp duty payable on such documents in the respective State is equal to or less than one hundred rupees, the company shall scan such stamped documents complete in all respects and shall file electronically for evidencing by the Registrar and shall not be required to submit such documents, except those which are required to be filed for compounding of offences or adjudication of penalties or applications to Central Government or Regional Director in the physical form separately:

Provided also that unless otherwise stated in any law for the time being in force, the company shall retain such documents duly stamped in original permanently for the documents relating to incorporation and matters incidental thereto, changes in any of the clauses of the Memorandum and Articles of Association and in other cases for a minimum period of eight years from the date of filing of the documents and shall be required to produce the same as and when the same is required for inspection and verification by the competent authority under any law for the time being in force:

Provided also that any correspondences (physically or electronically) and documents to be filed by any person shall contain name, designation, address, membership number or Director Identification Number, as the case may be, of the person signing such document and make sure correctness thereof and in no case, correspondence, merely with signature and writing authorised signatory shall be acceptable.

Provided also that no request for recording any event based information or changes shall be accepted by the Registrar from such defaulting companies, unless they file their updated Balance Sheet and Profit and Loss Account and Annual Return with the Registrar of Companies except,-

(i) filing of order of Court or other authorities,

(ii) Balance Sheet and Profit and Loss Account,

(iii) Compounding application,

(iv) Form for transfer of money to Investor Education and Protection Fund,

(v) Application for removal of the Auditor and

(vi) GNL-1 for making company active.

E-Companies Act, 2013 – Absolutely Free

83Hello everyone, Trust all of you enjoying our updates. Today I would like to share a link which is provided by Ministry of Corporate Affairs (MCA). Now MCA provide E-Companies Act, 2013 absolutely free for all stakeholders. It means no need to buy paid software’s to access companies act. Brief details regarding this link are below:-

  • Full updated version with chapter vise section details.
  • Search option (By Section or Content)
  • Companies Rule
  • Effective Dates
  • Latest Notification/Circulars
  • Easy access without login of any account

Click here to open E-Companies Act, 2013

Click here to open Companies Rules

Click here to open effective date of sections

Click here to open Notifications / Circulars

 

 

Paytm Is Now Payments Bank – RBI

Image result for paytm bankAs per RBI press release (Press Release : 2016-2017/3148) Paytm is payment bank now.

Interest rate

The newly launched Paytm Payments Bank is offering 4% interest rate on savings account. Its competitor Airtel Payments Bank is giving 7.25% interest on deposits in savings accounts, while India Post Payments Bank is providing 5.5% interest on deposits depending on the amount.

Paytm Payments Bank’s interest rate is in line with all the large commercial banks, including State Bank of India, Bank of Baroda and ICICI Bank Ltd, which continue to offer 4% interest rate on savings account deposits. Some of the smaller banks, including Yes Bank Ltd and RBL Bank Ltd, offer 5.5-7.1% interest rate on savings accounts, depending on the deposit amount.

India Post Payments Bank is offering three kinds of accounts: one regular and two basic savings bank deposit accounts.

Date : May 23, 2017
Paytm Payments Bank Limited commences operations

Paytm Payments Bank Limited has commenced operations as a payments bank with effect from May 23, 2017. The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India.

Shri Vijay Shekhar Sharma was one of the 11 applicants who was issued in-principle approval for setting up a payments bank, as announced in the press release on August 19, 2015.

Alpana Killawala
Principal Adviser