Word Format Indemnity Bond – PAN

Indemnity Bond – PAN

I, _____________________, R/o____________________, do hereby solemnly affirm and declare as under:

  • My PAN is:
  • I am regularly assessed in your ward/jurisdiction with PAN: ___________________.
  • I have only one PAN i.e ________________ which is used for last many years for filing my income tax returns.
  • I do not have any other PAN with me, if any allotted in your records, kindly deactivate the same.
  • I undertake to indemnify the income Tax Department for any loss that may be caused in the future.
  • Kindly activate my PAN: ___________________.

That the above statements are true to the best of my knowledge and belief.

(Deponent)

VERIFICATION

     Verified at New Delhi on this ________________ day of February, 2017, that the contents of the above affidavit are true and correct to the best of my knowledge and belief. No part of it is false and nothing material has been concealed therefrom.

                                                (Deponent)

Click here to download Indemnity Bond Format

PAN DEACTIVATION BY INCOME TAX DEPARTMENT

Image result for Income Tax PANThe income tax department in its latest drive has started de-activating PAN of all income tax assesses who were allotted more than one PAN at anytime in the past.

Unfortunately, in many cases the PAN being deactivated is the PAN on which the assessees are filing their income tax returns. Once, the PAN is de-activated by the income tax department, the income tax e-filing login of the assessee also gets blocked and the PAN holder is not able to do anything on the Income Tax e-filing portal such as filing of Income Tax Returns, view intimations and respond electronically to various communications by the ITD.

Ques: What should be done in case the PAN is de-activated?

Ans: In case your Permanent Account Number (PAN) is de-activated then you need to do the following:

1) You need to write a letter to your jurisdictional AO in the Income Tax Department for activation of your PAN.

2) Following documents need to be attached to the letter for activation of PAN:

  • Indemnity Bond in favour of the Income Tax Deptt.
  • Copy of PAN on which the PAN holder is regularly filing the Income Tax Return.
  • Copy of last three years Income Tax Returns filed on the PAN de-activated.
  • It takes atleast 10-15 days for the Income Tax Department for re-activating the PAN after submission of letter to ITD.

Ques: I have received online intimation/mail regarding cash deposits during demonetization, how do I respond if my PAN is de-activated and I cannot login to the e-filing portal?

Ans: If you have received any intimation from the ITD for which an online response needs to be filed but your e-filing login is blocked then you need to approach your Jurisdictional AO for activation of your PAN ASAP as stated in the previous question.

Since, the re-activation of PAN by ITD takes some time therefore you can respond to the intimation manually by filing a response/letter to the jurisdictional AO.

Although, you might have filed the offline/manual response to the AO but you still need to ensure that you file the online response to the intimation as soon as your PAN is re-activated.

RBI Updates

  • The Reserve Bank of India has announced that the cash withdrawal limit on saving account will be removed from 13th March, 2017. Further, the limits on cash withdrawals from the Savings Bank Accounts will be enhanced to Rupees 50,000 per week from the current limit of Rupees 24,000 per week w.e.f. 20th February 2017.Image result for RBI
  • The Government of India had notified Pradhan Mantri Garib Kalyan Deposit Scheme 2016 (PMGKDS) vide Notification No. S.O. 4061 (E) dated 16 December, 2016. The Deposit under this scheme shall be made by any person who declared undisclosed income under Pradhan Mantri Garib Kalyan Yojana, 2016. The deposit sum, which shall not be less than twenty-five per cent of the declared undisclosed income, can be deposited at the authorized banks (as notified by Government of India) from 17th December, 2016 to 31st March, 2017. In this connection, Government of India has decided to allow declarants to make deposits on one or more occasions in the PMGKDS, 2016. Accordingly, norms of Para 4(4) of the said notification have been amended as under:

    “4. Subscription and Mode of investment in the Bonds Ledger Account — (4) The deposit to be made under sub-section (1) of section 199F under this Scheme shall be made, on one or more occasions. The deposits shall be made before filing declaration under sub-section (1) of section 199C.”

Applications for Empanelling Experts as Mediators or Conciliators For Year 2017-18 (MCA)

Image result for Empanelling Experts as Mediators or Conciliators picsMinistry of Corporate Affairs (MCA) has issued notice for inviting applications for Empanelling Experts as Mediators or Conciliators For Year 2017-18. In the notice MCA has empowered the Regional Director(s) to prepare and maintain/ update the Mediation and Conciliation Panel of eligible experts in pursuance of Rule 3 (1) of Section 442 of the Companies Act, 2013 who are willing to be appointed as mediator and conciliator in North-Western Region

In pursuance of the above, Regional Director, North Western Region, Ahmedabad, Gujarat invites applications from willing and eligible persons to be selected and included in the panel of experts as “Mediator and Conciliator” who may provide relevant services to parties as may be allowed by the Central Government or Tribunal (Company Law Tribunal or Appellate Tribunal) under the Companies (Mediation and Conciliation) Rules, 2016.

The Panel shall be placed on the website by MCA (www.mca.gov.in) until any other website is notified as prescribed under Rule 3(1) of the Companies (Mediation and Conciliation) Rules, 2016

The experts willing to be empanelled as Mediators or Conciliators must possess the following qualifications:

  • has been a Judge of the Supreme Court of India; or
  • has been a judge of a High Court; or
  • has been a District and Session Judge; or
  • has been a Member or Registrar of a Tribunal constituted at the National level under any law for time being in force; or
  • has been an officer in the Indian Corporate Laws Service or Indian Legal Service with fifteen years’ experience; or
  • is a qualified legal practitioner for not less than ten years; or
  • is or has been a professional for at least fifteen years of continues practice as Chartered Accountant or Cost Accountant or Company Secretary ;or
  • has been a Member or President of any State Consumer Forum; or
  • is an expert in mediation on conciliation who has successfully undergone training in mediation or conciliation.

The eligible Applicants possessing requisite qualifications may apply for the Selection as experts for empanelment as Mediators or Conciliators to the Regional Director, North Western Region, Ahmadabad. The applicant must be a citizen of India. All applications may be filed online and/ or in the physical form on or before 15th March, 2017 failing which they will not be considered as eligible applicants. The application form shall be in Form No. MDC-1

The application may be forwarded in soft copy and/ or Physical! Hard copy at:

Office of the Regional Director, North-Western Region,

“ROC BHAVAN”, Opp. Rupal Park, Nr. Ankur Bus Stand,

Naranpura, Ahmedabad, Gujarat- 380013

or at e-mail ID of the Regional Director (rd.northwest@mca.gov.in).

Applicants may provide their e-mail ID and mobile number in the online application and/ or in the physical application. The last date for receiving applicants is 15th March, 2017

Union Budget 2017-18 (DIRECT TAXES)

Related image#Rate of Tax on Income on Individuals from Rs. 2.50 Lakhs to Rs. 5 Lakhs reduced from ~10%~ to 5%.

#INCOME TAX EXEMPTION LIMIT on Individuals
upto 2.5 lakh NIL
2.5lakh to 5 lakh 5%
5 lakh to 10 lakh 20%
above 10 lakh 30%
REBATE IN TAX OF Rs 2500 UPTO INCOME OF Rs 3.5 Lakh

INCOME TAX SURCHARGE
UPTO 50 LAKH NIL
50 LAKH TO 100 LAKH 10%
ABOVE 100 LAKH 15%

#For Individuals above age of 60 years but less than 80 years

upto 3 Lakh NIL
3lakh to 5 lakh 5%
5 lakh to 10 lakh 20%
above 10 lakh 30%

#For Individuals above age of 80 years upto 3 Lakh NIL
upto 5 lakh NIL

5 lakh to 10 lakh 20%
above 10 lakh 30%

#For Domestic Companies whose total turnover or gross receipts of the P/Y 2015-16 does not exceed Rs. 50 Crores: 25% ; for others 30%. Surcharge remains same as previous year.

#Section 115BBDA: *Income by way of dividend in excess of Rs. 10 lakh* => Tax@10% => ection shall be applicable to all resident assessees except domestic company and certain funds, trusts, institutions, etc

#New Section 194-IB: Individuals or a HUF (other than those covered under 44AB of the Act), responsible for paying to a resident =>any income by way of RENT > Rs. 50k for a month or part of month during the previous year =>TDS @5%.

# *Long Term Capital Assets for Land or Building or Both* => *Period of Holding* reduced from 36 months to *24 months* .

# *Base Year for Computation of Capital Gains shifted from 01.04.1981 to 01.04.2001.*

#Expanding the scope of long term bonds under 54EC: Currently NHAI or RECL bonds were eligible => Now propose to provide that investment in any bond redeemable after three years which has been notified by the Central Government in this behalf shall also be eligible for exemption.

#No notional income for house property held as stock-in-trade: for the period upto one year from the end of the F/y in which the certificate of completion of construction of the property is obtained from the competent authority.

#Section 80-IAC: Extending the period for claiming deduction by start-ups => currently 3/5 years => proposed 3/7 years

#Section 115JAA: MAT / AMT Credit can be carried forward to ~10years~ 15 years.

#Section 80G: Cash donation restricted to Rs. 10,000/-

#Disallowance of depreciation U/s 32 and capital expenditure U/s 35AD on cash payment exceeding Rs. 10,000/-

#Section 40A: Reduction of existing threshold of cash payment to a person from Rs. 20,000/- to Rs. 10,000/-.

#Section 44AD: Measures for promoting digital payments in case of small unorganized businesses: Reduction of Deemed Income from 8% to 6% in case amount is received by an A/c payee cheque or A/c bank draft or use of ECS through a bank account.

#Section 269ST: Restriction on cash transactions of Rs. 3 Lakhs or more

#Section 13A: Transparency in ELECTORAL Funding:  Maximum cash donation Rs. 2,000/- and Political Parties to file Income Tax Return U/s 139.

#Section 194D: Insurance Commission: eligible for filing self-declaration in Form.No.15G/15H for non-deduction of tax at source in respect insurance commission.

#Section 44AA: Increasing the threshold limit for maintenance of books of accounts in case of Individuals and HUF carrying on business or profession: Income Rs. 2.50 Lakhs and Total Sales Rs. 20 Lakhs

#Section 194J: Reduce the Rate of TDS from 10% to 2% in case of a person engaged only in the business of operation of call center.

#Section 92BA: person referred to in under section 40A(2)(b) are to be excluded from the scope of section 92BA.

#Section 47: Tax neutral conversion of preference shares to equity shares.

#Sectionn47(vic): Cost of acquisition in Tax neutral demerger of a foreign company: cost of acquisition of the shares of Indian company referred to in section 47(vic) in the hands of the resulting foreign company shall be the same as it was in the hands of demerged foreign company.

#Rationalisation of section 211 and section 234C relating to advance tax: single instalment advance tax benefits to certain assesses.

#Section 244A: Interest on refund due to deductor @1.50% p.m.

#Rationalisation of time limits for completion of assessment, reassessment and re-computation and reducing the time for filing revised return. time for furnishing of revised return shall be available upto the end of the relevant assessment year or before the completion of assessment, whichever is earlier.

#Rationalisation of the provisions in respect of time limits for completion of search assessment.

#ANTI-ABUSE MEASURES: With a view to prevent this abuse, it is proposed to amend section 10(38) to provide that exemption under this section for income arising on transfer of equity share acquired or on after 01.10.2004 shall be available only if the acquisition of share is chargeable to STT.

#New Section 50CA: where consideration for transfer of share of a company (other than quoted share) is less than the Fair Market Value (FMV) of such share determined in accordance with the prescribed manner, the FMV shall be deemed to be the full value of consideration for the purposes of computing income under the head “Capital gains”.

#New Section 94B: interest expenses claimed by an entity to its associated enterprises shall be restricted to 30% of its earnings before interest, taxes, depreciation and amortization (EBITDA) or interest paid or payable to associated enterprise, whichever is less.

#Section 139 (4C): Mandatory furnishing of return by certain exempt entities.

#New Section 234F: Fee for delayed filing of return upto Rs. 10,000/-.

#Section 271J: Penalty on professionals for furnishing incorrect information in statutory report or certificate upto Rs. 10,000/-.

*Service Tax, VAT, Central Excise and Customs*

#Section 96A Clause (d) (Service Tax), 23A Clause (e) (Central Excise) & 28E clause (e) (Customs):  “Authority” to mean the Authority for Advance Ruling as constituted under section 28E of the Customs Act, 1962.

#Section 28F (Customs): The Authority for Advance Rulings constituted under section 245-O of the Income-tax Act shall be the Authority for giving advance rulings for the purposes of the Customs Act.

#Section 96C (3) (Service Tax): *Increase the application fee for seeking advance ruling from ₹2500 to ₹10000* on the lines of the Central Excise Act.

#Section 26C (3) (Central Excise): *Increase the application fee for seeking advance ruling from ₹2500 to ₹10000* on the lines of the Income Tax Act.

#Section 32E (5) (Central Excise) & Section 127B (5) (Customs): enable any person to make an application to the Settlement Commission

#Section 32F (5A) (Central Excise) Section 127C (3) (Customs): The Settlement Commission=>*Rectify any error apparent on the face of record* .

#Section 96D (6) (Service Tax) & #Section (Excise): Time Limit Amended=> *Six Months by which Authority shall pronounce its ruling* on the lines of the Central Excise Act.

Image result for Direct Tax#Section 26D (6) (Excise): Time Limit Amended=> *Six Months by which Authority shall pronounce its ruling* on the lines of the Income Tax Act.

#Section 28H (3) (Customs): Increase the application fee for seeking advance ruling from ₹2500 to ₹10000 on the lines of the Income Tax Act.

#Section 28I (6) (Customs): Time Limit Amended=>Six Months by which Authority shall pronounce its ruling on the lines of the Income Tax Act.

#Section 30A (Customs): Passenger and crew arrival manifest before arrival in the case of an aircraft or a vessel and upon arrival in the case of a vehicle=>Penalty: ≤₹50000.

#Section 41A (Customs): Passenger and crew departure manifest and passenger name record information of departing passengers before the departure of the conveyance form yet to be prescribed=>Penalty: ≤₹50000.

*NEW* #Section 96HA (Service Tax) & #Section 23-I (Central Excise): Transferring pending application before the Authority for Advance Rulings (Central Excise, Customs and Service Tax) to the Authority constituted under section 245-O of the Income-tax Act

#Section 46 (3) (Customs): Mandatory to file the bill of entry before the end of the next day following the day (excluding holidays)

#Section 7 (Customs): Empowering the board to notify Foreign Post Offices & International Courier Terminals.

#Section 17 (Customs): Rationalization the requirement of the documents for verification of self-assessment.

#Section (49) (Customs): Extending the facility of storage under section 49 to imported goods entered for warehousing before their removal

#Section 27(2): Unjust Enrichment=>The Refund the refund of duty paid in excess by the importer before an order permitting clearance of goods for home consumption is made.

#Section 9 (3) Clause (c): Withdrawal of the exemption to three categories of non-actionable subsidies specified therein from the scope of anti-subsidy investigations.

#Service Tax: Exemption from service tax is being provided in respect of the amount of viability gap funding (VGF) payable to the selected airline operator for the services of transport of passengers.

#Service Tax: Exemption to life insurance to members of the Army, Navy and Air Force under the Group Insurance Schemes of the Central Government, is being made effective from 10th day of September, 2004, the date when services of life insurance became taxable.

#Service Tax: The services of renting of immovable property became taxable => exempts one-time upfront amount payable for grant of long-term lease of industrial plots (30 years or more) by State Government industrial development corporations/undertakings to industrial units from Service Tax.

Major Changes in Budget 2017

Image result for budgetHello everyone; trust all of you doing well; Hope you will enjoy this update with us. Topic – Changes in budget 2017

  1. Turnover of companies upto 50 crore – tax will be 25% instead of 30%
  2. MAT credit carry forward for 15 instead of 10 years
  3. Long term capital gains on Property period reduced from 3 to 2 years
  4. Base Year for indexation now 2001 instead of 1981
  5. Presumptive tax for small traders with turnover upto 2 crore under 44Ad now 6% instead of 8 % for full non cash turnover
  6. Cash expenditure now allowed only 10000 instead of 20000 per transaction
  7. No transaction above 3 lac will be allowed in cash
  8. Trust cash donations max allowed only 2000 instead of 10000
  9. Political parties – max cash donations from 1 person Rs 2000
  10. Domestic transfer pricing – only if 1 party enjoys tax benefits
  11. 44AD – turnover limit increased to 2 crores for business.
  12. Professionals can pay advance tax in 1 installments if below 50 lac
  13. Time for revising income tax return now reduced
  14. Scrutiny time limit reduced to 18 months
  15. Individual tax reduced for income 2.5 to 5 lac tax rate now reduced to 5%
  16. Surcharge of 10% on those who earn income from 50 lac to 1 crore
  17. TDS – no Tds on insurance agents if 15 h filed
  18. Simple 1 page income tax return for persons having non business income
  19. Deemed sale value for sale of unquoted shares introduced. To be taxed at fair value. Sec 50CA
  20. In absence of PAN,the rate of TCS will be twice of the extent rate or 5%, whichever is higher. Sec.206CC.
  21. If Return not filed as per Sec. 139 (1), concept of late fee introduced. Rs. 5000 for delay up to 31st Dec. and Rs. 10000 thereafter. Late fee to be paid before filing the Return. Sec 234F
  22. CA issuing wrong certificate would be penalised with Rs. 10000
  23. Capital gain on shares will be exempt only if STT was paid while purchasing the shares.
  24. HP loss can be setoff against other head of income only to the extent of 200000 in same year. Balance loss can be c/f to 8 A.Ys.
  25. Individual and HUF to deduct tds even if unaudited @ 5% if rent is paid 50000 pm
  26. TDS in 194J amended, now 2 percent tds instead of 10
  27. The scope of section 56 will be widened and will also cover any kind of gifts in cash or kind or for no consideration with few exemptions and exception
  28. Dis-allowances of expenditure from income from other sources if tds is not deducted
  29. Self employed can also claim 20% contribution to NPS as deduction