51 CAs and 3 CSs on radar in I-T crackdown against black money

Image result for EDThe ED will initiate action against them soon. The professionals are likely to face action in a case of money laundering to the tune of Rs 11,000 crore.

As many as 54 chartered accountants and company secretaries are under scanner of the income tax (I-T) department and the Enforcement Directorate for money laundering through shell companies, according to sources.

The ED will initiate action against them soon. The professionals are likely to face action in a case of money laundering to the tune of Rs 11,000 crore.

The agency had arrested two people Virendra and Surendra Jain in connection with the case four days ago. The agency is likely to send them notices soon for questioning, may initiate action under provisions of the Money Laundering Act.

These professionals are instrumental in circulating black money.

COME CLEAN BY MARCH 31: I-T DEPT TO BLACK MONEY HOARDERS

The income tax department today warned black money holders that it has “information” about their illegal deposits and they should avail the soon-to-end Pradhan Mantri Garib Kalyan Yojna (PMGKY) window to come clean on their unaccounted wealth or “regret later”. The window under the Pradhan Mantri Garib Kalyan Yojna (PMGKY) closes on March 31.

Related imageAdvertisements issued in national dailies said that the income tax department has information about your deposits. The department also said that total “confidentiality is ensured” to those who declare their black assets and funds under this scheme.

The department had also of late cautioned those who had undisclosed income to either avail this scheme or face stringent action under Benami laws, adding that the defaulters’ names would also be shared with the central probe agencies like the Enforcement Directorate and the CBI.

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RBS (Royal Bank of Scotland) included in list of Scheduled Commercial Banks

Inclusion of “The Royal Bank of Scotland plc” in the Second Schedule to the Reserve Bank of India Act, 1934

RBI/2016-17/244                                                               DBR.No.Ret.BC.54/12.07.150/2016-17

March 09, 2017

All Scheduled Commercial Banks

Dear Sir,

Inclusion of “The Royal Bank of Scotland plc” in the Second Schedule to the Reserve Bank of India Act, 1934

We advise that the “The Royal Bank of Scotland plc” has been included in the Second Schedule to the Reserve Bank of India Act, 1934 vide Notification DBR.IBD.No.3878/23.13.020/2016-17 dated September 29, 2016, and published in the Gazette of India (Part III – Section 4) dated January 21- January 27, 2017

Yours faithfully

(M.G.Suprabhat)
Deputy General Manager

Due Dates – March Month – Income Tax

2 March 2017 –
Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of January, 2017.
7 March 2017 –
Due date for deposit of Tax deducted/collected for the month of February, 2017. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan.
15 March 2017 –
Due date for furnishing of Form 24G by an office of the Government where TDS for the month of February, 2017 has been paid without the production of a challan.
15 March 2017 –
Fourth instalment of advance tax for the assessment year 2017-18.
15 March 2017 –
Due date for payment of whole amount of advance tax in respect of assessment year 2017-18 for assessees covered under presumptive scheme of Section 44AD.
17 March 2017 –
Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of January, 2017.
30 March 2017 –
Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of February, 2017.
31 March 2017 –
Lastdate for declaration of undisclosed income under Pradhan MantriGaribKalyanYojana, 2016.
31 March 2017 –
Due date for payment of second installment (i.e., 25% of tax, surcharge and penalty) under Income Declaration Scheme, 2016.

No longer 100% deduction allowed for NGO’s

Image result for ngo's in indiaDonations made to hundreds of projects carried out by NGOs across the country will no longer be eligible for a 100% income tax (I-T) deduction in the hands of the donor from April 1. While tax savings are not the main purpose, if donations are made in March towards eligible projects, then donors comprising salaried employees could reap an I-T benefit.

At present, donations made for specific projects run by NGOs that have been certified under section 35AC entitle the donor to a 100% I-T deduction under section 80GGA in respect of the donated amount.

However, section 35AC has a sunset clause which expires this March. Section 80GGA is not as widely known as section 80G, which permits a 100% I-T deduction in respect of certain donations (such as PM’s National Relief Fund) and a 50% I-T deduction in most other cases.

Image result for ngo's in india“Taxpayers who do not earn income under the head `profits and gains of business and profession’, such as salaried employees, can claim the benefit of section 80GGA. While the employer cannot consider the donations made, while computing tax to be deducted at source against salary income, the employee can claim the benefit of the same in his I-T return and claim an I-T refund, if applicable,“ says Pradeep Mahtani, director, HelpYourNGO Foundation. A chartered accountant says, “In fact, if there has been a short deduction of tax at source and advance tax has not been paid by the salaried employee, by making donations eligible for I-T deduction up to March 31, the salaried taxpayer could mitigate his I-T penalty . Donors should ensure that they get the appropriate receipt.”

Notifications are issued by the finance ministry from time to time, certifying the projects that are eligible under section 35AC, the period of eligibility and also the total cost of the eligible project. For instance, as regards NGOs registered in Ma harashtra, these include projects by Magic Bus (skill development and livelihood programme), Association of Palliative Care (for a palliative care centre), Foundation of Promotion for Sports and Games (Olympic Gold Quest project) and Mesco (educational scholarships).

Trade Mark Rules 2017

Image result for Trade mark rules 2017The Trade Mark Rules, 2017 have been notified and have come into effect from 06th March, 2017. These Rules, which replace the erstwhile Trade Mark Rules 2002, will streamline and simplify the processing of Trade Mark applications. Some silent features:-

  • Number of Trade Mark (TM) Forms have been reduced from 74 to 8.
  • To promote e-filing of TM applications, the fee for online filing has been kept at 10% lower than that for physical filing.
  • Based on stakeholders feedback, the fees for Individuals, Start-ups and Small Enterprises have been reduced from that proposed in the draft Rules i.e. only Rs 4,500 as against Rs 8,000 for e-filing of TM applications proposed at the draft stage.
  • Modalities for determination of well-known trademarks have been laid out for the first time.
  • The provisions relating to expedited processing of an application for registration of a trade mark have been extended right upto registration stage (hitherto, it was only upto examination stage).
  • Over all fees have been rationalized by reducing the number of entries in Schedule I from 88 to just 23.
  • Modalities for service of documents from applicants to the Registry and vice-versa through electronic means have been introduced to expedite the process; e-mail has been made an essential part of address for service to be provided by the applicant or any party to the proceedings so that the office communication may be sent through email.
  • Hearing through video conferencing has been introduced.
  • Number of adjournments in opposition proceedings has been restricted to a maximum of two by each party, which will help dispose off matters in time.
  • Procedures relating to registration as Registered User of trademarks have also been simplified.It may be recalled that the examination time for a TM application has already been brought down from 13 months to just 1 month in January 2017; this is despite a stupendous 35% jump in TM filings in 2015-16 vis a vis the previous year. The new Rules should give a boost to the Intellectual Property Regime in India.

Click here to view notification..!!

MCA Updates

  • Form AOC-4 CFS, GNL-1 and GNL-3 are likely to be revised on MCA21 Company Forms Download page w.e.f 8th MAR 2017. Stakeholders are advised to check the latest version before filing.
  • Form SPICe MoA, SPICe AoA and SH-11 were recently revised on MCA21 Company Forms Download page. Stakeholders are advised to check the latest version before filing.
  • Stakeholders may kindly note that in the new improved version of SPICe e-form, the Certificate of Incorporation will be generated only after approval of Company Incorporation by MCA and also allotment of PAN & TAN by Income Tax Deptt. Till the integration with the CBDT system stabilizes, few Stakeholders may experience occasional delay in receiving the Certificate of Incorporation (COI). Stakeholders may please note that the new functionality is intended to reduce the total time frame and number of processes for incorporation and allotment of PAN/TAN. All newly incorporated companies using SPICE e-forms are now receiving their PAN in the COI itself and TAN separately by e-mail.
  • Form 49A (PAN) and 49B (TAN) needs to be digitally signed by the same director who has affixed digital signature in Form SPICe (INC-32).

 

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