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.

Image result for ca

NBFC cash loan against gold restricted to Rs 20,000

Image result for nbfc logoNon-Banking Finance Companies (NBFCs) cannot lend more than Rs 20,000 in cash against gold, the Reserve Bank said today. The earlier provision for NBFC was that high value loans against gold of Rs 1 lakh and above must only be disbursed by cheque. RBI reduced the amount to Rs 20,000 from the earlier Rs 1 lakh in line with the provisions of the Income Tax Act.

Image result for Income taxThe relevant threshold under the Income Tax Act, 1961 is Rupees Twenty thousand,” the central bank said, while amending the provisions for disbursal of loan amount in cash by NBFCs. This assumes significance in the backdrop of government’s focus on less cash economy and promoting digital payments.

Image result for RBIThe decision created severe cash crunch in the country in the last two months of 2016 as 86 per cent of the currency was declared invalid. RBI had placed several restrictions on cash withdrawals from the bank branches and ATMs.

However, with increasing pace of remonetisation, all the restrictions, except on savings bank account, have been lifted. The cash withdrawal limit on savings bank account too will be removed from March 13.

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.

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.

MCA Updates

  • As part of the Ministry’s efforts towards promoting greater Ease of Doing Business to stakeholders, new version of Form SPICe (INC-32) with date of effect as 30th January 2017 will be notified soon, so as to include the functionality of applying for Company PAN and first TAN (allotted by Income Tax Dept) in the SPICe form itself. Applying for PAN / TAN will be compulsory for all fresh incorporation applications filed in the new version of the SPICe form. Stakeholders will be allowed to download new version of SPICe form for all fresh incorporation applications w.e.f 01 Feb 2017. For resubmitting SPICe forms filed before 30th January 2017, stakeholders are required to use older version of the SPICe form for resubmission, if needed. The old version can be used only for resubmissions.
  • Stakeholders may, therefore, kindly note that filing of SPICe forms (including resubmissions) will NOT be permitted temporarily w.e.f Saturday, 28th January until Tuesday 31st January, 2017. Thereafter, MCA21 system will accept new version of the SPICe form for fresh filings, as well as old version of SPICe for filing of previously marked resubmission cases. No PAN or TAN will be allotted for applications which were filed before 30th January 2017. Stakeholders are requested to plan accordingly.
  • Stakeholders may also kindly note that the revised version of Form SPICe (INC-32) will mandatorily require application for both PAN and TAN also. MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe, which the stakeholders will be required to download, affix digital signature and then upload both signed forms on MCA21 system as linked forms. New version of SPICe incorporation applications will be processed only after Forms 49A & 49B are duly signed, uploaded and payment is confirmed by MCA. PAN (as allotted by Income Tax Deptt) will be printed in the Certification of Incorporation, and TAN will be separately communicated to the stakeholders by email.

Process – SURRENDER OF DUPLICATE PAN

Image result for duplicate pan cardIf you have more than one PAN, you should surrender the additional PAN(s) by logging into ITD website. Alternatively, you may fill and submit PAN Change Request application form by mentioning the PAN which you wish to retain on the top of the form. All other PAN/s inadvertently allotted to you should be mentioned at item no. 11 of the form and the corresponding PAN card copy/ies should be submitted for cancellation along with the form.

Online form for SURRENDER OF DUPLICATE PAN

Taxation Laws (Second Amendment) Act, 2016

The Taxation Laws (Second Amendment) Act, 2016 has come into force on 15th December, 2016. The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (the Scheme) introduced vide the said Act shall commence on 17th December, 2016 and shall remain open for declarations up to 31st March, 2017. The rules in this regard have been notified vide Notification No.116 dated 16th December, 2016 and have been placed in public domain. A separate notification has been issued for Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 by Department of Economic Affairs.

Click here to read full notification. | THE TAXATION LAWS (SECOND AMENDMENT) ACT, 2016