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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Professional Misconduct of CA Results Investigation of ICAI – Direction By NCLT

Case – East India Investments Holdings PTE Ltd Vs Mr Sudhindran Parikkal & Mr Chockalingam – NCLT Chennai bench.

Image result for ICAIMisconduct on the part of chartered accountants- NCLT refers the case to the institute of chartered accountants for investigation.

It was alleged by the petitioner that Respondents are being chartered accountants who certified the company documents such as DIR-12 and INC-22 without proper verification and without following the procedures laid down in the declaration contained in the certificates.

It was contended by the petitioners that the practising professionals colluded with company and certified the documents with the mala-fide intentions mainly for promoting personal gain and with an intention to defraud.

The petitioner considered the erred chartered accountants and included them in the petition and prayed for a direction to the Institute of Chartered Accountants of India to initiate disciplinary action against the erred professionals.

The chartered accountants averred their innocence and claimed immunity against false allegation as they certified the documents on the basis of the information provided by the company officials.

The petitioner argued that if such kind of misconduct is not taken note of , then , the same is likely to encourage other such chartered accountants to follow suit where the reputation of Chartered Accountants Institute will be finally in peril.

Image result for NCLTIn this case, the NCLT referred the allegations on the chartered accountants involved and directed the Institute of Chartered Accountants of India to initiate the investigation of professional and other misconduct .

The above case is an eye opener to all the professionals who are certifying the forms for MCA to show utmost care and diligence and check for all the information needed before certifying forms for filing with the ROC.

NCLT impose penalty on company for non appointment of CS

M/s CARMEL ASIA HOLDINGS PRIVATE LIMITED WAS ASKED TO PAY A COMPOUNDING FINE OF Rs 4,72,675 for Not Appointing Company Secretary

Bangalore NCLT has made remarkable verdict where it ordered to pay a compounding fee of Rs 4,72,875 for Not Appointing Company Secretary .

Image result for ncltThe Company approached the erstwhile CLB and the present NCLT , Bangalore to compound the offence committed by it under section 383A for not appointing company secretary under section 383 A of the Companies Act ,1956. (Section 203 of Companies Act 2013)

It was argued by the petitioner company that even though it had appointed many company secretaries , they left the company in search of green pastures.

The Practicing Company secretary of the Company has informed the NCLT that the petitioner company is a subsidiary of M/s Sandur Power Company Limited and did not have adequate business activities and due to limited exposures , the appointed company secretaries are leaving the company in a short period. As such , the company is not able to get full time secretary during the intervening period.

It reflects that Petitioner Company has taken reasonable efforts to comply with the provision of the section 383 A of the CA 1956 but could not get a Company Secretary for the continuous period.

383A. Certain companies to have secretaries (1) Every company having such paid-up share capital as may be prescribed (Rs. 5 crores) shall have a whole-time secretary and where the Board of directors of any such company comprises only two directors, neither of them shall be the secretary of the company: Provided that every company not required to employ a whole-time secretary under sub-section (1) and having a paid-up share capital of 10 lakh rupees or more shall file with the Registrar a certificate from a secretary in whole-time practice in such form and within such time and subject to such conditions as may be prescribed, as to whether the company has complied with all provisions of this Act and a copy of such certificate shall be attached with Board’s Report referred to in Section 217.

It is to be noted that argument by the company that it took earnest efforts to appoint a company secretary and is using the services of a practicing company secretary was not accepted by the NCLT , Bangalore.

Image result for Tribunal orderNow , the available company secretaries has touched the land mark trend of 50000 numbers , companies in India cannot argue that adequate company secretaries are not available for employment and they are taking earnest efforts to find a company secretary or using the services of a practicing company secretary.

There are lot of company secretaries who have qualified recently are find it difficult to sit in a job and they are jobless. They are vexed to blame themselves for successfully completing the company Secretaries course.

If any member finds that a company avoids to fill in a company secretary position , they can bring it to the notice of concerned Registrar of Companies.

NCLT , Bangalore decision is a land mark decision and it is an eye opener for those erring companies which has not appointed a company secretary.

Click here to read final order

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.

Companies Act, 2013

Hello everyone; Trust all of you doing amazing. Today I would like to share a trusted link to read Companies Act, 2013 absolutely free. You can use below mentioned link to read Companies Act, 21013, Companies Rules, Effective Dates & Notifications.

CA, 2013

Banks, Post offices to report cash deposits of over Rs 2.5 lakh to Income Tax

Income Tax – Notification No. 104/2016][F.No.370142/32/2016-TPL

The government has asked banks and post offices to report to the I-T Department all deposits above Rs 2.50 lakh in savings accounts, and more than Rs 12.50 lakh in current accounts, made during the 50-day window provided to tender the scrapped 500 and 1000 rupee notes. Image result for Income Tax

As per a notification issued today, banks, co-operative banks and post offices will have to report to the tax department cash deposits exceeding Rs 50,000 in a single day or aggregating to more than Rs 2.5 lakh during .

Click here 2 view notification

Exchange Limit Increased – RBI

New Limits

  • ATM Withdrawal – Rs 2500
  • Exchange Limit – Rs 4500
  • Withdrawal Through Cheque – Rs 24000 (Per Week)

The decision came after the Finance Ministry reviewed the position regarding availability and distribution of all denomination of bank notes.

Furthermore, banks have been advised to increase the issuance and use of mobile wallets and debit/credit cards as also to provide them to those customers and establishments not having access to these non-cash means of payment and the last date for submission of the annual life certificate for the government pensioners, which is to be submitted in November every year, has been extended up to January 15.