New Form 26AS introduced by CBDT

New Form 26AS introduced by CBDT

·         Faceless hand-holding of the Taxpayers

Government of India, Department of Revenue, Ministry of Finance and Central Board of Direct Taxes has came out with a New Form 26AS which is the Faceless hand-holding of the Taxpayers to provide full details of their financial transactions.

Aim is to prevent suppression of information by taxpayers. The taxpayers tax passbook or the form 26AS contains details of taxpayer and compliance details along with other financial transactions.

Ø Modified process with New form 26 AS:

Information being received by the Income Tax Department from the filers of Statement of Financial Transactions (SFTs) now being shown in Part E of Form 26AS to facilitate voluntary compliance, tax accountability and ease of e-filing of returns so that the same can be used by the taxpayer to file her or his income tax return (ITR) by calculating the correct tax liability in a feel-good environment.

Ø Key highlights:

1. It helps to e-file income tax returns quickly and correctly.

2. The new form required some additional details on taxpayers’ financial transactions.

3. This form will bring transparency and accountability in the tax administration.

4. SFTs will help the taxpayers to recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR.

5. Information under different SFTs will be shown in the new Form 26AS which includes:

·         Cash deposit

·         withdrawal from saving bank accounts,

·         sale/purchase of immovable property,

·         time deposits,

·         credit card payments,

·         purchase of shares,

·         debentures,

·         foreign currency,

·         mutual funds,

·         buy back of shares,

·         cash payment for goods and services, etc.

·         banks, mutual funds, institutions issuing bonds and registrars or sub-registrars etc., with regard to individuals having high-value financial transactions

6. Form 26AS for any taxpayer, will display in part E of the Form, different fields such as, type of transaction, name of SFT filer, date of transaction, single/joint party transaction, number of parties, amount, mode of payment and remarks etc.

Ø Conclusion:

1. This New form 26 AS will help the honest taxpayers with updated financial transactions while filing their returns,

2. it will desist those taxpayers who inadvertently conceal financial transactions in their returns.

3. The new Form 26AS would also have information of transactions which used to be received up to Financial Year 2015-16 in the Annual Information Returns.

Kindy note that:

financial transactions will be shown in 26AS only if taxpayers cross the specified limit in a financial year.

Source: Press Release

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

Progress Report of Aatma Nirbhar Bharat Package

Progress Report of Aatma Nirbhar Bharat Package

As on 12^th July 2020

Ministry of Finance, vide press release id 1638112 dated 12^th day of July, 2020 has issued a “Progress Report of Aatma Nirbhar Bharat Package” and Finance Minister Smt. Nirmala Sitharaman reviews implementation of Aatma Nirbhar Bharat Package pertaining to Ministries of Finance & Corporate Affairs.

Announcement made by Prime Minister Shri Narendra Modi:

Announcement of the Special economic and comprehensive package of Rs. 20 lakh crores - equivalent to 10% of India’s GDP – to fight COVID-19 pandemic in India on 12.05.2020.

·        Progress reported so far:

1. MSME Reliefs: Global tenders will be disallowed in Government procurement tenders up to Rs 200 crore, major relief to the local MSMEs.

2. Relief to Contractors: all central agencies like Railways, Ministry of Road Transport and Highways and CPWD will give extension of up to 6 months for completion of contractual obligations, including in respect of EPC and concession agreements.

3. Supporting State Governments: Centre has decided to accede to the request and increase borrowing limits of States from 3% to 5%, for 2020-21 only in view of the unprecedented situation. This will give States extra resources of Rs. 4.28 lakh crore.

Department of Expenditure issued a communication to all the State Governments for additional Borrowing of 2 per cent of projected GSDP to the States in 2020-21 subject to implementation of specific State Level Reforms.

4. Collateral-free Automatic Loans for Businesses:

·         Rs 3 lakh crore Collateral-free Automatic Loans for Businesses, including MSMEs

·         additional working capital finance of 20% of the outstanding credit as on 29th February 2020

·         Term Loan at a concessional rate of interest

·         available to units with upto Rs. 25 crore outstanding and turnover of up to Rs. 100 crore whose accounts are standard.

·         Department of Financial Services issued Operational Guidelines for the Scheme on 23.05.2020 and Emergency Credit Line Guarantee Scheme (ECLGS) Fund was registered on 26.05.2020

5. Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs

Existing Partial Credit Guarantee Scheme (PCGS) will be revamped and extended to cover the borrowings of lower rated NBFCs, HFCs and other Micro Finance Institutions (MFIs). Government of India will provide 20 per cent first loss sovereign guarantee to Public Sector Banks.

Banks have approved purchase of portfolio of Rs. 14,000 crore and are currently in process of approval/negotiations for Rs. 6,000 crore as on 3rd July 2020.

6. Rs 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD

New front loaded special refinance facility of Rs. 30,000 crore sanctioned by NABARD during COVID-19 to RRBs & Cooperative Banks.

7. Rs 50,000 crore liquidity through TDS/TCS rate reduction

The Department of Revenue announced the reduction in TDS rates for specified payments to residents and specified TCS rates by 25% for transactions made from 14th May, 2020 to 31st March, 2021.

8. Direct Tax Measures

·         refunds in more than 20.44 lakh cases amounting to more than Rs. 62,361 crore

·         the due date for income-tax return for FY 2019-20 (Assessment Year 2020-21)  has been extended from 31st July, 2020 (for individuals  etc.) and  31st October,2020 (for companies etc.) to 30th November, 2020.

·         the due date for furnishing of tax audit report has also been extended from existing 30th September, 2020 to 31st October, 2020.

·         the time barring date for assessments getting barred by limitation on 30th September, 2020 to 31st March, 2021

·         the ‘Vivad se Vishwas’ Scheme will be extended to 31st December, 2020

9. Further enhancement of Ease of Doing business through IBC related measures

·         MCA has raised the threshold of default under Section 4 of the IBC, 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh)

·         a special insolvency resolution under section 240A of the Code, to provide relief to the MSMEs and the same would be notified soon.

·         Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 has been promulgated on 5th June, 2020.

10. Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs

Cabinet approved the Special Liquidity Scheme for NBFCs/HFCs. RBI has also issued a circular to NBFCs and HFCs on 1st July, 2020 itself on the Scheme.

Source: Press Release

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

ESI RETURN DUE DATE EXTENDED TILL 15TH JULY, 2020

ESI Return due date Extended till 15^th July, 2020

ESI Return due date Extended

for October – 2019 to March 2020 Period

In continuation to the Employees State Insurance Corporation, Circular no. P-11/12/Misc./1/2019(M)-Rev.II dated 18^th March, 2020 ESIC department has further extended the due date and provide “Relaxation of time limit for filing and depositing ESI Contribution for the month of February, 2020 and March 2020.

·         Further Extension:

The employers are allowed to file the return of Contribution up to 15^th July, 2020 for the contribution period from October, 2019 to March, 2020.

Link; https://www.esic.nic.in/attachments/circularfile/336e6f0398882f5e20b64b49982a9528.pdf

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION

COMPANIES (REMOVAL OF NAMES OF COMPANIES FROM THE REGISTER OF COMPANIES) AMENDMENT RULES, 2020

Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2020.

MINISTRY OF CORPORATE AFFAIRS (MCA) vide Gazette ID CG-DL-E-29062020-220254 and G.S.R. 420(E) dated 29^th June, 2020 has issued and published the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2020  further to amend the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.

Key Highlights:

1. Applicability: with effect from date of publication in the Official Gazette i.e. 29.06.2020.

2. Following provisions added in Rule 4 (3) (i) in the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016

Rule 4 : Application for removal of name of company.—

Rule 4 (3) (i) : The application in Form STK 2 shall be accompanied by –

(i) indemnity bond duly notarised by every director in Form STK 3; 

Provisions Added:

Provided that in case of a ─

(a) Government company in which the entire paid up share capital is held by the Central Government, or by any State Government or Governments or by the Central Government and one or more State Governments; or

(b) subsidiary of a Government company, referred to in clause (a), in which the entire paid up share capital is held by that Government company,

-          a duly notarised indemnity bond in Form STK-3A shall be given by an authorised representative, not below the rank of Under Secretary or its equivalent, in the administrative Ministry or Department of the Government of India or the State Government, as the case may be, on behalf of the company‖.

3. Insertion in Serial No. 4 in Form STK 2, in the list of attachments

the words “or by an authorised representative of administrative Ministry/Department in Form No. STK – 3A” shall be inserted.

4. Form No. STK – 3A (Indemnity Bond) introduced.

Format of Form No. STK-3A 

Form No. STK – 3A

Indemnity Bond

(To be drawn on Stamp Paper of appropriate value) (To be given by the Authorised Representative of the administrative Ministry/Department)

[Pursuant to the proviso to clause (i) of sub-rule (3) of rule 4 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016]

To,

The Registrar of Companies

I, the authorised representative* of the ……………………………… (name of the administrative Ministry/Department) for the ……………………….. (mention name of the Government company), incorporated on……………………under the Companies Act, 2013 or Companies Act, 1956 having its registered office at……………………, do hereby declare that the Government of India/State (name of the State to be mentioned in case the administrative Ministry/Department belongs to a State) hereby undertakes to indemnify : -

(i) the claimants for all lawful claims against the company arising in future after the striking off the name of the company;

(ii) any person for any losses that may arise pursuant to striking off the name of the company;

(iii) the claimants for all lawful claims and liabilities, which have not come to notice up to this stage, and if any claim arises or observed even after the name of the company has been struck off in terms of section 248 of the Companies Act, 2013.

          Date

            Place

Signature:

Official Seal:

Name, Father’s name, Address and Designation:

* Authorisation received from the administrative Ministry/Department to furnish this Indemnity Bond shall be attached with this Form.

Link: http://egazette.nic.in/WriteReadData/2020/220254.pdf

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

THIS HAS BEEN SHARED FOR KNOWLEDGE PURPOSES ONLY.

ONLINE EPF TRANSFER PROCESS

ONLINE EPF TRANSFER PROCESS

Employees' Provident Fund Organization (EPFO), India Ministry of Labour & Employment, Government of India has issued Instructions for transfer online EPF during this Pandemic situation (COVID-19)"

In case of change of Job, it is important to switch EPF account from previous employer to the new employer.

·        Prerequisites:

           i.            must have active UAN (Universal Account Number)

         ii.             If UAN is inactive, kindly activate at https://unifiedportal-mem.epfindia.gov.in/memberinterface

       iii.            UAN Holders details should be updated which includes such as Aadhaar details, Bank details etc.

       iv.            details can be checked in the 'KYC' option under the 'Manage' tab after logging in to your account.

         v.            Mobile number should be active.

       vi.            at least one of the employer's - previous / present - DSC must  be registered on the portal

    vii.             PF number of both past and present employers are registered on the EPFO database

·        Documents required for EPF transfer

ü  Valid ID proof (Aadhaar, PAN card, or driver’s licence)

ü  Revised Form 13

ü  UAN

ü  Mobile phone with registered SIM

ü  Current employer’s details

ü  Bank account number (salary account)

ü  Old and new PF account details

·        How to transfer EPF Online:

1. Login to Member Interface of Unified Portal https://unifiedportalmem.epfindia.gov.in/memberinterface

2. Login with your UAN and Password

3. Click on “Online Services” and then click “One Member – One EPF Account (Transfer request)”

4. Verify “Personal information” and “PF Account “ for present Employer

5. Click on “Get details” and view PF Account details of previous employment.

6. Click to select Employer (Previous / Current) for Attestation.

7. Click on “Get  OTP” (OTP will be send on UAN Registered Mobile Number)

8. Enter the OTP and click “Submit”

Tracking ID will be reflected post successful submission.

Unified Members Portal:

https://unifiedportal-mem.epfindia.gov.in/memberinterface

Tracking Mechanism to check the status of online transfer of EPF account

1. UAN Holder will track the status through the Member e-SEWA portal.

2. Click option - 'Track Claim Status' under the 'Online Services' Tab.

Conclusion

This whole transfer process has to be done to reduce overall tax liability from the balance accumulated in two separate accounts (Account with Previous and New Organization). An EPF account becomes inactive after leaving a job. The status of the form is changed to ‘approved’ by the employer post Employer approval. The Process is simple and easy and generally, it took a period of two months to complete the whole transfer process.

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION