Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Wednesday, March 30, 2016

MCA CHANGES ALL FORMS FROM 27.03.2016

MCA has changed all E –Forms after introduction of CRC. MCA has changed the total portal of MCAS and old Forms are not compatible with New Portal as MCA has revised almost all E –Forms with effect from 27th March,2016.. 
Due to Changes on the portal effects are:
-          The New E-Forms immediately effective will be CHG-8. INC -12
-          The new e-forms will come into effect from the date of notification are related to Investor Education and Protection Fund  i.e IEPF 1 to IEPF -6
-          The CRA-4 New E-Form for filing Cost Audit Report with the Central Government will be available from 11th of April,2016
-          The Refund Forms for excess fee paid due to any reason recoverable from MCA will be available from 25th of April,2016
-          The availability of E-Form 23C, 23D, I-XBRL and A-XBRL will be notified later.
-          The Old E-Forms 23AC, 23AC-XBRL, 23ACA XBRL, 20B, Form 66 ,21A and 23B applicable for earlier years effective in earlier Companies Act, will be filed as attachments with GNL-2 whenever will be notified.

-          Forms INV-1 and INV -5 are withdrawn 

Monday, March 28, 2016

Tax Benefit up to Rs.15000/- on Investment of Rs.50000 In NPS from Asst Year 16-17

 This year Tax benefit on additional Investment of Rs.50000/- in NPS Scheme is allowed from Assessment Year 2016-17. So every assesse ( tax payer ) wants to avail this additional tax benefit. Every assesse on the basis of income can save Tax Saving ranging from Rs5000/- to Rs.15000/-  if one is between the age of 18 years to 60 years.
Method of opening NPS A/c
1.  Offline Process
2. Online Process
1.  Offline Process
*Find Point of presence. POPs are intermediaries (such as banks) which help to  subscribe to NPS, carry out KYC verification and also receive NPS contributions from subscriber. The list of POPs is available on http://bit.lv/1TlvCxJ.
* Fill up subscriber registration form to open the A/c which is available on  http://bit.lv/1QbjK8k.
* Submit all KYC documents ( not in the case if A/c is opened through banks) & make contribution.
Minimum contribution : Rs.500 aggregating to Rs.6000/-  Investment per annum
* A permanent retirement account number (PRAN) is generated and sent. This is a unique portable number that will remain with subscriber under NPS.
*  Welcome kit also contains various passwords, which you can be used to access the account through the call centre or online on the Central Record-keeping Agency (CRA) website.
* PoPs get paid from the contributions which the subscriber makes.
One-time charge (subscriber registration charge) for account opening : Rs.125
Then charge of 0.25% of the amount received from the subscriber on all transactions subject to a minimum of Rs.20/-  and maximum of Rs.25,000/-Charge of Rs.20 per transaction on Non-financial transactions or those that do not involve a contribution from the subscriber
2.  Online Process
* Open online account by going to www.npstrust.org.in and then going to E-nps.

* There are two ways of register, One is using PAN and bank account details and the other is using Aadhaar.

* The process of registration is the same as the offline process in terms of the information needed, but if subscriber provides PAN, the subscriber will also need to give a bank account which the authorities can tap for their KYC.

* The subscriber can avail the PAN plus bank verified-KYC to open the account online only if it has a bank account with any of bank which are empanelled by PFRDA

* In this process, the subscriber needs to contribute at the time of registration and any subsequent transaction is possible after the KYC details have been verified by the bank. For KYC, banks will charge  a one-time fee of up to Rs.125 (plus applicable taxes) and this will be debited from bank account by the bank as KYC authentication charges.

* If start by keying in the Aadhaar number
            A one-time password (OTP) will be sent to the Aadhaar - registered mobile phone            number.
            OTP is verified
            Fill up information such as bank details, and also make an initial payment

* While opening an A/c, the subscriber needs to scan and upload a digital signature and also a photograph. . If the subscriber is using Aadhaar, then a photograph appears automatically, which can be changed with another one.

* To make a contribution, the subscriber has the option to invest online under E-NPS.
No POPs charges but Payment Gateway Charges will be apply which can be high for Debit card & Credit transaction. For Net Banking Facilities, it is just 60 paise.

* Print the NPS form that was filled online, paste a photograph, sign the form and submit the print out within 90 days to the CRA. Currently, National Securities Depository Ltd (NSDL) is the CRA. . If the subscriber does not send the form, his account will be ‘frozen’ temporarily.

* If the subscriber has already account then he can make use of the e-NPS facility to contribute online

* Such contributions can only happen through e-NPS, else it’s via NEFT, cheque, among other payment options.




Friday, March 25, 2016

MCA AUTHORISES CRC TO PROCESS ALL FORMS FOR REGISTRATION OF NEW COMPANIES

MCA authorizes their newly established Centralized department called CRC ( Central Registration Centre) vide notification dated 23/03/2016 for all over India to process all E – Forms  pertaining to registration of companies i.e. e-forms (INC-2, INC-7 and INC-29 along with linked forms INC-22, DIR-12 and URC-1
The jurisdiction, processing and approval of name or names proposed in e-Form number INC-29 hitherto exercised by the respective Registrar of companies having jurisdiction over incorporation of companies under the Companies Act, 2013 and the rules made thereunder shall forthwith be exercised by Registrar, CRC.

Wednesday, March 23, 2016

Procedure and time limit for correction in OLTAS challan paid online or offline

NSDL receives tax collection data as uploaded by the bank and is  not authorized to carry out any changes in the data sent by the bank or challans of tax paid
The fields that can be corrected by the Taxpayer through Bank are tabulated below:
Sl. No.
Type of Correction on Challan
Period for correction request (in days) from date of deposit of challan
1
PAN/TAN
Within 7 days
2
Assessment Year
Within 7 days
3
Total Amount
Within 7 days
4
Major Head
Within 3 months
5
Minor Head
Within 3 months
6
Nature of Payment
Within 3 months

Above mentioned rectifications can be made if payment is made in paper form i.e cash or cheque with challan submitted to  bank.
For rectifications in challans paid through online mode, taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD).
For a single challan, correction is allowed only once. However, where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields. There will be no partial acceptance of change correction request, i.e. either all the requested  changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.
Procedure of challan correction by Assessing Officers in case of physical and e-payment challans

After the above mentioned period where bank can make correction in challan  the assessee can get the correction made in challan by making  a request for correction to his assessing officer. The jurisdictional officer or officer authorized under the departmental for  OLTAS after receiving such application can make correction in challan data in genuine cases.



The Format of Correction request in Challan data Field by the assessee:

The Branch Manager/ Jurisdictional Officer

Address :


Sub : Request for Correction in Challan No: 280/281/282/283

Sir/Madam,
I request you to make corrections in the challan data of the Tax Payer  as detailed:

Taxpayer Details :

Taxpayer Name :


Taxpayer Address

Taxpayer TAN/PAN :


Name of Authorized Signatory in case of  assesse other than Individual


The Correction required in Data/ fields of the following challan :

Challan Details:


BSR Code
Challan Tender Date    Date of Challan
Challan Sl. No.

Fields for correction required:
.

Sl. No
Name of Fields
Please Tick if correction required
Original Details
Corrected Detail

1.
TAN / PAN



2.
Assessment Year



3
Major Head



4
Minor Head



5
Nature of Payment



6
Amount Paid







.
Signature
Tax payer/Authorized Signatory
Date
Note:

Mandatory Attachments:
1.Attach copy of original challan counterfoil.
2.Copy of PAN Card for correction in challan 280, 282, 283
3.Authorisation in case of assesse other than individual

4. Copy of Request Form in duplicate to the bank branch, separate request for separate challan 

Tuesday, March 22, 2016

TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES WILL BE HIGHER

As per Current Provision for Financial Year 2015-16 the Domestic Company shall, in addition to the income tax chargeable in respect of its total income, be liable to pay additional income tax on any amount declared, distributed or paid by such company by way of dividend (whether interim or otherwise), whether out of current or accumulated profits.
As per amendment made by finance bill 2016, the receiver of dividend is liable to pay tax @ 10% on such dividend if the amount of dividend exceeds Rs. 10 lakhs.
Now in case of Private Limited Company going in Profits, the withdrawal of the profits by the Shareholders has been made costlier than earlier.  Now the Shareholder in case gets more than Rs.10 Lac as dividend will have to pay tax @10% after  passing of the Finance Bill 2016.
115BBDA proposed to be inserted to provide that in addition to Dividend Distribution Tax paid by the companies which comes to the tune of 17.64705 %, the recipients i.e  individuals, HUFs and firms receiving dividend in excess of Rs.10 lacs per annum will pay tax @10% of gross amount of dividend.
 Where the recipient is a company, section is not applicable. The reasoning behind introduction of this section is that the tax payer having high dividend income are subjected to tax only u/s 115O whereas such income in their hands would have been chargeable to tax @30%.
Rate of STT in case of option is proposed to be increased from 0.017% to 0.05% w.e.f. 01.06.2016
Earlier Provision upto 31.03.2016 is hereunder:
Dividend Distribution Tax Rate :
Such dividend distribution tax shall be payable @ 17.65% plus surcharge @ 12% plus education cess @ 2% plus SHES @ 1% of amount so declared, distributed or paid (effective tax rate after grossing up w.e.f. 1-10-2014)
·         Exemption For amount received from It's subsidiary as dividend
As per section 115O-(1A) Dividend to be distributed shall be reduced by the amount of dividend received by the domestic company during the Financial Year from its subsidiary and such subsidiary company is a domestic company and where such subsidiary is a domestic company, the subsidiary has paid the tax (DDT) on such dividend or where such subsidiary is a Foreign Company, the tax is payable by the domestic company u/s 115BBD on such dividend and further shall be reduced by the amount of dividend paid to any person for or on behalf of the New Pension System Trust referred to in Clause (44) of Section 10.
·         Due Date:
The principal officer of the domestic company and the company shall be liable to pay the tax on the dividend distribution profit within 14 days from the date of declaration or distribution or payment of any dividend, whichever is earlier
·         The distributed profit on which tax is paid u/s 115-O(1) shall be exempted in the hands of share holder u/s 10(34). As per amendment made by finance bill 2016, the receiver of dividend is liable to pay tax @ 10% on such dividend if the amount of dividend exceeds Rs. 10 lakhs.
·         Interest payable for non-payment of tax by domestic companies — section 115-P:
Where the principal officer of domestic company and the company fail to pay the whole or any part of tax on distributed profits within the time i.e. 14 days, he or it shall be liable to pay simple interest @ 1% for every month or part thereof on amount of such tax for the period beginning on the date immediately after the last date on which such tax was payable and ending with the date on which the tax is actually paid.
·         Consequences for non payment of dividend distribution tax —Section. 115-Q
If principal officer of a domestic company and the company does not pay tax on distributed profits in accordance with the provisions of Section 115-O, then, he or it shall be deemed to be an assessee in default in respect of the amount of tax payable by him or it and all the provisions of the Income-tax Act, 1961 for the collection and recovery of income tax shall apply.

The Computation of dividend may be illustrated as follows till – As per Current Provision

Particulars
Computation

Dividend Distributed
100
10000000
Rate of Dividend distributed tax
15

Grossed up Tax Rate
15/85*100 (17.647)
1764705
Surcharge
12%
  211765
E.Cess & S.H.E.C
3%
    59294
Net Effective Tax Rate
20.35765(17.647*1.12*1.03)
2035765

Wednesday, March 16, 2016

Appeal Form -35, Procedure and attachments for E filing of Income Tax First Appeal

The Link was removed by Income Tax Department after 20th March,2016 now from 01.04.2016 restarted again with revised Form 35. The procedure is same as given hereunder:

The Income Tax department on 1st March, 2016 has amended Rule 45 consequent to changes notified on 30.12.2015 regarding digitization of various functions and making Electronic filing of appeal before CIT(Appeals) mandatory for persons who are required to file the return of income electronically to remove human interface, reduce paperwork and reduce the cost for the tax payer.

 The Existing Form 35 for filing of appeal is replaced by New Form which is more structured, Systematic and aligned with Income Tax Laws at present.

For all Online filed appeals the fixation of hearing of appeals will be done electronically.

Now New Procedure of E Filing of First Appeal is as under effective from 01.03.2016

(1) An appeal to the Commissioner (Appeals) shall be made in Form No. 35.

(2) Form No. 35 shall be furnished as given hereunder:

·         For the assessee who is required to furnish return of income electronically Under Rule-12, by furnishing the form electronically
i) Under digital signature, if the return of income is furnished under digital signature;
(ii) For Others by furnishing electronically through electronic verification code.

·         For the assessee who has the option to furnish the return of income in paper form, by furnishing the form electronically as above or in paper form.

 (3) The form of appeal shall be verified by the person who is authorised to verify the return of income under section 140 of the Act, as applicable to the assessee.
(4) Any document accompanying Form No. 35 shall be furnished in the manner as the said form is furnished.

Now Procedure to E File First Appeal:

1. Login to user account in Income Tax E-filing Website
2. Go to menu -> e-File -> Prepare and Submit Online Form (Other than ITR)
3. Fill the PAN, Select  Form  35, Select the Assessment year for which appeal is to be filed 
4. Select the type of Digital Signature Certificate and get DSC registered on Income Tax Portal
5. There are four sections in the form:
        - Instruction,
        - Form-35,
        - Verification, and
        - Attachments (must not exceed 50mb in size/ must be in pdf/zip format)
6.   In Form-35  Name and PAN of the appellant is pre-filled and other paras are required to be responded      by filling/selecting appropriate facts/options.
7. There are columns same as in Old Form except 
    - Facts of the Case not exceeding 1000 Characters are to be entered
   - Grounds of Appeal  maximum 1000 characters are to be filled in the Form 35.
8. Verification is to be filled for the person whose DSC is registered .
9. The following attachments are mandatory:
a. Copy of Challan for appeal fee paid
b. Copy of order appealed against
c. Notice of demand
d. Grounds of Appeal and Facts of case being brief in column should be attached however not mandatory
10. After fully satisfying that form-35 has been properly filled and all required attachments have been duly attached, it can be submitted, saved as draft for filing later.

Once Submitted take print and submit physically with the department before the end of 30th day from the date of service of notice.

Caution while on line submission of First Appeal Form -35:
1. Maximum 1000 Characters for Facts of the Case and Grounds of Appeal to be filled in Form
2. No Special Characters while entering in Facts of the case and Grounds of Appeal in Form 35
3. In attachments Complete Facts of the Case and Grounds of appeal as well as any other document to    substantiate the facts and grounds in Zip/ pdf format can be attached but attachment must not exceed 50MB in total.

However Form No. 35 as amended is given hereunder to prepare for the filing of appeal. As for online filing of appeal due to time constraint it is advised to fill up the form and prepare Grounds of Appeal and Facts of the case in Summarized form for filing up in the Form 35 and in Full in PDF to be attached with the form 35 at the time of Uploading the form as there is no Utility till now given by the Income Tax department for submission of such form.  



FORM NO. 35
                                                   (See rule 45)
                        Appeal to the commissioner of Income-tax (Appeals)
Personal  info
First name
Middle name
Last name or name of entity
PAN

TAN(if applicable)

Flat/door/block no.
Name of premises/building/village
Road/Street/post office

Area/Locality
Town/city/district
State (select)

Country
(select)
Pin Code
Phone  No.  with STD  code/mobile No.

Email Address

Whether notices/communication may  be sent on email? yes/no

Order against which
Appeal is filed
1
Assessment year in connection with which the appeal is preferred/ Enter financial year in case appeal is filed against an order where assessment year is not relevant
Assessment year

Financial year

2
Details of the order appealed against

a
Section and sub-section of the Income-tax Act,1961


b
Date of order

c
 
Date of service of Order / Notice of Demand


3
Income-tax Authority passing the order appealed against



Pending Appeal
4
Whether an appeal in relation to any other assessment year/ financial year is pending in the case of the appellant with any Commissioner (Appeals)
Yes/no

4.1
If reply to 4 is Yes, then give following details.-


A
Commissioner (Appeals), with whom the appeal is pending


B
Appeal No. and date of filing of appeal


C
Assessment year/ financial year in connection with which the appeal has been preferred


D
Income-tax Authority passing the order appealed against


E
Section and sub-section of the Income-tax Act, 1961, under which the order appealed against has been passed


F
Date of such Order


Appeal details
5
Section and sub-section of the Income-tax Act,1961 under which the appeal is preferred


6
If appeal relates to any assessment



A
Amount of Income Assessed (in Rs.)


B
Total  Addition to Income (in Rs.)


C
In case of Loss, total disallowance of Loss in assessment (in Rs.)


D
Amount of Addition/ Disallowance of Loss disputed in Appeal (in Rs.)


E
Amount of Disputed Demand (in Rs.) – Enter Nil in case of Loss


7
If appeal relates to penalty:



A
Amount of penalty as per Order (in Rs.)


B
Amount of penalty disputed in Appeal (in Rs.)



Details of taxes paid
8
Where a return has been filed by the appellant for the assessment year in connection with which the appeal is filed, whether tax due on income returned has been paid in full
Yes/No/ Not
Applicable

8.1
If reply to 8 is Yes, then enter details of return and taxes paid


A
Acknowledgement number


B
Date of filing


C
Total tax paid


9
Where no return has been filed by the appellant for the assessment year, whether an amount equal to the amount of advance tax as per section 249(4)(b) of the Income-tax Act, 1961 has been paid
Yes/No/ Not
Applicable

9.1
If reply to 9 is Yes, then enter details
Tax Payments
BSR code
Date of payment
SI. No.
Amount




Total





10
If the appeal relates to any tax deductible under section 195 of the Income-tax Act, 1961 and borne by the deductor, details of tax
deposited under section 195(1)
BSR code
Date of payment
SI.No.
Amount









Statement of facts, Grounds of
Appeal and additional evidence
11
Statement of Facts


Facts of the case in brief (not exceeding 1000 words)


List of documentary evidence relied upon


12
Whether any documentary evidence other than the evidence produced during the course of proceedings before the Income-tax Authority has been filed in
terms of rule 46A
Yes / No

12.1
If reply to12 is Yes, furnish the list of such documentary evidence


13
Grounds of Appeal (each ground not exceeding 100 words)


1.


2.


3.


Appeal filing details
14
Whether there is delay in filing appeal
Yes/ No

15
If reply to 13 is Yes, enter the grounds for condonation of delay (not exceeding 500 words)


16
Details of Appeal Fees Paid
BSR code
Date of payment
SI. No.
Amount










17
Address to which notices may be sent to the appellant


                                                                        Form of verification
I, ____________________________the appellant, do hereby declare that what is stated above is true to the best of my information and belief. It is also certified that no additional evidence other than the evidence stated in row12.1 above has been filed.

Place
Date                                                                                                                            Signature

UPDATE