Saturday, May 28, 2016

CBDT extended the time limit for e-filing of first appeal due to be filed before 15.05.2016 by one month

CBDT vide Circular No.20/2016 dated 26.05.16 extends the time limit of E Filing of appeals which were due to be filed by 15.05.2016 up to 15.06.2016.
With Effect from 01.03.2016 Rule 45 was amended to mandate compulsory e filing of appeals before CIT for the assesses who are required to furnish the return electronically. This is done consequent to the observation by CBDT that
-          The tax payers who were required to E File Form 35 were to follow the procedure due to lack of knowledge or due to  technical issues
-          The EVC functionality for verification of E Appeals was made operational  for individuals and others from 12.05.16 and 19.05.16 respectively

Now CBDT has given opportunity by providing extended window for filing of E-appeals, taxpayers who could not successfully e-file their appeal and had filed paper appeal to file an e-appeal in accordance with Rule 45 before the extended period i.e 15.06.2016.

The assesses who have filed hard copy of appeal between 01.03.2016 to 15.05.2016 or where the due date was 15.05.2016 are required to E –File the appeal and such e-appeals would be treated as appeals filed with in time.

Thursday, May 26, 2016

MCA further relaxes additional fee on Forms due to be filed between 25.03.2016 to 31.05.2016

           MCA has issued a circular No.6/2016 dated 16.05.2016 in continuation of General Circular No.03/2016 dated 12/04/2016.
      MCA  has further extended the date of Relaxation of additional fees and extension of last date of filing of various e-Forms under the Companies Act. MCA has decided to relax the additional fee payable on e-forms which are due for filing by companies between 25 March 2016 to 31 May, 2016 as one time waiver of additional fee and it is also clarified to stakeholders that if such due e-forms are filed after 10.06.2016, no such relaxation shall be allowed.


Wednesday, May 25, 2016

CBDT has relaxed the condition of furnishing of Unique identification number allotted by the deductors

CBDT has issued a circular No.18/2016 on 23.05.2016 relaxing the condition of furnishing of unique identification number allotted by the deductor for the quarterly statement for the quarter ending 31-­12­2015 and 31-0­3-­2016.
As per the amended Rule 29C effective from 1st October,2015 which provides for online filing of self declaration for non- deduction of TDS under Section 197A and notification number 76/2015 on 29.09.15 the Tax deductor has to follow the procedure laid down for  filing  Self Declaration ( Form 15G or 15H ) and furnishing of the same with Income Tax Department.
Sub –Rule (3) of Rule 29C provides for allotment of UID ( Unique Identification number of Declaration) along with the transactions covered under Form 15G/Form 15H in Quarterly TDS statements after 01.10.2015. Due to constraints such transactions could not be included during the furnishing of TDS Statements  for the Quarter ended on 31.12.2015 and 31.03.2016, the CBDT has relaxed the same for such quarters.  

Monday, May 16, 2016

DVAT Updates

 Last date for filing of DVAT returns in form DAVT 16, 17 and 48 for the Quarter ended on 31.03.2016 of Financial Year  2015-16 further extended to 23.05.2016 announced by DVAT
All Registered Dealers in Delhi are required to display Certificate of Registration at Principal Place of Business & a certified copy of Registration Certificate at all other Places / branches in Delhi
The Dealers are also required to Display TIN Number and Ward number outside the main entrance of all business places or branches in Delhi

Friday, May 6, 2016

Steps to upload TDS Regular Statements on Income Tax website

In a major move the income tax department has made it possible for TDS returns to be filed on the income tax e filing website. ( )
Note that only regular TDS statements (from Assessment Year 2011-12 onwards) can be uploaded on the income tax e filing website, correction statements will still have to be uploaded through
 Here are the pre-requisites to uploading your TDS statement on the income tax website –
  • TAN must be registered  at website
  • TDS statement which you want to upload should be prepared using RPU (Return Preparation Utility) and validated using FVU (File Validation Utility)
  • Valid DSC registered for e-filing
Step-by Step guide to register TAN at website
ü  Existing Users of Traces has to Login and click the link “Register with e-filing”
ü  Non-Existing users of TRACES must register with TRACES before registering their TAN with e-filing portal
Step2:  Fill in the requisite mandatory details for registration of TAN with E Filing Site  i.e  Address, Email ID, Landline number, Contact Number, PAN & Tan and Signatory/ authorized person’s details after that User is redirected to e-filing Registration Page & Submit
 A successful TAN registration message would be displayed. The user records are captured in the e-Filing application.
User will open ID at with PAN as userid and after entering password, Date of Incorporation/ Date of Birth and Capcha Letters
In the worklist ( Second from right option ) there will be Approval or Rejection of TDS Registration
Approve the TDS Registration if all Particulars OK and write in comments OK or if ant other info to be given as branch in case of multiple TAN or Same PAN and Submit
Step 4
 In order to activate the account, the user should click on the Activation link and enter the Mobile PIN. On success, the user account is activated
Open your ID with TAN number on

Step-by-step guide for uploading TDS statement on income tax department website.
Step 1
Go to  and Click on ‘Login Here’
 Step 2
Enter  TAN (user ID), Password and Captcha and click on ‘Login’
 Step 3
After logging in, go to tab named TDS and select option ‘Upload TDS’ from the drop down.
Step 4
In the form, provide the following details correctly
FVU Version
Assessment Year
Form Name
Upload Type
Click on ‘Validate’
 Step 5
Now in the following screen click on ‘Upload TDS ZIP file’ and upload the TDS/TCS statement
 Step 6
Now in the above screen go to ‘Attach the Signature file’ and upload the signature file generated using DSC Management Utility for the uploaded TDS ZIP file.
Generating Signature file is explained in Uploading of 15CA and 15CB with DSC
As this is the first time that this procedure is introduced so uploading the signature file generated with DSC management for registration of DSC will also be uploaded before uploading TDS Statement
Click on “Upload” button
 Step 7
Once the TDS statement is uploaded, success message will be displayed on the screen.
Compiled by Ms Suhasini Dang CA Finalist at Sandeep Ahuja & Co

Major Amendments in Finance Bill 2016

On May 5, 2016, the Lok Sabha passed the Finance Bill with a few changes  in the Finance Bill which was presented originally in the Lok Sabha on February 29, 2016.
The Major Changes are tabulated as under: 

Finance BIll 2016
Finance Bill Passed by Lok Sabha
section 2(42A)
Unlisted Share held for a period of  > 36 month, then LTCA otherwise STCA
Unlisted Share held for a period of  >24 month, then LTCA otherwise STCA
Contribution to PF
Lower of the following out of ER's Contribution deemed as income of Employee
 # In excess  of 12% of Salary
Any withdrawal from the accumulated balance in the provident fund account, which is attributable to employee's contribution made on or after April 1, 2016, shall not be chargeable to tax up to 40 % of such accumulated balance.
LokSabha withdraws such amendment to the Fourth Schedule and maintains the status-quo for the taxability of contribution to and withdrawal from the provident fund account.

TCS in case of Motor Car
Every seller of a motor vehicle shall collect TCS at the rate of 1% of value of motor car if such value exceeds ten lakh rupees.
Such tax was proposed to be collected from the buyer under section 206C at the time of debiting the amount receivable or at the time of receipt, whichever happened earlier.

Every seller of a motor vehicle shall collect TCS at the rate of 1% of value of motor car if such value exceeds ten lakh rupees.
Such tax shall be collected only at the time of receipt of consideration.

Processing of Reurn u/s 143(1)
Before the finance bill 2016 the processing of return u/s 143(1) was not mandatory if there has been issued the notice u/s 143(2). The Finance Bill, 2016 proposed  that the processing of return u/s 143(1) is mandatory even if there has been issued the notice u/s 143(2) and the return shall be processed before issuing assessment order under section 143(3).
The processing of return u/s 143(1) is mandatory but not necessary before the expiry of one year from the end of the financial year in which return is furnished, where a notice is issued for scrutiny assessment under Section 143(2).

 25% tax rates on certain domestic  Co

The Finance Bill, 2016 proposed insertion of new section 115BA :
The domestic companies engaged in the business of manufacturing or production of any article or thing shall be liable to pay tax @ 25%, provided such company has been set-up and registered on or after March 1, 2016.
The option shall be exercised on or before due date u/s 139(1) for the relevant previous year and once the option is exercised cannot be withdrawn for same or any other financial year.
The Finance Bill passed by Lok Sabha provides that benefit of concessional tax rate shall also be available to the companies engaged in research in relation to or distribution of article or thing manufactured or produced by it.

Income Declaration Scheme, 2016 proposed by Finance Bill, 2016 and ammended by Lok sabha
The taxpayer will have the opportunity to declare their undisclosed income and pay tax, surcharge and penalty in aggregate at 45% of such undisclosed income under Income Declaration Scheme, 2016  and where the income chargeable to tax is declared in the form of investment in any asset, the fair market value of such asset as on the date of commencement of this scheme shall be deemed to be the undisclosed income.

The cost of acquisition of such asset shall be deemed to be the fair market value taken into account for the purpose of this scheme.
Section 80- IAC
Deduction for start-up
The 100% deduction for any 3 consecutive assessment years out of 5 years beginning from the year in which eligible startup is incorporated to an 'eligible Start-up' engaged in an eligible business.
 The 'eligible start-up' is proposed to be defined to mean a 'company' engaged in an eligible business.

The Finance Bill, 2016 as passed by the Lok Sabha extends the definition of 'eligible start-up' to include 'limited liability partnership' also.
The Additional tax on dividend paid by receiver of dividend
The additional tax of 10% will be paid  if amount of dividend received by a taxpayer exceeds Rs. 10 Lakhs.

The Lok Sabha clarified that dividend whether paid or declared or distributed by one or more domestic companies, the aggregate of dividend shall be considered for the limit of Rs.10 lakhs but Tax shall be payable only on the amount of dividend exceeding Rs 10 lakhs.
Deduction u/s 35CCC in respect of expenditure on agricultural extension project

Proposed to limit the deduction of 100% (Earlier it was 150%) w.e.f 01.04.2018

The Lok Sabha defers the applicability of the provision from 01.04.2018 to 01.04.2021
Section 80-IBA - Profit linked deduction on housing projects

Proposed to insert a section 80-IBA for deduction from profit arising from the business of developing and building housing projects subject to fulfillment of certain conditions where project is located within cities of Chennai, Delhi, Kolkata or Mumbai or within acceptable distance from municipal limits
The Lok Sabha clarified that
The distance from municipal limits shall be measured aerially.
The 'built-up area' of the residential unit shall be relevant to check if the size of the residential unit is within threshold limit .
Tax on Accreted Income of Trusts
As per Chapter XII-EB, containing Section 115TD, 115TE and 115TF, under the Act to provide that 'accreted income' of a trust or institution registered under section 12AA shall be chargeable to tax at the MMR in following circumstances:
   ** If the trust or institution gets converted into any form which is not eligible under section 12AA;
 ** If the trust or institution gets merged into any entity which is not eligible under section 12AA;
   ** If the trust or institution, in case of dissolution, fails to transfer its assets to exempt entities under section 12AA and section 10(23C) (iv), (v), (vi) & (via).
Accreted Income : The difference between the fair market value of the assets and liabilities of the trust or institution
Time-limit to pay tax on accreted income:
14 days from date of receipt of order cancelling registration or date of order rejecting application for fresh registration

The Lok Sabha made the following amendment
A. Assets which don't form part of accreted income

Any asset acquired by a trust or institution out of its agricultural income.

Any asset acquired by the trust before getting registered under section 12AA provided that no exemption under section 11 or 12 is provided to trust or institution during that period.
B. Time-limit to pay tax on accreted income:  Tax on accreted income shall be paid within 14 days from:
 The date on which the period for filing appeal before ITAT against the order cancelling the registration (or order rejecting the application) expires, if no appeal has been filed by the trust or the institution; or
The date on which the order in any appeal, confirming the cancellation of the registration (or application), is received by the trust or institution
C. Validity of registration obtained under section 12A
Registration under section 12AA shall include any registration obtained under section 12A.

Immunity from penalty and prosecution in certain cases
section 270AA provides  immunity to the assessee from penalties under section 270A and prosecution under section 276C if the assessee pays the tax and interest within the time prescribed by the notice, provided assessee does not file an appeal against the order.
LokSabha also includes immunity from prosecution under Section 276CC in the new Section 270AA
Rate of MAT for unit located in IFSC
The assessee shall pay the the tax under MAT @ 9% instead of 18.5% provided
  **The taxpayer is a unit established in IFSC
  **The unit must be a new unit established on or after April 1, 2016
 ** It should derive its income solely in convertible foreign exchange

LokSabha withdraws the condition of establishment of new IFSC unit after April 1, 2016
Hence all the unit whether established before April 1, 2016 or later can avail the benefit if they fulfill other two condition

Amortization of spectrum fee

35ABA provides that the spectrum fee paid for auction of airwaves shall be allowed to be deducted over the useful life of the spectrum.

LokSabha also provides for consequences if specified conditions are not fulfilled  subsequently, the deduction shall be treated as wrongly allowed and the Assessing Officer may re-compute the total income of the assessee for the respective previous years
Transfer of shares through a recognized stock exchange located in IFSC

it was proposed to amend the section 10(38) of the Income-tax Act to provide that LTCG arising from transfer of equity shares, equity oriented mutual fund or units of business trust shall be exempt from tax if the transaction is undertaken in foreign currency through a recognised stock exchange located in an IFSC, even if STT is not paid in respect of such transactions.
However, no such amendment was proposed to section 111A
The Finance Bill, 2016 as passed by the LokSabha makes similar amendment to section 111A to provide that short-term capital gains arising from transfer of underlying securities shall be taxable at 15%
Tax on income from patent developed and registered in India

The royalty income in respect of a patent developed and registered in India will be taxable at the rate of 10%b as per section 115BBF proposed to be inserted by finance bill 2016.

The LokSabha inserts two new sub-sections in Section 115BBF to provide as follows:

Assessee may exercise the option on or before the due date of furnishing of return of income under section 139(1) of the relevant previous year.

If assessee opts for taxation of income from patents as per section 115BBF in any previous year and fails to offer tax on income from patents as per section 115BBF in any of the 5 succeeding assessment years then he shall not be eligible to claim benefit of said section for 5 assessment years subsequent to the assessment year in which such income has not been offered to tax as per section 115BBF.

Compiled by CA Shalu Gupta at Sandeep Ahuja & co.

Monthly Statutory Tax Calendar

Statutory Act
Applicable Form
Service Tax
Challan No.GAR-7
E- Payment of Service Tax of April by Companies
Income Tax
Challan 281
Payment of TDS & TCS for month of April 2016.
Issue of TDS certificates for the tax deducted at source - 7 days from the date of deposit of TDS
Income Tax
F.No. 15G, 15H, 27C
Submission of forms received in May ‘2016 to IT Commissioner.
ECB-2 Return
Submission of Return for ECB Loan taken from Outside India.
Return for Non SSI assessees for April 2016
Return for EOUs for April 2016.
Deposit of DVAT TDS for April 2016.
Provident Fund
E Challan Cum Return
E-Payment of PF for April 2016.
Income Tax
Quarterly Statement of TDS/TCS for the Quarter ending March 2016.
Return for the Financial Year 2015-16 to be filled
Income Tax
Form No.27D/Form 16A
Issue of TDS Certificate(Other than Salary) for the quarter ending March 2016
Income Tax
Form 16 with Form 12BA
Issue TDS Certificate (Salary) for the quarter ending March 2016.

Procedure to generate Ack and Challan after payment under 26QB - TDS on sale of Immoveable Property

We are giving hereunder the procedure how to check and generate Acknowledgement and Challan Paid after filing 26QB and making payment subsequent to that.


Fill the Following Columns

Top of Form
PAN of Transferee/Buyer*
PAN of Transferor/Seller*
Total Payment*
(as entered in Form 26QB)
Assessment Year*
click to refresh image
Enter Text As Seen In Image (Case Sensitive)

After Submitting
You will get the acknowledgement

Challan Status Enquiry
OLTAS-Challan Status Inquiry

For Tax Payers :
Select CIN Based View

BSR Code of Collecting Branch*
Challan Tender Date(Cash/Cheque Deposit Date)*

Challan Serial No.*

* Verify the text in the below picture

Please enter alphabets and digits only and characters are case sensitive.

 * Enter the code shown:

Fill up the Columns and you will get the receipt

BSR Code of Collecting Branch
Challan Tender Date
Challan Serial No.

Major Head Code - Description
Minor Head Code - Description
Assesment Year
Name of Taxpayer
Received by TIN on
0021 - Income Tax
800 - TDS on Sale of Property / Commodities Transaction Tax
Amount matched.