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, May 31, 2017

Last date for furnishing Statement of Financial Transaction in Form 61A extended to 30.06.17

The last date for furnishing the statement of financial transactions under Rule 114E(5) of the Income Tax Rules, 1962 read with Section 285BA sub section (1) of The Income Tax Act,1961 for Assessment year 2017-18 from 31.05.17 to 30.06.17 

Tuesday, May 30, 2017

Steps to get the rectification in TAN data Base on TRACES

Sometimes there are errors which come to the notice while generating TDS Certificates i.e Form 16 and 16A through TRACES. Here we have given the steps to rectify the TAN data base Correction.
How can I rectify or correct address and other details on the basis of which TAN was allotted?
If there is any change in the data provided in the application for allotment of TIN (i.e. data provide at the time of allotment of TAN), then such change is to be communicated to the Income Tax Department by intimating the change in , the "Form for Change or Correction in TAN data".
Duly filed form should be submitted to the TIN Facilitation Centres or an online application can be made at https://www.tin-nsdl.com
How can I Change/ Correction Category of Deductor, PAN Of Deductor, PAN of Authorized Person, Communication details address or other details on traces Web Site?
Step1: Log in to Traces https://www.tdscpc.gov.in/app/login.xhtml
Step2: Click on Profile tab
Step3:
·         Please enter Token Number of Regular Statement Filed for Financial Year, Quarter and Form Type mentioned below
·         Authentication code is generated after you fill in the below details and submit. If you have already generated the Authentication Code today for this statement, please enter and proceed else fill in the details below
·         If you do not have Authentication Code, please enter the token number as required
·         Please enter a Challan with at least three distinct valid PAN-Amount combinations corresponding to the statement mentioned above. If there is no such Challan, mention a challan with at least two valid PAN-Amount combinations. If there is no such challan, mention a challan with at least one valid PAN-Amount combination. If you do not have any such challan, mention a challan with no valid PAN-Amount combination and also select the checkbox (no valid PAN Dedcutee row) in the PAN Details section below.
·         Please enter three distinct PAN-Amount combinations corresponding to the challan details mentioned above. If there are less than three PANs corresponding to the specified challan, mention all available (one or two) PAN-Amount combinations.

Step 4: After Clicking Proceed tab we will find following three tabs.
1. Organization details-Under this tab we can modify/change Category of Deductor, PAN Of Deductor & PAN of Authorized Person.
2. Communication details-Under this tab we can modify/change address for communication along with email and phone number.
3. Change Password: This tab is for Changing Existing Password.
*After updating , Click save
PAN Data base Correction follows next.
Contributed by Tanuja Thapa at Sandeep Ahuja & Co


Monday, May 29, 2017

Applicability of Indian Accounting Standards (Ind-AS)

Four phases for convergence to IND AS from current accounting standards have been notified by the Ministy of Corporate Affairs.

Phase I: Applicability w.e.f. 1st April 2016
A company, listed or unlisted, shall be mandatorily required to apply IND AS from 1st April 2016 provided :
I. Its Net Worth is greater than or equal to Rs. 500 Crores.

Note
a) Net worth shall be checked for previous 3 Financial Years i.e. as on 31.03.2014, 31.03.2015 & 31.03.2016
b) IND AS shall be applicable if Net Worth of company is more than equal to INR 500 Crores on any of the above dates.
c) Net Worth means: [Paid up share Capital + all reserves created from out of profit* & securities premium account - accumulated losses, deferred expenditure and miscellaneous expenditure not written off]

* Capital Reserve shall not be included in calculation of Net Worth, except when arising out of Promoters Contribution and Govt. Grant Recieved.

Phase II: Applicability w.e.f. 1st April 2017

A company shall be mandatorily required to apply IND AS from 1st April 2016 provided :
I. It is a listed company or is in the process of being listed; or
II. Its Net Worth is greater than or equal to Rs. 250 Crores but less than Rs. 500 Crores.

Note
a) Listing status shall be checked as on 31.03.16.
b) Net worth shall be checked for previous 4 Financial Years i.e. as on 31.03.2014, 31.03.2015 & 31.03.2016 & as on 31.03.2017. 
c) IND AS shall be applicable if Net worth of company is more than equal to INR 250 Crores but less than INR 500 crores on any of the above dates.

Phase III: Applicability w.e.f. 1st April 2018

Banks, NBFC, Insurance companies shall adopt IND AS from 1st April 2018.

I. NBFC: NBFC whose Net Worth is more than or equal to INR 500 crores shall apply IND AS w.e.f. 1st April 2018.
II. Banks & Insurance Companies shall adopt a separate set of IND AS w.e.f. 1st April 2018 as notified by IRDA.

Note
a) NBFC includes core investment companies, stock brokers, venture capitalists, etc.
b) Net Worth to be checked for 3 years i.e. 31.03.2016, 31.03.2017 & 31.03.2018

Phase IV: Applicability w.e.f. 1st April 2019

I. NBFC: NBFC whose Net Worth is more than or equal to INR 250 crores but less than 500 crores shall apply IND AS w.e.f. 1st April 2019.

General Note

If IND AS becomes applicable to a company then, IND AS shall be automatically applicable to all subsidiaries, holding companies, associate companies and joint ventures irrespective of individual qualification of such companies.

Friday, May 26, 2017

Procedure for Registration of a person as your representative for Income Tax Portal

Add User Functionality at Income Tax E-Filing Portal

1.       INTRODUCTION: If a person is incapable of attending his/her affairs for any reason including reasons contained u/s 140, section 159 & section 160 of Income Tax Act, 1961, then an authorized representative person can act on their behalf for the purpose of various compliances of Income Tax Act,1961. For this purpose existing functionalities of "Legal Heir", "Liquidator" & "Person Competent to Verify"  are consolidated into a single functionality along with some additional categories.

Registration of a person as your representative.

2.       Cases when a assessee can appoint any other person as his representative .
S. No.
User Type
Reason for Appointment of Representative
Fields available
1
Individual
Person is absent from India
Absent from India
Case of Non Resident persons
Non Resident
Any Other Reasons
Any other reason
2
Company/AOP/BOI/Trust
Non Resident
Non Resident

3.       Procedure to be followed for registration of another person as your Representative.
                                i.            Log in to E-filing portal, Navigate to "My Account" & the click "Add Representative".
                              ii.            Select Request Type as "New Request", click "Add another person to represent on your behalf" & click on "Proceed"
                            iii.            Select Applicable Reason as reasons mentioned above in Point no. 2.
                             iv.            Enter details of representative: such  as PAN, Name, Start Date, End Date & submit the same.
                               v.            Validating & entering 6 digit PIN: A 6 digit PIN shall be sent to your registered mobile number, enter the PIN in dialogue box that appears subsequently & validate the same.
                             vi.            Display of Message "Request Successfully submitted": Following message shall appear-
Your request to add XYZ holding AAAAA1234A as a representative has been registered with Transaction ID – 1000794315. XYZ holding AAAAA1234A can act on this request within 7 days by going to Work list post login

Registration of a person as your representative.

4.       A person can register himself as a representative of another person in following cases:
S.  No.
Description of Case
S.  No.
Description of Case
1
Mentally Incapacitated
6
Trust In writing
2
Legal Heir
7
Oral Trust
3
Minor
8
Official Liquidator
4
Lunatic or Idiot
9
Other Liquidator
5
Court of Wards
10
Designated Principal Officer

5.       Additional Document Requirement in case for registration as representative of a mentally incapacitated person.
In all of the 10 categories of incompetent persons for whom a person can appoint himself as his representative following documents are required:
                                      i.            PAN of the incompetent person.
                                    ii.            Date of Birth in case of individuals & date of incorporation in case of companies.
                                  iii.            Details of Name: Details of First name, middle name & last names  in case of individuals. However, only full Organization  name is required in cases other than individuals. 

6.       Procedure to be followed for registration of a person as representative of a mentally incapacitated person.

                                i.            Log in to E-filing portal, Navigate to "My Account" & the click "Add Representative".
                              ii.            Select Request Type as "New Request", click "Register yourself  on behalf of another person"  &  click on "Proceed"
                            iii.            Enter  Additional Details & Attach Relevant Documents as mentioned in point no. 3 & click on submit.
                             iv.            Display of Message "Request Successfully Submitted": Following message shall appear-
Your request to register yourself as representative of XXXXX holding PANXXXXXX has been registered with Transaction ID – 1000794315. It will be processed by Income Tax department within 7 days.
7.       Approval/ rejection of Request:
                                 i.            E-Filing Admin: Request will be sent to the e-Filing Admin for approval.
                               ii.            Approval or Rejection : The e-Filing Admin will check the authenticity of the request details and may Approve/Reject the request.
                            iii.            Intimation through E-Mai: After Approval/Rejection, an e-mail and SMS will be sent to the user who raised the request.

View Submitted Requests.

The user can view the requests raised under ‘Add/Register as Representative’. For viewing request, user will have to log in to E-filing , navigate to "My Account" & select "View Request". Further, if the proposed representative has not accepted/rejected such request then user may cancel the request.

 Access Criteria
8.       The representative so selected shall be given a limited access which is summarized in the table given below:

Status of Assessee
Case Applicable
Person to Sign ITR/Form
Access to Representative
Access to Taxpayer
Individual
Absent  From India
Resident authorized person with PAN
Full Access except ‘Profile Settings’ & ‘Add/Register as Representative’ functionalities up to the date of authorization
Only View of all returns/forms uploaded when a Representative has been assigned. Thereafter full access
Non Resident
Resident agent with PAN
Any Other Person
Any other Reason
Resident authorized person with PAN
Company/
Firm/BOI
Non Resident Co./Firm /AOP
Resident authorized person with PAN



Individual
Deceased
Legal Heir
Account Deactivated
Mentally incapacitated
Guardian or other incapacitated person
Full Access except ‘Profile Settings’ & ‘Add/Register as Representative’ functionalities up to the date of revocation by E-Filing admin.
No Access
Lunatic or Idiot
Court or Wards
Receiver/Manager
Only View of all returns/forms uploaded when a Representative has been assigned. Thereafter full access
Trust in writing
Trustee
Oral Trust

Company

Takeover by Central/ State govt.
Principal Officer of Central/State Govt.

Company being wound up

Liquidator
No Access as long as liquidator is assigned
Individual
Minor
Guardian or other competent person
Full Access except ‘Profile Settings’ & ‘Add/Register as Representative’ functionalities up to the date of minor becoming a major.
No Access, as not competent to Register. On the day of becoming Major, the user will be allowed to register.

Contributed by Tanveer Alam at Sandeep Ahuja & co

CBDT clarifies that furnishing Statement of Financial Transaction (SFT) is mandatory or not

CBDT on 26.05.2017 claries that for having even one transaction it is mandatory to file Form 61A for furnishing of Financial Transactions (SFT)  &  SFT Preliminary Response for No Transactions.
Section 285BA of the Income-tax Act, 1961
It requires furnishing of a statement of financial transaction for transactions prescribed under Rule 114E of the Income-tax Rules, 1962 and the due date for filing such SFT in Form 61A is 31st May 2017.
In case of reportable transactions:
ü  The reporting person/entity is required to register with the Income Tax Department and generate Income Tax Department Reporting Entity Identification Number (ITDREIN)
ü  The same can be generated by logging-in to the e-filing website (https://incometaxindiaefiling.gov.in/) with the log in ID used for the purpose of filing the Income Tax Return.
ü  Entity having PAN can take only PAN based ITDREIN and entity having TAN and not PAN can use TAN for generating ITDREIN.
ü   The registration of reporting person (ITDREIN registration) is mandatory only when at least one of the Transaction Type is reportable.

ü  A functionality “SFT Preliminary Response” has been provided on the e-Filing portal for the reporting persons to indicate that a specified transaction type is not reportable for the year.