The Ministry of corporate affairs (MCA) is primarily concerned with the administration of the Companies Act 2013, the Companies Act 1956, the LLP Act, 2008 & other allied laws, rules & regulations formulated there under, primarily for regulating the functioning of the corporate sector under law.
For the smooth functioning and administration, MCA comes up with relevant changes and developments from time to time. So far, many changes have been taken place in MCA portal for the functioning of various registrations and filings. The MCA was providing facility of setting up business in India, private limited company registration, one person company registration, along with certain procedures to register a new company in India through V2 version of MCA. However, various amendments were made by the Ministry from time to time to bring out important changes in the company formation procedure in India. Recently, the Ministry has introduced new portal for LLP registration in India and come up with the new facilities of web-based services of LLP. In our recent article, we are going to discuss about the recent changes in the version 2 of the MCA Portal and the functioning of new web-based portal. It is advisable to consult a professional if any person has doubts regarding how to set up business in India. Earlier, Version 2 of the MCA portal was used to file various forms relating to company formation in India and LLPs. However, LLP Services discontinued on the V2 Portal and relocated to the V3 Portal. Only the LLP e-filing services are upgraded and migrated to the MCA V3 portal, and all the other forms/ services relating to pvt ltd company registration, other company filings and miscellaneous services will continue to exist/be filed at the MCA V2 portal. The MCA has launched a new way of e-filing for LLP on the MCA21 Portal for setting up LLP in India. All LLP filings from now on will be web-based. Key features:
The V3 Portal enables the following for LLPs:
To access both the versions of the V2 and V3 on the MCA Portal, one has to login or sign in/up in the MCA portal via www.mca.gov.in, where the user will be provided the access to LLP (V3) and Companies/ other filings (V2) separately. Both V2 and V3 are now working flawlessly. Main Difference between V2 & V3: The V3 version is the updated version of the V2 Portal. In the V2 Portal, the forms relating to company formation procedure and other filings are required to be filled and then uploaded in the Portal after affixing the DSC, while in V3, the forms are to be filled online. This updated version of V3 enables the users' convenience, including the ability to save a half-filled form and file it later. Further, there is a personalized "My Application" feature in the V3 Portal, which allows the User not only to view all the forms filed by them till date but also the status of the forms such as pending for Resubmission, DSC upload, Pay fees, under Processing, etc., as against the V2 Portal where My Workspace is being provided, which consist of a list of notices and circulars from MCA issued from time to time. In addition to this, the login is through the email id in the V3 version; On the other hand, in V2, it was possible with the user id. OTP will be provided to the mobile and email address of the User to ensure authenticity as soon as a business user logs in to the MCA system. Lastly, there is no difference in Associating DSC between V2 and V3. Login & LLP Forms Filling Process on V3 MCA Portal The process to log in to LLP on MCA V3 Portal and fill LLP web forms has been discussed in detail below: Method to Login * The User will first proceed to the "Sign in/Sign Up" link on the top right corner of the MCA portal. On clicking the login icon on the left-hand side of the MCA Portal, two separate icons will be shown, one for LLP Login and the other for company login. As soon as you log in on the LLP login, you will be directed toward the LLP page. Here, users can use their existing login credentials. * The User must choose the LLP login option rather than the company login. * After successful login, users would be able to fill out LLP incorporation forms by utilizing the various options. Method to Fill the LLP Forms * At the top right corner of the MCA portal, through the existing login id of MCA, the User will proceed "Sign in/Sign Up" link. There is no need to make a new login for the LLP portal. A user can use their existing login ids. * After this, Sign in to the Portal through the existing login id of MCA. * The User is required to use the "profile update" option after login into the Portal successfully so that other forms of Limited Liability Partnership like LLP form-3 for registration of LLP agreement, Form 4 for Change in LLP partners/designated partners will display in their login. * The option of "profile update" will be shown in the top right corner. * The User must update his profile as a "business user" and fill the necessary details to complete the profile. * After successfully updating the profile, the User will again login into the Portal, and the User will obtain the OTP on the enrolled phone no and mail id. * After submitting the OTP, the User will see all the web forms available in their login and ready to fill the forms. Note: The session will get expire after 5 min of inactivity. The User will be reported after 4 min of inactivity before you are logged off. User Registration & Login-Highlights 1: Simplified Username & Registration Process * PAN Number Validation * Register using Email id or CIN/LLPIN/FCRN as username 2: Streamlined Authorization/ Suspension Process * Right to authorize Manager/Secretary/Officer in default/Authorized Representative to access * FO service (on behalf of the company/LLP) 3: Refined User types, Roles and Groups * Service Accessibility control base User role and groups 4: Email ID & Mobile OTP Validation * One-time OTP validation during registration 5: Easy User ID and password recovery * Two-step easy user ID & Password recovery through PAN & Hint question Validation 6: Additional Security Checks * OTP validation in case of login from a different device * Session expiry after 5 minutes of inactivity * Latency period check FAQs 1: How much time the registration process takes? The User can immediately start filing LLP related forms once they have registered as a new user in V3. However, it would take 4 – 5 hours for the user registration to be effected for V2 filings for Companies to be able to begin filing Company forms. Users will receive two different passwords, one each for LLP filing and Company filing upon completion of registration. 2: Can an LLP carry on multiple business activities? Yes, LLP, registered in India, can carry more than one business, provided the activities must be in the same field itself or related. Unrelated Activities which are not related, such as Interior Designing and Legal consultancy, cannot be carried out under the same LLP. The business activities must be approved by RoC and are mentioned in the agreement. 3: If a person has filed webform 3 and webform 4 for the cessation of partners from the LLP and the webform are pending for approval. Can another webform 3 and webform 4 be filed for the appointment of other partners in the LLP? In this case, the filing shall not be allowed if there is any web form 3 and any web form 4 for cessation of a designated partner or partner pending for payment of the fee or any web form 3/4 is under Processing in respect of the LLP. 4: What are the major differences between the Business User and the Registered User? Registered users comprise any individuals. Such users can perform the following two functions in the LLP module – * RUN Form * Fillip form. A business user can access and file all the forms. The most suitable category may be selected: * Company/LLP & Director/Designated Partner * Manager/Secretary/Authorized Representative * Officer in Default * Professional However, the "Professional User" in V3 was earlier termed as "Practicing Professional" in the V2 Portal. Overall, there is no change in the naming or position of a Business user between V2 and V3. 6: Can a Registered User upgrade to a Business User? Yes, a Registered User can upgrade itself to a Business User; one must not create new login credentials as a Business user. To upgrade the account, the following needs to be done. Registered users can also upgrade in V2 to Business User in V3 by following steps: a. First, Sign in to the Portal. b. Next, in the Right-Hand Corner, "Hello – Your Name" will Display. c. Click on the above icon d. Select the Profile Update Page e. Next, click on Add Role f. Select Business User Role and then select the appropriate options 7. If I am an existing user, do I need to re-register again? You need not register once again if you are an existing user in V2. The system will identify the mail id given by the User as a duplicate id and does not permit a registration. The User will be permitted to create as a new user only with a new mail id. If the User is already registered in V3, then it is not needed to get new registration in V2. 8. Can a person has the same user id both as a CA in Professional Role as well as a Director role? No. the User cannot have multiple roles under the same user id. However, a user can upgrade the part. For instance, if one is a Professional (existing), the User can upgrade to the following roles: a. Director/Designated Partner b. Manager/Secretary/Authorized Representative Source:https://www.manishanilgupta.com/blog-details/recent-changes-in-mca-portal-v2-with-new-web-based-v3-portal-for-llps
1 Comment
It is a very common thing for charitable institutions such as schools, colleges, universities and research institutions to receive donations. However, sometimes such claims for donations can be either false or fraudulent. Many such fraudulent claims have tried to take advantage of Section 80G of the Income Tax Act, 1961, which allows the donors a deduction for the amount donated by them to the recognized charitable institutions. Besides, earlier, the procedure for reporting donations was manual, thus providing room for some discrepancies.
To tackle all such issues and bring more transparency in reporting donations, the Income Tax Department of the Government of India has notified vide notification no. 19/2021-Income Tax, that all the persons receiving donations will have to declare the details of the donations received during the financial year in Form 10BD. Contrary to the earlier manual mode of reporting donations, the new rules make it mandatory for the donations to be reported online. Besides, it is to be noted that a certificate shall have to be issued to all such donors via Form 10BE by the recipients of such donations. This article tries to provide every important detail about Form 10BD application and questions related to it, such as ‘How to file Form 10BD online?’, ‘Does a person need consultants for filing Form 10BD?’ etc. Now let’s look into the details of Form 10BD. Who will have to file Form 10BD? Rule 18AB of the Income Tax Act, 1961 is applicable to all such entities (charitable institutions) which have approval u/s 80G and u/s 35(1) of the Act. For these institutions, Form 10BD filing has been made mandatory. It requires them to file a statement of donations (through Form 10BD) beginning from the financial year 2021-2022. All the research institutions, colleges, universities or other institutions which come under clause (i) to section 35 (1A) of the Income Tax Act will also be required to furnish the details of donations in Form 10BD. Apart from this, as mentioned in the beginning, the reporting entities will have to provide a Certificate of Donation to all such donors through Form 10BE. What is the due date for filing Form 10BD? According to the new rules, Form 10BD needs to be filed every year starting from the financial year 2021-2022. It has to be filed annually. Rule 18AB (9) says that Form 10BD needs to be filed on or before 31st May, which immediately follows the end of the financial year in which the donations were received. For instance, if donations were received in the financial year 2021-2022, then Form 10BD needs to be filed on or before 31st May 2022. What is the procedure for filing Form 10BD? Form 10BD has to be filed electronically/digitally through the website (e-portal) of the Income Tax Department. The form needs to have the digital signature of the person authorized to sign the ITR of the reporting entity. What details are needed for Form 10BD? The following details are required for filing the form: * Details of the Reporting person receiving the donations * PAN * Reporting Period (Financial Year) * Details of the Donor – * The Unique Identification number; it can be either PAN or Aadhar number. * In case neither of the above are available, fill in one of the following – Passport Number/ Tax Payer Identification Number (in case of a foreign resident)/ Voter ID No./ Ration Card Number/ Driving License Number. * Section Code: * Section 35(1)(iia) * Section 35(1)(ii) * Section 35(1)(iii) * Name and Address of the Donor * Donation Type: * Corpus * Specific Grants * Others * Mode of Receipt * Cash * Kind * Electronic Modes, which includes draft and payee cheque * Others * Amount of Donation Certificate of Donation After filing Form 10BD, the reporting party needs to provide the donors with a Certificate of Donation through 10BE so that the donors can claim deductions u/s 80G or section 35 of the Income Tax Act. Form 10BE can be downloaded after Form 10BD has been successfully filed. What if the reporting entity delays or fails to file Form 10BD? OR What is the late fee in the case of Form 10BD? If the reporting person fails to file Form 10BD within the stipulated time (that is, in case of a delay), due to any reason whatsoever, then such a person shall be liable to pay a penalty of Rs. 200/- per day of non-filing as per the new section 234G of the Income Tax Act, 1961. Apart from this, if the reporting entity fails to furnish the statement of donations through Form 10BD, then according to section 271K, such a person shall attract a penalty of not less than Rs 10,000, which may even extend up to Rs 1,00,000. Is it possible to revise Form 10BD? Yes, in case any unintentional errors were made in the form, it is possible for the reporting person to rectify those errors in Form 10BD through a correction form. Do you need consultants for filing Form 10BD? Although Form 10BD can be easily filed online, however, if you are facing any difficulty or doubts, it is best to contact an experienced and reputed tax consultant. Other Details: 1: Reporting Multiple Donations from the same donor – All the donations from every single donor have to be aggregated, and only a consolidated amount of such donations is required to be reported. However, aggregating such donations is subject to the condition that the ‘Donation Type’ and ‘Mode of Receipt” for all such donations remain the same. 2: Anonymous Donations – Anonymous donations indicate that the person receiving donations has no record of the identity of the person making such donations. Such donations cannot be reported. Nevertheless, a limit of Rs. 1,00,000 or 5% of total donations received, which is higher, has to be acknowledged while making the reconciliation statement for any difference in the ITR/audit reports and the amount of reported donations. Conclusion: Form 10BD has made the role of the donation receiving entities more crucial in bringing out the transparency about the donations. As per the new rules, it is not only enough to declare the details of donations in Form 10BD, but it is equally imperative to furnish a Certificate of Donation to the donors via Form 10BE. These rules are also going to be a turning point in bringing more transparency to the reporting system of donations because now all the details of the donations will be easily available in Form 26AS and AIS. Source:https://www.manishanilgupta.com/blog-details/understanding-form-10bd-a-new-step-towards-bringing-in-more-transparency-in-donation-reporting-system People might buy capital assets to ensure present and future financial security, be independent in any event of financial hardship or create a source of funds for their future financial goals. But, when they sell these capital assets, the profit that they earn from such a sale is called a capital gain. Such a gain is chargeable to tax under the Income Tax Act, 1961. However, certain provisions of the Income-tax law allow taxpayers to claim specific exemptions against such gains, which help them reduce their tax liability. So, are you wondering how to save capital gain tax? You can save tax on your capital gains by availing the benefit of the provisions of two important sections of the Act,which are sections 54 and 54F.
Let’s look at what these sections are all about by giving a read to this article. 1: Exemption under Section 54 As per Section 54 of the Income-tax Act, an individual or HUF can avail tax exemptions on long-term capital gains arising on transfer of a residential house property if the amount of such capital gains is invested in purchasing or constructing another residential house property. * The primary conditions that need to be satisfied to avail the benefit of this section are as follows: * The exemption under 54 is available only to an individual or HUF. Taxpayers such as partnership firms, LLPs, companies, AOPs or BOIs cannot claim relief under this section. * The transferred asset should be a long-term capital asset, being a residential house property. * Income (if any) from such transferred residential house should be chargeable under the head 'Income from House Property’. * The seller should, within one year before or two years after the date on which the transfer took place, purchase, or within three years after that date, construct one residential house. * The new residential house property should be in India. The taxpayer cannot purchase or construct a residential house abroad and claim the exemption under this section. * The conditions mentioned above are cumulative. Hence, even if one requirement is not fulfilled, the assessee will not be able to claim the benefit of the exemption u/s 54. With effect from AY 2021-22, section 54 has been amended to extend the relief of exemption for the investment made in two residential house properties in India. The exemption for the investment made to purchase or construct two residential house properties shall be available only if long-term capital gains do not exceed Rs. 2 crores. It must be noted that once the taxpayer avails of this option, he shall not be eligible to exercise it again for the same or any other assessment year. Amount of Exemption A taxpayer can avail exemption on long-term capital gains of an amount lower of the following: * Capital gains arising on transfer of the long-term residential house property; or * Amount invested in purchasing or constructing new residential house property. Restriction on Transfer of the New Residential House Property The government has inserted a restriction in section 54 to ensure that the new house property purchased to claim the exemption under this section is retained for a particular period, and the provisions thereof are not taken undue advantage of. The restriction is in the form of prohibition on the sale of the new house property within three years from the date of its purchase or construction, as the case may be. If the exemption is claimed under section 54 and the new house is sold within three years from its purchase or construction, then at the time of computation of capital gain arising on transfer of such new house, the amount of exemption claimed on capital gains u/s 54 will be subtracted from the cost of acquisition/construction of the new house. Consequently, the cost of acquisition/construction of the new house property will decrease or become nil, as the case may be, resulting in higher capital gains on the transfer of such property. Let us have a look at the below illustrations to have a better understanding of the provisions of section 54: Illustration 1 Mr. Verma purchased a residential house in May, 2015 and sold the same in May, 2021 for Rs.7,45,000. He made a capital gain of Rs.1,50,000 on such sale. Can he avail the benefit of section 54 by purchasing/constructing another residential house from the capital gain of Rs.1,50,000? Ans.Exemption u/s 54 can be claimed in respect of capital gains arising on transfer of a capital asset, being a long-term residential house property. This relief is available only to an individual or HUF. In this case, all the conditions provided in section 54 are satisfied. Hence, Mr. Verma can claim the benefit of section 54 by purchasing/constructing a residential house within the time limit as provided under section 54 (mentioned above). Illustration 2 Mr. Kapoor purchased gold in June, 2016 and sold the same in August, 2021 for Rs.8,90,000. Capital gain arising on the transfer of gold amounted to Rs.1,30,000. Can he claim the exemption u/s 54 by purchasing/constructing a house from the capital gain of Rs.1,30,000? Ans. Exemption u/s 54 can be claimed on capital gains arising on transfer of a capital asset, being long-term residential house property. In this example, since the capital asset is gold, i.e., other than a residential house, the exemption of section 54 is not available. However, in this case, the benefit can be claimed under section 54F subject to certain conditions defined in that provision (Discussed in subsequent paragraphs). Illustration 3 Mr. Goyal purchased a residential house in October, 2021 and sold the same in May, 2022 for Rs.9,40,000. Capital gain arising on such sale amounted to Rs.3,50,000. Can he claim the exemption under section 54 by purchasing/constructing another residential house from the capital gain of Rs.3,50,000? Ans.Exemption u/s 54 can be claimed on capital gains arising on transfer of a capital asset, being long-term residential house property. An immovable property qualifies as a long-term capital asset if its holding period exceeds 24 months. In this case, the house property is transferred after holding it for less than 24 months and, therefore, it is a short-term capital asset. The benefit of section 54 cannot be availed in respect of a short-term capital asset, and, thus, in this case, Mr. Goyal cannot claim the benefit of section 54.
The basic conditions that need to be satisfied to avail the benefit of section 54F are as follows: * The exemption under 54F is available only to an individual or HUF. * The exemption is available on the capital gains arising on the transfer of any long-term capital asset other than a residential house property. * The taxpayer should invest the net consideration received on transfer of the original asset in either of the following: * To purchase one residential house in India within a period of one year before or two years after the date of transfer of the original asset. * To construct one residential house in India within three years after the date of transfer took place. For this section, the ‘net consideration’ in respect to the transfer of a capital asset means the total value of the consideration received or accruing in relation to the transfer of the capital asset as reduced by any expenses incurred exclusively in connection with such transfer. Amount of Exemption Case 1: Cost of the new asset exceeds the net consideration in respect of the original asset If the cost of purchasing or constructing the new asset is more than the net consideration received or accrued in relation to the transfer of the original asset, the whole amount of capital gain shall be exempted under section 54F. Case 2: Cost of the new asset is less than the net consideration in respect of the original asset In case the entire sale consideration is not invested in the new asset, i.e., if the cost of the new asset is lower than the net consideration in relation to the original asset, then exemption shall be allowed proportionately in the following manner: Amount of exemption = Long-term capital gain * (Amount invested in the new asset/Net saleconsideration) Circumstances in which Exemption u/s 54F is not Available The circumstances in which the exemption u/s 54F is not allowed are as follows: * The taxpayer has more than one residential house, other than the new asset, on the date of transfer of the original asset. * The taxpayer purchases any residential house, other than the new asset, within one year after the date of transfer of the original asset, and the income from such residential house is chargeable under the head 'Income from house property’. * The taxpayer constructs any residential house, other than the new asset, within three years after the date of transfer of the original asset, the income from which is chargeable under the head 'Income from house property’. In case of the taxpayer purchases, within two years after the date of the transfer of the original asset, or constructs, within three years after such date, any residential house, the income from which is chargeable as 'Income from house property’, other than the new asset, the amount of capital gain on transfer of the original asset that was exempted u/s 54F shall be charged as long-term capital gains in the financial year in which such residential house is purchased or constructed. Restriction on Transfer of the New Residential House Property As in the case of section 54, the similar lock-in period of three years on the transfer of the new residential house from the date of purchase or construction, as the case may be, is applicable u/s 54F also. If the exemption is claimed under section 54F and the new house is transferred within three years from the date of its purchase/construction, the amount of capital gain arising from the transfer of the original asset exempted in the year of such transfer shall be charged as long-term capital gains of the financial year in which such new asset is transferred. Note: For section 54F, if the assessee owns more than one residential apartment or residential unit in the same building on the date of transfer of the asset, it will be treated as one residential house property only. This view has been constructed by placing reliance on the following case judgements: 1. SHRI. NAVIN JOLLY C/O NAVIN ARCHITECT PRIVATE LIMITED VERSUS THE INCOME-TAX OFFICER, WARD 11 (1) [2020] 424 ITR 462 (Kar) It was held that “The assessee even otherwise is entitled to the benefit of exemption under Section 54F(1) of the Act as the assessee owns two apartments of 500 square feet in the same building and therefore, it has to be treated as one residential unit”. 2. SRI S.M. VINOD, L/R OF LATE SM MUNIYAPPA VERSUS THE INCOME TAX OFFICER, WARD 7 (2) (1), BANGALORE [ITA No.192/Bang/2020 (Assessment year: 2016-17)] It was held that “The assessee owns one independent building which has two units one in the ground floor and another in the first floor and having two units cannot change the nature of the building, it remains as “one residential house” as in the case of Shri Ramaiah Harish [2021 (9) TMI 1138 - ITAT BANGALORE]. Thus, we direct the AO to allow deduction u/s. 54F of the Act. The grounds raised by the assessee are allowed.” Now that we have gone through the provisions of section 54F, let us have a look at the below illustrations to understand the section better: Illustration 1 Mr. Sharma purchased a residential house in March, 2016 and sold the same in May, 2021 for Rs.7,50,000. Capital gain on sale of the house property amounted to Rs.2,50,000. Can he claim the benefit of section 54F by purchasing/constructing a house from the capital gain of Rs.2,50,000? Ans. Exemption under section 54F can be claimed in respect of capital gains arising on transfer of a long-term capital asset, not being a residential house property. In this case, since the capital asset is house property, the benefit of section 54F will not be available. Illustration 2 Mr. Jain sold a long-term capital asset, other than a residential house property, for Rs. 60 lakhs and made a capital gain of Rs. 6 lakhs. He invested the entire amount of Rs. 60 lakhs to purchase a house property in India. He owns only one house on the date of sale of the asset. Calculate the amount of capital gain that would be exempt under section 54F. Ans. Since Mr. Jain has invested the whole amount of capital gains in purchasing the new house and satisfies all the required conditions to claim the exemption, he can claim the entire amount of long-term capital gain, i.e., Rs. 6 lakhs, as exemption under section 54F. Illustration 3 In illustration 2 above, assume that Mr. Jain invested only Rs. 35 lakhs towards the purchase of the house property. Now, calculate the amount of exemption on capital gains that he can claim u/s 54F. Ans. Since, in this case, the amount invested in the new asset is less than the net sale consideration, the exemption would be calculated as follows – Amount of exemption = Long-term capital gain * (Amount invested in the new asset/Net sale consideration) = 6 lakhs * 35 lakhs/60 lakhs = Rs. 3.5 lakhs Hence, in this case, Mr. Jain can claim the exemption of Rs. 3.5 lakhs under section 54F. Concept of Capital Gains Account Scheme As mentioned above, to claim benefits under sections 54 and 54F, the taxpayer must purchase a residential house within a period of one year before or two years after the date of transfer of the long-term capital asset or should construct the same within three years from the date of transfer. If till the date of filing the Income-tax return, the capital gain, in case of section 54, and net consideration, in case of section 54F, on the transfer of the original asset, is not utilised (in whole or part) to purchase or construct the new house property, then the benefit of exemption can be claimed by depositing such unutilised sum in Capital Gains Deposit Account Scheme. The new house property can be purchased or constructed by withdrawing the amount from the said account within the specified time limit of two years or three years, as the case may be. Unutilised amount in Capital Gain Account Scheme If the sum deposited in the Capital Gains Deposit Account Scheme in respect of which the assessee has claimed exemption under section 54 or 54F is not utilised within the specified period for purchasing or constructing the residential house, then the unutilised amount will be taxed as long-term capital gains in the year in which the specified period of three years from the date of transfer of the original asset gets over. Similarities between sections 54 and 54F There are several common provisions under section 54 and section 54F that are as follows: * A new residential house property must be purchased or constructed to claim the exemption. * The new residential house property must be purchased within one year before or two years after the transfer of the original asset. * Alternatively, the new residential house property must be constructed within three years from the date of transfer of the original asset. * Both the sections state a similar lock-in period of three years for transfer of the new asset from the date of purchase or construction of the original asset, as the case may be. * The option of depositing the unutilised amount of capital gains in the Capital Gains Account Scheme is available under both sections. Section 54 v/s Section 54F Section 54 and section 54F differ in various aspects, some of which are as follows: * The main difference lies in the asset on which the exemption is available under each section. The exemption u/s 54 is available on long-term capital gain on the transfer of a residential house property. Whereas, under section 54F, the exemption is available on long-term capital gain on the transfer of any asset other than a residential house property. * To claim full exemption u/s 54, the entire capital gains must be invested in the new asset. In contrast, the total net consideration must be invested in the new asset to claim full exemption under section 54F. * Once in a lifetime option is available of claiming exemption on capital gains under section 54 on investing such gain in two properties if the amount of capital gains does not exceed Rs. 2 crores. No such option of investment in two assets is available u/s 54F. * The taxpayer should not own more than one residential house, other than the new asset, on the date of transfer of the original asset to claim exemption u/s 54F. There is no such restriction stated in section 54. * In case the entire capital gains are not invested in the new asset, then u/s 54, the invested amount is exempted, and the remaining amount is charged to tax as long-term capital gains. Whereas, u/s 54F, if the entire net consideration is not invested, the exemption is allowed proportionately (explained in the above paragraphs). Summing up After reading this blog, it can be concluded that if the sale and purchase of capital assets are planned keeping in mind the provisions of sections 54 and 54F, a taxpayer (individual & HUF) can save a considerable amount of taxes. Hence, the taxpayers must carefully understand these provisions and plan their investments in such a way so that they are able to reap the benefits of the relief provided under the said sections. If the taxpayers face difficulty on how to compute capital gain tax or have confusion in calculating capital gain exemption on sale of house property or any other capital asset, they should consider consulting a capital gain tax expert who can provide them with the correct guidance. Source:https://www.manishanilgupta.com/blog-details/decoding-sections-54-and-54f-of-the-income-tax-act-1961 HTS Hosting, as a top-tier data centre and a world-class web hosting company with innumerable global users of our hosting services, has always been resolutely focussed on delivering the highest standard of hosting service, through our highly sophisticated web hosting infrastructure that is continuously revamped to keep pace with global technological advancements.
With our aim to add more and more value, through the wide range of hosting services that we provide, we bring to you an array of feature-rich VPS Hosting plans, wherein each of our powerfully configured Virtual Private Servers (VPS) is fully equipped with the latest technology delivered by the 3rd Gen AMD EPYC™ CPU. With a reputation for being the highest performing server processor in the world, the 3rd Gen AMD EPYC™ processor offers a slew of future-forward technologies. It is known for successfully enabling an increase of about 50% in the processing of transactions, which helps drive e-commerce. It offers high core-density, which goes a long way in ensuring that a greater number of customers can receive effective service from the same number of servers. The 3rd Gen AMD EPYC™CPU-based VPS of HTS Hosting will exceed your expectations with regard to the superlative Virtualized Desktop Instance (VDI) performance that these are capable of delivering, while ensuring a reduction in CapEx and OpEx. You will witness not only a colossal enhancement in performance but also powerful security features, owing to the use of the latest AMD EPYC™ processors by us in all our Virtual Private Servers. The highly experienced Research and Development team of HTS Hosting works proactively to ensure that our entire hosting infrastructure, including our web servers, run on the latest and the most advanced technology. Hence, it is after thorough scrutiny and after validating the claims of its effectiveness, that we have made the AMD EPYC™ processors a part of all our VPS Hosting plans. Whether you avail any of our Linux Managed VPS Hosting plans or our Linux Self-Managed VPS Hosting plans or our Windows hosting plans for Managed VPS or Self-managed VPS, rest assured that the web servers will be powered by the latest AMD EPYC™ processors. The VPS Hosting plans of HTS Hosting have always been immensely popular among the global users of web hosting services, due to the excellent value for money that these plans deliver. Every VPS Hosting plan of HTS Hosting is loaded with features and can be availed at discounted prices. Now, by utilizing the power of the3rd Gen AMD EPYC™ processors, we have ensured the we can offer innovative features that prioritize delivering unsurpassable security and outstanding performance through cutting-edge technology. Popular as a seamless smart solution, the 3rd Gen AMD EPYC™ processors, that are an integral part of all the VPS Hosting plans of HTS Hosting are known to be purpose-built for businesses and ensure a competitive edge for those businesses that opt for our affordably-priced VPS Hosting plans. As your preferred web hosting company, HTS Hosting, ensures that you can reap the full benefits of our expert VPS Hosting services, which is now powered by the pioneering technology of the 3rd Gen AMD EPYC™ processors, at massively discounted prices. Source:https://www.prfree.org/@htshosting/hts-virtual-private-servers-powered-by-amd-epyc-3rd-gen-processors-eqmjpd7bwmr6 The Union Budget, 2022, was presented by Finance Minister Ms. Nirmala Sitharaman in the parliament on 1stFebruary, 2022. Like each year, this year also, a number of amendments have come up in the provisions of the Income Tax Law with the enactment of the Finance Act, 2022.
Here are the few significant changes that the taxpayers should be aware of: Taxation of Digital Assets An important highlight of the Finance Bill, 2022 is the introduction of new provisions for taxation of income from virtual digital assets (cryptocurrency, etc.) that will be effective from 1stApril, 2023, which are as follows: a) Gains arising from the transfer of the digital assets would be taxed at a flat rate of 30% (plus applicable surcharge and cess). b) No deduction for any expenditure (other than the cost of acquisition) shall be allowed to calculate the income from digital assets. Further, no set-off of any loss shall be allowed to the taxpayer from such income. c) Gift of digital assets would be taxable in the hands of recipients. d) Payments made in relation to the transfer of the digital assets will be subject to TDS at 1% of such consideration above a certain threshold limit. This provision will become effective from 1st July, 2022. Introduction of the concept of ‘Updated Return’ The Finance Minister has introduced a new provision to enable the taxpayer to file an updated return, giving him an opportunity to report additional income that he may have missed inadvertently in the original tax return. While all taxpayers have the option of revising their tax returns up to 31stDecember following the relevant financial year, the updated return can be filed within a period of two years from the end of the relevant assessment year (i.e., within three years from the end of the relevant financial year). The introduction of this provision is a step towards promoting voluntary reporting by the taxpayers. Tax relief to the parents and guardians of the person with a disability [This amendment will take effect from 1stApril, 2023] Presently, the deduction to resident individuals and HUF under Section 80DD is allowed with regard to any amount deposited under a scheme issued by LIC or any other insurer for the maintenance of a dependant, being a person with a disability, provided such scheme provides for payment of the annuity or lump sum for the benefit of the disabled dependant only in case of death of the subscriber (Parent or Guardian). However, in some situations, the person with disability may need payment of the annuity or lump sum during the lifetime of the parents and guardians also. Thus, in order to remove such genuine hardship, it is proposed that the parents or guardians can claim such deduction even if the disabled dependent person claims the payment of annuity or lump sum amount during their lifetime, i.e., on parents/guardians attaining the age of 60 years. Better litigation management In an attempt to reduce the repeated litigation between taxpayers and the department, section 158AB has been inserted in the Act and has been provided that if a question of law in an assessee’s case is identical to a question of law which is pending in appeal before the Supreme Court or the jurisdictional High Court in any case, the filing of a further appeal in case of this assessee by the department shall be postponed till such question of law is resolved by the jurisdictional High Court or the Supreme Court. Increased NPS Deduction Limit for State Government Employees The Central Government employees are allowed a deduction of up to 14 per cent of their salary on account of the contribution made by the Central Government to their National Pension Scheme Account. However, at present, such deduction is allowed only to a maximum of 10 per cent of the salary in the case of the State government employees. To bring parity between both Central and State government employees, the government has proposed to increase the limit of tax deduction from 10 per cent to 14 per cent on the contribution of the employer to the NPS account of State Government employees as well retrospectively with effect from 1stApril, 2020. Incentives to Start-ups (Section 80-IAC) Eligible start-ups incorporated before 31stMarch, 2022 had been given the benefit of tax exemption for three consecutive years out of ten years from the year of incorporation under section 80-IAC. This period of incorporation of the eligible start-ups has now been extended by one more year, i.e., till 31stMarch, 2023, to avail such tax incentives. Incentives to newly incorporated manufacturing entities (Section 115BAB) The domestic manufacturing companies set up after 1stOctober, 2019 that commenced manufacturing or production before 31stMarch, 2023, had been provided with the benefit of a concessional tax rate of 15% under section 115BAB. This period for commencement of manufacturing or production has now been extended by one more year, i.e., till 31stMarch, 2024, to avail the benefit of such concessional tax rate. Reduced Alternate Minimum Tax rate for Co-operative societies Currently, co-operative societies are liable to pay Alternate Minimum Tax at the rate of 18.5 per cent. However, companies are required to pay the same at the rate of 15 per cent. To cater a level playing field between co-operative societies and companies, this rate for co-operative societies also has been reduced to fifteen per cent. Clarification on the disallowance of Health and Education Cess In the budget speech, the Finance Minister clarified that any surcharge or cess imposed on the taxpayer is not allowable as business expenditure. Accordingly, an amendment has been made in section 40 of the Act to expressly convey that the ‘tax’ shall include any surcharge or cess on such tax and not be allowed as business expenditure for computation of business income. Deterrence Against Tax-Evasion In order to increase dissuasion among tax evaders, section 79A has been inserted in the Act to provide that no set-off of any loss shall be allowed against the undisclosed income detected during search and survey operations. Rationalization of Surcharge The surcharge rate on long-term capital gain on transfer of any asset has now been capped at 15%. Earlier, the capping was applicable to long-term capital gains only from listed equity shares, units, etc. This capping will help taxpayers with a taxable income above Rs. 2 crores to save some taxes. Also, for co-operative societies, having total income above Rs. 1 crore, but less than Rs. 10 crores, the surcharge has been reduced to 7 per cent from 12 per cent. Further, the surcharge rate of the AOPs has been capped to 15%. Exemption of amounts received for Covid treatment or in the event of death due to Covid 19 In a press release dated 25thJune, 2021, the Finance Ministry announced exemption of payments received for Covid medical treatment or on the death of an individual due to the illness related to Covid 19. These exemptions have now been legislated with retrospective effect from 1stApril, 2020 by making amendments under section 17 and section 56 of the Act. Such exempt payments are as follows: a) The amount received by a taxpayer from an employer or any person for treatment of Covid-19. b) The amount received by the family members of a person who lost his life due to Covid-19 from the employer of such deceased person or any other person. It must be noted that this exemption shall be allowed without any limit for the amount received from the employer, whereas the exemption shall be limited to Rs. 10 lakhs in total for the amount received from any other person. It has been clarified that such payment must be received within 12 months from the date of death to qualify for the exemption. Summing up The objective of the Union Budget 2022 regarding the Direct Taxes was to simplify the tax system, promote voluntary compliance by taxpayers, and reduce litigation. The clarity on taxation of virtual digital assets will help investors make the right decisions.The introduction of the provision of updated return is a step towards affirmative and voluntary reporting by taxpayers and relief against penal provisions. Source:https://www.manishanilgupta.com/blog-details/significant-amendments-in-the-provisions-of-income-tax-act-in-finance-bill2022 The national GST laws have enabled a strong network of compliance. GST laws are regularly amended to ease up the GST regime and make the regulation fair for all. However, simultaneously, the government is also focusing on making the GST taxation laws more stringent than ever before. A failure to comply with GST regulations may lead to the cancellation/suspension of GST registration which one cannot afford to let happen as it is not lawful to make any taxable supply after the suspension of GST Registration. So, let us take a more in-depth look at the reasons and possible measures to help you deal with this GST registration suspension situation.
Reasons behind Cancellation/Suspension of GST Registration As a taxpayer, you may wonder why a GST registration may be cancelled or fear of getting your registration suspended. However, it is to be noted that no registration is cancelled without valid reasons. So, it becomes very important to be extra-cautious to watch out for any possibility of GST Registration cancellation. Here are some of the reasons why your GST registration may be suspended-
Understanding suspension of GST registration An authorised officer can only suspend registration if he has reasons to consider that the registration is liable to be cancelled. The officer may offer a warning or a chance to rectify the situation before the GST is suspended. The taxpayer is intimated through Form GST REG-31 regarding discrepancies. The form also mentions that GST may be cancelled if the taxpayer does not provide a valid explanation. Further, the officer can still order a suspension if, in his opinion, the explanation is found to be incomplete or unsatisfactory. Consequences of GST Registration Suspension In case a GST registration of a person is suspended, the business entity may not be able to pay taxes or file for a GST return. If you are under the category of the taxpayer and your GST registration has been suspended, you must immediately contact an assessing officer and request for activation of GSTIN. A failure to do the same in time can lead to cancellation of registration and further penalties due to non-compliance with GST regulations. What to do after Suspension of GST Registration? In case the taxpayer has not voluntarily applied for cancellation of registration and yet have received a notice, here are some of the things you can consider- 1: On receiving a notice for discrepancies If a taxpayer receives a notice for discrepancies, he needs to furnish a reply to the tax authority within one month of receiving the notice. The reply should include details of all the corrective measures and actions taken to comply with the non-compliances and the reasons as to why the registration should not be cancelled. 2: On receiving a notice of cancellation In this scenario, one needs to reply to the tax officer using Form GST Reg 18 online through the official GST portal within one month of getting the notice. 3: Receiving a notice due to non-filling of returns Non-filing of returns is the most common scenario. If the notice for suspension or cancellation of registration is issued on the ground of non-filing of returns, the said person may file all the due returns and submit the response. How To Activate suspended GST Registration? As a registered taxpayer, you can apply for reactivation of your GST registration as per GST laws within 30 days. But this can only be done when an authorised GST officer suspends the registration. A voluntarily suspended registration cannot be revoked under any circumstances. There is no doubt that the rules for suspension provide relief to taxpayers to some extent. The government has streamlined the process, but it is still advisable to take the help of a professional for revoking the suspended GST registration. A consultation with a GST professional or a certified CA can help you stay under compliance and get possible remedies to deal with the suspension of GST registration without going through much trouble. Source: https://www.manishanilgupta.com/blog-details/gst-suspended-what-to-do-next In our routine life, we come across different brands. Without realizing it, we are using the brand in everything; whether we are wearing something or eating anything, almost everyone has registered their business. Trademark is a unique way of identifying the brand. Trademark is a symbol or word that the user legally registers as representing a company or product. It differentiates your product from the products of other competitors. For instance, any wristwatch enthusiast in India can identify Titan's name merely by looking at the logo — even if the brand name is not cited on the product.
It is a type of intellectual property consisting of a recognizable sign, design, or expression which makes it unique from other products. So, if you are running any business and come up with some new ideas or outstanding work, get yourself registered before anyone steals it. A Trademark should be unique to your brand to get it recognized. If your logo is unique and recorded, the potential customers will remember your brand by that logo. Anyone can quickly identify which brand your product belongs to. Why do trademarks matter?A trademark helps protect the owner of the mark by securing the exclusive right to use it or allowing another to use the same in return for payment. A trademark owner can be an individual, business organisation, or legal entity. A trademark is one of your company’s precious capital. It is a way of identification and substantially plays a significant role in building the company's public image. Trademarks carry supreme interest as the general public can recognize a brand based on trademarks in a competitive market. At the same time, they also prevent other enterprises from copying another’s brand. Trademark helps to save the brand from infringement. Brand registration in India drives the companies to abide by the standards, rules and regulations. Customers can identify brand values and offerings after being satisfied with consistency and quality. Need for Trademark Registration Trademark is registered under the Trademark Act, 1999, and whenever infringements of trademarks happen, it provides the owner of the trademark the capacity to sue for losses. Brands, when registered, act as intellectual property for the business, as they safeguard the investment of the company. The chosen trademark shall register them selves on a mandatory basis as they work as a unique symbol for the products and services they provide. How to Register a Trademark? It feels hurt when you see some other entrepreneurs rob your hard-earned reputation. Many times, trademark (TM) owners end up in prolonged litigation because they did not register their brand when the time was right. Hence, it is virtuous to register your mark, and the owner will have the much-needed legal protection of their brand name registration in India. The trademark registration in India process does not require much effort. It is a simple process. The following procedure is involved for the Online brand Registration: Step 1: Trademark Registration Many entrepreneurs do not understand the importance of a TM search. Before applying for TM, always search your mark on the TM portal, as it gives you a fair picture of whether your mark matches the existing trademark. It helps to save your time and further gives you a forewarning of the possibility of trademark litigation. Always remember to select the unique and distinctive mark representing your company. Make sure to choose the right class for your brand among the 45 classes under Nice Classification. Classes from 1-34 are for goods, and classes from 35-45 are for service. Step 2: Filing Trademark Application After making a suitable search on the portal, make sure that your chosen brand name or logo is not listed or registered in the Trademark Registry India; you can further opt for registering the mark. The first step is filing a trademark application at the Trademark Registry India. When trademark registration online is done, an application receipt is issued immediately for future reference. Step 3: Examination The next step is the examination of trademark applications by the examiner for any discrepancy. The examiner may accept the trademark absolutely, conditionally or object. It might take around 12-18 months. If the application is unconditionally accepted, the trademark will get published in the Trademark Journal. If in case it is not accepted unconditionally, the required conditions or objections have to be fulfilled, and one month time shall be allotted to fulfil the conditions or objections. The trademark shall be published in the Trademark Journal if such a response is accepted. If, in case, the answer is not received, one can request a hearing. If the examiner feels that the trademark shall be allowed registration in the hearing, it proceeds for publication in the Trademark Journal. Step 4: Publication Notice of publication is good news for the applicant. It means the applicant is one step closer to the trademark registration. Under this step, the public will have the opportunity to challenge the pending trademark registration. The trademark proceeds for registration if there is no opposition after 3-4 months from publication. In case of resistance, there is a fair hearing, and Registrar gives a decision. Step 5: Registration certificate After the trademark application, the particular brand is published in Trademark Journal, and a registration certificate is issued under the seal of the Trademark Office. Step 6: Renewal Once the trademark gets registered, the same is valid for ten years. The applicant can renew the registration after every ten years from the expiry of the brand. Benefits of trademark registration in India There are various benefits offered by registering the product, which are as follows: 1. Legal Protection 2. Brand recognition 3. Product differentiation 4. Business valuation and goodwill 5. Creation of an asset 6. Business expansion Parameters to keep in mind regarding Online Trademark Registration 1. A trademark brings ample benefits to the company. It is considered an intangible asset that can be franchised, traded and commercially contracted. 2. The owner of a registered trademark can have the right to sue or file a case against any third party that uses their trademark without the prior permission of the owner of the brand. 3. Though the trademark registration is voluntary, if it is registered, it benefits the owner in terms of all legal matters. It proves that the particular brand belongs to that person. 4. A registered trademark has ten years of validity. After that, the applicant may initiate the renewal process before the expiry of the registered trademark. The brand will remove the trademark if one fails to do so, Trademark registration services in Delhi provide potential clients with the best benefits of trademark at a reasonable cost since it is a hub of various services. It is recommended to hire a consultant for trademark registration to prevent any objections from the department. The symbols ™ (the trademark symbol) and ® (the registered trademark symbol) is used to indicate trademarks; the initial is used in connection with an unregistered mark. TM denotes that you are claiming a right to use your brand as a trademark, although it may not yet be registered with the relevant IP office, while the latter is for use by the registered owner. This indicates that you have the legal right to use the name, symbol, or another identifier for the products or services for which you are using it. R sign establishes your trademark's legal ownership. The brand registration process in India has gained utmost importance. Trademark often seems unnecessary and is therefore neglected. But most people are unaware of the benefits of registering their business in trademark. The brand name registration process is quite simple and easy. One can realize this in the form of phrases, symbols or marks. For a more successful business, registering your brand is a key factor, and at the same time, it will unlock a range of benefits. As mentioned above, it is clear how important it is to register your mark to prevent any infringement. It is a simple process and does require much effort. Hence, take steps in protecting your brand and understand the power of your brand name registration. Source: https://www.manishanilgupta.com/blog-details/trademark-and-brand-registration Nowadays, as registered taxpayers, our inbox is flooded with several GST reminders. Likewise, we often missed out on an important notice for any other taxpayer. But, is it only a notice which is crucial? Are you missing out on a "summon"? How to handle the same? Before we jump into it, let's know more about it.
What is a summon? A summon, in simple words, is an order to appear or mark your presence before a judge or a magistrate for any enquiry or against wrongdoing which could be civil, criminal or both. It is also known as CAN in a few parts of the world, i.e. Court Attendance Notice. In legal terms, a summons is also known as a citation, requiring an under-mentioned person to be present at a notified place, at the advised time and for the announced purpose. Broadly there are four types of summoning listed below;
The summons issued under the GST ACT is a type of Administrative summon. As per the case, the officer in charge can call any registered person to appear before and produce evidence or document. How summon is different from a notice? All summons are notices, but all notices are not summoned. As discussed above, a summon is an official call upon or invitation to mark your presence at the court or before an officer. However, notice is general information from the court/authority. Notice may or may not result in a summon. As per GST ACT, a summon shall be deemed to be a "legal proceeding" under provisions of section 193 and the section 228 of the Indian Penal Code (45 of 1860). On the contrary, the same doesn't apply to the notice. Power to summon under the CGST ACT 2017. Section 70 of the C.G.S.T. Act, 2017: Power to summon assessee to give any evidence and in order to produce documents. 1: The proper officer under CGST Act shall have the power to summon any person whose presence he requires necessary to provide an evidence or produce a document or any other thing in any inquiry in the same ways, as provided in the case of a civil court procedure under the provisions of the Code of Civil Procedure, 1908 (5 of 1908). 2: The inquiry referred to in sub-section (1) shall be considered to be a "Legal proceeding" under the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860). When can I expect a summon? Under Sec 70 of C.G.S.T. Act, summon can be issued when a taxpayer is undergoing any inquiry proceedings. Wherein inquiry could be initiated on non-satisfaction of any ground related to compliance, a requirement of law or the notice issued. As per the latest judgment in the case of G.K. Trading Company Vs Union Of India And 4 Others (Allahabad High Court) wherein it was held that G.S.T. authorities are allowed to initiate inquiry proceedings under Section 70 of C.G.S.T. Act, 2017 combinedly with the proceedings under section 6(2)(b) as the prohibition of Section 6(2)(b) of the C.G.S.T. Act shall come into play only when any proceeding on the same subject-matter has already been initiated by a proper officer under the U.P.G.S.T. Act and therefore, an adequate officer under the U.P.G.S.T. Act or the C.G.S.T. The Act may invoke the power under Section 70 in any inquiry. Therefore, by the above judgment, it's pretty clear that you can expect a summon collaterally with the other proceedings under the Act, be it an investigation, search, seizure either to give any evidence or produce a document or anything. Below are the few listed matters on which inquiry could be initiated if considered necessary by the proper officer;
Features a taxpayer should know about a summon.
Who could be G.S.T. summon consultant? A practising Chartered Accountant, an Advocate, Cost and Management Accountant or any other professional possessing such knowledge and experience as would be considered sufficient to handle the complexity of the case. Procedure for replying GST summon? Any taxpayer who receives the summon shall first consult a GST summon consultant. Who, could be a legal practitioner, be it a Chartered Accountant in practice or an Advocate, to know the reason and justification behind such summon? (As per law, the power to call can be exercised only when there is a need for the appearance of the assessee) A taxpayer should be mindful that summons is a legal proceeding, which cannot be ignored. Once the taxpayer and the practitioner are satisfied with the justification and purpose of the summon, the taxpayer shall block his calendar for the notified date. The taxpayer shall state the facts and figures to the practitioner to accumulate and produce objective evidence and statements before the authority. Before the call upon date, he shall be handful with all the required evidence, documents and statements before the authority. Under the rigorous inquiry from the authority, the taxpayer shall not testify and sign any documents before reading and understanding the same. Penalty for non - compliance of GST summon? All persons to whom summons are issued shall be bound to attend, either in person or by an authorized agent, if the taxpayer is not a natural person. If a taxable person does not act upon before the officer of central tax, when issued with a summon for appearance to provide the evidence or produce a document in an inquiry, is liable to pay the penalty under section 122 (3) of the C.G.S.T. Act,2017, i.e., Rs.25000. How to deal with GST summon?
Disclaimer: This content is purely for knowledge and educational purposes. It contains only general information and references to legal content. It is not legal advice, and should not be treated as such. Source: https://www.manishanilgupta.com/blog-details/how-to-handle-gst-summon The Income Tax Department has recently introduced the new Annual Information Statement (AIS) on the Compliance Portal, which furnishes comprehensive information to a taxpayer for a particular financial year. It includes information about taxpayers’ incomes, financial transactions, tax details, Income Tax proceedings, etc. It also accepts feedback from the assessees on the information shown in the AIS.
AIS displays both reported value (value reported by the reporting entities) as well as modified value (i.e., the value after considering the assessee’s feedback) for each kind of information, i.e., SFT, TDS, etc. Objectives of the AIS The objectives of introducing the AIS are:
Salient characteristics of the AIS The characteristics of the AIS are:
The information displayed in the AIS In the AIS, the information is displayed in Part A and Part B. PART A It shows general information such as PAN, name, Aadhaar number, date of birth/incorporation/formation, contact details of the assessee, etc. PARTB
For example, for interest earned on the savings bank account - account number, account type, source code, account status, the aggregate amount of interest from the savings account from the said source is shown. Procedure to check the AIS The steps to check the AIS online are as follows: Step 1: Log in at the Income Tax e-filing website at https://www.incometax.gov.in. Step 2: After login, go to Services > Annual Information Statement (AIS). Step 3: Click on the ‘Proceed’ button. Step 4: It will take you to the compliance portal. You can view the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) on the AIS home page. Step 5: You can download the AIS and TIS by clicking on the download icon in the respective tiles. The AIS can be downloaded in PDF or JSON formats, whereas the TIS can be downloaded in PDF format. If you download the PDF file, it will be password protected. To unlock it, enter the password as a combination of PAN (in upper case) and date of birth in case of an individual assessee or date of incorporation/formation in case of a non-individual assessee in the format DDMMYYYY without any space. For example, if an assessee has PAN, AAAAA9876Z and the date of birth is 31stMarch 1985, his password will be AAAAA9876Z31031985. Procedure for submitting online feedback on AIS Information The steps to submit online feedback on the AIS informationare as follows: Step 1: Log in at the Income Tax e-filing portal and access the Annual Information Statement. Step 2: On accessing the AIS, the assessee will find the complete information for the chosen financial year under Part B of the statement in the following sections:
Step 3: Click on the appropriate tab to see the information source-wise. Step 4: An assessee can expand the source-wise information by clicking on the left-hand icon to see transaction-wise information. Step 5: Choose the “Optional” tab in the feedback column to provide feedback on the concerned transaction. An assessee can also give feedback on multiple transactions in bulk. An assessee can select the following types of feedback:
Once the feedback is submitted, the information will reflect the modified figure in the bracket. The revised value will be used to update the derived value in the Taxpayers Information Summary (TIS). The derived value in the TIS is then used to prefill the ITR form of the assessee. The assessee can download the acknowledgement receipt from the activity history. What is to be done if there is an error in the AIS or Form 26AS? The AIS will include information currently available with the Income Tax department. According to the Income Tax Law, certain entities are liable to report high-value transactions to the department. The information in AIS will be shown only after the reporting entities furnish information to the department. There may be possibilities that the data of a particular period is not updated. Therefore, the assessees should check all the related information and report complete and accurate information in the return of income. The assessees may also follow the feedback mechanism to report mistakes in the AIS. Which form should an assessee refer to when filing the ITR? In case of deviation between the TDS or TCS information or the details of tax paid as shown in Form 26AS vs AIS, the taxpayer may rely on the information displayed in Form 26AS for filing the return. However, if the assessee has already filed his return of income and has found additional information in the AIS, he can revise it on the basis of the information shown in the AIS. This will facilitate voluntary compliance and reduce underreporting of income by the assessees. Difference between AIS and Form 26AS Presently, Form 26AS mainly depicts details of high-value transactions and TDS/TCS transactions undertaken during the financial year. Annual Information Statement is a way more detailed statement. It contains details of foreign remittances, purchase and sale transactions of securities/immovable properties, interest on deposits, savings account interest, etc. All the information is available in both aggregate form and transaction wise. For example, if the taxpayer has earned savings account interest of Rs. 1,400 and interest on deposits of Rs. 35,000 from ABC bank during a particular financial year, Form 26AS will only show details of deposit interest of Rs. 35,000, on which TDS is deducted. On the other hand, the annual information statement will display the details of both transactions. In addition, the assessee can also see the details of the bank account from where the income was received, such as bank account number, bank name, account type, etc. Similarly, it will show all other financial information of the previous year, like rent received, dividends, salary, etc. AIS covers SFT information, payment of taxes, TDS/TCS transactions, demand or refund, and other information. But, if the assessee has to check turnover, based on the details furnished in Form GSTR-3B, it is visible only in Form 26AS. AIS does not display GST details. Hence, the Annual Information Statement (AIS) is an extensive view of information for an assessee displayed in Form 26AS with an additional facility to accept feedback from the assessees on the information displayed in AIS. Source:https://www.manishanilgupta.com/blog-details/annual-information-statement-extended-version-of-from-26as As you know, Cryptocurrency has dominated almost every country, including India itself. You may be shocked to know that India is now the country with the highest number of people dealing in Cryptocurrency, surpassing the USA, Russia & many other countries.
Cryptocurrency is based on Blockchain technology, and hence no information is available until & unless self-declared. Now, what is the Blockchain? A blockchain is a decentralized ledger accessed among the nodes of a computer network. Similar to the database, a blockchain stores information digitally. Blockchains play a crucial role in cryptocurrency systems, such as Bitcoin, to maintain a secure and decentralized record of transactions. You can refer to our previous blog, "Blockchain- Beyond Cryptocurrency", for more explanation. But this blog is all about valuable insights on the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. Overall Landscape The government has decided to list Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for presentation in the Lok Sabha in the winter session. The Bill was previously presented in the budget session as well but could not be introduced as the government decided to redraft it. The government has no plans to boost the cryptocurrency sector in India; Finance Minister stated it in the Lok Sabha recently. A Bill on Cryptocurrency and Regulation of Official Digital Currency is expected to be present during the seventh session of the Lok Sabha. Presumably, the government plans to ban all private cryptocurrencies, with certain exceptions. The new Cryptocurrency bill is set to empower regulators and government agencies, including the Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI), and the tax department, to scrutinize Know Your Customer (KYC) data of investors that crypto exchanges have collected from clients. According to rumours, the new regulations would mandate cryptocurrency exchanges to share their KYC data, which mainly includes details of their investors, with the government. The new cryptocurrency framework would also establish a uniform KYC process that every exchange must adhere to. As things stand today, different cryptocurrency exchanges have different KYC processes. The first control of Cryptoassets will remain with the existing crypto platforms, regulated by India's Securities and Exchange Board (SEBI). A cut-off date will be issued for those holding crypto assets to declare and bring under the crypto exchange platforms the SEBI will regulate. Reserve Bank of India's proposed virtual currency has not been clubbed with the new crypto legislation. However, the central bank will regulate issues related to Cryptocurrency. Some details by Finance Minister itself Finance minister Nirmala Sitharaman stated on 30.11.2021, i.e. Tuesday, "The government plans to table a redrafted bill on cryptocurrency in the winter session of Parliament after the approval of Cabinet, and notified the Rajya Sabha that income earned from investing in cryptocurrencies is taxable". She added, The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 seeks to form a framework for designing the official digital currency to be issued by the Reserve Bank of India (RBI). According to the words on the street, it aims to ban all private cryptocurrencies while promoting the underdog technology of Cryptocurrency and its benefits for certain exceptions (not defined till so far). The income earned by crypto and other related services providing platforms is liable to tax under Business or Profession Head under Chapter-IV of the Income-tax Act, 1961. She added that the applicability of the tax rate would depend on the status and category of the taxpayer. On another query, whether the government has conducted any study for regulating Cryptocurrency, Finance Minister said that a study was performed by the government through a research organization on 'Virtual Currencies: An Analysis of the Legal Framework and Recommendations for Regulation' in July 2017. After that, the government constituted an Interministerial Committee (IMC) on 2nd November 2017 under the Chairmanship of Secretary (Economic Affairs) to study the issues related to Virtual Currencies and propose specific action to be taken in this matter. For regulation of cryptocurrencies, she further clarified that the question of monitoring or regulating cryptocurrency transactions, if any, is consequent to the passage of the Bill in Parliament." What are we going to witness new? In 2019, the Bill was named 'A Blanket Ban'; The 'Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019' stated that no one should mine, generate, hold, sell, or deal in issue, transfer, dispose of or use Cryptocurrency. Fast-forwarding to 2021, a number of things have changed. The Bill is now called 'Cryptocurrency and Regulation of Official Digital Currency Bill, 2021', which was first presented for the Budget session but was deferred for more comprehensive consultations. Since its inception, the industry has witnessed exponential growth with greater participation. The government also consulted crypto associations, exchanges and other experts to decide on the way forward, fueling optimism among stakeholders. Reportedly, there will be some government's own recognized platform on which crypto trading will be done. So, there may be a chance for a new regulatory body or cryptocurrencies to be brought under the Reserve Bank of India (RBI). Also, since crypto involves cross-border transactions, a Securities and Exchange Board of India (SEBI)-like body will be required to monitor trades. Talking about taxation, the government plans to bring investments in Cryptocurrency by Indian citizens on domestic & international platforms under the ambit of Income Tax instead of a straight outright ban. There are currently no specific guidelines under Income Tax Act, 1961. But it's more probable that a high rate will be used to slow down the rush that Indian crypto exchanges have witnessed over the past two years. A glimpse: How the other countries regulated the Cryptocurrency 1: United Kingdom: All the businesses engaged in Cryptocurrency related activities in the UK have to register with the UK's Financial Conduct Authority (FCA). Crypto-businesses are required to apply for the 'Authorized Payment Institutions' license. BCB Payments Limited was the first crypto asset company to get this license in the UK. Under UK law, all crypto-asset businesses must comply with Anti-Money Laundering (AML) & Combating the Financing of Terrorism (CFT). Bitcoins are recognized as property under UK law. 2: Singapore: Trading in cryptocurrencies is legal and regulated by the Monetary Authority of Singapore under Singapore's Payment Services Act, 2020. Crypto-Asset businesses must obtain a license to operate on the cryptocurrency platform. Public issues of digital coins are also regulated under Singapore's Securities and Futures Act, 2001. One of India's largest cryptocurrency exchanges, CoinDCX, migrated its holding to Singapore. The startup has till now raised over INR 100 crores from global investors. 3: Indonesia: It initially banned Cryptocurrency but then legalized it. Previously in January 2018, Indonesia banned all parties involved in digital currency transactions. However, in 2019, Indonesia published regulations to regulate the trading of cryptocurrencies as a commodity under its Commodity Futures Trading Regulatory Agency(CFTRA). Any entity dealing in Cryptocurrency as commodity futures must comply with AML/CFT norms. The entities must also report to the Indonesian Financial Transaction Reports and Analysis Center. 4: Canada:1 In 2018, Canada issued a notice clarifying that securities law compliances will apply to crypto-businesses offering coins or tokens. In January 2020, another statement explained the situations where securities law would apply to platforms facilitating trading of Cryptocurrency. From June 2020, Canada's money laundering law requires all entities dealing in digital currency to register under the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and implement the applicable AML/CFT measures. Thus, all the above countries that have introduced laws to regulate cryptocurrency trading have taken good care of fraud and money laundering activities; they have subjected cryptocurrency businesses to the respective AML/CFT measures. India can also follow a similar approach to this. All in all, India is yet to witness the upcoming regulations for Crypto Bill. Some information is already on the street, along with some rumours. We currently don't know which cryptos will get banned and declared official. This step is taken to protect our Real Currency, i.e. Rupees, so its value remains in the global market for foreign exchange. As we know, there's no actual business behind Cryptocurrency; people are just trading money for money. Banning Cryptocurrency at a single go could significantly impact the economy in terms of capital loss. The government has taken such a right decision for making it legalized. Source:https://www.manishanilgupta.com/blog-details/the-crypto-bill-2021-a-reality-or-illusion |