⚫Traffic, emissions stay below 2021 highs, powergen steady. People are spending more time at home than they were in pre-Covid times. Data as of March 23 shows 9% spike in time spent at residential locations. Workplace visits are down 15%.
⚫Retail loans set to become largest segment for Indian banking industry. Lenders depending on personal loans rather than industrial credit.
⚫The hike in FDI limit to 74% in the insurance sector is set to shorten the break-even period for the industry in India from current 8 yrs to 5 yrs.
⚫The Govt has received multiple expressions of interest from bidders for privatisation of Neelachal Ispat Nigam. The last date for bid submission was March 29.
⚫Delhi reeled under a "severe heatwave" on the day of Holi, as the temperature shot up to 40.1 degrees Celsius, making it the hottest day in March in 76 years.
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It may be too late to use a cheque for tax saving investments for claiming deduction under section 80C as funds transfer by cheque takes 2-3 days. Make payment online/NEFT/RTGS*
The deadline to invest under Sec 80C for the financial year 2020-21 is 31 March, but for some investors, it may already be over. Funds transfer via cheque can take up to three days, even transfers via net banking into ELSSschemes may have to be completed a day or so before 31 March.
If your cheque does not clear on time, then you will not get the tax benefit for this year. It is therefore advisable to invest via other methods such as Netbanking or UPI wherever possible. This is because from 1 February, units will be issued on the day when the funds are credited into the bank account of the mutual fund. The realisation of funds is applicable to all the purchase transactions or purchase of transactions via inter-switching between different schemes.
Similarly, investing in any other tax-saving option through a cheque issued in the last 2-3 days can be tricky. If for any reason the cheque is not cleared by 31 March, you will not be able to claim the tax deduction for this year.
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The Finance Bill, 2021 has received president's assent and is now Finance Act 2021.
TDS not deductible on Fee to Offshore CA Firm having no PE in India for return filing services. Case Name : Sundaram Business Vs Income Tax Officer (ITAT Chennai) Appeal Number : ITA No. 771/CHNY/2019 Date of Judgement/Order : 19/03/2021
All New Set of Guidelines, Forms & Procedures for the Registrations of Trusts/Societies for Section 12AB and Section 80G Registration under the Income Tax Act,1961.
Form-10BD Notified for Annual Return of Donations to be filed by NGO; ‘Certificate of Donation’ shall be issued to the Donor on Form-10BE.
CBDT Notification No. 19/2021 dated March-26-2021
GAAR (Clause 30C) & GST registered & unregistered entities wise Break-up of expenses (Clause 44) in Tax Audit deferred till 31.3.22. Circular 5 of 25.3.21.
ICAI has revised its publication titled “Compliances of GST in Banking Sector”. The banking industry provides a wide range of services to its customers including traditional banking services, mutual fund agency services, etc.
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Wonderful changes by Ministry of Company Affairs wef 1st April 2021 to ensure more and more transparency
Schedule III of the Companies Act 2013 contains the general instructions for preparation of Balance Sheet and Statement of Profit and Loss of a Company.
Following are the changes made in the financials/ notes to accounts on account of amendments in Schedule III brought about by MCA:
1. Now companies have to round off the figures appearing in the financial statements, hitherto it was optional. Further, the criteria for rounding off shall be based on “total income” in place of “turnover”.
2. Company shall disclose Shareholding of Promoters.
3. Current maturities of Long term borrowings shall be disclosed separately.
4. Trade Payables ageing schedule to be given.
5. Trade Receivables ageing schedule to be given.
6. Security deposits shall not be disclosed under ‘Long term loans and advances’ but disclosed under ‘Other non current assets’.
7. The company shall disclose the reason of utilization of funds for the purposes other than for which they were borrowed and shall also disclose the purposes for which the funds were utilised.
8. Company needs to disclose if the books of accounts are tallied with the quarterly or monthly returns filed with banker in cases where company has borrowed funds from banks on the basis securities of current assets, or else a separate reco statement needs to be provided.
9. The company shall provide the details of all the immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held and where such immovable property is jointly held with others, details are required to be given to the extent of the company’s share.
10. In cases where revaluation has been done in case of Property Plant and Equipment, the company shall disclose if the valuation was done by registered valuer.
11. Disclosures to be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and related parties (loans given to promoters as a % of total loans)
12. For Capital-work-in progress, ageing schedule shall be given
13. For Intangible assets under development, aging schedule to be given.
14. Disclosure of any proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition)Act, 1988 to be made.
15. Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, details to be given.
16. Disclosure of any transactions with companies struck off
17. Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period, details and reasons thereof shall be disclosed.
18. Following Ratios to be disclosed:
(a) Current Ratio,(b)Debt-Equity Ratio,(c)Debt Service Coverage Ratio, (d) Return on Equity Ratio,(e) Inventory turnover ratio,(f)Trade Receivables turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i) Net profit ratio, (j)Return on Capital employed, (k) Return on investment
(xv) Disclosure of Utilisation of Borrowed funds and share premium to be given
Explanation is required if there’s change of more than 25% as compare to preceding financial year.
19. Further disclosures shall be made where the company has received funds from any persons or entities including foreign entities to further lend or invest or provide any guarantee, security to third parties.
20. Where a scheme of arrangement has been approved, disclosure shall be made of the effect of the same on the books of accounts and any deviation from the accounting standards for the same.
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⚫The Govt issued a draft notification that proposes to offer up to 25% concession on personal motor vehicle tax while commercial vehicles will be given a concession of 15% purchased along with a certificate of vehicle scrapping.
⚫Fund mobilisation via the primary market route was the highest ever in FY21 with India Inc raising Rs 1,88,900 crore through public equity markets as compared to Rs 91,670 crore raised in FY20.
⚫To streamline its logistics business, the NHAI has constituted a subsidiary for logistics movement across the country, transferring the existing nine contracts to the arm. Future logistics projects would also be allotted to this subsidiary.
⚫According to Section 139AA in the Income Tax Act (2017), individuals have to link their PAN and Aadhaar numbers. The deadline is March 31, 2021. If they are not, PAN will be considered invalid to use.
⚫Banks have requested the Govt to foot the bill of about Rs 8,000 crore that they will have to return to the customers on account of moratorium interest, but the finance ministry seems to be not interested.
⚫The TRAI met with bankers to iron out the issues with regards to compliance with its norms on curbing the menace of unsolicited messages.
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GST Provision for QR code on Tax invoice by registered person extended by three months. Applicable from 1-7-21 instead of 1-4-21.
Ref: NN 06/2021 - Central Taxes
CBIC vide Notification No. 35 /2021-Customs (N.T.) dated March 29, 2021 has issued the ‘Bill of Entry (Forms) Amendment Regulations, 2021’ to further amend the Regulation 4(1) of the Bill of Entry (Forms) Regulations, 1976, (BE (Forms) Regulations) with regard to time limit for filing the bill of entry by the authorised person.
Chartered Accountants Association and its members has filed Petition in High Courts of Delhi, Chandigarh, Kolkata and Allahabad for not appointing Statutory Branch Auditor of Indian Bank for the FY 2020-21 to those eligible firms who were already continuing auditors of Allahabad Bank before Merger. This matter is soon going to come up in Supreme Court also.
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👉🏻Banks To Decline Auto Pay Transactions From April 1
(Banks are likely to decline auto payments from April 1 as all recurring transactions using cards and prepaid payment instruments will now require an additional factor of authentication, as per an RBI circular)
👇🏻 👇🏻 👇🏻
https://bit.ly/3meyKO8
👉🏻Procedure to Respond E-Campaign Notice of Income Tax Department
(Procedure to Respond E-Campaign Notice of Income Tax Department discussed by CA. Shivangi Mittal)
👇🏻 👇🏻 👇🏻
https://youtu.be/6WeIX3AjEW4
👉🏻Bank Branch Audit 2021 - Update on allotment of Branches
(Banks start sending mails for allotment of Branches. check your email on a regular basis, Join CA Sansaar official Telegram Channel for all Bank Audit Updates.
👇🏻 👇🏻 👇🏻
https://t.me/casaansaar
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🔰 Extension of Foreign Trade Policy, 2015-2020 till September 30, 2021
📍 The DGFT vide Notification No. 60/2015-2020, dated March 31, 2021 has issued the amendments in the existing Foreign Trade Policy, 2015-2020 ( “FTP” ), w.e.f. from March 31, 2021.
The Notification can be accessed at: http://www.a2ztaxcorp.com/extension-of-foreign-trade-policy-2015-2020-till-september-30-2021/
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🗣️ Tax Update:
Central Government extends the last date for linking of Aadhaar number with PAN from 31st March, 2021 to 30th June, 2021 in view of the difficulties arising out of the COVID-19 pandemic.
Source: https://twitter.com/IncomeTaxIndia/status/1377265588347707398?s=1001
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