CA Rohit Jaiswal: 4 September 2021 Updates

👉Date for filing application for revocation of cancellation of registration extended

https://www.gst.gov.in/newsandupdates/read/503

👉Exposure Draft of Revised AS 36, Impairment of Assets - (31-08-2021)

https://www.icai.org/post/ed-of-revised-as-36-impairment-of-assets

👉Interview with CNBC Asia, Singapore on August 26, 2021 - Shri Shaktikanta Das, Governor, Reserve Bank of India

https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1119

👉Keynote Address at the 21st FIMMDA-PDAI Annual Conference on August 31, 2021 - Shri Shaktikanta Das, Governor, Reserve Bank of India

https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1122

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🔮 Ethics of the Day🕵🏻

🏵️ FAQ : Can a Chartered Accountant in practice/Firm of Chartered Accountants post the particulars of himself/ itself on a website*

👉 Ans :Yes, the Council has approved the detailed guidelines for posting the particulars on Website by Chartered Accountants in practice and firm(s) of Chartered Accountants in practice.

🏵️ FAQ: Whether website of any Chartered Accountant can provide a link to the website of ICAI, its Regional Councils and Branches and also to the websites of Govt./Govt. Departments/Regulatory authorities and other professional bodies?

👉 Ans : Yes, it is permitted that website may provide link to the website of ICAI, its Regional Councils and Branches and also to the websites of Govt./Govt. Departments/Regulatory authorities and other professional bodies.

🏵️ FAQ: Whether the information contained in the website of the Chartered Ac countants and/or Chartered Accountants' firms can be circulated on their own or through e-mail or by any other mode or technique?

👉 Ans :Paragraphs 3.3.3 and 3.3.4 of Council Guidelines for Advertisement, 2008, appearing in Volume-II of Code of Ethics, prescribe that the Chartered Accountants and/or Chartered Accountants' firms should ensure that none of the information contained in the website be circulated on their own or through e-mail or by any other mode or technique except on a specific “pull” request. The Chartered Accountants and/or Chartered Accountants' Firms would ensure that their Websites are run *on a “pull” model and not a “push” model* of the technology to ensure that any person who wishes to locate the Chartered Accountants or Chartered Accountants' firms would only have access to the information and the information should be provided only on the basis of specific “pull” request.

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JB Mohapatra has been appointed as the chairman of the Central Board of Direct Taxes, the finance ministry said in a notification Wednesday. Mohapatra had been officiating as the chairman of the Board since June this year. Mohapatra will succeed Prakash Chandra Mody, a 1982-batch Indian revenue services officer, who retired in May.

CBDT has, on August 31, 2021, notified the rules regarding the taxation of the interest on the excess EPF contributions. According to the notification, for the purpose of calculation of taxable interest, separate accounts within the provident fund account shall be maintained during and from the financial year 2021-22. Any contributions made by an individual till March 31, 2021, will be considered non-taxable contributions. Further, from FY 2020-21, interest will be separately calculated on both these EPF accounts.

GST collections dipped around 4% to Rs 1.12 lakh crore in August, compared to Rs 1.16 lakh crore in the previous month, but policymakers and experts remained upbeat about revenues remaining strong in the coming months on account of improved economic activity.

Upcoming GST Council meeting on September 17 will focus on the extension of compensation cess as the Council may also look into duty inversion in specific sectors. States are demanding the extension of compensation cess for another five years.

RBI will conduct fine-tuning operations to manage unanticipated and one-off liquidity flows, Governor Shaktikanta Das said. As the market settles down to regular operations, the RBI will conduct fine-tuning operations from time to time, as needed, to manage unanticipated and one-off liquidity flows so that liquid conditions in the system evolves in a balanced and evenly distributed manner.

CAG Empanelment status of CA Firms For PSU Audit FY 2021-22 from below link: https://lnkd.in/gwR9HMRT.

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Notice issued under section 148 till 30th June 2021 is completely legal and valid – High Court of Chhattisgarh held in the case of Palak Khatuja vs Union of India [W.P.(T) No. 147/148/149 of 2021]

🌴 Facts and findings: Assessees-individuals preferred writ petitions challenging the notices issued under section 148 for AY 2015-16 on June 30, 2021 issued without adhering to the procedure under section 148A. The Assessees also submitted that the extension notifications would not over ride even to extend the period of operation of provisions of the old regime. The Revenue submitted that because of pandemic and lock down, lot of people could not file their return and submit the necessary papers, thus, the CBDT issued the notification for extending the application of old reassessment provisions initially up to Apr 30, 2021 which was further extended up to June 30, 2021 and therefore, the impugned notice was within the ambit of Revenue’s power and thus, completely valid and legal.

The High Court has referred to the Taxation & Others Laws (Relaxation & Amendment of Certain Provisions) Act, 2020 and observed that “the delegation to the executive with conferment of the power to the Central Government to specify the date by way of relaxation of time limit, the main purpose of the Finance Act is not defeated. The legislature has resorted to conditional legislation to give the power to executive, in what circumstances the law should become operative or when the operation should be extended would be covered by doctrine of the conditional legislation. Thus, the *High Court noted that it was for the benefit of the Assessees and to facilitate the individual to come out of woods, the time limit was extended and certain right was reserved in favour of the Revenue to maintain parity and consequently, Section 148 under the old regime was also extended and rejects to interfere in the issuance of notice under section 148.*

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🔮 Ethics of the Day🕵🏻

🏵️ FAQ : Whether a Firm of Chartered Accountants can provide facility to the client to access its documents through logging in on the Firm’s website?

👉 Ans :Paragraph 3.3.9 of the Council Guidelines for Advertisement, 2008, appearing in Volume-II of Code of Ethics permit chat rooms amongst members of the ICAI and between Firms and its clients, provided the confidentiality protocol is observed. Accordingly, *it is permissible* for the Firm of Chartered Accountants to provide document management facility to the client to get access copies of their documents on the Firm’s website vide distinct log in and password.

🏵️ FAQ: *Can a member/ Firm of Chartered Accountants print his/its vision and values behind the visiting cards*?

👉 Ans : *No*, since such printing of vision and values behind the visiting cards may result in solicitation and violation of the provisions of Clause (6) of Part-I of First Schedule to the Act.

🏵️ FAQ: Can a Chartered Accountant in practice advertise his professional attainments or services, or can he use any designation or expression other than Chartered Accountants on professional documents, visiting cards, letter heads or sign boards, etc.?

👉 Ans :No, as per Clause (7) of Part I of the First Schedule to the Act, a Chartered Accountant shall be deemed to be guilty of professional misconduct, if he advertises his professional attainments or services, or uses any designation or expressions other than chartered accountant on professional documents, visiting cards, letter heads or sign boards, unless it be a degree of a University established by law in India or recognized by the Central Government or a title indicating membership of the Institute of Chartered Accountants or of any other institution that has been recognized by the Central Government or may be recognized by the Council. However, the member in practice may advertise through a write-up setting out the services provided by him or his firm and particulars of his firm subject to such guidelines as may be issued by the Council.

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Union Budget 2021 has provided relief for Senior Citizen from filing Income Tax Return

👉The Central Board of Direct Taxes (CBDT) notified the provision regarding Furnishing of declaration and evidence of claims by senior citizens for Exemption from Income Tax Return Filing under section 194P of the Income Tax Act.

👉The CBDT inserted Rule 26D through the Income-tax (26th Amendment) Rules, 2021.

👉The declaration required to be furnished by the specified senior citizen to the specified bank under sub-clause (iii) of clause (b) of Explanation to section 194P shall be in Form No. 12BBA to be furnished in paper form duly verified.

👉On furnishing of the declaration in Form No. 12BBA, the specified bank shall, after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force.

👉The effect of the deduction allowable under Chapter VI-A shall be given based on the evidence furnished by the specified senior citizen during the previous year.

👉The declaration referred to in sub-rule (1) and evidence for claiming deduction under Chapter VI-A referred to in sub-rule (3) shall be properly maintained by the Specified Bank and shall be made available to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required.

👉The Principal Director General of Income-tax (Systems) or the Director-General of Income-tax (Systems), as the case may be, shall specify the procedure for furnishing of particulars of Form No. 12BBA referred to in sub-rule (1) and evidence referred to in sub-rule (3) by the specified banks to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required.”.

👉In the principal rules, in rule 31, in sub-rule (1), in clause (a), after the word and figures “section 192”, the words, figures and letter “and section 194P” shall be inserted.

👉In the principal rules, in rule 31A,- (i) in sub-rule (1), in clause (a), after the word and figures “section 192”, the words, figures and letter “and section 194P” shall be inserted; in clause (b), after the words, figures and letter “section 193 to 196D”, the brackets, words, figures and letter “(other than section 194P)” shall be inserted; after sub-rule (3A), the following sub-rule shall be inserted, namely:-

👉“Specified bank responsible for deduction of tax under section 194P shall furnish evidence produced by the specified senior citizen for claiming deduction under chapter VI-A to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or to any other person authorized by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as and when required,” the notification said.

👉The Board notified Form no. 12BBA which pertains to a declaration to be furnished by Specified Senior Citizen under sub-clause (iii) of clause (b) of Explanation to section 194P.

*YouTube channel* Northern Region (Jammu & Kashmir, Himachal Pradesh, Haryana, Punjab, Delhi and Chandigarh) but also outside Northern Region.

CA Rohit Jaiswal

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Saturday, 4 September 2021

4 September 2021 Updates