TAXVANI

GENERATION OF UDIN IN BULK FOR CERTIFICATES

UDIN Directorate

The Institute of Chartered Accountants of India

17th June, 2020

GENERATION OF UDIN IN BULK FOR CERTIFICATES

A provision for generating UDIN in bulk for Certificates has been incorporated in UDIN Portal. Using this facility now the members will be able to generate UDIN in bulk (uptil 300 UDINs) for various types of Certificates in one go. It can be done through uploading of excel file.

Convenor & Deputy Convenor of UDIN Directorate
Process for Bulk UDIN

Complete process of using this facility

After login, from the Menu bar, click on Bulk UDIN for Certificates. Minimum 3 certificates and Maximum 300 certificates can be generated using this procedure.
Download template file from Download Template button and open in Excel. Please note that the .xlsx file can be opened in Excel 2007 and later versions.
Select Certificate type from drop down.
Input dates in the format as per your system/computer (generally it is in mm/dd/yyyy or as 10 June 2020). Excel will format dates automatically in required format i.e dd-mm-yyyy. Do not use copy paste in this cell.
Fill in all the parameters and values.
Save the file.
Click on the upload file on the Certificate Form on UDIN Portal.
Select the file just saved now.
Portal will populate the data in the Form. Verify the data so populated.
If correct, Send and Verify OTP and Submit.
Alternatively, the option of filling the details of Type of Certificates, Dates and key fields etc. is available on the form itself.

Cost Inflation Index for FY 2020-21 is ‘301’ as notified by CBDT

Notification No. 32/2020, dated 12-06-2020

The Central Board of Direct Taxes (CBDT) notifies the Cost of Inflation Index (CII) every year. It is used to compute long-term capital gains/losses wherein the cost of acquisition/improvement is indexed with reference to the applicable CII of the relevant year. The CBDT has notified ‘301’ as CII for the Financial Year 2020-21.

CII for the Financial Year 2020-21 shall be used to compute long-term capital gains or losses on the capital assets which have been or planned to be sold during the financial Year 2020.21. The CII for the last financial year, i.e., the financial year 2019-20 was 289.

OPT-OUT option to students commencing from 29th July, 2020

The Institute of Chartered Accountants of India

[Set up by an Act of Parliament]

Post Box No.7112, ICAI BHAWAN, Indraprastha Marg

New Delhi – 110002

15th June, 2020

IMPORTANT ANNOUNCEMENT

During last few days, we have received mixed expression of opinions, views and requests from students, both relating to holding exams as per the schedule issued by The Institute of Chartered Accountants of India commencing from 29th July, 2020 or not holding exams in the prevailing COVID-19 pandemic situation.

Some students expressed concerns and anxiety on likelihood of spurt in COVID-19, availability of examination centre, students/centre in containment zone, social distancing and sanitization, availability of transport and accommodation facilities, loss of examination fee already paid and carry forward of exemption in case the student is not able to appear in the July 2020 examination. However, large number of students showed their strong desire to appear in examination as per the announced schedule.

ICAI is committed to serve even if one student wish to appear in examination scheduled from 29th July 2020, still considering the prevailing COVID-19 situation and in the interest of mitigating the anxiety and hardships of students, it has been decided to provide an OPT-OUT option to students.

The students (who have already submitted online examination application for May 2020 Examination cycle) shall be allowed to OPT-OUT and carry forward their candidature to next examination i.e. November, 2020 examination cycle. In this case, the examination fees and exemption, if any, of the particular student will automatically be shifted and carried forward to next examination i.e. November 2020 cycle and this attempt (May 2020) will be treated as cancelled / not counted. The student will be required to apply afresh for November 2020 Examination cycle at the relevant time. His / Her Examination fees will be adjusted and differential fees, if any, will only be charged (In case he/she has filled the form for May 2020 exams for one group only and in November 2020 exams cycle, he/she opts to appear in both groups, then, he/she will be required to pay the differential fees).

Remaining students who will choose not to opt out and wish to appear for the exams commencing from 29th July 2020, the Institute is making all the required and necessary arrangements for smooth conduct of May 2020 examination (commencing from 29th July, 2020) across the globe including strict adherence to the precautions / measures related to COVID–19 which cover thermal scanning, hands’ sanitization, wearing of masks, maintaining social distancing at all times, following Government guidelines, etc. for the examinees / centre functionaries during the conduct of Chartered Accountant Examination.

However, situation of pandemic will be reviewed (COVID cases, MHA guidelines, Centre and State Government directions) in first week of July 2020 and status will be intimated to students who have not opted out. Further, conduct of examinations commencing from 29th July 2020 will be strictly dependent upon the then Government’s advisories which may be issued for the area in which a particular Centre is situated and in any such eventuality, the students will be accommodated to the November 2020 examination cycle.

Furthermore, for Students seeking change of examination centre for the exams commencing from 29th July, 2020, the online facility for seeking change of examination centre (for the students who have already submitted online examination application for May 2020 Examination cycle) will be available at http://icaiexam.icai.org from 17th June 2020 (Wednesday) 11 AM Onwards to 20th June 2020 (Saturday) 11.59 PM.

Intermediate (Integrated Professional Course) [IPCE-Old Course] will be extended for one more attempt i.e. November 2020 Examination cycle.

Procedure for availing OPT–OUT facility

(a) Submit a declaration online available at https://icaiexam.icai.org from 17th June 2020 (Wednesday) 11 AM Onwards to 20th June 2020 (Saturday) 11.59 PM.

(b) On submitting the declaration, candidature of the student for May 2020 Examination Cycle will be cancelled and he/she will be shifted to next Examination Cycle.

(c) Kindly note that once option for “Opt out” is taken, it will be treated as final. No request for its change will be entertained under any circumstances.

The candidates are are advised to note the above and stay in touch with the website of the Institute, www.icai.org.

(S. K. Garg)

Additional Secretary (Exams)

CBDT notifies new Form 26AS; widen its scope to include info. received under DTAA/TIEA

The CBDT has notified new Rule 114-I which prescribes uploading of annual information statement in Form 26AS in the registered account of assessee. A new Form 26AS has been notified for reporting of information related to TDS/TCS, specified financial statements, payment of taxes, demand & refund, pending & completed proceedings & any info. in relation to sub-rule(2) of 114-I which includes info. received under agreement referred to in section 90 or 90A

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

NOTIFICATIONS

New Delhi, 28th May, 2020

INCOME TAX

G.S.R. 329(E).—In exercise of the powers conferred by section 285BB read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. Short title and commencement.-(1) These rules may be called the Income-tax (11th Amendment) Rules, 2020.

(2) They shall come into force with effect from the 1st day of June, 2020.

2. In the Income-tax Rules, 1962 –

(I) rule 31AB shall be omitted;

(II) after rule 114H, the following rule shall be inserted, namely:-

“Annual Information Statement

114-I. (1) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorised by him shall, under section 285BB of the Income-tax Act,1961, upload in the registered account of the assessee an annual information statement in Form No. 26AS containing the information specified in column (2) of the table below, which is in his possession within three months from the end of the month in which the information is received by him:─

TABLE

Sl. No Nature of information

(1) (2)

(i) Information relating to tax deducted or collected at source

(ii) Information relating to specified financial transaction

(iii) Information relating to payment of taxes

(iv) Information relating to demand and refund

(v) Information relating to pending proceedings

(vi) Information relating to completed proceedings

(2) The Board may also authorise the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorised by him to upload the information received from any officer, authority or body performing any function under any law or the information received under an agreement referred to in section 90 or section 90A of the Income-tax Act,1961 or the information received from any other person to the extent as it may deem fit in the interest of the revenue in the annual information statement referred to in sub-rule (1).

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of uploading of annual information statement referred to in sub-rule (1).”

(III) in Appendix II, Form 26AS shall be substituted by the following Form, namely:-

Form 26AS Annual Information Statement Financial Year: XXXX-XX [See rule 114-I ] Assessment Year: XXXX-XX

Part A

Permanent Account Number: Aadhaar Number:

Name :

Date of Birth/Incorporation:

Mobile No. :

Email Address :

Address:

Part B

Sl. No Nature of information

1. Information relating to tax deducted or collected at source

2. Information relating to specified financial transaction

3. Information relating to payment of taxes

4. Information relating to demand and refund

5. Information relating to pending proceedings

6. Information relating to completed proceedings

7. Any other information in relation to sub-rule (2) of rule 114-I

[Notification No. 30/2020/F. No. 370142/20/2020-TPL]

ANKUR GOYAL, Under Secy

FM launches facility of Instant PAN through Aadhaar based e-KYC

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 28th May, 2020

PRESS RELEASE

FM launches facility of Instant PAN through Aadhaar based e-KYC

In line with the announcement made in the Union Budget, Hon’ble Union Finance Minister Smt. Nirmala Sitharaman formally launched the facility for instant allotment of PAN (on near to real time basis) today on 28th May, 2020. This facility is now available for those PAN applicants who possess a valid Aadhaar number and have a mobile number registered with Aadhaar. The allotment process is paperless and an electronic PAN (e-PAN) is issued to the applicants free of cost.

It may be recalled that in the Union Budget, 2020, the Hon’ble FM had announced to launch instant PAN facility shortly. In para 129 of the Budget Speech, the FM had stated, “In the last Budget, I had introduced the interchangeability of PAN and Aadhaar for which necessary rules were already notified. In order to further ease the process of allotment of PAN, soon we will launch a system under which PAN shall be instantly allotted online on the basis of Aadhaar without any requirement for filling up of detailed application form.”

The facility of instant PAN through Aadhaar based e-KYC has been launched formally by the Hon’ble FM today, however its ‘Beta version’ on trial basis was started on 12th Feb 2020 on the e-filing website of Income Tax Department. Since then onwards 6,77,680 instant PANs have been allotted with a turnaround time of about 10 minutes, till 25th May 2020.

It may also be noted that as on 25.05.2020, a total of 50.52 crore PANs have been allotted to the taxpayers, out of which, around 49.39 crore are allotted to the individuals and more than 32.17crore are seeded with Aadhaar so far.

The process of applying for instant PAN is very simple. The instant PAN applicant is required to access the e-filing website of the Income Tax Department to provide her/his valid Aadhaar number and then submit the OTP received on her/his Aadhaar registered mobile number. On successful completion of this process, a 15- digit acknowledgment number is generated. If required, the applicant can check the status of the request anytime by providing her/his valid Aadhaar number and on successful allotment, can download the e-PAN. The e-PAN is also sent to the applicant on her/his email id, if it is registered with Aadhaar.

The launch of the Instant PAN facility is yet another step by the Income Tax Department towards Digital India, thereby creating further ease of compliance to the taxpayers.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

ICAI extends Time Period for Commencement of Practical Training for CA Students appearing Final Examination in Nov 2022

The Institute of Chartered Accountants of India ( ICAI ) has extended the time period for commencement of Practical Training on or before 31st May, 2020 to 31st July, 2020 for appearing in the Final examination to be held in November, 2022. This is in continuation of the announcement dated 4th April, 2020 on the above subject.

In a Communication issued by Director, Board of Studies, ICAI has said that, “In order to remove hardship caused to students who are required to commence their Practical Training on or before 31st May, 2020 to appear in November 2022 Final examinations, but are still not able to commence their Practical Training within the stipulated date mentioned above on account of extension of lock-down till 31st May, 2020 in the country due to COVID-19, the Competent Authority has decided to further relax the aforestated requirement as a one-time measure”.

The ICAI also said that, “Due to the extension of lockdown till 31st May, 2020 in the county on account of COVID-19, as a one-time measure Students are hereby allowed to commence their Practical Training on or before 31st July, 2020 and complete Orientation Course and IT Training on or before 31st October, 2020 then are allowed to appear in their Final examination to be held in November, 2022”.

Read more at: https://www.taxscan.in/icai-extends-time-period-for-commencement-of-practical-training-for-ca-students-appearing-ca/58564/

Refunds amounting to Rs. 26,242 crore issued since 1st April, 2020

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 22nd May, 2020

PRESS RELEASE

Refunds amounting to Rs. 26,242 crore issued since 1st April, 2020

Central Board of Direct Taxes (CBDT) has issued tax refunds worth Rs. 26,242 crore to 16,84,298 assessees since 1st April, 2020 to 21st May, 2020.

Income Tax refunds amounting to Rs. 14,632 crore have been issued to 15,81,906 assessees and corporate tax refunds amounting to Rs. 11,610 crore have been issued to 1,02,392 assessees during this period.

It is stated that the refund process has been further expedited and refunds are being issued at a greater pace since the Union Finance Minister Smt. Nirmala Sitharaman’s announcement made in the AatmaNirbhar Bharat Abhiyan last week. CBDT has released a sum of Rs. 2050.61 crore in the previous week ended on 16th May, i.e., between 9th to 16th May, 2020 to 37,531 income tax assessees and a sum of Rs. 867.62 crore to 2878 corporate tax assessees. During this week, i.e. between 17th to 21st May, 2020, yet another 1,22,764 income tax assessees were refunded Rs. 2672.97 crore and 33,774 corporate tax assessees including trusts, MSMEs, proprietorships, partnerships, etc. were issued refunds worth Rs. 6714.34 crore, taking the total amount refunded to Rs. 9387.31 crore in the case of 1,56,538 assessees.

(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT.

57% investors say Big-4 auditors have no credibility: IiAS survey

According to a survey by Institutional Investor Advisory Services of 63 large investors and sell-side analysts numbering 89, conducted online between April 13-21, as much as 57 per cent of each of them have found "the Big-4 audit firms having lost their credibility with investors and are therefore open to move beyond them if they were banned".

MUMBAI: In more troubles for the auditing fraternity, an investor survey has found that 57 per cent large investors and sell-side analysts do not have any faith in the Big-4 audit firms as they have lost credibility.

According to a survey by Institutional Investor Advisory Services of 63 large investors and sell-side analysts numbering 89, conducted online between April 13-21, as much as 57 per cent of each of them have found "the Big-4 audit firms having lost their credibility with investors and are therefore open to move beyond them if they were banned".

Between qualified and unqualified accounts, 73 per cent support qualified accounts because they feel that at least they got to hear auditor concerns and if they asked for lean accounts, the risk was that the auditors would be muzzled.

It can be noted that ever since Satyam Computers scandal that came out in January 2009 the audit world, especially the Big Four, have been under fire from the regulators.

While market watchdog Securities and Exchange Board had banned PwC in 2018 from auditing listed companies for two years in the Satyam scam, the Securities Appellate Tribunal quashed the ban and the Sebi challenged it.
In June 2019, the Reserve Bank barred SR Batliboi & Company, an affiliate of EY, from carrying out statutory audit of commercial banks for a year after it found several lapses in the books of Yes Bank.

In the IL&FS case, Serious Fraud Investigation Office charged Deloitte Haskins & Sells and BSR and Associates (part of the KMPG network), for their failure in not disclosing the true financial health of IL&FS Financial Services and are looking at banning them from undertaking audits after they got some reprieve from the Delhi High Court.

In the CG Power fraud, the NCLT had thrown out the report prepared by Viash Associates, terming it as unprofessional and full of ifs and buts.
On top of these, there have been frequent resignation of auditors, creating doubts on the quality of the audits that is being presented to investors and also many instances of divergent audit reports.

It can be noted that in the US, auditors cannot publish qualified results. But only 23 per cent support moving to the American model by shifting our accounting standards also move in the same direction and insist on unqualified accounts.

This is despite 77 per cent of them believing that "only unqualified accounts are true and fair" as one get to hear auditor concerns.

Meanwhile, the survey also has found that 78 per cent of the investors, who normally clamour for dividends, in the poll preferring company retaining cash and fortifying their balance sheet this year as the economy is in shambles.

Similarly, 57 per cent of them also see promoters subscribing to warrants as a sign of confidence in the company and its operations.

However, equity dilution remains a concern for investors with 46 per cent of them being uncomfortable if dilution exceeded 5 per cent without disclosure regarding how funds will be used and 30 per cent putting this threshold at 10 per cent.

A vast majority - as much as 87 percent - support dual class shares, a class of shares that doesn't find much support among investors in most other geographies.

As much as 87 per cent are less supportive of promoter rights being embedded in the articles of association and periodically being voted on, as they have a more sanguine view about rights of private equity firms being embedded in the articles of association.

Read more at:
https://economictimes.indiatimes.com/industry/services/consultancy-/-audit/57-investors-say-big-4-auditors-have-no-credibility-iias-survey/articleshow/75845083.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Electronic payments norms: CBDT relaxes norms for businesses having turnover of more than Rs 50 crore

The Central Board of Direct Taxes (CBDT) on May 20 exempted firms with more than Rs 50 crore turnover and engaged in only B2B businesses from the requirement of accepting payments only by electronic modes like RuPay or BHIM-UPI.

"It is clarified that the provisions of Section 269SU of the Act shall not be applicable to a specified person having only B2B transactions (i.e. no transaction with retail customer/consumer) if at least 95 per cent of aggregate of all amounts received during the previous year, including amount received for sales, turnover or gross receipts, are by any mode other than cash," the CBDT said in a circular.

To promote digital transactions and progress towards a less-cash economy, the government inserted a new provision, Section 269SU, in the Finance Act, 2019, requiring a person carrying on business and having sales/turnover/gross receipts from business of more than Rs 50 crore in the immediately preceding previous year to mandatorily provide facilities for accepting payments through prescribed electronic modes.

Subsequently, in December 2019, debit card powered by RuPay; Unified Payments Interface (UPI) (BHIM-UPI); and Unified Payments Interface Quick Response Code (UPI QR Code) were notified as prescribed electronic modes.

The Central Board of Direct Taxes (CBDT) said it has received representations stating that the requirement of mandatory facility for payments through the prescribed electronic modes is generally applicable in B2C (business to consumer) businesses, which directly deal with retail customers.

Moreover, since the prescribed electronic modes have a maximum payment limit per transaction or per day they are not so relevant to the B2B (business-to-business) businesses, which generally receive large payments through other electronic modes of payment such as NEFT or RTGS.

Mandating such businesses to provide the facility for accepting payments through prescribed electronic modes would cause administrative inconvenience and impose additional costs, CBDT said.

Nangia Andersen Consulting Director Shailesh Kumar said that since non instalation of such payment facility attracted a significant penalty of Rs 5,000 per day, many businesses were in doubt and were forced to install such payment facilities, even though such facilities (typically used by individual customers mostly) were never supposed to be used for such businesses, considering the nature of business or customer base.

"This is another instance that shows the government is responsive to needs and concerns of taxpayers as well as flexible to amend rules to remove genuine hardships of taxpayers," Kumar added.

Refer:https://www.moneycontrol.com/

Sum collected from students for development of school building not taxable if same was kept in separate a/c

Annual development fees collected by assessee-society from students for development of school building and purchase of capital assets and kept in separate account solely for said purpose, could not be treated as income or revenue receipt for purpose of section 11

INCOME TAX : Prior to 1-4-2015 depreciation would be allowed on assets purchased, even if expenditure incurred by assessee-society for acquisition of such assets was treated as application of income for charitable purposes

Refer:[2020] 115 taxmann.com 152 (Kolkata - Trib.)

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