Monday, July 28, 2014

New 3CA 3CB 3CD (Audit Report format) Notified applicable wef 25.07.2014


CBDT has notified the new format for Tax audit report on form 3CA 3CB 3CD  under section 44AB of Income Tax Act 1961.The New format is applicable from 25.07.2014.The Notification 33 dated 25.07.2014 is given as under for your ready reference.


GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi, the 25th July, 2014
NOTIFICATION  INCOME-TAX

S.O. 1902 (E) In exercise of the powers conferred by section 295 read with section 44AB 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. (1) These rules may be called the Income-tax ( 7th Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in Appendix-II, for Form No. 3CA, Form No. 3CB and Form No. 3CD, the following forms shall be substituted, namely:-


[F.No.133/1/2014-TPL] (J Saravanan) Under Secretary (TPL) Note: The principal rules were published in the Gazette of India vide number S.O. 969(E), dated the 26th March, 1962 and last amended by number S.O. 1418, dated the 30/05/2014. 

PROCEDURE TO OBTAINING DIN (Director Identification Number)


Section and Rule Number(s) 

E Form DIR-3 is required to be filed pursuant to Section 153 of the Companies Act, 2014 & Rule 9(1) of the Companies (Appointment and Qualification Of Directors) Rules, 2014 which are reproduced for your reference. 

Section 153: 

Every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number to the Central Government in such form and manner and along with such fees as may be prescribed. 

Rule 9(1): 

Every individual, who is to be appointed as director of a company shall make an application electronically in Form No. DIR-3, to the Central Government for the allotment of a Director Identification Number (DIN) along with such fees as provided in the Companies (Registration Offices and Fees) Rules, 2014.

Purpose of the e-form 

Any person intending to become the director in a company is required to make an application to MCA for allotment of a unique identification, namely, Director Identification Number (DIN) through this e-Form.
  1. Any person intending to apply for DIN shall have to make an application in e-Form DIR-3 and should follow the following procedure:
    1. Download Form- DIR-3 from MCA Portal by given link. 
    2. http://www.mca.gov.in/MinistryV2/Download_eForm_choose.html
    3. Fill the given Particulars in e-form.
    4. Attach the photograph (JPEG).
    5. Attach scanned copy of supporting documents (Proof of Identity, Proof of Residence of Applicant and DIR-4): List Attached Below 
    6. Physical documents are not required to submit at DIN cell.
    7. The e-Form shall have to be digitally signed and shall be uploaded on MCA21 portal.
    8. Form DIR-3 is mandatorily to be signed by an Applicant and a practicing professional or secretary (who is a member of ICSI) in whole time employment or the Director of the existing company.
    9.  The applicant is required to get himself/herself registered on the MCA21 Portal to obtain login id, which is necessary for payment of the fees or the Professional is required to get himself/herself registered on the MCA21 Portal to obtain login id, which is necessary for payment of the fees 
    10. After obtaining the login-id, Login to the MCA21 portal and click on 'e-Form upload' link available under the 'e-Forms' tab for uploading the e-Form DIR-3.
    11. Upon upload, pay the fees for e-Form DIR-3.
    12. Only electronic payment of the fees shall be allowed (I.e. Net banking / Credit Card). No challan payment will be accepted under revised procedure of DIN allotment.
    13. e-Form DIR-3 will be processed only after the DIN application fee is paid.
    14. Approved DIN shall be generated in case the form is being signed by a practicing professional and details have not been identified as potential duplicate. Provisional DIN shall be generated in case form is signed by secretary in whole time employment or Director of existing company and details have been found as potential duplicate. A suitable informational message and an email shall be provided to the user that the DIN shall be approved after due verification by the DIN cell.

Processing of e Form DIR-3.

In case, DIR-3 gets certified by the professional (i.e. CA (in whole time practice)/ CS (in whole time practice)/ CWA (in whole time practice)/, the DIN will be approved by the system immediately online (in case it is not potential duplicate).

Post-approval changes in particulars of Form DIR-3.

If there is any change in the particulars submitted in e-form DIR-3, applicant can submit e-form DIR-6 online. For instance in the event of change of address of a director, he/ she is required to intimate this change by submitting e-form DIR-6 along with the required attested documents.

 FAQ’s

1. Why to get e-form DIR-3 attested from Professional?
Answer:
  • · If eForm is digitally signed by a Chartered Accountant (CA) or Cost Accountant (CWA) or Company Secretary (CS) (in whole time practice) then the supporting documents attached shall be self-attested by the applicant. 
  • · If eForm is digitally signed by secretary (who is member of ICSI), in whole time employment or director of existing company then the supporting documents attached shall be either self-attested by the applicant or duly attested by either Public Notary or a Gazette Officer of a Government. {The attesting authority must indicate the following while attesting the documents:- (i) Signatures; (ii)Name in full in Capitals; (iii) Registration No.; and (iv) Seal/ Stamp. }
  • · In case, the director/ designated partner is residing outside India, then the attached supporting documents should be attested by the Consulate of the Indian Embassy, Foreign public notary. In case of director, supporting documents can also be attested by Company secretary in full time employment /CEO / Managing director of the Indian company in which he / she proposed to be a director. 

2. List of Mandatory Attached Documents: 
The following are the mandatory attachments to be filed in all cases:
A. Proof of Identity of Applicant
·         In case of Indian nationals, Income-tax PAN is a mandatory requirement for proof of identity.
·         In case of foreign nationals, passport is a mandatory requirement for proof of identity.
·         Proof of identify enclosed with e-Form DIR-3 should also contain the date of birth of the applicant and the same should match the date of birth filled in the application form. In case the proof of identify does not indicate the Date of Birth then additional proof of Date of Birth, duly certified/ attested, should be attached.

B. Proof of residence of applicant
·         Address proofs like: Passport, Election (Voter Identity) Card, and Ration Card, Driving License, Electricity Bill, Telephone Bill or Aadhar shall be attached and should be in the name of applicant only.
·         In case of Indian applicant, documents should not be older than 2 months from the date of filing of the e-Form.
·         In case of foreign applicant, address proof should not be older than 1 year from the date of filing of the e-Form

C. Copy of verification by the applicant as per e-Form No. DIR-4- DIR-4 shall contain the Name, Father’s name, date of birth and text of declaration and physical signature of the applicant)

In case of proofs which are in languages other than Hindi / English, the proofs should be translated in Hindi / English from professional translator carrying his details (name, signature, address) and seal. In the case of foreign nationals, translation done by the notary of home country is also acceptable.
Any other information can be provided as an optional attachment(s).


3. Ground of Rejections of e-form.

Rejection Code
Description
1
Proof of identity has not been attested by an authorized person.
2
Proof of residential address has not been attested by an authorized person.
3
The supporting document for identity proof is not valid as it has not been issued by any Government Authority
4
The enclosed evidence has handwritten entries.
5
Date of Birth is not matching with the date of birth mentioned in the proof attached.
6
Applicant’s Name is not matching with the name mentioned in the proof attached.
7
Address is not matching with the address details mentioned in the proof attached
8
Applicant’s Father’s Name is not matching with the father’s name mentioned in the proof attached.
9
The submitted application is duplicate DIN application i.e. an approved DIN already exists in this name.
10
Identification number entered in application does not match with the identity proof enclosed.
11
The gender is not entered correctly in DIN form.
12
ID proof not attached with the application
13
Address proof not attached with the application.
14
Non-submission of copy of passport (for foreign nationals)
15
Passport duly appostillised not enclosed (For foreign nationals)
16
Verification by applicant is not attached
17
Verification by applicant not in prescribed format
18
Verification by applicant is not signed
19
The prefixes/ suffixes like Mr. / Ms. / Kumari / Shri / Late or Ji etc. are used in your name or your father's name field in DIN form.
20
The supporting documents attached not valid or current or has expired.

Details obtained from the Instruction Kit of DIR-3 and MCA Website (CS Divesh Goyal, ACS is a Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com) 

CS Divesh Goyal Practicing Company Secretary
+91-8130757966 csdiveshgoyal@gmail.com

Sunday, July 27, 2014

HOW TO RESET PASSWORD AT INCOME TAX INDIA E FILING WEBSITE (5 Methods)


Many person are facing problems in filing income tax return due to forget password for Income Tax India E filing website.Further many person facing problem due to non dis-closer of password by their tax advisers. But now Income Tax department has given many ways to reset the password at income tax e filing site. In this post we have explained all the tricks to reset password at Income Tax return Filing website .

As you may aware of that user id at Income Tax India website is PAN number.

Please Note that Due date to file Income Tax return for Non audit cases (like salaried person, Business Income where audit is not required) for Financial Year 2013-14 (assessment year 2014-15) is 31.07.2014

To reset password at Income Tax India E filing Site
  1. first you should click Login Link and 
  2. Then Forget Password Link.




Income TAX Department to remain open on Sunday to accept Income Tax returns


Due Date for Non tax audit cases is 31.07.2014 for financial year 2014 and only few days away. For convenience of Taxpayers Income Tax department has made special arrangement for accepting returns of income from tax payers on Sunday also in normal hours.Further Special counters shall also be open on 26th,27th,28th 30th and 31st July 2014.



Please Note that ,if your Taxable Income is more than Rs 500000 ,then E filing of Income Tax return is Mandatory for You(read more mandatory e filing of Income Tax returns )



Saturday, July 26, 2014

Changes made by Finance (No. 2) Bill, 2014 as passed by the Lok Sabha


1. Unlisted securities and units of MF transferred between 1-4-2014 and 10-7-2014 shall be deemed to be long-term capital assets, if held for more than 12 months:

It is proposed that unlisted shares and units of a mutual fund (other than Equity oriented mutual fund) shall be categorized as long-term capital assets only if they are held for more than 36 months. The existing provision requires holding them for a period of more than 12 months so as to categorize them as long-term capital assets.

So, only a security listed on stock exchange as well as units of equity oriented fund held by an assessee for more than twelve months shall be considered as 'long-term capital assets'.

The Finance Bill, 2014 as passed by the Lok Sabha has inserted a new proviso in section 2(42A) to provide that the unlisted shares and units of a Mutual Fund shall continue to be deemed to be long-term capital assets if they have been transferred during the period from April 1, 2014 to July 10, 2014 after holding them for a period of more than 12 months (instead of more than 36 months). This proviso shall be inserted w.e.f. April 1, 2015.

10 TAX RATE CHART UNDER INCOME TAX FY 2014-15 AFTER BUDGET 2014


Tax Rates
10 Tax rate charts under Income Tax for Financial year 2014-15.These rates are subject to enactment of the Finance Bill 2014. The rates are for the FY 2014-15.

  1. Income Tax rates for Individual ,HUF,BOI,AOP,Firm,Company ,Foreign company,local Authorities
  2. Minimum alternate Tax (MAT) & Alternate Minimum Tax (AMT)
  3. Securities Transaction Tax (STT)
  4. Commodities Transaction Tax (CTT)
  5. Wealth Tax
  6. Dividend earned by Indian company
  7. Dividend Distribution Tax (DDT)
  8. Special Rates For NRI
  9. Capital Gain
  10. Presumptive Taxation 

Submitted By


Archi Singh
Add- S-606, Shakti Bhawan, 2nd Floor, School Block Shakarpur, Delhi-92
Mob- 8377838861 E-mail- archi.singh503@gmail.com

PROCESS TO RAISE CAPITAL FOR UNLISTED COMPANIES UNDER NEW COMPANIES ACT


1. PROCEDURE FOR ALLOTMENT OF SHARES:

  • Call a Board meeting by issue notice of meeting. (Draft Format Attached)
  • Approve right issue including "letter of offer", which shall include right of renunciation also.(At Board Meeting). (Draft Format Attached)
  • Send offer letter to all existing members as on the date of offer.(Through registered post or speed post or through electronic mode to all the existing share -holders at least three days before the opening of the issue.) 
  • Receive acceptance/renunciations/rejection of rights from members to whom offer has been sent & also from persons in whose favour right renounced.* (Draft Format Attached)
  • Call a Board meeting by issue of notice.
  • Approve allotment by passing of Board Resolution. (Draft Resolution Attached)
  • Issue of share certificates.
  • Authorize to two directors and one more person for signature on Share Certificates. 
  • Attach list of allottees in form PAS-3: Mentioning Name, Address, occupation if any and number of securities allotted to each of the allottees and the list shall be certified by the signatory of the form pas-3.
  • Authorize a director to file E-form PAS 3(Return of Allotment) to ROC within 30 days of passing of Resolution. (Draft Resolution Attached)
  • Authorize a director to file E-form MGT 14 for issue of share certificate within 30 days of passing of Resolution.*
  • File E-form MGT 14 for issue of share (Allotment of shares & Issue of share certificate: Refer 4 below) & PAS 3(Return of Allotment) to ROC for allotment*
  • Issue share certificate*
  • Make Allotment within 60 days of receiving of Application Money; otherwise it will treat as deposits as per deposits rules.

Friday, July 25, 2014

How To e-File Income Tax Return Step By Step


What is e-Filing? 

 The process of electronically filing Income tax returns through the internet is known as e- Filing. 

e-Filing of Returns/Forms is mandatory for : 

  • Any assessee having total income of Rs 5 Lakhs and above for from AY 2013- 14 and subsequent Assessment Years. 
  • Individual/ HUF, being resident, having assets located outside India from AY 2012-13 and subsequent Assessment Years. 
  • An assessee required to furnish a report of audit specified under sections  10(23C)(iv), 10(23C)(v),10(23C)(vi) ,10(23C)(via) , 10A, 12A(1)(b), 44AB,  80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E or 115JB of the Act, shall furnish the said report of audit and the return of Income electronically from AY 2013-14 and subsequent Assessment Years. 
  • An assessee required to give a notice under Section 11(2)(a) to the  Assessing Officer from AY 2014-15 and subsequent Assessment Years. 
  • All companies. 
  • Firm (to whom provisions of section 44AB is not applicable), AOP, BOI, Artificial Juridical Person , Co-operative Society and Local Authority required to file ITR 5 from AY 2014-15 and subsequent Assessment Years. 
  •  An assessee required to furnish return u/s 139 (4B) in ITR 7. 
  • A resident who has signing authority in any account located outside India. 
  • A person who claims relief under sections 90 or 90A or deduction under section 91. 

Do and Don't Income Tax return E filing


E-Filing - Do's & Don't

Impact of Errors made while filing returns


  •  Returns can be classified as defective u/s 139 (9) and in some scenarios the return can be declared in valid / Non Est. ITD is not introducing this concept to cover certain types of errors in order to prevent future grievances 
  • Computation Errors - In electronic filing it has been noticed that most of the errors are due to data errors as filed by the assessee This includes non filling of key schedules, wrong details etc resulting in rectification requests etc which delay closure of processing 
  • Inability to pay refunds to the assessee