CBDT Press Release - ICDS deferred by 1 year
ICDS applicability has been deferred by 1 year. Earlier it was applicable from AY 2016-17, now it will be applicable from AY 2017-18.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
PRESS RELEASE New Delhi, 6th July, 2016
Subject: Applicability of Income Computation and Disclosure Standards (ICDS) notified under section 145 (2) of the Income - tax Act, 1961.
Vide Notification No. SO 892 (E) dated 31st March, 2015, Central Government notified 10 Income Computation and Disclosure Standards (ICDS). These ICDS are applicable from 1.4.2015 i.e. previous year 2015-16 (Assessment Year 2016-17). Subsequent to notification of the ICDS, a number of representations were received which were examined by an Expert Committee. The Committee has recommended amendments to the notified ICDS and also issuance of clarification in respect of certain points raised by the stakeholders.
2. The revision of ICDS/issue of clarifications as recommended by the Committee, is under consideration. The revision of the Tax Audit Report is also being made for ensuring the compliance with the provisions of ICDS and for capturing the disclosures mandated by the ICDS.
3. Some of the tax payers might have filed their return of income and obtained Tax Audit Report without incorporating the compliance with the ICDS and related disclosures in the absence of the revised Tax Audit Report. Considering these facts, it has been decided that the ICDS shall be applicable from 1.4.2016 i.e. previous year 2016-17 (Assessment Year 2017- 18). The notification to this effect will be issued shortly. (Dr. B. K. Sinha)
Commissioner of Income Tax
(Media and Technical Policy)
Official Spokesperson, CBDT. Download the copy of Press Release
Summary of TCS on sale of motor vehicle after amendment in section 206C
Based on the many queries received from our members, we have prepared below summary on new provisions for TCS on sale of motor vehicle u/s 206C(1D) & 206C(1F).
Hope you find the same useful.
TCS on Sale of Car / other motor vehicle? Cases Total Value of Car Sold Payment by Cash Payment by Cheque Whether TCS will be applicable? Case 1 500,000 300,000 200,000 Yes, TCS will be collected @ 1% on Rs.300,000 u/s 206C(1D). Case 2 1,200,000 300,000 900,000 Yes, TCS will be collected @ 1% on Rs.1,200,000 u/s 206C(1F). Case 3 1,200,000 Nil 1,200,000 Yes, TCS will be collected @ 1% on Rs.1,200,000 u/s 206C(1F). Case 4 500,000 Nil 500,000 No, TCS is not applicable. Case 5 500,000 100,000 400,000 No, TCS is not applicable
Query 1: Whether TCS will be applicable on sale of car for Rs.500,000. Out of which Rs.300,000 is paid in cash and Rs.200,000 by cheque? Reply: Yes, TCS will be collected @ 1% on Rs.300,000 u/s 206C(1D).
Reasoning: 1. Since total sale consideration is below Rs.1,000,000 therefore section 206C(1F) is not applicable. 2. Since payment made in cash is exceeding Rs.200,000, therefore section 206C(1D) is applicable and TCS u/s 206C(1D) will be collected only on cash component i.e. Rs.300,000.
Query 2: Whether TCS will be applicable on sale of car for Rs.1,200,000. Out of which Rs.300,000 is paid in cash and Rs.900,000 by cheque? Reply: Yes, TCS will be collected @ 1% on Rs.1,200,000 u/s 206C(1F).
Reasoning: 1. Since total sale consideration is above Rs.1,000,000 therefore section 206C(1F) is applicable and TCS u/s 206C(1F) will be collected on Total sale consideration i.e. 1,200,000. Mode of payment is irrelevant u/s 206C(1F). 2. Since TCS has been collected u/s 206C(1F) therefore section 206C(1D) is not applicable.
Query 3: Whether TCS will be applicable on sale of car for Rs.1,200,000. Entire payment is made by cheque? Reply: Yes, TCS will be collected @ 1% on Rs.1,200,000 u/s 206C(1F).
Reasoning: 1. Since total sale consideration is above Rs.1,000,000 therefore section 206C(1F) is applicable and TCS u/s 206C(1F) will be collected on Total sale consideration i.e. 1,200,000. Mode of payment is irrelevant u/s 206C(1F). 2. Section 206C(1D) is not applicable in this case. Query 4: Whether TCS will be applicable on sale of car for Rs.500,000. Entire payment is made by cheque? Reply: No, TCS is not applicable. Reasoning: 1. Since total sale consideration is below Rs.1,000,000 therefore section 206C(1F) is not applicable. 2. Since
How to rectify Form 26QB online
How to rectify Form 26QB / Challan 26QB online
SECTION 194-IA OF THE INCOME-TAX ACT, 1961
PAYMENT ON TRANSFER OF CERTAIN IMMOVABLE PROPERTY OTHER THAN AGRICULTURAL LAND
CORRECTION OF STATEMENT CUM CHALLAN RELATING TO TDS ON SALE OF PROPERTY UNDER SECTION 194-IA LETTER F.NO.DIT(S)-2/FORM 26QB/100/2015, DATED 22-3-2016 Kindly refer to the above.
2. Section 194-IA of the IT Act relates to TDS on Sale of property. Form 26QB is an online statement-cum-challan to be filled and submitted by the buyer of the property for making TDS payment on sale of property. It contains details of buyer, seller, property being sold, sale consideration, tax deposit details etc. Being an internet challan, no correction can be made by the bank branches through the existing RT18 mechanism.
3. Keeping in view various representations received, SOP vide F.No.DIT(S)-2/Form 26QB/100/2015 dtd. 20-4-15 was issued for processing the requests of change in form 26QB, on case to case basis, as per defined rules, till such time that an alternative online approach was finalised. Accordingly, the office of the ADGIT(S)-2 has been processing applications requesting for correction in form 26QB.
4. Now, CPC-TDS has enabled functionality for online correction in form 26QB from 29-2-2016. Communication No. CIT/CPC-TDS/15-16 dtd. 2-3-2016 on 'Enablement of 26QB correction facility and role of TDS officers' from CPC-TDS is enclosed.
5. In view of the online functionality being made available, the SOP dated 20-4-2015 for correction in form 26QB challan is being withdrawn with immediate effect. The field formations and taxpayers may be advised to use the functionality made available by CPC- TDS.
Enablement of 26QB correction facility and role of TDS officers-Reg.
Letter F.No. CIT/CPC-TDS/20l5-16, Dated 2-3-2016
With kind reference to the above, I am directed to inform you that the functionality for correction of Form 26QB has been made available online from 29th of Feb. 2016 to the deductors/buyers. Hence, the buyer, whose PAN exists in Form 26QB,can log in to www.tdscpc.gov.in and make the correction request for the following fields.
S. No. Field which can be changed With Digital Signature Without Digital Signature 1. Buyer's PAN (When buyer's PAN AAAPA1111A is to be changed to PANBBBPB1111B) Once request is raised by Buyer with digital signature(AAAPA1111A), the same will be pushed to the Seller and the new Buyer (BBBPB1111B). As soon as both of them approve the PAN will be updated. Once request is raised by Buyer without digital signature(AAAPA1111A) the same will be pushed to Seller and the new Buyer (BBBPB1111B) for approval. As soon as both of them approve the correction, by logging into TRACES, the ticket will be sent to TDS AO for physical verification of the facts and the genuineness of the buyer. TDS AO, if satisfied, can then approve the same from his inbox. Please note whenever PAN of buyer is updated, the same may impact Major Head and category of PAN. This will be taken care of by the system itself before the request is raised. 2. Seller's PAN (When Seller's PAN is to be updated fromCCCPC1111C toDDDPD1111D) Once request is raised by Buyer with digital signature the same will be pushed to the existing Seller (CCCPC1111C) for approval. As soon as he/she approves the same, the PAN will be updated. Once request is raised by Buyer
Procedure to file TDS Return online at Income Tax Website for free
As committed by us in the previous email, today we are describing below the procedure to file your TDS Return at Income Tax Website for free.
Step 1) Go to Income Tax website http://incometaxindiaefiling.gov.in/
Step 2) Click " Register Yourself " button.
Step 3) Select " Tax Deductor and Collector" option and click continue.
Step 4) Enter your TAN click continue.
Step 5) Click on Traces link provided on the next screen.
Step 6) You will be automatically re-directed to the TRACES website.
Step 7) If your TAN is already registered on TRACES, then login into the website. OR if your TAN is not yet registered on TRACES, then first you have to register it and login the same.
Step 8) After Login into TRACES, click the link " Register with E-Filing ".
Step 9) You will redirected to E-filing TAN Registration Page.
Step 10) Fill out the complete Form and Submit..................
Click to download one time Registration Procedure.
Click to download TDS Return upload Procedure Points to remember to avoid error in the Digital signature upload :-
1) Signature file generated by ITD utility is valid only for one transaction. So a new signature file has to be generated every time for TDS return upload. 2) First of all, you have to generate digital signature file using the ITD utility tab " Register / Reset Password using DSC ". Update this file into the Profile section -> Register DSC on the ITD portal. This is one time process only.
3) Then you have to generate signature file using the ITD utility tab " Bulk Upload " and use this signature file for uploading TDS return.
4) Further, Pl note that ITD portal & ITD utility does not accept .fvu file directly, so you have to convert the same into .zip file and then upload. ZIP utility is easily available on the internet for free.
If you still face any error, please feel free to write us.
Due date for filing TDS Returns extended w.e.f.01-June-2016
This is to update you that CBDT has extended the due dates for filing TDS Return w.e.f. 01 June 2016 as below.
Existing Rule [Applicable upto 31 May 2016]
Due Date for filing TDS Return
Due Date for issuing Form 16A
Due Date for issuing Form 16
Revised Rule [ Applicable w.e.f. 01 June 2016] Quarter Ending…. Due Date for filing TDS Return Due Date for issuing Form 16A Due Date for issuing Form 16 30 June 31 July 15 Aug NA 30 September 31 October 15 Nov NA 31 December 31 January 15 Feb NA 31 March 31 May 15 June 31 May After this amendment, the due dates are same for Government Deductors as well as Non-Government Deductors.
Please note that the above change is effective from 01 June 2016. Therefore it does not have any impact on the filing of TDS return for Financial Year 2015-16 or earlier.
Click here to download CBDT Circular Issue related to issuance of Form-16 (For Salary Income):
However this amendment might create a practical difficulty in case of issuance of Form-16 (Salary Income), because now the due date for filing Q4 Salary TDS Return and due date for issuing Form-16 is same i,.e. 31 May. Therefore if return is filed in the last 3-4 days of extended due dates, then it shall not be possible for the system to process and generate the Form-16 before the due date. But as the amendment is effective from 01 June 2016, so the effect can be seen in next year only.
Online facility for filing TDS Returns to be shifted from NSDL to ITD
As you are already aware that currently, TDS returns can be filed online at NSDL website free of cost. However, w.e.f. May-2016 this facility is going to be discontinued and in lieu of the same, now users can file their TDS Returns online at Income Tax Department website itself.
Below is the copy of communication received from NSDL in this regard. Hope you find the same useful. Our team have been using this facility for last 4 years and its pretty good and free of cost as well.
Benefit of this Facility:-
1) No need to visit NSDL office every time for filing TDS Return.
2) Faster processing by Tax Department.
3) No fee is required to e-file.
Click here to read our previous article on - How to file TDS return free on NSDL?
Below is copy of communication received from NSDL in this regard. If you have any query, please feel free to post. We shall keep you updated on the same.
" Dear Online Upload user, As you are aware, currently online upload of e-TDS/TCS statement(s) and Annual Information return (AIR) facility is provided by NSDL e-Governance Infrastructure Limited (NSDL e-Gov) on behalf of Income Tax Department (ITD). We hereby inform that from May 1, 2016, the functionality of Online Upload of e-TDS/TCS statement(s) will be available on e-filing portal of ITD. You may visit e-filing portal of ITD. For queries, kindly contact e-filing Helpdesk at 1800 4250 0025 / 91 80 2650 0025. Otherwise, the users who are desirous to file e-TDS/TCS statements/AIR can file the same through our TIN-FC agents. To know the nearest TIN-FC, please visit at the TIN website at https://www.tin-nsdl.com/tin-facilities.php. Thanks and Regards Online Upload Team "
Liquidation of Companies comparison b/w old and new company act
Liquidation As per Companies act 2013 1. Company can be wind up by passing special resolution 2 company can also be wound up if it is authorized by the article on occurrence of certain events 3.where company is to be wound up it directors or majority of directors should issue an affidavit stating reflecting the solvency condition of the company 4. Such declaration shall be made within 5 weeks immediately preceding the date of the passing resolution 5.Such declaration shall accompanied with auditors reports prepared as per concerning section 6 Notice of wing up should be sent to creditors by registered pos 7 Notice of any resolution passed at meeting of creditors shall be sent to registrar of company within 10 days after passing 8 After passing resolution for winding up, advertisement should be published in gazette & also in news paper 9. If the assets of company may not able to pay off all the debts , then company can apply by disolution by tribunal 10 company in general meeting should appoint liquidator from the list prepared by CG 11 Creditors can change liquidators 12 Every rights of directors would be t/f to liquidator of company Liquidation As per Companies act 1956 1 Voluntary liquidation of company can be done by special resolution or by passing resolution if AOA of company authorise the same on occurance of some specific event 2. Within 14 days of passing resolution, company shall give advertisement in official gazette & local news paper. 3 Liquidation will begin after passing resolution 4 Majority of directors shall file an affidavit that company has no debts or company will pay debt within 3 years from date of commencement of liquidation 5. Such declaration shall be made within 5 weeks of passing resolution & shall file with registrar. 6 Such declaration shall be accompanied with auditors report I.e profit & loss A/c of the company from date of last such report upto last transaction of company 7 The company in general meeting shall appoint one or two directors & they will also fix the remuneration. Remuneration of the Liquidator cannot be increased in any circumstances 8 On the appointment of the liquidator all right of director will transfer to him. 9 Notice of appointment of directors to registrar within 10 days of appointment.Liquidator so appointed is required to call the meeting of creditors, if he thinks the assets of the company is not sufficient to pay the debt 10. If process of liquidation is continuing for more than 1 year then he is required to call general meeting. 11. As per sec 511, proceeds received from sale of assets shall be distributed on pari passu basis and on the basis interest in the company 12.Company act does not define the qualification of liquidator but it prohibits some person from being appointed as liquidator. Normally, a professional can be liquidator of the company. 15 Body corporate can not be appointed as liquidator of the company
Finance Budget 2015 Documets
Finance Budget 2015 has been presented by Finance Minister, Shri Arun Jaitley on 28-Feb-2015.
Below are the documents available for download.
1) Budget Speech by Finance Minister
2) Finance Bill, 2015
3) Memorandum explaining the Finance Bill, 2015
4) Key Highlights of Budget 2015
5) Budget analysis by ICAI
Budget 2015 change in TDS Rate on Royalty / Fees for Technical Services and section 195
Budget 2015 change in TDS Rate on Royalty / Fees for Technical Services and section 195
Amendment in section 115A -
TDS rate u/s 115A has been proposed to be reduced from 25% to 10%. Amendment in section 195 -
It is further proposed to amend the provisions of section 195 of the Act to provide that the person responsible for paying any sum, whether chargeable to tax or not, to a non-resident, not being a company, or to a foreign company, shall be required to furnish the information of the prescribed sum in such form and manner as may be prescribed. In case of non-furnishing of information or furnishing of incorrect information under sub-section (6) of section 195(6) of the Act, a penalty of Rs. 1,00,000 shall be levied. Below is the summary for your understanding.
TDS rate on foreign payments depends on two conditions. First, whether deductee provides a valid TRC or not? Second, whether deductee holds a valid PAN in India or not?
Below is the matrix showing applicable TDS rates depending on the availability of TRC & PAN. TDS RATE ON FOREIGN PAYMENTS CASE Whether TRC is available? Whether PAN is available? Treatment Possible Challenges CASE A Yes Yes Grossing Up should be done @ DTAA Rate.
TDS should be deducted @ DTAA Rate. NA CASE B No No Grossing Up should be done @ applicable IT Act Rate.
TDS should be deducted @ applicable IT Act Rate or 20%, whichever is higher. Foreign Income Tax Authority may decline to give TDS credit in excess of rate prescribed in DTAA. CASE C No Yes Grossing Up should be done @ applicable IT Act Rate.
TDS should be deducted @ applicable IT Act Rate. Foreign Income Tax Authority may decline to give TDS credit in excess of rate prescribed in DTAA. CASE D Yes No Grossing Up should be done @ DTAA Rate (Bosch Ltd. ITAT Bangalore).
TDS should be deducted @ applicable IT Act Rate or 20%, whichever is higher. Foreign Income Tax Authority may decline to give TDS credit in excess of rate prescribed in DTAA. Note IT Act Rates (as mentioned above) has to be increased by Surcharge & Education Cess. DTAA rates need not to be increased by Surcharge & Education Cess. Requirement of TRC for claiming Relief under DTAA 1) TRC became mandatory w.e.f. 01/04/12 2) Format of TRC notified w.e.f. 17/09/12 3) If TRC is not in specified format then a declaration in Form 10F is also mandatory along with the required documents w.e.f. 01/08/13. &nbs