September, 2024 | CA B K Goyal & Co LLP

Section 85 – Code of Criminal Procedure, 1973

CODE OF CRIMINAL PROCEDURE, 1973 / Shruti / September 29, 2024

Release, sale and restoration of attached property (1) If the proclaimed person appears within the time specified in the proclamation, the Court shall make an order releasing the property from the attachment. (2) If the proclaimed person does not appear within the time specified in the proclamation, the property under the attachment shall be at the disposal of the State Government; but it shall not be sold until the expiration of six months from the date of the attachment and until any claim preferred or objection made under section 84 has been disposed of under that section, unless it is subject to speedy and natural decay, or the Court considers that the sale would be for the benefit of the owner; in either of which cases the Court may cause it to be sold whenever it thinks fit. (3) If, within two years from the date of the attachment, any person whose property is or has been at the disposal of the State Government, under sub-section (2), appears voluntarily or is apprehended and brought before the Court by whose order the property was attached, or the Court to which such Court is subordinate and proves to the satisfaction of such Court that he did not abscond or conceal himself for the purpose of avoiding execution of the warrant, and that he had not such notice of the proclamation as to enable him to attend within the time specified therein, such property, or, if the same has been sold, the net proceeds of the sale, or, if part only thereof has been sold, the net proceeds of the sale and the residue of the property, shall, after satisfying therefrom all costs incurred in consequence of the attachment, be delivered to him

Section 85 – Code of Criminal Procedure, 1973 Read More »

Section 84 – Code of Criminal Procedure, 1973

CODE OF CRIMINAL PROCEDURE, 1973 / Shruti / September 29, 2024

Claims and objections to attachment (1) If any claim is preferred to, or objection made to the attachment of, any property attached under section 83, within six months from the date of such attachment, by any person other than the proclaimed person, on the ground that the claimant or objector has an interest in such property, and that such interest is not liable to attachment under section 83, the claim or objection shall be inquired into, and may be allowed or disallowed in whole or in part : Provided that any claim preferred or objection made within the period allowed by this sub-section may, in the event of the death of the claimant or objector, be continued by his legal representative. (2) Claims or objections under sub-section (1) may be preferred or made in the Court by which the order of attachment is issued, or, if the claim or objection is in respect of property attached under an order endorsed under sub-section (2) of section 83, in the Court of the Chief Judicial Magistrate of the district in which the attachment is made. (3) Every such claim or objection shall be inquired into by the Court in which it is preferred or made : Provided that, if it is preferred or made in the Court of a Chief Judicial Magistrate, he may make it over for disposal to any Magistrate subordinate to him. (4) Any person whose claim or objection has been disallowed in whole or in part by an order under sub-section (1) may, within a period of one year from the date of such order, institute a suit to establish the right which he claims in respect of the property in dispute; but subject to the result of such suit, if any, the order shall be conclusive. COMMENTS Additional protection – This section corresponds to sub-sections (6A) to (6D) of section 88 in the old Code. It may be noted that warrants of attachment issued under section 83(2) should be endorsed by the District Magistrate (who is Executive Magistrate) of the district in which the property is situated ; but the claims or objections against such attachment should be disposed of by the Chief Judicial Magistrate of that district under sub-section (2). This is an additional protection given to aggrieved person; his right of suit for the property having been also preserved under sub-section (4).

Section 84 – Code of Criminal Procedure, 1973 Read More »

Make in India initiative celebrates 10 Years of its launch

Updates / Shruti / September 29, 2024

Name of the scheme Make in India Date of launching 25th September 2014 Launched by PM Narendra Modi Government Ministry Ministry of Commerce and Industry Make in India website http://www.makeinindia.com/home/ 10 years of ‘Make in India’ Launched in 2014 to transform India into a global manufacturing hub.About Make in IndiaObjective: To facilitate investment, foster innovation, enhance skill development, protect intellectual property & build best in classmanufacturing infrastructure.It is based on four pillarsNew Processes: Recognizes ease of doing business as the most important factor to promote entrepreneurship.New Infrastructure: Provide infrastructure based on state-of-the-art technology.New Sectors: Identified 27 sectors (under Make in India 2.0) in manufacturing, infrastructure and service activities.New Mindset: Government shall act as a facilitator and not a regulatorNodal Agencies:Department for Promotion of Industry and Internal Trade- ManufacturingsectorDepartment of Commerce- Service sectorImpact of InitiativeForeign Direct Investment (FDI): Attracted FDI inflow of $667.4 billion (2014-24),an increase of 119% over the preceding decade (2004-14).Employment: Employment in the manufacturing sector increased from 57 millionin 2017-18 to 64.4 million in 2022-23.Exports: India’s merchandise exports surpassed $437 billion in FY 2023-24.Ease of Doing Business: Sharp rise from 142nd rank in 2014 to 63rd rank in 2019in the World Bank’s Doing Business Report.Sector-wise Success:Transportation: E.g. Vande Bharat Express TrainDefence Manufacturing: E.g. INS Vikrant, the country’s first domestically made aircraft carrierElectronics: Samsung started the World’s Largest Mobile Factory in NoidaMake in India initiative celebrates 10 Years of its launch‘Sustainable Food Systems and India’s Trade Agreement’ Make In India – Focus on 25 Sectors The Make in India website also has listed the 25 focus sectors and also furnished all relevant details about these sectors, and related government schemes, including the FDI policies, IPR, etc. The main sectors (27 sectors) covered under this campaign are given below: Manufacturing Sectors: Aerospace and Defence Automotive and Auto Components Pharmaceuticals and Medical Devices Bio-Technology Capital Goods Textile and Apparels Chemicals and Petro chemicals Electronics System Design and Manufacturing (ESDM) Leather & Footwear Food Processing Gems and Jewellery Shipping Railways Construction New and Renewable Energy Services Sectors: Information Technology & Information Technology enabled Services (IT &ITeS) Tourism and Hospitality Services Medical Value Travel Transport and Logistics Services Accounting and Finance Services Audio Visual Services Legal Services Communication Services Construction and Related Engineering Services Environmental Services Financial Services Education Services Why Make in India? For the past two decades, India’s growth story seems to have been led by the services sector. This approach paid off in the short-run, and India’s IT and BPO sector saw a huge leap, and India was often dubbed the ‘back office of the world’. However, even though the share of the services sector in the Indian economy rose to 57% in 2013, it contributed to only 28% in the share of employment. So, the manufacturing sector needed to be augmented to boost employment. This is because the services sector currently has low absorption potential considering the demographic dividend in the country. Another reason to launch the campaign is the poor condition of manufacturing in India. The share of manufacturing in the overall Indian economy is only about 15%. This is way lower than our neighbours in East Asia. There is an overall trade deficit when it comes to goods. The trade surplus in services hardly covers one-fifth of India’s trade deficit in goods. The services sector alone cannot hope to answer this trade deficit. Manufacturing will have to chip in. The government is hoping to encourage businesses, both Indian and foreign to invest in manufacturing in India, which will help this sector and also generate employment in both skilled and unskilled levels. To focus on manufacturing is that no other sector seems to have such a huge multiplier effect on economic growth in a country, according to various studies. The manufacturing sector has larger backward linkages and hence, growth in demand in manufacturing spurs growth in other sectors as well. This generates more jobs, investments, and innovation, and generally leads to a higher standard of living in an economy. Make in India – Initiatives For the first time, the sectors of railways, insurance, defense, and medical devices have been opened up for more Foreign Direct Investment (FDI). The maximum limit in FDI in the defense sector under the automatic route has been raised from 49% to 74%. This increase in FDI was announced by Finance Minister Nirmala Sitaraman on May 16, 2020. In construction and specified rail infrastructure projects, 100% FDI under the automatic route has been permitted. There is an Investor Facilitation Cell that assists investors from the time of their arrival in India to their departure from the country. This was created in 2014 to give services to investors in all phases such as the pre-investment phase, execution, and also after delivery services. The government has taken steps to improve India’s ‘Ease of Doing Business’ rank. India climbed 23 points in the Ease of Doing Business index to 77th place in 2019, becoming the highest-ranked in South Asia in this index. The Shram Suvidha Portal, eBiz portal, etc. have been launched. The eBiz portal offers single-window access to eleven government services connected with starting a business in India. Other permits and licenses required to start a business have also been relaxed. Reforms are being undertaken in areas like property registration, payment of taxes, getting power connection, enforcing contracts, and resolving insolvency. Other reforms include licensing process, time-bound clearances for applications of foreign investors, automation of processes for registration with the Employees State Insurance Corporation and the Employees Provident Fund Organization, adoption of best practices by states in granting clearances, decreasing the number of documents for exports, and ensuring compliance through peer evaluation, self-certification, etc. The government hopes to improve physical infrastructure chiefly through the PPP mode of investment. Ports and airports have seen increased investment. Dedicated freight corridors are also being developed. Make in India – Schemes Skill India This mission aims to skill 10 million in India annually in various sectors. For ‘Make in India’ to turn into a reality, there is a need

Make in India initiative celebrates 10 Years of its launch Read More »

Dormant Account

learn / Shruti / September 29, 2024

A dormant account is a customer’s account at a bank or other financial institution that has seen no activity, with the possible exception of interest deposits, for a long period of time. The owner may have forgotten about the account, moved out of town without leaving a forwarding address, or died. A dormant account with a very small balance may simply evaporate, reaching a zero balance due to monthly bank fees that exceed any interest paid. If not, the balance is turned over to the state, which will return it to the rightful owner upon request. Financial institutions are required to transfer the money held in dormant accounts to the state’s treasury after the accounts have been dormant for a certain period of time. The amount of time varies by state. What Is a Dormant Account? A dormant savings account refers to a bank account that has had no customer-initiated transactions or activity for an extended period, typically exceeding the period specified for an inactive account. The specific timeframe for an account to be considered dormant is 24 months When an account becomes dormant, it means that the account holder has not conducted any transactions, such as deposits, withdrawals, or other account activities, for as long as 24 months. The account remains open but is inactive and does not generate any significant activity. Banks typically have policies in place to handle dormant accounts. These policies can include charging fees, restricting account access, or even transferring the funds to a separate dormant account. The purpose of these measures is to ensure proper account management, protect the account holder’s assets, and comply with regulatory requirements. What is an Inactive Savings Account? An inactive savings account typically refers to a bank account that has had no customer-initiated transactions or activity for a time period of 12 months. When an account becomes inactive, it means that the account holder has not made any deposits, withdrawals, or other transactions within the specified time frame. Inactive accounts are essentially dormant or idle, and they do not generate any significant activity or transactions. In many cases, banks have policies in place to handle inactive accounts. They may charge certain fees or impose restrictions on the account if it remains inactive for an extended period. These fees can vary and may include monthly maintenance fees or dormant account fees, which are intended to cover the administrative costs associated with maintaining the account. Difference Between an Inactive and Dormant Bank Account Aspect Inactive Bank Account Dormant Bank Account Definition An account with no transactions for 12 months An account with no transactions for 24 months Timeframe 12 months 24 months Account Status Idle but still open and active Inactive, additional restrictions may apply Transactions No transactions, but the account can still receive funds No transactions allowed Interest and Charges Interest may still accrue, and charges may apply Interest may cease, dormant account fees may apply Reactivation Can be reactivated by performing a transaction Requires specific reactivation process or request Access to Funds Funds can be withdrawn anytime Restricted access, may require reactivation Communication Bank may send reminders or notifications Limited communication from the bank Account Type Change Account remains the same type Account type may change, e.g., from savings to current Unclaimed Funds Funds are not considered unclaimed Funds may be considered unclaimed after a certain period Fees and Charges May incur maintenance fees or dormant account fees Additional fees may apply, reactivation may have specific requirements or charges Specific Restrictions No specific restrictions beyond inactivity Limited access, frozen funds, special reactivation procedures Bank Handling May have nominal priority for maintenance Banks may take specific actions for dormant accounts What Happens to an Inactive Savings Account? Account maintenance: Inactive accounts may still be subject to maintenance fees or dormant account fees imposed by the bank. These fees are intended to cover the administrative costs associated with maintaining the account, even though it is not generating significant activity. The fees and their frequency can vary among banks. Account reactivation: If you have an inactive account and wish to reactivate it, you typically need to initiate a transaction or contact your bank directly. Making a deposit or withdrawal, or simply contacting the bank to express your intention to continue using the account, can often reactivate it. The bank will provide guidance on the specific steps required. Transfer to Dormant Status: If an account remains inactive for a longer period, typically exceeding the time specified for an inactive account, it may be designated as dormant. At this stage, the bank may impose additional restrictions or limitations on the account. These could include freezing the funds, limiting access, or requiring specific documentation or procedures to reactivate the account. Escheatment: In some cases, if an account remains dormant for an extended period, the bank may be required by law to transfer the funds to the state’s unclaimed property division. This process, known as escheatment, ensures that unclaimed funds are held by the state and made available for potential reclaim by the account owner or their heirs in the future. The specific regulations regarding escheatment can vary by jurisdiction. How to Reactivate an Inactive Savings Account? To reactivate a dormant savings account, engage in banking actions such as settling bills, making deposits or withdrawals, or executing fund transfers. Certain financial institutions provide online banking services for the reactivation of dormant savings accounts. Additionally, you have the option to contact the bank’s local branch or customer service to initiate the account reactivation process. How to Reactivate a Dormant Savings Account? Contact your bank: Reach out to your bank or financial institution and inquire about the reactivation process for dormant or inactive accounts. You can do this by visiting a branch in person, calling their customer service hotline, or checking their website for specific instructions. Provide identification: Prepare the necessary identification documents required by the bank. This typically includes valid government-issued identification, such as a passport or driver’s license. The bank may also ask for additional documentation to verify your identity and ownership

Dormant Account Read More »

Directorate of Women Empowerment

Government Schemes / Shruti / September 29, 2024

Women Empowerment is the progression of women and, accepting and including them in the decision-making process. It also means providing them with equal opportunities for growth and development in society, and disapproving gender bias. Article 15(3) mentions the welfare of women and children and can be stated as “Nothing in this article shall prevent the State from making any special provision for women and children.” Ministry for women and child development has collaborated with Facebook on November 19, 2019, to enhance digital literacy and online safety for women and children in India. The campaign categorized under the Global Literacy Program is named “We Think Digital”. Women and children are a vital part of Indian society. Also, these are the most vulnerable sections of India What is Women Empowerment? Women’s empowerment involves providing women with access to resources, education, healthcare, and employment opportunities, as well as encouraging their involvement in the decision-making procedures. The goal of women’s empowerment is to create a more equal and just society, where Women possess equivalent entitlements, prospects, and liberties as men. Women empowerment refers to the process of granting women the ability and authority to control their lives and make decisions that affect their well-being and that of their communities. It entails granting women access to education, healthcare, employment opportunities, and resources, as well as promoting their participation in decision-making processes at all levels of society. The aim of women empowerment is to promote gender equality, eliminate gender discrimination, and make equitable society for both. Why is Women Empowerment important? Women’s empowerment is essential for several reasons. Firstly, it promotes gender equality, which is a fundamental human right. Women should have equal opportunities, freedoms, and protections as men, and empowering women is a step towards achieving this goal. Secondly, women’s empowerment is critical for economic development. When women got freedom for education, employment opportunities, and resources, they can contribute significantly to the growth of their communities and the country’s economy. Thirdly, women’s empowerment is essential for social development. Empowering women helps to promote social cohesion, reduce poverty, and improve health outcomes, among other benefits. Ways to achieve Women Empowerment Providing education: Education is a powerful tool for empowering women. When women have access to education, they can acquire knowledge and skills that enable them to participate in the workforce, become financially independent, and contribute to their communities’ development. Education also helps to promote gender equality by challenging cultural and social norms that discriminate against Providing access to healthcare: Women’s health is essential for their well- being and their ability to contribute to society. Providing women with access to healthcare services, including reproductive health services, helps to improve their health outcomes and reduces their vulnerability to disease and illness. Promoting women’s participation in decision-making processes: Women’s voices must be heard in decision-making processes at all levels of society. This includes political, economic, and social decision-making processes. Encouraging women to participate in these processes helps to ensure that their needs and interests are represented and promotes gender equality. Providing access to economic resources: Women need access to economic resources, such as credit, land, and capital, to start and run businesses. Providing women with these resources helps to promote their economic empowerment, which in turn contributes to their communities’ development. Challenging cultural and social norms that discriminate against women: Cultural and social norms that discriminate against women can hinder their progress and prevent them from realizing their full potential. Challenging these norms and promoting gender equality is essential for women’s empowerment. List of Major Women Empowerment schemes Women Empowerment scheme Launch Year Objectives Beti Bachao Beti Padhao Scheme 2015 To prevent gender-biased sex selective elimination To ensure survival & protection of the girl child To ensure education and participation of the girl child One-Stop Centre Scheme 2015 To provide support and assistance to women affected by violence, both in private and public spaces. To Facilitate/Assist in filing First Information Report (FIR/NCR) To provide psycho-social support and counselling to women/girl Women Helpline Scheme 2016 To provide toll-free 24-hours telecom service to women affected by violence. To facilitate crisis and non-crisis intervention through referral to the appropriate agencies such as police/Hospitals/Ambulance services/District Legal Service Authority (DLSA)/Protection Officer (PO)/OSC. To provide information about the appropriate support services, government schemes, and programs available to the woman affected by violence, in her particular situation within the local area in which she resides or is employed. UJJAWALA 2016 To prevent the trafficking of women and children for commercial sexual exploitation. To facilitate the rescue of victims from the place of their exploitation and place them in safe custody. To provide rehabilitation services with both immediate and long-term to the victims by providing basic amenities/needs such as shelter, food, clothing, medical treatment including counseling, legal aid and guidance, and vocational training. Working Women Hostel 1972-73 To promote the availability of safe and conveniently located accommodation for working women. To provide accommodation to children of working women, up to the age of 18 years for girls and up to the age of 5 years for boys. SWADHAR Greh 2018 To cater to the primary need for shelter, food, clothing, medical treatment, and care of women in distress. To provide women with legal aid and guidance. Support to Training and Employment Programme for Women (STEP) 1986-87 To provide skills that give employability to women. To benefit women in the age group of 16 and above in the country. Nari Shakti Puraskar 2016 To strengthen the place of women in society. To facilitate institutions that work towards the progress and development of women in society. Mahila Shakti Kendras (MSK) 2017 To create an environment for women where they have access to healthcare, quality, education, guidance, employment, etc. To facilitate these opportunities at the block and district level in the country. NIRBHAYA 2012 To facilitate safety and security for women at various levels. To ensure strict privacy and confidentiality of women’s identity and information. Provision for real-time intervention as far as possible Mahila E-Haat 2016 To facilitate entrepreneurship opportunities

Directorate of Women Empowerment Read More »

TCS Rate Chart as applicable for the Financial Year 2023-2024 (Assessment Year 2024-2025)

learn / Shruti / September 29, 2024

Indian Income Tax Act has provisions for tax collection at source or TCS. In these provisions, certain persons are required to collect a specified percentage of tax from their buyers on exceptional transactions. Most of these transactions are trading or business in nature. It does not affect the common man. What is Tax Collected at Source (TCS)? Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it can be deposited with the tax authorities. Section 206C of the Income-tax Act governs the goods on which the seller has to collect tax from the buyers. Such persons must have the Tax Collection Account Number to be able to collect TCS. Example: If a box of chocolates costs Rs.100, the buyer pays Rs.20 which is the tax collected at the point of sale. The funds are then transferred to a certain approved branch of a bank that has been authorised to accept payments. The seller is only responsible for collecting this tax from the customer and is not liable for paying it himself or herself. The tax is intended to be collected while selling items, conducting transactions, receiving a payment in cash from the buyer, or issuing a cheque or draft, whichever method is paid first. TCS Rate Chart as applicable for the Financial Year 2023-2024 (Assessment Year 2024-2025) – Section Deductee* Nature of transaction Threshold Limit (Rs) TDS Rate 192 R, NR Payment of salary Basic exemption limit of employee Normal Slab Rates 192A R, NR Premature withdrawal from EPF 50,000 10% Budget 2023: TDS rate for EPF withdrawals without a PAN number is now 20%, from the previous maximum marginal rate 193 R Interest on securities Debentures- 5,000 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000 Other securities- No limit 10%Budget 2023: Exemption of TDS on interest from listed debentures has been removed. Therefore, tax has to be deducted on interest on such specified securities. 194 R Payment of any dividend 5,000 10% 194A R Interest from other than interest from securities (from deposits with banks/post office/co-operative society) Senior Citizens- 50,000 Others- 40,000 10% 194A R Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives 5,000 10% 194B R, NR, FC Income from lottery winnings, card games, crossword puzzles, and other games of any type Aggregate income from lottery winnings, card games, crossword puzzles etc- 10,000 Online Gamine- Refer 194BA 30% 194BA R, NR, FC Income from online games Nil 30% 194BB R, NR, FC Income from horse race winnings 10,000 Aggregate winnings during a financial year not single transaction 30% 194C R Payment to contractor/sub-contractor:- Single transaction- 30,000 Aggregate transactions- 1,00,000 a) Individuals/HUF 1% b) Other than Individuals/HUF 2% 194D R Insurance commission to: a) Domestic Companies 15,000 10% b) Other than companies 15,000 5% Budget 2024 – This rate is reduced to 2% with effect from 1st April 2025 194DA R Income from the insurance pay-out, while payment of any sum in respect of a life insurance policy. 1,00,000 5% Budget 2024 – This rate is reduced to 2% with effect from 1st October 2024 194E NR, FC Payment to non-resident sportsmen/sports association No limit 20% *This rate shall be increased by applicable surcharge and 4% cess 194EE R, NR Payment of amount standing to the credit of a person under National Savings Scheme (NSS) 2,500 10% 194F R, NR Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund No limit 20% Budget 2024 – This section is proposed to be omitted with effect from 1st October 2024 194G R, NR, FC Payments, commission, etc., on the sale of lottery tickets 15,000 5% Budget 2024 – This rate is reduced to 2% with effect from 1st October 2024 194H R Commission or brokerage 15,000 5% Budget 2024 – This rate is reduced to 2% with effect from 1st October 2024 194-I R Rent: 194-I(a) Rent on plant and machinery 2,40,000 2% 194-I(b) Rent on land/building/furniture/fitting 2,40,000 10% 194-IA R Payment in consideration of transfer of certain immovable property other than agricultural land. 50,00,000 1% 194-IB R Rent payment by an individual or HUF not covered u/s. 194-I 50,000 per month 5% Budget 2024 – This rate is reduced to 2% with effect from 1st October 2024 194-IC R Payment under Joint Development Agreements (JDA) to Individual/HUF No limit 10 194J R Any sum paid by way of fee for professional services 30,000 10% 194J R Any sum paid by way of remuneration/fee/commission to a director 30,000 10% 194J R Any sum paid for not carrying out any activity concerning any business; 30,000 10% 194J R Any sum paid for not sharing any know-how, patent, copyright, etc. 30,000 10% 194J R Any sum paid as a fee for technical services 30,000 2% 194J R Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films 30,000 2% 194J R Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center. Prior to June 1, 2017, the rate was 10% 30,000 2% 194K R Payment of any income for units of a mutual fund, for example, dividend No limit 10% 194LA R Payment in respect of compensation on acquiring certain immovable property 2,50,000 10% 194LB NR, FC Payment of interest on infrastructure debt fund to Non-Resident No limit 5% *This rate shall be increased by applicable surcharge and 4% cess 194LC NR, FC Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds No limit 5% 194LC NR, FC Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term

TCS Rate Chart as applicable for the Financial Year 2023-2024 (Assessment Year 2024-2025) Read More »

GSTR 9 and 9C

Goods & Service Tax / Shruti / September 29, 2024

Digital is one word that would be synonymous with the current year in India. From GSTN to the e-Way Bill, the finance sector, by far more than any other Industry, went through the most aggressive digital; makeover in recent years. For better or worse, we must now accept the fact that 2022 was the year when India took a major leap towards s digital economy. But the year is not over yet and there is one small but very important event left in the tax calendar i.e. GSTR-9 and GSTR-9C. The GSTR-9 form is an annual return that has to be filed by all registered taxable persons under GST. The GSTR-9C is the GST reconciliation Statement for a particular FY on or before 31st December. The reconciliation must also be certified by a CA for the companies having a turnover of more than 5 crores. What is GSTR 9? GSTR 9 is an annual return that must be filed by all regular taxpayers registered under GST. It provides a summary of the outward and inward supplies made during the financial year and the taxes paid. It also contains information related to Input Tax Credit (ITC) claimed, ITC reversed, and ITC refunded. GSTR 9 is an annual return form that is filed by registered taxpayers who have opted for the regular scheme. It is a consolidation of all the monthly or quarterly returns that the taxpayer has filed during the financial year. GSTR 9 contains details of sales, purchases, and tax paid during the year. The form is divided into six parts, each requiring specific information related to the taxpayer’s business. Who needs to file GSTR 9? Every taxpayer registered under GST, except for those registered under the composition scheme, must file GSTR 9. The following are the categories of taxpayers who must file GSTR 9: Regular taxpayers whose annual turnover exceeds Rs. 2 crores in a financial year. Casual taxpayers and non-resident taxpayers. Input service distributors (ISDs) Those who were previously registered under the Goods and Services Tax (GST) but have since surrendered their registration. What is GSTR 9C? GSTR 9C is a reconciliation statement that must be filed along with GSTR 9. It is mandatory for taxpayers whose annual turnover exceeds Rs. 5 crores in a financial year. GSTR 9C reconciles the information provided in GSTR 9 with the audited annual financial statements of the taxpayer. The reconciliation statement helps to ensure that the information provided in GSTR 9 is accurate and complete. GSTR 9C contains a reconciliation of the taxpayer’s turnover, tax paid, and ITC claimed in the financial year with the audited annual financial statements of the business. It is certified by a Chartered Accountant or a cost accountant, and it is mandatory for taxpayers to file GSTR 9C along with GSTR 9. Who needs to file GSTR 9C? The following categories of taxpayers must file GSTR 9C: Taxpayers whose annual turnover exceeds Rs. 5 crores in a financial year. Those who are required to get their accounts audited under any law. Simple to Understand Comparison Between GSTR 9 & GSTR 9C Points of comparison GSTR-9: Annual Return GSTR-9C: Reconciliation Statement Nature Informational/ a consolidation of all GST returns Analytical statement on GST returns to be self-certified by CFO/Finance head Who must file GST registered taxpayer GST registered taxpayer to whose aggregate annual turnover is more than Rs 5 crore Not applicable to – Composition Dealers – Casual Taxable Person (CTP) – Non-Resident Taxable Person (NRTP) – Input Service Distributor (ISD) – Unique Identification Number (UIN) holders – Online Information and Database Access Retrieval (OIDAR) Service providers – Persons subject to TCS or TDS provisions Those persons mentioned under the column for GSTR-9 including a registered person whose aggregate turnover in an FY is less than Rs.5 crore Optional for Businesses having less than Rs 2 crore turnover (w.e.f FY 2017-18) Businesses having less than Rs 5 crore turnover Due date for filing^ 31st December of next FY* 31st December of next FY, either with or after filing GSTR-9* Late fees & penalty From FY 2022-23 onwards- S.No Turnover limit Late fee per day Maximum late fee 1 Up to Rs 5 crore Rs 50 (Rs 25 each under CGST and SGST Act) 0.04% of turnover in state/UT (0.02% each under CGST and SGST Act) 2 More than Rs 5 crore and less than Rs 20 crore Rs 100 (Rs 50 each under CGST and SGST Act) 0.04% of turnover in state/UT (0.02% each under CGST and SGST Act) 3 More than Rs 20 crore Rs 200 (Rs 100 each under CGST and SGST Act) 0.50% of turnover in state/UT (0.25% each under CGST and SGST Act) Up to FY 2021-22-– Late fees of Rs 200 per day of delay subject to a maximum cap of an amount at 0.50% (0.25% each under CGST and SGST) of total turnover in respective State/UT until 31st March 2023. The CBIC has notified vide 07/2023 dated 31st March 2023 to waive off late fee in excess of Rs.20,000 (Rs.10,000 each under CGST and SGST laws) for delayed filing of GSTR-9 for years 2017-18 up to 2021-22 if filed between 1st April 2023 to 30th June 2023. No specific provision, Hence, subject to a general penalty of Rs 25,000 Filing of the return On GST portal or through facilitation centre On GST portal or through facilitation centre at the time of or after filing GSTR-9 Format of the return Consolidated summary details of the – Turnover – ITC and tax paid – Late fees paid in GST returns filed during the FY – Amendments made between April to 30th November of next FY Also, below details must be declared wherever applicable: – Demands/ refunds – Supplies from composition dealers – Job works – Goods sent on an approval basis – HSN wise summary of sales and purchases – Late fees payable Part-A -Reporting of reconciliation needed between turnover, tax paid and ITC. Report on Auditor’s recommendation of any additional tax liability. Part -B – Self-certification by CFO/Finance head. Who must certify/ attest No certification required by CA/CMA; however it must be attested by the taxpayer using a digital signature CFO/Finance

GSTR 9 and 9C Read More »

ITR-1: Key Differences between the Old and New Tax Regime

Income Tax / Shruti / September 29, 2024

The Budget 2023 caused a lot of confusion among taxpayers regarding the choice between the old and new tax regimes. The government introduced various incentives in the 2023 Budget and 2024 Budget to encourage the adoption of the new regime. These changes show that the government intends to have taxpayers transition to the new regime and eventually phase out the old one. Though the new regime is now the default tax regime, the old tax regime will continue to exist. New Tax Regime A new tax regime was introduced in Budget 2020 wherein the tax slabs were altered, and taxpayers were offered concessional tax rates. However, those who opt for the new regime cannot claim several exemptions and deductions, such as HRA, LTA, 80C, 80D , and more. Because of this, the new tax regime did not have many takers. The government in the Budget 2023 introduced 5 key changes, which remain the same even for FY 2024-2025 since no changes were made in the Interim Budget 2024, to encourage taxpayers to adopt the new regime. They are: Higher Tax Rebate Limit: Full tax rebate on an income up to ₹7 lakhs has been introduced. Whereas this threshold is ₹5 lakhs under the old tax regime. This means that taxpayers with an income of up to ₹7 lakhs will not have to pay any tax at all under the new tax regime! Streamlined Tax Slabs: The tax exemption limit has been increased to ₹3 lakhs, and the new tax slabs are: Tax Slab for FY 2023-24 Tax Rate Tax Slab for FY 2024-25 Tax Rate Upto ₹ 3 lakh Nil Upto ₹ 3 lakh Nil ₹ 3 lakh – ₹ 6 lakh 5% ₹ 3 lakh – ₹ 7 lakh 5% ₹ 6 lakh – ₹ 9 lakh 10% ₹ 7 lakh – ₹ 10 lakh 10% ₹ 9 lakh – ₹ 12 lakh 15% ₹ 10 lakh – ₹ 12 lakh 15% ₹ 12 lakh – ₹ 15 lakh 20% ₹ 12 lakh – ₹ 15 lakh 20% More than 15 lakh 30% More than 15 lakh 30% The tax rates under both regimes are compared as below: Old Tax Regime (FY 2022-23, FY 2023-24 and FY 2024-25) New Tax Regime Income Slabs Age < 60 years & NRIs Age of 60 Years to 80 years Age above 80 Years FY 2022-23 FY 2023-24 FY 2024-25 Up to ₹2,50,000 NIL NIL NIL NIL NIL NIL ₹2,50,001 – ₹3,00,000 5% NIL NIL 5% NIL NIL ₹3,00,001 – ₹5,00,000 5% 5% NIL 5% 5% 5% ₹5,00,001 – ₹6,00,000 20% 20% 20% 10% 5% 5% ₹6,00,001 – ₹7,00,000 20% 20% 20% 10% 10% 5% ₹7,00,001 – ₹7,50,000 20% 20% 20% 10% 10% 10% ₹7,50,001 – ₹9,00,000 20% 20% 20% 15% 10% 10% ₹9,00,001 – ₹10,00,000 20% 20% 20% 15% 15% 10% ₹10,00,001 – ₹12,00,000 30% 30% 30% 20% 15% 15% ₹12,00,001 – ₹12,50,000 30% 30% 30% 20% 20% 20% ₹12,50,001 – ₹15,00,000 30% 30% 30% 25% 20% 20% ₹15,00,000 and above 30% 30% 30% 30% 30% 30% Salary income: The standard deduction of ₹50,000, which was only available under the old regime, has now been extended to the new tax regime as well. This amount has been increased to ₹75,000 for the new regime only with effect from FY 2024-25. Family pension: Those receiving a family pension can claim a deduction of ₹15,000 or 1/3rd of the pension, whichever is lower. This amount has been increased to ₹25,000 for the new regime with effect from FY 2024-25. Reduced Surcharge for High Net Worth Individuals: The surcharge rate on income over ₹5 crores has been reduced from 37% to 25%. This move will bring down their effective tax rate from 42.74% to 39%. Higher Leave Encashment Exemption: The exemption limit for non-government employees has been raised from ₹3 lakhs to ₹25 lakhs, an 8-fold increase. Default Regime: Starting from FY 2023-24, the new income tax regime will be set as the default option. If you want to continue using the old regime, you must submit the income tax return along with Form 10-IEA before the due date. You will have the option to switch between the two regimes annually to check the tax benefits. Old Tax Regime The old regime is the tax system that prevailed before the introduction of the new regime. Under this regime, there are over 70 exemptions and deductions available, including HRA and LTA, that can reduce your taxable income and lower tax payments. The most popular and generous deduction isSection 80C, which allows for a reduction of taxable income up to Rs.1.5 lakh. The taxpayers are given a choice between the old and the new tax regime. Budget 2024 Updates Financial Minister Nirmala Sitharaman has proposed changes in the tax structure under the new tax regime. The new tax regime has been updated as follows – Comparison of pre-budget and post-budget tax slab Tax Slab for FY 2023-24 Tax Rate Tax Slab for FY 2024-25 Tax Rate Upto ₹ 3 lakh Nil Upto ₹ 3 lakh Nil ₹ 3 lakh – ₹ 6 lakh 5% ₹ 3 lakh – ₹ 7 lakh 5% ₹ 6 lakh – ₹ 9 lakh 10% ₹ 7 lakh – ₹ 10 lakh 10% ₹ 9 lakh – ₹ 12 lakh 15% ₹ 10 lakh – ₹ 12 lakh 15% ₹ 12 lakh – ₹ 15 lakh 20% ₹ 12 lakh – ₹ 15 lakh 20% More than 15 lakh 30% More than 15 lakh 30% Budget 2024 has increased the standard deduction under the new tax regime to ₹ 75,000. The family pension deduction has also been increased from ₹ 15,000 to ₹ 25,000. With the revised tax structure the taxpayer will save ₹17,500. Difference Between Old Vs New Tax Regime: Which is Better for FY 2023-24? The decision to switch to the new or remain in the old tax regime or which regime is better for you shall be based on the tax savings deductions and exemptions you are eligible for in the old tax regime. To make it easier, we have calculated a breakeven point for various income levels (refer

ITR-1: Key Differences between the Old and New Tax Regime Read More »

Aadhaar Bank Link Status Check

learn / Shruti / September 29, 2024

You can link your Aadhar card to a bank account offline using SMS, mobile banking, ATMs, and other methods. In the event that you do not connect your Aadhar card to your bank account, you will forfeit the funds and advantages of the scheme. By utilising your cell phone number, the mAadhaar app, or the official website of the Unique Identification Authority of India (UIDAI), you can determine whether your bank account and Aadhar card are linked. You may find out here how to verify the status of the Aadhaar and bank account linkage using different online ways. The government has made it mandatory to link Aadhaar and bank accounts only for receiving government scheme benefits and other benefits provided by the government. However, it is not mandatory to link the Aadhaar card with a bank account to access banking services. Thus, it is optional to link your Aadhaar card with your bank account. Linking your Aadhaar card with your bank account is only mandatory to access numerous government subsidies and benefits, which include welfare schemes, direct cash transfers, scholarships, and pensions. Importance of Linking Aadhaar with Your Bank Account Improved financial security: You can ensure increased financial security by linking your Aadhaar card with your bank account. This minimises the chances of theft and financial fraud leading to monetary losses. Ease of identity verification: Aadhaar card contains all your demographic and biometric data so financial institutions can cross-verify their identity. This ensures that only you can access your bank account, providing maximum security. Seamless online transactions: Numerous Aadhaar-enabled payment systems (AEPS) eliminate your need to remember PINs and passwords. Hence, it simplifies financial transactions from your account. Ease of account management: Linking your Aadhaar card with your bank account simplifies the KYC process. This helps consolidate identity and address proof, reducing the documentation process for financial transactions. Seamless digital payments: Digital payments are extremely common for account holders. Upon linking your bank account with an Aadhaar card, you can access various credit facilities and contribute to the growth of a cashless economy. Additional benefits: With the evolving technology, linking an Aadhaar card with a bank account provides an innovative solution to prevent fraud of any type. These solutions include eKYC, biometric-based authentication, and more. How to Check Aadhaar Bank Linking Status? Step 1 – Visit the official website of UIDAI. Step 2 – Click on the ‘Check Aadhaar/Bank Linking Status’ option. Step 3 – A new bank map page will appear on the screen. Step 4 – Enter your Unique Identification number (UID) or Virtual ID. Step 5 – Click on the ‘Send OTP’ option. Step 6 – Enter the OTP you receive on your registered mobile number. Step 7 – Click on the ‘Submit’ button. Step 8 – The bank account which is linked with your Aadhaar will be shown on the screen. Steps to Check Aadhaar and Bank Account Linking Status via mAadhaar Step 1 – Open the mAadhaar app and log in to your account. Step 2 – Tap on the ‘My Aadhaar’ option. Step 3 – Tap on ‘Aadhaar-Bank Account Link Status’. Step 4 – Enter your Aadhaar number and captcha code. Step 5 – Tap on the ‘Request OTP’ button. Step 6 – Enter the OTP you receive on your registered mobile number. Step 7 – Tap on ‘Verify’ to check if your bank account is linked to your Aadhaar. FAQs How many bank accounts can I link to my Aadhaar? You can link only one bank account to your Aadhaar. Is it possible to check my Aadhaar and bank account linking status if my mobile number and Aadhaar are not linked? No, your mobile number must be linked to your Aadhaar for checking the Aadhaar and bank account linking status.

Aadhaar Bank Link Status Check Read More »

LLP Form 11 Annual Return

learn / Shruti / September 29, 2024

Form 11 comprises an annual return i.e to be furnished by all LLPs no matter what the turnover is in that year. Also, Limited Liability Partnership (LLP) does not have any operations or business in the fiscal year, Form 11 is required to be furnished. Apart from the basic details about the Name, and Address of LLP, details of Partners/ Designated Partners the additional information also to be shown such as: Total contribution by/to partners of the LLP Information of the notices obtained for the penalties levied, and compounding offences happened in the fiscal year. Form 11 is due on 30th May of each year. All LLPs registered under Limited Liability Act, 2008 have to annually file two forms – Form 11 and Form 8. Annual Return: Form 11 is to be submitted within 60 days of closure of the financial year i.e 30th May of each year. (Financial year closes on 31st March.) Statement of Account and Solvency: Form 8 is to be submitted within 30 days from the expiry of six months from the closure of the financial year i.e 30th October of each year. What is Form 11 and How to file it? Form 11 is an Annual return that is to be filled by all LLPs irrespective of turnover during the year. Even when an LLP does not carry out any operations or business during the financial year, Form 11 needs to be filed. Apart from Basic information about Name, Address of LLP, details of Partners/ Designated Partners, other details that need to be declared are : Total contribution by/to partners of the LLP Details of notices received towards Penalties imposed / compounding offenses committed during the financial year It must be e-filed on the MCA portal. The e-form has to be downloaded and filled in an offline mode. The pre-fill option is available to minimize your efforts and the Pre-scrutiny button is present to validate the data filled in. This is done before you submit the form online. What are the prerequisites? LLPIN (Limited Liability Partnership Identification number) allotted to the LLP is needed to pre-fill the basic data. Declaration about contribution/sums received by all the partners of the LLP Payment of fees with respect to e-Form 4 (Notice of appointment, cessation, and change in designation of a designated partner or partner) and processing of e-form 4 should be completed (If applicable). Get DSC of your Designated Partner ready! Important Aspects to note while filing Annual return for LLP Using the pre-scrutiny button available on the Form can help validate the data entered. This will help in processing the data error-free (Without mistakes). Wherever figures are declared in the forms, these must be entered as they stand on 31st March. Details of LLP and/ or company in which partners/ designated partners( DP) is/are directors/ partner. (It is mandatory to attach this detail in case any partner/ DP is a partner in any LLP and/ or director in any other company). The e-form needs certification of a practicing Company Secretary compulsorily if either of the following conditions is satisfied: Total contribution made by Partners is more than Rs. 50 lakhs OR Turnover of LLP is more than Rs. 5 crores What are the Documents to be submitted along with Form 11? Details of LLP and/ or company in which partners/ designated partners (DP) are directors/ partners (It is mandatory to attach these details in case any partner/ DP is a partner in any LLP and/ or director in any other company) Any other information can be provided as an optional attachment to this e-Form What are the consequences of late filing Form 11? Late Fees: Penalty of Rs. 100 per day is chargeable till the date of filing. File LLP Form 11 Step 1: Open MCA V3 homepage Step 2: Login to MCA portal with genuine credentials1 Step 3: Click “MCA services” and then choose “LLP E-Filing” Step 4: Select Form-11 Open “Annual Return of Limited Liability Partnership (LLP)” from the dropdown Step 5: Input LLP Information Step 9: Complete the application Step 11: Click on submit form after successful save at each step Step 12: SRN is generated upon after submitting the form. (The SRN can be operated by the user for any forthcoming resemblance with MCA.) Step 13: Download the webform and affix DSC Step 14: Upload the DSC affixed pdf document to MCA V3 portal Step 15: Pay Fees (In point the user does not modify or successfully upload the DSC affixed PDF within 15 days of SRN generation and complete the payment within 7 days of successful upload of DSC affixed document or due date of filing of the form + 2 days, whichever is earlier, the SRN will be cancelled.) Step 16: Download the paid Challan/ Acknowledgement. FAQs What is LLP Form 11? LLP Form 11 is an annual return that must be filed by Limited Liability Partnerships (LLPs) in India. It contains information about the LLP’s partners, contributions, and changes during the financial year. Who is required to file LLP Form 11? All LLPs registered in India are required to file Form 11, irrespective of their turnover or profits. This includes both active and dormant LLPs.

LLP Form 11 Annual Return Read More »

September 2024