Saturday, May 6, 2023

Guidelines for Special All-India Drive against fake registrations

In past few years Goods and Service Tax Department has identified and curbed various cases of Fake Firms, Bogus Invoicing, Firms in name of persons from economically weaker sections etc usually made to evade taxes and causing revenue loss to the Government. 


GST Officials has been taking help from various data analytics sources such as like BIFA, ADVAIT, NIC Prime, E-Way analytics, etc, as well as through human intelligence, Aadhar database, other local learning and the experience gained through the past detection and modus operandi alerts to detect these organizations and cases. But even after many detected cases there are still various organizations which are involved in such activities which is causing loss to Government in form of GST wrong input passing.

The Central Board Indirect Taxes & Customs, GST Policy Wing through its Instruction No. 01/2023-GST have proposed special drive for identifying these fake registrations from 16th May 2023 to 15th July 2023 to detect suspicious / fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue.


The government proposes following action through this drive:

1. Suspension/Cancellation of Registration of Such Fake firms registered with GSTN.

2. Blocking of credit of such fake firms.

3. Demand and recovery of Input tax credit from recipient of such fake firms through details extracted from GSTR-1

4. Provisional attachment of property/Bank Account of Mastermind of Such Fake firms.

Link to detailed instruction regarding the Special drive is given below:

Guidlines for Special All-India Drive against Fake registrations


Tuesday, April 25, 2023


Many of us and our clients are receiving Bank validation mails and messages from Goods and Service Tax Department in past few days. These mail usually contains errors in Bank Account Validation which includes Account closure, Account PAN not linked, Wrong name in Bank Account etc.

On 24.04.2023 GSTN has issued advisory for the Taxpayers which says:

" GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct. The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account"

Link to full text is given below:

As we are aware that linking of Bank Account is mandatory at GSTN and non linking can result in Suspension as well Cancellation of GST Registration. Readers are advised to kindly check the Bank Account linkage at their respective GSTN Login.

ITR 1 to ITR 4 for AY 2023-2024

 Income tax has today on 25.04.2023 has started e-filing of  ITR 1 to ITR 4 for AY 2023-2024. The much awaited release of schema was made on 11.04.2023 but e-filing of same was not started till today.

The taxpayers can login into Income Tax E-filing website and can upload their returns JSON file generated either through software provided by third parties or from Excel utility released by Income Tax.

Other Income Tax forms from ITR5 to ITR7 will be released shortly.

Income Tax AY 2023-2024

Last date for filing of return for Non-Audit taxpayers is 31st July, 2023. In case of delay in filing returns Late fees of Rs. 1000 to Rs. 10000 is leviable.

Link to relevant news of Income Tax Department is given below:

Saturday, March 18, 2023


Since the launch of MCA V3 portal, we professionals have been facing lot of issues in uploading forms and getting approval from ROC/CRC. The problem varies from User ID creation, dsc registration, Form Uploading errors, Payment errors, Certificate of Registration not available even after Company registration etc. 

One such errors which recently we were facing and many users are still facing is "DSC is not registered with XXXXXX on MCA portal". This error was usually coming at the time of uploading SPICE forms and even after re-registering dsc and adding roles in Business user login, the error was still there. The 

MCA helpdesk has still not come with any solution to this problem but one of the hacks to resolve the issue temporarily is shared below: 

 STEP 1- OPEN YOUR BROWSER IN INCOGNITO/PRIVATE/SAFE MODE (Also preferably dont open MCA website in normal mode on the same browser till the activity is completed) 
STEP 2- LOGIN to your MCA Business Account 
STEP 3- OPEN THE Dashboard of the relevant SPICE Form 
STEP 4- EDIT the relevant form 
STEP 5- SAVE and SUBMIT the form once again 
STEP 6- Download the FORM and attach the DSC of Directors and professional 
STEP 7- Than UPLOAD the form. 

Remember that all the activities are to be done in INCOGNITO/PRIVATE/SAFE MODE. 

 This will solve the issue till MCA software vendor comes with some permanent solution. This has helped us and will surely help to most of the professionals. #DSCISNOTREGISTERED 


Thursday, May 14, 2020



Finance Minister Nirmala Sitharama on 13.05.2020 shared the first part of the most awaited Economic Package for boosting the corona troubled economy of India which had provisions for MSME sector of the country

This has come after Honorable PM Narender Modi, a day earlier has announced that a economic package of approximately 20,00,000.00 crores will be announced by Finance Minister in coming 3-4 days.

The Finance Minister along with MoS Anurag Thakur said that the "ATMANIRBHAR BHARAT" will be based on 5 pillar- Economy, Infrastructure, System, Vibrant Demography and Demand. The focus will be on Land, Labour, Liquidy and Law.

The  first part of the package is mainly focused on MSME sector and has been divided into Six major steps:

1. Rs. 3 Lakh collateral free loans to MSMEs. In which emergency credit line to MSMEs from Banks and NBFC's upto 20% of entire outstanding credit. This steps will help 45 lakh units to resume their Business activity.

2. Rs. 20000 crores subordinate Debt for Stressed MSMEs. This will help 2 lakhs MSME's

3. Rs. 50000 crores equity infusion for MSME's through Fund of Funds. A corpus of Rs. 10000 crore for Viable MSME through Funds of Fund.

4. Defintion of MSME's has been changed to increase the base of MSME's in the country.

New Definition of MSME's


Manufacturing & Services
Investment Less than 1 crore and Turnover Less than 5 crore
Investment Less than 10 crore and Turnover Less than 50 crore
Investment Less than 20 crore and Turnover Less than 100 crore

5. Global Government tender upto Rs. 200 crores to be discontinued.

6. E-Market Linkage for MSMEs to act as replacement for Trade Fair and Exhibition. Government will clear all the dues within next 45 days.

Announcement for Employees:

1. Government will contribute the EPF for next 3 months for Employer as well Employee share. This will provide liquidy relief of Rs. 2500 cr to 3.67 lakhs establishments and for 72.22 Lakh employees.

2. EPF rate decreased to 10% from past 12% for next three years for both Employer and Employee share. This will infuse 6750 crores to these institutions.

Announcment for NBFC/HFC/MFI

1. Government will infuse 30000 crore under Special Liquidity scheme into NBFC/HFC/MFI through Investment in Investment Grade Debt Paper.

2.  Rs. 45000 crore partial credit Guarantee Scheme for NBFC's. First 20% loss will be borne by the Guarantor i.e. Government of India.


Rs. 90000 crores liquidity injection for DISCOMs on their due receivables to increase their cash flow.


We have complied all the detailed Income Tax reliefs provided in First part in our other post. You can read it here INCOME TAX RELIEF.
Brief reliefs are given below:

1. Due date for ITR extended to 30th November 2020 from 31st July 2020 and 31st October 2020.

2. Due date of Tax Audit increased to 31st October, 2020 from 30th September 2020.

3. Non Salaried TDS and TCS will be reduced by 25% on rates applicable for payments made from 14-05-2020 to 31.03.2021.

4 Vivad pe Vishwas Scheme to be extended till 31st December 2020.

5. Assessments that are getting barred on 30th September 2020 extended to 31st December 2020 and that getting barred on 31st March 2021 to 30th September 2021.


1. Extension of works of Government contracts by Six months for pending contracts.
2. Partial release of Bank Grantees to the extent of work completed by the Contractors.
3.Extension of due dates of Registration and Completion of Real Estate Projects under RERA by 3 months.

Thursday, June 2, 2016

FAQs on The Income Tax Declaration Scheme, 2016


Circular No.17 of 2016

Question No.1: Where an undisclosed income in the form of investment in asset is declared under the Scheme and tax, surcharge and penalty is paid on the fair market value of the asset as on 01.06.2016,then will the declarant be liable for capital gains on sale of such asset in the future? If yes, then how will the capital gains in such case be computed?

Answer: Yes, the declarant will be liable for capital gains under the Income-tax Act on sale of such asset in future. As per the current provisions of the Income-tax Act, the capital gains is computed by deducting cost of acquisition from the sale price. However, since the asset will be taxed at its fair market value the cost of acquisition for the purpose of Capital Gains shall be the fair market value as on 01.06.2016 and the period of holding shall start from the said date(i.e. the date of determination of fair market value for the purposes of the Scheme)
Question No.2: Where a notice under section 142(1)/ 143(2)/ 148/ 153A/ 153C of the Income-tax Act has been issued to a person for an assessment year will he be ineligible from making a declaration under the Scheme?

Answer: The person will only be ineligible from declaration for those assessment years for which a notice under section142(1)/143(2)/148/153A/153C is issued and the proceeding is pending before the Assessing Officer. He is free to declare undisclosed income for other years for which no notice under above referred sections has been issued.

Question No.3 :As per the Scheme, declaration cannot be made where an undisclosed asset has been acquired during any previous year relevant to an assessment year for which a notice under section 142, 143(2), 148, 153A or 153C of the Income-tax Act has been issued. If the notice has been issued but not served on the declarant then how will he come to know whether the notice has been issued?

Answer: The declarant will not be eligible for declaration under the Scheme where the undisclosed income relates to the assessment year where a notice under section 142, 143(2), 148, 153A or 153C of the Income-tax Act has been issued and served on the declarant on or before 31stday of May, 2016. The declarant is required to file a declaration regarding receipt of any such notice in Form-1.

Question No.4:In a case where the undisclosed income is represented in the form of investment in asset and such asset is partly from income that has been assessed to tax earlier, then what shall be the method of computation of undisclosed income represented by such undisclosed asset for the purposes of the Scheme?

Answer: As per sub-rule (2) of rule 3 of the Income Declaration Scheme Rules, 2016, where investment in any asset is partly from an income which has been assessed to tax, the undisclosed income represented in form of such asset will be the fair market value of the asset determined in accordance with sub-rule (1)of rule 3asreduced by an amount which bears to the value of the asset as on the 1.6.2016, the same proportion as the assessed income bears to the total cost of the asset.

This is illustrated by an example as under: Investment in acquisition of asset in previous year 2013-14 is of Rs.500 out of which Rs.200 relates to income assessed to tax in A.Y. 2012-13 and Rs.300 is from undisclosed income pertaining to previous year 2013-14. The fair market value of the asset as on 01.06.2016 is Rs.1500. The undisclosed income represented by this asset under the scheme shall be: 1500 minus (1500 X 200) =Rs.900

Question No. 5 :Can a declaration be made of undisclosed income which has been assessed to tax and the case is pending before an Appellate Authority?

Answer: As per section 189 of the Finance Act, 2016, the declarant is not entitled to re-open any assessment or reassessment made under the Income-tax Act. Therefore, he is not entitled to avail the tax compliance in respect of such income. However, he can declare other undisclosed income for the said assessment year which has not been assessed under the Income-tax Act.

Question No.6: Can a person against whom a search/ survey operation has been initiated file declaration under the Scheme?

Answer:(a) The person is not eligible to make a declaration under the Scheme if a search has been initiated and the time for issuance of notice under section 153A has not expired, even if such notice for the relevant assessment year has not been issued. In this case, however, the person is eligible to file a declaration in respect of an undisclosed income in relation to an assessment year which is prior to assessment years relevant for the purpose of notice under section 153A.

(b) In case of survey operation the person is barred from making a declaration under the Scheme in respect of an undisclosed income in which the survey was conducted. The person is, however, eligible to make a declaration in respect of an undisclosed income of any other previous year.

Question No. 7: Where a search/ survey operation was conducted and the assessment has been completed but certain income was neither disclosed nor assessed, then whether such un assessed income can be declared under the Scheme?

Answer: Yes, such undisclosed income can be declared under the Scheme.

Question No.8: What are the consequences if no declaration under the Schemeis made in respect of undisclosed income prior to the commencement of the Scheme?

Answer: As per section 197(c) of the Finance Act, 2016, where any income has accrued or arisen or received or any asset has been acquired out of such income prior to the commencement of the Scheme and no declaration is made under the Scheme, then such income shall be deemed to have been accrued, arisen or received or the value of the asset acquired out of such income shall be deemed to have been acquired in the year in which a notice under section 142/143(2)/148/153A/153C is issued by the Assessing Officer and the provisions of the Income-tax Act shall apply accordingly.

Question No.9: If a declaration of undisclosed income is made under the Scheme and the same was found ineligible due to the reasons listed in section 196 of the Finance Act, 2016, then will the person be liable for consequences under section 197(c)of the Finance Act, 2016?

Answer: In respect of such undisclosed income which has been duly declared in good faith but not found eligible, then such income shall not be hit by section 197(c)of the Finance Act, 2016. However, such undisclosed income may be assessed under the normal provisions of the Income-tax Act, 1961
Question No.10: If a person declares only a part of his undisclosed income under the Scheme, then will he get immunity under the Scheme in respect of the part income declared?

Answer: It is expected that one should declare all his undisclosed income. However, in such a case the person will get immunity as per the provisions of the Scheme in respect of the undisclosed income declared under the Scheme and no immunity will be available in respect of the undisclosed income which is not declared.

Question No.11: Can a person declare under the Scheme his undisclosed income which has been acquired from money earned through corruption?

Answer: No. As per section 196(b)of the Finance Act,2016,the Scheme shall not apply, inter-alia, in relation to prosecution of any offence punishable under the Prevention of Corruption Act, 1988. Therefore, declaration of such undisclosed income cannot be made under the Scheme. However, if such a declaration is made and in an event it is found that the income represented money earned through corruption it would amount to misrepresentation of facts and the declaration shall be void under section 193of the Finance Act, 2016. If a declaration is held as void, the provisions of the Income-tax Act shall apply in respect of such income as they apply in relation to any other undisclosed income
Question No.12: Whether at the time of declaration under the Scheme, will the Principal Commissioner/Commissioner do any enquiry in respect of the declaration made?

Answer : After the declaration is made the Principal Commissioner/ Commissioner will enquire whether any proceeding under section 142(1)/143(2)/148/153A/153Cis pending for the assessment year for which declaration has been made. Apart from this no other enquiry will be conducted by him at the time of declaration.

Question No.13: Will the declarations made under the Scheme be kept confidential?

Answer: The Scheme incorporates the provisions of section 138 of the Income-tax Act relating to disclosure of information in respect of assessees. Therefore, the information in respect of declaration made is confidential as in the case of return of income filed by assessees.

 Question No.14: Is it necessary to file a valuation report of an undisclosed income represented in the form of investment in asset along with the declaration under the Scheme?

Answer: It is not mandatory to file the valuation report of the undisclosed income represented in the form of investment in asset along with the declaration. However, the declarant should have the valuation report. While e-filing the declaration on the departmental website a facility for uploading the documents will be available