FAQ Released By RBI on PAYTM

PAYTM Payments Bank has been in news for quite some time now due to various reasons such as RBI Banning onboarding of new customers, RBI Banning PAYTM to operate its Payment Banking Business, ED summons etc. Recently RBI Governor has again shown no Interest in reconsidering their decision to stop PAYTM for operating its Payment Bank licence. Shares of Its Parent Company One 97 Communication is at all time low and various analyst are downgrading and cutting targets of PAYTM. Investors of PAYTM is suffering from anxiety as shares of the Company is down by more than 80%.

There is various rumours in the market regarding withdrawal of deposits, closing of the whole company, Money Laundering etc. PAYTM has also issued various clarification in its exchange filings to clear all these rumours but still more clarity was required by the Account holders of Paytm Payment Bank. 

The consumers of PAYTM has been facing various questions related to our deposits with PAYTM Bank and what will be effect of PAYTM accounts after 29th February 2024. To answer all our queries, yesterday on 16 Feb 2024 RBI has released a list of FAQs on Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024. 

Below is the link through which readers can directly read full text of FAQs from RBI website. 

https://www.rbi.org.in/Scripts/FAQView.aspx?Id=164

We have also attached all FAQs below:

Bank Accounts with Paytm Payments Bank

1. I have a savings or current account with Paytm Payments Bank. Can I continue to withdraw money from this account after March 15, 2024? Can I continue to use my debit card issued by Paytm Payments Bank?

Yes. You can continue to use, withdraw or transfer your funds from your account upto the available balance in your account.

Similarly, you can continue to use your debit card to withdraw or transfer funds upto the available balance in your account.

2. I have a savings bank or current account with Paytm Payments Bank. Can I deposit or transfer money into this account after March 15, 2024?

No. After March 15, 2024, you will not be able to deposit money into your account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited.

3. I am expecting a refund in my account with Paytm Payments Bank after March 15, 2024. Can this refund be credited into my account?

Yes. Refunds, cashbacks, sweep-in from partner banks or interest are permitted credits into your account even after March 15, 2024.

4. What will happen to the Deposits maintained with partner banks through ‘sweep in/out’ arrangements, after March 15, 2024?

The existing Deposits of Paytm Payments Bank customers maintained with partner banks can be brought back (sweep-in) to the accounts with Paytm Payments Bank, subject to the ceiling on balance prescribed for a Payments Bank (i.e. ₹2 lakh per individual customer at the end of day). Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024.

5. My salary is credited into my account with Paytm Payments Bank. Can I continue to receive my salary into this account?

No. After March 15, 2024, you will not be able to receive any such credits into your account with Paytm Payments Bank. It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience.

6. I receive a subsidy or certain direct benefit transfers linked to my Aadhar from the Government in my account with Paytm Payments Bank. Can I continue to receive it into this account?

No. After March 15, 2024, you will not be able to receive any such credit into your account with Paytm Payments Bank. Please arrange to change your linked account to another bank before March 15, 2024 to avoid any inconvenience or disruption.

7. My monthly electricity bill is paid automatically from my bank account with Paytm Bank Limited? Can this continue?

Withdrawal/debit mandates (such as National Automated Clearing House (NACH) mandates) will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.

8. My monthly OTT subscription is paid automatically through UPI from my bank account with Paytm Payments Bank? Can this continue?

Withdrawal/debit mandates through automatic UPI mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience or disruption, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.

9. The instalment (EMI) for my loan is automatically paid through my account with Paytm Payments Bank. Can this continue?

Auto debit mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience, it is suggested that you make alternative arrangements for setting up EMI payments through another bank before March 15, 2024.

10. The instalment (EMI) for my loan is automatically paid through my account with a bank other than Paytm Payments Bank. Can this continue?

Yes, EMIs registered with any bank other than Paytm Payments Bank can continue.

Paytm Payments Bank Wallet

11. I have a wallet with Paytm Payments Bank. Can I continue to use money from this wallet after March 15, 2024?

Yes. You can continue to use, withdraw or transfer to another wallet or bank account upto the balance available in the wallet. Minimum KYC wallets1 can, however, be used only for merchant payments.

12. I have a wallet with Paytm Payments Bank. Can I top-up or transfer money into this wallet after March 15, 2024? Can I receive money from any other person into this wallet after March 15, 2024?

No. After March 15, 2024 you will not be able to top-up or transfer money into the wallet or receive any credits, other than cashbacks, or refunds into this wallet.

13. I have a cashback due in my wallet with Paytm Payments Bank. Can I receive this cashback after March 15, 2024?

Yes. Refunds and cashbacks are allowed to be credited.

14. I have a wallet with Paytm Payments Bank. Can I close this wallet and have the balance transferred to my bank account with another bank?

Yes. You may approach Paytm Payments Bank or use its banking app to close your wallet and transfer the balance to an account maintained with another bank in the case of full KYC wallets. In the case of minimum KYC Wallets2, you may use the available balance or request for a refund.

FASTag issued by Paytm Payments Bank

(for more details on FASTag, you may visit website of IHMCL https://ihmcl.co.in)

15. I have a FASTag issued by Paytm Payments Bank. Can I continue to use it to pay toll after March 15, 2024?

Yes. You can continue to use your FASTag to pay toll upto the available balance. However, no further funding or top ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

16. I have a FASTag issued by Paytm Payments Bank. Can I recharge the balance after March 15, 2024?

No. After March 15, 2024 you will not be able to top-up or recharge your FASTag issued by Paytm Payments Bank. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

17. Can I transfer the balance from my old FASTag issued by Paytm Payments Bank to a new FASTag obtained from another Bank?

Credit balance transfer feature is not available in the FASTag product. Therefore, you will have to close your old FASTag issued by Paytm Payments Bank and request the bank for a refund.

National Common Mobility Card (NCMC) issued by Paytm Payments Bank

18. I have an NCMC card issued by Paytm Payments Bank. Can I continue to use it after March 15, 2024?

Yes. You can continue to use your NCMC card upto the available balance. However, you will not be able to load or top up funds into the card after March 15, 2024. In order to avoid inconvenience, it is suggested that you obtain an NCMC card issued by another bank or non-bank pre-paid instrument (PPI) issuer, before March 15, 2024.

19. I have an NCMC card issued by Paytm Payments Bank. Can I add to its balance through top-up, recharge, etc. after March 15, 2024?

No. After March 15, 2024 you will not be able to top-up or recharge your NCMC card issued by Paytm Payments Bank. In order to avoid inconvenience, it is suggested that you obtain an NCMC card issued by another bank or non-bank pre-paid instrument (PPI) issuer, before March 15, 2024.

20. Can I transfer the balance from my old NCMC card issued by Paytm Payments Bank to a new card obtained from another Bank?

Balance transfer feature is not available in the NCMC card. Therefore, you may use the card upto the available balance. In case you have some more balance which you have not been able to use, you may request Paytm Payments Bank for a refund.

Merchants using Paytm Payments Bank to receive payments

21. I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox or Paytm POS terminal, linked to another bank account (not with Paytm Payments Bank). Can I continue to use this set-up even after March 15, 2024?

Yes. If your receipt and transfer of funds is linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.

22. I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox, Paytm POS terminal linked to my bank account or wallet with Paytm Payments Bank. Can I continue to use this set-up even after March 15, 2024?

No. After March 15, 2024 you will not be able to receive any credit into your bank account or wallet with Paytm Payments Bank other than refunds, cashbacks, sweep-in from partner banks or interest. In order to avoid any inconvenience or disruption, it is suggested that you may obtain a fresh QR code linked to an account with another bank or wallet to receive payments. You may also change your bank account details (in which you receive payments) through your service provider.

Bharat Bill Payment System (BBPS)

23. Can I make payments through the Bharat Bill Payment System (BBPS) using my account with Paytm Payments Bank?

Yes. You can continue to make payments from your Paytm Payments Bank account through Bharat Bill Payment System upto the balance available in your account. Since you will not be able to credit any further funds into your accounts or wallets with Paytm Payments Bank after March 15, 2024, it is advised that you may make alternative arrangements with another bank account for BBPS before March 15, 2024.

Aadhar enabled Payment System (AePS)

24. Can I make withdrawals from my Paytm Payments Bank account with biometric authentication under Aadhar enabled Payment System?

Yes. You can continue to withdraw using the AePS authentication, upto the balance available in your account.

Money Transfer through UPI/ IMPS

25. Can I transfer my money into my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?

No. You cannot transfer the money into your Paytm Payments Bank account after March 15, 2024.

26. Can I withdraw my money from my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?

Yes. You can withdraw your money from Paytm Payments Bank account through UPI/ IMPS upto the balance available in your account.

Paytm Payments Bank Business Correspondent

27. I have an account with Paytm Payments Bank. Can the Paytm Payments Bank Business Correspondent (also referred to as Paytm Payments Bank Agent) help me in withdrawing funds from my account after March 15, 2024.

Yes. The Paytm Payments Bank Business Correspondent (Bank Agent) can help you to withdraw money from your bank account upto the balance available in your account.

Accounts frozen, lien marked etc.

28. What will happen to my Paytm Payments Bank account/wallet if there is a lien or freeze marked on the directions of Law Enforcement or judicial authorities?

Any lien or freeze (full or partial) marked as per the instructions of any law enforcement or judicial authorities on the account/wallet of a customer with Paytm Payments Bank will continue to be governed by the orders passed by such authorities.

29. What will happen to my Paytm Payments Bank account/ wallet if there is a lien or freeze marked on account of internal policies of Paytm Payments Bank?

The bank has been directed to allow withdrawal or transfer to another bank account of the customer, upto the available balance in the account / wallets.

Onboarding of new customers

30. What is the status of the Business restriction placed on Paytm Payments Bank vide RBI Press Release dated March 11, 2022?

The business restriction dated March 11, 2022, prohibiting Paytm Payments Bank from onboarding any new customers for any of its services continues to be in force. Hence, Paytm Payments Bank cannot onboard any new customers after March 11, 2022.

(updated as at February 16, 2024)

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1 As per extant directions, small pre-paid Instruments (PPI) are issued by banks and non-banks after obtaining minimum details of the PPI holder. They can be used only for purchase of goods and services. Funds transfer or cash withdrawal from such PPIs are not permitted.

2 As per extant directions, small pre-paid Instruments (PPI) are issued by banks and non-banks after obtaining minimum details of the PPI holder. They can be used only for purchase of goods and services. Funds transfer or cash withdrawal from such PPIs are not permitted.

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

 

GST ISSUE ADVISORY ON BANK ACCOUNT VALIDATION

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:

https://www.gst.gov.in/newsandupdates/read/579

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.

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:

https://www.incometax.gov.in/iec/foportal//latest-news#206a6550-3d84-4d79-ba9a-ff5d34181d94

STEP BY STEP PROCESS TO RESOLVE MCA DSC NOT REGISTERED ERROR

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 

#SPICEFORMUPLOADERROR #MCAHELPDESK #MCA21 #V3PORTAL #MCADSCERRORS

INCOME TAX RELIEF UNDER ECONOMIC PACKAGE PART -1 (COVID 19 ECONOMIC PACKAGE)

DETAILS OF ECONOMIC PACKAGE 2020 PART-1

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

Classification		Micro		Small		Medium
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.


DISCOMs

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


INCOME TAX RELIEFS

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.


OTHER RELIEFS

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.

FAQs on The Income Tax Declaration Scheme, 2016

FAQs

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)

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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

500

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

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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

Everything You Need to Know about The Income Tax Declaration Scheme, 2016

Everything You Need to Know about

The Income Tax Declaration Scheme, 2016

The Income Tax Declaration Scheme, as the name suggest is disclosure of Income which has escaped assessment under Income Tax Laws. The Scheme defines the criteria of Income to be termed as Undisclosed, manner of its disclosure and Tax thereon. Before we start detailed analysis of the scheme it is important to know the reasons for bringing such a scheme for the citizens of India.

No Extention of Due Date for E filing Tax Audit Reports and Income Tax Returns

Since the last date for filing Income Tax return is finally over, all the Tax Practitioners  has started Efiling the Tax Audit Report and Income Tax returns of Audited as well as company form of Tax Payers. Rumors has already been running nation wide that Last date of filing Income Tax Returns for these Tax Payers will increase to 31st October or 30th November. Due to which many Income Tax payers who are required to get Tax Audit done can be seen relaxing. But today Ministry of Finance has issued some bad news for them.  Ministry of Finance has recently issued Press Release in which it has clearly mentioned that:

"No Extension of Date for Filing of Returns due by 30th September for Assessment Year 2015-16 for Certain Categories of Assessees Including Companies, and Firms and, Individuals Engaged in Proprietary Business/Profession etc whose Accounts are required to be Audited; Taxpayers are Advised to file their Returns Well in Time to Avoid Last Minute Rush "

Income Tax Return Filing Dates Extended to 7th September (All Taxpayers)

Last date for filing Income Tax Return for AY 2015-2016 was extended earlier to 31st August from 31st July 2015. After the end of due date CBDT has been receiving a lot of representations from various groups regarding hardships faced in filing of Income Tax Returns. The dates were Increased for Gujarat recently but nothing was done for Other states taxpayers. After a lot of representations CBDT has finally increased the due date for filing the Income Tax Returns for AY 2015-2016 to 7th September, 2015.

Efiling of ITR 6 and ITR 7 is Enabled

Income Tax Department has recently notified ITR Forms for AY 2015-2016 for filing manually to Income Tax Department. Department has also issued Utility for Efiling of these ITR1, ITR2, ITR3, ITR4, ITR4S and ITR5 till now and same has also been enabled at Income Tax Website for Efiling. To read our Updates regarding these forms please click on below mentioned links:

• Efiling of ITR 3, ITR 4 and ITR 7 Now Available
• Income Tax AY 2015-2016- ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 notified
• Efiling ITR-2 and ITR 2-A now Available
• Efiling of ITR 1 and ITR 4S AY 2015-2016 now Available

10 Changes in Income Tax Return Forms for the Assessment Year 2015-2016

Recently Income Tax Department has issued new ITR forms for Assessment Year 2015-2016. These new forms are also available at efiling portal for Efiling Income Tax Returns. As the last dates for filing these forms are coming close, we have come with our Another list- 10 Changes in Income Tax Return for the Assessment Year 2015-2016.

Most of us rely on Income Tax Return preparation Softwares to Efile Income Tax Returns. We feed the details and software provide us with the Computation, missing data and errors in our XML file and we finalize our Income Tax Return. But have we ever wondered, if the rules used by the software companies are not correct. What will happen then? The answer is coming to us regularly these days in the form of Notice of Defective returns under section 139(9) or wrong processing of the returns under section 143(1). To save oneself and clients we should always look the manual copy of return before efiling it and also try to read the XML file (if possible). Here we are giving 10 things that has changed in ITR this assessment year and we should check it before filing the Income Tax Returns.

Allahabad Bank Concurrent Auditor Empanelment for 2015-2016

Allahabad Bank Invites Application from Chartered Accountants Firms for Empanelment as Concurrent Auditor/Revenue Auditor for the year 2015-2016. The application is to be given in the format prescribed by the Bank and it shall reach the Dy.General Manager, Inspection Deptt, Concurrent Audit Cell, Head office, Fourth Floor, 14, India Exchange Place, Kolkata –700001 only by postal service / courier. The last date for submitting application is 18th August 2015.

Efiling of ITR 3, ITR 4 and ITR 7 Now Available

As the last date to Efiling the Income Tax returns for Non Audited as well as Audited Income Tax Returns are coming close, Income Tax Department is in huge pressure to issue the relevant forms and Utility for accepting the returns.Two days ago we have updated our readers with the notification where by which Income Tax Department has notified the new ITR Forms ITR3, ITR 4, ITR5, ITR 6 and ITR 7. To read the full notification click on below mentioned link:

Income Tax AY 2015-2016- ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 notified

CA-IPCC May 2015 Results Declared (Rankholders and Pass Percentage)

The Institute of Chartered Accountants of India has today on 31st July 2015 declared the results of CA-IPCC. The examination of different levels of Chartered Accountant Course was held in the month of May 2015 and the results of the CA-Final and CA-CPT was declared earlier this month. To check merit list, pass percentage and results of CA-Final and CA-CPT please click on below mentioned link:

• CA Final and CPT Results May/June 2015 Declared (Rankholders and Pass Percentage)

To check your results please click on below mentioned link of ICAI:

http://www.caresults.nic.in/

Income Tax AY 2015-2016- ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 notified

The wait is finally over, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 has been notified by the Income Tax Department for AY 2015-2016. After waiting for approximately 4 months since the start of the Assessment year, Income Tax has finally given the new ITR forms from ITR 3 on wards.

Income Tax Department has already notified the ITR 1, ITR 2, ITR 2A and ITR 4S earlier this month. To read the News of the same click on below mentioned link:

Efiling ITR-2 and ITR 2-A now Available

Efiling of ITR 1 and ITR 4S for AY 2015-2016 now Available

The new forms will be available for Efiling shortly, till than the Tax Payers and Professionals can take as overview of the form and prepare themselves and their clients for the same. The full notification regarding the new forms is given below:

IPCC May 2015 Result Dates

ICAI has recently notified the result dates for IPCC May 2015 attempt. The CA Final and CPT results was recently issued by the ICAI, to view the Rankholders, Pass Percentage and Results, click on below mentioned link:  http://www.casamachar.com/2015/07/ca-final-and-cpt-results-mayjune-2015.html Given below is the notification issued by the Institute of Chartered Accountants of India regarding the date of the results: The Result of the Chartered Accountants Intermediate (Integrated Professional Competence) Examination held in May, 2015 is likely to be declared on Friday, the 31st July, 2015. - (24-07-2015)

ICAI Examination Dates for Novermber 2015 Announced

Institute of Chartered Accountants has recently announced the Exam Schedule for Novermber 2015 Examination of Chartered Accountant Course. The examination usually happens in the month of May and November 2015. The results for CA Final Examination for May 2015 is already out and of CA IPCC May 2015 is still awaited. To Check CA Final Results, click on below mentioned link:

http://www.casamachar.com/2015/07/ca-final-and-cpt-results-mayjune-2015.html

Bank Audit MEF Hosted by ICAI For 2015-2016

As the First quarter of the Financial year 2015-2016 has just completed, Institute of Chartered Accountants of India has started accepting forms from Eligible Chartered Accountant Firms for Audit of Bank Branches all over India. ICAI prepares a list of Eligible Chartered Accountant firms and this list is forwarded to RBI, which in turn forwards it to Public Sector Banks for Selection. This Multi Purpose Empanlment Forms are also used by RRBs and Co-operative Banks to Select their Auditor.

The Form can be filed from the following link: http://meficai.org/