An overview of Anti Money Laundering Laws Free e-book

In this wonderful time of the year let us spend some time on one of the most interesting topics “Prevention of Money Laundering Act, 2002”. It has for long been one of the most discussed, debated and criticized topic. A simple understanding of money, its source, the proceeds of crime, its utilization, namely money laundering, the nature of crimes, the scheduled offences, punishments, the authority, adjudication and above all prevention of money laundering.
I have prepared a small write up on “The Prevention of Money Laundering Act, 2002”. The write up aims at presenting a simple understanding of the source, handling and prevention of money laundering. Growing money laundering crimes is a threat to both the individual and economy and the real point lies in curtailing its source and happening. The write up also offers a sneak peek into various other legislations of similar nature. In short, a simple guide to identify, handle and prevent money laundering.

Knowledge Management has been the key in handling the various pressures of the profession and also in pursuing my passion for the profession. With the same spirit I look forward to join hands with each one of you in building a great professional network that will together enable us to discard the negativities and take our profession forward with reverence and commitment.
In this journey of commitment, I look forward to join hands with members who are good Speakers and Writers, cause knowledge is not just about knowing but more about sharing. Each one of you are a great source of inspiration and so I am willing to get inspired and create a synergy of joint knowledge development programs that will benefit our fraternity at large.
As always, kindly send your comments and suggestions at [email protected] or reach me at 09820061049 / 09323061049.

Click here to download “Handbook on The Prevention of Money Laundering Act, 2002”

	PAN Not Available		PAN Applied For		Invalid PAN
	Instances	TDS	Instances	TDS	Instances	TDS
Q1 2013-14
Q2 2013-14
Q3 2013-14
Q4 2013-14

	PAN Not Available		PAN Applied For		Invalid PAN
	Instances	TDS	Instances	TDS	Instances	TDS
Q1 2013-14
Q2 2013-14
Q3 2013-14
Q4 2013-14

• You would not have been able to generate TDS Certificates for deductees with such PANs. In case, you have issued TDS Certificates outside TRACES, they will not be valid.
• In view of CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.
• Correct TDS Credits in 26AS statements to the taxpayers will not be available and they will not be able to avail the same, while filing their Income Tax Returns.
• As per section 206AA of the Income Tax Act, the tax is to be deducted at a higher rate, in case of “Not Available/ Invalid PANs”. Therefore, Short Deduction, including Interest is charged, if the tax has not been deducted at higher rate or Section Rate, whichever is higher, as per the provisions of section 206AA.

• TRACES provides for a user friendly “Online Correction facility with Digital Signatures” for correction of PANs. To avail the facility, you are requested to Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu.
• You may also download the Conso Files and Justification Reports from TRACES to identify the above errors and submit C5 Correction Statement to correctly complete the details of the deductees.
• PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to Login to TRACES and navigate to “Dashboard” to locate “PAN Verification” in the Quick Links menu.
• You can make use of the “Consolidated TAN – PAN File” that includes all the valid PANs attached with the respective TANs. To avail the facility, Login to TRACES and navigate to “Dashboard” to locate “Consolidated TAN – PAN File”.

Get Aadhar Number Enrolled by SMS / IVRS / Internet / Post / Call Centres

Indian Government has provided five choices to enroll AADHAAR number with LPG distributors.   Consumer can opt any choice  at per his convenience.
Through Call Center
Through Internet 
Through SMS
Through IVRS 
Through  Post. 

Requirements for submission AADHAAR NUMBER are given below for selection any above mode.
LPG CUSTOMER NUMBER
DISTRIBUTOR TELEPHONE NUMBER/CODE
AADHAAR NUMBER
MOBILE NUMBER


?? CALL CENTER :- Call 18002333555 and inform your Aadhaar number and mobile number to the call center

?? INTERNET  :-  Visit website https://rasf.uidai.gov.in and follow seeding procedure. Click here for Help



?? SMS :- SMS your AADHAAR number and Customer Number  Click Here for procedure . 
                  Click Here to view SMS / IVRS numbers. 
Type:
 UID STATUS
and send it to
51969
For example: if my enrollment number is 1001/15161/01426, then I will send
UID STATUS 10011516101426
to
51969
Note: Don’t forget to remove slashes ‘/’ from your enrollment number like the one shown in the example above.


?? IVRS :-  Call numbers here & follow IVR instructions Click here to view SMS/ IVRS number.

?? POST :-  Aadhaar numbers can also be submitted in form of Aadhaar Letters.
Click here for Post Enrolled Aadhar status.

CLICK HERE TO GET ALL ABOVE INFOMATION IN ONE PAGE

INC-1  - Application for reservation of name

INC-2 - Incorporation and nomination (One Person Company - OPC)

INC-3 - Consent of nominee of OPC

INC-4 - Change in member / nominee of OPC

INC-5 - Intimation of exceeding threshold of OPC i.e. ceased being an OPC
INC-6 - Application for Conversion of Private company into OPC

INC-7 -  Application for Incorporation of Company (Other than OPC)
INC-8 - Declaration from the professional, during incorporation, as to compliance with the Companies Act, 2013 and related Rules

INC-9 - Affidavit from subscribers, during incorporation, stating he is not convicted of any offence in
connection with formation of company and has not been guilty of any fraud before under the law
INC-10 - Form for verification of signature of subscribers by witness (while filing particulars of subscriber with the RoC)
INC-11 - Certificate of Incorporation

Click here to Download and Get Detailed PDF. (List of Farms of Companies Act 2013.)

Issue of shares under the Companies Act’2013 by Private Limited Companies    
1)  Methods of issue of shares:  
A) Private Placement (Section 42 of the Companies Act’2013, Rule 14)
B) Preferential allotment/Preferential offer
C) Right Issue
D) Conversion of Loan/Debentures into shares.
E) Bonus issue

A) Private Placement (Section 42 of the Companies Act’2013, Rule 14)  
1)  “Private placement” means any offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) through issue of a private placement offer letter and which satisfies the conditions specified in section 42.
Conditions under section 42 are:
Private Placement should be done through offer letter (PAS-4).

2) A private placement offer letter shall be accompanied by an application form serially numbered and addressed specifically to the person to whom the offer is made and shall be sent to him, either in writing or in electronic mode, within thirty days of recording the names of such persons in accordance with sub-section (7) of section 42 of the Act.

3) The offer shall not be less than Rs. 20,000/- per subscriber of face value of shares.

4) Subscriber should have a separate bank account from where the subscription should be made.

5) The Private Placement offer should be made only after passing a special resolution by the shareholders.

6) The price of the private placement should be determined:
a) The explanatory statement annexed to the notice for the general meeting should define the basis or justification for the price (including premium, if any) at which the offer or invitation is being made shall be disclosed.

7)  No fresh offer or invitation shall be made unless the allotments with respect to any offer or invitation made earlier have been completed or withdrawn or abandoned by the company – Section 42(3).

8)  Company shall allot its securities within sixty days from the date of receipt of the application money for such securities and if the company is not able to allot the securities within that period, it shall repay the application money to the subscribers within fifteen days from the date of completion of sixty days and if the company fails to repay the application money within the aforesaid period, it shall be liable to repay that money with interest at the rate of twelve per cent per annum from the expiry of the sixtieth day – Section 42(6).

9)  The company shall maintain a complete record of private placement offers in Form PAS-5 and also file alongwith private placement offer letter in Form PAS-4 with ROC within a period of thirty days of circulation of the private placement offer letter. (Date written in the private placement offer letter is the date of circulation of offer letter)
10) A return of allotment of securities under section 42 shall be filed with the ROC within thirty days of allotment in Form PAS-3. (Like Form-2 of the Old Act)
11)  Contravention of Section 42 of the Act attracts penalty which may extend to the amount involved in the offer or invitation or two crore rupees, whichever is higher, and the company shall also refund all monies to subscribers within a period of thirty days of the order imposing the penalty Section 42(10).

B) ISSUE OF SHARES ON PREFERENTIAL BASIS:
A company may, if authorized by a special resolution passed in a general meeting, issue shares in any manner whatsoever including by way of a preferential offer, to any person(s) whether or not those persons include the persons referred to in clause (a) or clause (b) of sub-section (1) of section 62 (i.e existing shareholders or employees of the Company). Such issue on preferential basis should also comply with conditions laid down in section 42 of the Act (private placement). A valuation report of registered valuer determining the price of shares is also mandatory.
1) Preferential issue means offer of shares by a Company to a select person or a group of persons on a preferential basis but does not include offer of shares through right issue, public issue, ESOP, bonus issue etc.
2) The issue of shares on preferential basis should be authorised by the articles of association of the company.
3) The issue should be made fully paid up at the time of allotment only.
4)      The explanatory statement should disclose the necessary facts about the allotment.
5)      Preferential allotment should be made/complete within 12 months of special resolution.
6)      Valuation to be determined by registered valuer.

C) RIGHTS ISSUE OF SHARES:
As per section 62 of the Act Where at any time, a company having a share capital proposes to increase its subscribed capital by the issue of further shares, such shares shall be offered—
1)  to its existing shareholders (OR needs to be passed, if provision there in the AOA)
2)   to employees under a scheme of employees’ stock option, subject to special resolution passed by company.
3) to any persons, if it is authorised by a special resolution, whether or not those persons include the persons referred to in clause (a) or clause (b), either for cash or for a consideration other than cash, if the price of such shares is determined by the valuation report of a registered valuer.
4) Letter of offer for right issue of shares needs to be made and given to existing shareholders for making Right Issue of shares.
5) Shareholders will be given 15-30 days for accepting the right issue of shares from the date of offer letter.

D) CONVERSION OF LOANS OR DEBENTURES INTO SHARES:
A private company may convert loans raised by the company or debentures issued by the company into shares by passing of special resolution if there is such a term attached to the debentures issued or loan raised by the company to convert such debentures or loans into shares in the company – Section 62(3).
E) Bonus issue:
Conditions
 1)  Must be authorised by the articles otherwise the articles need to be amended.
 2)  Resolution in the general meeting needs to be passed.
 3) The Company has not defaulted in repayment of the statutory dues, Fixed deposits or debt securities.
 4) All shares must be made fully paid up before making bonus issues.
 5)  Bonus issue can be made out of:      
 →Free reserves
→Securities premium Account
→Capital Redemption Reserve
Note: Once a Bonus issue is announced, it cannot be withdrawn.
Hope you find the above information in order.

Recently, Hon’ble Karnataka High Court in the matter ofK. Madhav Kamath Brother & Co. v. Asst. Comm. of Central Excise, pronounced that even if service tax is paid prior to Show Cause Notice, still the penalty shall be leviable u/s 76/78, 77 of Finance Act’94.
Brief facts of the case: 
The matter pertains to the periodJan’06 to Oct’06. The department issued SCN for non-filing of return& non-payment of service tax along with the levy of penalty on the same(within the SCN itself) u/s 76/78 & 77 of Finance Act’94
However, the assessee deposited the  service tax liability before issuance of SCN.
The assessee contended that since there wasn’t any intention to evade service tax, and non-filing of returns/non-payment of tax was merely bonafide mistake, hence penalty couldn’t be levied.
On appeal being filed before CESTAT-Bnglr,the tribunal rejected the plea of assessee and upheld the levy of penalty. Subsequently, appeal was filed before High Court.
The High Court also held that even if service tax is paid prior to issuance of SCN, it doesn’t preclude from levy of penalty u/s 76/78 & 77 of ibid.
Comment : 
The aforesaid judicial pronouncement pertains to Jan’06 to Oct’06, however, from 8th May’10, explanation 2 to section 73(3) was inserted to grant relief from penalty, but that too in case both(i.e. service tax as well as interest) were paid before issuance of SCN.
Therefore, it would be interesting to see if department can take advantage of the the said judgement for levying penalty in cases post May’10 wherein service tax was paid before issuance of SCN but interest wasn’t deposited?

 GOVT will undertake more steps to facilitate ease of doing business as part of the ‘Make in India' initiative. Inaugurating the one-day National Workshop on Sectoral Perspectives & initiatives: Creating an enabling framework for stimulating investments for 'Make in India', Finance Minister Arun Jaitley said that number of steps have been taken in the past seven months to facilitate an investor friendly climate in the country. However, manufacturing still remains a challenge. Stressing on the need for manufacturing growth to ensure employment for youth of the country, the Finance Minister underlined several initiatives to facilitate ease of doing business in the country. “Entry point has to be eased, initial barriers lowered and removed, and after entry, enabling environment has to be created.” The Finance Minister stressed on the need for streamlining the dispute resolution mechanism. Noting that availability of lands for manufacturing has to undergo a complex procedure, Mr Jaitley talked of the plan to remove such bottlenecks and to ensure that “our regime is competitive.” 

The Minister of State (Independent Charge) for Commerce & Industry Nirmala Sitharaman termed the National Workshop as an unique initiative. “Nothing of this scale has been attempted in the recent memory. This National Workshop is aimed at getting industry and government on the same platform.” Ms. Sitharaman said that discussions would be held on the results of the recent initiatives and also for the new initiatives that need to be undertaken to strengthen the ‘Make in India' initiatives. The Minister said that both Department of Industrial Policy & Promotion and Department of Commerce have taken concrete steps for cutting red tape, simplifying rules and delicensing the business environment.

Eighteen sessions are being held as part of the one-day workshop in which 25 Ministries under the Government of India and all the States have come together to converge and integrate in a professional manner to chart a roadmap for short and medium term to make ‘Make in India' initiative a grand success. 

1. What is annual e-TDS/TCS Return?
Annual e-TDS/TCS return is the TDS return under section 206 of the Income Tax Act (prepared in Form Nos. 24, 26 or 27) or TCS return under section 206C of the Income Tax Act (prepared in Form No. 27E), which is prepared in electronic media as per prescribed data structure. Such returns furnished in a CD/Pen Drive should be accompanied by a signed verification in Form No. 27A in case of Annual TDS returns or Form No. 27B in case of Annual TCS return
Last updted:29.12.2014
2. What is quarterly e-TDS/TCS statement?
TDS/TCS returns filed in electronic form as per section 200(3)/206C, as amended by Finance Act, 2005, are quarterly TDS/TCS statements. As per the Income Tax Act, these quarterly statements are required to be furnished from FY 2005-06 onwards. The forms used for quarterly e-TDS statements are Form Nos. 24Q, 26Q and 27Q and for quarterly e-TCS statement is Form No. 27EQ. These statements filed in CD/Pen Drive should be accompanied by a signed verification in Form No. 27A in case of both e-TDS/TCS statements.


3. Who is required to file e-TDS/TCS return?
As per Income Tax Act, 1961, all corporate and government deductors/ collectors are compulsorily required to file their TDS/TCS returns on electronic media (i.e. e-TDS/TCS returns). However, deductors/collectors other than corporate/government can file either in physical or in electronic form.

4. e-TDS/TCS returns have been made mandatory for Government deductors. How do I know 
whether I am a Government deductor or not?
All Drawing and Disbursing Officers of Central and State Governments come under the category of Government deductors.

5. Under what provision should e-TDS/TCS returns be filed?
An e-TDS return should be filed under Section 206 of the Income Tax Act in accordance with the scheme dated August 26, 2003 for electronic filing of TDS return notified by the Central Board of Direct Taxes (CBDT) for this purpose. CBDT Circular No. 8 dated September 19, 2003 may also be referred.
An e-TCS return should be filed under Section 206C of the Income Tax Act in accordance with the scheme dated March 30, 2005 for electronic filing of TCS return notified by the CBDT for this purpose.
As per section 200(3)/206C, as amended by Finance Act 2005, deductors/ collectors are required to file quarterly TDS/TCS statements from FY 2005- 06 onwards.

6.Who is the e-Filing Administrator?
CBDT has appointed the Director General of Income Tax (Systems) as e-Filing Administrator for the purpose of electronic filing of TDS/TCS returns.

7. Who is an e-TDS/TCS Intermediary?
BDT has appointed National Securities Depository Limited, (NSDL), Mumbai, as e-TDS/TCS Intermediary. NSDL has established TIN Facilitation Centres (TIN-FCs) across the country to facilitate deductors/ collectors file their e-TDS/TCS returns.

8. How should the e-TDS/TCS return be prepared?
e-TDS/TCS return has to be prepared in the data format issued by e-Filing Administrator. This is available on the Income Tax Department website (www.incometaxindia.gov.in) and NSDL-TI N website (www.tin-nsdl.com). There is a validation software (File Validation Utility) available along with the data structure which should be used to validate the data structure of the e-TDS/TCS return prepared. The e-TDS/TCS return should have following features:
Each e-TDS/TCS return file should be in a separate CD/Pen Drive.
Each e-TDS/TCS return file should be accompanied by a duly filled and signed (by an authorised signatory) Form No. 27A in physical form.
Each e-TDS/TCS return file should be in one CD/Pen Drive. It should not span across multiple floppies.
If an e-TDS return file is required to be compressed, it should be compressed using Winzip 8.1 or ZipItFast 3.0 compression utility (or higher version thereof) to ensure quick and smooth acceptance of the file.
Label should be affixed on each CD/Pen Drive mentioning name of the deductor, his TAN, Form no. (i.e. 24, 26 or 27) and period to which the return pertains.
There should not be any overwriting/striking on Form No. 27A. If there is any, then the same should be ratified by an authorised signatory.
No bank challan or copy of TDS/TCS certificate should be filed alongwith e-TDS/TCS return file.
In case of Form Nos. 26 & 27, deductor need not file physical copies of certificates of no deduction or lower deduction of TDS received from deductees.
In case of Form 24, deductor should file physical copies of certificatesof no deduction or deduction of TDS at lower rate, if any, receivedfrom deductees. However, there is no such requirement in case of
Form 24Q.
e-TDS/TCS return file should contain TAN of the deductor/collector without which, the return will not be accepted.
CD/Pen Drive should be virus-free.
In case any of these requirements are not met, the e-TDS/TCS return will not be accepted at TIN-FCs.

9. Is there any software available for preparation of e-TDS/TCS return?
NSDL has made available a freely downloadable return preparation utility for preparation of e-TDS/TCS returns. Additionally, you can develop your own software for this purpose or you may acquire software from various third party vendors. A list of vendors, who have informed NSDL that they have developed software for preparing e-TDS/TCS returns, is available on the NSDL-TIN website.

10.Are the forms used for e-TDS/TCS return same as for physical returns?
Forms for filing TDS/TCS returns were notified by CBDT. These forms are same for electronic and physical returns. However, e-TDS/TCS return is to be prepared as a clean text ASCII file in accordance with the specified data structure (file format) prescribed by ITD

CLICK HERE TO GET FULL FAQs ON E FILIFING OF TDS RETURNS IN WORD

Admissions of Undisclosed Income under coercion/pressure during Search/Survey - reg. - Circular - Dated 18-12-2014 - Income Tax

F. No. 286/98/2013-IT (Inv.II) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Room No. 254, North Block New Delhi, the 18th December, 2014 To 1. All Principal Chief Commissioners of Income Tax 2. All Chief Commissioners of Income Tax 3. All Directors General of Income Tax (Inv.) 4. Director General of Income Tax (I & CI), New Delhi Subject: Admissions of Undisclosed Income under coercion/pressure during  Search/Survey - reg. Ref:        1)    CBDT letter F. No. 286/57/2002-IT(Inv.II) dt. 03-07-2002               2)    CBDT letter F. No. 286/2/2003-IT(Inv.II) dt. 10-03-2003               3)    CBDT letter F. No. 286/98/2013-IT(Inv.II) dt. 09-01-2014 Sir/Madam, Instances/complaints of undue influence/coercion have come to notice of the CBDT that some. assessees were coerced to admit undisclosed income during Searches/Surveys conducted by the Department. It is also seen that many such admissions are retracted in the subsequent proceedings since the same are not backed by  credible  evidence.  Such actions defeat the very purpose of Search/Survey operations as they fail to bring the undisclosed income to tax in a sustainable manner leave alone levy of penalty or launching of prosecution. Further, such actions show the Department as a whole and officers concerned in poor light. 2.   I am further directed to invite your attention to the Instructions/Guidelines issued by CBDT from time to time, as referred above, through which the Board has emphasized upon the need to focus on gathering evidences during Search/Survey and to strictly avoid obtaining admissionof undisclosed income under coercion/undue influence. 3.   In view of the above while reiterating the aforesaid guidelines of the Board, I am directed to convey that any instance of undue influence/coercion in the recording of the statement during Search/survey/Other proceeding under the I.T. Act, 1961 and/or recording a disclosure of undisclosed income under undue pressure/coercion shall be viewed by the Board adversely. 4.   These guidelines may be brought to the notice of all concerned in your Region for strict compliance. 5.   I have been further directed to request you to closely observe/oversee the actions of the officers functioning under you in this regard. 6.    This issues with approval of the Chairperson, CBDT (Jai Nath Verma) DCIT, OSD, (Inv. II), CBDT

Government has provided online facility to Link your  Unique 12 digit AADHAAR number with LPG in the interest of their consumers.   There are four easy steps to complete the process.
Enter Location Detail
Select the benefit type and details you want to link with your AADHAAR No. & click next.
Enter your 12-digit AADHAAR number & contact Details.
Enter the OTP (one time password) no, sent to your mobile and the security code displayed. Click submit.
Picture of the screen is given below, you may click on picture or link given below to continue the same :-

Continue with above picture Click here

Other important links in the interest of consumers Click Here

--------------------

Bharatgas has started excellent service regading booking/Refill of  Gas, Status of Refill through SMS/Internet/IVRS etc.  Customer feels easy through these services.  He/She can book gas refill  at any time.
24 hr. Bharatgas cylinder booking facilities on www.ebharatgas.com
The Online Customer Service permits the Bharatgas Customer, at registration, to create his / her own Login ID and Password, which will enable him / her to interact online and access information in a secure environment and avail of the following facilities:


»
Place an order for refill cylinder ONLINE

»
View Refill Order Status/Brief History
»
Avail of the Reminder Service
»
Participate in Contests / Promotions as and when organized on the site
The Online facility of booking Bharatgas cylinders is available to all Bharatgas customers.
Refill booking through SMS
This facility is available to all Bharatgas Customers across all Metro cities and State capitals To avail the facility, please follow the steps given below:



»
Click here to Register your Mobile number (for the First Time Only) OR Type on your Mobile REG>space>DistributorSAPCode>space>ConsumberNumber
»
Click here to know DistributorSAPCode
- Send this SMS to 57333
- Vodafone, MTNL,Idea, Airtel & Tata Users can also send this SMS to 52725
- When you register, you will receive an SMS confirming the registration
»
For Refill Booking(through SMS) Type on your Mobile LPG
- Send this SMS to 57333.
- Vodafone, MTNL,Idea, Airtel & Tata Users can also send this SMS to 52725
When you book for refill cylinder, you will receive an SMS confirming the Booking of refill cylinder with booking reference number
When the cylinder is delivered, you will receive an SMS confirming the delivery of the refill cylinder with delivery date.
Refill booking through IVRS on Unique telephone number 1712 or 25517177 for Delhi only
Bharatgas Customers in Delhi can also book a refill cylinder or log a leakage call by dialing our telephone number 1712 or 25517177. These numbers are unique for Bharatgas Customers. The system functions as under:
»
The customer is given the choice of language
»
On selecting the same, the customer is required to say the name of the distributor
»
On confirmation by the system, the customer will key in the consumer number
» The system will confirm the booking and provide a refill-booking number.

Notified Pension Fund under Section 80C(2)(xiv)

[To be published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii)] Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Notification No. 90/2014 New Delhi, the 23 December, 2014 S.O.  (E) - In exercise of the powers conferred by clause (xiv) of sub- section (2) of section 80Cof the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Reliance Retirement Fund set up by the Reliance Mutual Fund registered under the Securities and Exchange of Board of India (Mutual Fund Regulations, 1993) having  registration No. MF/022/95/1, dated the 30th  June, 1995 as a pension fund for the purposes of the said clause for the assessment year 2015-16 and subsequent assessment years. This notification shall come into force from the date of its publication in the Official Gazette. [F. No. 178/63/2012-ITA-I] (Deepshikha Sharma) Director (ITA-I)

 Earlier I had shared that consumers can link online AADHAAR Card with LPG.  Now I want to share that Banks has also provided online facility to link your LPG Id or AADHAAR card.  This facility is available for those customers who are using Internet Banking facility of the bank.  Recently I have checked this facility in State Bank of India for which a screen view  is given below :-



Now customers are not need to visit at LPG distributor or in Bank for linking AADHAAR card information.  The same can be completed with the help of internet banking facility. 

Important Notes
•
IfaPANisassociatedwithmorethatoneTANsforexamplePANoftheCentralOffice,Headquarteretc.havingmorethatoneTANofitsbranches,saidPANcanreviewthe
"AggregatedTDSCompliance"
reportonaregularbasistoimproveTDScomplianceatOrganizationlevel.
•
PANcanviewTDSperformanceforallofitsrespectiveTANsbyloggingintoTRACESasaTaxpayer.
•
ReferE-tutorialonTaxpayerRegistrationforknowingthestepstoregisterasaTaxpayeronTRACES
•
TheDefaultsgeneratedforalltheTANscanbeviewed.
•
Thereportwillbe
“NotAvailable”
ifthereareNoDefaultsorstatementsareyettobeprocessed.
•
FunctionalityavailableforFinancialYear2007-08onwards.
•
The download of the list of defaults of various TANs associated with a PAN will be available in Excel Format for which a request has to be placed.

LOGIN TO TRACES:







Submitted: Request has been submitted by user.Available: Request has been processed and excel format file is available for download.Not Available : Request has been process and file is not available for download as data requested for selected inputs criteria is not available.Failed : Request has not been processed due to technical issue. System will retry processing in some time

Centralized Processing Cell (TDS), in its constant endeavor to improve services, is glad to update you with a significant change in processing of Quarterly TDS Statements. This change has been initiated in view of feedbacks received from deductors, to avoid defaults that may arise due to inadvertent data entry errors.The central point in the new process is identifying errors in challan/ PANs and facilitating their corrections before CPC (TDS) computes defaults in TDS statements. Following are the salient features of the new process:

What is new ?
1. Step 1: CPC (TDS) will first process Original TDS Statements till the stage of 26AS generation for deductees reported.

2. Step 2: Short Payments and PAN Errors will be identified in the preliminary check of the Original statements.

3. Step 3: The statements will be placed “On Hold” for further processing and an opportunity will be provided to correct potential defaults of Short Payment and PAN Error.

4. When the statement is placed on Hold, CPC (TDS) will intimate you through following means :
e-mail at the Registered e-mail address at TRACES
SMS at Registered Mobile Number with TRACES
Message will be delivered to the Deductor’s Inbox in TRACES

5. The above correction needs to be carried out by using Online Correction feature at TRACES within 7 days of above communication.

It is, therefore, advised that the deductors may ascertain status of the TDS statements within 7 days of filing with TIN Facilitation Centre.

What are the advantages:
You would have preliminary information of potential Short Payments and PAN Errors, before the Original Statement is completely processed for Defaults and Intimations are generated.
Correction of above defaults using Online Correction can be submitted before final processing of statements.
Above action will facilitate avoidance of multiple Correction Statement filing later, after the defaults are identified CPC (TDS) and Intimations have been sent.

What actions to be taken :
Please take note of the Intermediate communication from CPC (TDS) and submit Online Correction for potential defaults in TDS statement within the stipulated time frame.

Only “Online Correction” facility can be used for correction of above Short Payments and PANs
To avail the facility, you are requested to Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down menu.

Please note that Digital Signature will be required to avail the benefit of complete correction features, including PAN Corrections. In view of Q3 filing due date approaching fast, you are requested to procure Digital Signature Certificate at the earliest.

PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to navigate to Dashboard to locate PAN Verification in the Quick Links menu.

You can make use of the “Consolidated TAN – PAN File” that includes all the valid PANs attached with the respective TANs. To avail the facility, please navigate to Dashboard to locate Consolidated TAN – PAN File.
The action requires to be completed within 7 days of Intermediate communication from CPC (TDS).

TO BE PUBLISHED IN PART II, SECTION , SUB-SECTION (ii) OF THE GAZETTE OF INDIA, EXTRAORDINARY| MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION
New Delhi dated the as oca- 2014

Notified Pension Fund under Section 80C(2)(xiv)

SOE) . In exercise of the powers conferred by clause (xiv) of sub-section (2) of section 80C of the Income tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Reliance Retirement Fund set up by the Reliance Mutual Fund registered under the Securities and Exchange of Board of India (Mutual Fund Regulations, 1993) having registration No. MF022/95/1, dated the 30June, 1995 as a pension fund for the purposes of the said clause for the assessment year 2015-16 and subsequent assessment years.

This notification shall come into force from the date of its publication in the Official

Gazette.
7863/2012. ITA1)
DirectorITA1)

TO
The Manager. Government of India Press, Ring Road.

All Rajasthan Vat Consultants Association (ARVCA) (Incorporation under process) has recently given by e-mail on 22.12.2014 Memorandum on VAT issues faced by the Traders and Professionals in the State to Hon. Commissioner of  Commercial Taxes, Rajasthan. The Memorandum Covered the following 16 topics :- 

1. The Input Credit Mismatch 

2. Speed and Capacity of RAJVAT Site 

3.  Late fees on delayed filing of Returns 

4. Issues related to Declaration Forms 

5. Exemption Scheme for Contractors 

6. Vat Audit 

7. CST on MSME Industries 

8. Registration of Dealers 

9. Commodity Based Surveys 

10. Working of CTD 

11. Refunds of Dealers 

12. Input Credit at Check Posts 

13. Entry Tax 

14. Tax Clearance Certificate 

15. Minimum Amount of Appeal 

16. Regular Meetings with professionals

1. Why should you pay taxes? 
You often wonder why you should pay any taxes. Some people think that taxes are paid only by the rich. Some people think that if they do not pay due taxes, nobody will notice. Some people wonder why taxes should be paid, since there is little that one gets in return. You may be surprised by the answers to all of these questions. All of us pay taxes all the time. The services that we get in return are significant and valuable. But you also come across many opportunities for not paying your taxes. A shopkeeper may tempt you not to pay the due tax on a purchase if you choose not to take a proper receipt. A house-owner may show reluctance to give a rent receipt where you may be a tenant. Tax evasion and tax avoidance makes tax authorities aggressive and forces them to make complex provisions in law to plug loopholes. Over time, the tax system becomes extremely complex and difficult to comply with. Interaction between taxpayers and tax authorities often leads to corruption and generation of black money, which has many harmful effects on the economy. It is best if each side, namely, the taxpayer, the policy makers, the spending departments, and tax authorities appreciate their relative roles and their place in the common endeavour towards building a better society and a stronger Indian economy. As a taxpayer, you have a key role to play in this common endeavour. It is illegal not to pay one’s due taxes; by voluntarily paying your due taxes, you contribute to the common good.

2. We pay taxes all the time, sometimes without realising it 
Rich or poor, knowingly or without being aware, reluctantly or willingly, all of us are paying taxes all the time. As we step out of the house to purchase fruits or vegetables, without realising it, the price that is to be paid is likely to contain a tax component. Fruits or vegetables may be in the exempt list of indirect taxes charged by the government. However, if diesel has been used to transport it from the place of production to the market, a tax might have been paid on that diesel, which would already be part of the price. Many taxes are embedded in the prices of goods and services that we purchase. These are called indirect taxes.
There are, of course, more direct taxes that are clearly visible. A salaried employee will be paying an income tax, which may get deducted from his income every month. Every year he will be filing an income tax return. A company will be asked to pay a corporate income tax. A property owner will be asked to pay a property tax. Direct taxes are paid by individuals and companies. Indirect taxes are collected through dealers registered with the tax authorities although the tax is eventually paid by the consumers of goods and services. As you read the newspaper, not only will you be intrigued by the tax cases going on in the courts of law but you yourself will be paying an electricity duty for the light under which you may be reading the newspaper. The list of taxes is long. There are central taxes such as personal income tax, corporate income tax, central excise duty, customs duty, and service tax. There are state taxes such as sales tax and value added tax, stamp and registration duties, state excise duties, motor vehicle tax and entertainment tax. There are taxes charged by municipalities like the property tax. Even local rural bodies like the panchayats have powers of taxation.

We also enjoy the benefits of services provided by governments, sometimes without appreciating it. As you step out of the house, you would unavoidably walk on a road built by the state government, who finances it by taxes that you have paid. You might take a bus to your college of university and pay a price for the bus ticket, which is much less than the cost of providing that transport service. You would then be benefited by a subsidy, also financed by tax revenues. When you decide to go abroad to pursue higher studies, the government will issue a passport so that you are allowed entry in a foreign country. That service is also run by the government and the expenditure that the government incurs for providing that service is financed by tax revenues. Just as there are many taxes, there are also many services that governments provide. The central government provides services like defence, system of justice, and the currency system. It builds national highways and nurtures universities and institutions of higher education like the Indian Institutes of Technology (IITs). State governments also provide many services. They build state level highways, facilitate setting up of industries, run hospitals and schools and colleges, and build irrigation canals.

3 .Tax is a compulsory payment by law 
Taxation is by definition a compulsory payment. It is compulsory by law. There is no one-to-one link between the tax that you pay and the service that you receive. The law has been made because of the special nature of goods and services provided by the government that are financed by tax revenues. The nature of these goods and services is such that they cannot be sold or financed in the same way as private goods that are bought and sold in the market place. When we go to the market, we pay a price according to the quantity we purchase and the type of goods we buy. Whatever we purchase, we have the full right to enjoy the benefits of that exclusively if we so desire. The book that we buy from a bookstore or the meal that we have ordered in a restaurant need not be shared with anyone else. But many services that governments provide are different in nature. In their case, the one-to-one ownership once purchased cannot be applied. These are special economic goods called ‘public goods’. It is difficult to finance them adequately except through taxation, which has to be levied on principles that are different from market principles. In the market, if you do not pay the price, you go without the good. It is your choice. In the case of public goods, if you do not pay the price, you would still enjoy the benefit of the good, because such goods are meant for collective consumption and one individual cannot be isolated from enjoying that service. Since you know that, you may not be willing to pay anything voluntarily. If everybody is allowed that choice, no tax would be raised, and the public good cannot be financed at all. Hence, tax has to be made a compulsory payment.

4. Need for taxes: case of public goods 
Governments finance a category of goods, extremely critical for meeting the combined or joint needs of all citizens in the country that would not be provided unless these are paid for by taxes. Such goods are called public goods. Examples of such goods are defence, general administration, and administration of justice. If you are asked what price you are willing to pay for th country’s defence, you might say that this is a servi e not for you a one but for everybody. If everybody pays something, you might also pay something. But let others pay first. The difficulty is that it is very difficult to charge people according to their preferences, as one would in a normal market. It is not possible to divide defence into each citizen’s separate defence nor is it possible to charge them according to how much they are individually willing to spend for the country’s defence. 

The Centralized Processing Cell (TDS) has released a new feature on its web-portal TRACES, where a Digital Signature Certificate (DSC) can be used for availing various services offered by the portal.
You are advised to take note of the following key information in this regard:
Under Information Technology Act, 2000, a “Digital Signature” means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3.

The Digital Signature keeps record of the person who is availing the facility.
Please exercise caution in use of Digital Signature and should not be shared in any circumstances. If shared, the person using DSC shall also be liable to consequences.

In accordance with the Information Technology Act, 2000, every subscriber shall exercise reasonable care to retain control of the private key corresponding to the public key listed in his Digital Signature Certificate and take all steps to prevent its disclosure to a person not authorised to affix the digital signature of the subscriber
TRACES has provided facility for Admin and Sub-users to facilitate authorised Sub-users to carry out activities on TRACES and submit to the Admin user. The Admin user has the rights to approve the activities using the DSC.

It is therefore, advised to refrain from using the Digital Signature of any person other than the Authorised Person appointed by the deductor, for carrying out any activity on TRACES.
Please note that the “Authorised Person” is referred to as “Person Responsible” in accordance with Section 204 read with Section 200 of the Income Tax Act, 1961 and other relevant provisions for deduction of tax. (Source- Traces)

While one endeavors to derive income, the possibility of incurring losses cannot be ruled out. Based on the principles of natural justice, a set-off should be available for loss incurred. The income tax laws in India recognise this and provide for adjustment and utilisation of the losses. However, there are conditions which have been introduced to prevent misuse of such provisions.

To the common taxpayer, income tax is a crunch into the income earned. Accordingly, awareness of the relevant provisions pertaining to set off and carry forward of losses is essential in order to maximize tax benefits. The relevant provisions have been summarised here:
A) Set off of loss under the same head of income.(section 70) (Intra-head set off)
Income of a person is computed under five heads. ‘Sources’ of income derived by an individual may be many but yet they could be classified under the same head. For instance, an individual may have a dual employment, yet the income would be classified under the head ‘Salaries’. However, given the mechanism of computing taxable salary income, it would be safe to say that an individual cannot incur losses under this head of income.

Consider a situation where Harsh has two properties – one, occupied by him and the other, let out. Harsh pays interest on loan of Rs 1.50 lakh on the property occupied and derives net rental income of Rs 1.50 lakh from the let-out property. In case of a self-occupied property, income is computed as nil and interest expenditure results in loss. The loss of Rs 1.50 lakh can be set off against rent income of Rs 1.50 lakh; the income chargeable under the head ‘House property’ will be ‘Nil’.
An exception to intra head set off is loss under the head ‘Capital gains’, which may arise from transfer of any capital asset. Long-term capital loss arises from transfer of shares or units where holding period is more than 12 months and in respect of other assets holding period is more than 36 months prior to sale. Transfer of assets held for less than prescribed period results in short-term capital loss. Long-term capital loss cannot be set off against short-term capital gains.
Further, loss incurred from speculation loss (eg. from shares or commodities) cannot be set off against any other income.

Also, it is unlikely that the benefit of set off of loss under an activity or source will be available, where the income from an activity or source is exempt from taxation.
Summary of exceptions to Intra-head set off:
1.    Loss from speculation business cannot be set of against profit from an non speculation business
(Interpretation: Loss from non speculative business can be set-off against speculation income)
2.    LTCL can only be set off against LTCG and cannot be set off against STCG
(Interpretation: STCL can be set off against LTCG)
3.    No loss can be set-off against casual income i.e. Income from lotteries, cross word puzzles, betting gambling and other similar games.
4.    No expenses can be claimed against casual income
5.    Loss from the activity of owning and maintaining race horses cannot be set off against other incomes
6.    Loss from an exempted source cannot be set off
(e.g. Share of loss of firm, agricultural losses, cultivation expenses)
B) Set off Loss from one head against Income from another Head (Inter head set off)
A person may have various sources of income computed under different heads of income. Loss under one head of income is generally allowed to be set off against income under another head.
For instance, X has only one property, which is occupied by him and the loss is Rs 1.50 lakh. He derives salary of Rs 10 lakh during the year. Here, he can set off the loss of Rs 1.50 lakh against his salary income by making appropriate declarations to his employer, thereby making his net taxable income Rs 8.50 lakh.
Certain exceptions to the provisions are that the loss from business or profession cannot be set off against salary income. Capital loss, whether long term or short term, can be set off only against capital gains income.

Where during a given year, there is no sufficient income to absorb the loss, unabsorbed loss can be carried forward and set off against income, in the future years as explained here.
Summary of exceptions to Inter-head set off:
1.    Loss from speculation cannot be set of against any other head.
(Interpretation: Loss from other heads can be set-off against business income.)
For Example: House property loss can be set-off against Speculative Incomes but speculation loss cannot be set off against House property)
2.    Business loss cannot be set-off against salary income. (It can be set-off against other incomes)
Loss under the head Capital Gains (LTCL or STCL) cannot be set-off against any other head.
(Interpretation: Loss from other heads can be set-off against Capital Gains)
For Example: HP loss can be set-off against CG but LTCL or STCL cannot be set off against HP
4.    No loss can be set-off against casual income
5.    No expenses can be claimed against casual income
6.    Loss from the activity of owning and maintaining race horses cannot be set off
7.    Loss from an exempted source cannot be set off (e.g. Share of loss of firm, agricultural income, cultivation expenses)
C) Carry forward and set off of losses
Unabsorbed loss under house property, capital loss and business loss can be carried forward for 8 years. Unabsorbed speculation business loss can be carried forward only for a period of 4 years.
Loss can be carried forward and set off even if the business in respect of which it was incurred has been discontinued. However, such loss cannot be set off against income under any other head. An exception exists in respect of unabsorbed depreciation from business which can be set off against any other source of income in the absence of business income and can be carried forward indefinitely, even if the business through which depreciation was incurred has ceased to exist.
Carry forward of losses (other than loss from house property and unabsorbed depreciation) is permissible if the return of income for the year, in which loss is incurred, is filed in time. The late filing of return should not impact the status of carry forward of loss of previous years.
When clubbing provisions apply, loss is required to be clubbed in the same manner as income. Such clubbed loss can be set off and carried forward, as if it is loss determined in the taxpayer’s own case. The successor of business can carry forward and set off the loss of his predecessor, if such succession is by way of inheritance.
In light of the above, taxpayers are advised to be mindful of the relevant provisions and seek guidance, where required, to effectively utilise their losses and achieve optimum tax results.
Conditions in brief related to carry forward and set-off of losses :-
Past year losses can be set-off against income from that respective head of income (Inter head adjustment is not possible)
(e. g. Unadjusted loss of HP for the year 2004-05 c/f Rs. 20,000. This loss can be set-off only against HP income of the year 2007-08 and not under any other head)
The above rule (1) is not applicable to unabsorbed depreciation, which can be set-off against any other head

All losses (Except loss due to owning and maintaining of race horses) can be carried forward and set-off for 8 subsequent financial years following the Previous Year in which such loss arose.
Unadjusted loss due to owning and maintaining of race horses can be carried forward and set-off for 4 subsequent financial years following the Previous Year in which such loss arose.
Unabsorbed depreciation can be carried forward for an unlimited period.
D) Order of Set-off of losses
In case where profits are insufficient to absorb brought forward losses, current depreciation and current business losses, the same should be deducted in the following order
Current scientific research expenditure [Sec. 35(1)].
Current depreciation [Sec. 32(1)].
Brought forward business losses [Sec. 72(1)].
Unabsorbed family planning promotion expenditure [Sec. 36(1)(ix)].
Unabsorbed depreciation [Sec. 32(2)].
Unabsorbed scientific research capital expenditure [Sec. 35(4)].
Unabsorbed development allowance [Sec. 33A(2)(ii)].
Unabsorbed investment allowance [Sec. 32A(3)(ii)].

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Generally an assessee is taxed in respect of his own income. But sometimes in some exceptional circumstances this basic principle is deviated and the assessee may be taxed in respect of income which legally belongs to somebody else. Earlier the taxpayers made an attempt to reduce their tax liability by transferring their assets in favour of their family members or by arranging their sources of income in such a way that tax incidence falls on others, whereas benefits of income is derived by them . So to counteract such practices of tax avoidance, necessary provisions have been incorporated in sections 60 to 64 of the Income Tax Act Hence, a person is liable to pay tax on his own income as well as income belonging to others on fulfillment of certain conditions. Inclusion of other’s Incomes in the income of the assessee is called Clubbing of Income and the income which is so included is called Deemed Income. It is as per the provisions contained in Sections 60 to 64 of the Income Tax Act.

1.TRANSFER OF INCOME WITHOUT TRANSFER OF ASSET (SECTION. 60)

Section 60 is applicable if the following conditions are satisfied:
The taxpayer owns an asset
The ownership of asset is not transferred by him.
The income from the asset is transferred to any person under a settlement, or agreement.
If the above conditions are satisfied, the income from the asset would be taxable in the hands of the transferor

Illustration : Amitabh Bachan owns Debentures worth Rs 1,000,000 of ABC Ltd., (annual) interest being Rs. 100,000. On April 1, 2005, he transfers interest income to Sharukh Khan, his friend without transferring the ownership of these debentures. Although during 2005-06, interest of Rs. 100,000 is received by Sharukh Khan, it is taxable in the hands of Amitabh Bachan as per Section 60


2. REVOCABLE TRANSFER OF ASSETS (SECTION 61)

‘Revocable transfer’ means the transferor of asset assumes a right to re-acquire asset or income from such an asset, either whole or in parts at any time in future, during the lifetime of transferee. It also includes a transfer which gives a right to re-assume power of the income from asset or asset during the lifetime of transferee.

If the following conditions are satisfied section 61 will become applicable.
An asset is transferred under a “revocable transfer”,
The transfer for this purpose includes any settlement, or agreement
Then any income from such an asset is taxable in the hands of the transferor and not the transferee (owner).
Note:-In the case of irrevocable transfer of asset , the income from such assets will be deemed to be the income of the transferee (To whom the asset has been transferred), provided that the transfer is not for the benefit of the spouse of the transferor.

3. INCOME OF SPOUSE
The following incomes of the spouse of an individual shall be included in the total income of the individual:

A REMUNERATION FROM A CONCERN IN WHICH SPOUSE HAS SUBSTANTIAL INTEREST [SECTION 64 (1) (ii)]

Concern – Concern could be any form of business or professional concern. It could be a sole proprietor, partnership, company, etc.

Substantial interest - An individual is deemed to have substantial interest, if he /she (individually or along with his relatives) beneficially holds equity shares carrying not less than 20 per cent voting power in the case of a company or is entitled to not less than 20 percent of the profits in the case of a concern other than a company at any time during the previous year.

If the following conditions are fulfilled this section becomes applicable.
If spouse of an individual gets any salary, commission, fees etc (remuneration) from a concern
The individual has a substantial interest in such a concern
The remuneration paid to the spouse is not due to technical or professional knowledge of the spouse.
Then such salary, commission, fees, etc shall be considered as income of the individual and not of the spouse.

Illustration - X has a substantial interest in A Ltd. and Mrs. X is employed by A Ltd. without any technical or professional qualification to justify the remuneration. In this case, salary income of Mrs. X shall be taxable in the hands of X.

When both husband and wife have substantial interest
Where both the husband and wife have a substantial interest in a concern and both are in receipt of the remuneration from such concern both the remunerations will be included in the total income of husband or wife whose total income,excluding such remuneration, is greater.


(B)INCOME FROM ASSETS TRANSFERRED TO SPOUSE [SECTION 64(1) (IV)]
Income from assets transferred to spouse becomes taxable under provisions of section 64 (1) (iv) as per following conditions:-
The taxpayer is an individual
He/she has transferred an asset (other than a house property)
The asset is transferred to his/her spouse
The asset is transferred without adequate consideration. Moreover there is no agreement to live apart.

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All About Online Correction of e-TDS Returns:
Presentation Contains the details as under:
1. Brief provisions of TDS;
2. Step by Step system Processing of TDS Returns by CPC;
3. Slides containing description as to how to File Online e-TDS correction statements;
4. Advantages of Online e-TDS Correction Statements;
5. Changes in the System of Processing of e-TDS Statements;
6. Requirements of providing Information to Traces about no deduction;
7. Care to be taken while preparing e-TDS returns before submission to avoid incorrect processing;

8. Information about use of Digital Signature for uploading correction statements in case of certain amendments sought.
This will be helpful for TDS Compliances.

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