Regulatory Updates
Regulatory Updates
MCA Updates
Notice inviting comments from various stakeholders on draft rules for the refund process from the IEPF Authority:Regulatory
To simplify and expedite the process of claim refund filed with the IEPF Authority under the Companies Act 2013, a notice was released inviting comments from various stakeholders on the draft rules for the refund process. The Comments may be given in the prescribed format via email iepfa.consultation@mca.gov.in or through the e-consultation module of MCA till15th April 2024. Regulatory Updates
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SEBI Updates
List of Commodity Derivatives under SCRA, 1956: Regulatory updates
The Ministry of Finance, in consultation with the SEBI vide its notification dated March 01, 2024 has notified a new list of goods considered as commodity derivatives under clause (bc) of Section 2 of the SCRA, 1956 in supersession with the earlier notification dated September 27, 2016. Regulatory Updates
With the release of this notification, the Ministry has broadened the list from 91 goods to 104 goods on which the derivatives can be launched. Regulatory Updates
In line with this notification, SEBI has released a circular dated March 05, 2024 amending the Master Circular for Commodity Derivatives Segment dated August 04, 2023 with respect to the references drawn to the earlier notification is being replaced with the new notification. Regulatory Updates
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Repeal of circular(s) outlining the procedure to deal with cases where securities are issued before April 01, 2014, involving offer/allotment of securities to more than 49 but up to 200 investors in a financial year: Regulatory updates
In respect of cases under the Companies Act 1956, SEBI had earlier issued circulars stating that the companies may avoid penal action in respect of issuance of securities to more than 49 persons but up to 200 persons in a financial year if they provide the investors with an option to surrender the securities and receive the refund amount at a price not less than the amount of subscription money paid along with 15% interest p.a. thereon or such higher return as promised to the investors. Regulatory Updates
Now, SEBI vide it’s circular dated March 13, 2024 decided to repeal the aforesaid circulars and the same shall stand rescinded with effect from 6 months from the date of issue of this circular. Regulatory Updates
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Safeguards to address the concerns of the investors on the transfer of securities in dematerialized mode: Regulatory updates
SEBI vide its circular dated March 20, 2024, amended the Master circular for Depositories (dated October 06, 2023) to address the concerns arising out of the transfer of securities from the Beneficial Owner (BO) Accounts without proper authorization by the concerned investor and to strengthen measures to prevent fraud/ misappropriation for inoperative demat accounts. Following are some of the safeguards that are required to be put in place by the depositories and the Depository Participants (‘DPs’). Regulatory Updates
- Depositories must give more emphasis on investor education, particularly regarding the careful preservation of Delivery Instruction Slip (DIS) by the BOs. Regulatory Updates
- The DPs shall not accept pre-signed DIS with blank columns from the BO(s)
- The DPs shall not issue more than 10 loose DISs to one account holder in a financial year (April to March).
- The loose DIS can be issued only if the BOs come in person and sign the loose DIS in the presence of an authorized DP official.
- The DPs shall cross-check with the Bos under exceptional circumstances before acting upon the DIS Regulatory Updates
The provisions of this circular shall come into effect from April 1, 2024. Regulatory Updates
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Introduction of the Beta version of the T+0 rolling settlement cycle on an optional basis in addition to the existing T+1 settlement cycle in Equity Cash Markets: Regulatory updates
SEBI has announced the introduction of the Beta version of the T+0 settlement cycle on an optional basis in addition to the existing T+1 settlement cycle in the equity cash market, for a limited set of 25 scrips and with a limited number of brokers. Further, SEBI vide its circular dated 21 March 2024 stated that to ensure smooth implementation, the Market Infrastructural Institutions like stock exchanges, clearing corporations, and depositories shall publish other operational guidelines (including mechanisms for trading, clearing, and settlement, risk management, etc.) and Frequently Asked Questions. Regulatory Updates
The provisions of this circular came into force with effect from March 28, 2024. Regulatory Updates
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SCORES 2.0 New Technology to strengthen SEBI Complaint Redressal System for investors: Regulatory updates
SEBI has launched the new version of the SEBI Complaint Redress System (SCORES 2.0) with effect from 01.04.2024. Some of the salient features are below: Regulatory Updates
- Reduced and uniform timelines for redressal (i.e. 21 calendar days from the date of receipt of complaint)
- Monitoring of the timely redressal of the investor’s complaints by the Designated Bodies Regulatory Updates
- Two-levels of review if the investors are dissatisfied with the resolutions provided by the concerned regulated entity.
Investors can lodge complaints only through a new version of SCORES i.e. https://scores.sebi.gov.in from April 01, 2024. Investors would not be able to lodge any new complaints in the old version. However, investors can check the status of their complaints already lodged in old SCORES and pending in the old SCORES. Further, the disposed of complaints filed in the old SCORES can be viewed at SCORES 2.0. Regulatory Updates
The old App has been discontinued and a new App in its place will be launched soon. Regulatory Updates
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Income Tax Updates
CBDT notifies ITR-7 for AY 2024-25 Regulatory updates
The Central Board of Direct Taxes (CBDT) has notified a new return form, ITR-7 for the Assessment Year 2024-25, applicable for Charitable and Religious Trust, Political Parties, Scientific Research Institutions and other Universities/Colleges/Institutions. This form will come into effect from April 1, 2024. Regulatory Updates Regulatory Updates
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CBDT notifies amendment in Tax Audit Report and Transfer Pricing Audit Report Regulatory updates
The CBDT has recently announced modifications to the reporting formats of Form 3CD for Tax Audit conducted under section 44AB and Form 3CEB for Transfer Pricing Audit. These changes are aimed at enhancing the efficiency and accuracy of reporting requirements in compliance with taxation regulations. Regulatory Updates
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CBDT notifies non-applicability of TDS for certain payments to the Unit of International Financial Service Centre (IFSC) Regulatory
The CBDT has notified a certain list of payments receivable by a Unit of the International Financial Services Centre (IFSC) where the provisions for Tax Deducted at Source (TDS) will not apply. Regulatory Updates
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CBDT notifies amendment in the Double Taxation Avoidance Agreement with the Kingdom of Spain Regulatory updates
The CBDT has notified that Royalties and Fees for technical services may be subject to taxation in the country where they are earned, based on that country’s laws. However, if the recipient is the beneficial owner of these royalties or fees, the tax imposed should not exceed 10% of the total amount, resulting in a lower taxation and bringing it in line with Indian – Germany DTAA. Regulatory Updates
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CBDT notifies ‘Sardar Vallabhbhai National Institute of Technology’ for the purpose of relief u/s 35 Regulatory updates
The Central Board of Direct Taxes notifies the approval of ‘Sardar Vallabhbhai National Institute of Technology’ under the category ‘University, College or other Institution’ for scientific research under sec 35 of the Income Tax Act, where any sum paid to such Institute for carrying out scientific research be eligible to claim a deduction of the amount equivalent to the amount contributed/paid. Regulatory Updates
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CBDT notifies ‘Indian Institute of Technology, Kharagpur’ for the purpose of relief u/s 35 Regulatory updates
The Central Board of Direct Taxes notifies the approval of ‘Indian Institute of Technology, Kharagpur’ under the category ‘University, College or other Institution’ for scientific research under sec 35 of the Income Tax Act, where any sum paid to such Institute for carrying out scientific research be eligible to claim a deduction of the amount equivalent to the amount contributed/paid. Regulatory Updates
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CBDT issues circular clarifying exemption for inter-trust donations Regulatory updates
The Central Board of Direct Taxes (CBDT) has clarified that, in case of inter–trust donation, only 85% of such shall be considered as an amount spent towards charitable purposes. However, it has been further clarified that there would be no requirement to park the balance of 15% in the specified bank as the 15% would not be available with the trust. Regulatory Updates
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CBDT circular expands the scope for Revenue’s appeal filing but retains the monetary limits Regulatory updates
The Central Board of Direct Taxes (CBDT) has issued a circular for filing appeals by the Department before the Income Tax Appellate Tribunal, High Courts, and SLPs/appeals before the Supreme Court. The circular comprises the monetary limit for filing an appeal, exceptions where the decision to appeal or file a Special Leave Petition (SLP) shall be taken on merits, without regard to the tax effect and the monetary limits, and exceptions for deferral of appeals under section 158AB. Regulatory Updates
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CBDT notifies the time limit for verification of Return of Income Regulatory updates
The CBDT mandates Income Tax Return (ITR) verification within 30 days of electronic transmission under Rule 14 of the Centralised Processing of Returns Scheme, 2011. Validity hinges on timely uploading or e-verification, with ITR-V submission to CPC, Bengaluru. Delayed verification deems returns invalid, thus timely e-verification is recommended. Applicable to returns submitted via the e-filing portal.
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CBDT extends time frame for processing ‘non-scrutiny ITRs’ for AY 2021-22 till Apr’24 Regulatory updates
The Central Board of Direct Taxes (CBDT) acknowledges technical issues causing delays in processing returns for Assessment Year (AY) 2021-22 under the Income Tax Act, 1961. To address taxpayer hardships, CBDT, under its powers, extends the time frame for processing returns with refund claims. Valid electronically filed returns for AY 2021-22 can now be processed with administrative approval, and intimation sent by 30.04.2024. Regulatory Updates
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CBDT waives late fees and interest on delayed Form 26QE, filing for Regulatory updates
The CBDT notification states that under Section 1945 of the Income-tax Act, 1961, a 1% tax deduction is mandatory for virtual digital asset transfers. Reporting is required through Form No. 26QE within 30 days. Due to Form unavailability, penalties and interest were incurred. To rectify this, the CBDT extends the filing deadline to 30.05.2023 for deductions made from 01.07.2022 to 28.02.2023, waiving associated fees and interest as a one-time exception. Regulatory Updates
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CBDT allows Trusts/Institutions to file applicable audit reports on or before March 31, 2024 Regulatory updates
The CBDT has allowed those trusts/institutions which have furnished audit reports on or before 31st October 2023 in Form No. 10B where Form No. 10BB was applicable and vice-versa, to furnish the audit report in the applicable Form No. 10B / 10BB for the A.Y. 2023-24, on or before 31st March 2024. Regulatory Updates
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Advance Tax e-campaign for F.Y. 2023-24 Regulatory updates
The Income Department is undertaking an e-campaign, which aims to inform such persons/entities of significant financial transactions, through email and SMS, urging them to compute their advance tax liability correctly and deposit the due advance tax on or before 15.03.2024. Regulatory Updates
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Direct Tax Collection Updates up to 19-03-2024 Regulatory updates
As per the reports direct tax collections up to March 17, 2024, reached Rs. 22.27 lakh crore, a 18.74% increase from the same period last year. Net collections, after refunds, stand at Rs. 18.90 lakh crore, 19.88% higher. Refunds disbursed during the period totaled Rs. 3.36 lakh crore.
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Promotion of Voluntary Compliance through e-Verification Scheme 2021 Regulatory updates
The Income Tax Department identifies mismatches between taxpayers’ Income Tax Returns (ITRs) and specified financial transactions for A.Y. 2021-22. Through the e-Verification Scheme-2021, communications are sent urging taxpayers to review their Account Information Summary (AIS) on the e-filing portal and submit updated ITRs (ITR-U) if necessary. Non-filers can also file updated returns (ITR-U) under section 139(8A) by 31.03.2024.
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GST Updates
CBIC issues guidelines for CGST field formations while conducting investigations with Regular Taxpayers Regulatory updates
The CBIC notifies the guidelines aim to facilitate investigations with regular taxpayers while ensuring adherence to legal provisions and promoting ease of doing business.
