Income Tax Updates
SEBI Updates
Ease of Doing Business: Text on contract note with respect to Fit and Proper status of shareholders
Contract notes issued under the Securities Contract (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 (‘Regulations’) were required to publish the text relating to eligibility for acquiring or holding shares and requirement and criteria of fit and proper status as given in Regulation 19 and 20 of the Regulations.
As a step towards ease of doing business, the publishing of this text is no longer required and a mere reference to these Regulations in the contract note would be sufficient.
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RBI Updates
Master Direction – Reserve Bank of India (Asset Reconstruction Companies) Directions, 2024 Regulatory Updates
To ensure the prudent and efficient functioning of Asset Reconstruction Companies and to protect the interest of investors, the RBI issued the Master Direction – Reserve Bank of India (Asset Reconstruction companies) Directions, 2024 on April 24, 2024.
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Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment) Regulations, 2024
The RBI has amended Regulation 3.1 of the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019. It provides that the amount of consideration for the purchase/subscription of equity shares of an Indian company listed on an International Exchange shall be paid, Regulatory Updates
(i) through banking channels to a foreign currency account of the Indian company held in accordance with the Foreign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015, as amended from time to time; or
(ii) as inward remittance from abroad through banking channels.
Further, the sale proceeds (net of taxes) of the equity shares may be remitted outside India or may be credited to the bank account of the permissible holder maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016. Further, an amendment was also made to Regulation 4 with regard to the reporting to be made to the RBI. Income Tax Updates
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Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Amendment) Regulations, 2024
The RBI has amended Regulation 5 of the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015. The amendment allows the funds raised through External Commercial Borrowings, American Depository Receipts or Global Depository Receipts, or through direct listing of equity shares of companies incorporated in India on International Exchanges, pending their utilization or repatriation to India, to be held in foreign currency accounts with a bank outside India. Regulatory Updates
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Income Tax Updates
CBDT notifies corrigendum pertains to “Time Limit of IT Return Verification” Regulatory Updates
The Central Board of Direct Taxes (CBDT) has clarified that if the return of income is not verified within 30 days from the date of uploading or till the due date for furnishing the return of income, whichever is later, such return shall be treated as invalid due to non-verification.
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CBDT notifies changes in the hierarchical structures of Income Tax Officers Regulatory Updates
The Central Board of Direct Taxes has notified amendments to certain provisions under Section 118 of the Income Tax Act, 1961, aimed at refining administrative processes and clarifying hierarchical structures within the income tax department.
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CBDT notifies changes to circular on consequences of Inoperative PAN Regulatory Updates
The Board has amended Circular NO. 3 of 2023 to state that in respect of transactions until March 31, 2024 where the PAN becomes active due to Aadhaar linkage by May 31, 2024, deductors/collectors are relieved from tax deductions/collections at a higher rate under section 206AA/206CC.
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CBDT notifies extension of due date for filing Form No. 10A/10AB Regulatory Updates
The CBDT has notified further extension of the due date for filing of form 10A/10AB beyond the last extended date of September 30, 2023, with a view to avoid genuine hardships to taxpayers. The time limit is extended to June 30, 2024, in respect of certain provisions of section 10(23C)/ section 12A/ section 80G/ and section 35 of the Act.
Further, in cases where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time of June 30, 2024.
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CBDT notifies ‘Amul Research and Development Association for the purpose of relief u/s 35 Regulatory Updates
The Central Board of Direct Taxes notifies the approval of ‘Amul Research and Development Association’ under the category ‘Research Association’ 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.
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CBDT notifies the Interim Action Plan FY 2024-25 Regulatory Updates
CBDT releases Interim Action Plan for FY 2024-25 prescribing key results areas to be achieved within specified timelines. The Interim Action Plan provides for immediate action on grievance redressal through disposing of e-Nivaran and CPGRAM and approval of refunds. It also proposes the final settlement of at least 50% of major and 75% of minor internal and revenue audit objections received till Dec 31, 2023 and the final settlement of at least 50% of internal and revenue audit objections brought forward on Apr 1, 2024, to be completed by Jun 30, 2024.
The Action plan provides identification of all cases where seized assets are due for release and release the same by Jun 30, 2024 and also identification of potential cases for prosecution as a result of a survey or other information/verification/proceedings carried out in FY 2023-24 and earlier years to be completed by Jun 30, 2024.
All pending applications as of Apr 1, 2023 and fresh applications for Nil/Lower TDS or TCS certificates under Section 195/197/206C to be disposed of within a month.
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CBDT Signs Record Number of 125 Advance Pricing Agreements in FY 2023-24
As per the reports, the Central Board of Direct Taxes (CBDT) has entered into a record 125 Advance Pricing Agreements (APAs) in FY 2023-24 with Indian taxpayers. This includes 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs). This marks the highest-ever APA signings in any financial year since the launch of the APA program.
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Direct Tax Collection Updates up to 21-04-2024
As per the reports direct tax collections up to April 21, 2024, reached Rs. 23.37 lakh crore, a 18.48% increase from the same period last year. Net collections, after refunds, stand at Rs. 19.58 lakh crore, 17.70% higher. Corporate Income Tax (CIT) grew by 10.26%, while Personal Income Tax (PIT) increased by 25.23%. Refunds disbursed during the period totaled Rs. 3.79 lakh crore.
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CBDT clarifies media reports on reopening cases linked to HRA claims Regulatory Updates
CBDT addresses concerns over misinformation regarding HRA claims. While some cases of data mismatch were analyzed for FY 2020-21, no bulk reopening of cases occurred. The objective was to alert taxpayers without retrospective taxation. Media reports suggesting widespread case reopening are baseless. There’s no special drive for this, and corrective actions were aimed solely at specific instances of mismatch.
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Functionalities to file commonly used ITRs enabled by CBDT on April 1, 2024 Regulatory Updates
Central Board of Direct Taxes (CBDT) has facilitated taxpayers to file their Income Tax Returns (ITRs) for the Assessment Year 2024-25 (relevant to Financial Year 2023-24) from 1st April 2024 onwards. The ITRs i.e. ITR-1, ITR-2 and ITR-4, commonly used by taxpayers are available on the e-filing portal from 1st April 2024 onwards for taxpayers to file their Returns. Companies will also be able to file their ITRs through ITR-6 from April 1 onwards.
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GST Updates
CBIC extends the time limit of filing GSTR-1 for the period of March 2024 Regulatory Updates
The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, has announced an extension for the filing of GSTR-1 for the tax period of March 2024. Due to technical glitches experienced on the Goods and Services Tax (GST) portal, the deadline for furnishing the details of outward supplies in FORM GSTR-1 has been pushed back to April 12, 2024.
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CBIC extends the time limit of the implementation of special procedures for specified registered persons. Income Tax Updates
The CBIC has notified the special procedure to be followed by registered persons engaged in manufacturing tobacco, pan masala, etc. The procedure prescribes the Details of Packing Machines, Special Monthly statements, Certificate of Chartered Engineer, Details of the machines, Details of the intimation of the machines furnished to other departments, Disposal of the packing machines, Product details, Details of Documents uploaded. This Notification shall be effective w.e.f. May 15, 2024.
