Income Tax Due Dates for the Month of November 2014

7 November 2014 -​Due date for deposit of Tax deducted/collected for the month of October, 2014

15 November 2014 -​ Quarterly TDS certificate (in respect of tax deducted for payments other than salary) by a person being an office of the Government for the quarter ending September 30, 2014

22 November 2014 -Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of October, 2014

30 November 2014 -Annual return of income and wealth for the assessment year 2014-15 in the case of an assessee if he/it is required to submit a report under section 92E pertaining to international or specified domestic transaction(s) ​

30 November 2014 -​Audit report under Section 44AB for the assessment year 2014-15 in the case of an assessee who is also required to submit a report pertaining to international or specified domestic transactions under Section 92E

30 November 2014 -​Statement of income distribution by venture capital company or venture capital fund in respect of income distributed during 2013-14

30 November 2014 -Extended due date for the assessment year 2014-15 for filing of audit report under Section 44AB by an assessee who is not required to submit a report pertaining to international or specified domestic transactions under section 92E vide ORDER [F.NO.133/24/2014-TPL], DATED 20-8-2014

30 November 2014 -

​ ​​Extended due date for the assessment year 2014-15 for filing of return of income by an assessee (not having any international or specified domestic transaction) (a) whose books of accounts are liable to be audited under section 44AB​; or (b) who is a working partner of a firm whose accounts are required to be audited under section 44AB vide ORDER [F.NO.153/53/2014-TPL], DATED 26-09-2014

Download Guidance Note on tax Audit u/s 44AB of the Income-Tax Act, 1961 - Edition 2014

Please click on the below link to download Guidance Note on tax Audit u/s 44AB of the Income-Tax Act, 1961 - Edition 2014

http://220.227.161.86/34728gn-taxaudit-dtcicai.pdf

Guarantors may get wilful defaulter tag too - Reserve Bank of India

Companies and individuals who have furnished guarantees for wilful defaulters can also be accused as wilful defaulters, as per the new norms issued by Reserve Bank of India(RBI). 

In a letter issued on Tuesday, RBI has said that if a guarantor refuses to pay lenders despite having sufficient means to pay the dues, banks could declare such a guarantor as a wilful defaulter.

RBI has also said that bankers need not knock on the doors of guarantors after having exhausted all the remedies against the principal debtor.

Recently, banks, led by United Bank of India, declared liquor baron Vijay Mallya's Kingfisher Airlines BSE 0.79 % as a wilful defaulter.

However, this may not affect Mallya's affiliated companies as RBI has specified that these rules are from prospective effect.

"When a default is made in making repayment by the principal debtor, the banker will be able to proceed against the guarantor/surety even without exhausting the remedies against the principal debtor," RBI said a notification.

RBI also pointed out that where guarantees furnished by the companies within the group on behalf of the wilfully defaulting units are not honoured when invoked by banks or financial institution, such group companies should also be classified as wilful defaulters.

However, it clarified that the new rules will apply only prospectively and not to cases where guarantees were taken prior to this circular.

"Banks and FIs may ensure that this position is made known to all prospective guarantors at the time of accepting guarantees," it said.

The norms have come in as the government, Sebi and the RBI are looking at taking measures to arm banks against wilful defaulters.

Recently G S Sandhu, secretary financial services, said that the government will strengthen the law by allowing banks to change the management of wilful defaulters, while Sebi has barred those with a wilful defaulter tag to raise money from the capital market.

RBI governor Raghuram Rajan has also said that 'wilful-defaulter tag is a powerful weapon in the hands of creditors for resolving distressed assets. Data released by employee union, shows as of March 31, 2013-24, PSU banks had declared 406 companies with borrowings of Rs 70,300 crore as wilful defaulters. 

Economic Times)

External Commercial Borrowings (ECB) in Indian Rupees - R.B.I.

RBI/2014-15/206A.P. (DIR Series) Circular No.25

September 3, 2014

To
All Category - I
Authorised Dealer Banks

Madam / Sir,

External Commercial Borrowings (ECB) in Indian Rupees

Attention of Authorised Dealer Category  I (AD Category  I) banks is invited to Regulation 6 of Notification No. FEMA.3/2000-RB dated May 03, 2000 in terms of which persons resident in India may raise foreign currency loans from non-residents in accordance with the provisions contained in this Notification. Their attention is also invited to paragraph 2(ii)(a) of AP (DIR Series) Circular No. 27 dated September 23, 2011; in terms of which all eligible borrowers are eligible to raise ECB in Indian Rupees from foreign equity holders as per the extant ECB guidelines

.

2. With a view to providing greater flexibility for structuring of ECB arrangements, it has been decided that recognised non-resident ECB lenders may extend loans in Indian Rupees subject to the following conditions:

The lender should mobilise Indian Rupees through swaps undertaken with an Authorised Dealer Category-I bank in India.

The ECB contract should comply with all other conditions applicable to the automatic and approval routes as the case may be.

The all-in-cost of such ECBs should be commensurate with prevailing market conditions.

3. For the purpose of executing swaps for ECBs denominated in Indian Rupees, the recognised ECB lender, if it desires, may set up a representative office in India following the prescribed laid down process.

4. It may be noted that the hedging arrangement for ECBs denominated in Indian Rupees extended by non-resident equity-holders shall continue to be governed by the provisions of AP (DIR Series) Circular No. 63 dated December 29, 2011.

5. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.

6. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully

B P Kanungo

Principal Chief General Manager

VPF is better than the PPF: KK Jalan, Central Provident Fund Commissioner

Central Provident Fund Commissioner KK Jalan tells ET Wealth why the Voluntary Provident Fund is a good option for high-income earners and how the use of technology is changing the way the EPFO works.

The interest rate for this year is 8.75%. How does that compare with what other retirement options are offering?

The EPF offers a moderate return but is the best way to save for retirement, especially for high income earners. A lot of investors are excited that the annual investment limit in the PPF has been hiked to Rs 1.5 lakh this year. But this option was always open to EPF subscribers by way of the Voluntary Provident Fund (VPF). They can invest more than the mandatory contribution in the EPF and enjoy the same tax benefits.

A survey shows that one out of every three subscribers to the EPF dips into the corpus prematurely. Why are subscribers not serious about saving through the EPF?

Till recently, subscribers didn't know where their money was and how much had they accumulated. But the launch of the online facility to check the EPF account balance has changed that. One can also get an e-passbook. If you can access your account and track it online, you will be incentivised to save more and n ..

A lot of the withdrawals happen when people change jobs. Rather than wait endlessly for the transfer of the balance, they prefer to withdraw their money.

This problem too has been fixed by the launch of the online transfer facility. All a subscriber has to do is to register online and furnish his account details. Going forward, the allotment of Universal Account Numbers (UANs) to EPF subscribers will obviate the need for transferring the balance. UANs have been allottedto 4.17 crore contributors.

The deficit in the EPS could worsen in the future. Why isn't the pool system being replaced by individual accounts as in case of the EPF?

The intention of the EPS is to provide a minimum pension to the organized work force. It also offers pension to widows, children and. No other scheme offers such a benefit.

source - Economic times - wealth

Panel set up to conduct forensic Audit of NSEL

On a plea made by investors, the Bombay High Court, on Tuesday, formed a committee headed by a retired high court judge to conduct a forensic audit of the troubled NSEL and liquidate the assets of its defaulting borrowers in the over Rs.5,500 crore payments scam.

The three-member committee, headed by Justice (Retd) V. C. Daga, will also have a solicitor and a chartered accountant, according to Advocate Ameet Naik, who represents NSEL in the case.

The committee will ascertain the liability that is outstanding against the defaulting borrowers of NSEL, conduct a forensic audit, and monetise the assets, the court said in its order.

The committee will determine where the amount has gone, and is empowered to ascertain the assets of company.

It has also been empowered to distribute the assets to the duped investors but distribution of funds will require the court’s permission.

Justice S. C. Gupte of the high court said in his order the panel would have to seek separate directions from the court to access the assets that have been attached by the Economic Offences Wing of Mumbai police and the Income Tax Department in the NSEL fraud. It excluded the sale of assets attached by the Enforcement Directorate.

Justice Gupte set up the committee while hearing a representative suit filed by Modern India Ltd., one of the major investors in the bourse, against NSEL and its promoters.

Before any mutual settlement between NSEL and the borrowers, the committee will give a notice to the Forward Markets Commission (FMC) of such a settlement, and also inform the court about it, the HC order said.

The High Court has also allowed the investors or any aggrieved person to challenge the decision of the committee before it.

The court had recently granted bail to NSEL promoter Jignesh Shah in the case.

No any Restriction on Number of Partners for CA, CMA, CS & other professionals' Firm

Raising of no. of partners in CA Firm with reference to the provisions of Companies Act, 2013. – 
(dated - 02-09-2014) 

The Council of the Institute has clarified that the earlier restriction of maximum no. of 20 partners permitted for firms under section 11 of the Companies act, 1956 is no more applicable to the firms as Section 464 of the Companies Act, 2013, has been notified w.e.f  01.04.2014 wherein sub-section (1) provides for a maximum number of partners permissible for business firms at 100 and sub-section (2) provides that nothing in sub section (1) shall apply to an association or partnership, if it is formed by professionals who are governed by special Acts. 

Accordingly, as per proviso to the said section, Chartered Accountants firms are now allowed to be registered/reconstituted with more than 20 partners w.e.f  01.04.2014 under the Indian Partnership Act as in the case of a firm under the Limited Liability Partnership Act. 

-sd- 

Joint Secretary 

M&C-MSS