How to E-Verify Income Tax Return

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How to E-verify Income Tax Return

There are different ways to do this given below:

1. Via Aadhaar- OTP based

To verify your ITR via aadhaar, your mobile number should be linked to the aadhaar card and your PAN should also be linked with the Aadhaar.

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Steps to be followed:

  • Login on Income Tax portal.

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  • Click on ‘View Returns/ Forms’

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  • Select ‘Income Tax Returns’ and ‘Submit’

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  • Click on “Click here to view your returns pending for e-verification”

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  • Click on ‘e-verify’

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  • Select the option “I would like to generate Aadhaar OTP to e-verify my return”

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  • An SMS with 6-digit OTP will be sent to your registered mobile number

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  • Enter the OPT received and click on “Submit”

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2. Generating EVC via Net Banking

You can e-verify your ITR with the help of net banking. But only few banks provide that facility.

Your PAN must be linked with the bank account.

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Steps:

  • Login to your bank account
  • Select the e-verify option under the ‘Tax’ tab. You will be directed to e-filing website.
  • Click on ‘Generate EVC’ option on ‘My account’ tab.
  • A digit alpha-numeric digit will be sent to your email or mobile number
  • Now go to ‘e-verify’ option under ‘My account’ tab
  • Click on the option ‘I have EVC already’
  • Enter the OTP you received on your mobile number & click on ‘Submit’.

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List of banks that provide this facility:

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3. Generating EVC via Bank Account

In order to e-verify your ITR through this process, first you have to pre-validate your bank account.

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How to pre-validate your bank account

  • Go to the “Profile settings” in your e-filing account to pre-validate your account.
  • Enter the required details such as:
    • Bank’s name
    • Account number
    • IFSC Code
    • Mobile number (linked with the bank account)
  • The pre-validation will be successful, if all the information matches with the bank account records.

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Now, e-verify your ITR by following these steps:

  • Select “Generate EVC” option under the “My Account” tab.
  • An OTP will be sent on your registered mobile number
  • Select “E-verify” under “My Account” tab.
  • Enter the OTP & click on “Submit”

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List of banks provide this facility: 

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4. Verifying ITR through Demat Account

It is same as that of bank account. First you have pre-validate your demat account.

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How to pre-validate Demat account:

  • Go to “Profile settings” in your e-filing account.
  • Enter the required details:
    • Mobile number (linked to demat account)
    • Email ID (linked to demat account)
    • Depository name (NSDL or CSDL)

 Usually it takes 1-2 hours to pre-validate your demat account.

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Once your account is pre-validate, e-verify your ITR following the given procedure:              

  • Select “Generate EVC” option under the “My Account” tab.
  • Select “Generate EVC through Demat Account Number”
  • An OTP will be sent on your registered mobile number
  • Select “E-verify” under “My Account” tab.
  • Enter the OTP & click on “Submit”

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Section 115BAB – For domestic manufacturing company which is a New Company

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1. Applicability of Section 115BAB

This section is applicable w.e.f. 1st April 2019 [FY 2019-20 (A.Y. 2020-21)].

Benefit of lower tax rate is available to domestic companies who satisfying the specified conditions mentioned in point 2.

This section states that domestic companies have the option to pay tax at a lower rate of 15%.

2. Conditions specified under section 115BAB

A domestic company shall have an option to pay income tax at the rate of 15% (plus applicable surcharge and cess, effective rate of 17.16%), provided the following conditions are complied with:

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a. The company has been set up and registered on or after 1st October, 2019 and has commenced manufacturing on or before 31st March, 2023 and is

  • not formed by the splitting up and reconstruction of a business already in existence except in case of a business re-established, reconstruction or revival under section 33B
  • does not use any plant or machinery previously used for any purpose. However, the company can use plant and machinery used outside India and used in India for the first time and no depreciation in respect of such plant and machinery has claimed earlier.

Also, the company can use old plant and machinery, the value of which does not exceed 20% of the total value of the plant and machinery used by the company.

  • does not use any building previously used as a hotel or a convention centre, as the case may be.

‘Hotel’ means a hotel of two-star, three-star or four-star category as classified by the Central Government. ‘Convention centre’ means a building of a prescribed area comprising of convention halls to be used for the purpose of holding conferences and seminars, being of such size and number and having such other facilities and amenities, as may be prescribed.

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b. The company should not engage in any business other than the business of manufacture or production of any article or thing and research in relation to, or distribution of, such article or thing manufactured or produced by it.

For clarification of doubts it has been clarified that, the business of manufacturing and production of any article or thing, does not include business of

  • development of computer software in any form or in any media;
  • mining;
  • conversion of marble blocks or similar items into slabs;
  • bottling of gas into cylinder;
  • printing of books or production of cinematograph film; or
  • any other business as may be notified by the Central Government in this behalf.

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c. Domestic companies should not claim any deductions/exemption mention below:

  • Deduction u/s 10AA especially available for units established in SEZ
  • Deduction u/s 32 (Additional depreciation) and 32AD (Investment allowance) available for investment in new plant and machinery made in notified backward areas in the states of Andhra Pradesh, Bihar, Telangana, and West Bengal
  • Deduction u/s 33AB for tea, coffee and rubber manufacturing companies
  • Deduction towards deposits made for site restoration fund u/s on 33ABA by companies engaged in extraction or production of petroleum or natural gas or both in India
  • Deduction u/s 35 for expenditure made for scientific research
  • Deduction u/s 35AD for capital expenditure incurred by any specified business
  • Deduction u/s 35CCC for expenditure incurred on an agriculture extension project
  • Deduction u/s 35CCD for expenditure on skill development project
  • Deduction under chapter VI-A in respect to certain incomes, which are allowed under section 80IA, 80IAB, 80IAC, 80IB and so on, except deduction under section 80JJAA and 80M (w.e.f A.Y. 2021-22)
  • Without set-off of any loss carried forward from earlier years, if such losses relate to the deductions mentioned above

d. In order to exercise this option new manufacturing domestic companies required to file their income tax returns on or before the due date of filing income tax returns i.e. usually 30th September of the assessment year.

e. Option once exercised by the domestic company cannot be withdrawn for same or subsequent years.

f. The domestic companies who do not wish to avail this concessional rate immediately, can opt for the same after the expiry of their tax holiday period.

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3. Tax liability under section 115BAB

Particulars Tax Rate
Income tax should be charged at 15% 15.00%
Add: Surcharge: 10% of tax amount (i.e.10% of 15%). 1.50%
Add: Health and Education cess: 4% of income tax plus surcharge [i.e. 4% of (15% plus 1.5%)]. 0.66%
Total 17.16%

 

MAT : Such companies will not be required to pay minimum alternate tax (MAT) under section 115JB of the act. Since MAT provision in itself will not be applicable for the companies, its credit will not be allowed to be set off against its profit computed under the regular provision.

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4. Applicability of transfer pricing provisions

In a case where due to a close connection between the company and any other person, or for any other reason, the business between them is so arranged such that the company earns more than ordinary profits, the assessing officer may ignore the excess profits. The Assessing Officer will take only the amount of profits reasonably deemed to be derived from the business.

In a case where the business transaction involves a specified domestic transaction referred to in section 92BA, the profits of the transaction will be determined having regard to the arm’s length price.

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The above information does not intend to give any opinion or advisory in relation to various alternatives of tax computation available in Income Tax Act. The readers are advised to please take help from Expert Tax Consultants with their specific facts and circumstances.

 

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Section 115BAA – Lower Tax Rate introduced for Domestic Companies

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1. Applicability of Section 115BAA

This section is applicable w.e.f. 1st  April 2019 [FY 2019-20 (A.Y. 2020-21)].

Benefit of lower tax rate is available to all domestic companies after they comply certain conditions.

Domestic Companies are given an option.

Option once exercised cannot be revoked (That is no coming back by choice). But if you do not comply certain conditions then you will not get this option.

A lower tax rate is prescribed which is 22% Plus 10% Surcharge Plus 4% Health and Education cess (applicable in all circumstances).

Effective rate of tax comes to 25.168%

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2. Conditions specified under section 115BAA

All domestic companies shall have an option to pay income tax at the rate of 22% (plus applicable surcharge and cess), provided the following conditions are complied with:

Domestic companies should NOT claim any deductions/exemption mention below:

 

S. No. Under Section Details
i Deduction u/s 10AA Available for units established in SEZ
ii Deduction u/s 32 (Additional depreciation) and 32AD (Investment allowance) Available for investment in new plant and machinery made in notified backward areas in the states of Andhra Pradesh,  Bengal

 
iii Deduction u/s 33AB For tea, coffee, and rubber manufacturing companies
iv Deduction u/s 35 For expenditure made for scientific research
v Deduction u/s 35AD For capital expenditure incurred by any specified business
vi Deduction u/s 35CCC For expenditure incurred on an agriculture extension project
vii Deduction u/s 35CCD For expenditure on skill development project
viii Deduction under Chapter VI-A Deductions in respect to certain incomes, which are allowed under section 80IA, 80IAB, 80IAC, 80IB and so on.
ix Deductions in respect of Section 33ABA Deduction towards deposits made for site restoration fund u/s on 33ABA by companies engaged in extraction or production of petroleum or natural gas or both in India
x Set off of Losses Without set-off of any loss carried forward from earlier years, if such losses relate to the deductions mentioned above

 

Domestic companies can claim the following deductions:

i Section 80JJA Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste
ii Section 80M Deduction in respect of certain inter-corporate dividends (Applicable for FY 2020-21 (AY 2021-22))

 

In order to exercise this option domestic companies required to file their income tax returns on or before the due date of filing income tax returns.

Option once exercised by the domestic company cannot be withdrawn for same or subsequent years.

The domestic companies who do not wish to avail this concessional rate immediately, can opt for the same after the expiry of their tax holiday period.

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3. New Rate applicable to domestic companies

Particulars Tax Rate
Income tax should be charged at 22% 22.000%
Add: Surcharge: 10% of tax amount (i.e.22%). 2.200%
Add: Health and Education cess: 4% of income tax plus surcharge [i.e. 4% of (22% plus 2.2%)]. 0.968%
Total 25.168%

 

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4. Provision related to MAT

As per Section 115JB, Companies who are opting for section 115BAA will be exempt from computing MAT.

Since MAT provision in itself will not be applicable for the companies, its credit will not be allowed to be set off against its profit computed under the regular provision.

If the company is having MAT credit available for F.Y. 2019-20, they may opt for payment of taxes under regular provisions of income tax if they want to do so. They can opt for lower tax rate under section 115BAA from next Financial Year.

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The above information does not intend to give any opinion or advisory in relation to various alternatives of tax computation available in Income Tax Act. The readers are advised to please take help from Expert Tax Consultants with their specific facts and circumstances.

 

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Income Tax Rates for other than Individual for F.Y. 2020-21 (A.Y. 2021-22)

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1. Tax Rate for Companies:

Tax rates for domestic companies

Particulars Tax rates
Total turnover or gross receipts during the previous year 2017-18 does not exceed Rs. 400 Crore 25%
Other domestic companies 30%

 

Tax rates for foreign companies

The tax rate for foreign company is 40%.

In case foreign company received any royalty from Government/Indian concern or technical fees as per agreement approved by the Central Government, then tax rate applicable will be 50%.

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Surcharge:

Company Net total income is between Rs. 1Crore – 10 Crores Net total income exceeds Rs. 10 Crores
Domestic company 7% 12%
Foreign company 2% 5%

Health and Education cess: 4% of income tax plus surcharge.

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For domestic manufacturing company which is a NEW company under section 115BAB

Income tax should be charged at 15%

Surcharge: 10% of tax

Health and Education cess: 4% of income tax plus surcharge.

For more information in relation to 115BAB – click here

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Under section 115BAA – Tax for certain domestic companies

 Income tax should be charged at 22%

Surcharge: 10% of tax

Health and Education cess: 4% of income tax plus surcharge.

For more information in relation to 115BAA – Click here

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2. Income Tax Rate for Partnership Firm:

A partnership firm (including LLP) is taxable at 30%.

Surcharge: 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess: 4% of income tax plus surcharge.

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3. Income Tax Rates For HUF

HUF has an option to pay tax as per new tax regime or old regime, here given below are the tax rates for both the options available

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Under Old Tax Regime:

Net Total income Income-Tax rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000- Rs. 5,00,000 5%
Rs. 5,00,000- Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

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New tax regime with no deduction and no exemption

Following conditions needs to be fulfilled:

Conditions Options Available
If assesee is not having business income in FY Have option to opt for any scheme every year
If assesee is having business income in FY Option once exercised for a Financial year shall be valid for all subsequent years and once the option is withdrawn, the same cannot be exercised again unless such business income cease to exist
If assesee fails to satisfy any condition (i.e. claimed any deduction or exemption not available) New regime option shall become invalid

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Net Total income Income-Tax rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,001- Rs. 5,00,000 5%
Rs. 5,00,001- Rs. 7,50,000 10%
Rs. 7,50,001- Rs. 10,00,000 15%
Rs. 10,00,001- Rs. 12,50,000 20%
Rs. 12,50,001- Rs. 15,00,000 25%
Above Rs. 15,00,000 30%

Note: List of Exemptions and deductions not available for availing benefit of new tax regime

 

Surcharge: 10% of income tax where total income exceeds Rs. 50 lacs but up to Rs.1 Crores.

15% of income tax where total income exceeds Rs. 1 Crore but upto Rs. 2 Crores

25% of income tax where total income exceeds Rs. 2 Crore but up to Rs. 5 Crores

37% of income tax where total income exceeds Rs. 5 Crores

Health and Education cess: – 4% of income tax and surcharge.

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4. Income Tax Rates For AOP/BOI/Any other Artificial Juridical Person:

Net Total income Income-Tax rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000- Rs. 5,00,000 5%
Rs. 5,00,000- Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

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Surcharge: 10% of income tax where total income exceeds Rs. 50 lacs but up to Rs.1 Crores.

15% of income tax where total income exceeds Rs. 1 Crore but upto 2 Crores

25% of income tax where total income exceeds Rs. 2 Crore but up to Rs. 5 Crores

37% of income tax where total income exceeds Rs. 5 Crores

Health and Education cess: – 4% of income tax and surcharge.

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5. Income Tax Slab Rate for Co-operative Society:

Co-operative society has an option to pay tax as per new tax regime or old regime, here given below are the tax rates for both the options available

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As per Old Tax regime

Net Total income Income-Tax rate
Up to Rs. 10,000 10%
Rs. 10,000 to Rs. 20,000 20%
Above Rs. 20,000 30%

Surcharge: 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess: 4% of income tax plus surcharge

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As per New Tax Regime subject to some conditions: A resident Co-operative Society is taxable at 22%.

Surcharge: 10% on such tax

Health and Education cess: 4% of income tax plus surcharge.

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6. Income Tax Slab Rate for Local Authority:

A local authority is taxable at 30%.

Surcharge: 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess: 4% of income tax plus surcharge.

 

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TDS Rate chart for F.Y. 2020-21 (A.Y. 2021-22)

Section*

 Nature of Payment* Threshold Limit* TDS Rates for Indian Residents*
192 Salaries Income tax slab Slab rates
192A Payment of accumulated balance due to an employee (EPF Premature Withdrawal) Rs. 50,000 10%
193 Interest on Securities Rs. 10,000 10%
194 Dividends (Other than listed company) Rs. 5,000 10%
194A Interest other than “Interest on securities” from post offices, co-operative societies and bank deposits

Interest from others

 Rs. 40,000 (For senior citizen Rs. 50,000)

 

Rs. 5,000

  

10%

 

10%
194B Interest by way of winning from lotteries, crossword puzzles, games etc. Rs. 10,000 30%
194BB Income by way of winning from horse race Rs. 10,000 30%
194C Payment to contractor/ subcontractor

a)      HUF/Individual

b)      Others

 Rs. 30,000 for single payment & Rs.1,00,000 for aggregate payment during the F.Y.  

1%

2%
194D Insurance Commission Rs. 15,000 5%
194DA Payment in respect of life insurance policy Rs. 1,00,000 1%
194EE Payment in respect of deposits under National Savings Scheme Rs. 2,500 10%
194F Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India NA 20%
194G Commission etc. on sale of lottery Rs. 15,000 5%
194H Commission or brokerage Rs. 15,000 5%
194I Rent of land, building or furniture Rs. 2,40,000 10%
194I Rent of Plant and Machinery Rs. 2,40,000 2%
194IA Payment/credit of consideration to resident transferor for transfer of any immovable property (other than rural agricultural land) Rs. 50 Lakhs 1%
194IB Payment/credit of rent by an individual/HUF (if not subject to tax audit under section 44AB in the immediately preceding financial year) Rs. 50,000 per month 5%
194IC Payment under joint development agreement to a resident individual HUF (who transfers land/ building) NA 10%
194J

 

 Payment for fees for Technical services, Professional services or royalty etc.

a)      Fees for technical services not in nature of nature of professional services or royalty in consideration of sale

b)     All others (including Professional fees, royalty etc.)

 Rs. 30,000  

 

2%

 

10%
194K Payment of any income in respect of

a) Units of a Mutual Fund as per Section 10(23D)

b) Units from the administrator

c) Units from specified company

 Rs. 5,000 10%
194LA Payment of compensation on acquisition of certain immovable property Rs. 2,50,000 10%
194LBA Certain income distributed by a business trust to its unit holder NA 10%
194LBB Payment in respect of units of investment fund specified in section 115UB NA 10%
194LBC

 

 Payment in respect of an investment in a securitization trust specified in clause (d) of the Explanation occurring after section 115TCA-
– if recipient is an individual or a Hindu undivided family		 NA 25%
194LBC Payment in respect of an investment in a securitization trust specified in clause (d) of the Explanation occurring after section 115TCA-
– if recipient is any other person		 NA 30%
194M Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. Rs. 50 lakhs 5%
194N Cash withdrawal in excess of 1 crore during the previous year from one or more account maintained with bank or co-operative society Rs. 1 Crore 2%
194O Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.  Rs. 5 lakhs 1%

*Disclaimer: The below mentioned TDS Rate chart is just for ready reference of tax rates and threshold limits and does not intend to give any guidance on applicability of these provisions on any transaction. For getting guidance on applicability of TDS provisions on any transaction we request you to please take help from Expert Tax Consultants.

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Direct Tax Vivad se Vishwas Scheme 2020

Currently, there are more than 4.5 Lacs cases of Direct tax related disputes are pending at various appellant authorities which results in locking of tax arrears and consumption of time, energy and resources on the part of both Government and Taxpayers.

In order to resolve these pending disputed cases, The Hon’ble Finance Minister on 1st February 2020 introduced “Vivad Se Vishwas Scheme” with an aim of settlement of direct tax cases pending in multiple forums as on 31st January 2020.

Applicability

Under this scheme, taxpayer whose Direct tax related dispute is pending before

  • Supreme Court
  • High Court
  • ITAT
  • CIT(A)

as on 31.01.2020 against an assessment/reassessment order or in respect of TDS/TCS is eligible to make a declaration under this dispute resolution scheme.

An “appellant” is eligible to apply for the scheme irrespective of the fact whether the demand in such case is pending or has been paid.

Who is Appellant?

Here “Appellant” is a person in whose case an appeal or a writ petition or special leave petition has been filed either by him or by the income-tax authority or by both, before an appellate forum and such appeal or petition is pending as on 31st January 2020.

Last date to file declaration under Vivad Se Vishwas scheme

As per the scheme, the taxpayer should opt and deposit the disputed dues by June 30, 2020 (This is an extended date due to COVID-19, earlier date was March 31, 2020), in order to get 100% relief from interest, penalty and fees. In case it is just penalty and interest which is in dispute, the taxpayer will have to pay only 25% of the disputed amount.

Procedure of opting the Scheme

1. An appellant can file a declaration to the designated authority to initiate resolution of pending direct tax disputes.

2. Based on the declaration filed, the designated authority within 15 days will determine the amount payable by the appellant and grant a certificate.

3. The appellant must pay this amount within 15 days of the receipt of the certificate and inform the designated authority of such payment.  

4. Such amount will not be refundable.

5. On receipt of the amount, the designated authority shall pass an order in writing, stating that the due amount has been paid.

6.The order passed by the designated authority shall be final and after that both the taxpayer and Government shall be barred from any further proceedings.

Key points of Vivad se Vishwas Scheme that a taxpayer must know:

1. For dispute resolution, the appellant is required to furnish an undertaking stating that he waives all his rights to seek any remedy or claim in relation to that dispute under any law.

2. All such claims already filed in relation to the dispute must be withdrawn before filing the declaration.

3. Once a dispute is resolved, the designated authority cannot levy interest or penalty in relation to that dispute.  

4. No appellate forum can make a decision in relation to the matter of dispute once it is resolved.  

5. Such matters cannot be reopened in any proceeding under any law, including the IT Act.

6. Once the designated authority issues the certificate, appeals pending before the Income Tax Appellate Tribunals and the Commissioner (Appeals) will be deemed to be withdrawn.

7. In case of appeals or petitions pending before the Supreme Court and High Courts, the appellant is required to withdraw the appeal or petition.

8. The declaration filed by an appellant will become invalid if

  • its particulars are found to be false
  • he violates any of the conditions referred to in the IT Act
  • he seeks any remedy or claim in relation to that dispute.  

 

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Indirect Tax (GST and Custom) – Various due dates extended due to COVID 19

The Government of India through the Finance and Corporate Ministry has announced several measures to provide the relief to the Individuals and the companies. The individuals and the various businesses are required to comply with numerous statutory requirements time to time like filing of GSTR 3B monthly, Annual returns, compliance of laws for composite dealers, compliance with custom laws within a stipulated time, etc. In the light of this global pandemic COVID-19, the ministry has extended the date of compliance for various requirements falling within the period of March 20, 2020 to June 29, 2020. The extended date is June 30, 2020

 

Customs

S. No. Particulars Existing Due Date Extended Due date
1 Custom Clearance   24×7 Custom clearance till end of 30th June, 2020
2 Other Matters: Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc., time limit for any compliance under the Customs Act and other allied Laws. Due date falling and /or time limit expiring between March 20, 2020 to June 29, 2020 Extended to June 30, 2020

 

Goods and Service Tax (GST)

S. No. Particulars Existing Due Date Extended Due date
1 GSTR-3B for taxpayer having turnover less than 5 Crore for the month of February, March and April 2020 (i.e. the returns which are due to be file in the month of March, April and May 2020) February 2020 – March 20/22/24, 2020

March 2020 – April 20/22/24, 2020

April 2020 – May 20/ 22/24, 2020

(Depending upon state to state)

 For all the months Due Date Extended to last week of June 2020

With No interest, late fee, and penalty to be charged
2 GSTR 3B for other taxpayers (i.e. having turnover 5 crores or more) February 2020 – March 20, 2020

March 2020 – April 20, 2020

April 2020 – May 20, 2020

 For all the months Due Date Extended to last week of June 2020

With No late fee, and penalty to be charged if complied till June 30, 2020. Whereas Interest will be charged at reduced rate of 9% (currently 18%) if the payment is made after 15 days from the due date.
3 Relief for Composition dealers Date for opting for composition scheme – 31st March 2020

 

 Date for opting for composition scheme – last week of June 2020

Date of Making payment for quarter ending March 31, 2020 – last week of June 2020

Date of filing of Return for 2019-20 – last week of June 2020
4 Annual Return of GST for FY 2018-19

 

 March 31, 2020 Last week of June 2020
5 Other Matters: Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws. Due date falling and /or time limit expiring between March 20, 2020 to June 29, 2020 Extended to June 30, 2020
6 Sabka Vishwas Scheme Payment date extended to June 30, 2020.

No interest for this period shall be charged if paid by June 30, 2020.

Corporate Affairs – Various due dates extended for companies due to COVID 19

The Government of India through the Finance and Corporate Ministry has announced several measures to provide the relief to the companies. In the light of this global pandemic COVID-19, the ministry has extended the date of compliance for various requirements falling within the period of March 20, 2020 to June 29, 2020. The extended date is June 30, 2020

S. No. Particulars Earlier Position Current Position
1 Moratorium Period in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date Late fee would have been charged if the document, return, statement, etc. filed late during the period April 01, 2020 to September 30, 2020 Now, NO late fee will be charged if any document, return, statement, etc. filed late during the period April 01, 2020 to September 30, 2020
2 Board Meeting Maximum Interval period of 120 days allowed between 2 Board Meetings The period of Interval now extended to 180 days between 2 board meetings. This extension is available till September 30, 2020
3 Applicability of CARO 2020: The Companies (Auditor’s Report) Order, 2020 Applicable for Audit of Companies for FY 2019-20 Now, Applicable for Audit of Companies for FY 2020-21
4 Independent Director: As per Schedule 4 to the Companies Act, 2013, Independent Directors are required to hold at least one meeting without the attendance of Non-independent directors and members of management. Currently if they don’t conduct that meeting, it will be treated as a violation of the companies Act 2013. Now, this requirement has been relaxed and the non-conduct of this meeting will not be treated as the violation under the Companies Act 2013.

Also, MCA has given them directive to the Independent Directors, that they may share, amongst themselves, their views through any electronic medium like E-mail, Telephone, etc.
5 Deposit Reserves: Requirement to create a Deposit reserve of 20% of deposits maturing during the financial year 2020-21. Before April 30, 2020 Now, this should be complied with till June 30, 2020
6 Investment of Debenture maturity: Under the companies Act 2013, there is a requirement to invest 15% of debentures maturing during a particular year in specified instruments. This is to be done Before Aril 30, 2020 Now, this should be complied with before June 30, 2020
7 Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months (i.e. 180 days) of incorporation. Within 6 Months of Incorporation An additional time of 6 more months shall be allowed
8 Minimum Residency in India for a period of at least 182 days by at least one director of every company is required under Section 149 of the Companies Act, 2013 in every Financial Year. If, for at least one director it is less than 182 days, it is treated as a non-compliance. Now, it shall not be treated as a Non-compliance for FY 2019-20
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Raising of threshold for default value in IBC and other matters: Due to the emerging financial distress faced by most companies on account of the large-scale economic distress caused by COVID 19, it has been decided to raise the threshold of default under section 4 of the Insolvency and Bankruptcy Code (IBC) 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh). This will by and large prevent triggering of insolvency proceedings against MSMEs.

If the current situation continues beyond 30th of April 2020, we may consider suspending section 7, 9 and 10 of the IBC 2016 for a period of 6 months so as to stop companies at large from being forced into insolvency proceedings in such force majeure causes of default.

 Currently the Limit is INR 1,00,000 Limit Increased to INR 1,00,00,000

Income Tax – Various Due Dates Extended Due to COVID-19

The Government of India through the Finance and Corporate Ministry has announced several measures to provide the relief to the Individuals and the companies. The individuals and the various businesses are required to comply with numerous statutory requirements time to time like filing of tax returns, making some investments within a stipulated time, etc. In the light of this global pandemic COVID-19, the ministry has extended the date of compliance for various requirements falling within the period of March 20, 2020 to June 29, 2020. The extended date is June 30, 2020

 

The List of Changes in the Income Tax Act are given below:

 

S. No. Nature of Compliance Earlier Due Date/ Existing Provision Extended Due Date/ Provision after extension
1 Filing of Income Tax Return for FY 2018-19 (AY 2019-20) March 31, 2020 Extended to June 30, 2020
2 Aadhaar-PAN linking March 31, 2020 Extended to June 30, 2020
3 Vivad se Vishwas scheme March 31, 2020

Earlier: March 31, 2020 was the date for payment of undisputed taxes. There was another date June 30, 2020 for the payment of taxes with an additional payment of 10%.

 Extended to June 30, 2020

Now: No extra 10% to be paid up to June 30, 2020
4 Delayed payments of

Advanced tax, TDS, TCS, Self-assessment tax, Regular tax, Equalization levy,  STT and CTT made between 20th March 2020 and 30th June 2020, the reduced interest rate at 9%   instead of 12 %/18 % per annum (i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period.  No late fee/penalty shall be charged for delay relating to this period.

 Interest Rate on delayed payments @12%/ 18% per annum (i.e. 1%/ 1.5% per month) Now this interest has been reduced to 9% per annum (i.e. 0.75% per month instead of 1/1.5 percent per month) for this period.

No late fee/penalty shall be charged for delay relating to this period.
5 Investments Under Section 80C or investment in saving instruments March 31, 2020 Extended to June 30, 2020
6 Other Due Dates Extended

Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority or investments for roll over benefit of capital gains under Income Tax Act,  Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act,  STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020  to 29th June 2020 shall be extended to 30th June 2020.

 Due date falling and /or time limit expiring between March 20, 2020 to June 29, 2020 Extended to June 30, 2020

 

 

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New Incorporation Form for Companies (Form SPICe+)

The Ministry of Corporate affairs have come up with New Forms for Incorporation of Companies in India. The form is named as SPICe+. The full form SPICe+ is a ‘Simplified Proforma for Incorporating Company Electronically Plus’ (INC 32) is a web form designed for Incorporation of companies fast, without any hassle and having following features:

1. This form deals with the following aspects:

  • Reservation of name
  • Application for allotment of DIN
  • Incorporation of a new company
  • Allotment of PAN and
  • Allotment of TAN

2. SPICe+ Form e-MOA (INC 33), SPICe+ Form e-AOA (INC 34), Details of directors and subscribers will also be filed along with the INC 32.

3. SPICe+ has been divided into two parts viz.,

  • SPICe+ Part A and
  • SPICe+ Part B

SPICe+ Part A represents the section wherein all details with respect to name reservation for a new company are required to be entered.

SPICe+ Part B represents the section wherein all remaining details required for incorporation of a company are required to be entered.

4. SPICe+ Part A can either be submitted individually ONLY for name reservation or can be submitted together with SPICe+ Part B for both name reservation as well as incorporation.

5. In case SPICe+ Part A is submitted individually for name reservation; Part B and all other linked forms shall be enabled only after the SRN of SPICE+ Part A is ‘Approved’ i.e. the name is reserved.

6. The SPICe+ Part B is required to be submitted within the time allowed in the approval letter of SPICe+ Part A.

7. It is to be noted that you can apply only two names for the proposed company if Part A is submitted individually. In case complete SPICe+ is being submitted for name reservation as well as incorporation, only one name can be proposed.

8. Once the eForm is processed and found complete, company would be registered and CIN would be allocated. Also, DINs get issued to the proposed Directors who do not have a valid DIN.

9. Maximum three Directors are allowed for using this integrated form for filing application of allotment of DIN while incorporating a company other than a Producer company.

10. In case of a Producer company, maximum of five directors are allowed to apply for allotment of DIN.

11. Also PAN and TAN would get issued to the Company.

12. Any user who intends to incorporate a company through SPICe+ can now also apply for GSTIN / EPFO/ ESIC/ Profession Tax/ Opening of bank account through web form AGILE-PRO (INC35).

Part A of SPICe+ Consists of following details:

i. Type of company (Private Co, OPC, Producer Company etc)

ii. Class of Company

iii. Category of Company

iv. Sub Category of Company

v. Main division of industrial activity of the company and description of the main division

vi. Proposed Name of the company

Part B of SPICe+ Consists of following details:

i. Articles of Association (AOA)

ii. Memorandum of Association (MOA)

iii. Capital Structure of the company

iv. Details of number of members

v. Registered address of the proposed of the company

vi. Number of first subscriber(s) to MOA and directors of the company

vii. Number of non-individual first subscriber(s)

viii. Total number of directors (director(s) who is/are not subscriber(s) plus subscriber(s) cum director(s))

ix. Particulars of non-individual first subscriber(s)

x. Particulars of individual first subscriber(s) (other than subscriber cum director) Having DIN

xi. Particulars of individual first subscriber(s) (other than subscriber cum director) Not Having DIN

xii. Particulars of individual first subscriber(s) cum directors Having DIN

xiii. Particulars of individual first subscriber(s) cum directors Not Having DIN

xiv. Particulars of directors (other than first subscribers) Having DIN

xv. Particulars of directors (other than first subscribers) Not Having DIN

xvi. Business/ Profession Code

xvii. Source of Income

xviii. Particulars of payment of stamp duty

xix. State or Union territory in respect of which stamp duty is paid or to be paid

xx. Details of stamp duty to be paid

xxi. Provide details of stamp duty already paid

xxii. Additional Information for applying PAN and TAN like Area code, AO etc

xxiii. Details of nominee required in case of OPC

It is to be noted that the SPICe+ Part B is required to be attested by a Practicing professional (like Chartered Accountant/ Company Secretary/ Cost Accountant/ Advocate).

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