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21/03/2024

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02/05/2023

# businesscompliance

15/12/2022

13/12/2022

01/09/2022

Chartered Accountants - The Growth Gears Season 2 Episode 2 - CA. Nilesh Shah

22/05/2020

RBI IMP UPDATES
1. All policy rates reduced by 0.40% so repo and reverse repo will come down
2. Moratorium extended for all loans extended by 3 months
3. WC interest for 6 months to be converted to Term loan with interest to be paid in remaining months of FY 20-21
4. All other measures announced earlier extended by 3 months including NPAs.

02/05/2020

Sector wise map in Pandemic times!!

23/04/2020

Oil price crash +(+((

A very brief simplified explanation for what's happening

1. Most of the oil is traded via Futures Contracts. There is a Spot Price as well, which is taken into account while arriving at the "theoretical futures price"

2. There are two main Futures Contracts (remember this is simplified) - The WTI and the Brent

3. WTI refers to the Oil from North America, while Brent refers to oil from Middle-east, Europe and Russia

4. There are a million variants, but we will omit those for the moment, since they complicate the discussion without really adding any clarity

5. The "Oil Price" that's gone negative is the settlement prices for the May 2020 Delivery Contract (ONLY THAT ONE)

6. Some more complexity - There are two forms of settlements for Crude Oil Futures Contracts (and for most commodities), viz Net Settlement and Physical Delivery

7. Net settlement allows the buyers of the contracts to settle the financial difference between the buying price and the settlement price

8. If a buyer of a Futures Contract doesn't opt for net settlement on or before the "Notice Date", which passed last week for the May 2020 Delivery, then they are assumed to be taking physical delivery of the underlying quantity of Crude Oil

9, And that's the "technical problem" that's pushing the settlement price of May 2020 Delivery Contracts to become negative. There is a buyer, or a series of buyers, who are stuck with physical delivery option that they can't actually use, ie they can't take physical delivery of the underlying crude oil because they don't have the storage capacity to store this

10. The negative price indicates that they are getting some buyer, probably a refiner, or a storage facility or a driller, to take the delivery off their hands by PAYING them to buy the oil that's ready for May delivery

11. It's never happened before in the history of Crude Oil Futures trading. It's a very unique situation

12. However, the June delivery WTI futures are still trading in positive territory at $20+/ BBL. And the Brent Futures for June 2020 delivery are trading at $25+/ BBL

13. Will this have implications: surely so. It means that the US Crude Oil producers are now facing a glut and if they don't stop drilling, they will have to give the oil away free, and/or pay people to buy that oil.

14. This oil can't be dumped or disposed off, since that will cause an environmental disaster and result in billions of dollars of penalty (Exxon Valdez, Deepwater Horizon, etc.)

Source: tickerplant

01/04/2020

I hope all of us remember how our neighborhood kirana and vegetable shops are saving the day for us when big players are of little use. We should keep buying from them even at a little higher cost. They need to survive and flourish!!

31/03/2020

Due dates as extended by SEBI for Listed Companies:

*Closing of Trading Window:*
01/04/2020
No further extension

*Corporate Governance u/r 27(2):*
Due date-15/04/2020
Extended-15/05/2020

*Statement of Investor Complaints u/r 13(3):*
Due date-21/04/2020
Extended-15/05/2020

*Shareholding Pattern u/r 31:*
Due date-21/04/2020
Extended-15/05/2020

*Reconciliation of Share Capital u/r 55A:*
30/04/2020
No further extension

*Compliance Certificate u/r 7(3):*
Due date: 30/04/2020
Extended: 31/05/2020

*Compliance Certificate by PCS u/r 40(9):*
Due date- 30/04/2020
Extended- 31/05/2020

*Financial Results u/r 33:*
Due date-30/05/2020
Extended-30/06/2020

*Annual Secretarial Compliance Report u/r 24(A):*
Due date-30/05/2020
Extended-30/06/2020

*Disclosures of Related Party Transactions u/r 23(9):*
Within 30 days of publication of financial statement.

*SAST disclosure u/r 30(1), (2) and 31(4):*
Due date- 7 working days from the end of FY
Extended- 7 working days from the end of June 01, 2020.

02/02/2020

*BUDGET 2020 INSIGHTS*:

*A. RESIDENTIAL STATUS*.

# # *Indian Citizen not* a Resident of any Country (“Stateless Person”) shall be *DEEMED as Resident of India*.

# # In case of *Indian Citizen* or *“Person of Indian Origin”* settled outside India and visiting to India, *in addition to “182 days Criteria”*, condition of *stay for 120 days in the year* and *365 in last 4 years* shall also be applicable.

*B. SALARIES:*

# # *A combined maximum EXEMPTION* limit of *INR 7.50 lakhs* will be applicable for *Provident Fund, NPS and Superannuation Fund* to tax the savings in *”EEE” category for high* salaries employees.

*C. PGBP:*

# # *Tax Audit Limit* u/s 44AB will be *INR 5 crores* for those *businessmen having Cash Transactions not exceeding 5%* of total transactions each of *all receipts and payments*.

# # *Section 35AD* (Investment Linked Deduction) has been *made OPTIONAL*.

*D. CAPITAL GAINS:*

# # *FMV as on 01.04.2001* opted for prior *period transactions* (means upto 31.03.2001) *CANNOT be more than STAMP DUTY* value as on *01.04.2001* (if available).

*E. OTHER SOURCES:*

# # *Dividend is taxable* under the head *“Other Sources”* now with only deduction of *Interest expenditure against* such Income subject to *maximum of 20% of such income*.

_*NOTE - Section 115-O (DDT) omitted, TDS under Section 194 to be deducted by Company @ 10% if dividend (no TDS in case dividend to a person is upto INR 5,000 in non cash).*_

*F. AUDIT and ITR DATES:*
(Applicable from A.Y. 2020-21)

# # *All Audit Dates* (e.g. Tax Audit, TP Audit, 80JJAA Report, 35D Report, 44DA Report, MAT Report) *shall be ONE MONTH prior to ITR due dates*.

# # *ITR due dates* in case of *Companies and Tax Audit* assessees is *increased from 30th September to 31st October*.

_*Note - Means in case of Normal Tax Audits, Tax Audit due date is 30th September and ITR due date is 31st October AND in case of TP cases, Tax Audit and TP Audits due date is 31st October and ITR due date is 30th November.*_

# # *ITR due date* for *Non-Working Partner* shall also be *same as the date of ITR filing* of Partnership *Firm and working Partner*.

*G. TDS/TCS:*

# # *TCS @ 0.1% will be* collected by *SELLER of ANY GOODS* from the *BUYER if the Sales* during the *FY exceeds INR 50 Lakhs* in case of that buyer. In *No PAN cases, TCS will be collected @ 1%*.

*_Note - Applicable to such Sellers whose Turnover exceeds INR 10 crores._*

# # *TCS @ 5% is to be collected* by Money Changer in case the *remittance in foreign currency* (OTHER THAN NEPAL AND BHUTAN) is *equal to or more than INR 7 Lakhs* under LRS.

# # *TCS @ 5%* to be collected by Tour Operator for providing *International Tour Package*.

# # *TDS @ 1%* to be deducted by ECOM Operator (e.g. Amazon, Flipkart etc.) on payment of Sales made to *Suppliers supplying through E-COM*.

*_Note - This TDS is in addition to TCS applicable under GST Law on the above transactions._*

_*Note - In case of Individual or HUF Supplier, No TDS to be deducted under Income tax law if the aggregate sales in a FY is upto INR 5 Lakhs.*_

# # *Time Limit* for concessional *rate of 5% TDS* u/s 194LC/LD in case of *Interest on ECBs* paid to *Non-Residents* has been *extended till 01.07.2023*.

# # *TDS under Section 194J* in case of *Fees for technical services* has been reduced to *2% from 10% earlier*.

# # *Limit of Turnover* has been specified for *Individuals and HUFs* for no *TDS deduction as 1 crores* for businesses and *INR 50 lakhs for professionals* instead Limits in Section of Tax Audit earlier (Section 194A, 194H, 194I, 194J).

# # *Section relating to Form 26AS* has been *omitted* and a new *Section 285BB* has been *inserted in its place for the purpose of ENLARGING* the scope of *26AS to have* details of *Sales and Purchase of Immovable Property*, Shares etc. in *addition to details of TDS and Advance Tax*.

*H. DEDUCTION:*

# # *80EEA* - *Deduction in respect of Interest* on Housing Loan (upto INR 1.50 Lakhs) has *been extended to such loans which* will be Sanctioned till *31.03.2021 instead 31.03.2020 earlier*.

# # *80-IAC* - The *Turnover Limit* for Start-ups for *availing Exemption* under the Section has been *increased to INR 100 crores* to INR *25 crores EARLIER*.



# # *80M* - *New Section* inserted to provide that *Dividend received by a Domestic* Company from *Other Domestic Company* shall not be taxable *subject to the amount* of further *dividend distributed by the RECIPIENT* Domestic Company till *ONE MONTH prior to due date of ITR*.

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01/02/2020

*Key take Away from the Budget 2020-21 for Income Tax and GST*

a) Relief to taxpayers, govt. rationalizes personal income tax rates, the same is as follows:
Income from 2.5 Lacs -5 Lacs – NIL
Income from 5 Lacs -7.5 Lacs -10%
Income from 7.5 Lacs -10 Lacs - 15%
Income from 10 Lacs -12.5 Lacs -20%
Income from 12.5 Lacs -15 Lacs -25%
Income above 15 lacs -30%, with no deduction & exemptions;

New tax regime is optional for taxpayers Optional

b) Dividend distribution tax “DDT” has been abolished, dividend will be taxed in the hands of taxpayers as per slab rates

c) Income tax Audit Limit has been increased from existing Rs. 2 crores to Rs. 5 Crores to those businesses which carry out less than 5% of their business in cash

d) Registration of Charitable institution under Income tax Act will be 100% electronically with provisional registration number

e) Vivad se vishwas scheme has been introduced, taxpayer to pay only amount of disputed tax, will get complete waiver on interest and penalty, if scheme is availed by March 31, 2020

f) To ease allotment of PAN, new process of instantly allotting PAN through Aadhaar will be brought

g) Concessional corporate tax cut to be extended to new domestic companies engaged in power generation

h) Allowance faceless appeals against tax orders on lines of faceless assessmen

i) Co-operative societies will get the option of being taxed at the rate of 22% plus 10% surcharge and 4% cess.

j) Turnover limit under availing exemption for start up has been extended from 25 crores to Rs. 100 Crores

k) To boost startups, Tax burden on employees due to tax on Employee Stock Options to be deferred by 5 years or till they leave the company or when they sell, whichever is earliest.

l) Pre-filling of ITR to be introduced

m) A taxpayer’s charter to be institutionalised in the statute to end taxpayer harassment

n) Under GST, compensation payout to states to be limited to cess collections

o) Aadhar based verification has been introduced for GST Taxpayers

p) Budget proposes a special scheme to provide subordinate debt for MSME

q) Deposit insurance is increased from Rs. 1lac to Rs. 5 lac

r) Govt plans to raise funds via LIC IPO

s) Nominal GDP growth estimates at 10%