Union Budget 2024 Highlights: Announcements by Finance Minister Nirmala Sitharaman

Summary of Direct and Indirect Tax Proposals: Budget 2024-25

 Summary of the direct and indirect tax proposals made in the Budget 2024-25 (Finance Bill 2024) presented by Smt Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs:

Highlights of the Direct Tax Proposals of Finance Bill, 2024

No changes in Tax Rates

No changes have been proposed to the existing rates of direct and indirect taxes. The existing rates of income tax, gst, import duties, etc. have been retained.

To provide continuity, some tax benefits and exemptions have been extended by 1 year until 31st March 2025. These include:

  1. Tax benefits for startups;
  2. Tax exemptions on certain income for International Financial Services Centers (IFSCs); and
  3. Tax exemptions on investments made by sovereign wealth funds and pension funds.

The Interim Budget 2024 maintains the status quo on tax rates and extends certain tax breaks by a year to provide stability and continuity in taxation. No new changes or reforms have been introduced to the tax structure or rates.

Withdrawal of Outstanding direct tax demands

The FM has announced to withdraw the outstanding demands of income tax. Here is a summary of the key points regarding the withdrawal of outstanding direct tax demands announced in the Interim Budget 2024:

i) In line with the government’s vision to improve ease of living and doing business, outstanding petty direct tax demands up to Rs 25,000 dating back to 1962 will be withdrawn for the period up to FY 2009.

ii) Similarly, outstanding demands up to Rs 10,000 will be withdrawn for the FY 2010-11 to 2014-15.

iii) These are non-verified, non-reconciled or disputed demands that continue to remain on the books, causing anxiety for taxpayers.

  1. Withdrawing these demands will help provide relief to honest taxpayers and enable refunds for subsequent years.
  2. This is expected to benefit about 1 crore taxpayers who have such outstanding demands.
  3. The move aims to improve tax payer services and reduce harassment of taxpayers over small disputed sums dating back decades.

In short, the Interim Budget 2024 has announced the withdrawal of old, petty direct tax demands up to Rs 25,000 till FY 2009-10 and Rs 10,000 between FY 2010-11 to 2014-15 to provide relief to taxpayers.

Highlights of the Indirect Tax Proposals of Finance Bill 2024

The FM has proposed in Budget 2024 to retain the same tax rates in respect of GST, import duty, etc. indirect taxes as are applicable at present, i.e. existing GST and import duty rates shall continue in FY 2024-25 as well.

BUDGET HIGHLIGHTS 2024-25, Ministry of Finance

Amnesty Scheme for LLPS – MCA issues circular condoning delay in filing Form 3, 4 and 11

This scheme aims to grant a condonation of delay to LLPs regarding the filing of Form-3, Form-4, and Form-11 from September 1, 2023 to September 30, 2023.
This scheme aims to grant a condonation of delay to LLPs for filing of Form-3, Form-4, and Form-11 from September 1, 2023 to September 30, 2023.

The Ministry of Corporate Affairs (MCA) has notified the Limited Liability Partnership (LLP) Amnesty Scheme. The ministry vide circular number No. 8/2023 issued on 23rd August 2023 condoning the delay in filing of Form-3, Form-4 and Form-11 under Section 67 of Limited Liability Partnership (LLP) Act, 2008 read with Section 460 of Companies Act, 2013.

These forms shall be available for filing from 01.09.2023 onwards till 30.11.2023 (both dates inclusive). Also, the LLPs availing the scheme shall not be liable for any action for delayed filing of the Form-3, Form-4 and Form-11.

Based on the representations received by the government that certain LLPs are finding difficulties in filing Form- 3 (LLP Agreement and changes therein), Form- 4 (Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/ designated partner) and Form- 11 (Annual Return of LLP) for various reasons including due to mismatch in the  master data in electronic registry of the Ministry.

Due to this, the records/data in the electronic registry are also not being updated. Thus, to address these issues, the government has decided to grant one-time relaxation in additional fees to those LLPs who could not file the Form 3, 4 and 11 within the due date and provide an opportunity to update their filings and details in master data for future compliances.

The following are highlights of Amnesty Scheme:

  • The Form-3 and Form-4 would be processed under Straight Through Process (STP) mode for all purposes except for change in business activities.
  • The stakeholders are advised to file these forms in sequential manner i.e., the filing for old events date may be filed first and so on so as to update the master data in proper manner.
  • At the time of filing these forms, the pre-filled data as per existing master data of the LLP shall be provided in each of above mentioned forms but the same shall have the facility to edit. The onus of filing correct data would be on the stakeholders.
  • In case of misrepresentation, the Designated Partner and the professional certifying the form may be liable for adverse action as per provisions of the law.
  • The filing of Form-3 and Form-4 without additional fee shall be applicable for the event dates 01.01.2021 and onwards.
  • For events dated prior to 01.01.2021, these forms can be filed with 02 times and 04 times of normal filing fees as additional fee for small LLPs and Other than small LLPs respectively.
  • The filing of Form-II without additional fee shall be applicable for the financial year 2021-22 onwards.
  • Form-II for previous years (prior to financial year 2021-22) can be filed with 02 times and 04 times of normal filing fee as additional fee for small LLPs and Other than small LLPs respectively.
  • These forms shall be available for filing from 01.09.2023 onwards till 30.11.2023 (both dates inclusive). The LLPs availing the scheme shall not be liable for any action for delayed filing of the Form-3, Form-4 and Form-11.

Source: General-Circular-No-08-20230823

ITR filing for AY 2023-24 starts. CBDT enables Excel Utilities for ITR-1, ITR-4

ITR filing for AY 2023-24 starts. CBDT enables Excel Utilities for ITR-1, ITR-4

For the assessment year 2023-24, the Income Tax Department has released an offline Excel-based utility for filing ITR-1 Sahaj and ITR-4 Sugam. The utility is available for download from the official Income Tax Department website. Because the utility and forms may change from time to time, it is critical to check the official website for the most recent version/updates and instructions.

The Excel-based utility for filing ITR-1 Sahaj and ITR-4 Sugam for AY 2023-24 is available for download from the Income Tax Department’s website – Released on 25-Apr-2023 and updated on 05-May-2023. The utility – Excel & Java, facilitates to electronically file ITR-1 and ITR-4 forms.

 

The instructions, utilities, schemas and validation rules will be updated as and when there is a change after due approval from ITD (Income Tax Department)

 General Instructions for Returns:

  1. Select the Assessment Year
  2. Download and extract the zip file containing the utilities to the folder and open the utility
  3. System Requirements:  Excel Utilities:

 The instructions, utilities, schemas and validation rules will be updated as and when there is a change after due approval from ITD

Using the Excel Utility

When using the Excel utility, it is critical to use a compatible version of Excel that supports macros. Resident and Ordinarily Resident (ROR) individuals with a total income of up to Rs 50 lakh from salaries, one house property, and other sources are eligible for ITR-1 Sahaj. Individuals/HUFs/partnership firms (other than LLP) with a total income of less than Rs. 50 lakh can file the ITR-4 Sugam form.

Using Macros in Excel

It is necessary to enable macros in the Excel sheet before using the ITR utility. To enable macros in Excel, navigate to File > Options > Trust Centre > Trust Centre Settings > Macro Settings > Enable All Macro > Click ‘OK’. Only enable macros in Excel sheets from trusted sources. Some Excel utility worksheets may include a help.txt file that contains instructions on how to enable macros.

Common Technical Problems

Macro errors, login issues, XML validation errors, and offline utility issues are some of the most common technical issues encountered when using the ITR utility. If you encounter any technical difficulties while using the ITR utility, you can seek assistance from the Income Tax Department Helpdesk or Tax Professional.

ITR Utility Customer Service

If you require technical assistance with the ITR utility, please visit the Income Tax Department’s official website and check the FAQs section for offline ITR utility. The FAQs section answers frequently asked questions about the ITR utility and can assist in resolving some technical issues. You can also get help from the Income Tax Department by calling their toll-free number or emailing them.

Conclusion

Filing ITR-1 Sahaj and ITR-4 Sugam using the Income Tax Department’s Excel utility can help to simplify the tax filing process. You can effectively file your taxes by downloading the utility, enabling macros in Excel, and understanding the requirements for using the utility. If you run into any technical difficulties or require assistance, the Income Tax Department and tax professionals are here to help.

Source: Income Tax Portal

Ministry of Corporate Affairs to launch 56 forms in V3 portal from Jan, 2023

Source: MCA Circular

The Ministry of Corporate Affairs (MCA) is all set to launch the Second Set of Company Forms on the MCA21 V3 portal, in January 2023, comprising of total 56 forms.

The first lot will consist of 10 forms to be released on January 9, 2023, and the second lot will consist of 46 forms to be released on January 23, 2023.

In order to simplify the process of integrating these forms into ( web based filing)  the  MCA21 V3 portal, the Ministry of Corporate Affairs has requested stakeholders to take note of the following points:

(1) For 10 forms scheduled for rollout from January 7, 2023, at 12:00 a.m. to January 8, 2023, at 11:59 p.m., company e-Filings on the V2 portal will be disabled for the specified forms that are scheduled to be released on January 9, 2023.

(2) For 46 forms scheduled for rollout on January 23, 2023, company e-Filings on the V2 portal will be disabled from January 7, 2023, at 12:00 a.m. to January 22, 2023, at 11:59 p.m.

(3) All stakeholders are advised to ensure that there are no SRNs in “pending payment” or “resubmission” status.

(4) Offline payments in V2 for the above 56 forms using the “Pay Later” option would be discontinued on December 28, 2022, at 12:00 AM. The stakeholders are required to pay for these forms in V2 online (via credit/debit card or net banking).

(5) Due to the upcoming release of 56 company forms, the V3 portal will be unavailable from January 7 at 12:00 AM to January 8 at 11:59 PM for the roll-out of 10 company forms, and from January 21 to 22, 2023, for the roll-out of 46 company forms.

(6) The V2 Portal for company filing will continue to be available for all forms except the 56 mentioned above.

Source: MCA Circular

LIST OF 10 COMPANY FORMS TO BE ROLLED OUT ON 09 Jan 2023

Sl. No. Form Number Form Name
1 SPICe+ PART A Application for reservation of name for new company incorporation
2 RUN Application for change of name of existing company
3 SPIce+ PART B Integrated Company Incorporation Application
4 AGILE PRO S Application for Goods and services tax Identification number , employees state Insurance corporation registration pLus Employees provident fund organisation registration, Profession tax Registration, Opening of bank account and Shops and Establishment Registration
5 e-AOA[INC-34] Articles of Association
6 e-MOA[INC-13] Memorandum of Association
7 e-MOA[INC-31] Articles of Association
8 e-MOA[INC-33] Memorandum of Association
9 INC-9 Declaration by Subscribers and First Directors
10 URC-1 Application by a company for registration under section 366

LIST OF 46 COMPANY FORMS TO BE ROLLED OUT ON 23rd Jan 2023

Sl. No. Form Number Form Name
1 DIR-12 Particulars of appointment of directors and the key managerial personnel and the changes among them
2 DIR-11 Notice of resignation of a director to the Registrar
3 DIR-3 Application for allotment of Director Identification Number
4 DIR-3C Intimation of Director Identification Number by the company to the Registrar DIN services
5 DIR-5 Application for surrender of Director Identification Number
6 DIR-6 Intimation of change in particulars of Director to be given to the Central Government
7 INC-12 Application for grant of License to an existing company under section 8
8 INC-18 Application to Regional Director for conversion of section 8 company into any other kind of company
Sl. No. Form Number Form Name
9 INC-20 Intimation to Registrar of revocation of license issued under section 8
10 INC-20A Declaration for commencement of business
11 INC-22 Notice of situation or change of situation of registered office
12 INC-23 Application to the Regional Director for approval to shift the Registered Office from one State to another state or from jurisdiction of one Registrar to another Registrar within the State
13 INC-24 Application for approval of Central Government for change of name
14 INC-27 Conversion of public company into private company or private company into public company or Conversion of Unlimited Liability Company into Limited Liability Company
15 INC-28 Notice of Order of the Court or any other competent authority
16 INC-4 One Person Company – Change in Member/ Nominee
17 INC-6 One Person Company – Conversion form
18 MGT-14 Filing of Resolutions and agreements to the Registrar under section 117
19 MR-1 Return of appointment of managing director or whole time director or manager
20 MR-2 Form of application to the Central Government for approval of appointment or reappointment and remuneration or increase in remuneration or waiver for excess or over payment to managing director or whole time director or manager and commission or remuneration to directors
21 NDH-4 Form for filing application for declaration as Nidhi Company or updation of status by Nidhis.
22 PAS-3 Return of Allotment
Sl. No. Form Number Form Name
23 SH-7 Notice to Registrar of any alteration of share capital
24 SH-11 Return in respect of buy-back of securities
25 SH-8 Letter of Offer
26 SH-9 Declaration of Solvency
27 NDH-1 Return of Statutory Compliances
28 NDH-2 Application for extension of time
29 NDH-3 Return of Nidhi Company for the half year ended
30 GNL-3 Particulars of person(s) charged for the purpose of sub-clause (iii) or (iv) of clause 60 of section 2
31 PAS-6 Reconciliation of Share Capital Audit Report (Half-yearly)
32 MGT-3 Notice of situation or change of situation or discontinuation of situation, of place where foreign register shall be kept
33 PAS-2 Information Memorandum
34 DIR-9 Report by the company to Registrar for disqualification of Directors
35 DIR-10 Application for removal of Disqualification of Directors
36 AOC-5 Notice of address at which books of account are maintained
37 FC-1 Information to be filed by foreign company
38 FC-2 Return of alteration in the documents filed for registration by foreign company
39 FC-3 Annual accounts along with the list of all principal places of business in India established by foreign company
40 FC-4 Annual Return of a Foreign company
41 GNL-2 Form for submission of documents with the Registrar
42 GNL-4 Addendum to form
43 MSC-1 Application to ROC for obtaining the status of dormant company
44 MSC-3 Return of dormant companies
45 MSC-4 Application for seeking status of active company
46 RD-1 Form for filing application to Regional Director

Stakeholders are advised by MCA to plan accordingly.

CBDT extends due date for filing Income Tax Return for AY 2022-23 to Nov 7

Providing a relaxation to the tax payer, the Central Board of Direct Taxes has extended the deadline for filing income tax return for the assessment year of 2022-23 till November 7, 2022. The decision was taken on Wednesday. It is to be noted that the last date to file ITR for FY23 was October 31.

The Central Board of Direct Taxes (CBDT) said in a notification that the ITR filing due date has been extended as it had last month extended the deadline for filing audit reports.

Providing a relaxation to the tax payer, the Central Board of Direct Taxes has extended the deadline for filing income tax return for the assessment year of 2022-23 till November 7, 2022. The decision was taken on Wednesday. It is to be noted that the last date to file ITR for FY23 was October 31.

CBDT extends the due date for furnishing Income Tax Return for AY 2022-23 to 7th November, 2022 for certain categories of assessees in consequence of extension of due dates for filing various reports of audit. Circular No. 20/2022 dated 26.10.2022 issued.

CBDT’s extension of due date for filing of Income Tax Return (ITR) for Assessment Year 2022-23 from 31/10/2022 to 07/11/2022 applies to the following assesses:

a) Companies
b) Persons subject to Tax Audit or Audit under any other law
c) Partner of Firm which is subject to Tax Audit
d) Other specified persons whose due date of filing the return of income is 31/10/2022.

Source: CBDT Circular

MCA extends time for filing e-form DIR-3-KYC & DIR-3-KYC-WEB

The MCA vide General Circular No. 09/2022 dated September 28, 2022 extends the timeline for filing e-form DIR-3-KYC and web-form DIR-3-KYC-WEB without fee upto October 15, 2022.

Director’s KYC Filing is an annual compliance and applies to every person who was allotted a DIN (Director Identification Number) on or before 31st March 2022. The purpose of filing the DIR-3 KYC form to the ROC is to keep the records of the ROC updated with the correct address, mobile and email address of the directors/designated partners.

It is a mandatory filing, and if filed within the due date of 30th September 2022, there is no government fee. The DIN Numbers for which the KYC is not filed within its due date get deactivated, and the same can be activated after the filing of DIR-3 KYC with late filing fees of Rs. 5000 for each defaulting director or the designated partner.

Representation has been received in the Ministry requesting for an extension of time beyond September 30, 2022 for filing e-form DIR-3-KYC and web form DIR-3-KYC-WEB without payment of fee.

The matter has been examined in the Ministry and it has been decided to allow filing of e-form DIR-3-KYC and web-form DIR-3-KYC-WEB without filing fee upto October 15, 2022.

Source: MCA General Circular 09/2022