President’s Message | February 2020
Dear Professional friends,
Let me begin the message for the month by congratulating our new President CA. Atul Kumar Gupta, on he assuming the highest chair of office in ICAI and his raising would bring us the choicest of celebration to ICAI and its members. Last month results have brought in lot of smiles to new made CAs and my best wishes to them and their career ahead. KSCAA is trying to outreach such young members in its drive to galvanise membership to the association. Somewhere, the number of new members entrants is extensively low compared to the total number of members in the region, we probably may have to dwell it appropriately to attract more young membership to the association.
The Annual Conference ‘Anavarata’ topics are cherry picked in the background of its relevance today and tomorrow. Many in the drawing room believe and resonate the thought that tomorrow is more challenging than today and we have adhered to drift from traditional topics to a slightly upcoming areas of practice. To register for the Conference Click Here.
News Roundup
Goods and Service Tax
Honourable FM Smt. Nirmala Sitharaman during her presentation of first budget of the current decade lauded the efforts of all stakeholders on various achievements in GST law implementation like buoyant tax collections, efficiency in the logistics, reductions in the overall monthly expense bill of families, etc. She also emphasised on the forthcoming processes of e-invoicing, new return forms, etc. which are expected to be live from 1st April 2020. The flurry of intimations and advisories have started flowing in from the department throwing variety of challenges to our fellow members. I’m sure our members are well positioned and well equipped to take on with these challenges head on.
Corporate and Business Law
As part of Government of India’s ease of doing business initiatives, the Ministry of Corporate Affairs would be shortly notifying and deploying a new Web Form christened ‘SPICe+’ replacing the existing SPICe form. This would be an integrated form offering multiple services viz. name reservation, incorporation, DIN allotment, mandatory issue of PAN, TAN, EPFO, ESIC, GSTIN, opening of bank account etc., Once notified, all new name reservations for new companies as well as new incorporations shall be applied through SPICe+ only. This could reduce the burden of filing various forms for different registrations and also time taken to obtain various registrations.
MCA has placed a consultation paper to examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability. This paper is placed in the Ministry’s website to invite suggestions/comments on the consultation paper. MCA has sought for suggestions/comments on this consultation paper along with justification in brief. The comments/ suggestions may be sent latest by 28th February, 2020 through email at audit.policy@mca.gov.in. Name, telephone number and address of the sender are required to indicated in the e-mail while sending the suggestions / comments. It is a good opportunity for the professionals to suggest the changes in the draft consultation paper and highlight the changes required which would help the industry.
Direct Tax
- CBDT has released Circular which explains provisions related to TDS on Salary under Section 192 of Income Tax Act, 1961 applicable for A.Y. 2020-21 or F.Y. 2019-20. Circular also explains taxation of different components of Salary, Tax Treatment of Allowances, Perquisites, Retirement benefits etc.
- CBDT vide Income Tax has released Format of Revised Form Sahaj (ITR-1) and Sugam (ITR-4) as applicable for Assessment Year 2020-2021 and also added a new proviso to Income Tax Rule 12 and provided who cannot file Form Sahaj (ITR-1) and Sugam (ITR-4) for A.Y. 2020-21.
- Deduction of TDS in respect of Cash Withdrawal above Rs. 1 Crore by an account holder of National Savings Schemes.
- Exemptions and Deductions Foregone to opt for optional scheme- LTC, HRA, some of the allowances as per Sec 10(14), Standard Deduction (u/s 16), Allowance to MP/MLA Sec – 10(17), Allowance for income of minor, Sec – 10AA (SEZ) Exemption, , Interest on house property for self-occupied or vacant property/Loss under the head HP, Additional Depreciation, Deductions u/s 35, 35AD, 35CCC, Deduction from family pension u/s 57, Deductions under Chapter VIA (except Sec – 80CCD and 80JJAA).
- Increase of Limit under 44AB – Prescribed Limit of Turnover of a Business for applicability of Section 44AB has been increased from 1 Crore to 5 Crores only on the fulfilment of the condition that the Aggregate of Receipts and Aggregate of Payments in cash during the previous year does not exceed 5% of such Receipts and such Payments respectively. In other cases the limits remains of Rs. 1 Crore only.
- Section 115BAD – Tax on income of certain resident Co-operative Societies– This section provides an option to resident co-operative societies to compute their income tax payable at the rate of 22% from the Financial Year 2020-21. To avail this option the income of Co-operative Societies shall be calculated without giving effect to the exemptions/deductions as mentioned in Sec 115BAA.
- Section 115JD – Tax credit for Alternate Minimum Tax– The provision of this act is not applicable to those person who has opted to exercise the option to pay the tax under the new tax scheme i.e. U/S 115BAC, U/S 115BAD.
- Due Date of Corporate Tax Return – In order to enable pre filling of data in income tax return from tax audit it is proposed to amend the Sec 139(1) providing 31st October as due date for filing return instead of 30th September.
- Section 115-O: Dividend distribution tax (DDT) would not apply from 1st day of April, 2020. Dividend income will be taxed in the hands of shareholders only.
- Section 80M is being reintroduced in respect to deduction of certain inter-corporate dividends.
Conclusion
I read an interesting phrase from Rig Veda, which is ‘Aano bhadra krtavo yantu vishwatah’, meaning let the noble thought come to us from all the directions. Emphasising that the thought and knowledge is an ever-flowing river which can’t rest at some point or some time and as human we need to be open to accept knowledge from all sides. Knowledge alike river would continuously flow and would take form and phases by time, and as a professional especially in todays world, this is very apt that knowledge and all the forms of knowledge is very important.
My Wishes to you all for a great learning and enriching experience.
Yours Sincerely,
Chandrashekara Shetty,
President
