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e-Filing of Appeal to Commissioner of Income Tax


Revenue department on 30th December,2015  made compulsory e-filing of appeals before  Commissioner Appeals Income Tax compulsory for those assessee who e-filed their income tax returns.


The assessee aggrieved by the order of the assessing officer makes an appeal before the Commissioner. The Commissioner appeal is the first appellate authority and section 246A specifies the appeal which can be filed before the Commissioner.

Earlier, appeals made were burdensome on the tax payer in regard to the paperwork, compliances, procuring services and constant travelling to and fro in order to get the required work done. The NDA Government since being elected for the current tenure is trying to bring in tax reforms and to accelerate registration procedures. The current electronic filing of appeals can be said to be another step towards such procedures.

Electronic filing of appeals along with documents can be seen as a measure to reduce compliance procedure, transaction cost, cut paper work, minimize error resulting from human interventions and improve the efficiency of appeal procedures.

The department wants to ensure error free service and reduce deficient appeals being made earlier. Online applications will also include hearing of appeals electronically which can improve the time lag made in appeal and sufficiently reduce paperwork. The existing Form 35 used for filing first appeal to the Commissioner would be substituted by new form which as per CBDT would be more structured, objective and aligned with the current provisions of the Income Tax Act.

Electronic filing of appeals can be seen to be a step towards future however there could be apprehensions on such drastic changes. There has always been confusion when filing has been done from manual to electronically leading to wide confusion on documents to be filed, procedures to be followed leading to delay of appeals. Further the question would be the change in utilities, Central Board of Direct Tax (CBDT) has to make over the site. The unnecessary additions made by the assessing officer earlier could also lead to wide debate if found afterwards.
It could be said that this electronic filing of appeals could be welcomed by people as it promises to be more transparent and reduce compliance procedures.

Preparation Tips for IPCC Exams

Preparation Tips for IPCC Exams
Hi students first of all am happy to express my heartiest congratulations those who have achieved success in IPCC examination and let me wish them all the best in their future activities. So my dear students who got negative result do not loss your confidence and start preparation for the next exams with fresh mind and determination, but one thing is famous personalities who failed many times before they tasted success. My dear student’s success it is the product of both intelligence and hard work. So for CA exams both required. Most of the Students are strangling how to start the preparation, from where to start and from which subject to start etc., to overcome such difficulties kindly observe following steps:

Step 1: After completion of your coaching classes analyse yourself
remaining period left for exams and decide for both groups and single group.
Step 2: Draw a schedule for preparation.
Step 3: I would suggest to all, theory subjects better to study early morning.
Step 4: Problematical papers like Accounts, costing & FM have to be practice subject to time constrain otherwise in examinations difficulty to solve the problems with in time.

Step 5: Before going to exams you have to revise total syllabus 2 to 3 times.
Step 6: My dear students in law & income Taxation subjects don't quote wrong section its results may negative marks. If you have 100% confident then quote section otherwise quote as prescribed section.
Step 7: In CA examinations presentation is very important factor and start every question in fresh page and quote question number in middle of the page & try to avoid striking this is helpful to get more marks.

Step 8: After exam don't discuss with your friends regarding the exam. And left your question paper in examination hall and start your preparation for next exam.

Step 9: suppose in group I Accounts paper if you not presented properly just ignore it and prepare for next exam. Normally if any one of the paper not presented properly students are not concentrating on remaining exams. My dear students don't do this kind of mistake may be in remaining papers u may get exemption so think positive.

Step 10: Dear students after completion of your exams in case u have doubt any subject start your preparation immediately because after announcing of the result u have only 2.5 months only for clearing CA exams may be take one or two attempt so don't get mentally stress.

Subject wise tips:
1.    IT & SM: I would suggest to all, start SM subject preparation from last chapter to first chapter. And IT start with flowcharts & decision table later on network, inter net, DBMS finally 1st chapter. From practice manual 40 to 45 marks will expect so concentrate on the same. Remaining part is definition part may be expecting 10 to 15 marks.

2.    INCOME TAX: You have to read every concept in income tax paper & foremost total income problems important. For every problem u have make note points it may help for good marks. Put the currency symbol. My sincere advice is don't start with total income problem in examination y because its take more time for complete. At the time of preparation first of all finish indirect tax (service tax & VAT) because its less concept u may get almost 50 marks.

3.    AUDITING: In auditing subject, company auditor chapter is very important and u can expect 15 to 25 marks. And auditing standards also very important for exams point of view. Auditing is very easy subject and scoring subject.

4.    ACCOUNTS: Group I & II accounts subjects very important subjects and u may expect 12 to 25 marks from accounting standards in each paper. In examination presentation starts with journal entries problem then ledger a/c after that final a/c problem, because time management is very important in CA examinations.

5.     COSTING & FM: In this subject first of all theory part u have to prepare and we can expect 30 to 35 marks later on start practice problems in both costing & FM otherwise u may not  solve the problems in examination.

6.     LAW: First of all prepare company law & other laws because around 50 to 60 marks cover in these topics. Later on business communication etc.
IMPORTENT POINTS:
1.    Time management is very important in CA examination for each question you have 30 minutes and have to finish with time.
2.     And Don't study after 11 :30 PM
3.     Sleep every day 6 to 7 hours and take food properly.
4.    Present your answer point wise.
5.     Don't refer 2 to 3 author books and for IPCC exams coaching materials more than sufficient.
6.    I would suggest you to read the suggested answers carefully its
useful to your examinations.


Before winding up I would wish to all the students who are appearing November 2015 exams. I hope this article useful to your preparation. God bless you and u will come out with the flying colours.

When is Cash Flow statement mandatory for Private limited under New Companies act 2013

Image result for cash flow statement private company

Definition of Financial Statement as per CA, 2013
As per Section 2(40) of the CA, 2013 “financial statement” in relation to a company, includes—
(i) a balance sheet as at the end of the financial year;
(ii) a profit and loss account, or in the case of a company carrying on any activity not for profit, an income and expenditure account for the financial year;
(iii) cash flow statement for the financial year;
(iv) a statement of changes in equity, if applicable; and
(v) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv):
Exemption available
Provided that the financial statement, with respect to One Person Company, small company and dormant company, may not include the cash flow statement i.e. there is an exemption given to OPC, small company and dormant Company for preparing the Cash flow statement for purpose of inclusion in financial statement.
What is OPC, Small Company and dormant company ?
a) One Person Company
As per sec 2(62) of The CA, 2013 “One Person Company” means a company which has only one person as a member.
b) DORMANT COMPANY
As per sec 455 of The CA, 2013 “Dormant Company” means a company
(1) Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.
Explanation.—For the purposes of this section,—
(i) “inactive company” means a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years;
(ii) “significant accounting transaction” means any transaction other than—
(a) payment of fees by a company to the Registrar;
(b) payments made by it to fulfill the requirements of this Act or any other law;
(c) allotment of shares to fulfill the requirements of this Act; and
(d) payments for maintenance of its office and records
c) SMALL COMPANIES:
Sec 2(85) ‘‘small company’’ means a company, other than a public company,—
(i) paid-up share capital of which does not exceed fifty lakh rupees (Rs 50 Lakhs ) or such higher amount as may be prescribed which shall not be more than five crore rupees; ( Rs 5 Crores) or
(ii) turnover of which as per its last profit and loss account does not exceed two crore rupees ( Rs 2 crore ) or such higher amount as may be prescribed which shall not be more than twenty crore rupees ( Rs 20 crores ).
Provided that nothing in this clause shall apply to—
(A) a holding company or a subsidiary company;
(B) a company registered under section 8; or
(C) a company or body corporate governed by any special Act;
Analysis of Small Company:-
(1) A public company will never be a small company.
(2) A Private company should have a maximum of :-
(a) Paid up capital of Rs 50 Lakhs
(b) Turnover of Rs 2 Crores.
(3) Holding and Subsidiary will always be out of the picture of small companies.
Scenario as per old Companies Act, 1956
Such definition of ‘Financial statement’ neither was available under the CA, 1956 nor was the term used in any sections in that Act. Earlier, the Companies (Accounting Standards) Rules, 2006 exempted ‘SMCs’ from preparing the cash flow statement.
Format to be used for preparing Cash Flow Statement
Since no format is prescribed in Schedule III to the CA, 2013, the cash flow statement shall be prepared in the format prescribed in the AS-3 –Cash Flow Statement only.
Applicability of Accounting Standards
Section 129 of the CA, 2013 requires that the financial statements shall comply with the accounting standards notified under Section 133 and Section 133 provides that the Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, in consultation with and after examination of the recommendations made by the National Financial Reporting Authority.
Rule 7 of the Companies (Accounts) Rules, 2014 provides that as a transition provision, the standards of accounting as specified under the Companies Act, 1956 (i.e. the Companies (Accounting Standards) Rules, 2006) shall be deemed to be the accounting standards until accounting standards are specified by the Central Government under Section 133.
Conclusion
The inclusion of cash flow along with balance sheet and P&L for all companies is a new requirement. Earlier only listed companies under listing agreement clause no. 32 are required to prepare cash flow statement as per AS 3 of Accounting standards issued by the ICAI.
Simply, We can state that the cash flow statement shall be prepared for all companies (including Private Company) however the certain exemption is provided to OPC, Dormant Companies and Small Companies.
Since the Companies Act, 2013 does not lay down any format for preparation of cash flow statement, companies will need to follow AS 3 in this regard. In respect of listed companies, the listing agreement requires the indirect method for preparing cash flow statements. Thus, under the Companies Act, 2013, non-listed companies will have a choice of either applying the direct or indirect method under AS 3 to prepare the cash flow statement. Due to the listing agreement requirement, that choice will not be available to listed companies
This means a private limited company with paid up share capital of less than 50 lakh rupees or such higher amount as may be prescribed (not exceeding 5 crore ruppes) or with a turnover of less than 2 crore rupees or such higher amount as may be prescribed (not exceeding 20 crore rupees) is not required to prepare cash flow statements while preparing financial statements at the end of the financial year.
Please remember, it’s not a mandatory provision. If small companies want then they can prepare their cash flow statements and file it with registrar of companies or ROC.

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CBDT extended the due date for filing of income tax return u/s 44AB to 30.11.2014

F.No.153/53/2014-TPL (Pt.I)

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

(CENTRAL BOARD OF DIRECT TAXES)

****

North Block, TPL Division New Delhi, the 26th September, 2014


Order under section 119 of the Income-tax Act, 1961



Section 44AB of the Income-tax Act, 1961 („the Act‟) read with rule 6G of the Income-tax Rules, 1962 („the Rules‟) requires certain persons to file tax audit report in Form No.3CA/Form No.3CB along with prescribed particulars in Form No.3CD. Vide Notification No. 33/2014 dated 25th July, 2014, the forms for filing tax audit report have been revised. As per section 44AB of the Act, the tax audit report has to be obtained and furnished electronically by 30th November of the Assessment year in case of an assessee who is required to furnish report under section 92E of the Act and 30th September of the Assessment year in case of other assessees.

2.               In view of the representations received by the Central Board of Direct Taxes („the Board‟), the due date for obtaining and furnishing of tax audit report under section 44AB of the Act for assessment year 2014-15 in respect of assessees who are

not required to furnish report under section 92E of the Act has been extended from

30th September, 2014 to 30th November, 2014 vide Order No.133/24/2014-TPL dated 20th August, 2014 in exercise of power of the Board under section 119 of the Act. It has been further clarified that the tax audit report filed during the period from 01.04.2014 to 24.07.2014 in the pre-revised forms shall be treated as valid tax audit report under section 44AB.


3.               After the extension of the due date for obtaining and furnishing of tax audit report under section 44AB of the Act, a number of representations have been received in the Board requesting for extension of due date for furnishing of return of income for the assessees who are required to obtain and furnish tax audit report under section

44AB of the Act and for whom the due date for furnishing return of income under section 139(1) of the Act is 30th September, 2014. Writ petitions have also been filed in various High Courts for directing the Board to extend the due date for furnishing of return of income from 30th September, 2014 to 30th November, 2014 in conformity with the extension of the due date for filing of tax audit report.



Page 1 of 3



4.               In the High Court of Delhi, a writ petition No.5990/2014 has been filed on this

issue. However, before the pronouncement of judgement, the petitioner withdrew the writ petition on 23rd September, 2014. The High Court of Madras passed interim order on 24.09.2014 in writ petitions No.25443 and 26306 to 26310 of 2014 and directed the Board to consider the request of the assessees in general and consider the extension of time for furnishing the return of income, in tune with the order passed by the Board in F. No.133/24/2014-TPL dated 20.08.2014. It has been reported that the High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh disposed the writ petition No.28159 and 28627 of 2014 with a direction to the Board to dispose of the representation of the petitioners. The High Court of Bombay disposed of writ petition No.2492 of 2014 vide order dated 25.09.2014 and directed the Board to look into the practical difficulties of the petitioners and take a just and proper decision in this matter.

5.               The Gujarat High Court allowed Special Civil Application No.12656 of 2014 with Special Civil Application No.12571 of 2014 and vide judgement dated

22.09.2014 directed the Board to modify the order under section 119 of the Act dated 20.08.2014 by extending the due date for furnishing the return of income to 30th November, 2014. It has also been further stated in the said order that it would be open for the Board to qualify such relaxation by extending the due date for all purposes, except for the purpose of Explanation 1 to section 234A of the Act.

6.               In compliance to the judgement of High Court of Gujarat and after considering the representations made for extension of due date for furnishing of return of income in compliance with the directions of the other High Courts, the Board, in exercise of power conferred by section 119 of the Act, hereby extends, subject to para 7 below,

the `due-date‟ for furnishing return of income from 30th September, 2014 to 30th November, 2014 for the assessment year 2014-15 for all purposes of the Act, in case of an assessee, who,

(i)              is required to file his return of income by 30th September, 2014 as per clause

(a)  of Explanation 2 to sub-section (1) of section 139 of the Income-tax Act, 1961; and


(ii)            is also required to get his accounts audited under section 44AB of the Act or is a working partner of a firm whose accounts are required to be audited under section 44AB of the Act.

7.         There shall be no extension of the “due date” for the purposes of Explanation

1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessees shall remain liable for payment of interest as per the provisions of section 234A of the Act.

Page 2 of 3



8. For removal of doubt, it is clarified that for an assessee (other than working partner of a firm which is required to obtain and furnish tax audit report), who is required to file its return of income by 30th September, 2014 but not required to obtain and furnish tax audit report under section 44AB, the due date for furnishing of return of income for assessment year 2014-15 remains as 30th September, 2014.



(Rajesh Kumar Bhoot) Director (TPL)

Copy to:-


(i)              The Chairman (CBDT), All Members, Central Board of Direct Taxes for information.

(ii)            All Cadre Controlling Pr. Chief Commissioners of Income-tax with a request to circulate amongst all officers in their regions/charges.

(iii)          The Pr. Director General of Income Tax (Admn.) Mayur Bhawan, New Delhi.

(iv)          The Director General of Income Tax (Systems) with a request for uploading it on the Departmental website.

(v)            Commissioner of Income Tax  (M&TP), CBDT.

(Rajesh Kumar Bhoot)


Director (TPL)

Gujarat High Court directs CBDT to extend due date for filing of ITR to 30-11-2014 subject to Sec. 234A interest

The CBDT vide Order [F.NO.133/24/2014-TPL], dated 20-8-2014 had extended the due date for filing of tax audit report to November 30, 2014. However, the CBDT had not extended the due date for filing of the Income-tax Return ('ITR'). Consequently, many taxpayers were facing difficulty in filing of ITR without filing the tax audit reports.
In view of this, All Gujarat Federation of Tax Consultant filed a writ petition in the Gujarat High Court contending for the extension of the due date for filing of ITR to November 30, 2014.
On the impugned issue, petitioner argued that ITR is prepared on the basis of information collated and reported in the tax audit report and in absence of tax audit report it would not be possible for a taxpayer to compute his tax liability and file return of income on due date 30-09-2014. On the other side, the Income-tax Department argued that if the blanket extension is given for filing of return of income, the taxpayer would also defer the payment of due taxes to the credit of Central Government which would be prejudicial to interest of revenue. Dept. also gave surety to the Court that no penalty or interest would be levied for revision of return by the taxpayer, if any, pursuant to such tax audit.
However, Gujarat High Court suggested a mid-way which would tackle the practical problem being faced by the taxpayers and which would save the interest of revenue. Gujarat High Court directed the CBDT to extend the due date for filing of return of income for all purposes, inter-alia, carry forward of losses, allowability of deductions under Sections 80-IA, 80-IB, 80-IC, 80-ID, etc.
However, such extension has been granted subject to charge of interest under Section 234A for the period commencing from 01-10-2014 and up to the actual date of filling the return of income.
However, in such cases, the taxpayer will enjoy the option of paying taxes before the due date of 30-09-2014 and to that extent enjoy the exemption from levy of interest under Section 234A.
The copy of order is awaited.

Furnishing of the report of audit under section 44AB of the Act for Assessment Year 2014-15 is Extended to 30th Nov 2014

F.No.133/24/2014-TPL
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
****
Room No. 147 B-II, North Block
New Delhi, the 20th August, 2014

Order Under Section 119 of the Income-tax Act, 1961

In exercise of power conferred by section 119 of the Income-tax Act (‘the Act’), the Central Board of Direct Taxes (CBDT) hereby extends the due date for obtaining and furnishing of the report of audit under section 44AB of the Act for Assessment Year 2014-15 in case of assessees who are not required to furnish report under section 92E of the Act from 30th day of September, 2014 to 30th November, 2014.

2. It is further clarified that the tax audit report under section 44AB of the Act filed during the period from 1st April, 2014 to 24th July, 2014 in the pre-revised Forms shall be treated as valid tax audit report furnished under section 44AB of the Act.


(J.Saravanan)
Under Secretary (TPL-III)


Copy to:-
(i) The Chairman (CBDT), All Members, Central Board of Direct Taxes for
information.
(ii) All Cadre Controlling Pr. Chief Commissioners of Income-tax with a request to
circulate amongst all officers in their regions/charges.
(iii) The Pr. Director General of Income Tax (Admn.) Mayur Bhawan, New Delhi.
(iv) The Director General of Income Tax (Systems) with a request for uploading it on the
Departmental website.
(v) Commissioner of Income Tax (M&TP), CBDT.
(J.Saravanan)
Under Secretary (TPL-III)

Representation made by ICAI with respect to new formats of Form No.3CA/3CB and 3CD.

The new formats of tax audit reports namely Form No.3CA, 3CB and 3CD have been notified through Notification no. 33/2014 on 25/7/2014 with immediate effect. With regard to the same, certain genuine concerns were raised by the members, which, ICAI has, through a representation dated 07.08.2014, brought to the notice of the Hon’ble Finance Minister, Revenue Secretary, and Chairman CBDT for appropriate action at their end. Also, certain preliminary observations on the new forms have been shared with them.

For the reasons mentioned in detail in the representation and summarized below, ICAI has suggested:

The new formats of tax audit reports be made effective from the Assessment Year 2015-16 and not Assessment Year 2014-15. Alternatively, the due date for furnishing tax audit reports for the Assessment Year 2014-15 may be extended to 30th November, 2014

It has also been suggested that appropriate clarification be issued with regard to the position of the tax audit reports e-filed during 01.04.2014 to 24.07.2014 relating to Assessment Year 2014-15.

Reasons given in brief:

a) The Internationally accepted Standard on Auditing-700 has not been considered.
b) The audit of 50% of the taxpayers like listed companies, PSUs, Banks, Insurance Companies have already been completed and the financial statements are published. Only, the audit reports are pending for uploading in the e-filing portal.
c) The notification has been issued just two months before the last date of furnishing tax audit report and the schema for the same is not yet made available. This will cause undue hardship to both the taxpayer and the auditors. 


Direct Taxes Committee, ICAI

File your Income tax e-Filing directly from Net Banking Account



Income tax department have announced that now assesses can e-file their returns directly from their net banking account. following banks have given link as on 14/08/2014

1. Union Bank of India
2. Corporation Bank
3. Oriental Bank of Commerce