Sunday, 1 April, 2018 - Sunday, 15 April, 2018

Vistra India Update 349

INCOME TAX

New ITR forms for AY 2018-19 notified

The Central Government of India has notified new ITR forms for FY 2018-19. Form ITR 1 can now be filed only by resident Individuals. Additional details are also to be entered in new ITR forms.

Click to view the circular.

Application for allotment of PAN amended

Form 49A and Form 49AA has been amended to provide option to enter transgender under gender details.

Click to view the circular.

Procedure for submission of Form No. 60 by any person who does not have a Permanent Account Number and who enters into any transaction specified in Rule 114B of the Income-tax Rules, 1962

As per second proviso of Rule 114B (Transactions in relation to which Permanent Account Number is to be quoted in all documents for the purpose of clause (c) of subsection (5) of section 139A of the Income-tax Rules, 1962, any person who does not have a Permanent Account Number and who enters into any transaction specified in this rule, shall make a declaration in Form No. 60 giving therein the particulars of such transaction either in paper form or electronically under the electronic verification code.

The Central Government has now specified the procedure for electronic verification as detailed below

The electronic verification can be enabled using electronic portal/application approved for transactional facility by the regulator

The electronic verification can also be enabled using any of the following specified Aadhaar Authentication methods

Type 2 Authentication - Authentication of residents through One- Time-Password (OTP) delivered to resident's mobile number and/or e-mail address present in CIDR

Type 3 Authentication - Authentication of residents using one of the biometric modalities, either iris or fingerprint

Type 4 Authentication - Authentication of residents using 2-factor authentication with OTP as one factor and biometrics (either iris or fingerprint) as the second factor

Type 5 Authentication - Authentication of residents using OTP, fingerprint & iris together

Click to view the circular

Procedure for registration and submission of Form No. 61 as per Rule 114D of Income-tax Rules, 1962.

Rule 114D of the Income Tax Rules, 1962 specifies that every person referred to in clauses (a) to (k) of sub-rule (1) of rule 114C; and sub-rule (2) of rule 114C and who is required to get his accounts audited under section 44AB of the Income Tax Act,1961 who has received any declaration in Form No. 60, in relation to a transaction specified in rule114B, shall furnish a statement in Form No. 61

Further, as per sub-rule (1)(i) and sub-rule (4) of Rule 114D, the statement in Form No. 61 shall be furnished through online transmission of electronic data to a server designated for this purpose and in accordance with the data structure specified in this regard by the Principal Director General of Income-tax (Systems)

Now the Central government has laid down the procedure for online filing of Form 61.

Click to view the circular

Procedure for registration and submission of statement of financial transactions (SFT) as per section 285BA of Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962.

Section 285BA of the Income Tax Act, 1961 requires specified reporting persons to furnish statement of financial transaction. Rule 114E of the Income Tax Rules, 1962 specifies that the statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Act shall be furnished in Form No. 61A.

Now the Central government has laid down the procedure for online filing of Form 61A

Click to view the circular

Procedure for registration and submission of Statement of Reportable Account as per section 285BA of Income-tax Act, 1961 read with Rule 114G of Income-tax Rules, 1962.

Section 285BA of the Income Tax Act, 1961 requires prescribed reporting financial institution to furnish Statement of Reportable Account. Rule 114G of the Income Tax Rules, 1962 specifies that the Statement of Reportable Account required to be furnished under clause (k) of sub section (1) of section 285BA shall be furnished by a reporting financial institution in respect of each account which has been identified, pursuant to due diligence procedure specified in rule 114H, as a reportable account in Form No. 61B

Now the Central government has laid down the procedure for online filing of Form 61A

Click to view the circular

Income Tax Rules 1962 – Rule 2BB amended.

Budget 2018 discontinued the benefit of transport allowance exemption of Rs. 1600/- per month. Accordingly, Rule 2BB is amended to remove this exemption.

Click to view the circular

Requirement for obtaining PAN card u/s 139A of IT Act, 1961 eased for corporate assesses

In case of a company, an application for incorporation, allotment of Permanent Account Number (PAN) and allotment of Tax Deduction and Collection Account Number (TAN) may be made through a Common Application Form submitted to the Ministry of Corporate Affairs (MCA). In these cases, the Certificate of Incorporation (COI) issued by MCA contains a mention of both PAN and TAN. Finance Act, 2018 amended section 139A of the Income-tax Act, 1961 and removed the requirement of issuing PAN in the form of a laminated card. Hence, it is clarified that PAN and TAN mentioned in the COI issued by MCA shall also be treated as sufficient proof of PAN and TAN for the said company assessee.

Click to view the circular

COMPANY LAW

Companies (Share Capital and Debentures) Amendment Rules, 2018

Ministry of Corporate Affairs (MCA) has amended Companies (share capital and debentures) Rule 2014 to provide that every certificate shall specify the shares to which it relates and the amount paid-up thereon and shall be signed by two directors or by a director and the company secretary, wherever the company has appointed company secretary.  Further, it provides that in case the company has a common seal it shall be affixed in the presence of persons required to sign the certificate.

Click to view the circular

RBI AND FEMA

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017

Reserve Bank of India released updated version of Regulations with respect of transfer or issue of shares between resident and persons resident outside India, incorporating all amendments  made after November 7, 2017  until April 6, 2018.

Click to view the circular

Liberalized Remittance Scheme (LRS) for Resident Individuals – daily reporting of transactions

Hitherto Authorized Dealers were monitoring annual caps on remittances made by resident individuals under LRS scheme based on self declaration given by remitters and without independent verification. Now in order to facilitate independent verification by Authorized dealers on such remittances it is now made mandatory that all remittances made by Authorized Dealers under LRS scheme should be uploaded by next working day to a common platform. Such data uploaded will be available to all authorized dealers making it possible for independent verification on remittances made by a resident individual. In case Authorized Dealers haven’t done any transactions during a day, they still need to furnish a Nil report.

Click to view the circular

GOODS AND SERVICES TAX

Setting up of an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal-reg.

The Central Board of Excise and Customs (CBEC) has notified the setting up of IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal vide Circular No. 39/13/2018 – GST.  The circular also covers the details of grievance redressal mechanism to take care of the issues faced by the assessee.

Click to view the circular

Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports

The Central Board of Excise and Customs (CBEC) has issued clarification regarding furnishing of Bond/Letter of Undertaking for exports vide Circular No. 40/14/2018 – GST.  The circular clarifies the following.

An LUT shall be deemed to be accepted as soon as an acknowledgement bearing the Application Reference Number (ARN), is generated online.

No need to submit physical documents to the jurisdictional office for acceptance of LUT

Click to view the circular

CUSTOMS

Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 31 /2018 - Customs (N.T.) notified the rate of exchange for conversion of the foreign currency into Indian currency or vice versa for Export and Import of goods, with effect from 6th of April 2018. 

Click to view the circular