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posted Nov 17, 2014, 4:02 AM by Nikunj Shah

Note- These are personal view points discovered and developed by C.A.NIKUNJ SHAH-CHARTERED ACCOUNTANT.( these are just in a very short summary-)
 
 
 
= The audit report has to be uploaded in XML format,ie- form 3CA for companies and 3CB for assesses other than companies(partnership firms, individuals,etc),
with the help of digital signature of Chartered Accountant. Also, the soft copy of balance sheet and profit and loss account is to be uploaded along with it.
 This applies only to tax audit cases,(turonver more than 1 crore),  not to statutory audit cases.
=
PAN CARD is now compulsory for every individual to enter into any transacion in India, or else tax will be deducted @ 20%, or rates in Finance ACT which is more.
 
=One man company is now likely to come as per the new provisions of the COMPANIES ACT 2013.
 
= A Private Limited Company can make a private placement of equity shares only subject to a monetory restriction of Rs 20,000/- per person, totalling to 200 members in total.
(The shareholding of promoters, directors are excluded.) The total amount of equity share capital that can be raised by Private Limited company by way of Private placement=
Rs 20,000 per member*200 members = Rs 40 lakhs. But there is no monetory restriction as regards the share premium.
 
=A closely held Public Limited Company ( Unlisted PUBLIC LIMITED COMPANY) can make a preferential allotment of equity shares of any amount-, subject to a maximum of just 49 members.
 
= USDOLLARS 1 MILLION is freely allowed for repatriation abroad, from NRO OR NRE ACCOUNTS. Interest on deposits in NRE account is exempt from tax U/S 10.
 
=If you create a PART IX Company, and if the said part IX company acquires a running business of a partnership firm or an exisitng company,
then there will be no stamp duty on acquisition of capitlal asset , as there is no conveyance.
 
=For deducting tax-TDS u/s 195, tax shall be deducted at rates prevailing under the Finance act or DTAA rates which is beneficial to non resident payee.
The word used is "ANY SUM PAYABLE" to a non resident- -it means tds must be deducted on capital expenditure, or revenue expenditure. The DTAA rates have an overriding effect over the rates prevailing
under the Finance Act. Even "Foreign Companies " are covered as payees, whiled deducting TDS u/s 195.
 
=in case if a non resident receives money from inheritance, by way of shares, gift, cash, property, etc, and if he wants the money back abroad, then he can route the amount by-
opening a Private discretionary trust. appointing a settlor and executor of the trust,-transfer the amount from indian curent account to NRO account, file tax returns in India, pay taxes,
and then transfer it to NRE account, subject to15CA CB certificate of C.A., and then repatriate the money abroad, under a liberalised scheme of 1 million dollars.
 
=Domestic transactions are also subject to transfer pricing. ,ie resorted to Alms Length Price.
 
 
=FOREIGN DIRECT INVESTMENT by Non resident Indian is prohibited in retail housing sector. ,(ie activity of buying selling residential houses, shops etc,) unless there is a development of infrastructural projects and townships.
 
= The charging section 22, under the head "Income from House property " , charges to the levy of tax of any house property- land or building appurtanent thereto, which is owned by the
assessee only for the purpose of his residence. The only exception is that the property should not be used for business of the assessee, then the income will be taxable under "Business Income or Incomefrom other Sources.".
 
=If any capital asset, forming part of the Block of asset , on which depreciation is allowed is sold during the year, then the provisions of  short term capital gain U/S 50. gets trigerred,-
 only when the block ceases to exist as on the last date of 31st March of the accouning year.
 But if the block of assets continues to exist as on the close of the year, then there will be no capital gains.
 
=Section 56 has been amended. -When any property/ flat or any capital asset is purchased for a considetation less than the Stamp duty  value, then the purchaser of the capital asset shall be chargable to tax u/s 56
for the diference of the sale value paid and the stamp duty valuation of the capital asset as on the date of the transfer. This is the reverse case ,where instead of taxing the seller, the purchaser is taxed under the
head "Income from other sources" u/s 56. Subsequently, when the purchaser sells the capital asset, then he will be subjected to capital gains,  by taking  the stamp duty valuation as on the date of original transfer, as the cost of acquisition which will be reduced from the sales value.
 
 -The Income tax assessments are  being reshuffeled and the AO are allotted cases alphabet wise of the names ot the assessees. Aiyekar ampark kendra has started in each Income tax department.
 
=The credit for TDS will be allowed only in that year in which the tds deducted is actually paid by the deuctor wihin the time limit U/S 200. -irrespective of the method of accounting adopted by the payee-cash or merchantile. The said TDS should be reflected in 26AS statement of the relevant financial year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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