As part of updating its registry Ministry of Corporate Affairs (MCA) has provided for filing of KYC by all directors on an Annual Basis.  MCA has notified Companies (Appointment and Qualification of Directors) Fourth Amendment Rules 2018 on July 5th 2018, which will come into effect from July 10th 2018. Form DIR-3 KYC has been notified for the purpose.

Below is the FAQ on this compliance :

Who is required to file DIR-3 KYC ?

Every person holding a DIN  on the last day of financial year is required to file a DIR-3 KYC. Even if a person is holding DIN and not  a director in any of the companies, he/ she is required to file DIR-3 KYC.

What is due date? What is extended due date for financial year ending March 31st 2018 ?

Due is date is April 30th of following financial year. For Financial year ending March 31st 2018, due date has been extended to August 31st 2018.

Consequence of not filing DIR-3 KYC? How to rectify non-compliance?

If the DIR-3 KYC is not filed within due date, DIN would be marked as deactivated, and no filing will be allowed with such DIN. To remove the defect DIR-3 KYC need to filed with late fee upon which DIN would activated.  Late fees has been prescribed at Rs 5,000/-

Who has to Certify Form DIR- 3 KYC ?

Form DIR 3 KYC need to be certified by DSC of Director  and DSC of Practicing Professional.

What are the KYC Documents :

i Photo in JPEG format.

ii. Proof of Identity- self attested :

  1. PAN Card Copy ( In case of Indian National)
  2. Passport copy ( In case of Foreign National)

iii. Proof of Residence – self certified – any of following

  1.   Aadhar card
  2. Passport
  3. Driving License
  4. Voters ID
  5. Electricity Bill
  6. Telephone bill

iv. Valid Person Email id and Mobile No. Same will be verified by OTP.


Filing your KYC could be hasslesome and time consuming. Mr. Anil D'Souza of ADCA, a higly qualified CA in Bangalore, can help you with that.

Due date for Filing Income Tax Return & Consequences of not filing IT Return within Due Date

The Income Tax Depart Act has prescribed various due dates for filing of Income Tax Return by a different class of assessees. Section 139 of Income Tax Act, 1961 provides for following different due dates for different class of assesses:

  1. 30th day of September of Assessment Year in the following cases
    1. Company – e Companies registered under Companies Act, includes body corporates registered under law of a foreign country.
    2. Person (other than company) whose accounts are required to be audited under this Act or under any law for the time being in force. For example, Societies required to get books of accounts audited under Societies Act, LLP required to get books audited under LLP Act etc. Section 44AB of Income Tax Act  prescribes that Books of an Assessee is required to be audited if turnover of business exceed Rs 1 Crore or Gross Receipts of Professional Exceed Rs 50 lakh, hence these cases are covered under this due date.
    3. a working partner of a firm whose accounts are required to audited. Remuneration of working partner of a firm is linked to profit declared by the firm, that is reason person tax filing due date for working partner is same as applicable to the firm.
  2. 30th Day of November of the Assessment year in case of Assessees who is required to get Transfer Pricing Audit done under Section 92E of Income Tax Act,1961
  3. 31st Day of July in case of Assessees who are neither companies nor otherwise required to get the books of accounts audited.

Belated filing of Income Tax Return  & consequence of not filing IT return within the due date :

Belated Filing :

If the return is not filed within due date same can still be filed within the end of Assessment year, i.e March 31st of the year following the financial year.  For example, if Return pertain to Financial year 2017-18, the assessment year is 2018-19, and if the return is not filed within due of July 31st or Sep 30th of 2018, belated return can still be submitted by March 31st 2019.

Consequences of not filing IT return within the due date :

1. Late fees of Rs 5,000 is applicable if the return is filed by December 31st of Assessment Year / Late fees of Rs 10,000 is applicable if return is filed after December 31st of Assessment Year. ( Late fee will be limited to Rs 1,000 for those with income up to Rs 5 lakh).

2. Carry forward of losses (other than loss under House Property) are not allowed unless return is filed within due date.

3. Interest under section 234A @ 1% per month becomes applicable on amount tax payable after the due date. This is in addition to interest @ 1%  per month under section 234B. So on any tax which is not paid within the due date for filing return, interest required to paid @ 2%  per month on taxes paid after due date. It is advisable to deposit tax before the due date, even if for some reason return can’t be filed before due date to avoid interest @ 2% per month.

Read More

1. All You Need To Know About Filing ITR With Or Without Form 16

2. A Tax Guide For A YouTube Vlogger

3. Cash Transaction Under Income Tax Law


Let ADCA (Excellent team of chartered accountants near HSR layout) do the ITR filing fo you to get the maximum benefits of tax saving.

Recently Few of them are shocked to see the outstanding Income taxt amount appearining at e-filing portal of income tax deportment.

Income Tax Departmrnt has updated the software to check regulary and clear ur outstanding income taxt amount.

Submit response to Outstanding Tax Demand process step by step:

Step 1: Login to www.incometaxindiaefiling.gov.in and check Refund/Demand status menu.

Step 2: If there is any outstanding tax demand, the “Response to Outstanding Tax Demand” will appear showing demand amount along with A.Y. for which demand exists.

Step 3: You can submit your response by selecting correct option. Option available is

  • Demand is correct
  • Demand is partially correct and
  • Disagree with demand.

Step 4: If you select demand is correct then you cannot disagree with the demand letter.

Step 5: If you select other options i.e. demand is partially correct or disagree with demand, you will have to provide reasons for exercising the option along with documentary evidence.

Step 6: Based on the reason selected, the assessee needs to provide additional information as below
Demand Paid:

  • BSR Code
  •  date of payment
  •  serial no
  •  Amount
  •  If challan doesn’t have serial no you will have to upload challan

Step 7: Demand already reduced by rectification/Revision/Appeal: Upload rectification order passed by AO and provide information on date of order, pending demand amount after rectification, etc.

Step 8: Rectification / Revised Return filed at CPC: If you have filed rectification for the demand amount, provide acknowledgement No of rectification application filed online. In case if you have filed revised return, you need to provide e-Filed acknowledgement No of the revised return.

Step 9: Rectification filed with AO: If you have filed rectification application manually to the jurisdictional assessing officer, provide date of filing application.

Once assessee submits the response, transaction id will get generated which can be viewed later.


Anil D'Souza & Associates are the Top chartered accountants firm in Bangalore, you can write a mail to  service@adca.in, required any CA service

Petitioner asks whether he and his wife are residents of Yonkers, as opposed to New York City, for purposes of paying personal income taxes, when the entire physical house in which they reside is located in Yonkers and the front yard is located in the Bronx. 

The following clarifications are given in this matter:-

(i) The purpose of this reform of making the change in tax regime is to encourage more private-sector employees to go for pension security after retirement instead of withdrawing the entire money from the Provident Fund Account.

(ii) Towards this objective, the Government has announced that Forty Percent(40%) of the total corpus withdrawn at the time of retirement will be tax-exempt both under-recognized Provident Fund and NPS.

(iii) It is expected that the employees of private companies will place the remaining 60% of the Corpus in Annuity, out of which they can get regular pension. When this 60% of the remaining Corpus is invested in Annuity, no tax is chargeable. So what it means is that the entire corpus will be tax free, if invested in an annuity.

(iv) The Government in this Budget has also made another change which says that when the person investing in Annuity dies and when the original Corpus goes in the hands of his heirs, then again there will be no tax.

(v) The idea behind this mechanism is to encourage people to invest in pension products rather than withdraw and use the entire Corpus after retirement.

(vi) The main category of people for whom EPF scheme was created are the members of EPFO who are within the statutory wage limit of Rs.15,000 per month. Out of around 3.7 crores contributing members of EPFO as on today, around 3 crore subscribers are in this category. For this category of people, there is not going to be any change in the new dispensation.

(vii) However, in EPFO, there are about 60 lakh contributing members who have accepted EPF voluntarily and they are highly – paid employees of private sector companies. For this category of people, amount at present can be withdrawn without any tax liability. We are changing this. What we are saying is that such employee can withdraw without tax liability provided he contributes 60% in annuity product so that pension security can be created for him according to his earning level. However, if he chooses not to put any amount in Annuity product the tax would not be charged on 40%.

(viii) There is no change in the existing tax treatment of Public Provident Fund (PPF).

(ix) Currently there is no monetary ceilings on the employer contribution under EPF with only ceiling being that it would be 12% of the salary of the employee member. Similarly, there is no monetary ceiling on the employer contribution under NPS, except that it would be 10% of salary.

(x) Now the Finance Bill 2016 provides that there would be monetary ceiling of Rs1.5 lakh on employer contribution considered with the ceiling of the 12% rate of employer contribution, whichever is less.

(xi) We have received representations today from various sections suggesting that if the amount of 60% of corpus is not invested in the annuity products, the tax should be levied only on accumulated returns on the corpus and not on the contributed amount. We have also received representations asking for not having any monetary limit on the employer contribution under EPF, because such a limit is not there in NPS. The Finance Minister would be considering all these suggestions and taking a view on it in due course.

To assist taxpayers CPC has established Customer care helpline, a limited call center service at ITD-CPC, Bangalore for queries related to ITR-V Receipt Status, Refund /Refund re-issue, Rectification, Income tax /PAN/TAN, e-Filing of returns, e-Filing Login, Form 26AS and Form 16

Taxpayer queries at CPC, Bangalore will be answered  between 8:00 AM to 8 PM. The service will be available in English, Hindi and Kannada.

Taxpayer can also Call ASK for their queries on toll free number 1800 180 1961.

Other Customer Care Helpline Number of CPC based on Type of Queries are as follows :-

Queries

Customer Care

ITR-V Receipt Status,

1800-425- 2229

080-22546500

Refund /Refund re-issue
Rectification
Notification & Processing

1800 425 2229 FREE

Income tax /PAN/TAN
General Queries

1800 180 1961 FREE

e-Filing of returns
e-Filing Login

1800 4250 0025 /

 

+91 80 2650 0025

PAN / TAN
PAN / TAN updation

+91 20 2721 8080

Form 26AS
Form 16

1800 103 0344 FREE

Public Law 114-113, Division Q (The Protecting Americans from Tax Hikes (PATH) Act of 2015), section 112 extends tax-free distributions from individual retirement plans for charitable purposes beginning  after December 31, 2014.  There is no special reporting of these distributions on Form 1099-R.

You may end up saving more in the months ahead with the Employees Provident Fund Organization getting ready to re-notify a new definition of compensation that will include all your allowances, amid intense lobbying against the move by industry bodies. At present, employers get away by contributing only 12% of the basic salary and dearness allowance, which is not paid by most companies, towards their share of matching PF and Employees Pension Scheme contribution.So, for several thousand employees, the basic salary remains constant, while increments are passed by way of enhanced or new allowances. In most cases, the tax liability for the employee goes up due to the salary hike and companies earn tax credits on salary-related expenses but the statutory PF contribution remains unchanged. EPFO notified the changes last year but had to withdraw the circular following protests by employers.

MORE MOOLAH

EPFOs proposed move may help in increasing savings Employers will now have to contribute for the PF on all allowances EPFO had to withdraw the notification last year after protests CII has written to the labor minister arguing that the plan should be deferred

Allowance Definition irks Industry

Industry is resisting the move to define compensation as all allowances, but the Employees Provident Fund Organization is expected to go ahead with the plan as a panel set up by the labor ministry to vet the proposal has endorsed it. Government officials countered the industry argument on the new definition, saying EPFO membership was mandatory only for employees earning Rs 6,500 a month. Anyone beyond that level could opt out. Although it may be difficult for several employers to give the opt-out option, reworking of the salary structure to ensure that the wage bill doesn't shoot up can be on the cards. The report is pending with the ministry but sources said the government will go ahead and notify the norms. Confederation of India Industry has dashed off a letter to labor Minister Mallikarjun Kharge arguing that the plan should be deferred.


Contact ADCA if you are looking for Provident fund and ESI registration in Bangalore.

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