Articles

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Friends, just as the baby caterpillar sheds its cocoon and metamorphose itself into a beautiful butterfly, the faceless assessment scheme, which was introduced as a pilot scheme for just 58,000 odd assessment cases in October, 2019, has now blossomed itself into its ‘PAN India Avatar’, with its full-scale implementation across the Country, covering almost the entire gamut of assessments and reassessments, barring just search and international taxation cases.

However, five years down the line, in the run up to the Union Budget 2024-25, speculations and rumours were rife that the Indian Tax Administration is considering introducing a hybrid mode of assessments, wherein the assessees will be given an option to choose from the faceless mode or the conventional manual m.

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Friends, we all are familiar with the famous words, "At the stroke of the midnight hour, when the world sleeps, India will awake to life and freedom" of the speech 'Tryst with Destiny' made by our first Prime Minister Pandit Jawaharlal Nehru, to the Indian Constituent Assembly, in the Parliament House, on the eve of India's Independence, towards midnight on 14th August 1947.

However, not many of us know, that guided by the auspicious astrological considerations of such a historic and significant event, this speech had to be completed exactly at 12 AM on the midnight of 14th August 1947, so that the holy Shankha be blown to herald the birth of a new nation at the stroke of midnight hour. The astrologers had strictly advised against any de.

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Elephant in the Room Syndrome: Large Pendency of Appeals before CIT(Appeals)

Friends, in a very recent judgement dated October 15, 2024, in the case of ‘Om Vision Infraspace Pvt Ltd vs. ITO’, in R/Special Application Nos. 6953 of 2020, 16617 of 2023 and 2692/6725/14309 of 2024, the hon’ble Gujarat High Court has highlighted the syndrome of a very big elephant roaming in the room, in the form of a grave and serious problem of pendency of around 5.80 lakhs appeals for disposal, before the CIT (Appeals), with majority of the pendency before the faceless hierarchy.

Pendency of Appeals before CIT(Appeals) as on 26.09.2024

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"A legal fiction may even say that a man shall be deemed to be a woman or a woman shall be deemed to be a man.”

Well Friends, frankly speaking, it was not until the judgements being pronounced by the hon’ble Supreme Court in the cases of ‘Asish Agarwal’ [2022] 138 taxmann.com 64 and ‘Rajeev Bansal’ [2024] 167 taxmann.com 70 (SC),  that I realised the true purport, significance and the weighty force of the concept of ‘Legal Fiction’, being so aptly summarised in the above words, by the hon’ble Justice D.S Tewatia in the case of ‘CIT v. Swaroop Krishan’ [1985] 21 Taxman 404 (Punj. & Har.).

Magic of ‘Legal F.

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Amongst the total 85 proposed Budget amendments in the Finance (No.2) Bill, 2024, the amendment in respect of the taxability of long-term capital gains (LTCG) income arising on sale of an immovable property (land and building), w.e.f. 23.7.2024 and onwards, has caught the attention and interest of everyone. In this piece I have tried to decode all the nuances of this critical budget amendment with practical calculations.

Proposed Amendment in the Finance (No. 2) Bill, 2024

The Finance (No.2) Bill, 2024, proposes to reduce the tax rate on long-term capital gains arising on sale of immovable property (land and building) from 20% to 12.5%, w.e.f. 23.7.2024. However, at the same time, the existing indexation benefit available under second proviso to sect.

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The much-awaited Union Budget 2024-25 has been presented by our hon’ble Finance Minister Smt. Nirmala Sitharaman today on 23rd July 2024, before the Parliament. The budget speech of FM highlighted some very welcome budget amendments in the direct tax domain. However, the Fine Print of the Finance (No.2) Bill, 2024, revealed some additional very significant and critical budget amendments in the direct tax domain, which are being analysed and explained below, for ready reference of Readers.

1. Amendments pertaining to Capital Gains

a. Section 2(42A) of the Act is proposed to be amended to provide that for all listed securities, the holding period to qualify as long-term capital gain, will be 12 months and for all other assets, it shall be 24 mont.

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Introduction: The much awaited Union Budget 2024-25 has been presented by our hon’ble Finance Minister Smt. Nirmala Sitharaman today on 23rd July 2024, before the Parliament. The budget speech of FM highlighted some very welcome budget amendments in the direct tax domain. The new personal tax regime has been further made sweeter. The tax slab rates have been proposed to be reduced in the new personal tax regime. The standard deduction in case of salaried class has been proposed to be increased from Rs. 50,000 to Rs. 75,000/-. The deduction available under section 80CCD(2)(b) in respect of private sector employer’s contribution to National Pension Scheme (NPS) has been proposed to be increased from the present 10% of salary to 14% of the salary of the concern.

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Our hon’ble FM Smt. Nirmala Sitharaman has given all of us a reason to smile, in her budget speech presentation of the Union Budget 2023, when she announced, “Currently, those with income up to Rs.5 lakh do not pay any income tax in both old and new tax regimes. I propose to increase the rebate limit to Rs.7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to Rs.7 lakh will not have to pay any tax.”

The Explanatory Memorandum to the Finance Bill 2023 provided as under:

“IV. Rebate under section 87A

Under the provisions of section 87A of the Act, an assessee, being an individual resident in India, having a total income not exceeding Rs 5 lakh, is p.

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Friends, the much-awaited Union Budget 2024-25 (full) is slated to be presented in the Parliament by our hon’ble FM Smt. Nirmala Sitharaman on July 23rd, 2024. This Budget presentation will distinguish her as the first Finance Minister of India to deliver seven consecutive Union Budgets, surpassing Shri Morarji Desai’s previous record of six budgets.

This special occasion demands a special pre-budget wishlist, instead of the routine ones. So, in this piece, I have penned down my poetic pre-budget wishlist, in the form of a few poetic verses, highlighting some much-needed relaxations and incentives and a few critical and relevant grey areas and gaps currently being experienced by all of us in the direct tax domain, and which require timely .

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“What’s in a Name?”, said Shakespeare,

What a Name with a Prefix ‘CA’ means, just ask a CA Aspirant's Tear.

 

With Integrity, Credibility & Authenticity as the New Norms,

The profession of Chartered Accountancy was Born.

 

Sacrifice, Commitment & Untiring Toiling is the Ask,

Becoming a CA is a Herculean Task.

 

Technology gives the profession of CA an Amazing Facelift,

Traditional CA Practise undergoes a Paradigm Shift.

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Introduction: Friends, I have always felt that, “General anti-abuse measures are good as long as they don’t become specific tools for abuse themselves.”

With the advent of ‘General Anti Avoidance Rules’ (GAAR), in the Indian Income Tax Act, with the incorporation of a new Chapter X-A containing sections 95-102, w.e.f. AY 2018-19, it seems that the thin dividing line between the "legitimate tax planning" and the "illegitimate tax evasion", has gotten blurred and shrunk even further. Infact, looking at the language of these sections, one would really wonder, if legitimate tax planning, even within the four corners of Law, as upheld by the hon’ble Supreme Courts in UK and India in .

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Introduction: The recent judgement passed by the hon’ble Karnataka High Court on 25.4.2024, in the batch of 23 petitions (including some big names of Toyota group of companies) with lead case being the ‘Stone Hill Education Foundation and the Union of India’, in W.P. No. 18486/2012, holding the coverage of the ‘international workers’, within the ambit of the EPFO Act, without any wage ceiling limit, as unconstitutional and arbitrary, has caught the interest and attention of many quarters.

Before we delve further into the intricacies and finer aspects of this popular judgement of the hon’ble Karnataka High Court and more importantly the missing piece of the EPFO’s ‘Reciprocity’ plea before t.

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Introduction: Seeding and nurturing a business with one’s entrepreneurial acumen, skills, hard work, perseverance and capital to grow it into a big fruit-bearing tree with branches spread-out, is the hallmark of a successful businessman. But equally important is ensuring that the said tree (business) continues to grow and bear fruits for the future generations to come, without there being any feuds and disputes among the different branches. A ‘Family Arrangement’ is an important and quintessential instrument, which if effectively executed, can turn out to be a gamechanger in avoiding family feuds and also in saving substantial taxes.

Meaning of Family Arrangement:

The hon’ble Supreme Court in the decision of <.

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Weekends usually bring a little respite from the otherwise hectic working schedules. But, when one’s mobile and email inbox starts pinging messages and email alerts from the income tax department, in such otherwise relaxing weekend, then it definitely becomes a bit of a concern and a spoiler.

In the weekend gone by, many people have received messages and emails from the I-T department, intimating them about some artificial intelligence (AI) identified mismatches in their interest and dividend incomes declared in their I-T returns for financial years 2021-22 and 2022-23, vis-à-vis, those reported in annual information system (AIS) by the banks and companies.

In order to reconcile the mismatch, an on-screen functionality has been made available in the Comp.

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Friends, much has already been spoken and written about the Electoral Bonds Unconstitutionality verdict of the hon’ble Supreme Court in the case of “Association for Democratic Reforms and Anr. v. Union of India & Ors. in Writ Petition (C) No. 880 of 2017 (hereinafter referred to as the ADR judgement).

In this landmark judgement the hon’ble Apex Court has held that:

(i) the Electoral Bond Scheme 2018, the proviso to Section 29C(1) of the Representation of the People Act 1951 (as amended by Section 137 of Finance Act 2017), Section 182(3) of the Companies Act (as amended by Section 154 of the Finance Act 2017), and Section 13A(b) of the Income Tax Act (as amended by Section 11 of Finance Act 2017) are violative of Article 19(1)(a) and unconstituti.

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Backdrop: The Electoral Bond Scheme, 2018 was notified on January 2, 2018 by the Department of Economic Affairs, Ministry of Finance, and it enabled the Indian companies and any other persons including individuals to make contributions to any registered political party in India by way of an electoral bond, without any monetary threshold. Electoral bond was a bond issued in the nature of promissory note which is a bearer banking instrument and did not carry the name of the buyer. The bonds were issued in denominations of Rs 1000, 10,000, 1,00,000, 10,00,000 and 1,00,00,000. A political party, to be eligible to receive an electoral bond, has to be registered under Section 29A of the Representation of The People Act, 1951 and ought to have secured not less than one per cen.

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Introduction: Recalling the historic feat of his company Infosys, becoming the first Indian company to get listed on Nasdaq USA Stock Exchange in 1999, the Infosys cofounder Shri Narayan Murti has remarked, "It was a small step for Nasdaq, but a giant LEAP for Indian IT (industry)”. Back then in 1999, Infosys has to take the more tedious and stringent route of the American Depository Receipts (ADRs), for Nasdaq listing, as there was no regulatory framework for Direct Listing ecosystem in India.

Another interesting anecdote pertains to the Vedanta Chairman, Shri Anil Aggarwal. He has once shared that he had to cycle for hundred kilometers with his foreign investors, to Oxford, to enable finances for his company Vedanta, to become the.

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Friends, as the final countdown to the Interim Union Budget 2024-25 begins, so does the customary ritual of penning down pre-budget wish lists. But for me, this writing exercise is not merely a customary ritual but instead an opportunity to highlight some critical and relevant grey areas and gaps currently being experienced by all of us in the direct tax domain, and which require timely redressal by the Legislature in the upcoming Interim Union Budget 2024.

Based on my practical experience, the 15 basic yet critical issues are being discussed below, and I sincerely hope that all of you will relate to these real and ground-level problematic areas.

1. Resolve of the DIN Controversy by Re-insertion of Section 282B in the Income Tax Act 

W.

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Friends, the Year 2023 will be remembered for some of the landmark judgements passed by the hon’ble Supreme Court in Tax Laws. As we bid adieu to the Year 2023, and Welcome the New Year 2024, I take pleasure in sharing my Poetic Tribute to the Landmark Judgements passed by Hon’ble Supreme Court in the Year 2023, capturing all the important ratio decidendi in these judgements in a poetic manner. Hope You will find it enjoyable and useful. The pdf file of this Poetic Tribute is also enclosed below in the PDF File section.

Landmark SC Judgements in 2023- A Poetic Tribute

As Year 2023 is Passing-by,

Let us Recapitulate some landmark SC Judgements over ‘Chai’.

 

In one of its.

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Friends as we bid adieu to the Year 2023 and welcome the New Year 2024 with new excitement, aspirations and hopes, Team TaxAaram takes pleasure in presenting to You an Yearly Wrap of its critically acclaimed Tax Write-ups practically addressing almost every new amendment, update and development in the Direct Tax domain in the Year 2023. Wishing You All a very Blissful, Joyful and Tax Worry Free (with TaxAaram) Happy New Year 2024!!

1. Time to make AI generated Income Tax Notices more intelligent and correct naturally

https://www.taxaaram.com/articles/ai-based-1431-intimation-order-of-12284-cr-addition-time-to-ma.

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The Apex Body of the Income Tax department viz. the CBDT in its very recent Press Release dated 5.9.2023, has highlighted the commitment of the Income Tax Department to process the Income Tax Returns (ITRs) in a speedy and efficient manner and has informed that as of now more than 6 crore ITRs of AY 2023-24 have been processed resulting in processing of over 88% of the verified ITRs. The Press Release has also remarked that more than 2.45 crore refunds for AY 2023-24 have already been issued. The Press Release further stated that in line with the Department’s efforts to provide seamless and expeditious taxpayer services, average processing time of ITRs (after verification) has been reduced to 10 days for returns filed for AY 2023-24 compared to 82 days for AY 2019-20 and 16 days f.

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The 18th G20 Summit convened under India’s Presidency for the first time, with the underlying theme of ‘Vasudhaiva Kutumbakam’, has accomplished the major breakthrough on 9.9.2023, with the adoption of the G20 New Delhi Leaders’ Declaration. This Joint Declaration has been adopted after reaching the mutual consensus on several important agenda items like the Digital Public Infrastructure, Gender Equality and Women Empowerment, Countering Terrorism and Money Laundering, Green Development Pact and Financial Sector Reforms for strong, sustainable, balanced and inclusive growth. The agreements on the inclusion of the African Union in the G20 group and thereby making it the G21, the Global Bio Fuel Al.

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The ‘Search’ action is considered as one of the extreme measures of tax administration and its legislative mandate is given in section 132 of the Income Tax Act. If the competent income-tax authority, in consequence of any information in its possession, has reason to believe that any person is having any undisclosed income in the form of any unaccounted money, bullion, jewellery, or other similar valuable article or thing, or any accommodation entry in the books of accounts, then the authority has the power to issue an income-tax search warrant against such person, and enter and search such person’s business or residential premises. During search, the Income-tax officials even have the power to break open the lock of any door, locker, safe, vault, almirah, or any simil.

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“History repeats itself, first as tragedy, second as farce.”- Karl Marx

Friends, a year ago, the CBDT Instruction No. 1 of 2022, issued on 11.5.022, pursuant to the hon’ble Supreme Court judgement, in the leading case of ‘Union of India vs. Ashish Agarwal’ [TS-339-SC-2022], had invented an altogether new, innovative and revolutionary concept of ‘time-travel’ in the Income Tax Act, by visualising a scenario, wherein the otherwise time barred reassessment notices, under the old reassessment regime provisions, issued on or after 1.4.2021, were deemed to have the super power of travelling back in time to their original time barring limitation issuance dates, so as to provide them a new lease of life.

A year after.

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The Finance Act 2023 has ended the ‘tax-holiday’ glory of the maturity proceeds of high-ended life insurance policies/endowment plans, requiring payment of annual premium in excess of Rs 5 lacs. The section 10(10D) of the Income Tax Act has been amended to provide that the maturity proceeds received under a life insurance policy, (other than ULIPs), issued on or after 1.4.2023, shall not be exempt, if the premium payable in any year, during the term of such policy, exceeds Rs 5 lakhs.

The amended section also stipulates that if the policy holder holds and pays premium in respect of multiple life insurance policies, issued on or after 1.4.2023, the exemption from income tax in respect of the maturity proceeds shall be available only in respect of such policies where.

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With none other than the Prime Minister of our Country, Shri Narendra Modi ji, making a strong pitch for the enforcement of the Uniform Civil Code (UCC), the UCC debate is naturally going to gain traction and momentum in near times. The Government is considering tabling the UCC Bill in the upcoming monsoon session of the Parliament.

Currently, various significant facets of one’s life like the succession, inheritance, marriage, divorce, alimony, adoption etc. are governed by the respective Personal Laws and religion of the citizens of our Country.

The UCC aims to bring and enforce a uniform legal framework or code in respect of all such facets, for all Indian citizens, irrespective of their religion or governing Personal Laws. UCC is part of Part IV of the Const.

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Friends, in the present tech-savvy times, we all may be fascinated about the new modern techniques of accounting, auditing and taxation like the cloud computing, forensic auditing, digital taxation, artificial intelligence etc. but not many of us may be aware about our robust, glorious and meticulous origins of the accounting, auditing and tax administration systems prevalent in our ancient India, which infact were characterised by their natural and original intelligence and learning contrary to the modern-day times of artificial intelligence and machine learning.

Today, on July 1, 2023, as we are celebrating the 75th Chartered Accountant’s (CA) Day, to commemorate the glorious founding of the Institute of Chartered Accountants of India.

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The Ministry of Finance has issued Circular No. 10 of 2023 dated 30.6.2023, vide F. No. 370142/23/2023-TPL, to remove difficulty in implementation of changes relating to Tax Collected at Source (TCS) on Liberalised (LRS) Remittances and on purchase of Overseas Tour Package.

The said Circular contains Eight FAQs addressing all practical nuances of the practical implementation of the amended TCS provisions in respect of LRS Remittances and Overseas Tour Packages.

Team TaxAaram takes pride in sharing that all the 8 FAQS are in complete allignment with the insights and inputs shared by our Founder Director Shri Mayank Mohanka, FCA on various knowledge platforms like FEDAI, Mint, Money Control, Outlook India, Taxmann & T.

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Executive Summary: The Ministry of Finance has issued a Press Release on 28.6.2023 at 9:09 pm and has defered the applicability of increased TCS rate of 20% from the existing 5% on LRS Remittances and Overseas Tour Packages from 1.7.2023 to 1.10.2023 .

Further the earlier threshold exemption limit of Rs 7 lakhs per individual, per annum, for TCS on all categories of LRS payments, through all modes of payment, regardless of the purpose, has been restored.

Thus, for first Rs 7 Lakh remittance under LRS there shall be no TCS. Beyond this Rs 7 Lakh threshold, TCS shall be:

a) 0.5% (if remittance for education is financed by education loan);

b) 5% (in .

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Friends, it is that time of the Year, when summer vacations of the children have commenced, and travelling bags are being packed to make that much awaited vacation trip to your dream destination. If your dream destination happens to be outside India, then this Taxalogue is definitely for You. The tax professionals thinking of making business trips to Dubai, following the introduction of the UAE Corporate Tax w.e.f. 1.6.2023, will also find this article useful. So, lets begin our tax empowerment ride to make your overseas ride more cost economical.

Legislative Framework for TCS on Foreign Remittances

The Finance Act 2020 has inserted a new sub-section (1G) in section 206C of the Income Tax Act, stipulating the collection of Tax Collected at Source (TC.

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Executive Summary: Friends, in this Article, our Founder Director, Shri Mayank Mohanka, FCA, has made a humble and sincere attempt to analyse and explain the practical tax implications of cash deposits in Rs. 2000 denomination notes in the banks, following the RBI’s 19th May’s announcement of withdrawal of such notes from circulation, in the context of sections 68, 69A read with section 115BBE of the Income Tax Act.

It was 19th May, 2023, and the countrymen were still trying to understand the practical implications of the new TCS Rules on remittances done under Liberalised Remittance Scheme (LRS) and overseas tour packages, including the foreign spends made via international debit and credit cards.

The RBI made two big an.

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CBDT has issued Circular No. 6 dated 24.05.2023 providing some big reliefs to Charitable and Religious Trusts. These are being explained in a quick, and an easy to understand manner below:

1.The due date for furnishing the application in Form 10A by the charitable or religious trusts and institutions for re-registration/approval has been extended from 25.11.2022 to 30.09.2023. [So a very big relief from addition u/s 115TD to the extent of accumulated networth of trust].

2.The due date for furnishing application for regular registration/approval by provisionally registered/approved trusts or institutions in Form 10AB has also been extended from 30.09.2022 to 30.09.2023 for registration under section 10(23C) and 12AB of the Income-tax Act, 19.

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Friends, the Financial Year 2022-23 is coming to an end. Let's Wrap it up in a Poetic manner by sharing the exclusive Poetic side of our Founder Shri Mayank Mohanka, FCA. It is often said that a ‘Poem’ conveys your thoughts in lesser words but with a greater impact. So, here's presenting the Poetic Fun Ride of some of his exquisite and unique Poems on,,,,, No not on Romance or Love but on Tax Laws.

These Poems will Make You Fall in Love with the otherwise Boring and Unromantic Tax Laws....

1. Poetic Tribute to Landmark Judgements of Hon’ble Supreme Court in the Year 2022-23

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Understanding Important Amendments in the Finance Bill 2023 As Passed by Lok Sabha & Rajya Sabha

With the second leg of the Budget Session getting affected by disruptions, the Finance Bill 2023 has been passed in the Lok Sabha on 24.3.2023, through the ‘Guillotine’ method under which all the Bills, grants and funds are passed by the Government without any debate. It has been passed in Rajya Sabha also on 27.3.2023, with a Voice Vote. Now it will be sent for the Presidential Assent to become an Act.

Among the total 64 amendments made in the Finance Bill 2023, let us understand some of the important amendments, which stand out on account of their wide scale ramifications. 

New Rules for Taxation of Debt Mutual Fun.

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Executive Summary: This Article authored by our Founder Shri Mayank Mohanka, FCA, contains an indepth Break-Even Point Analysis, working out the exact amount of Deductions which are needed to be claimed in the Old Regime, at different levels of Incomes, to Break Even with the Reduced Tax liability in the New Regime, in the case of Salaried Class, Professionals & Businessmen, Rental Income Earners, Dividend/Interest Earners. This Article also contains Practical Case Studies on making an Optimum Choice between the Old and the New Personal Tax Regime, both by the Salaried Class as well as by the Professionals.

"Among the total 122 tax laws amendments proposed in the Union Budget 2023, five budget announcements in respect of Personal Taxation ha.

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Executive Summary: This Article authored by Shri Mayank Mohanka, FCA, is a Ready Refrencer on Making an Informed Choice between the Old and the New Personal Tax Regime and decodes the exact amounts of Deductions which are required to be claimed in the Old Personal Tax Regime to Break Even with the Reduced Tax Liability in the New Personal Tax Regime. The Income Tax Department has launched a Tax Calculator for the Taxpayers in order to assist them in choosing wisely between the Old and the New Personal Tax Regime. The link for the same has been given in this Article, for ready reference and accessibility of our Readers.

With a view to rationalize the personal tax slabs and simplify the complex maze of plethora of deduction claims of indivi.

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The GST Council Members met for the 49th time since the formation of the GST Council and for the first time after the presentation of the Union Budget 2023 in Parliament, on 18.2.2023.

The significant Recommendations of this 49th GST Council Meeting, having some direct bearing on Trade, Business & Commerce sectors are being analysed for ready reference of our Readers below:  

1. Extension of time limit for application for revocation of cancellation of registration and one time amnesty for past cases: The Council has recommended amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that:

  • the time limit for making an application for revocation of cancellation of registration be increased fr.

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With a view to make the new personal tax regime u/s 115BAC more attractive and to encourage more and more individuals to switch to the new regime, in order to reduce the perceived complexities in return filing and assessments arising out of the plethora of deduction claims of the taxpayers, applicable in the old regime, the Union Budget 2023 has increased the available limit of rebate u/s 87A, from existing Rs. 5 lakhs to Rs. 7 lakhs in the new personal tax regime, w.e.f. financial year 2023-24 and onwards.

It needs to be understood here that the above relief is in the form of a tax rebate u/s 87A only and not by way of an increase in the basic exemption limit in the personal tax slabs. The relief in the form of increase in the basic exemption limit in the personal tax slabs i.

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The Finance Bill 2023 proposes in total, 122 Budget amendments, in the Income Tax Act, 1961. Among these 122 budget amendments, one of the significant and critical, yet lesser highlighted and talked about amendment is regarding the substitution of the existing sub-section (2A) in section 142 of the Income Tax Act, with a new sub-section, and thereby inserting the enabling provision, pertaining to the inventory valuation, required at the behest of assessing authority, during the course of regular assessment proceedings, commencing from AY 2022-23 (FY 2021-22) and subsequent assessment years.

The existing sub section (2A) in section 142 contains the enabling provision only in respect of the Special Audit to be done at the behest of AO.

Proposed Amendment in the.

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With a view to rationalize the personal tax slabs and simplify the complex maze of plethora of deduction claims of individuals and HUFs in their income tax returns, the Government has introduced a new regime of personal tax, by introducing a new section 115BAC w.e.f. FY 2020-21 and onwards.

However, the compulsory requirement of foregoing of so many otherwise available deductions like standard deduction, 80C investments in LIC, PF, FDs, home loan Repayment, interest on home loan, 80D Mediclaim, HRA etc., has made this new regime very less popular and with few takers only.

The Govt. wants more and more individual taxpayers to switch to the new regime, to reduce the complexities in return filing and assessments arising out of the plethora of deduction claims of the tax.

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Yes, it was the Budget 2023 Day Eve. Two close friends, ‘Dhani Ram’ and Buni Ram’ went out for their usual stroll, in late evening.

Dhani Ram – “Yaar Buni, you seem to be very happy today. What’s the good news?”

Buni Ram – “Yes Dhani, I am happy because I have heard that in today’s Budget 2023, the Govt. has increased the income tax exemption limit to Rs 7 lakhs, so I will not have to pay any income tax now, I think.”

Their Common Friend ‘Gyani Ram’ who was listening to their talks joined their stroll and said, “Well my Friend, you are right to a certain extent, but let me further clarify.”

Buni Ram- “Oh Gyani, Thank God, you are here. We couldn’t.

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This Article authored by our Founder Shri Mayank Mohanka, FCA, analyses and decodes two significant Budget 2023 amendments pertaining to the Capital Markets namely, (i) New Taxation Scheme of Market Linked Debentures (MLDs) and (ii) TDS on Interest Income on Listed Debt Securities.

"Friends, Debentures or Bonds, as we all know, are fixed interest-bearing debt instruments, and usually invested in by those, who want risk-free fixed income streams on their investment portfolios, irrespective of the movement of capital market indices.

However, what if an investor wants to satiate his/her risk-free appetite of investing in a debt security but with a return linked to the market.

Well Yes, for such an investor, the Market Linked Debenture or .

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The Union Budget 2023, coined as the First Budget in Amrit Kaal, containing the Blue-Print of India @ 100, has been laid out in the Parliament by our hon’ble FM Smt. Nirmala Sitharaman, today on 1.2.2023.

In the Personal Taxation domain, with a view to accomplish the objective of making the new personal taxation regime u/s 115BAC of the Income Tax Act, more popular among masses, a slew of amendments has been proposed in the Finance Bill 2023, presented by our hon’ble FM today, on 1.2.2023.

The compulsory requirement of foregoing of the plethora of otherwise available specified deductions by the individuals and HUFs opting for the new personal taxation regime u/s 115BAC of reduced personal tax slabs, introduced by the Finance Act 2020, has somewhat, made t.

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Our hon’ble FM Smt. Nirmala Sitharaman ji has presented the Union Budget 2023-24 including the Finance Bill 2023-24, for the FY 2023-24, before the Parliament on 1.2.2023.

The Key Highlights of the Budget 2023 Amendments pertaining to Direct Tax Domain are discussed below for ready reference of our Readers:

1. The rebate limit u/s 87A has been increased from Rs. 5 lakhs to Rs. 7 lakhs in New Personal Tax Regime u/s 115BAC.

2. The Basic Exemption Limit has been increased from Rs. 2.5 lakhs to Rs. 3 lakhs in New Personal Tax Regime u/s 115BAC. The new slab rates in New Personal Tax Regime are as under:

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Friends, as the final countdown to the Union Budget 2023 begins, without resorting to some abstract or wishful thinking, our Founder Shri Mayank Mohanka, FCA, has done a practical and ground level assessment of some critical grey areas and gaps in the direct tax domain, which require timely redressal by the Legislature in the upcoming Union Budget 2023. These are being discussed below, and we sincerely hope that you will relate to these real and ground-level problematic areas.

1. Allowing Deductions in respect of Standard Deduction & Interest on Home Loan in New Personal Taxation Regime in Section 115BAC

Currently, the individuals & HUFs opting for the new personal taxation regime u/s 115BAC of reduced personal tax .

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This unique Poem authored by our Founder Shri Mayank Mohanka, FCA, beautifully captures the aspirations and expectations of the common man, middle class, salaried class and businesses, from the upcoming Union Budget 2023. Just Read it to feel and cherish this poetic marvel, resonating so realistically, your own Budget aspirations and expectations.  

‘आम नागरिक की बजट अभिलाषा’

[मयंक मोहंका की कलम से]

आम बजट २०२३ लेकर के आए, खुशाली और प्रगति की नई आशा।

इस कविता के माध्यम से प्.

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Friends, as I pen down this Taxalogue, the Festival of Harvest ‘Makar Sankranti’ is being celebrated all over India, with great vigour, vibrancy and delight, and the Union Budget 2023 is also being awaited with equal zeal and enthusiasm.

I can’t help myself in drawing an analogy in as much as that just as the agriculturists have harvested and celebrated the previous year’s crops and are now planning enthusiastically for the next year, similarly, our law makers have reaped the fruits of the Union Budget 2022, with both the direct and indirect tax collections reaching all times highs, and are now brainstorming meticulously on the Union Budget 2023 proposals.

Well, some brainstorming has also been done by me, and I have also prepared my ‘Bu.

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Friends, the Year 2022 will be remembered for some of the landmark, unprecedented and peculiar judgements passed by the hon’ble Supreme Court in Tax Laws.

As we bid adieu to the Year 2022, and Welcome the New Year 2023, Team TaxAaram takes pleasure in sharing the Poetic Tribute to the Landmark Judgements passed by Hon’ble Supreme Court in the Year 2022, by our Founder Director Shri Mayank Mohanka, FCA, capturing all the important ratio decidendi in these judgements in a poetic manner.

Landmark SC Judgements in 2022- A Poetic Tribute

As Year 2022 is Passing-by,

Let us Recapitulate some landmark SC Judgements over ‘Chai’.

In one of its kind c.

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Friends, as we bid adieu to the Year 2022 and welcome the New Year 2023 with new energy, zeal and enthusiasm, Team TaxAaram brings to You a Flashback of its Top 20 critically acclaimed Articles on practically useful, insightful and crucial topics in the Tax Laws, curated and compiled together with acute precision as under:  

1. Changing Indian Tax Residency Dynamics in light of UAE’s New Corporate Tax Law

https://www.taxaaram.com/articles/changing-indian-tax-residency-dynamics-in-light-of-uaes-new-corporate-tax-law193

2. RBI Digital Currency- A Tax Perspective

Read more

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Overview of UAE New Corporate Tax Law:

The much awaited and talked about UAE Corporate Tax Law has finally been legislated by the United Arab Emirates (UAE), on 09 December 2022, vide Federal Decree-Law No. (47) of 2022, on the Taxation of Corporations and Businesses in UAE.

The UAE Corporate Tax Law provides the legislative basis for the introduction and implementation of a Federal Corporate Tax (“CT”) in the UAE and is effective for financial years starting on or after 1 June 2023.

UAE Corporate Tax will be levied at a headline rate of 9% on Taxable Business Income exceeding AED 375,000. Taxable Income below this threshold will be subject to a 0% rate of Corporate Tax. The Federal Decree provides for levy of UAE Corporate Tax .

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Executive Summary: This Article authored by our Founder Director Sh. Mayank Mohanka, FCA, captures all the nuances of the RBI Digital Currency (CBDC) and explains the probable unintended taxation implications arising out of the usage of such digital rupee in the light of the structure, design, nature, features and issuance mechanism of such digital rupee.

The launch of the first pilot for retail digital Rupee (e₹-R) on 1.12.2022, by RBI, has created a lot of buzz in all financial circles and fintech industry. Interestingly, this launch constituted the third step of the ‘three-step graded roll-out strategy’ to launch ‘Central Bank Digital Currency’ (CBDC) by RBI, pursuant to the announcement of introduction of sovereign digital rupee, .

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Executive Summary: This Article authored by our Founder Director Sh. Mayank Mohanka, FCA, captures and explains all the nuances and nitty-gritties of prescribed Share Valuation Rules and the Enigma therein from the eyes of both the Investor and the Investee.

Once upon a time, in the ‘Durbar’ of ‘Raja Krishna Dev Raya’, the king of ‘Vijaya Nagar’ Empire, in Southern India, two persons named ‘Vyapari’ and ‘Niveshak’ came for seeking justice, in respect of a dispute arising out of the ‘Mulyankan Pranali’ (valuation rule) prescribed by the kingdom, in respect of accepting and or making investments in business transactions.

Vyapari has com.

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Executive Summary: In this insightful Article, penned by our founder Director Sh. Mayank Mohanka, FCA, the critical and practically relevant issue of mechanical processing of ITRs by the Income Tax Department u/s 143(1) of the Income Tax Act, in some instances, has been discussed and analysed in detail, with the help of real-life practical case studies.

The author Sh. Mayank Mohanka, FCA writes as under:

Time to Make Artificial Intelligence-Intelligent & Machine Learning-Learn!!

Well, no need to worry Friends, I am not going to discuss the general theoretical and cliché debate of ‘Man vs. Machine’ here. But the topic of my interest is the critical and significant issue of mechanical ‘Summary Ass.

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Friends, Albert Einstein once said: "The hardest thing in the world to understand is the Income Tax." 

On this 164th Income Tax Day, here’s presenting some hilarious Income Tax Assessments and Tax Audits QAs/ visualisations conceived and visualised by our Founder Director, Shri Mayank Mohanka, FCA, which will help You in understanding all important reporting clauses in the Form 3CD Annexure in the Tax Audit Report (TAR), and their interplay with the Income Tax Assessments, in a funny yet purposeful and useful manner.

1. Clause 44 of TAR

Tax Auditor to an 'Expense' head: Why are you so upset & angry?

Expense head: I am upset as earlier .

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Executive Summary

This Article, authored by our Founder Director Sh. Mayank Mohanka, captures the entire journey and life-cycle of Section 14A and Rule 8D, the Legislative Intent of its introduction, and how that is being disregarded, the practical hardships being faced by the assessees, all significant legal precedents on section 14A and Rule 8D, the recent amendment brought in Section 14A by the Finance Act, 2022, its applicability i.e., prospective or retrospective, in the light of real-life assessment scenarios.

The equituous and meritorious objective, purpose and the legislative intent of bringing in the expenditure disallowance section 14A, in respect of exempt income, has somehow, been turned down into an unfettered, u.

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Scope & Coverage of TDS on Benefits or Perquisites u/s 194R

In the Finance Act 2022, a new TDS section 194R, has been inserted in the Income Tax Act, and which has been made applicable w.e.f. 1.7.2022.

This new TDS section 194R requires deduction of tax at source @ 10%, by any person, including a company, providing any benefit or perquisite, whether convertible into money or not, exceeding Rs. 20,000 in value in a year, to a resident, arising from the carrying out of any business or exercise of any profession by such resident recipient.

The provisions of this section shall not apply if the benefit or perquisite provider is an individual or a Hindu undivided family,.

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As anticipated, the Apex body CBDT has come up with a Clarificatory Circular No. 12 of 2022 bearing folio no. 370142/27/2022-TPL, dated 16.6.2022, containing clarificatory guidelines in the form of ‘Ten Question-Answers’, on newly inserted provisions concerning applicability of TDS on Benefits or Perquisites, u/s 194R of the Income Tax Act. The copy of the said CBDT Circular is enclosed as per pdf file below, for ready reference of our Readers.

In this Taxalogue, all the significant clarifications/guidelines as contained in the captioned CBDT Circular No. 12 of 2022, concerning the practical implementation of the provisions of section 194R w.e.f. 1.7.2022, have been analysed and explained.

However, before proceeding towar.

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The recent unfortunate development of the arrest of two CAs by the Officers of CGST, Gurugram Commissionerate, on 18.5.2022, on the ground of alleged issuance of false Certificate in fraudulent availment of Input Tax Credit (ITC) and consequent refunds of around Rs.15 crores to the beneficiary party (whereabouts still unknown), has raised some serious concerns and apprehensions on the correct interpretation and implementation of the corresponding legislative provisions in respect of the power of arrest, as contained in section 69 read with section 132 of the CGST Act, 2017.

This is duly evident from a bare perusal of the Arrest Memo, issued u/s 69, by the CGST, Gurugram Commissionerate, in this unfortunate incident. It is pertinent to mention here that.

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Executive Summary: In this Article, the author Shri Mayank Mohanka, FCA has tried to address all crucial yet lesser talked about issues in respect of the substituted new reassessment regime, like what is the meaning of the expression, "Information in possession, as per the Risk Managment Strategy of CBDT", the current litigative trends in the new reassessment regime, present day tendency of circumvention of the reduced limitation period of three years, by the revenue authorities and the Legislative Intent vs. Ground Level Implementation of the substituted provisions of the new reassessment regime. 

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The Finance Act 2021, has substituted the old re-assessment regime with a new re-assess.

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Friends, all of us have seen the Hollywood block buster movie- ‘Avengers Endgame’. In the movie, the Avengers enter the Quantum Realm with the help of Pym Particles, and travel back in time, to prevent Thanos from getting the infinity stones, in order to make good the wrong, which Thanos has done in the past.

This fictional time travelling concept has been made a characteristic and a highlighting feature in many Hollywood Movies, including the likes of Avengers Endgame, but surprisingly and interestingly, this imaginary time travelling concept, has now been tried to be visualised, in the Income Tax Act, by the CBDT Instruction No. 1/2022 dated 11.5.2022, perceived to be containing the guidelines for the uniform implementation of the hon&rsq.

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“First time it is a Mistake, Second time, it is a Deliberate Take.”

In response to the ‘Income Tax Gazetted Officers’ Association’s Query Letter, seeking clarification on the implementation aspects of the Hon’ble Supreme Court Judgement on validity of old reassessment notices u/s 148, in the case of ‘Union of India vs Ashish Agarwal (2022 SCC Online SC 543), dated 4.5.2022, the Apex Body, CBDT, on 11.5.2022, has issued Instruction No. 01/2022, dated 11.5.2022, containing Guidelines for Implementation of SC Judgement in this case.

What is there in the CBDT Instruction?

The said CBDT Instruction contains detailed guidelines in respect of the.

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CBDT has issued Instruction No. 01/2022, dated 11.5.2022, containing Guidelines for Implementation of SC Judgement in the case of ‘Union of India vs Ashish Agarwal (2022 SCC Online SC 543), dated 4.5.2022. For ready reference of our Readers, the said CBDT Instruction is enclosed as per PDF File at the end of this Article. 

In the said Instruction, CBDT has prescribed a uniform procedure to be adopted for implementing the SC judgement, where extended reassessment notices have been issued, irrespective of the fact, whether such notices have been challenged or not.

Para 6.2 of the said CBDT Instruction, perhaps, constitutes the core of this Instruction, as it specifies the manner, in which, the impugned re-assessment .

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Executive Summary

In this Article, the Author has tried to capture all the nuances and practical implications of the Hon'ble Supreme Court judgement on Validity of Old 148 Re-Assessment Notices, and gives a Clear and Unambiguous Picture & Guidance on the New Valid Timelines for Validity of such impugned Re-assessment Notices, in accordance with the directions given in the SC judgement. This Article also contains guidance on existing legal precedents on the Doctrine of Complete Justice under Article 142 of the Constitution of India, and its limiting factors, if any. The author finally sums up his discussion with his Poem titled, "A Poem on Re-Assessment Mayhem", capturing the entire litigation journey of these re-assessment notices, ve.

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New Reassessment Regime in the Finance Act 2021, Got Introduced,

With time period for Reopening u/s 148, from 6 to 3 years, Reduced.

Only Escaped Income, exceeding Rs. 50 lakhs per year,

Gave the Jurisdiction, to reopen the cases up to 10 years.

Reason to Believe got Replaced with Information in Possession,

CBDT’s Risk Management Strategy substituted AO’s Discretion.

Deadline of 31.3.2021 for Issuing Old 148 Notices, got Mandated,

<.

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In one of its kind and peculiar judgement, the hon’ble Supreme Court, on 4.5.2022, in a batch of Civil Appeals, with the case of Union of India & Ors. Vs. Ashish Aggarwal, Civil Appeal No. 3005/2022, as the lead case, has upheld the validity of all the respective re-assessment notices, hitherto, issued under old section 148, on or after 1.4.2021 and up to 30.6.201, by holding them as deemed to have been issued under the new section 148A, of the Income Tax Act, as per the provisions of the Finance Act, 2021.

It is pertinent to mention here that hitherto, the hon’ble High Courts, in the undermentioned judgements, have quashed the respective reassessment notices, issued under old section 148, on or after 1.4.2021, and uptill 30.6.2021, as.

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The Finance Act 2022 has inserted a new section 139(8A) in the Income Tax Act, w.e.f. 1.4.2022, enabling the furnishing of an updated return of income, within a period of two years from the end of the relevant assessment year.

The Apex Body CBDT vide its Notification No. 48/2022 dated 29.4.2022, has inserted a new Rule 12AC in the Income Tax Rules, 1962. This new Rule 12AC provides that the updated return of income u/s 139(8A) of the Income Tax Act, can be filed for assessment year 2020-21 and subsequent assessment years. The Rule further provides that such an updated return shall be furnished in the Form ITR-U, along with the respective originally applicable ITR Forms 1- 7 (as the case may be), and be verified in the manner indicated as under:

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Unique Document Identification Number (UDIN) has been made mandatory for all kinds of the Certifications, GST and Tax Audit Reports and other Audit, Assurance and Attestation functions undertaken/signed by full-time Practicing Chartered Accountants.

As per the ICAI Council decision taken at its 379th Meeting held on 17th & 18th December, 2018, UDIN has been made mandatory in phased manner as per following schedule:

  • For all Certificates w.e.f. 1st February, 2019.

  • For all GST and Tax Audit Reports w.e.f. 1st April, 2019.

  • For all other Audit, Assurance and Attestation functions w.e.f. 1st July, 2019.

.

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Friends, it is often said that a "Poem" conveys your thoughts in lesser words but with a greater impact. So, here is a "Poetic Tribute to the New Era of Faceless Assessments" by our Founder Director, Shri Mayank Mohanka, in his Poem titled, "What's in a Face?". The entire scheme of Faceless Assessments has been explained beautifully in a poetic manner by the author." 

“What’s in a Face?”

A Poetic Tribute to the New Era of Faceless Assessments

“What’s in a Name?”, said Shakespeare,

“What’s in a Face?”, CBDT Veers.<.

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Epilogue:

The Hon'ble Supreme Court, on 11.4.2022, has admitted Revenue's SLP {reported in [2022] 137 taxmann.com 210 (SC)}, against the Hon'ble Bombay High Court Judgement in the case of Mantra Industries Ltd vs. NFAC {reported in [2021] 131 taxmann.com 165 (Bombay)}, and has also stayed this Order, till next date of hearing on 4.5.2022.

The main plea of Revenue’s Representative, before the Hon’ble Supreme Court was the retrospective Omission of subsection (9) of section 144B, w.e.f. 1.4.2021, by the Finance Act 2022. In its Order, the Hon'ble Bombay High Court has set aside the impugned faceless assessment order, by holding the impugned assessment order as passed i.

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"With April 1, begins the New Financial Year,

Time to Move on with, ‘Sweet n Sour’ Learnings from Rear.

Can’t Stop My Pen from Reminiscing,

Of All what has happened with Assessments Completion-Time Nearing.  

With Assessments on 31 March, getting Time-Barred,

Fun & Pleasure from Life, completely Charred.

Back in Picture, came Jurisdictional Assessing Officers,

With Paucity of Time, Faceless Assessments, getting to them Transferred.

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On this International Women’s Day (IWD), Team TaxAaram conveys its sincere gratitude, thanks and a BIG SALUTE to All the Wonderful & Charismatic Women & Girls Out there!!

International Women's Day (March 8) is a global day celebrating the social, economic, cultural, and political achievements of women. The day also marks a call to action for accelerating women's equality.

IWD has occurred for well over a century, with the first IWD gathering in 1911 supported by over a million people. Today, IWD belongs to all groups collectively everywhere. IWD is not country, group or organization specific.

The Theme of this year's International Women's Day is "BREAK THE BIAS&quo.

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While all parts of the world are echoing serious concerns on the scary geo-political development of Russia’s launching  an all-out invasion on Ukraine, by land, air and sea, on 24.2.2022, with European Union, NATO, Britain and USA, announcing stringent trade restrictions and sanctions on Russia, our hon’ble PM Sh. Narendra Modi has already commenced his strategic action plan, to evacuate the stranded 20,000 Indians including students, in the war struck Ukraine, either by air-lifting, or by road via Romania or Poland or Hungary.

Let us sincerely pray for the safe return of all our stranded Indian brothers and sisters in Ukraine and May Good Sense and Humanity prevails over Obstinacy  and Vested Interests, to avert this Third World.

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Just 1 less than 200, i.e., 199. 

Well yes Friends, that is the total page count of this year’s Memorandum explaining the provisions in the Finance Bill 2022, and going through these 199 pages of the explanatory memorandum, one can easily fathom the reason for the choice of the captioned title of this writing piece.

Like the previous years, this year’s Union Budget (Finance Bill 2022) is also characterised by umpteen budget amendments, which have been brought in by the legislature, primarily for the purpose of rendering infructuous, the well-settled and established judicial ratios or legal positions arising out of the time-tested judgements/judicial pronouncements of hon’ble High Courts and the ho.

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“Ramu Kaka, ek special meetha Pan dena, bina supari waala.”

(Ramu Kaka, please give me my special sweet Pan, without betel nut)”, I told our next door ‘Pan wala’ (Pan vendor), Ramu kaka, while returning from my late evening stroll, after my dinner. 

“Ek banarasi”, said another evening walker to Ramu Kaka.

“Sorry Bauji, ab humne banarasi Pan to rakhna bund kar diya hai. (Sorry Sir, now I no longer keep ‘banarasi Pan)” Ramu kaka told that person, while preparing my meetha Pan, with gulukand (sweet mixture of rose petals), but missing out on the usual elaichi (cardamom), which he usually put in my meetha Pan.

“.

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‘Can GAAR override DTAA?’, or for that matter, ‘Can treaty shopping be considered as an impermissible arrangement?’

Well Friends, this seemingly short and pinpointed question, has in-seemingly long and abstract answer, in the absence of any specific legal precedent in this regard, in India, as of now.

However, in this article, I am making an honest and sincere attempt to find a plausible, logical and well-reasoned answer to this complicated question, analysing the applicable provisions of the Constitution of India, the Income Tax Act, 1961, legal precedents in India, though not exactly on this question, and of-course, the recent judgement of the hon’ble Supreme Court of Canada on this specific i.

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A, B, C…...Q, R, S….

Well Friends, don’t get confused…I am not memorising the alphabets here.

I am simply referring to the New TDS Sections, inserted year after year, by the Legislature, in Chapter XVIIB of the Income Tax Act, 1961.

Keeping pace with the previous years’ momentum, the Finance Bill 2022 has also proposed two completely fresh (read new) TDS sections 194R and 194S, in the Income Tax Act, to be made effective from 1.7.2022.

So, now, only seven more sections 194T/U/V/W/X/Y and Z are needed to complete the full ABC of alphabetical universe.

Before diving scuba-deep, into these two new TDS sec.

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1.2.2022

Yes, it was the Budget Day. Two close friends, ‘Arth’ and ‘Shastri’ went out for a stroll in late evening.

‘Arth’- “Yaar Shastri, I was hearing our FM’s budget speech, today. I heard about some provision about some updated return. What is it?”

‘Shastri’ – “Yes Arth, you heard it right. In this year’s budget, a new provision has been proposed in the Income Tax Act, w.e.f. 1.4.2022, which will enable the taxpayers to file their updated returns of income, within two years from the end of the relevant assessment year. You know the meaning of assessment year na?”

‘Arth&rsquo.

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1.2.2022

Yes, it was the Budget Day. Two close friends, ‘Arth’- a businessman and ‘Shastri’ – a CA, went out for a stroll in late evening.

‘Arth’- “Yaar Shastri, I was hearing our FM’s budget speech, today. I heard about some new provision related to TDS on some perks. What is that?”

Shastri’ – “Yes Arth, you heard it right. In this year’s budget, a new TDS section 194R, has been proposed in the Finance Bill 2022, w.e.f. 1.7.2022. This section 194R requires deduction of tax at source @ 10%, by any person, providing any benefit or perquisite, exceeding Rs. 20,000 in value, in a year, to a resident, and such benefit or.

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Poised for ‘Yogakshema’ (welfare of the people), the Union Budget 2022, stands out on balancing GDP growth rate of 9.2% with fiscal deficit pegged at 6.9%, and phenomenal increase of 35% in capex outlay, to inject ‘booster dose’ for accelerating the pace of the economy.

On Tax front, FM has batted some ‘fours’ this time (and not sixers) and bowled some ‘googlies.

In Direct Tax domain, new manufacturing units have been incentivized by extending section 115BAB eligibility date for commencement of production by one more year up to 31.3.2024. Start-ups have been encouraged by extending the period of their incorporation by one more year, up to 31.03.2023 u/s 80IAC, for providing tax incentives. Trading in Cryptocurrencies has been.

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“If you can’t win your cases on merits in Court, then simply amend the Law.”

Well Friends, off-late, 'Unsettling Settled Legal Positions' seems to be the New Norm for Bringing in Stability, in the Budget Fine Prints.

This notion or belief, has become a new synonym for bringing in the stable and predictable tax regime (read tax regime in favour of revenue authorities) and somehow, seems to be the underlying guiding philosophy in bringing about the majority of the budgetary amendments in the Finance Bills.

Our Hon’ble FM Smt. Nirmala Sitharaman in her budget speech presented in the Parliament on 1.2.2022, has stated:

“The proposals in this budg.

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Our honorable FM Smt. Nirmala Sitharaman presented the Union Budget 2022-23 in Parliament today (1.2.2022) at 11 am, quoting the undermentioned Shlok from the Mahabharata.

दापयित्वाकरंधर्म्यंराष्ट्रंनित्यंयथाविधि।

अशेषान्कल्पयेद्राजायोगक्षेमानतन्द्रितः॥११॥

“The king must make arrangements for Yogakshema (welfare) of the populace by way of abandoning any laxity and by governing the state in line with Dharma, along with collecting taxes which are in consonance with the Dharma.”

Mah.

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"Dear FM, decrypt the crypto, walk the talk concerning new re-assessment regime, ensure audi alteram partem in faceless assessments & penalty and provide level-playing field to firms & LLPs, in the upcoming Union Budget 2022-23.

This year’s Union Budget 2022-23, slated to be presented on February 1, 2022, is expected to have some very large-scale ramifications for the block chain technology-based Cryptocurrencies and Non-Fungible Tokens (NFTs). Though it is clear that cryptocurrencies shall not be considered as legal tender or currency, but still a precise clarity about their disclosure requirements & taxability by way of insertion of specific legislative provisions in the Income Tax Act itself is desirable to bring much needed certainty.

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Section 10AA of the Income Tax Act, 1961, contains legislative provisions for deduction available to units established in Special Economic Zones (SEZs), in respect of profits derived by such units or establishments from the export of goods manufactured or services provided by them, subject to the fulfilment of certain specified conditions. 

In this article, a Practical Case Study on eligibility or otherwise of an assessee u/s 10AA of the Income Tax Act, is shared below, for the benefit of our Readers. 

Facts of the Case: The assessing authority, National Faceless Assessment Centre, has made an addition of Rs. 5,00,00,000/- in the regular assessment order u/s 143(3), of M/s .

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‘‘Arth’-Shastri’, well yes Friends, presently, the official twitter handle of our Income Tax Department, is tweeting some insightful tweets with ‘‘Arth’’ as the student and ‘Shastri’ as the guru.

Thus, while penning down this article, ‘‘Arth’’ and ‘Shastri’, came up as a natural choice of characters, for me also, to present some real-life practical case studies, demonstrating the paradox of ‘Procedure Over Substantive Law and Legislative Intent’, widely prevailing and duly evident in the Intimation Orders u/s 143(1), being generated mechanically, by the faceless CPC robot, now a days.

So, ‘Picture’ this….

‘‘Arth’&r.

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Remember the Case of Lakshya Buddhiraja

Well yes Friends, it was this case only, where the Faceless Appeal Scheme of CBDT, has been challenged on the grounds of violation of Principles of Natural Justice for the very first time. In this case, the discretionary power vested in the appellate authorities, for granting personal hearings to the appellants through video conferencing, in the Faceless Appeal Scheme, 2020, was being challenged.

This case travelled upto the hon'ble Supreme Court, and the hon'ble Apex Court in its judgement (CBDT vs. Lakshya Budhiraja & Anr.)  dated 1.10.2021 in transfer petition (civil) no. 1445-1446/2021, has deferred the matter for final adjusication for three months, on the submission .

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The hon’ble Delhi High Court, hearing a batch of 1346 writ petitions, (leading case being ‘Mon Mohan Kohli vs. ACIT & ANR. in W.P.(C) 6176/2021), challenging the initiation of re-assessment proceedings, on or after 1.4.2021, pursuant to issue of notices under the old section 148, in its landmark judgement dated 15.12.2021, have quashed the respective old 148 notices and have allowed all the 1346 petitions. 

For ready reference of our Readers, the Copy of the said Judgement is enclosed as a PDF File attachment below:

The Key Findings & Observations of the hon'ble Delhi High Court are being summarised below: 

(1) THE LEGISLATURE HAS PERMITTED RE-ASSESSME.

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Friends, in this Taxalogue, our founder director Sh. Mayank Mohanka, FCA, discusses and addresses, all the practical and legal aspects of the critical issue of legal sanctity and validity of the reassessment notices issued under the old section 148 on or after 1.4.2021.

In current times, the most buzzing and critically debated and talked about tax issue, having PAN India relevance and some very high value stakes, doing rounds in all the tax circles and the coveted corridors of the hon’ble High Courts, is the issue of legal sanctity and validity of the reassessment notices issued under the old section 148 on or after 1.4.2021.

Till date, the two hon’ble High Courts viz. the Chhattisgarh High Court (single Judge Bench) and the Allahaba.

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The Lok Sabha on August 9 passed The Limited Liability Partnership (Amendment) Bill, 2021, which seeks to encourage the startup ecosystem and facilitate greater ease of doing business for the law-abiding corporates in the country, amending the Limited Liability Partnership Act, 2008.

On August 4, the Bill was passed in the upper house of the Parliament (Rajya Sabha) after it was introduced by Minister of State for Corporate Affairs Rao Inderjit Singh amid protests by the opposition parties over the Pegasus snooping row and farm laws. The Bill has received the Presidential Assent on August 13, 2021 and is now called as "The Limited Liability Partnership (Amendment) Act 2021"

This is the first time that amendments have been proposed in the law that was enacte.

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The Finance Act, 2021 has inserted two new sections 206AB and 206CCA in the Income-tax Act 1961 w.e.f. 1.7.2021. These sections mandate tax deduction or tax collection at higher rate in case of certain non-filers / "Specified Persons". Higher rate is twice the prescribed rate or 5%, whichever is higher.

"Specified Person" means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under section 139(1) has expired; and the aggregate of tax deducted at source and tax collected at source in his case is Rs. 50,000 or more in ea.

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As anticipated, the Apex body CBDT has come up with a Circular No. 13 of 2021 bearing folio no. 370142/26/2021-TPL, (enclosed as per PDF file below), containing clarificatory guidelines on newly inserted provisions concerning applicability of TDS on Purchase of Goods u/s 194Q of the Income Tax Act, applicable w.e.f. 1.7.2021.

In this Taxalogue, all the significant clarifications/guidelines as contained in the captioned CBDT Circular No. 13 of 2021, concerning the practical implementation of the provisions of section 194Q w.e.f. 1.7.2021, have been explained with practical illustrations.

However, before proceeding towards the captioned CBDT Circular, it is desirable and worthwhile to first understand the newly inserted provisions on T.

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Remembering Interesting Anecdotes of the Glorious History of ICAI on The CA Day!!

The Chartered Accountants Act, 1949 came into force on July 1, 1949. Since then, July First of every year is celebrated as the "Chartered Accountants Day". Today, on this 73rd CA Day, Team TaxAaram wishes all the esteemed members of this glorious CA profession and all the aspiring CAs, a very Happy Chartered Accountants (CA) Day. 

There are some very interesting anecdotes concerning the glorious history of ICAI. The same are being shared here for the benefit of all young professionals.

The Institute of Chartered Accountants of India (ICAI) is the national 

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Understanding New TDS Provision on Purchase of Goods u/s 194Q with Practical Examples

Team TaxAaram has prepared some practical illustrations for clear and easy understanding of the new provision of TDS on purchase of goods, contained in section 194Q. These are shared below for ready reference and benefit of our Readers.

Practical Examples on Section 194Q

1. Mr. Goodly purchases goods worth Rs. 15 lakhs on 30.6.2021. He purchases goods worth Rs. 50 lakhs on 1.7.2021. His turnover in previous financial year 2020-21 was 11 crores. 

Is Mr. Goodly required to deduct TDS u/s 194Q & if yes, on what amount & at what rate?

Ans..

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Non Functional Income Tax E-Filing Portal Forces Extensions in Compliance Deadlines !!

The Apex Body CBDT on 25.6.2021, has issued a Press Release (copy enclosed in PDF file below), announcing the much anticipated extensions in various compliance deadlines in the Income Tax Act. 

Though in the Press Release, the primary reason for these extensions has been ostensibly stated to be the inconvenience caused by the corona pandamic, however, the clearly evident, non-functioning functionalities in the new e-Filing portal, in relation to all such compliances, for which the deadlines have been extended, makes it amply clear that such extensions were, in any case,  inevitable, in view of the current state of the new e.

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Key Takeways from VCM organised by Gurugram Branch of NIRC, ICAI on "Recent Changes in TDS/TCS, Tax Audit Report & E-Filing Portal" 

Team TaxAaram is glad to share the link of the recently held VCM by Gurugram Branch of NIRC on 'Recent Changes in TDS/TCS provisions, E-Filing Portal & Tax Audit Report', wherein our Founder Director Sh. Mayank Mohanka, FCA, were the Guest Speaker.

The link of the said VCM is https://www.youtube.com/watch?v=iRyAor654mc

The link of the Papers presented by Sh. Mayank Mohanka, FCA is  Read more

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Step by Step Guide to Use the New Functionality of "Compliance Check for Sections 206AB & 206CCA"

The Finance Act, 2021 has inserted two new sections 206AB and 206CCA in the Income-tax Act 1961 w.e.f. 1.7.2021. These sections mandate tax deduction or tax collection at higher rate in case of certain non-filers / "Specified Persons". Higher rate is twice the prescribed rate or 5%, whichever is higher.

"Specified Person" means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income.

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Outcome of Finance Ministry Interaction with Infosys & Other Stakeholders on Issues in New Income Tax Portal

Posted On: 22 JUN 2021 8:05PM by PIB Delhi

A meeting was held between senior officials of the Finance Ministry and Infosys on 22.06.2021 on issues in the new Income Tax Portal. The meeting was presided over by Union Minister for Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. Union Minister of State for Finance & Corporate Affairs, Shri Anurag Singh Thakur, also participated in the meeting. The interaction was attended by Shri Tarun Bajaj, Secretary Revenue; Shri J. B. Mohapatra, Chairman, CBDT; Smt. Anu J. Singh, Member (L & Systems), CBDT, and other senior officers of CBDT. Infosys was represented by its MD &a.

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CBDT Issues Circular on New Functionality to Check Return Filing Status for Compliance of Sections 206AB & 206CCA

The Apex Body CBDT has issued Circular No. 11 of 2021 bearing F. No. 370133/7/2021-TPL, dated 21.6.2021, regarding Use of Functionality u/s 206AB and 206CCA of the Income Tax Act. The said Circular is enclosed as per PDF file enclosed below.

The Finance Act 2021 has inserted two new sections viz. section 206AB mandating deduction of tax at source and section 206CCA, mandating collection of tax at source, at higher rate of double the applicable rate or 5%, whichever is higher, in case of "specified persons".

Section 2.

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Demo of Non-Functioning Functionalities of New E-Filing Portal!!

Friends, any new discovery, invention or technological development is usually accompanied by its practical demonstration so as to acclimatise the users with its new features and functionalities.

However, our eagerly awaited new e-Filing portal of the Income Tax Department, even after 10th day of its launch, has turned out to be a classical paradox.

It’s been a full 10 days since the much-hyped launch of the new e-filing portal incometax.gov.in on 7th June at 8:45 p.m., but still the new portal is battling out with several technical glitches, with many functionalities still not working.  

Replying to the concerned tweet of our honorabl.

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New e-Filing Portal May Not be Working but Pay Your 1st Installment of Advance Tax for FY 2021-22 in Time!!

It’s been a full one week since the much-hyped launch of the new e-filing portal incometax.gov.in on 7th June at 8:45 p.m., but still the new portal is battling out with several technical glitches, with many functionalities still not working.   

Replying to the tweet of our honorable FM on 8th June, the vendor Infosys has assured that the new portal will stabilize within a week’s time, but that assurance has completely fallen in face with the users still struggling to even login to their registered e-filling accounts.

The ‘e-Proceedings’ utility contai.

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“हमारी नई इंकम टैक्स वेबसाईट" - मयंक मोहनका की कलम से ....

“हमारी नई इंकम टैक्स वेबसाईट की बहुचर्चित हैं खूबियाँ महान।

तो चलो आज कर ही लेते है अपने संग हुई आपबीती का हम भी बखान॥

सात जून को ये सोचकर पूरे दिन किया हमने इसका बेसब्री से इंतजार।

कि अब तो आएगी ‘.

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Quick Reality Check of New Website (e-Filing Portal) of Income Tax Department 

Let us do a quick Reality Check of the New Website of Income Tax Department and See if the Experiment was Worth Doing!!

1. Promise: Immediate Processing of ITRs.

Reality: Site crashed on first day. Past Filed ITRs are not getting reflected on Dashboard. Those reflected in e-Filing Tab are not downloadable.

In Earlier Site, all the ITRs were readily accessible and downloadable in ‘My Account Tab’

2. Promise: All Pending Actions on Single Dashboard

Reality: Dashboard does not show Past filed Returns or Forms or Any Tax N.

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Convoluted Tax Planning Anatomy of Google, Apple, Amazon & the Global Minimum Tax Rate!!

Epilogue

05.06.2021, London

The Finance Ministers of the world’s most powerful economies i.e., the G-7 countries, comprising US, UK, Germany, France, Canada, Italy and Japan, reached a historical consensus on taxing multinational companies at a ‘Minimum Global Tax Rate’ of at least 15 per cent.

In a statement issued on 5.6.2021, OECD Secretary-General Mathias Cormann said the consensus among the G7 Finance Ministers, including on a minimum level of global taxation, is a landmark step toward the global consensus necess.

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Delhi HC Directs Revenue to Redo Faceless Assessment after Granting Personal Hearing through VC to Assessees in 2 Back to Back Judgements!!

The Hon'ble Delhi High Court in its two recent back to back judgements dated 27.5.2021, in the cases of 'YCD Industries vs. National Faceless Assessment Centre' (W.P (C) No. 5552 of 2021 and MS Lokesh Constructions Pvt Ltd vs. ACIT (W.P.(C) No. 5491/2021), has set aside the impugned faceless assessment orders on the ground that the said orders had been passed without issuing the mandatory Show Cause Notice (SCN) to the petitioners, and as such are in breach of the principle of natural justice.

These two judgements are first of their kinds of the recent .

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Critical Compliance Alerts in the Wake of Non-availability of e-filing services from 01.06.2021 to 06.06.2021

The Income Tax Department is going to launch its new e-filing portal www.incometax.gov.in on 7th June, 2021. The new e-filing portal (www.incometax.gov.in) is aimed at providing taxpayer convenience and a modern, seamless experience to taxpayers:

  • New taxpayer friendly portal integrated with immediate processing of Income Tax Returns(ITRs) to issue quick refunds to taxpayers;
  • All interactions and uploads or pending actions will be displayed on a single dashboard for follow-up action by taxpayer;<.

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Recent Stay Orders on Faceless Assessments: Elephant in the Room Syndrome!!

This Article authored by our Founder Director Sh. Mayank Mohanka, FCA, has also been published in taxmann.com with the citation (2021) 127 taxmann.com 428 (Article). Knowledge multiplies manifold by sharing, so this Article is shared here also below, for the benefit of our Readers.

One morning, Lindi found an Elephant in her room.

“Look!”, she called. “There is an Elephant in my room!”

“No there isn’t,”, her mother called back.

“Elephants don’t live in houses. Everybody knows that.”

The Elephant yawned.

Well Friends, we all have heard about this ‘Elephant in t.

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CBDT Extends Deadlines for ITR Filing, Tax Audit, TDS, TCS & SFT Returns for AY 2021-22

CBDT vide its Circular No. 9/2021 dated 20.5.2021 has extended the various compliance due dates of ITR Filing, Tax Audit, Transfer Pricing, TDS, TCS and SFT Returns for the AY 2021-22, in view of the severe pandemic. For ready reference of our Readers, the said CBDT Circular No. 9/2021 dated 20.5.2021 is enclosed as per PDF File below. 

.

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CBDT Instruction on Parameters for Selection of Scrutiny Cases under CASS for AY 2019-20

The Apex Body CBDT has issued an Instruction bearing F. No. DGIT(S)/ADG(S)-2/CASS 2020 Execution/420/2020-21, dated 17.5.2021 finalising the Computer Assisted Scrutiny Selection (CASS) 2020 Cycle for ITRs of A.Y. 2019-20. For ready reference of our Readers, the said CBDT Instruction is reproduced below:

CASS 2020 – Instruction No. 1

DIRECTORATE OF INCOME TAX (SYSTEMS)
ARA Centre, Ground Floor, E-2, Jhandewalan Extension, New Delhi-110055

F. No. DGIT(S)/ADG(S)-2/CASS 2020 Execution/420/2020-21

Dated: 17.05.2021

To,

.

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Ready Referencer on All Apprehensions on Corona

Note: The undermentioned GUIDELINES & RECOMMENDED COVID PROTOCOLS are for General Information Purpose only. Although, the undermentioned GUIDELINES & RECOMMENDED COVID PROTOCOLS are based on an Informative & Authentic General Consensus of Qualified Medical Practitioners and ICMR on Corona, and are intended to provide accurate and useful information, but nonetheless, the Readers are strictly instructed to consult their respective Doctors/ Medical Help, before relying upon these guidelines.

Q. What are the common symptoms of COVID-19 infection?

A. Common symptoms include:

  • Fever, tiredness/fatigue, difficulty in breathing, headache, body ache, th.

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First Season of Faceless Assessments: A Mixed Basket of Sweet & Sour Offerings!!

This Article authored by our Founder Director Sh. Mayank Mohanka, FCA, has been published in taxmann.com with the citation (2021) 127 taxmann.com 40 (Article). Since knowledge multiplies manifold by sharing, therefore, this Article is shared here for the benefit of our Readers.

Epilogue

The Hon’ble Delhi High Court in a Writ Petition W.P.(C)4774/2021, filed to it in the case of M/s KL Trading Corporation vs. National e-Assessment Centre’, by its Order dated 16.4.2021, has stayed the operation of the assessment order dated 31.3..

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When is the New Personal Tax Regime u/s 115BAC Beneficial? An In-depth Break-Even Point Analysis!!

A lot has already been written about the new personal tax regime u/s 115BAC of the Income Tax Act, 1961, but the silver-lining of this article is its “Break-Even Point Analysis”, between the New Personal Tax Regime of Reduced Tax Rates with No Deductions and the Old Personal Tax Regime with Higher Tax Rates with Deductions, in terms of Specified Deductions, at all levels of incomes of Individuals & HUFs, which has been very comprehensively discussed in para nos. 1.5 onwards of this piece of writing.

However, before that, some basic and fundamental insights concerning this new section 115BAC are also .

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Bandwidth Charges- Royalty or Not? Need Another SC Judgement to Resolve this Impasse

This article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 125 taxmann.com 377 (Article). Knowledge multiplies manifold by sharing so this Article is shared here for the benefit of our Readers.

On 2.3.2021, hearing almost 80 civil appeals simultaneously, the Hon’ble Supreme Court in its landmark judgement in the case of “Engineering Analysis Centre of Excellence Private Ltd. vs. CIT” in Civil Appeal Nos. 8733-8734 of 2018, has put to rest the ages old litigation and conundrum concerning the taxability or otherwise of software as royalty, by holding t.

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Rationale for Unearthing of Incriminating Evidence even in Abated Assessments

This article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 125 taxmann.com 248 (Article). Knowledge multiplies manifold by sharing so this article is shared here for the benefit of our Readers.

The legal jurisprudence in respect of the scope of unabated/concluded assessments under s.153A/153C of the Act, being confined to the incriminating evidence found during the search, is well-settled and established now. The Hon’ble High Courts and even the Hon’ble Supreme Court in a plethora of judgements have held that the additions/disallowances u/s 153A/153C of the Act towards unabated a.

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CBDT Instruction Directs AOs to Form ‘Reason to Believe’

This Article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 125 taxmann.com 148 (Article). Knowledge multiplies manifold by sharing, so for the benefit of our Readers, this Article is being shared here also.

The Apex Regulatory Body for Direct Taxes in India i.e. CBDT has brought in an Instruction dated 4.3.2021 bearing F.No. 225/40/2021/ITA-II, regarding Selection of Cases for Issue of Notice u/s 148 of the Income Tax Act.

The said CBDT Instruction directs that the undermentioned categories of cases are to be considered as ‘potential cases’ for taking action u/s 148 of t.

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"The Taxing Enigma of Resident becoming Non-Resident and Non- Resident becoming Resident Indian

This Article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in the renowned website taxmann.com with the citation (2021) 125 taxmann.com 120 (Article). Knowledge multiplies manifold by sharing, so for the benefit of our Readers, this Article is shared here.

Date: 3.3.2021; Time: 8:30 pm Indian Time

“Trin Trin Trin….”. My mobile phone’s screen flashed “Shukla Sir”. After 2 bells, I hur.

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Foreign Software No More a Hard Tax for Indian Residents!!

This Article penned down by our Founder Director Sh. Mayank Mohanka, FCA, has been published in taxmann.com with the citation (2021) 125 taxmann.com 114 (Article). Knowledge multiplies manifold by sharing, so for the benefit of our Readers, the same Article is shared here:

The date 2.3.2021 will be remembered as a landmark date in the history of legislative jurisprudence on which the ages old conundrum and litigation concerning the taxability of foreign software as royalty has finally been put to rest by the Apex Court of India in its landmark judgement in the case of “Engineering Analysis Centre of Excellence Private Ltd. vs. CIT” in C.

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CBDT Extends Vivad se Vishwas Dates Yet Again!!

Well Yes Friends, its about 5 months since the PAN India rolling out of the Faceless Appeal Scheme, 2020 implemented w.e.f. 25.9.2020, but till date not even one single Faceless Appeal Order has churned out of the new regime of faceless appeal.

The primary reason for this delay in disposing of the appeals by the CIT(Appeals) even in the Faceless Appeal Regime is perceived to be this Vivad se Vishwas (VsV) Settlement Window. It is being said that the appeals of assessees are not being disposed of till the time this VsV Settlement window remains open, so as to mobilise as much revenue as possible out of this VsV settlement window..

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बजट प्राव्धानो पर सीधी और पते की बात। Straight and honest talk on Budget amendments.

1.TDS at Double Rate in case of Non-Filers of ITRs (Section 206AB):

The Finance Bill 2021 has proposed to insert a new section 206AB in the Income Tax Act, w.e.f. 1.7.2021 which mandates that the deductor will be required to deduct TDS at twice the applicable rate or @ 5% whichever is higher, if the deductee has not filed his/her ITR for the immediately tw.

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Would Amitabh Bachchan, Aishwarya Rai, Katrina Kaif & Sunil Gavaskar have won their Appeals in the newly proposed Regime of Re-assessments subsuming Block Assessments?  

This Article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in renowned website taxmann.com with the citation (2021) 124 taxmann.com 487 (Article). Knowledge is meant for sharing, so this Article is shared here for the benefit and enlightenment of our worthy readers.

“Honourable Speaker, presently an assessment can be re-opened up to 6 years and in serious tax fraud cases for up to 10 years. As a result, taxpayers have to remain under uncertainty for a long time.

I therefore propose to reduce this time-l.

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The Tale of ‘Sukhiram’, ‘Dukhiram’, ‘Sevakram’, ‘Gyaniram’ & the PF related Budget Amendment!!

This Article penned by our Founder Director Sh. Mayank Mohanka, FCA has been published in renowned website taxmann.com with the citation (2021) 124 taxmann.com 193 (Article). Knowledge is meant for sharing so this Article is being shared here for the benefit of our Readers.

1.2.2021

Yes, it was the Budget Day. Two close friends, ‘Sukhiram’ and ‘Dukhiram’ went out for a stroll in late evening.

Dukhiram – “Sukhi, why are you looking so ‘dukhi’ (upset)?”

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Googlies Bowled in Finance Bill 2021- No Balls or Not? Third Umpire Please Intervene!!

This article penned by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 124 taxmann.com 127 (Article). Knowledge is meant for sharing so this article is being shared here for the benefit of our Readers.

"Drawing an analogy from Indian Cricket Team’s spectacular comeback in the Test Series in Australia, our hon’ble FM Smt Nirmala Sitharaman in her budget presentation on 1.2.2021 before the Parliament has hoped for the same revival and comeback of our economy.

The fine print of the Finance Bill 2021, besides hitting some ‘Sixers’, has also bowled out some deadly &.

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Final Fact-Finding Appellate Authority Also Going Faceless w.e.f. 1.4.2021

This Article penned by our Founder Director Sh. Mayank Mohanka, FCA has been published in renowned website taxmann.com with the citation (2021) 124 taxmann.com 42 (Article). Knowledge is meant for sharing, so this Article is shared here also, for the benefit of our Readers.

Well Yes Friends, the Final Fact-Finding Appellate Authority i.e. Income Tax Appellate Tribunal (ITAT) is also going Faceless w.e.f. 1.4.2021.

Clause 78 of the Finance Bill 2021, presented digitally by our hon’ble FM Smt. Nirmala Sitharaman, before the Parliament, on 1.2.2021, reads as under:

“78. In section 255 of the Inc.

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A Few Hidden Googlies in that Made in India Tab containing the First Paperless Finance Bill 2021!!

This Article penned by our Founder Director has been published in taxmann.com with the citation (2021) 124 taxmann.com 11 (Article). Knowledge is meant for sharing, so for the benefit of our Readers, this Article is shared below, here also.

It is being said that, “Beauty lies in Details”, but so does the ‘Devil’. Some of the direct tax proposals & amendments as announced by our beloved FM in her Budget Speech have garnered the limelight of all news channels, like the relaxation to senior citizens aged 75 years and above having pension and interest income from filing ITRs, postponement of advance-tax liabi.

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Key Takeaways from Direct Tax Proposals in Indian Union Budget 2021-22

Direct Taxes

(i) No changes in existing Tax Slabs.

(ii)Senior Citizens aged 75 years or more having only interest income and pension income exempted from filing of income-tax returns. The paying bank will deduct the necessary tax (TDS) on their income.

(iii) Threshold limit of annual turnover for Tax Audits u/s 44AB raised from Rs 5 crores to Rs 10 crores if their cash receipts and cash payments don’t exceed 5% of their total receipts and payments.

(iv) Time limit for Re-opening Assessments u/s 147 reduced from 6 years to 3 years. In serious tax evasion cases having .

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Some 'AAPBEETI' Moments of Enigma in Tax Practice: Please Resolve These, Our Beloved FM!!

This article penned by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 123 taxmann.com 457 (Article). Knowledge is meant for sharing, so for the benefit of our Readers, the said article is being shared here as under: 

Enigma 1

“Sir the compensation received for compulsory acquisition of land (both agricultural as well as non-agricultural land) in an award under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLAAR Act, 2013), is exempt from the levy of I.

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Delhi High Court Gives a Refreshing Relief on the Issue of LTCG on Penny Stock by Holding that the theory of human behavior and preponderance of probabilities cannot be cited as a basis to turn a blind eye to the evidence produced by the assessee.

The Honourable Delhi High Court in the Case of "PCIT vs Smt. Krishna Devi" in ITA 130/2020 dated 15.1.2021, has given a refreshing breather and relief on the issue of LTCG on Penny Stocks. In its said judgement, the Hon'ble Delhi High Court has categorically held that the theory of human behavior and preponderance of probabilities cannot be cited as a basis to turn a blind eye to the evidence produced by the assessee.

For ready .

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Countdown to First Paperless Union Budget 2021 Begins with First Ever Union Budget Mobile App!!

The Count-down to the ‘Union Budget 2021-22’ has begun with the conducting of the ceremonial ‘Halwa Ceremony’ on 23.1.2021. As a customary ritual, a mouth-watering sweet-dish ‘Halwa’ is prepared in humongous quantity in a huge ‘Kadhai’ (as depicted in the picture), and is distributed by the FM among all the office bearers of the Finance Ministry involved in the Budget making process. Interestingly, halwa ceremony also marks the beginning of about a week’s lock-down period (not caused due to corona ofcourse) for the f.

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Pre-Budget 2021 Wish: ‘Audi Alteram Partem’

This Article penned down by Sh. Mayank Mohanka, FCA, Founder Director in M/s TaxAaram India Pvt Ltd has been published in the renowned website Taxmann.com with citation (2021) 123 taxmann.com 351 (Article). Knowledge is meant for sharing so this Article is shared herewith with our Readers as under: 

Audi alteram partem (or audiatur et altera pars) is a Latin maxim or phrase meaning "no man should be condemned unheard” or “hear the other.

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Pre-Budget 2021-22 Wish: Correct the Paradox of Putting ‘the Cart before the Horse’ i.e. ‘Audit before the Compliance’.

This article penned down by Sh. Mayank Mohanka, FCA, Founder Director is M/s TaxAaram India Pvt Ltd has been published in the renowned website Taxmann.com with the citation (2021) 123 taxmann.com 271 (Article).

Knowledge is meant for sharing, so for the benefit of our Readers, this article is now being shared here.

“Once in the Durbar of Raja Krishna Dev Rai, the king of Vijay Nagar in Southern India, two persons named ‘Vyapari’ and ‘Lekhakar’ came for seeking justice in respect of a dispute arising o.

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Learning the New Rules of Penalty Shoot-out. Faceless Penalty Scheme 2021, Decoded!!

1. Learning the New Rules of the Game

In the game of football, your good performance and hard work of the entire game can go for a toss with just one wrong or foul move resulting in the award of penalty shoot-out to your opponent. Sometimes, even an error of judgement by the Referee may also result in penalty. Whether its your foul play or the error of judgement by the Referee, once a penalty shoot is given to your opponent, then You are left with no other choice but to save your Goal. And for saving your goal, it is quintessential that you know the rules of penalty-shoot out like how many defenders can remain in the inside circle etc., s.

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No Further Extension in Due Dates: CBDT Issues Order u/s 119, Rejecting All Representations for Extension in ITR Filing & Tax Audit Due Dates for AY 2020-21

The Apex Body CBDT has issued an Order u/s 119 of the Income Tax Act bearing F.No. 370153/39/2020-TPL, dated 11.1.2021, taking cognizance of the Hon'ble Gujarat High Court direction to look into the issue of extension of ITR filing and Tax Audit due dates for AY 2020-21 and has clarified that no further extension will be granted.

In the said Order, CBDT has mentioned that:

(i) The Government has been pro-active in providing relaxation to the taxpayers by extending due dates on 3 occasions;.

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If time period for Income Tax Officials has been extended upto 31.3.2021 then Why not for Taxpayers? : Gujarat High Court

The Honourable Gujarat High Court on 8.1.2021, in a writ petition filed by the Tax Professionals in the Case of “The All Gujarat Federation of Tax Consultants vs. Union of India” in R/Special Civil Application No. 13653 of 2020, have directed the Ministry of Finance to take an appropriate decision regarding the further extension of ITR Filing and Tax Audit Due Dates for the AY 2020-21, by 12th January 2021.

For ready reference of our Readers, the operating para of the said judgement is reproduced below:

“21. We are of the view that the respondent .

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CBDT finally extends ITR Filing, Tax Audit (for AY 2020-21) & Vivad se Vishwas Declaration Filing Due Dates amid Break-down of IT Website!! 

December 30, 2020

What a day it has been, with the incometax department's e-filing portal almost succombing and surrendering to the ever-growing traffic and rush on site and the tax professionals and taxpayers struggling to e-file and upload their xml files of returns of income or tax audits. 

Still the person managing and operating the official twitter handle of the Incometax department has been corageous and optimistic enough to upload these number of ITR filings for the day:

.

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Seven Reporting Clauses in Tax Audit Report (Form 3CA/CB read with 3CD) causing Dilemma & Hardships for Tax Auditor & Auditee, due to Non-Alignment of Tax Audit & ITR Filing Due Dates!!

All of us know that presently the Tax Audit due date for AY 2020-21 has been extended till 15.01.2021 and the due date for filing of Returns of Income in such tax auditable cases u/s 139(1) of the Income Tax Act, has been extended till 15.2.2021.

In this Taxalogue, I am discussing atleast Seven (7) Reporting Clauses in the Tax Audit Report (Annexure Form 3CD), which requires reporting by the Tax Auditor on certain specified compliances by the tax auditee uptill the due date of filing of return of income u/s 139(1) of the Income Tax Ac.

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Check Out the New Avatar of the Faceless Appeal Notice in Q-A Form!!

Well Yes Friends, the New Avatar of the Appeal Notice in Faceless Appeal Regime is Out Here at taxaaram.com for All Our Worthy Readers to See & Understand.

The New Faceless Appeal Notice is in Question-Answer (Q-A) Form, containing SIX (6) Questions & their Answers to Guide the Appellant through the Practical Gateways of Faceless Appeals Regime.

For Ready Reference of Our Worthy Readers, these Six Questions are shared below:

1. Why are you getting this communication?
Dear Appellant,
This communication is in connection with the above referred appeal preferred by you against the orde.

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All You Need to Know & Do in Faceless Appeals Regime!!

This Article penned down by Sh. Mayank Mohanka, FCA, Founder Director of TaxAaram India Pvt Ltd, has been published in the renowned website Taxmann.com with the Citation (2020) 122 taxmann.com 179 (Article).

Knowledge is meant for sharing, so for the benefit of our worthy Readers, this Article is now being shared here.

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change”- Charles Darwin

1.Faceless Appeals: A New Era of Anonymous Adjudication

Friends, let me begin with an interestin.

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A Light in the Tunnel: Aatma Nirbhar Bharat Rozgar Yojna (ABRY) gets Union Cabinet’s Approval

Amid the chaotic broadcasting of the Kisan Andolan Stories and Bharat Bands, one good and positive news which has been missed by almost all the news channels and national dailies is the Union Cabinet’s Approval of Aatma Nirbhar Bharat Rozgar Yojna (ABRY) on 9.12.2020.

Aatma Nirbhar Bharat Rozgar Yojna (ABRY) was announced under the financial stimulus package Aatma Nirbhar Bharat Package 3.0, by the Union Finance Minister Smt. Nirmala Sitharaman on the occasion of Dhanteras on 9.11.2020.

 Key Highlights of Aatma Nirbhar Bharat Rozgar Yojna (ABRY)

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Key Takeaways from New FAQs issued by CBDT & Practical Guide to e-File Declaration Form 1 under Vivad se Vishwas Scheme, 2020

The Apex Body CBDT has issued Circular No. 21/2020 dated 4.12.2020 containing FAQ's & Clarifications on some crucial & vital issues in the Vivad se Vishwas Scheme, 2020. This Circular has been issued in continuation of its earlier Circular No. 9/2020 dated 22.4.2020 (containing Questions 1 to 55), containing 34 more FAQs (Q. no. 56-89).

It is pertinent to mention here that CBDT has stipulated the last date for filing of Declaration Form 1, to opt for settlement of the incometax disputes, under the Vivad se Vishwas Scheme as 31.12.2020. Further the declarants can make the payment of disputed tax without a.

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CBDT Issues Further FAQs Clarifying some Critical Issues in Vivad se Vishwas Scheme, 2020

The Apex Body CBDT has issued Circular No. 21/2020 dated 4.12.2020 containing FAQ's & Clarifications on some crucial & vital issues in the Vivad se Vishwas Scheme, 2020. This Circular has been issued in continuation of its earlier Circular No. 9/2020 dated 22.4.2020 (containing Questions 1 to 55), containing 34 more FAQs (Q. no. 56-89).

For ready reference of our worthy readers, the said CBDT Circular No. 21/2020 dated 4.12.2020 containing 34 more FAQs (Q. no. 56-89), is being enclosed as per the pdf file below.

Further, the practicalities and nuances of filing the online Declaration Forms under th.

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When is the New Personal Tax Regime u/s 115BAC Beneficial? An In-depth Break-Even Point Analysis

1. The new FY 2020-21 corresponding to the AY 2021-22, has already started w.e.f 1.4.2020. So, it is very essential on our part to be equipped and ready with an informed, wise and timely decision concerning the opting or not of the new personal tax regime u/s 115BAC of the Income Tax Act, 1961.

A lot has already been written about the new personal tax regime u/s 115BAC of the Income Tax Act, 1961, but the silver-lining of this article is its “Break-Even Point Analysis”, between the New Personal Tax Regime of Reduced Tax Rates with No Deductions and the Old Personal Tax Regime with Higher Tax Rates with Deductions, i.

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Income & Expenditure pertaining to Pre-Commencement Business Period: Revenue or Capital?

“To be curious is a good thing and to work towards satisfying ones’ curiosity is even better.”

Introduction:

The critical question concerning the nature and taxability of ‘income’ and ‘expenditure’ pertaining to the ‘pre-commencement business/commercial production’ period, in newly incorporated business enterprises and ‘start-ups’ has always remained a confusing and litigative issue with Revenue Authorities considering the expenses as capital in nature and income as revenue in nature and the assessees wishing to treat the same in e.

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GST Compliance Alert for 93% of Registered Persons: the Crucial Date of 30th November, 2020.

In India, at present about 93% of the total Registered Persons under GST are having their annual turnover of up to Rs. 5 crores, and the tomorrow’s date of 30.11.2020 is very significant and crucial for all such registered persons.

Uptill 31.12.2020, the businesses and traders having an annual aggregate turnover in excess of Rs. 1.5 crores are required to mandatorily file monthly GSTR 1 (Return for Outward Supplies) and GSTR 3B (Consolidated Return of Outward & Inward Supplies).

It is pertinent to mention here that the Government of India, Ministry of Finance (Department of Revenue), CBIC, vide  Read more

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SOPs Issued by Income Tax Department for Faceless Assessments

The Principal Chief Commissioner of Income Tax, NeAC, with the prior approval of the Central Board of Direct Taxes has laid down the Standard Operating Procedure (SOPs) for Assessment Unit, Verification Unit, Technical Unit and Review Unit to facilitate assessment under Faceless Assessment Scheme, 2019.

The SOPs provide guidance to the units of ReACs and outline the process for facilitating faceless assessments in electronic environment as envisaged in FAS 2019.

For ready reference of our Readers, the SOPS issued by NeAC for Assessment Unit, Verification Unit, Technical Unit and Review Unit to facilitate assessment under Faceless Assessment Scheme, 2019 are being reproduce.

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Understanding the New GST Diwali Bonanza-Quarterly Return Monthly Payment (QRMP) Scheme with Practical Illustrations

The Goods & Service Tax (GST), inspite of its PAN India roll-out as ‘One Nation One Tax’, w.e.f. 1.7.2017, has been looked upon with some reservations and apprehensions by the small and middle level businesses and traders on account of its perceived complicated compliances including the requirement of monthly return filings.

Currently, the businesses and traders having an annual aggregate turnover in excess of Rs. 1.5 crores are required to mandatorily file monthly GSTR 1 (Return for Outward Supplies) and GSTR 3B (Consolidated Return of Outward & Inward Supplies).

The GST Reform has been introduced .

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       🌹🌹शुभम करोति कल्याणम, 
                   अरोग्यम धन संपदा, 
                   शत्रु-बुद्धि विनाशायः, 
                   दीपःज्योति नमोस्तुते ! 🌹🌹

आपको सपरिवार पंचदिवसीय प्रकाश पर्व:
धनतेरस, चतुर्दशी,  दीवाली, गोवर्धन पूजा एवं भाई दूज की अनन्त हार्.

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FM Gifts ‘Aatma Nirbhar Bharat Stimulus Package 3.0’, on the Occasion of Dhanteras

The festival of ‘Dhanteras’ kickstarts the festivities of Diwali, bringing with it new hopes, aspirations, enthusiasm and vibrancy. According to Hindu mythology, on this day, Goddess Lakshmi emerged from the ocean of milk along with a pot full of Gold and Lord Kuber. It is believed that Goddess Lakshmi brings Lord Kuber to fulfill the wishes of the devotees. So, people worship Goddess Laksmi and Lord Kuber (God of wealth), on this auspicious day.

The Hon’ble FM Smt. Nirmala Sitharaman has also come up with the much needed Financial Stimulus Package - ‘Aatma Nirbhar Bharat Stimulus Package 3.0&rsqu.

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MCA Issues Important Clarification to Rectify an Anomaly in Extension of LLP Settlement Scheme, 2020 & Due Date of Filing Form 8 for FY 2019-20.

All Limited Liability Partnerships (LLPs) registered under Limited Liability Act, 2008, are required to file two statutory forms viz. Form 11 and Form 8, annually.

The Annual Return in Form 11 is to be submitted within 60 days of closure of the financial year i.e. by 30th May of the subsequent financial year. The Statement of Account and Solvency in Form 8 is to be submitted within 30 days from the expiry of six months from the closure of the financial year i.e. by 31st October of the subsequent financial year.

The Ministry of Corporate Affairs (MCA) on 9.11.2020, has.

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Remembering Demonetisation on its Fourth Anniversary!!!

Who can forget…?

November 8, 2016

Time: 8 p.m.

"To break the grip of corruption and black money, we have decided that the five hundred rupee and thousand-rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016."

Yes, with these historic words, the Hon’ble PM Modi has announced the demonetisation of Rs. 500 and Rs. 1000 notes, the Specified Banned Notes (SBNs), on the eve of 8.11.2016, in his surprise prime time address to the Nation.

1. Operation Clean Money (OCM)

Post demonetisation of Rs. 50.

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Amazon (Gopal Subramanium) vs. Reliance/Future Group (Harish Salve): An Inriguing Battle of Market Share & Nerves

All of us are aware of the much talked about announcement of the acquisition of the Kishor Biyani's Future Group Retail Business including Big Bazar by the Mukesh Ambani's Reliance Industries (RIL) for a consideration of Rs. 24,713 crores. 

However, subsequent to the announcement of this Reliance-Future Group deal, a lot of interesting developments, both in domestic front and in international front have taken place, which may not be known to many. So, it will really be worthwhile to know about the subsequent interesting and intriguing developments concerning this deal.

Jeff Bezos' Amazon, Relianc.

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Faceless Assessments & Appeals: Missing Out on that Odd Cup of Tea with AO/CIT(Appeals) for a Far More Rewarding TEA of Transparency, Efficiency & Accountability!!!

Friends let me begin with an interesting question....

"What comes across your mind when you hear these terms and phrases- artificial intelligence, machine learning, advanced algorithm based data analytics, automated random allocation system, automated examination tool, hash function, video telephony? Any science fiction movie or any space science mission?

Well, here I am simply referring to some of the terminology being used in the New Legislative Schemes of Faceless Assessments & Appeals. 

The usage of the above tec.

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Charitable Trusts and Institutions, Universities and Educational Institutions, Hospitals and Medical Institutions registered u/s 10(23C), get an Opportunity for Filing Delayed Audit Reports

The Charitable Trusts and Institutions, Universities and Educational Institutions, Hospitals and Medical Institutions registered u/s 10(23C) of the Income Tax Act, 1961, (the Act), are entitled for exemption from Income Tax, subject to the application of atleast 85% of their receipts/income towards the objectives for which these institutions have been established. 

Where the total income of such institutions, exceeds the basic exemption limit, i.e. Rs. 2,50,000/- in any previous year, the accounts of such institutions are required to be audited by a qual.

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Preparing & Filing Error Free GST Annual Return (Form GSTR-9) MADE EASY through Offline Utility

1. About Form GSTR-9 Offline Utility

Q.1 What is Form GSTR-9 Offline Utility?

Ans: Form GSTR-9 Offline utility is an Excel-based tool to facilitate the preparation of annual return in Form GSTR-9. This Annual return is to be filed once, for each financial year, on the GST Portal, by the registered taxpayers who were regular taxpayers, including SEZ units and SEZ developers.

Taxpayers may use the offline utility to furnish details of purchases, sales, input tax credit or refund claimed or demand created etc. in this return. Once return is pr.

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All You Wish to Know About the GSTN Compulsory e-Invoicing w.e.f. 1.10.2020

With the Mandatory GST e-Invoicing for the Businesses having Turnover of more than Rs 500 crores, completing One Month on 31.10.2020, the Government is now planning to make the e-Invoicing Compulsory for the Businesses with aggregate turnover of Rs 100 crores & more, very soon.

The e-invoice system, the game changer in the GST system, was launched on 1st October, 2020 for the businesses with aggregate turnover of more than Rs. 500 Crores in the financial year. Path breaking e-invoice initiative which completed one month on the 31st October, is poised to revolutionize the way businesses interact with each other. According to NIC, w.

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FACELESS, CONTACTLESS, PAPERLESS TURANT CUSTOMS CLEARANCE

Read more

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On this Rashtriya Ekta Diwas (National Unity Day), TaxAaram conveys its sincere gratitude, love & respect & pays its homage to the Iron Man of India, Sh. Vallabh Bhai Patel, on his 145th Birth Anniversary.

TaxAaram believes in the Collective Wisdom & Empowerment of All the Taxpayers & Citizens of Our Country, and is therefore working tirelessly & earnestly in making the taxpayers aware & updated about all the developments in tax & corporate laws, through its authentic & accurate blogs published in taxaaram.com on consistent & regular basis.

TaxAaram also urges all the taxpayers to kindly e-file their ITRs & GS.

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Understanding New Equalisation Levy & TDS on e-Commerce Transactions with Practical Illustrations

1. Digital Tax: The Backdrop

With the expansion of information and communication technology, the supply and procurement of digital goods and services have undergone exponential expansion everywhere, including India. The digital economy is growing at a faster rate than the global economy as a whole.

Currently in the digital domain, business may be conducted without regard to national boundaries and may dissolve the link between an income-producing activity and a specific location. From a certain perspective, business in digital domain doesn't seem to occur in any physical location but instead takes place in the nebulous .

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Post Extension of Last Date for Making Payment of Taxes, under the Vivad se Vishwas Scheme, CBDT issues very important Clarification concerning the timeline for making payment of taxes under the Scheme

The Central Government vide the notification S.O. 3847(E), dated 27th October, 2020, has extended the date for payment without additional amount under Vivad se Vishwas from 31St December, 2020 to 31″ March, 2021. The said notification also notified the last date for filing declaration under Vivad se Vishwas as 31′ December, 2020.

Under the existing provisions of sub-section (2) of section 5 of.

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CBDT further extends the last date for making payment under Vivad se Vishwas Scheme and also notifies the last date for filing Declaration in Form 1 under the Scheme 

In exercise of the powers conferred by section 3 of the Direct Tax Vivad se Vishwas Act 2020, the CBDT vide its Notification No. S.O. 3847(E) dated 27.10.2020, have further extended the last date for making payment of disputed tax without additional amount under the Vivad se Vishwas Scheme, from 31st December, 2020 to 31st March, 2021. 

Further, the Declaration in Form 1 u/s 4 of the Act, for opting for settlement of income tax disputes under the Vivad se Vishwas Scheme, are required to be filed electronically, latest by 31st December, 2020. 

Therefore.

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EPFO WhatsApp Helpline Numbers for Speedy Redressal of Grievances of Subscribers

The Employees Provident Fund Organisation (EPFO) has launched a WhatsApp helpline service for speedy redressal of grievances of its subscribers. This facility is in addition to various other means of grievance redressal forums of EPFO which include EPFiGMS portal and a dedicated 24x7 call centre. So far, EPFO has redressed more than 1,64,040 grievances and queries through this WhatsApp Helpline Service.

WhatsApp helpline is now functional in all the 138 regional offices of EPFO. Any stakeholders cansimply file grievance or seek guidance on any queries relating to services provided by EPFO, byputting a WhatsApp message on the helpline number of the concerned regional.

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GST Alert: Taxpayers Beware of Two Critical Dates viz. 15.10.2020 & 20.10.2020

CBIC -the Apex Body of Indirect Tax Administration in India has recently issued two very significant Notifications, mandating crucial GST Compliances viz.

(i) Blocking of E-Way Bill (EWB) Generation Facility for Taxpayers with AATO over Rs 5 Cr., after 15th October, 2020 (Compliance Deadline: 15.10.2020)

(ii) Clarification relating to application of sub-rule (4) of rule 36 of the CGST Rules, 2017 for the months of February, 2020 to August, 2020 (Compliance Deadline: 20.10.2020 concerning Filing of GSTR 3B Return for September 2020)

Now, we shall be discussing and analysing the above two important C.

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Practical Case Studies on Tax Payable under the Vivad se Vishwas Scheme, 2020

In view of the outbreak of Novel Corona Virus (Covid-19), the Ministry of Finance has brought in an Ordinance called as “The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020”, on 31.3.2020, in order to provide several relief measures relating to statutory and regulatory compliance matters.

As per Clause No. 5 in Chapter IV of The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020, an amendment in section 3 of the Direct Tax Vivad se Vishwas Act, containing the provisions relating to the specified due dates for payment of tax payable by the declarant under the Vivad se Vishwas scheme, has been made and accordingly t.

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Decoding ‘The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020’

“The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020”, (hereinafter referred to as ‘The Taxation Amendment Bill 2020’, for brevity sake), has been passed in the Lok Sabha on 19.9.2020.

The Taxation Amendment Bill 2020 will replace the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, promulgated in March, 2020.

Interestingly, the language of the introductory provision of clause 3 in the said ‘Taxation Amendment Bill, 2020’, makes one to think that all statutory compliance deadlines falling between 20th March 2020 and 31st December 2020.

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Faceless Assessments: Few Critical Suggestions to Make Them Flawless!!

Even perfection has room for improvement.”- Ty Warner

Faceless Assessments are indeed a revolutionary and path-breaking initiative of the Government, aimed at reforming and overhauling the tax administration system and curbing the undesirable practices prevailing in the system, by eliminating the personal interface between the assessee and the assessing authority.

However, it is not uncommon for any new reform-oriented initiative to face some teething problems during the initial stages of its implementation and practice.

In this Article, an honest and sincere effort has been made to bring out all the criti.

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FAQs on ‘Faceless Assessment Scheme, 2019’

“To be curious is a good thing and to be able to satisfy someone’s curiosity is even better.”

‘Frequently Asked Questions’ (FAQs) on ‘Faceless Assessments’

Our Hon’ble PM Sh. Narendra Modi has launched a new platform for Transparent Taxation for ‘Honouring the Honest Taxpayers’, coining three new terms viz. Seamless, Painless & Faceless, for showcasing the perceived changed nature of the tax administration in India. The thrust of this taxation platform is on Faceless Assessments, Faceless Appeals and Taxpayers’ Charter.

.

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Final Resolve of FY 2019-20 AGM Due Date Impasse. MCA Extends AGM & Annual Accounts Laying Date for around 12 Lakh Indian Companies by Three Months to 31.12.2020, from existing due date of 30.9.2020.

1. Legislative Provisions

By virtue of the provisions of first proviso to section 96(1) of the Companies Act, 2013, every Indian Company is required to hold an Annual General Meeting (AGM), (other than its first AGM), within a period of six months from the close of the financial year. The Audited Annual Financial Statements (Balance Sheet) are also laid down in the AGM of the Company.

Further, the third proviso to section 96(1) of the Companies Act, 2013 provides that the Registrar of Companies may, for any special reason,.

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Practical Case Study on Faceless Assessment u/s 143(3) on the Issue of Accounting for Revenue Recognition & Expenditure Booking in Real Estate Business

The issue of revenue recognition and expenditure booking in real estate business of the assessees is also a common scrutiny criterion under CASS.

There are two acceptable methods of accounting for Revenue Recognition & Expenditure Booking in Real Estate Business:

     (i)  Percentage of Completion Method: Under this method the revenue and expenditure of the real estate project are booked in proportion to the completion of such real estate project.

    (ii)  Completed Contract Method: Under this method the revenu.

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The New Face of Faceless Assessments!!

“Anonymity is the fame of the future.” - John Boyle O’ Reilly

1.1 Faceless assessments: A Paradigm Shift in tax administration!!

Well Yes Friends, FACELESS ASSESSMENTS have become a REALITY now…

Our Hon’ble PM Sh. Narendra Modi has launched a new platform for Transparent Taxation for ‘Honouring the Honest Taxpayers’, coining three new terms viz. Seamless, Painless & Faceless, for showcasing the perceived changed nature of the tax administration in India. The thrust of this taxation platform is on Faceless As.

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TDS u/s 194N Not Applicable if the Cash Withdrawals do not constitute the Income of the Account Holder: Madras High Court Rules in Tirunelveli District Central Co-operative Bank Ltd vs. JCIT (TDS)

In its very recent judgement the Hon'ble Madras High Court have held that, TDS u/s 194N is not applicable if the cash withdrawals do not constitute the income of the account holder.

The principal observation of the Madras High Court in the case of Tirunelveli District Central Co-operative Bank Ltd vs. JCIT (TDS), is being reproduced as under:

"17. A mere look at Section 201 of the Act would indica.

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Liaison Office in India engaged in Preparatory & Auxiliary Business Activities is not a Permanent Establishment (PE) : Supreme Court pronounces Landmark Judgement  dated 24.4.2020, in "Union of India vs UAE Exchange Centre", in Civil Appeal No. 9775 of 2011

In its recent landmark judgement in the case of "Union of India vs UAE Exchange Centre (Civil Appeal No. 9775 of 2011)", the Hon'ble Supreme Court have laid down that Liaison Office of a Non Resident Entity in India, engaged in Preparatory & Auxiliary Business Activities, in accordance with RBI approval, is not to be considered as a Permanent Establishment (PE) of that Non Resident Entity in India, so as to attract taxability in India.

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विघ्नेश्वराय वरदाय सुरप्रियाय लम्बोदराय सकलाय जगद्धितायं। नागाननाय श्रुतियज्ञविभूषिताय गौरीसुताय गणनाथ नमो नमस्ते॥ आप सभी को गणेश चतुर्थी की बहुत-बहुत बधाई। गणपति बाप्पा मोरया!!

TaxAaram Wishes You All a very blissful, joyful & auspicious Ganesh Chaturthi. May Lord Ganesha blesses all of us with health, happiness, properity and peace.

                                    &.

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LTCG on Penny Stocks & Vivad Se Vishwaas Scheme 2020

In addition to the Settlement of Disputes pertaining to OCM/Demonetisation, another major reason for bringing out this Vivad Se Vishwaas Tax Amnesty Scheme as asserted by the learned Revenue Secretary is to ensure amicable resolution of disputes concerning Long Term Capital Gains on Sale of Penny Stocks.

The claim of exemption of long-term capital gains on sale of penny stocks u/s 10(38) of the Act, is one of the most common and regular scrutiny criteria under Computer Assisted Scrutiny selection (CASS), now-a-days.

The Capital Market Regulatory Body SEBI have identified 58 odd scrips of listed companies in which unfair trade practices and price rigging were done. The assessing author.

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Practical Case Study on ‘Faceless e-Assessment’ u/s 143 on the issue of Long Term Capital Gain on Penny Stocks u/s 10(38)

The claim of exemption of long-term capital gains on sale of penny stocks u/s 10(38) of the Act, is one of the most common and regular scrutiny criteria under CASS, now-a-days. The Capital Market Regulatory Body SEBI have identified 108 odd scrips of listed companies in which unfair trade practices and price rigging were done. The assessing authorities taking cognizance of such adverse scrips based on the reports of investigation wing and the purported statements by entry operators concerning the misuse of the mechanism of exemption of long-term capital gain on sale of penny stocks in routing back of the ‘unaccounted/.

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Analysis of AAR Ruling in Tiger Global International Holdings’ Transfer of Flipkart’s Shares

It appears that unsettling the already settled legal position has become the new normal in legal jurisprudence now a days. The case in point is the recent ruling pronounced by AAR in the Group Cases of Tiger Global International Holdings, Mauritius in Re (AAR/04/05/07 of 2019).

In the said ruling, AAR has adjudicated upon the question of whether capital gains arising to the Mauritius based Group Companies of Tiger Global International Holdings, Mauritius, (the applicants), from the sale of shares held by them in M/s Flipkart Pvt Ltd, a Singapore based company (deriving its value substantially from assets located in India) would be.

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Operation Clean Money (OCM)/Demonetisation Cases & Vivad Se Vishwas Scheme 2020

 

Who can forget…?

November 8, 2016

Time: 8 p.m.

"To break the grip of corruption and black money, we have decided that the five hundred rupee and thousand-rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016."

Yes, with these historic words, the Hon’ble PM Modi has announced the demonetisation of Rs. 500 and Rs. 1000 notes, the Specified Banned Notes (SBNs), on the eve of 8.11.2016, in his surprise prime time address to the Nation.

1. Operation Clean Money (.

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“Artificial Intelligence, Machine Learning, Advanced Data Analytics, Complex Algorithms based Automated Allocation System, Automated Examination Tool, Hash Function, Video Telephonyand the list goes on……

No, any science fiction movie or any space science mission are not being talked about here. Only the ‘phraseology’ and ‘terminology’ being used in the recent Official Gazetted Notification No. SO 3264 issued by the Ministry of Finance on 12.9.2019, bringing to fore the ‘New Scheme of E-assessment 2019’, is being referred to here.

‘Welcome to the New Era of ‘Faceless’, ‘Jurisdiction-less&rsquo.