Circular – Extension of deadline for filing form 10A and form 10AB
Under the extant Income Tax Law, the registration procedure for 12A and 80G is quite intricate and time limit sensitive. If a trust or institute delays in filing the registration application for 12A or 80G or if there is an inadvertent error in selection of relevant clause, there is no provision for condonation of delay or rectification of such application. Such applications are straight away rejected by the Commissioner of Income Tax (Exemption).
In order to address the challenges faced by the trust or institution with respect to present intricacies of 80G and 12A registration, the Central Board of Direct Taxes (CBDT) has issued Circular No. 07/2024 dated 25.04.2024, extending the deadline for filing –
- Form 10A (required to be filed by existing trust for migration into new regime of trust taxation)
- Form 10AB (primarily for conversion of provisional registration into final registration under the Income Tax Law).
The extended due date is 30-06-2024.
The CBDT has provided the following relief:
- The existing trusts or institution failing to file Form 10A for AY 2022-23 within the extended deadline, and subsequently applying for provisional registration as a new entity and receiving Form 10AC, can now surrender Form 10AC and apply for registration for AY 2022-23 as an existing entity, using Form 10A until 30th June 2024.
- Trusts or institutions whose applications for re-registration were rejected solely due to late filing or filing under the wrong section code, may also submit fresh applications using Form 10AB within the extended deadline of 30th June, 2024
- Where an application in Form 10AB is filed on or before the issuance of aforesaid CBDT Circular, and where the Commissioner of Income Tax (Exemption) has not passed an order before the issuance of this Circular, the pending application in Form 10AB may be treated as a valid application.
Indirect Tax Bulletins – Budget 2022
- Now, we can transfer cash balance from one head to another within the same registration or as CGST and IGST to the cash ledger of a distinct person. Here, it is important to note that a ‘distinct person’ is a person with different GSTINs but bearing the same PAN. This shall provide flexibility to taxpayers with multiple GSTINs as they can now transfer excess cash balance from one state to another.
- Now an assessee can claim Input Tax Credit (ITC) till 30th November of the subsequent financial year instead of 30th September
- Interest will be levied only if ITC is wrongly availed and utilised. Earlier, the interest was levied even if ITC is wrongly availed irrespective of it is utilised or not. This amendment has taken place retrospectively with effect from 01st July, 2017
- Any rectification of error in GSTR 1 or GSTR 3B is now permitted till 30th November of next financial year (currently it is allowed till 30th September)
- Credit notes in respect of supply made in a financial year can be issued by 30th November of next financial year (currently it is allowed till 30th September)
- Registration of Composition tax payer can be cancelled Suo-moto, if GSTR 4 return have not filed beyond 3 months from the due date.
- The due date for filing of GSTR 5 return by Non- Resident taxable person is changes to 13th of the next month (currently it is 20th of the next month)
- Now the assessee can claim the tax refund on inward supplies of goods or services upto 2 years from the last day of the quarter in which said supply was received. (Currently the time limit is 6 months from the end of the quarter)
Important Amendment in TDS and TCS
Finance Bill 2021 has introduced a new requirement with effect from 1st July 2021 in respect of Tax Deducted at Source (TDS) and Tax Collection at Source (TCS).
A. It requires that if the TDS or TCS in respect of payment to any person is more than Rs 50000 in a year, the TDS or TCS has to be higher of the following, if the person receiving the payment has not filed his / its Income Tax Return for last 2 years (and where the time limit for filing Income Tax Returns has expired):
- Twice the normal rate
- 5%
B. In case the person receiving the payment does not furnish PAN, the rate of TDS / TCS applicable is 20%.
The above is not applicable to:
- TDS on Salaries, employee payments, Lottery crossword, horse racing, investment in securitization trust, Payment of certain amounts in cash, etc.
- To a non-resident who does not have a permanent establishment in India.
This is a general note in respect of the provisions of the Finance Bill 2021. We would suggest professional advice be taken before acting on this.
MCA NOTIFIES MANDATORY DEMATERIALIZATION OF SECURITIES BY PRIVATE COMPANIES :
As per the existing corporate law in India, the unlisted public companies are required to issue its
securities only in a dematerialized form. For this purpose, separate set of rules for issuing securities
in a dematerialized form were prescribed. Erstwhile, these dematerialization rules were not
applicable to private companies.
With effect from 27th October 2023, the Ministry of Corporate Affairs vide notification no. GSR 802(E)
has extended the dematerialization provisions to private companies as well (except small companies
and government companies), hereinafter referred to as the concerned private companies. The
snippets of the amended provisions are as under:
1. The provisions of amended dematerialization rule shall apply to those private companies
who are not small company as per the audited financial statements as on 31 st March 2023
and who are not government companies.
2. All concerned private companies shall –
a. issue its securities only in dematerialized form; and
b. facilitate dematerialization of its existing securities
3. The concerned private companies are required to abide by the amended rule within 18
months from 01st April 2023 i.e., they are required to oblige with the amended provisions by
30th September 2024.
4. Every private company making an offer for the issuance of any securities, buyback of
securities or issuance of bonus shares or rights offer after the specified date, must ensure
that the entire holding of securities of its promoters, directors, and KMP has been
dematerialized before making such an offer.
5. Every holder of securities of the concerned private company that intends to transfer
securities on or after 18 months from of 01 st April 2023 must get such securities
dematerialized before such transfer.
6. Every holder of securities of concerned private company that subscribes to any securities of
the concerned private company whether by way of private placement or bonus shares or
rights offer on or after 18 months from 01 st April 2023, must ensure that all his securities are
held in dematerialized form before making such subscription.
