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AUDIT LOG/TRAIL

According to The Ministry of Company Affairs (MCA) notification dated March 24, 2021 (Companies (Accounts) Amendment Rules, 2021), every company that uses accounting software to maintain its books of account shall use only Accounting Software that has a feature of recording an –

Audit Trail of each and every transaction,

Creating an edit log of each change made in books of account along with the date when such changes were made.

Ensuring that the audit trail cannot be disabled.

The MCA has later announced that the above amendments will take effect on April 1, 2023, which suggests that accounting software used by businesses will have to comply with the Accounts Rules beginning in the financial year 2023-24.

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Highlights of Union Budget 2022-23 under Direct Taxes:

  • Rebate limit of Personal Income Tax to be increased to RS. 7lakh from the current RS. 5lakh in the new tax regime. Thus, persons in the new tax regime, with income up to RS. 7lakh to not pay any tax.
  • Tax structure in new personal income tax regime, introduced in 2020 with six income slabs, to change by reducing the number of slabs to five and increasing the tax exemption limit to RS. 3lakh. Change to provide major relief to all tax payers in the new regime.
  • New Tax Rates  :       
Total Income (RS)Rate(percent)
Up to 3,00,000Nil
From 3,00,001 to 6,00,0005
From 6,00,001 to 9,00,00010
From 9,00,001 to 12,00,00015
From 12,00,001 to 15,00,00020
Above 15,00,00030
  • Proposal to extend the benefit of standard deduction of RS. 50,000 to salaried individual, and deduction from family pension up to RS. 15,000, in the new tax regime.
  • Highest surcharge rate to reduce from 37 per cent to 25 per cent in the new tax regime. This to further result in reduction of the maximum personal income tax rate to 39 per cent.
  • The limit for tax exemption on leave encashment on retirement of non-government salaried employees to increase to RS. 25lakh.
  • The new income tax regime to be made the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime.
  • Enhanced limits for micro enterprises and certain professionals for availing the benefit of presumptive taxation proposed. Increased limit to apply only in case the amount or aggregate of the amounts received during the year, in cash, does not exceed five per cent of the total gross receipts/turnover.
  • Provision of a higher limit of RS. 2lakh per member for cash deposits to and loans in cash by Primary Agricultural Co-operative Societies(PACS) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs).
  • A higher limit of RS. 3crore for TDS on cash withdrawal to be provided to co-operative societies.
  • Date of incorporation for income tax benefits to start-ups to be extended from 31.03.23 to 31.3.24.
  • Deduction from capital gains on investment in residential house under sections 54 and 54F to be capped at RS. 10crore for better targeting of tax concessions and exemptions.
  • Proposal to limit income tax exemption from proceeds of insurance policies with very high value. Where aggregate of premium for life
  • insurance policies (other than ULIP) issued on or after 1st April, 2023 is above RS. 5lakh, income from only those policies with aggregate premium up to RS. 5lakh shall be exempt.
  • Minimum threshold of RS. 10,000/- for TDS to be removed and taxability relating to online gaming to be clarified. Proposal to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of the financial year.
  • TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases.
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All about EPCG Scheme

EPCG Scheme was launched in the 1990s to facilitate the import of capital goods with the aim to enhance the production quality of goods and services, thereby, increasing India’s international manufacturing competitiveness. This is a scheme relating to import of capital goods at Zero duty. The benefit of zero duty is subject to fulfillment of export obligations and other conditions.

THE OBJECTIVE

To facilitate import of capital goods for producing quality goods and services to enlarge India’s Export competitiveness.

SCHEMES

  1. Import capital goods by enjoying the zero duty benefit first and then fulfil the export obligation conditions within the stipulated period. This is called Pre-Export EPCG
  2. Post Export EPCG: Under this, capital goods are imported first by paying import duty, then remission (refund)of import duties is claimed after fulfilling export obligation.
  3. EPCG Scheme for capital goods purchased in India.

ELIGIBILITIES

  • Capital goods’ has been defined under FTP.
  • Such capital goods eligible must be used as per the eligibility conditions.

CONDITIONS

  • The scheme is subject to actual user condition and a certificate of installation in own premises shall be produced from Excise Dept./ other authorities.
  • Import must be made within 18 months of date of issue of authorization and no extension is granted.
  • Even the capital goods under the scheme are not transferable till the Export obligation is fulfilled.
  • The importer has to achieve the export turnover of 6 times the amount of import duty saved within 6 years of authorization.

Capital Goods defined: ‘ Means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services,including those required for replacement, modernization, technological upgradation or expansion. It includes packaging machinery and equipment , refrigeration equipment, power generating sets, machine tools, equipments and instruments for testing, research and development, quality and pollution control Capital goods may be for use in Manufacturing, Mining, Agriculture, Aqua culture, Animal husbandry, Floriculture, Horticulture, Pisciculture, poultry, sericulture and viticulture as well as for use in services sector.

BENEFITS FROM EPCG SCHEME

  • EPCG is intended for promoting exports and the Indian Government with the help of this scheme offers incentives and financial support to the exporters.
  • Heavy exporters could benefit from this provision. However, it is not advisable to go ahead with this scheme for those who don’t expect to manufacture in quantity or expect to sell the produce entirely within the country, as it could become almost impossible to fulfil the obligations set under this scheme.

What are other Schemes to Promote Export?

Merchandise Exports from India Scheme

MEIS was introduced in the Foreign Trade Policy (FTP) 2015-20, under MEIS, the government provides duty benefits depending on product and country.

Service Exports from India Scheme

It was introduced in April 2015 for 5 Years under the Foreign Trade Policy of India 2015-2020. Earlier, this Scheme was named as Served from India Scheme (SFIS Scheme) for Financial Year 2009-2014.

DOCUMENTS REQUIRED FOR EPCG LICENSE

Director General of Foreign Trade (DGFT), The licensing authority is the issuing authority. The following documents must be self-certified and attached to the DGFT portal:

  • GST Registration
  • Chartered Accountant Self-Certified Copy and Original Certificate of CA needs to be attached.
  • IEC (Import Export Code)
  • Brochure
  • Digital Signature
  • Excise Registration
  • Proforma Invoice
  • Chartered Engineer Self-Certified Copy and Original Certificate
  • PAN Card
  • Registration Cum Membership Card
  • Registration certificate from Tourism Department

How to apply for an EPCG License online?

The Applicant should submit an online application to DGFT to get EPCG License.

Please find steps below:

  • Visit the DGFT Official Website- www.dgft.gov.in
  • Login with DSC -> Select Services -> Online E-com Application
  • Click on EPCG (0%)
  • Fill all the details and upload the necessary documents.

Kindly note that the following important points to be noted to make sure the documents are prepared error-free:

  • IEC/RCMC should show the applicant as a manufacturer exporter.
  • IEC/RCMC should have the address where the machine is proposed to be installed.
  • MSME/SSI/Manufacturing proof should have the export products listed in the EPCG License.
  • After filling all the details, submit the application.
  • After a successful application, DGFT will issue the EPCG License

CAPITAL GOODS NOT ELIGIBLE UNDER THE SCHEME 

1. Second-hand goods

2. Capital goods including captive power plants and generator sets

For

(i) Export of electrical energy
(ii) Supply of electrical energy under deemed export
(iii) Use of energy in own unit
(iv) Supply/ export of electricity transmission services

What are the export turnovers included to count Export obligation?

  1. Goods exported under AA, DFIA, DBK/ Reward schemes.
  2. Turnover of physical exports and supplies under specified deemed exports (say EOU/STP/EHTP etc.)
  3. Forex received for R&D services and royalty payments
  4. INR (Rupees) received for specified services.

The authorisation holders under the EPCG scheme need to file a bond with or without bank guarantee with the customs before the import of capital goods. The bank guarantee should be equivalent to 100% of the differential duty (for merchant exporters) and 25% (for manufacturer exporters) to fulfil the specified export obligation. The bank guarantee will also secure the interest of the revenue.

VALIDITY PERIODS OF AUTHORIZATION

i) Export Authorization
ii) Advance Authorization
iii) DFIA and replenishment authorization for gems and jewellery		12 months
Export of SCOMET items24 months
Import authorization for restricted items18 months
EPCG18 months
Deemed exports12 months or coterminous with contracted duration of project authorization whichever is more

PENALTY IN CASE OF NON-COMPLIANCE

In cases where the licence holder under the EPCG scheme fails to fulfill the stipulated export obligation then the licensee shall be liable to pay the customs dues along with 15% interest per annum to the customs authority.

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Businesses will be able to claim pre-GST tax credits from October 1

The businesses that could not claim tax credits for taxes paid during the pre-goods and services tax (GST) era may soon get an opportunity to do so. The government, from October 1, is likely open a special window for businesses to file their claims, according to a report by Mint.

According to the report, the credits are expected to be worth Rs 400 crore. “Based on the information that we have, the amount that is estimated is around Rs 400 crore. We are waiting for the window to open so that people can start filing claims,” a person aware of the matter told Mint.

When the new tax regime under GST was introduced in 2017, several businesses could not file their tax claims due to a lack of clarity on the rules. The businesses also reportedly faced technical glitches. These have now been resolved, Mint stated.

The window for claiming the credits open on October 1 and close on December 1. The Supreme Court (SC) had earlier asked the government to open the window on September 1 but it granted an extra four weeks to prepare the IT systems to avoid technical glitches.

When the new tax regime under GST was introduced in 2017, several businesses could not file their tax claims due to a lack of clarity on the rules. The businesses also reportedly faced technical glitches. These have now been resolved, Mint stated.

The window for claiming the credits open on October 1 and close on December 1. The Supreme Court (SC) had earlier asked the government to open the window on September 1 but it granted an extra four weeks to prepare the IT systems to avoid technical glitches.

It had also directed the government to keep in mind the high court judgements around transitional GST credit. Experts have said that the GSTN will accept the claims of tax credits, and the eligibility of the credit will be checked in the courts.

The taxpayers can either file fresh claims or revise their earlier forms on the GST portal. Also, they will be required to submit self-certified copies of the forms within seven days of filing the claim online.

On September 9, the Central Board of Indirect Taxes and Customs (CBIC) issued guidelines to clarify the procedure and timeline of the credit claims, to the officials.

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Companies Act, 2013 Amendment

In exercise of the powers conferred under sub-sections (1) and (3) of section 128, sub-section (3) of section 129, section 133, section 134, sub-section (4) of section 135, sub-section (1) of section 136, section 137 and section 138 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely :-

1. Short title and commencement –

 (1) These rules may be called the Companies (Accounts) Fourth Amendment Rules, 2022.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Accounts) Rules, 2014, in rule 3 –

(i) in sub-rule (1), for the words “accessible in India”, the words “accessible in India, at all times,” shall be substituted;

 (ii) in sub-rule (5), in the proviso, for the words “periodic basis”, the words “daily basis” shall be substituted;

 (iii) in sub-rule (6), after clause (d), the following clause shall be inserted, namely :-

“(e) where the service provider is located outside India, the name and address of the person in control of the books of account and other books and papers in India.”.

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No to Cash Transactions- The Income Tax Way

“Cash is King” has been the world known phrase for centuries. Cash is also considered as the biggest source of parallel economy, Money laundering, tax evasion, & criminal or illegal activities. There are various provisions which are enacted in the Income Tax Act-1961 just to say “No Cash Transactions”. Let us have a look at the income tax law which prohibits the transactions in cash as under:
  1. Business Expenses exceeding Rs. 10,000/- in Cash:Section 40A(3) requires every expenditure exceeding Rs. 10,000/- in a day to be paid by any mode other than cash. If the amount exceeding Rs. 10,000/- is incurred in cash then no deduction towards such expenditure is available against business income.
  2. Purchase of Assets for Business in Cash:Asset purchased for business purpose is eligible for depreciation. Section 43(1) provides the definition of the term “actual cost” for the purpose of claiming depreciation on it. The 2nd proviso to the said section specifies that if any expenditure for the acquisition of an asset is done in cash exceeding Rs. 10,000/- in a day then such expenditure shall not be considered as part of the actual cost. It means that the amount paid in cash will neither form the part of the cost of the assets nor will be eligible for depreciation.
  3. Higher Rate of Profit in respect of Cash Turnover:Section 44AD provides immunity to eligible business from maintenance of books of accounts if profit is offered for taxation on presumptive basis at minimum of 8% of the total turnover/gross receipts. However, the rate may be taken as 6% (as against 8% for cash sale/receipt) if the amount is received by digital mode.
  4. Acceptance of Loan (or advance against sale of property) exceeding Rs. 20,000/- not allowed in Cash:Section 269SS prohibits a person from taking or accepting from any person any loan or deposits equal to Rs. 20,000/- or more in cash. Even acceptance of advance against sale of the property of Rs. 20,000/- or more in cash is prohibited.
  5. Repayment of Loan (or advance against sale of property) exceeding Rs. 20,000/- not allowed in Cash:Section 269T prohibits any person from repaying any loan, deposit or any advance against immoveable property in cash if the amount is Rs. 20,000/- or more.
  6. Donation for deduction U/s 80G:Deduction u/s Section 80G towards donation is not available if the payment exceeding Rs. 2,000/- is done in cash. Further, section 13A of the Act requires all political parties to receive donations exceeding Rs. 2,000/- through digital mode so as to be able to claim exemption for such donation.
  7. Deduction for specified Businesses:Section 35AD provides that the term ‘any expenditure of capital nature’ shall not include any expenditure in respect of which the taxpayers makes payment (or an aggregate of payments) exceeding Rs. 10,000/- is done in cash.
  8. No deduction towards mediclaim policy for payment in Cash:
    Section 80D provides for deduction towards mediclaim policy. Deduction is admissible only if the payment is done in any mode other than cash.
  9. Acceptance in cash of Rs. 2 Lakh prohibited:Section 269ST prohibits acceptance of Cash exceeding Rs. 2,00,000/- (a) in aggregate from a person in a day; or (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person.
  10. Benefit of Stamp Duty Valuation as on the date of Agreement if accepted in cash:Section 43CA provides that where the date of agreement fixing the value of consideration for the transfer of the property and the date of registration of such property is different, then the stamp duty value on the date of the agreement can be taken as full value of consideration if the amount of consideration or a part thereof has been received by way of digital mode on or before the date of transfer. Similar provision is there in section 50C which provides for capital gain taxation on sale of capital assets and section 56 which provides for taxation of the amount if the property purchased is below the fair market value/stamp duty value. In short, the benefit of adopting stamp duty valuation as on the date of agreement shall not be available if the amount is transacted in cash.
  11. TDS on cash Withdrawals:
    Section 194N provides for Tax Deduction at Source (TDS) @ 2% on cash withdrawals from bank or post office in excess of Rs. 1 Crore in aggregate in a year. Further, if the person withdrawing cash is a non filer of income tax return then the threshold for non deduction shall be @ 2% for withdrawals from Rs. 20 Lakh to Rs. 1 Cr and @5% on amounts exceeding Rs. 1 Cr.
  12. Mandatory facility for acceptance by Digital Mode:
    Section 269SU makes it mandatory for the person with turnover exceeding Rs. 50 Crore to provide facility for accepting the payment through prescribed electronic mode in addition to payment option for other electronic mode of payment.
Conclusion:
Cashless payment has become one of the most preferred options now. Having transactions through digital mode has various advantages as well. It still remains strong evidence in court of law for all the legal purposes. The time has come to go digital and say “No cash please”.

Vipul Sheladiya

Sheladiya & Jyani

Chartered Accountants

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Ease of Doing Business: Quick registration of companies in India

Ease of Doing Business

The Government of India has undertaken a number of steps to ensure the quick registration of companies in India, which are as under: 
i. A single integrated new web form called SPICe+ along with AGILE PRO-S has been deployed. This form provides eleven services related to ‘starting a business’ namely (i) Name Reservation, (ii) Incorporation, (iii) Permanent Account Number (PAN), (iv) Tax Deduction Account Number (TAN), (v) Director Identification Number (DIN), (vi) Employees’ Provident Fund Organisation (EPFO) Registration, (vii) Employees’ State Insurance Corporation (ESIC) Registration, (viii) Goods and Services Tax (GST) number, (ix) Bank Account Number, (x) Profession Tax Registration (Mumbai, Kolkata and Karnataka), (xi)  Delhi Shops and Establishment Registration. 
ii. Zero fee is now charged for incorporation of all companies with authorized capital up to Rs. 15 lakh or with up to 20 members where no share capital is applicable. 
iii. A Central Registration Centre (CRC) has been set up for name reservation and incorporation of companies & Limited Liability Partnership (LLP) within 1 day. 
iv. The LLP Incorporation Form called FiLLiP has also been integrated with Central Board of Direct Taxes (CBDT) to provide PAN/TAN at the time of Incorporation of LLP itself. 
(v) The Companies (Incorporation) Third Amendment Rules, 2020, now provide for extension of 
reservation of name through a simple web service available at www.mca.gov.in. 
(vi) Provisions with regard to incorporation and functioning of One-Person Companies (OPCs) have been revised so as to incentivize incorporation of OPCs. Now, Non-Resident Indians (NRIs) are also allowed to incorporate OPCs. OPCs are now allowed to convert into private or public companies at any point of time. The restrictions with regard to maximum amount of paid-up  capital and turnover for OPCs have also been removed. 
This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Lok Sabha today.

Vipul Sheladiya

Sheladiya & Jyani

Chartered Accountants

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The Top 50 Transactions getting reflected in New Annual Information Statement (AIS)

The Income Tax Department has rolled-out of a new statement namely Annual Information Statement (AIS) as against erstwhile Form No. 26AS.

The AIS which would provide almost all details about your financial transactions during the year. So far, the Income Tax Department has been issuing Form 26AS to provide information related to taxable income and tax deducted at source (TDS), which will now be replaced with the Annual Information Statement (AIS). The new AIS statement will provide comprehensive information of the taxpayer and will be significantly useful while preparing the tax return. The information will be provided in AIS after removing duplicate information and taxpayers can download such information in PDF, JSON, CSV formats.

A taxpayer can submit online feedback if the information is erroneous or refers to another person/year, or is duplicate Here’s the list of Top 50 Transactions to be reported in the New Annual Information Statement.

1.Salary

Employer submits detailed breakup of salary, perquisites, profits in lieu of salary etc paid to the employee in Annexure II of the TDS statement (24Q) of the last quarter. This information is also provided by the employer to the employee (taxpayer) in Part B (Annexure) of Form 16. AIS displays all the financial transactions such as, salary income, dividend income, interest income from saving/fixed deposits, sale and purchase of securities, etc. With the help of all such financial information, it would be easy for a taxpayer to report the correct information in the income tax return

2. Rent Received

Tenants responsible for paying rent are liable to deduct tax at source on payment of rent. Deductor reports details of amount paid/credited, date of payment, details of Tax deduction made etc. in Form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Tenant (Individual/HUF) paying a rent of more than 50,000 is liable to deduct tax while making payment to the landlord. Tenant reports details of rent paid amount paid/credited, property details, date of payment and tax deduction details etc. pertaining to rent paid in Form26QC.

3. Dividends

Dividend paid/declared by all companies (reporting entity) is reported under Statement of Financial Transactions (SFT). Company paying/distributing dividend is liable to deduct TDS from the amount paid subject to the threshold applicable in the act and report through form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

4. Interest from savings bank

Interest paid/credited/accrued on saving account is reported under Statement of Financial Transactions (SFT).

5. Interest from deposit

Bank/deductor at the time paying/crediting interest on deposits is liable to deduct tax from deposit holder paid subject to the threshold applicable in the act. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

6. Interest from others

Interest paid/credited/accrued on others (other than savings account, term deposit, recurring deposit) is reported under Statement of Financial Transactions (SFT).  Bank/deductor at the time paying/crediting other interest (interest on securities) is liable to deduct tax from deposit holder paid subject to the threshold applicable in the act. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A

7. Interest from income tax refund

Interest received on Income Tax Refund in the financial year is liable to be taxed as Income from other sources.

8. Rent on plant & machinery

Tenant paying rent is liable to deduct tax at applicable rate as per the Act from rent paid. Details of rent on Plant & Machinery is reported by the deductor in TDS form 26Q. Tenant furnishes the details of rent paid on quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

9. Winnings from lottery or crossword puzzle

Payer is liable to deduct tax at applicable rate as per act from winnings from lottery or crossword puzzle etc. Information about winnings is reported by payer in TDS form 26Q. Information is reported on quarterly basis. Income is taxable at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

10. Winnings from horse race

Payer is liable to deduct tax at applicable rate as per act from winnings from Horse race. Information about winnings is reported by payer in TDS form 26Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

11. Receipt of accumulated balance of PF from employer u/s 111

Employer/recognised provided fund reports information about accumulated balance due to an employee in form 26Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

12. Interest from infrastructure debt fund

Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

13. Interest from specified company by a non-resident u/s 115A(1)(a)(iiaa)

Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

14. Interest on bonds and government securities

Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

15. Income in respect of units of non-resident u/s 115A(1)(a)(iiab)

Information about income in respect of units of Non Resident is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

16. Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b)

Information about income and long-term capital gain from units payable to an off shore fund is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

17. Income and long-term capital gain from foreign currency bonds or shares of Indian companies u/s 115AC

Information about income and long-term capital gain from foreign currency bonds or shares of Indian companies is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

18. Income of foreign institutional investors from securities u/s 115AD(1)(i)

Information about income of foreign institutional investors from securities is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

19. Insurance commission

Information about insurance commission received is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

20. Receipts from life insurance policy

Receipts from life insurance policy are exempt under section 10(10D) subject to conditions specified therein. If such conditions are not met, the receipts become taxable and tax is also deducted u/s 194DA. The information is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

21. Withdrawal of deposits under national savings scheme

Withdrawals from NSS are taxable. Tax is also deducted on such withdrawals and reported in Form 26Q by the payer on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

22. Receipt of commission etc. on sale of lottery tickets

Commission on lottery business is subject to tax deduction under section 194G. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A

23. Income from investment in securitization trust

Income from investment made in securitization trust is subject to tax deduction. The payer reports such information in Form 27Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

24. Income on account of repurchase of units by MF/UTI

Receipt of income on account of repurchase of units by MF/UTI is subject to tax deduction under section 194F. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

25. Interest or dividend or other sums payable to government

Income from interest or dividend or other sums payable is not subject to tax deduction. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A

26. Payment to non-resident sportsmen or sports association u/s 115BBA

Information pertaining to amount paid to non-resident sportsmen or sports association is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

27.  Sale of land or building

Sales consideration of immovable property transferred is reported under Statement of Financial Transactions (SFT). The information will be shown in AIS of all sellers to enable submission of feedback. Sale of immovable property is also reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person. Information related to receipts under specified agreement is reported by person making payment for specified agreement entered into. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

28. Receipts from transfer of immovable property

Information related to receipts from transfer of immovable property is reported by buyer of property in Form 26QB. This information is provided by the deductor to the deductee (taxpayer) in Form 16B.

29. Sale of vehicle

Sale of motor vehicle is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

30. Sale of securities and units of mutual fund

In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return.

31. Off market debit transactions

In the SFT reporting of depository transactions, the depository reports details of off market debit transactions. The value of transaction is computed on the basis of end of day price of the security. In case, the consideration is available, the same is also shown.

32. Off market credit transactions

In the SFT reporting of depository transactions, the depository reports details of off market credit transactions. The value of transaction is computed on the basis of end of day price

33. Business receipts

Information pertaining to amount paid to contractor is reported by contractee in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information pertaining to amount paid to the service provider is reported by recipient of services in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A

34. Business expenses

Information pertaining to purchase of alcoholic liquor is reported by tax collector in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 27D.

35.  Rent payments

Information is reported by person making payment in form 26QC. This information is provided by the deductor to the taxpayer in Form 16C

36. Miscellaneous payments

Information is reported by person making payment in form 26QD. This information is provided by the deductor to the taxpayer in Form 16D. Purchase of bank drafts or pay orders may be reported in Form 61 if PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person

37. Cash deposits

Information pertaining to cash deposits in an account other than current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to cash deposits in current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback.

38. Cash withdrawals

Information pertaining to Cash withdrawals from current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Sometimes, cash withdrawals from accounts other than current account are reported by the Reporting Entity in SFT-004. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to Cash withdrawals is reported by reporting entity through TDS statement 26Q. This information is provided by the deductor to the taxpayer in Form 16A.

39. Cash payments

Information pertaining to Cash payments for goods and services is reported by reporting entity in form 61A. Information pertaining to Purchase of bank drafts or pay orders or banker’s cheque in cash is reported by reporting entity in form 61A. Information pertaining to Purchase of prepaid instruments in cash is reported by reporting entity in form 61A.

40. Outward foreign remittance/purchase of foreign currency

Information of outward foreign remittance is reported by authorised dealer in form 15CC. Information about Remittance under LRS for educational loan taken from financial institutions mentioned in section 80E (Third proviso to Section 206C(1G)) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.Information about Remittance under LRS for purpose other than for purchase of overseas tour package or for educational loan taken from financial institution (Section 206C(1G(a))) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.

41. Receipt of foreign remittance

Information relating to payment of royalty or fees for technical services etc., paid to non- residents is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information is reported by authorised dealer in form 15CC for foreign remittances made by remitter PAN. Information of receipt of foreign remittance by a remittee is reported by authorised dealer in form 15CC.

42. Foreign travel

Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment in connection with travel to any foreign country may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

43. Purchase of immovable property

Information relating to immovable property is reported by the Property Registrar through SFT. The information will be shown in AIS of all buyers to enable submission of feedback. Buyer at the time of making payment towards purchase of property is liable to deduct tax from the amount paid to the seller subject to the threshold applicable. This information is reported in form 26QB. Seller of property reports the details of property buyer in schedule CG of ITR. Payment for purchase of immovable property may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

44. Purchase of vehicle

Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment for purchase of motor vehicle may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

45. Purchase of time deposits

Information relating to Purchase of Time deposits is reported by reporting entity (such as the bank) in the Statement of Financial Transaction (SFT). Information pertaining to investment in Time deposit is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

46. Purchase of securities and units of mutual funds

Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Purchase of shares (including share application money). Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Information is reported by reporting entity (such as mutual fund companies) in the Statement of Financial Transaction (SFT).

47. Credit/Debit card

Information pertaining to application for issuance of credit/debit card is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

48. Balance in account

Details of bank account other than saving and time deposits opened during the year , as reported in Form 61. Bank account with balance exceeding 50,000 at the closing of Financial year, as reported in Form 61.

49. Income distributed by business trust

Information relating to income from units of a business trust is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate.

50. Income distributed by investment fund

This information is reported by the deductor in Form 26Q on a quarterly basis

So now incometax department knows more about you & you have to be very careful in next ITR filing plus proper records to be maintained by all for above list of items as anytime department will ask about it.

Vipul Sheladiya

Sheladiya & Jyani

Chartered Accountants

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