Non deduction of TDS of Transporter II Prescribed Format of Declaration u/s 194(C)(6)

194C: Payments to contractors.

194C. (1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to—

 (i)  one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family;

 (ii)  two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family,

of such sum as income-tax on income comprised therein.

(6) No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, where such contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with his Permanent Account Number, to the person paying or crediting such sum.

(7) The person responsible for paying or crediting any sum to the person referred to in sub-section (6) shall furnish, to the prescribed income-tax authority or the person authorised by it, such particulars, in such form and within such time as may be prescribed.

Format of Declaration Under Section 194C(6) For Non – Deduction of Tax at Source (TDS) to be furnished by the Transporter.. NO TDS in case where such transporter owns ten or less goods carriages at any time during the previous year and furnishes a declaration to such effect, along with PAN.

DECLARATION

I, Name of vehicles owner, Proprietor/ Partner/ Director of M/s Name of the company or firm and address of the company, (hereinafter “The Contractor”) do hereby make the following declaration as required by sub section (6) of section 194C of the Income Tax, 1961 for receiving payments from the payer without deduction of tax deduction at source (TDS).

1. That name of party authorized to make this declaration in the capacity as proprietor/ partner/ Director.

 2. That the contractor is engaged by the payer for hiring or leasing of goods carriage for its business.

 3. That I have not own more than ten goods carriage vehicles as on date.

4. That if the number of goods carriages owned by the contractor exceeds ten at any time during the previous year 2022-23 (01-04-2022 to 31-03-2023), the contractor shall forthwith, in writing intimate the prater of this fact. 5. That the Income Tax permanent account number (PAN) of the contractor is …………………… A photocopy of the same is furnished to the payer along with this declaration.

Place:

Date :                                                                                           Declarant

Download declaration format

Guidelines for consideration of proposals for acceptance of foreign hospitality under the Foreign Contribution (Regulation) Act, 2010 (MHA dated 21 Nov 2022)

The Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010) and the Foreign Contribution (Regulation) Rules, 2011 (FCRR, 2011) came into force with effect from 01.05.2011. The provisions under the Act/Rules relating to ‘foreign hospitality’ and guidelines to be followed for consideration of proposals for acceptance of the same was circulated vide O.M. No. 11/21022/58(97)/2011 -FCRA-1 dated 20.09.2011. However, subsequent amendments in the FCRA, 2010 and FCRR, 2011 have necessitated review of those guidelines. Therefore these guidelines have been reviewed and fresh guidelines are hereby circulated for information and compliance by all concerned. It is requested that wide publicity may be given to these guidelines. In case of any doubt, relevant provisions of the FCRA, 2010, FCRR, 2011 and other statutory notifications may be referred.

Search and seizure action by Income Tax Department in Bihar (Press release 22 Nov 2022)

Income Tax Department initiated a Search & Seizure action on few groups engaged in the business of gold & diamond jewellery and real estate, on 17.11.2022. The searches were carried out at more than 30 premises spread over Patna, Bhagalpur, Dehri-on-Sone, Lucknow and Delhi.

During the course of the search, large number of incriminating documents and digital evidence demonstrating evasion of income have been found & seized.

In one of groups, engaged in the business of gold & diamond jewellery, analysis of seized evidence reveals that this group has invested its unaccounted income in cash purchase of jewellery, renovation of shops and immovable properties. This group has been found to have introduced unaccounted money of over Rs. 12 crore in its books of account, in the garb of advance from customers. Further, upon physical verification of stock, during the search action, unaccounted stock of more than Rs. 12 crore has been found.

In the case of another group engaged in real estate business, evidences of unaccounted cash transactions in purchase of land, construction of buildings and sale of apartments, have been found and seized. The evidence seized in the case of a prominent land broker has further corroborated the above unaccounted transactions. The quantum of such unaccounted cash transactions is more than Rs. 80 crore. The unaccounted income so earned by the key persons of the group has been invested in acquisition of many immovable properties including large parcels of land.

During the search operation, unaccounted cash and jewellery worth more than Rs. 5 crore have been seized. A total of 14 bank lockers have been put under restraint. So far, the search action has led to detection of unaccounted transactions exceeding Rs. 100 crore.

Further investigations are in progress.

AUDIT QUALITY INSPECTION GUIDELINES (Press release 11 Nov 2022)

Audit quality inspections will provide an opportunity for feedback and course correction to the audit firms and at the same time foster a greater mutual understanding of the policies and procedures that underlie audit quality management. The inspections are intended to bring about systemic improvements in overall financial reporting framework in the country. Refer guidelines

India’s First Sovereign Green Bonds Framework(Press Release 09 Nov 2022)

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman approves the final Sovereign Green Bonds framework of India. This approval will further strengthen India’s commitment towards its Nationally Determined Contribution (NDCs) targets, adopted under the Paris Agreement, and help in attracting global and domestic investments in eligible green projects. The proceeds generated from issuance of such bonds will be deployed in Public Sector projects which help in reducing carbon intensity of the economy.

The Framework comes close on the footsteps of India’s commitments under “Panchamrit” as elucidated by the Prime Minister, Shri Narendra Modi, at COP26 at Glasgow in November, 2021. The approval is fulfillment of the announcement in the Union Budget FY 2022-23 by the Union Finance Minister that Sovereign Green Bonds will be issued for mobilising resources for green projects.

Green bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate-suitable projects. By virtue of their indication towards environmental sustainability, green bonds command a relatively lower cost of capital vis-à-vis regular bonds and necessitates credibility and commitments associated with the process of raising bonds.

In the above context, India’s first Sovereign Green Bonds framework was formulated and as per the provisions of the framework, Green Finance Working Committee (GFWC) was constituted to validate key decisions on issuance of Sovereign Green Bonds.

Further, CICERO, an independent and globally renowned Norway-based Second Party Opinion (SPO) provider, was appointed to evaluate India’s green bonds framework and certify alignment of the framework with ICMA’s Green Bond Principles and international best practices. After due deliberation and consideration, CICERO has rated India’s Green Bonds Framework as ‘Medium Green’ with a “Good” governance score.

The report can be downloaded from the following link:

https://dea.gov.in/sites/default/files/Framework%20for%20Sovereign%20Green%20Bonds.pdf

****

Common Income Tax Return Form (Press Release dated 01 Nov 2022)

At present, taxpayers are required to furnish their Income-tax Returns in ITR-1 to ITR-7 depending upon the type of person and nature of income. The current ITRs are in the form of designated forms wherein the taxpayer is mandatorily required to go through all the schedules, irrespective of the fact whether that particular schedule is applicable or not, which increases the time taken to file the ITRs.

The proposed draft ITR takes a relook at the return filing system in tandem with international best practices. It proposes to introduce a common ITR by merging all the existing returns of income except ITR-7. However, the current ITR-1 and ITR-4 will continue. This will give an option to such taxpayers to file the return either in the existing form (ITR-1 or ITR-4), or the proposed common ITR, at their convenience. The scheme of the proposed common ITR is as follows:

1.Basic information (comprising parts A to E), Schedule for computation of total income (Schedule TI), Schedule for computation of tax (schedule TTI), Details of bank accounts, and a schedule for the tax payments (schedule TXP) is applicable for all taxpayers.

2.
The ITR is customized for taxpayers with applicable schedules based on certain questions answered by the taxpayers (wizard questions).

3.
The questions have been designed in such a manner and order that if the answer to any question is ‘no’, the other questions linked to this question will not be shown to the taxpayer.

4
Instructions have been added to assist the filing of the return containing the directions regarding the applicable schedules.

5
The proposed ITR has been designed in such a manner that each row contains one distinct value only. This will simplify the return filing process.

6
The utility for the ITR will be rolled out in such a manner that only applicable fields of the schedule will be visible and wherever necessary, the set of fields will appear more than once.


As evident from the above, the taxpayer will be required to answer questions which apply to it and fill the schedules linked to those questions where the answer has been given as ‘yes’. This will increase ease of compliance. Once the common ITR Form is notified, after taking into account the inputs received from stakeholders, the online utility will be released by the Income-tax Department.

The draft common ITR, based on the above scheme, has been uploaded on http://www.incometaxindia.gov.in for inputs from stakeholders and general public https://incometaxindia.gov.in/news/common-itr.pdf. A sample ITR illustrating step by step approach for filing the ITR and two customised sample ITRs for firm and company have also been provided for illustration. The inputs on the draft ITR form may be sent electronically at the email address dirtpl4@nic.in with a copy to dirtpl1@nic.in, latest by 15th December, 2022.

Face Authentication Technology for submission of Digital Life Certificates for pensioners

A Milestone development to enhance “Ease of Living” of Pensioners through Use of Face Authentication Technology for submission of Digital Life Certificates (Press release 20 Oct 2022)


With a view to enhance Ease of Living of pensioners, Department of Pension and Pensioners’ Portal (DoPPW), engaged with NIC, Ministry of Electronics and Information Technology (Meity) and UIDAI to develop a Face Authentication technology-based system based on UIDAI Aadhaar software for submission of digital life certificate by the Pensioners/Family Pensioners. As per this facility, the identity of a person will be established through Face Authentication technique and it is possible to submit Life Certificate from any Android based smart phone. Dr. Union Minister of State (IC) Ministry of Science and Technology; Minister of State (IC) Ministry of Earth Science; MoS of Prime Minister’s Office and Ministry of Personnel, Public Grievances & Pensions Dr Jitendra Singh launched this facility on 29.11.2021.



Submission of Digital Life Certificates through face authentication technique is a breakthrough technology which has reduced Pensioners’ dependence on external bio-metric devices and has made the process more accessible and affordable, thus ensuring ease of living for all the Pensioners/Family Pensioners. In addition, by using this digital mode for Life Certificate submission, pensioners can now submit their Life Certificates from the comfort of their homes.

The Department has also started a major campaign under Special Campaign for Disposal of Pending Matters (SCDPM 2.0) in which pensioners aged 80 years and above may submit their Life Certificates from 1st October every year to avoid the rush at banks. All Pensioners’ Associations across the country have been educated in the use of the Face Authentication Technology through online as well as physical trainings imparted by the department from time to time, in a phased manner, so as reach out to all Associations. The Pensioners’ Associations assist pensioners by visiting their homes and holding camps for enabling submission of Life Certificates using the Face Authentication Technology. Recently, Shri V Srinivas, Secretary (DoPPW) visited the office of the NF Railway pensioners’ Association at Guwahati on 14th October, 2022 as part of SCDPM 2.0 where he interacted with pensioners and large number of Digital Life Certificates were generated using Face Authentication Technology.



The department of Pension & Pensioners’ Welfare is making endeavors to enhance adoption of Face Authentication as best practices in digital innovation under SCDPM 2.0 to enable pensioners to use this technology at a larger scale.

Steps for opening/ updating the NPS account using Driving License issued in DigiLocker

Central Record Keeping Agencies (CRAs) of PFRDA have become Digi Locker Partner Organizations to provide Subscriber Centric online Services


Building a Pensioned Society enabled through Digi Locker

Press Release Posted Date:- Oct 18, 2022


Central Record Keeping Agencies (CRAs) of Pension Fund Regulatory and Development Authority (PFRDA) have become Digi Locker Partner Organizations to provide Subscriber Centric online Services .

As a tribute to 75 Years of India’s Independence Day Celebration and to commemorate Azadi Ka Amrit Mahotsav, PFRDA is providing following additional features through Digi Locker:

1. Account opening using Driving License (DL) through Digi Locker
2. Updation of existing address using DL through Digi Locker


The facility can be availed by prospective subscribers opening their accounts with Protean CRA and existing subscribers of Protean CRA for updating their address.

Digi Locker is a key initiative under Digital India, the Government of India flagship program with a vision to transform India into a digitally empowered society and a pensioned Society. Digi Locker embraces Digital India’s vision areas of providing the Citizens a shareable private digital space with a consent framework and making all documents/certificates digitally available and accessible at ease. The number of Registered Users of Digi Locker are nearly 13 cr and 5.60 billion issued documents under various Categories viz Central/ State Governments, Banking & Insurance, Education, Health etc.

Notification issued for MSME enterprises to continue to avail of all non-tax benefits of the category it was in before the re-classification, for a period of three years from the date of such upward change (Press release 19 Oct 2022)

The Ministry of MSME vide S.O. 4926 (E) dated 18.10.2022 has notified that in case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of the category it was in before the re-classification, for a period of three years from the date of such upward change.

This decision has been taken after due deliberations with MSME stakeholders and is in line with the Aatma Nirbhar Bharat Abhiyan. The Ministry of MSME, Government of India, has allowed those registered MSMEs to continue to avail of non-tax benefits for three years, instead of one year, in case of an upward graduation in their category and consequent reclassification. Non-tax benefits include benefits of various schemes of the Government, including Public Procurement Policy, Delayed Payments, etc.

IBBI amends Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 and Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (MCA Press Release 20 Sept 2022)

The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2022 (‘Amendment Liquidation Regulations’) and Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2022 (‘Amendment Voluntary Liquidation Regulations’) on 16th September, 2022.

To enable better participation of stakeholders and streamline the liquidation process to reduce delays and realise better value, the amendment in Liquidation Regulations make the following major modifications:

  • The Committee of Creditors (CoC) constituted during Corporate Insolvency Resolution Process (CIRP) shall function as Stakeholders Consultation Committee (SCC) in the first 60 days. After adjudication of claims and within 60 days of initiation of process, the SCC shall be reconstituted based upon admitted claims.
  • The liquidator has been mandated to conduct the meetings of SCC in a structured and time bound manner with better participation of stakeholders.
  • The scope of mandatory consultation by liquidator, with SCC has been enlarged. Now, SCC may even propose replacement of liquidator to the Adjudicating Authority (AA) and fix the fees of liquidator, if the CoC did not fix the same during CIRP.
  • If any claim is not filed during liquidation process, then the amount of claim collated during CIRP shall be verified by the liquidator.
  • Wherever the CoC decides that the process of compromise or arrangement may be explored during liquidation process, the liquidator shall file application only in such cases before Adjudicating Authority for considering the proposal of compromise or arrangement, if any, within thirty days of the order of liquidation.
  • Specific event-based timelines have been stipulated for auction process.
  • Before filing of an application for dissolution or closure of the process, SCC shall advice the liquidator, the manner in which proceedings in respect of avoidance transactions or fraudulent or wrongful trading, shall be pursued after closure of liquidation proceedings.

The Amendment Liquidation Regulations and Amendment Voluntary Liquidation Regulations further lay down the manner and period of retention of records relating to liquidation and voluntary liquidation of a corporate debtor or corporate person, respectively.

The Amendment Liquidation Regulations and Amendment Voluntary Liquidation Regulations are effective from 16th September, 2022. These are available at http://www.mca.gov.in and www.ibbi.gov.in.