Monday - Saturday
10:00am - 07:00pm
Sunday Closed
L-2A, Lower Ground
Hauz Khas Enclave,
New Delhi - 110016
(011) 2696 2981 | 2656 2790
+91 9871713073
info@gkcm.co.in

Updates

1. VIVAD SE VISHWAS SCHEME IN INCOME TAX - No interest & penalty if tax paid by 31st March 2020. Some additional amt. By 30th June.
2. India is now Fifth largest economy in the world.
3. GDP nominal growth has been estimated at 10%.
4. A fiscal deficit of 3.8% has been estimated.
5. The goal is double farmers income by 2022. Finance Minister lists 16 point action plan to boost farmer’s income.
6. GST resulted in ₹ 1 Lakh crore gains to consumers, removed inspector raj and helped transport sector.
7. Comprehensive measures for 100 water-stressed districts being proposed.
8. Set up of Kisan rail so that perishable farm goods can be quickly transported across the country.
9. Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan (PM KUSUM) to be expanded to provide 20 lakh farmers in setting up standalone solar pumps.
10. Agricultural credit target has been set at ₹ 15 lakh crore.
11. A very focused safe water 'Jal Jeevan Mission' and sanitation programme 'Swachh Bharat Yojna' have been launched to tackle health concerns.
12. The total allocation for Swachh Bharat Mission is ₹ 12,300 crore in 2020-21.
13. By 2030, India is set to have the largest working age population in the world.
14. Over 5 lakh MSMEs have benefited from debt restructuring.
15. A robust mechanism is in place to monitor the health of all scheduled commercial banks.
16. There will be degree-level full-fledged online education programme to be offered by the top 100 institutions in the country.
17. Introduction of 'Ind-SAT', an exam for Asian and African countries to help make India a higher education destination.
18. An investment clearance cell will be set up that will provide end to end facilitation and support including pre-investment advisory, info on land banks and facilitate clearance at state level.
19. 100 more airports to be developed by 2024.
20. Task force is to be set up to recommend marriageable age for women.
21. Insurance cover for a depositor will be raised to ₹ 5 lakh from ₹ 1 lakh.
22. To provide significant relief to taxpayers, IT rates will be decreased. Under the new regime, tax rates will be as follows:

  • Upto ₹ 2,50,000 - Nil
  • From ₹ 2,50,001 to ₹ 5,00,000 - 5% (Rebate can be claimed if Total Income is upto ₹ 5,00,000, hence, NIL tax)
  • From ₹ 5,00,001 to ₹ 7,50,000 - 10%
  • From ₹ 7,50,001 to ₹ 10,00,000 - 15%
  • From ₹ 10,00,001 to ₹ 12,50,000 - 20%
  • From ₹ 12,50,001 to ₹ 15,00,000 - 25%
  • Above ₹ 15,00,000 - 30%

The new tax rates will be optional. Option to Individual without around 70 exemptions/ Deductions (With 1.5L Chapter VIA Deductions)
23. Dividend Distribution Tax - scrapped for companies. Dividends to be charged to recipients.
24. Pre-filled tax return for individuals in new regime.
25. Turnover threshold for audit of MSME raised to ₹ 5 Crore from Rs. 1 Crore.
26. Options for Co-operative Societies: Co-operatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions. Date of approval of affordable housing projects for availing tax holiday on profit earned by developers extended by 1 year.
27. A scheme has been proposed to bring down litigation in direct taxation scheme.
28. Custom duty raised on footwear and furniture.
29. A health cess will be levied on import of medical equipment.
30. Income Tax Act to be amended to allow faceless appeals against tax orders on lines of faceless assessment.
31. To ease allotment of PAN, new process of instantly allotting PAN through Aadhaar will be brought.
32. New Electricity Generating Companies Corp Tax Rate 15%.
33. 100% Tax exemption to foreign investment in Priority Sector.
34. Start Ups - ESOPs to employees to be taxable after 5 years or sale or as per other conditions.
35. Turnover limit for exemption for Start Ups now 100 Cr.
36. TAX AUDIT THRESHOLD LIMIT - Increased to 5 Cr. But with business with cash transaction of not more than 5%.
37. Tax Holiday to developers of affordable housing extended by 1 year.
38. Limit of difference with circle can be 10% now (up from 5%)


GST is a single window to taxes on goods and services and will be with a regime to be charged on destination principal and credit of input will be availed once value addition is achieved.
GST, expected to be applicable w.e.f. 01st April, 2017, will change the existing model of business and reform it by giving an Organization single act to follow along with other state wise modules.
Important to understand difference between current tax structure and proposed GST operations
GST is defined as “any tax on supply of goods and services other than on alcohol for human consumption”.
Basically GST is a value added tax, which will be levied at all points in supply chain, where the deliverable changes hands, with a privilege to avail credit for any tax paid on input received for use in creating such supply.
GST Subsumes – VAT or sales tax, Central Sales tax, Entertainment tax (taxes on entertainment at panchayat, municipality or district level), Service Tax, Central Excise Duty, Purchase Tax, Octroi etc.
GST will work in 2 parts – Intra State and Inter State (IGST) and Intra State is further divided into two parts i.e. Central GST (CGST) and State GST (SGST) and the same will impact basis destination principal.


Input will be taken in following manner:


  • CGST-> CGST & IGST
  • SGST-> SGST & IGST
  • IGST-> IGST, CGST & SGST

Registration Requirement
North Eastern States

  • Registration – Aggregate Turnover in a year > USD 6,060/-*
  • Tax Liability – Aggregate Turnover > USD 7,575/-* Other States
  • Registration – Aggregate Turnover in a year > USD 13,636/-*
  • Tax Liability – Aggregate Turnover > USD 15,152/-* *(1 USD = INR 66 approx)

  • Pros of GST – Once Gained

    • Simplified tax structure and single act to follow;
    • Elimination of multiple taxes;
    • Improved regime in terms of Central and State applicability;
    • Increase in efficiency in terms of single line to follow;
    • Exports, still exempt;
    • Simplified compliance procedures;
    • No scope of cess, multiple levy of taxes, re-sale tax, additional tax, special tax etc. and so on.

    Features of GST

    • Change from ORIGIN BASED TAXATION to DESTINATION BASED CONSUMPTION TAX
    • Apply at all stages – Primary and Secondary, including retail
    • Applied to Goods as well as Services
    • Common list of exempted goods and services under CGST and SGST
    • CGST will replace CENVAT and Service Tax whereas SGST will subsume VAT
    • IGST will be applicable on Imports
    • Model GST Law including Rules and Procedures to be recommended by GST Council

    Exceptions on Applicability of GST

    • Alcohol for Human Consumption – State Excise
    • Electricity – Electricity Duty
    • Real Estate – Stamp Duty along with Property Tax
    • Petroleum Products (Some of them)
    • Tobacco Products – Undr GST as well as Central Excise
    • Composition of GST Council & Its Meetings

    GST Council will be a constitutional body established by president of India. It’s composition will be as follows:

    • Chairman – Union Finance Minister
    • Minister of State (Finance)
    • Finance Minister as member from each state
    • The meetings of the GST Council can proceed with a quorum of 50 percent and decisions will be taken with at least three-fourth weighted majority voting for a resolution. All decisions of the GST Council will be made by three-fourth majority of the votes cast; the center shall have one-third of the votes cast, and the states together shall have two-third of the votes cast.

    Functions of GST Council
    The functions of the GST council would be to make recommendation on:

    • What taxes, cesses, and surcharges to be subsumed under the GST?
    • What goods and services are subject to, or exempted from GST?
    • The threshold limit of turnover for application of GST
    • Rates of GST
    • Model GST laws, principles of levy, apportionment of IGST and principles related to place of supply
    • Special provisions with respect to the eight north eastern states, Himachal Pradesh, Jammu and Kashmir, and Uttarakhand
    • Other related matters

Taxation Reforms
No changes in existing income tax slabs
Infrastructure and agriculture cess to be levied.
Excise duty raised from 10 to 15 per cent on tobacco products other than beedis
1 per cent Service charge on purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh.
SUVs, Luxury cars to be expensive. 4% high capacity tax for SUVs.
Companies with revenue less than Rs 5 crore to be taxed at 29% plus surcharge
Limited tax compliance window from Jun 1 – Sep 30 for declaring undisclosed income at 45% incl. surcharge and penalties
10% Dividend Tax for the recipient over Rs. 10 Lakh per annum – in addition to Dividend Distribution Tax paid by the Company (Subject to reconfirmation)
Rebate under 87A increased from Rs. 2000 to Rs. 5000 (addition of Rs. 3000)for Individuals having income upto Rs. 5 Lakh
Government will pay interest of 9% instead of 6% in case there is a delay in appellate cases beyond 90 days. Officers to be held accountable.
Monetary limit for the cases to be decided by one member bench increased to Rs. 50 Lakh from Rs. 15 Lakh.
Surcharge on Income Tax increased from 12% to 15% for those having income exceeding Rs. 1 Crore per annum.
New dispute panel – Taxpayer can settle by paying disputed tax and interest upto the date of the assessment. No penalty where the disputed tax in Rs. 10 lakh. Penalty on the balance to be 25% of penalty.
100% deduction for the profits of undertakings from housing projects in cities during Jun’16 to Mar’19.
Deduction will be available for all assesses who are covered under Tax Audit for 30% of expenditure for additional employments. The number of days conditions have been reduced from 300 to 240.
Earlier this was for only manufacturing undertakings.
The ceiling U/s 44AD for presumptive basis income to 2 Crores for Businesses with presumptive income @ 8% as well as the benefit of this section extended to the Professionals having the Gross receipts upto 50 Lakhs with presumptive income @ 50%.
Penalty for concealment reduced to 50 – 200% as existing from 100 – 300%
MAT will be applicable for startups that qualify for 100 per cent tax exemption. Capital gain not taxed where investment made in notified funds or in startups where they hold majority.
Direct tax proposals result in revenue loss of Rs.1060 crore, indirect tax proposals result in gain of Rs.20,670 crore


Personal Finance

Rs 1,000 crore allocated for new EPF (Employees’ Provident Fund) scheme
Government will pay EPF contribution of 8.33% for all new employees for first three years
Withdrawal of PF Accumulation even after 5 years of service is taxable for contribution on or after 01.04.2016 on 60% due to amendment in Section 10(12) subject to certain condition.
Deduction for rent paid will be raised from Rs 24,000 to Rs 60,000 to benefit those living in rented houses.
Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
Service tax exempted for housing construction of houses less than 60 sq. m
Social Reforms
Rs38,500 crore for Mahtma Gandhi MGNREGA for 2016-17
Swacch Bharat Abhiyan allocated Rs.9,500 crores.
Government is launching a new initiative to provide cooking gas to BPL families with state support. 2.87 lakh crore grants to gram panchayats and municipalities – a quantum jump of 228%.
Health Sector
A new health protection scheme for health cover upto 1 lakh per family.
National Dialysis Service Prog with funds thru PPP mode to provide dialysis at all district hospitals.
Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme
Education Sector
Scheme to get Rs.500 cr for promoting entrepreneurship among SC/ST
10 public and 10 private educational institutions to be made world-class.
Rs. 1,700 crore for 1500 multi-skill development centers.
Digital literacy scheme to be launched to cover 6 crore additional rural households
Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojna-FM Jaitley National Skill Development Mission has imparted training to 76 lakh youth. 1500 Multi-skill training institutes to be set up.
Energy Sector
Rs. 3000 crore earmarked for nuclear power generation
Government drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy
Government to provide incentive for deepwater gas exploration
Investments and Infrastructure Sector
Rs. 27,000 crore to be spent on roadways
65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms/day
Shops to be given option to remain open all seven days in a week across markets.
Rs. 55,000 crore for roads and highways. Total allocation for road construction, including PMGSY, – Rs 97,000 crore
New green field ports to be developed on east and west coasts
Revival of underserved airports. Centre to Partner with States to revive small airports for regional connectivity
100 per cent FDI in marketing of food products produced and marketed in India
Agriculture Sector
Total allocation for agriculture and farmer welfare at Rs 35984 crores
28.5 lakh heactares of land wil be brought under irrigation.
5 lakh acres to be brought under organic farming over a three year period
Rs 60,000 crore for recharging of ground water recharging as there is urgent need to focus on drought hit areas cluster development for water conservation.
Dedicated irrigation fund in NABARD of Rs.20.000 cr
Banking Sector
Banks get a big boost: Rs 25,000 crore towards recapitalization of public sector banks.
Target of disbursement under MUDRA increased to 1,80,000 crore
Process of transfer of government stake in IDBI Bank below 50% started
General Insurance companies will be listed in the stock exchange
Government to increase ATMs, micro-ATMs in post offices in next three years

Companies were earlier required to file form ADT-1 as an attachment with eForm GNL-2. Now, with effect from October 20, 2014, ADT-1 is available as an eForm and the same is required to be filed for appointment / re-appointment of Statutory Auditor.
The newly introduced eForm ADT-1 can be downloaded from the below mentioned link:

In view of response give by companies to file records and financials of previous years, Ministry of Corporate Affairs has extended the CLSS 2014 till December 31, 2014 to invite more of such companies to file their previous records and financials with 75% discount on the additional fees.
The circular with the reference can be downloaded by clicking the below link:

Employees Provident Fund Organization (“EPFO”) through their Notification dated August 29, 2014, increased the wage ceiling under EPS 1995 from Rs. 6500/-to Rs. 15000/- which has to be applied by September 01, 2014.
The detailed notification can be downloaded by clicking the below mentioned link:

Section 185 of the new Companies Act, 2013 is in discussion now a days. The Section restrains Companies with common management to share loans or guarantees to each other, which in implication, if done on or after September 12, 2013 can impose a fine which shall not be less than Rs. 5 Lacs and which may extend to Rs. 25 Lacs and the Director to whom such loan, advance or guarantee is given or provided in connection with any loan taken by him or any other person, shall be punishable with imprisonment which may extend to 6 months or with fine which shall not be less than Rs. 5 Lacs which may extend to Rs. 25

Ministry of Corporate Affairs has, through its General Circular No. 14/2013 dated November 01, 2013 relaxed the last date of filing e-Form 23AC for appointment of Cost Auditor of the Company as applicable to certain specified class of companies.
The additional fees applicable has been relaxed for the companies and they can file the e-form 23AC upto November 30, 2013 or within 30 days of commencement of company’s financial year, to which the appointment relates, whichever is later.

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