Executive Summary

Income Tax

• Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory Body/Authority/Board/Commission – Notified Body or Authority.
• Opening Of Income Tax Offices on Holidays to Facilitate Pending Departmental Work
• Section 35(1)(ii) of the Income Tax Act 1961- Scientific Research expenditure – approved scientific research association/institution.
• Section 194S of the Income Tax Act, 1961- Deduction of Tax at Source- payment on transfer of virtual digital asset.
• Section 10(22B) of the Income tax Act, 1961- Exemptions – News Agency.
• Revision of Interest rates for small savings scheme.
• DTAA between the Republic of India and Kingdom of Spain.
• No deduction of tax under section 80LA

Goods And Service Tax (GST)

• Advisory on GSTR-1/IFF Introduction of New 14A and 15A tables.
• Advisory on Integration of E-Waybill system with New IRP Portal.
• Instances of Delay in registration reported by some Taxpayers despite successful Aadhar Authentication.

Companies Act 2013/ Other Laws.

• SEBI issues safeguards to address investors’ concerns regarding transfer of securities in demat mode.

• Master Direction on NBFC – Housing Finance Company (Reserve Bank) Directions, 2021

• Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory Body/Authority/Board/Commission – Notified Body or Authority.

1. In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Uttar Pradesh Real Estate Regulatory Authority’ (PAN AAAGU0671E), an Authority constituted by the State Government of Uttar Pradesh, in respect of the following specified income arising to that Authority, namely: —

(a) Amount received as Grant-in-aid or loan/advance from Government

(b) Fee/penalty received from builders/developers, agents or any other stakeholders as per the provisions of the Real Estate (Regulation and Development) Act, 2016

(c) Fee received under Right to Information Act, 2005; and

(d) Interest earned on bank deposits.

2. This notification shall be effective subject to the conditions that Uttar Pradesh Real Estate Regulatory Authority, –

(a) shall not engage in any commercial activity.s

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

3. This notification shall be deemed to have been applied from the Assessment Year 2021-2022.

And

1. In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Karnataka Urban Water Supply and Drainage Board’ (PAN: AAATK5837F), a Board constituted under the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974), in respect of the following specified income arising to that Board, namely:—

(a) Establishment, administrative, supervision, water charges and rent collected as per the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974)

(b) Forfeiture of earnest money deposit as per the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974);

(c) Penalty, Sale of Scrap, Storage charges and Survey charges as per the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974) and

(d) Interest earned on bank deposits.

2. This notification shall be effective subject to the conditions that Karnataka Urban Water Supply and Drainage Board-

(a) shall not engage in any commercial activity

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

3. This notification shall be deemed to have been applied from Assessment Year 2021-2022.

And

1. In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘National Mission for Clean Ganga’, New Delhi (PAN AABAN3769K), an Authority constituted under the River Ganga (Rejuvenation, Protection and Management) Authority Order, 2016, in respect of the following specified income arising to that Authority, namely:

(a) Grants-in-Aid received from Government of India; and

(b) Interest earned on bank deposits.

2. This notification shall be effective subject to the conditions that National Mission for Clean Ganga, New Delhi –

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

3. This notification shall be deemed to have been applied from Assessment Year 2021-2022.

• Opening of Income Tax offices on holidays to facilitate pending departmental work.

The Financial Year 2023-24 closes on 31st March 2024, which is Sunday. Further, 30th March 2024 is a Saturday and 29th March 2024 is a closed holiday. Therefore, to facilitate completion of pending departmental work, all the Income Tax Offices throughout India shall remain open on 29th, 30th and 31st March 2024. This direction is issued for administrative convenience by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income-tax Act, 1961.

• Section 35(1)(ii) of the Income Tax Act 1961- Scientific Research expenditure – approved scientific research association/institution.

1. In exercise of the powers conferred by clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (43 of 1961), read with Rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby approves ‘National Forensic Sciences University, Gandhinagar‘ (PAN: AAALN3742Q), ‘Sardar Vallabhbhai National Institute of Technology’, Surat (PAN: AAAJS1184P) and ‘Indian Institute of Technology, Kharagpur’ (PAN: AAAJI0323G) under the category of ‘University, college or other institution’ for ‘Scientific Research’ for the purposes of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961, read with rules 5C and 5E of the Income-tax Rules, 1962.
2. This Notification shall be applicable from Assessment Years 2024-25 to 2028-29.

• Section 194S of the Income Tax Act, 1961- Deduction of Tax at Source-payment on transfer of virtual digital asset.

As per section 194S of the Income-tax Act, 1961, any person responsible for paying to any resident person any sum by way of consideration for the transfer of a virtual digital asset is required to deduct an amount equal to 1% of such sum as income tax thereon. Further, as per sub-rule (4D) of rule 31A, a specified person’ is required to report such deductions in a challan-cum-statement electronically in Form No. 26QE within thirty days from the end of the month in which such deduction is made.

It has come to the notice of the Central Board of Direct Taxes (‘the Board’) that specified persons who deducted tax under section 194S of the Act during the period from 1-7-2022 to 31-1- 2023, could not file Form No. 26QE and pay corresponding TDS on or before the due date, due to unavailability of Form No. 26QE. This has resulted in consequential levy of fee under section 234E and interest under clause (ii) of sub-section (1A) of section 201 of the Act. Further, the specified persons who deducted tax under section 194S during the period from 1-2-2023 to 28-2-2023 had insufficient time to file Form No. 26QE and pay corresponding TDS thereon.

To address the grievances of such specified persons, the Board has decided to extend the due date of filing of Form No. 26QE for specified persons who deducted tax under section 194S but failed to file Form No. 26QE. The due date is hereby extended to 30-5-2023 in those cases where the tax was deducted by specified persons under section 194S of the Act during the period from 1-7-2022 to 28-2-2023. Fee levied under section 234E and/or interest charged under section 201(1A) (ii) of the Act in such cases for the period up to 30-5-2023, shall be waived.

• Section 10(22B) of the Income tax Act, 1961- Exemptions – News Agency.

1. In exercise of the powers conferred by the clause (22B) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the “The Press Trust of India Limited, New Delhi” as a news agency set up in India solely for collection and distribution of news, for the purpose of the said clause for two assessment years 2022-23 to 2023-24.
2. The notification is subject to the condition that the news agency applies its income or accumulates it for application solely for collection and distribution of news and does not distribute its income in any manner to its members.

• Revision of Interest rates for small savings scheme.

The rates of interest on various Small Savings Schemes for the first quarter of FY 2024-25 starting from 1st April 2024 and ending on 30th June 2024 shall remain unchanged from those notified for the fourth quarter (1st January 2024 to 31st March, 2024) of FY 2023-24.

• Modification made in DTAA between Republic of India and Kingdom of Spain

In the said notification, in the Convention annexed therewith between the Republic of India and Kingdom of Spain, in Article 13 relating to Royalties and Fees for Technical Services, for paragraph 2, the following paragraph shall be substituted, namely: –

“2. However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the law of that State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall not exceed ten per cent of the gross amount of royalties or fees for technical services.”.

Paragraph 2 of Article 13 of the said Convention, as amended by this notification, shall be applicable with effect from the assessment year 2024-25.

• No deduction of tax under section 80LA:

In exercise of the powers conferred by sub-section (1F) of section 197A read with subsection (1A) and sub-section (2) of section 80LA of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred as the Income-tax Act), the Central Government hereby notifies that no deduction of tax shall be made under the provisions of the Income-tax Act in respect of the payments made by any ‘payer’ to a person being a Unit of International Financial Services Centre, (hereinafter referred as ‘payee’), as specified in the notification.

• GSTN Issues advisory on GSTR-1/IFF:

(Introduction of New 14A and 15A tables)

The Central Government, on the recommendations of the Council, as per notification No. 26/2022 introduced two new Table 14A and Table 15A in GSTR-1 to capture the amendment details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 or liable to pay tax u/s 9(5) of the CGST Act, 2017.

Now, these tables have been made live on the GST common portal and will be available in GSTR-1/IFF from February 2024 tax period onwards. These amendment tables are relevant for those taxpayers who have reported the supplies in Table 14 or Table 15 in earlier tax periods.

• GSTN Issues advisory on Integration of E-Waybill system with New IRP Portals –

GSTN announced the successful integration of E-Waybill services with four new IRP portals via NIC, enabling taxpayers to generate E-Waybills alongside E-Invoicing on these four IRPs across all six IRPs.

This new facility complements the existing services available on the NIC-IRP   portal, making E-Waybill services, along with E-Invoicing, available across all six IRPs.

• Instances of Delay in registration reported by some Taxpayers despite successful Aadhar Authentication in accordance with Rule 8 and 9 CGST, Rules, 2017

The Central Government In accordance with Rule 9 of the Central Goods and Services Tax (CGST) Rules, 2017, pertaining to the verification and approval of registration applications, following is informed:

Where a person has undergone Aadhaar authentication as per sub-rule (4A) of rule 8 but has been identified in terms of Rule 9(aa) by the common portal for detailed verification based on risk profile, your application for registration would be processed within thirty days of application submission.

Necessary changes would also be made to reflect the same in the online tracking module vis-à-vis processing of registration application.

• Master Direction on NBFC – Housing Finance Company (Reserve Bank) Directions, 2021

The Reserve Bank of India (the Bank), having considered it necessary in the public interest, and being satisfied that, for the purpose of enabling the Bank to regulate the financial system to the advantage of the country and to prevent the affairs of any Housing Finance Company (HFCs) from being conducted in a manner detrimental to the interest of investors and depositors or in any manner prejudicial to the interest of such HFCs, and in exercise of the powers conferred under sections 45L and 45MA of the Reserve Bank of India Act, 1934

• SEBI issues safeguards to address investors’ concerns regarding transfer of securities in demat mode.

Market regulator Securities and Exchange Board of India (SEBI) has announced new safeguards on March 20, 2024, to address the concerns of the investors on transfer of securities in dematerialized (demat) mode. As per people privy to the matter, this has been done in order to prevent fraud by means of transferring shares from inactive demat account/accounts.

Executive Summary

Income Tax

• Implementation of E-verification Scheme- 2021.
• National savings Time Deposit (Amendment) scheme 2024
• Sukanya Samriddhi Account (Amendment) Scheme 2024
• The returns for AY 2020-21 which were not processed electronically can be processed by 31-01-2024, to claim refunds.
• CBDT notifies income tax return forms for the Assessment Year 2024-25 well in
• Section 90 of the Income tax Act, 1961- Double Taxation Relief- Agreement between Government of Republic of India and Government of Samoa for exchange of Information with respect of taxes.
• Scientific Research Institution/Association approved Scientific Research Expenditure under Section 35(1)(ii) of the Income Tax Act, 1961.
• Order has been passed regarding Remission and extinguishment of Tax Demand under Income Tax Act, 1961. Waiver of Income Tax Demands as per Interim Budget 2024 has been Capped at Rs.100,000.

Goods And Service Tax (GST)

• Introduction of Consent Based Sharing of Information Furnished by Taxable Person through Notified System

Companies Act 2013/ Other Laws.

• MCA operationalizes Central Processing Centre (CPC) for the Centralized Processing of Corporate Filings

• Companies (Registration Offices and Fees) Amendment Rules, 2024 – Insertion Of Rule 10A

• Relaxation of additional fees and extension of last date of filing of form no. LLP BEN-2 and LLP Form no. 4D under Limited Liability Partnership Act, 2008

• Action against Paytm Payments Bank Ltd. under section 35A of the Banking Regulation Act, 1949

• Insolvency and Bankruptcy Board of India amends The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

• Enhancing Transparency and Stakeholder Engagement in Liquidation Process

• SEBI has issued an advisory against Fraudulent Trading Schemes claiming to be offered to Indian residents by FPI’s.

• Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2024 – Amendment in Regulation 6 And Schedule

• Implementation Of E-Verification Scheme- 2021

The income tax Department has identified certain mismatches between third-party information on interest and dividend income, and the income tax Return (ITR) filed by taxpayers. In many cases, taxpayers have not even filed their ITR.

To reconcile the mismatch, an on-screen functionality has been made available in the Compliance portal of the e-filing website https://eportal.incometax.gov.in for taxpayers to provide their response. At present, the information mismatches relating to Financial Years 2021-22 and 2022- 23 have been displayed on the Compliance portal. The taxpayers are also being made aware of the mismatch through SMS and emails as per details available from the Department.

It is clarified that the said communication is not a notice.

In case the taxpayer has disclosed the interest income in the ITR under the line item ‘Others’ in the Schedule OS, she/he need not respond to the mismatch pertaining to the interest income. The said mismatch shall be resolved on its own and will be reflected in the portal as ‘Completed’.

• CBDT Introduced National Savings Time Deposit (Amendment) Scheme, 2024

In exercise of the powers conferred by section 3A of the government savings Promotion Act, 1873 (5 of 1873), the central government hereby makes the following scheme further to amend the national savings time deposit scheme, 2019, namely: –

1. This Scheme may be called the National Savings Time Deposit (Amendments) Scheme, 2024.

2. It shall be deemed to have come into force on the 1st day of January 2024.
3. In the National savings time deposit scheme, 2019 (hereinafter referred to as the said scheme), in paragraph 7: –

(a) in sub-paragraph 1(E), for the words, figures and letters, “on or after 1st day of July, 2023”, the words, figures, letters and brackets “between the 1st day of July 2023 and 31st day of December 2023 (both days inclusive)” shall be substituted;

(b) The rate of interest as specified in the Table below shall be applicable to the deposit made on or after the 1st day of January 2024 under the Scheme.

• Sukanya Samriddhi Account (Amendment) Scheme 2024

In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme further to amend the Sukanya Samriddhi Account Scheme, 2019, namely: –

1. a) This Scheme may be called the Sukanya Samridhi account (Amendment) Scheme, 2024.
2. b) It shall be deemed to have come into force on the 1st day of January 2024.
3. In the Sukanya Samriddhi Account Scheme, 2019, in paragraph 5: –
4. in sub-paragraph (1B), for the words, figures and letters, “on or after the 1st day of April, 2023”, the following words, figures, letters and brackets “between 1st day of April 2023 to 31st day of December 2023 (both days inclusive)” shall be substituted;
5. The deposits made in the account on or after the 1st day of January 2024 and the balances at the credit of the account shall earn interest at the rate of 8.2 per cent. per annum.

• The returns for AY 2020-21 which were not processed electronically can be processed by 31-01-2024, in order to claim refunds.

1. The Central Board of Direct Taxes (Board) vide its orders under section 119 of the Income-tax Act, 1961 (Act), dated 16-10-2023 and 1-12-2023 on the captioned subject relaxed the time prescribed in second proviso to sub-section (1) of Section 143 of the Act. It was directed that all returns of income validly filed electronically up to Assessment Year 2020-21 with refund claims, which could not be processed under sub-section (1) of the Section 143 of the Act, and which had become time barred, should be processed by 31-1-2024, subject to the conditions/ exceptions specified therein.

2. The matter has been re-considered by the Board in view of pending taxpayer grievances related to the issue of refunds. To mitigate the genuine hardship being faced by the taxpayers on this issue, Board, by virtue of its earlier orders under section 119 of the Act dated 16-10-2023 and 1-12-2023, supra, hereby further extends the time mentioned in the para no. 2 of these orders till 30-4-2024 in respect of returns of income validly filed electronically up to AY 2020-21. All other contents of the said orders u/s 119 of the Act will remain unchanged.

3. This may be brought to the notice of all necessary compliance.

• CBDT notifies income tax return forms for the Assessment Year 2024-25 well in

For AY 2024-25 Income Tax Forms (ITR Forms)-2, 3 and 5 have been notified. In addition to this ITR Form-6 has been notified for AY 2024-25. Earlier, ITR-1 and ITR-4 for the A.Y. 2024-25 were notified vide Notification No. 105 of 2023 dated 22.12.2023. All ITR Forms 1 to 6 have since been notified and will come into effect from 1st April 2024.

• Section 90 of the Income tax Act, 1961- Double Taxation Relief- Agreement between Government of Republic of India and Government of Samoa for exchange of Information with respect of taxes.

Whereas an agreement between the Government of Republic of India and Government of Samoa for exchange of information with respect to taxes, was signed at Apia, Samoa on 12th day of March, 2020, the said Agreement came into force on the 12th day of September, 2023, being the date of the later of the notifications of the completion of the procedures required by the respective laws of the contracting states for entry into force of the said Agreement, in accordance with paragraphs 1 and 2 of Article 12 of the said Agreement,

Paragraph 2 of Article 12 of the said Agreement provides that the Agreement shall have effect forthwith after the date of entry into force.

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the said Agreement, as annexed hereto, shall be given effect to in the Union of India

• Scientific Research Institution/Association approved Scientific Research Expenditure Under Section 35(1)(Ii) of the Income Tax Act, 1961.

In exercise of the powers conferred by clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (43 of 1961), read with Rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby approves ‘M/s Prayoga, Bengaluru (PAN: AACTP9202D) as ‘Other Institution’ and Panjab University, Chandigarh under the category of ‘University, College or Other Institution’ for ‘Scientific Research’ for the purposes of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961, read with rules 5C and 5E of the Income-tax Rules, 1962.

This Notification shall apply with effect for Assessment Years 2024-25 to 2028-29.

• Order has been passed regarding Remission and Extinguishment of Tax Demand Under Income Tax Act, 1961.

In Budget, there is a proposal to remit and extinguish the following claims to revenue, being tax -demands under which are outstanding as on 31st January, 2024 in respect of taxpayers/ assessee

This is expected to give relief to 10 million taxpayers. However, the total waiver is limited to a maximum of Rs. 1,00,000 per taxpayer (PAN). If the aggregate of all outstanding demands exceeds Rs. 1,00,000 for a taxpayer or entity, the waiver will be limited to eligible demands totalling ₹1,00,000 or less, with the remaining demands still applicable. No refunds can be claimed against the demands being waived off.

Introduction of Consent Based Sharing of Information Furnished by Taxable Person through Notified System (Notification No. 6/2024 Date:22-2-24)

The Central Government, on the recommendations of the Council, hereby notifies: “Public Tech Platform for Frictionless Credit” as the system with which information may be shared by the common portal based on consent under

sub-section (2) of Section 158A of the Central Goods and Services Tax Act, 2017 (12 of 2017).

“Public Tech Platform for Frictionless Credit” means an enterprise-grade open architecture information technology platform, conceptualized by the Reserve

Bank of India as part of its “Statement on Developmental and Regulatory Policies” dated the 10th August, 2023 and developed by its wholly owned subsidiary, Reserve Bank Innovation Hub, for the operations of a large ecosystem of credit, to ensure access of information from various data sources digitally and where the financial service providers and multiple data service providers converge on the platform using standard and protocol driven architecture, open and shared Application Programming Interface (API) framework.

• MCA operationalizes Central Processing Centre (CPC) for Centralized Processing of Corporate Filings

12 forms/applications will be processed at CPC from 16.02.2024; followed by other forms from 01.04.2024 onward. CPC will process applications in time-bound and faceless manner on the lines of Central Registration Centre (CRC) and Centralized Processing for Accelerated Corporate Exit (C-PACE).

• Companies (Registration Offices And Fees) Amendment Rules, 2024 – Insertion Of Rule 10a

The Ministry of Corporate Affairs vide Notification No. G.S.R. 107(E) dated February 15, 2024 notified the Companies (Registration Offices and Fees) Amendment Rules, 2024, effective from February 16, 2024. A new rule, 10A, is added to the Companies (Registration Offices and Fees) Rules, 2014, establishing a Central Processing Center. This Center, under section 396 of the Companies Act, 2013, is tasked with examining all applications, e-Forms, or documents for approval or registration by the Registrar.

The Registrar at the Central Processing Center must make decisions within 30 days of filing, excluding cases requiring approval from higher authorities. This rule grants the Central Processing Center jurisdiction over various filings, including resolutions, share capital alterations, name change applications, and conversions of company types.

Multiple filings at once will be handled collectively by the Center, ensuring uniformity in processing. However, the rule clarifies that it does not grant the Center authority under section 399 of the Companies Act, leaving the Registrar with territorial jurisdiction to exercise those powers. This amendment aims to streamline the registration process and centralize decision-making for specified filings across India.

• Relaxation of additional fees and extension of last date of filing of form no. LLP BEN-2 and LLP Form no. 4D under Limited Liability Partnership Act, 2008

LLPs may file Form No. LLP BEN-2 and LLP Form No.4D without paying any additional fees up to 15.05.2024.

The two forms shall be made available in version -3 for the filing purpose w.e.f 15.04.2024

• Action against Paytm Payments Bank Ltd. under section 35A of the Banking Regulation Act, 1949

The Reserve Bank of India, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, had put certain business restrictions on Paytm Payments Bank Ltd (PPBL or the bank), vide Press Releases dated March 11, 2022 and January 31, 2024. Keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements and the larger public interest, the Reserve Bank of India under section 35A of the Banking Regulation Act, 1949 in partial modification of the earlier Directions dated January 31, 2024 has issued certain directions.

• Insolvency and Bankruptcy Board of India amends The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process fr Corporate Persons) Regulations, 2016

The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2024 (Amendment Regulations) on 15th February, 2024 to streamline the corporate insolvency resolution process.

• Enhancing Transparency and Stakeholder Engagement in Liquidation Process

Circulation of progress reports to stakeholders is hereby directed that the liquidator shall also share the progress reports with the members of the Stakeholders’ Consultation Committee (SCC) after receiving a confidential undertaking.

Preparation of preliminary report

It is hereby directed that the liquidator shall seek suggestions/observations of the members of the SCC while preparing the Preliminary Report under regulation 13 and finalise the Preliminary Report after considering such suggestions/observations, and after that, submit it to the AA, Board and members of SCC.

Sharing of the final report, Form H, and process closure/dissolution order with IBBI

It is hereby directed that the liquidator shall submit a copy of Form H along with the final report filed before the Adjudicating Authority as per Regulation 45, and the order for process.

• SEBI has issued an advisory against Fraudulent Trading Schemes claiming to be offered to Indian residents by FPI’s.

SEBI has cautioned investors of some fraudulent entities that were offering resident Indian investors trading opportunities that would be on a par with foreign funds. This is not possible under current rules and investors should be careful of such offers, as fraudsters were enticing victims through online trading courses, seminars, and mentorship programs in the stock market through messaging platforms like WhatsApp and Telegram, as well as live broadcasts. These fraudsters are “Posing as employees or affiliates of Sebi-registered FPIs, they coax individuals into downloading applications that purportedly allow them to purchase shares, subscribe to IPOs, and enjoy ‘institutional account benefits’, all without the need for an official trading or demat account. There is no provision for an ‘institutional account’ in trading, and direct access to the equities market requires investors to have a trading and demat account with a Sebi-registered broker/trading member and DP respectively. Sebi has not granted any relaxations to FPIs regarding securities market investments by Indian investors.” Sebi urged investors to exercise caution and to steer clear of any social media messages, WhatsApp groups, Telegram channels or apps claiming to facilitate stock market access through FPIs or FIIs registered with it.

• Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2024 – Amendment in Regulation 6 And Schedule

Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2023 modifies the Securities and Exchange Board of India (Employees’ Service) Regulations, 2001. In the Schedule of the 2001 regulations, in the Table, column 3, there is an insertion of additional qualification requirements for officers in the Legal Stream in Grade ‘A.’ The new requirement specifies that, in addition to the qualifications already specified for the Legal Stream, two years of post-qualification experience as an Advocate (including as an associate in an Advocate’s or Solicitor’s Office or Law Firm) after being enrolled under the Advocates Act, 1961, is a desirable qualification.

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for   the period till 28.02.2024

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Executive Summary

Income Tax

➢ Guidelines Under Sub-Section (4) of Section 194-O of the Income-Tax Act, 1961.

➢ CBDT has notified the ITR-6 for the Assessment Year 2024-25.

➢ CBDT has notified under Section 10(23FE) of the Income-Tax Act, 1961 – Exemption – Income of Specified Person from an Investment Made in India – Specified Pension Fund.

➢ CBDT has notified under Section 10(4G), read with section 80LA of the Income-tax act, 1961 – Exemption – Activity investment in a financial product by a non-resident under contract with capital market intermediary being a unit in IFSC.

➢ CBDT has notified under section 10(46) of the Income Tax Act, 1961 – Exemptions – Statutory Body/ Authority/ Board/ Commission – Notified Body or Authority.

Goods And Service Tax (GST)

➢ Extension of the due date of furnishing return in GSTR-3B for specified places.

➢ Furnishing of Annual Returns and self-certified reconciliation statements for registered persons of specified areas.

➢ Special Procedures for Certain Processes and Special Procedures to be followed by registered persons engaged in manufacturing notified goods.

Companies Act 2013/ Other Laws.

➢ MCA notifies norms w.r.t listing of equity shares in IFSC by public companies.

➢ RBI issues updated master circular on exposure norms and statutory/other restrictions-UCBs.

➢ Govt. notifies accounting, taxation, & financial crime compliance services as ‘financial services’ under IFSCA Act`

➢ Govt. permits investment by ‘permissible holders’ in the equity of Indian public Cos.listed on international exchanges.

➢ Competition Commission of India (General) Amendment Regulations, 2024

➢ SEBI Streamlines regulatory reporting by Designated Depository Participants (DDPs) and Custodians through SI Portal

➢ SEBI Circular: New Framework for Employee Share Sale via Stock Exchange

INCOME TAX

CBDT has issued the guidelines under sub-section (4) of section 194-O of the Income Tax Act, 1961.

Central Board of Direct Taxes (Board) vide

Circular No. 20 of 2023 [F. NO. 370142/43/2023-TPL], dated 28-12-2023 has issued the guidelines on the above-mentioned subject.

Following are the guidelines:

(I) Who should deduct tax at the source where there are multiple e-commerce operators (ECO) involved in a transaction?

For example, a buyer-side ECO could be involved in buyer-side functions, and a seller-side ECO Involved in seller-side functions. In this case, there may be two situations:

a) Where the seller-side ECO is not the actual seller of the goods or services –

In this situation, the compliance is to be done by the seller-side ECO who finally makes the payment to the seller and the tax shall be deducted on the “gross amount” of such sales of goods or provision of services. The tax shall be deducted by the seller-side ECO at the time of credit to the account of a seller or at the time of payment, whichever is earlier.

b) Where the seller-side ECO is the actual seller of the goods or services.

In this situation, compliance is to be done by the ECO which finally makes the payment to the seller for goods or services sold, which in this case is ECO-2* and the tax shall be deducted on the gross amount of such sale of goods or provision of services and shall be deducted by ECO-2* at the time of credit or at the time of the payment, whichever is earlier.

*For Situation (b)

(ii) E-Commerce Operator may levy convenience fees or charge commission for each transaction and the Seller might levy logistics & delivery fees for the transaction.

Payments may also be made to the platform or network provider to facilitate the transaction. Do the logistics charges, delivery fees, etc. form part of the gross amount for TDS Deduction under section 194O? Further, the buyer-side ECO and seller-side ECO may charge a commission to the seller to enable the online transaction, and the seller may choose to recoup all or part of that amount from the buyer.

(iii) Are GST, state levies, and taxes other than GST such as VAT treated when calculating the gross amount of sales of goods or provision of services for section 194O?

(iv) How will adjustment for purchase-returns take place?

(v) How will discounts given by the seller as an E-Commerce Participant or by any of the multiple ECOs be treated while calculating the ‘gross amount’ for section 194-O?`

➢ CBDT has notified the ITR-6 for the Assessment Year 2024-25.

CBDT has notified ITR6 for Assessment Year 2024-25 for filing returns for Financial Year 2023-24.

• How will GST, various state levies, and taxes other than GST (such as Value Added Tax / Sales tax / Excise duty / Central Sales Tax) be treated when calculating the ‘gross amount’ of sale for section 194-O?

• How will adjustment for purchase returns take place?
• How will discounts given by the seller as an E-Commerce Participant or by any of the multiple ECOs be treated while calculating the ‘gross amount’ for section 194-O?

➢ CBDT has notified ITR-1 and ITR-4 for Assessment Year 2024-25

CBDT has notified ITR1 SAHAJ and ITR4 SUGAM for Assessment Year 2024-25 for filing returns for Financial Year 2023-24.

➢ CBDT has notified under Section 10(23FE) of the Income-Tax Act, 1961 –

Exemption – Income of Specified Person from an Investment Made in India –

Specified Pension Fund.

In exercise of the powers conferred by sub-clause (iv) of clause (c) of Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Act), the Central Government hereby specifies the pension fund, namely, Ravenna Investments Holding B.V (PAN: AAMCR8596D), (hereinafter referred to as the assessee) as the specified person for the said clause in respect of the eligible investment made by it in India on or after the date of publication of this notification in the Official Gazette but on or before the 31st day of March 2024 (hereinafter referred to as the said investments) subject to the fulfillment of the following conditions, namely:-

• the assessee shall file a return of income, for all the relevant previous years falling within the period beginning from the date in which the said investment has been made and ending on the date on which such investment is liquidated, on or before the due date specified for furnishing the return of income under sub-section (1) of section 139 of the Act;
• the assessee shall furnish along with such return a certificate in Form No. 10BBC in respect of compliance with the provisions of clause (23FE) of section 10 of the Act, during the financial year, from an accountant as defined in the Explanation below sub-section (2) of section 288 of the Act, as per the provisions of clause (vi) of rule 2DB of the Income-tax Rules, 1962;
• the assessee shall intimate the details in respect of each investment made by it in India during the quarter within a period of one month from the end of the quarter in Form No. 10BBB, as per the provisions of clause (v) of rule 2DB of the Income-tax Rules, 1962;
• the assessee shall maintain a segmented account of income and expenditure in respect of such investment which qualifies for exemption under clause (23FE) of section 10 of the Act;
• the assessee shall continue to be regulated under the laws of the Government of the Netherlands;
• the assessee shall be responsible for administering or investing the assets for meeting the statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability, death benefits, or any similar compensation to the participants or beneficiaries of such funds or plans, as the case may be;
• he assessee shall be responsible for administering or investing the assets for meeting the statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability, death benefits, or any similar compensation to the participants or beneficiaries of such funds or plans, as the case may be;
• the assessee shall not have any loans or borrowings [as defined in sub-clause (b) of clause (ii) of Explanation 2 to clause (23FE) of section 10 of the Act], directly or indirectly, to invest in India; and
• the assessee shall not participate in the day-to-day operations of the investee [as defined in clause (i) of Explanation 2 to clause (23FE) of section 10 of the Act] but the monitoring mechanism to protect the investment with the investee including the right to appoint directors or executive directors shall not be considered as participation in the day-to-day operations of the investee

➢ CBDT has notified under Section 10(4G), read with section 80LA of the  Income-tax Act, 1961 – Exemption – Activity investment in a financial product by a non-resident under contract with a capital market intermediary being a unit in IFSC.

In exercise of the powers conferred by sub-clause (ii) of clause (4G) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the activity of investment in a financial product by the non-resident, under a contract with such non-resident entered into by a capital market intermediary, being a Unit of an International Financial Services Centre, where the income from such investment is received in the account of the non-resident maintained with the Offshore Banking Unit of such International Financial Services Centre, as referred to in sub-section (1A) of section 80LA

Explanation. —For this notification —

• “Capital market intermediary” shall have the meaning as assigned to it in clause (ga) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021;
• “financial product” shall have the meaning as assigned to it in sub-clause (d) of sub-section (1) of section 3 of International Financial Services Centres Authority Act, 2019 (50 of 2019);

• “International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005)
• “Unit” shall have the same meaning as assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005)

➢ CBDT has notified under section 10(46) of the Income Tax Act, 1961 –  Exemptions – Statutory Body/ Authority/ Board/ Commission – Notified Body or  Authority

The Central Government has notified the following Statutory Body/ Authority/Board/ Commission for Section 10(46) subject to specified conditions for the years mentioned in the notification:

a) Karnataka State Rural Livelihood Promotion Society.

b) Polavaram Project Authority.

c) Madhya Professional Examination Board, Bhopal.

d) Punjab State Faculty of Ayurvedic and Unani Systems of Medicine.

e) Karmayogi Bharat.

f) Chennai Metropolitan Water Supply and Sewerage Board.

g) Haryana State Board of Technical Education, Panchkula.

h) District Legal Service Authority Union territory Chandigarh.

i) Bellary Urban Development Authority\

Goods & Services Tax

➢ Extension of Due date of furnishing  return GSTR-3B for specified places –

As per Notification No. 1/2024-CENTRAL TAX Dated 05-01-2024, the government has extended the due date of furnishing the return in Form GSTR- 3B for November 2023 till the tenth day of January 2024 for the registered persons whose principal place of business is in the districts of Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi and Virudhunagar in the state of Tamil Nadu. This notification shall come into force w.e.f. 20th day of December 2023

➢ Furnishing of Annual Returns and self-certified reconciliation statements for  registered persons of specified areas –

As per Notification No. 2/2024- CENTRAL TAX- Dated 05-01-2024, the Central Government has made the following rules further to amend the Central Goods and ServicesTax Rules, 2017, namely: –

Short title and commencement

1.  (1) These rules may be called the Central Goods and Services Tax (Amendment) Rules, 2024.

(2) They shall come into force on the 31st day of December 2023

2. In the Central Goods and Services Tax Rules, 2017, in rule 80, –

(a) after sub-rule (1A), the following sub-rule shall be inserted, namely: – (1B) Notwithstanding anything contained in sub-rule (1), for the financial year 2022-23, the said annual return shall be furnished on or before the tenth day of January 2024 for the registered persons whose principal place of business is in the districts of Chennai, Tiruvallur, Chengalpattu, Kancheepuram, Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi and Virudhunagar in the state of Tamil Nadu.

(b) after sub-rule (3A), the following sub-rule shall be inserted, namely: – (3B) Notwithstanding anything contained in sub-rule (3), for the financial year 2022-23, the said self-certified reconciliation statement shall be furnished along with the said annual return on or before the tenth day of January 2024 for the registered persons whose principal place of business is in the districts of Chennai, Tiruvallur, Chengalpattu, Kancheepuram, Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi and Virudhunagar in the state of Tamil Nadu.”

➢ Special Procedures for Certain Processes and Special Procedures to be followed  by a registered person engaged in manufacturing notified good

As per Notification No. 4/2024- CENTRAL TAX- Dated 05-01-2024, Central Government has notified Special Procedures for Certain Processes and Special Procedures to be followed by a registered person engaged in manufacturing notified goods (Schedule includes Description of Goods like Pan Masala, Tobacco, Smoking mixtures for pipes and cigarettes, etc.), namely: –

1. Details of Packing Machines

(1) All the registered persons engaged in manufacturing the goods mentioned shall furnish the details of packing machines being used for filling and packing packages in FORM GST SRM-I, within thirty days of coming into effect of this notification.

(2) Any person intending to manufacture goods as mentioned in the Schedule to this notification, and who has been granted registration after the issuance of this notification, shall furnish the details of packing machines being used for filling and packing of packages in FORM GST SRM-I on the common portal, within fifteen days of grant of such registration.

(3) The details of any additional filling and packing machine being installed at the registered place of business shall be furnished, electronically on the common portal, by the said registered person within twenty-four hours of such installation in PART (B) of Table 6 of FORM GST SRM-I.

(4) If any change is to be made to the declared capacity of the machines, the same shall be furnished, electronically on the common portal, by the said registered person within twenty-four hours of such change in Table 6A of FORM GST SRM-I.

(5) Upon furnishing of such details in FORM GST SRM-I, a unique registration number shall be generated for each machine, the details of which have been furnished by the registered person, on the common portal.

(6) In case, the said registered person has submitted or declared the production capacity of his manufacturing unit or his machines, to any other government department or any other agency or organization, the same shall be furnished by the said registered person in Table 7 of FORM GST SRM-I on the common portal, within fifteen days of filing such declaration or submission:

Provided that where the said registered person has submitted or declared the production the capacity of his manufacturing unit or his machines, to any other government department or any other agency or organization, before the issuance of this notification, the latest such certificate in respect of the manufacturing unit or the machines, as the case may be, shall be furnished by the said registered person in Table 7 of FORM GST SRM-I on the common portal, within thirty days of issuance of this notification.

(7) The details of any existing filling and packing machine disposed of from the registered place of business shall be furnished, electronically on the common portal, by the said registered person within twenty-four hours of such disposal in Table 8 of FORM GST SRM-I

2. Special Monthly Statement

The registered person shall submit a special statement for each month in FORM GST SRM-II, electronically on the common portal, on or before the tenth day of the month succeeding such month.

3. Certificate of Chartered Engineer

(1) The taxpayer shall upload a certificate of Chartered Engineer FORM GST SRM-III in respect of machines declared by him, as per para 1 of this notification, in Table 6 of FORM GST SRM-I.

(2) If details of any machine are amended subsequently, then a fresh certificate in respect of such machine shall be uploaded.

4. This notification shall come into effect from the 1st day of April 2024.

Companies Act, 2013/LLP Act, 2008

➢ MCA notifies norms w.r.t listing of equity shares in IFSC by public companies.

The Companies (Listing of equity shares in permissible jurisdictions) Rules, 2024, introduced by the Ministry of Corporate Affairs (MCA), marks a significant step towards enabling unlisted and listed public companies to issue securities for listing on approved stock exchanges in permissible foreign jurisdictions.

These regulations provide clarity on eligibility criteria, listing requirements, and reporting obligations, fostering transparency and compliance within the international financial landscape.

RBI

➢ RBI issues updated master circular on exposure norms and statutory/other restrictions-UCBs.

RBI issues a master circular consolidating all the instructions/guidelines on exposure norms and statutory/other restrictions related to the (urban) cooperative banks UCBs. Now users can refer to the consolidated master circular, consolidating different circulars in one place.

➢ Govt. notifies accounting, taxation, & financial crime compliance services as ‘financial services’ under the IFSCA Act

The RBI has notified amendment sub-clause (xiv) of clause (e) of sub-section (1) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), the Central Government hereby notifies the following as financial services, namely: —

1. Book-keeping services
2. Accounting services.
3. Taxation services; and
4. Financial crime compliance services

➢ Govt. permits investment by ‘permissible holders’ in the equity of Indian  public Cos. listed on international exchanges

The Ministry of Finance vide. Notification No. S.O. 332(E) dated 24.01.2024 has notified the Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2024. A new Rule 34 in chapter X has been inserted which permits the Investment by permissible holders in Equity Shares of Public Companies Incorporated in India and Listed on International Exchanges.

COMPETITION LAW

➢ Competition Commission of India (General) Amendment Regulations, 2024

In the Competition Commission of India (General) Regulations, 2009, regulation 49,

after sub-regulation

(1) the following sub-regulation shall be inserted, namely:

(1A) Each Interlocutory Application received under sub-regulation (6) of Regulation 15 shall be accompanied by proof of having paid the fee as under: –

(a) Rupees 500 (five hundred) in case of individual or Hindu Undivided Family (HUF), or

(b) Rupees 1000 (one thousand) in case of a Non-Government Organization (NGO), or Consumer Association, or Co-operative Society, or Trust or

(c) Rupees 1000 (one thousand) in case of firm (including proprietorship, partnership or Limited Liability Partnership) or company (including one person company) having turnover in the preceding year up to rupees two crore, or

(d) Rupees 5000 (five thousand) in all other cases.”

SEBI

➢ SEBI Streamlines regulatory reporting by Designated Depository Participants  (DDPs) and Custodians through SI Portal

The Securities and Exchange Board of India (SEBI) has recently issued a circular, SEBI/HO/AFD/AFD-SEC-2/P/CIR/2024/8, dated January 25, 2024. The circular focuses on streamlining regulatory reporting by Designated Depository Participants (DDPs) and Custodians. The objective is to establish uniform compliance standards, enhance ease of reporting, and meet regulatory requirements.

➢ SEBI Circular: New Framework for Employee Share Sale via Stock Exchange

The Securities and Exchange Board of India (SEBI) has issued a circular, SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/6, dated January 23, 2024. This circular introduces a new framework for the Offer for Sale (OFS) of shares to employees through the stock exchange mechanism. The purpose is to streamline the existing process, enhance efficiency, and reduce costs associated with the current procedure.

Disclaimer: Information in this note is intended to provide only a general update on the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for the period 25.01.2024.

Executive Summary

Income Tax

CBDT extends the Time Limit for processing validly filed income tax returns with refund claims up to assessment year 2017-18 until January 31, 2024.
➢ Guidelines Prescribed by CBDT for withholding Tax u/s 194-O.
➢ CBDT has notified ITR-1 and ITR-4 for Assessment Year 2024-25
➢ Central Government notifies Godavari River Management Board of Hyderabad for exemption in exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961.
➢ Sovereign Gold Bond Scheme 2023-24 (Series III) will be opened for subscription during the period December 18-22, 2023.
➢ PowerGrid Infrastructure Investment Trust to be recognized as a mode for continuity of tax exemption for Charitable Trust and Institution
➢ The CBDT vide Notification No. 106/2023 dated December 27, 2023, notified an exemption to Ravenna Investments Holding B.V for pension funds under section 10(23FE) of the Income Tax Act, 1961.
➢ The government has revised the rate of Interest for the Small Savings Scheme with the approval of the competent authority.
➢ CBDT has notified the Income-tax (Twenty-Ninth Amendment) Rules, 2023, to amend Rules 10TA and 10TD for revising the definition of intra-group loans and circumstances in which they are treated as Safe Harbour.

Goods And Service Tax (GST)

➢ Extension of due date of GSTR 3B for the month of November 2023.
➢ Government issued time limit for issuing order under sec 73.
➢ GSTN issues advisory for pilot project of biometric-based Aadhaar authentication and document verification
➢ Advisory related to amnesty for taxpayer who missed to file appeal for the order passed on or before 31st march 2023.
➢ GSTN has given advisory on Two factor authentication (2FA).

Companies Act 2013/ Other Laws

➢ Mandatory Pre-Requisite For E-filing Matters in NCLT
➢ Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023
➢ RBI modifies MSME lending norms
➢ RBI issues revised instructions for inoperative accounts/unclaimed deposits in Banks
➢ Employees’ State Insurance (Central) Amendment Rules, 2023
➢ Filing of Announcements Related to Loss of Share Certificate, Issue of Duplicate Share, Certificate Closure of Trading Window and CIRP- NSE
➢ SEBI (Listing Obligations and Disclosure Requirements) (Seventh Amendment) Regulations, 2023
➢ SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2023

INCOME TAX

➢ CBDT extends the Time Limit for Processing Validly Filed Income Tax Returns with Refund Claims up to Assessment Year 2017-18 until January 31, 2024

Central Board of Direct Taxes (Board) vide its order under section 119 of the Income-tax Act,1961 dated July 05, 2021 and September 30, 2021 on the captioned subject relaxed the timeframe prescribed in second proviso to subsection (1) of Section 143 of the Act. It was directed that all validly filed returns up to Assessment Year 2017-18 with refund claims, which could not be processed under section 143(1) of the Act and which had become time barred, should be processed by November 30, 2021, subject to the conditions exceptions specified therein.
The matter has been re-considered by Board in view of pending taxpayer grievances related to issue of refund. To mitigate the genuine hardship being faced by the taxpayers on this issue, Board, by virtue of its power under section 119 of the Act and in partial modification of its earlier order under section 119 of the Act dated July 05, 2021 and September 30, 2021, supra, hereby further extends the time frame mentioned in the para no. 2 of the order dated September 30, 2021 till January 31, 2024 in respect of returns of income validly filed electronically. All other contents of the said order u/s 119 of the Act dated July 05, 2021 will remain unchanged.

Above relaxation shall not be applicable to the following returns:
(i) returns selected in scrutiny
(ii) returns remain unprocessed, where either demand is shown as payable in the return or is likely to arise after processing it
(iii) returns remain unprocessed for any reason attributable to the assessee.

➢ Guidelines Prescribed by CBDT for withholding Tax u/s 194-O.

The guidelines contemplate following situations and explains in detail how section 194- O would operate in such cases, including illustrations.
• In case of a platform or network ( e.g., the open network for digital commerce) wherein multiple ECOs are participating in a single transaction of sale of goods / services through the platform / network. For example, there could be a buyer side ECO involved in buyer side functions and a seller side ECO involved in seller side functions.
Example 1 – Where the seller-side ECO is not the actual seller of goods / services. In this situation, withholding of tax u/s 194-O is required to be done by the seller side ECO who finally makes the payment to the seller. The seller-side ECO would file the requisite withholding tax return in Form 26Q and issue certificate to the seller in Form 16A.
Example 2 – Where the seller-side ECO is the actual seller of goods / services. In this situation, withholding of tax u/s 194-O is required to be done by the ECO which finally makes the payment to the seller for goods / services sold, which in the case mentioned below is ECO-2. The ECO 2 would file the requisite withholding tax return in Form 26Q and issue certificate to the seller in Form 16.
• ECOs may be levying convenience fees or charging commission for each transaction and seller might levy logistics and delivery fees for the transaction. Payments may also be made to the platform or network provider for facilitating the transaction. Whether these would form part of ‘gross amount’ for the purpose of withholding tax u/s 194-O of the Act?
• How will GST, various state levies and taxes other than GST (such as Value Added Tax / Sales tax / Excise duty / Central Sales Tax) be treated when calculating ‘gross amount’ of sale for the purpose of section 194-O?
• How will adjustment for purchase -returns take place?
• How will discounts given by seller as an E -Commerce Participant or by any of the multiple ECOs be treated while calculating ‘gross amount’ for the purpose of section 194-O?

➢ CBDT has notified ITR-1 and ITR-4 for Assessment Year 2024-25
CBDT has notified ITR1 SAHAJ and ITR4 SUGAM for Assessment Year 2024-25 for filing return for Financial Year 2023-24.

➢ Central Government notifies Godavari River Management Board of Hyderabad for exemption in exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961.
Central Government in pursuance of section 85 of the Andhra Pradesh Re-Organization Act, 2014, in respect of the following specified income arising to the said Authority, as follows:
(a) Grants/Subsidies received from CG and from the SG of Andhra Pradesh and Telangana and
(b) Interest from bank deposits, including savings account.

Above notification shall be effective subject to the conditions that Godavari River Management Board, Hyderabad-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
(c) shall file return of income in accordance with the provision of clause (g) of sub- section (4C) of section 139 of the Income-tax Act, 1961.
This notification shall be deemed to have been applied for assessment years 2020-21 to 2023-2024.

➢ Sovereign Gold Bond Scheme 2023-24 (Series III) will be opened for subscription during the period December 18-22, 2023.
The Gold Bonds issued under this Scheme may be held by a Trust, HUFs, Charitable Institution, University or by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual.

The issue price of the Bond during the subscription period shall be ₹6,199 per gram . The Government of India in consultation with the Reserve Bank of India has decided to allow discount of ₹50 per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be ₹6,149 per gram of gold.

Interest on the Gold Bonds shall commence from the date of issue and shall be paid at a
fixed rate of 2.50 percent per annum on the nominal value of the bond and the interest shall be payable in half-yearly rests and the last interest shall be payable along with the principal on maturity and these Gold Bonds shall be repayable on the expiration of eight years from the date of the issue of the Bonds.

➢ PowerGrid Infrastructure Investment Trust to be recognized as a mode for continuity of tax exemption for Charitable Trust and Institution

Charitable Trusts / Institutions enjoying Income-tax exemption u/s 11(5) of the Income- tax Act are required to invest their surplus funds in prescribed modes, such as savings certificates, post office savings, deposit in an account with a scheduled bank or co- operative society, units of Unit Trust of India, deposit in any public sector company of India, etc. the CBDT has added investment in units of PowerGrid Infrastructure Investment Trust as one of the recognised modes for continuity of tax exemption for such trusts / institutions.

➢ The CBDT vide Notification No. 106/2023 dated December 27, 2023, notified an exemption to Ravenna Investments Holding B.V for pension funds under section 10(23FE) of the Income Tax Act, 1961.

The notified funds are eligible to claim an exemption for eligible investments made in India on or before March 31, 2024, subject to following conditions.

i. The assessee shall file a return of income, for all the relevant previous years falling within the period beginning from the date in which the said investment has been made and ending on the date on which such investment is liquidated.

ii. the assessee shall furnish along with such return a certificate in Form No. 10BBC in respect of compliance with the provisions of clause (23FE) of section 10 of the Act.

iii. the assessee shall intimate the details in respect of each investment made by it in India during the quarter within a period of one month from the end of the quarter in Form No. 10BBB.

iv. the assessee shall maintain a segmented account of income and expenditure in respect of such investment which qualifies for exemption under clause (23FE) of section 10 of the Act;

v. the assessee shall continue to be regulated under the laws of the Government of the Netherlands;

vi. the assessee shall not have any loans or borrowings directly or indirectly, for the purposes of making investment in India and

vii. the assessee shall not participate in the day-to-day operations of investee but the monitoring mechanism to protect the investment with the investee shall not be considered as participation in the day-to-day operations of the investee and

viii. any other conditions as may be prescribed.
Violation of any of the conditions as stipulated in clause (23FE) of section 10 of the Act and this notification shall render the assessee ineligible for the tax exemption.

➢ Government has revised the rate of Interest for Small Savings Scheme with the approval of competent authority.
The rates of interest on various Small Savings Schemes for the fourth quarter of financial year 2023-24 starting from 1 st January, 2024 and ending on 31 st March, 2024 have been revised as detailed below:

➢ CBDT has notified the Income-tax (Twenty-Ninth Amendment) Rules, 2023, to amend Rules 10TA and 10TD for revising the definition of intra-group loans and circumstances in which they are treated as Safe Harbour.

Intra-group loan definition has been revised to include loans extended to “Associate Enterprise” rather than wholly owned subsidiaries and the condition for the loans to be advanced must be sourced in Indian Rupees has been omitted. The updated definition of intra-group loan is now stated as follows:

Intra-group loan means a loan advanced to an associated enterprise being a non-resident, where the loan

(i) is not advanced by an enterprise, being a financial company including a bank or a financial institution or an enterprise engaged in lending or borrowing in the normal course of business, and

(ii) does not include a credit line or any other loan facility which has no fixed term for repayment;
Rule 10TD has been amended to replace the conditions for safe harbor in the event of the advancement of intra-group loans denominated in a foreign currency. The reference to “CRISIL” credit rating has been omitted from Rule 10TD. Thus, the credit rating of any other entities can be used while determining Safe Harbour.

➢ As per Notification No. 56/2023 Dated 28 th December, 2023 – The Government, on the recommendations of the Council, hereby, extends the time limit specified under sub- section (10) of section 73 for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized, relating to the period as specified below, namely: –

• For the financial year 2018-19, up to the 30th day of April, 2024;
• For the financial year 2019-20, up to the 31st day of August, 2024

➢ As per Notification NO. 55/2023 Dated 20 th December, 2023
The Commissioner, on the recommendations of the Council, hereby extends the due date for furnishing the return in FORM GSTR-3B for the month of November, 2023 till the twenty-seventh day of December, 2023, for the registered persons whose principal place of business is in the districts of Chennai, Tiruvallur, Chengalpattu and Kancheepuram in the state of Tamil Nadu

.
➢ The GSTN on has issued an advisory 1 st December 2023 for applicants of GST registration in the state of Andhra Pradesh, for pilot project of biometric-based Aadhaar authentication and document verification.
The functionality now also provides for the document verification and appointment booking process Once the applicant has applied to Form GST REG- 01, it will receive an email either of the following:

• A link for OTP based Aadhaar authentication, or
• A link for booking an appointment with GST Suvidha Kendra (GSK) for authentication/verification
If the applicant receives the link for OTP-based Aadhaar authentication as per above,

He/she can proceed with the application as per the existing process. however, If the applicant receives the link for booking appointment with GSK, he / she will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail. Once the applicant gets the confirmation of appointment through e-mail, he / she will be able to visit the designated GSK as per the chosen schedule.

At the time of the visit of GSK, the applicant is required to carry the following details.
• Copy of confirmation e -mail (for booking of appointment)
• Details of jurisdiction as mentioned in the e -mail
• Aadhaar number
• Original documents that were uploaded with the application. The biometric authentication and document verification will be done at the GSK, for the individuals as per the GST application Form REG-01.

➢ The GSTN has issued the following advisory on 28 November 2023 the GST Council, in its 52nd meeting held in October 2023, recommended granting amnesty to taxpayers who could not file an appeal (u/s 107 of the CGST Act, 2017), against the demand order (u/s 73 or 74 of the CGST Act, 2017) passed on or before March 31, 2023, or whose appeal against the said order was rejected due to not being filed within the specified time limit.

• In compliance with this recommendation the government has issued notification No. 53/2023 on November 2, 2023.

• Considering the pre-requisite to deposit the admitted amount of tax, interest and penalty, it is the responsibility of the taxpayer to select the appropriate ledgers and make the payment correctly (the GST portal allows taxpayers to choose the correct mode of payment – electronic credit / cash ledger). An appeal filed without proper payment of tax, interest or penalty, may be rejected or dealt with as per the legal provisions

• In case taxpayer has already filed an appeal and wants it to be covered by the benefit of amnesty scheme, it would be required to make the differential payment to comply with Notification no. 53/2023. The payment should be made against the demand order using the ‘Payment towards demand’ facility available on the GST portal. The navigation step for making this payment is: Login >> Services >> Ledgers >> Payment towards Demand.

• Taxpayers who have previously filed an appeal, but it was rejected as time barred in APL-02 by the appellate authority, are entitled to refile the appeal. In case taxpayer faces any issue in re-filing of appeal, a ticket shall be raised on the grievance redressal portal (https://selfservice.gstsystem.in). The taxpayer shall select the category ‘Amnesty Scheme’ and the sub-category ‘Amnesty scheme- Issue in appeal filing’ while raising a ticket.

• If the appellate authority has issued a rejection order in APL-04 due to the application for appeal being time-barred, the taxpayer has to approach the respective appellate authority office well in advance to comply with the dates in the said notification. The appellate authority after checking the eligibility of the taxpayer for the amnesty scheme will forward the case to GSTN through the state nodal officer.

• For the APL 04 issued cases, no direct representations will be entertained by GSTN or through the grievance redressal portal. APL 04-issued cases have to be compulsorily forwarded through the state nodal officer.

• Post receiving the case from the state nodal officer, GSTN will enable the taxpayer to file an appeal against the concerned order.

➢ GSTN has issued an advisory on 1 December 2023 for implementation of 2FA on the GST portal nationwide starting 1 December 2023 onwards.
The 2FA helps in strengthening the login security in the GST portal. The initial rollout of 2FA has been successfully conducted in Haryana. In the 1st phase, 2FA will be implemented in Punjab, Chandigarh, Uttarakhand, Rajasthan and Delhi. The 2nd phase will include the remaining states across India. Taxpayers would need to provide a one-time password (OTP) post entering user ID and password. The OTP will be delivered to the primary authorized signatory’s mobile phone number and email address. Accordingly, taxpayers have been advised to keep their email addresses and mobile numbers of authorized signatories updated on the GST portal for receiving the OTP communication.

Companies Act, 2013/LLP Act, 2008

➢ Mandatory Pre-Requisite For E-filing Matters in NCLT

The National Company Law Tribunal has informed that all Litigants/Advocates/parties have to follow the pre-requisite outline on formatting, proper book marking Petition/Applications/Pleadings/Documents, electronic signature using e-sign, retention of originals, etc. at the time of e-filing in NCLT portal with effect from January 01, 2024.

RBI

➢ Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023

The Reserve Bank of India has introduced Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 in supersession of Notification No. FEMA 14(R)/2016-RB dated May 02, 2016.
The core of the regulations addresses how residents in India can make or receive payments from individuals outside the country. It emphasizes the role of Authorised Banks and Authorised Persons. The provision allows residents to seek the Reserve Bank’s permission for specific transactions under the Act.

➢ RBI modifies MSME lending norms

The RBI has notified amendment in Paragraph 2.2 of the Master Direction- Lending to Micro, Small & Medium Enterprises (MSME) Sector. Now, it has been directed that for Priority Sector Lending (PSL) purposes, banks shall be guided by the classification recorded in the Udyam Registration Certificate (URC). All the MSMEs are required to register online on the Udyam Registration portal and obtain a ‘Udyam Registration Certificate’.

➢ RBI issues revised instructions for inoperative accounts/unclaimed deposits in Banks

The RBI issued revised guidelines w.r.t. inoperative accounts /unclaimed deposits in banks. The central banks called for steps to trace the customers of inoperative accounts or unclaimed deposits including their nominees or legal heirs for re-activation of accounts, settlement of claims, or closure. RBI also stressed a periodic review and measures to prevent fraud in such accounts. No charges must be levied for the activation of inoperative accounts.

LABOUR LAW

➢ Employees’ State Insurance (Central) Amendment Rules, 2023

The Ministry of Labour of Employment has issued a notification to further amend Employees’ State Insurance (Central) Rules, 1950 wherein, in Rule 29(2) Proviso, for the words “rupees five crores”, the words “rupees twenty–five crores” shall be substituted.

SEBI
➢ Filing of Announcements Related to Loss of Share Certificate, Issue of Duplicate Share, Certificate Closure of Trading Window, and CIRP- NSE

The National Stock Exchange of India has advised the listed entity to file the disclosures intimating the following announcements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’) will be made available in XBRL format. with from December 09, 2023:

1. Loss of Share Certificate/Issue of Duplicate Share Certificate
2. Closure of Trading Window
3. Corporate Insolvency Resolution Process.

➢ SEBI (Listing Obligations and Disclosure Requirements) (Seventh Amendment) Regulations, 2023

The Securities and Exchange Board of India has amended the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

➢ SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2023

The Securities and Exchange Board of India has amended the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Monthly Compliance Calendar