Executive Summary

Income Tax

• Section 10(46) Of the Income-Tax Act, 1961-Exemptions–Statutory body/Authority/Board /Commission – Notified Body or Authority.
• Amendment in Form No. 27Q.
• Special provision for collection of Tax at Source for Non-Filer of Income Tax Returns u/s 206CCA
• Special provision for Deduction of Tax at Source for Non-Filer of Income Tax Return u/s 206AB

 

Goods And Service Tax (GST)

• Filing of information by manufacturers of Pan Masala and Tobacco taxpayers

 

Companies Act 2013/ Other Laws

• Clarification Regarding Notification Pertaining to Restricting Import of Specific Items

 

• Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees Recommendation Guidelines 2024
• SEBI amends Insider Trading norms, mandates Compliance Officer to approve/reject trading plan within 2 days of receipt
• SEBI modifies duration for call auction in pre-open session for IPOs and relisted scrips

 

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

• The Central Government hereby notifies the Mathura Vrindavan Development Authority, an authority constituted under the Uttar Pradesh Urban Planning Development Act, 1973 (President’s Act 11 of 1973), for the purposes of the (46) clause of Section 10.

 

• This notification shall be effective from the assessment year 2024-25, subject to the condition that the assessee continues to be an authority constituted under the Uttar Pradesh Urban Planning Development Act, 1973 with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act

 

AND

 

• The Central Government hereby notifies for the purposes of the said clause, ‘Real Estate Appellate Tribunal, Punjab’ (PAN AAALR2230D), a body constituted by the Government of Punjab, in respect of the following specified income arising to that body, namely: —

2017. Levy of fees/charges/fines collected under The Real Estate (Regulation and Development) Act, 2016 (Central Act No. 16 of 2016) and Punjab State Real Estate (Regulation and Development) Rules, 2017.
2018. Government Grants
2019. Interest on Bank Deposits

• This notification shall be effective subject to the conditions that Real Estate Appellate Tribunal, Punjab –

1. shall not engage in any commercial activity
2. its activities and the nature of the specified income shall remain unchanged throughout the financial years
3. 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 be applicable for Assessment Year 2023-2024 to Assessment Year 2027-2028.
• Amendment in Form 27Q

 

In exercise of the powers conferred by section 295, read with sub-section (3) of section 200 of the Income-tax Act, 1961, The Central Government hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: –

• These rules may be called the Income-tax (Sixth Amendment) Rules, 2024.
• They shall come into force on the 1st day of July 2024.

In the Income-tax Rules, 1962, the following note shall be inserted in Form No. 27Q in the Annexure, under the heading “Verification” in the Notes, after Note No. 7 ––

• ‘7A. Write “P” if lower deduction or no deduction is in view of notification issued under sub-section (1F) of section 197A.’.
• Special provision for Collection of Tax at Source for Non-Filer of Income Tax Returns u/s 206CCA

 

• Through Notification No. 46/2024/F.NO. 370142/8/2024-TPL dated 27.05.2024, Central Government notifies Reserve Bank of India to be a specified person to whom higher collection of Tax at Source will not be applicable as per Clause (ii) of the proviso to sub section (3) of Section 206CCA of Income Tax Act.
• This notification shall come into force from the date of its publication in the Official Gazette.

 

 

• Special provision for Deduction of Tax at Source for Non-Filer of Income Tax Returns u/s 206AB
• Through Notification No. 46/2024/F.NO. 370142/8/2024-TPL dated 27.05.2024, Central Government notifies Reserve Bank of India to be a specified person to whom higher collection of Tax at Source will not be applicable as per Clause (ii) of the proviso to sub section (3) of Section 206AB of Income Tax Act.
• This notification shall come into force from the date of its publication in the Official Gazette.

 

Filing of information by manufacturers of Pan Masala and Tobacco taxpayers

Referring to the Notification No. 04/2024 – Central Tax dated 05-01-2024 to seek information from taxpayers dealing in the goods mentioned therein. Two forms have been notified vide this notification namely GST SRM-I and GST SRM-II. The former pertains to the registration and disposal of machines while the latter asks for information on inputs and outputs for a month.

Form GST SRM-I meant for registration of machines, has already been made available on the portal w.e.f. 15-05-2024. Concerned taxpayers are using the same for the registration of machines and other information asked therein.

Now, the second form namely, Form GST SRM-II is also available on the portal.  Taxpayers dealing in the manufacture of Pan Masala and Tobacco products can now report the details of inputs and outputs procured and consumed for the relevant month.

 

• Clarification Regarding Notification Pertaining to Restricting Import of Specific Items

 

Directorate General of Foreign Trade has issued a policy circular for clarification regarding Notification No. 17/2024-25 dated June 11, 2024 pertaining to restricting import of specific items under ITC (HS) Codes 71131912, 71131913, 71131914, 71131915 and 71131960, Representations have been received from SEZ wherein it is clarified that import made by SEZ units (Other than FTWZ units) under the ITC (HS) Codes 71131912, 71131913, 71131914, 71131915 and 71131960 are outside the purview of this notification.

 

    Insolvency and Bankruptcy Code

 

• Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees Recommendation Guidelines 2024

 

Insolvency and Bankruptcy Board of India has issued guidelines to provide the procedure for preparing panel of Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees:

1. These guidelines may be called the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2024
2. The panel of IPs prepared as per these guidelines will be effective from 1st July 2024 to 31st December 2024.

 

• SEBI amends Insider Trading norms, mandates Compliance Officer to approve/reject trading plan within 2 days of receipt

 

SEBI has notified the SEBI (Prohibition of Insider Trading) (Second Amendment) Regulations, 2024. As per the amended norms, the compliance officer must approve or reject the trading plan within 2 trading days of receiving it. Further, the compliance officer must notify the approved plan to the stock exchanges on which the securities are listed, on the day of approval. These regulations are effective from the 90th day of publication in the Official Gazette.

 

• SEBI modifies duration for call auction in pre-open session for IPOs and relisted scrips

 

According to new modifications, the pre-open session for IPOs will be for a duration of 60 minutes i.e, from 9-10 am, out of which 45 minutes will be allowed for order entry, order modification and order cancellation and 10 minutes for order matching and trade confirmation.

 

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 01.06.2024 to 30.06.2024

 

 

Executive Summary

Income Tax

• Cost inflation Index (CII) under section 48 for financial year 2024-25
• Exemption under section 10 (46) of Income of Tamil Nadu Water Supply and Drainage Board subject to few conditions.
• CBDT releases new functionality in AIS For Taxpayers.
• CBDT issues guidelines for compulsory selection of Income-tax Returns (ITRs) for complete scrutiny during FY 2024-25

 

Goods And Service Tax (GST)

• Advisory on launch of E-Way Bill 2 Portal
• Information from manufacturers of Pan Masala and Tobacco taxpayer

 

Companies Act 2013/ Other Laws

• Relaxation of Additional Fees and Extension of Last Date of Filing of Form No. LLP BEN 2 and LLP Form No. 4D under the Limited Liability Partnership Act, 2008
• RBI decides to regularize prior issuance of partly paid units by AIFs to non-residents via compounding under FEMA
• SEBI strengthens risk management framework for Clearing Corporations (CCs);
• SEBI updates Investor Charter for stock exchanges and depositories to include new services and guidelines
• Master Circular for Issue and Listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper

• Cost inflation Index under section 48 For Financial Year 2024-25
• In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961, the Central Government hereby makes the following further amendments in the notification published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) number O. 1790(E), dated the 5th June, 2017, namely: —
• In the said notification, in the Table, after serial number 23 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

 

TABLE

 

Sl. No.	Financial Year	Cost Inflation Index
(1)	(2)	(3)
“24	2024-25	363″

 

• This notification shall come into force with effect from the assessment year 2025-26 and subsequent assessment years.

 

• Exemption under section 10 (46) of Income of Tamil Nadu Water Supply and Drainage Board subject to few conditions.

 

• 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, ‘Tamil Nadu Water Supply and Drainage Board, Chennai’ (PAN: AAALT0834F), a Board constituted under the Tamil Nadu Water Supply and Drainage Board Act, 1970 (Tamil Nadu Act of 1971), in respect of the following specified income arising to the said Board, namely: —
• Water charges for supply of water to recover the maintenance cost.
• Centage charges received from local bodies work like water supply scheme and sewerage scheme to compensate for establishment charges.
• Investigation and Detailed Project Report preparation charges for water supply and drainage scheme for establishment charges.
• Interest earned on Bank Deposits.
• This notification shall be effective subject to the conditions that Tamil Nadu Water Supply and Drainage Board, Chennai-

 

• shall not engage in any commercial activity.
• its activities and the nature of the specified income shall remain unchanged throughout the financial year(s); and
• 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 applicable from AY 2024-25 to AY 2028-29.

 

• CBDT Releases new functionality in AIS For Taxpayers

In AIS, taxpayers have been provided with a functionality to furnish feedback on every transaction displayed therein. This feedback helps the taxpayer to comment on the accuracy of the information provided by the Source of such information. In case of wrong reporting, the same is taken up with the Source for their confirmation, in an automated manner. It may be noted that information confirmation is currently made functional with regard to information furnished by Tax Deductors /Collectors and Reporting Entities.

 

The Central Board of Direct Taxes (CBDT) has now rolled out a new functionality in AIS to display the status of information confirmation process. This will display whether the feedback of the taxpayer has been acted upon by the Source, by either partially or fully accepting or rejecting the same. In case of partial or full acceptance, the information is required to be corrected by filing a correction statement by the Source. The following attributes shall be visible to the taxpayer for status of Feedback confirmation from Source.

• Whether Feedback is shared for confirmation: – This will let the taxpayer know if the feedback has been shared with the Reporting Source for confirmation or not.
• Feedback Shared on: – This will let the taxpayer know the date on which the feedback has been shared with the Reporting Source for confirmation.
• Source responded on: – This will let the taxpayer know the date on which the Reporting Source has responded on the feedback shared with it for confirmation.
• Source response: – This will let the taxpayer know the response provided by the Source on the taxpayer’s feedback.

 

• The CBDT has issued parameters and procedures for compulsory selection of ITRs during FY 2024-25, in below cases.

 

• Cases pertaining to Survey u/s 133A of the Income-tax Act
• Cases pertaining to Search & Seizure
• Cases in which notice u/s 142(1) of the Income-tax Act has been issued, but no ITR has been furnished
• Cases in which notice u/s 148 has been issued,
• Cases relating to to registration / approval of charitable trusts / institutions claiming tax exemption
• Cases involving addition in an earlier Assessment Year on a recurring issue of law / fact
• Cases relating to specific information regarding tax evasion

 

• Advisory on launch of E0way Bill 2 Portal:

GSTN is pleased to inform that NIC is releasing the E-Way Bill 2 Portal (https://ewaybill2.gst.gov.in) on 1st June 2024. This portal ensures high availability and runs in parallel to the e-way Bill main portal. The e-way bill 2 portal synchronizes the e-way bill details with main portal within a few seconds. The highlights of the portal are as follows-:

• Presently, E-Way Bill 2 Portal provides the critical services of E-Way Bill system, and gradually it will be extended with other services of e-way bill system.
• E-Way Bills can be generated and updated on the E-Way Bill 2 Portal independently.
• E-Way Bill 2 portal provides the web and API modes of operations for e-way bill services.
• The taxpayers and logistic operators can use the E-Way Bill 2 portal with the login credentials of the main portal.
• The taxpayers and logistic operators can use the E-Way Bill 2 portal during technical glitches in e-way bill main portal or any other exigencies.
• The Criss-Cross operations of printing and updating of Part-B of E-Way Bills can be carried out on these portals. That is, updating of Part-B of the E-Way bills of portal 1 can be done at portal 2 and vice versa.
• In case E-Way Bill main portal is non-operational because of technical reasons, the Part-B can be updated to the E-Way Bills, generated at Portal 1, at portal 2 and carry both the E-way Bill slips.
• For further details, please visit the e-way bill portals.

 

• Information from manufacturers of Pan Masala and Tobacco taxpayers:

The government had issued a notification to seek information from taxpayers dealing in the goods mentioned therein vide Notification No. 04/2024 – Central Tax dated 05-01-2024. Two forms have been notified vide this notification namely GST SRM-I and GST SRM-II. The former pertains to registration and disposal of machines while the later asks information on inputs and outputs during a month.

To begin with, facility to register the machines have been made available on the GST Portal to file the information in Form GST SRM-I. All taxpayers dealing in the items mentioned in the said notification may use the facility to file the information about machines. Form GST SRM-II will also be made available on the portal shortly.

 

• Relaxation of additional fees and extension of last date of Filing of Form No. LLP Ben 2 and LLP form no. 4D under The Limited Liability Partnership Act, 2008

The Ministry of Corporate Affairs (MCA) has notifed that relaxation of additional fees and extension of last date of filing of Form No. LLP BEN-2 and LLP Form No. 4 under the Limited Liability Partnership Act, 2008 in the view of transition of MCA-21 from version- to version-3. These forms shall be filed without any addition fees upto July 01, 2024.

 

• RBI decides to regularize prior issuance of partly paid units by AIFs to non-residents via compounding under FEMA

The Reserve Bank of India (“RBI”) vide its circular dated May 21, 2024 (“Circular”) has required that issuance of partly paid-up units by Alternative Investment Funds (“AIFs”) to foreign investors prior to March 14, 2024, should be regularised through compounding under Foreign Exchange Management Act, 1999 (“FEMA”). Compounding by RBI is prescribed for the contravention of foreign exchange regulations as per Foreign Exchange (Compounding Proceedings) Rules, 2000, and involve payment of a fees. In many instances, compounding requires payment of a monetary penalty to RBI.

 

• SEBI strengthens risk management framework for Clearing Corporations (CCs)

SEBI has reviewed the existing collaterals accepted by CCs and specified the prudential norms for exposure of CCs. As per the amended norms units of growth plan of overnight mutual fund schemes shall be accepted as Cash Equivalent by CCs with a haircut of 5%. Earlier, a limit of 10% was specified. The 10% haircut remains unchanged for other overnight mutual fund plans. Further, the Prudential Norms for Exposure of CCs has also been specified. The circular shall be effective from 01st Aug, 2024.

 

• SEBI updates Investor Charter for stock exchanges and depositories to include new services and guidelines

In November 2021, SEBI formulated the Investor Charter for Depositories/ Depository Participants (DPs) and Stock exchanges. It contains information on services provided to investors, such as grievance redressal mechanisms, rights and obligations of investors, etc. With the recent introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0 by SEBI, the Investor Charter has been updated to incorporate these new services.

 

• Master Circular for Issue and Listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper

The Securities and Exchange Board of India has consolidated all the applicable circulars/ directions at one place which are applicable for for Issue and Listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper, till May 21, 2024.

 

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 30.05.2024.

 

 

Executive Summary

Income Tax

• Clarification on Time Limit for verification of return of income after uploading.
• Notification of Donations to certain funds, charitable institutions, etc under Section 80G of Income Tax Act, 1961
• Partial Modification of Circular No. 3 Of 2023, Dated 28-3-2023 regarding consequences of PAN becoming inoperative as per Rule 114AAA of the Income-Tax Rules, 1962
• Section 10(46) of The Income-Tax Act, 1961 – Exemptions – Statutory Body/Authority/Board/Commission – Notified Body or Authority
• Extension of Due Date for filing of Form 10A/10AB.

Goods And Service Tax (GST)

1. Advisory Self Enablement For E-Invoicing
2. Advisory on Reset and Re-filing of GSTR-3B of some taxpayers
3. Advisory: Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1
4. Section 148 of the Central Goods and Services Tax Act, 2017 – Special Procedure for certain processes – Special Procedure to be followed by Registered Person engaged in manufacturing Notified Goods

Companies Act 2013/ Other Laws

1. RBI issues revised master circular on ‘Bank Finance to Non-Banking Financial Companies (NBFCs)

 

2. SEBI Amends Alternative Investment Funds Regulations, 2012 | Introduces a New Regulation w.r.t ‘dissolution Period’.

 

3. SEBI has removed the requirement to publish text on Contract Note with respect to Fit and Proper status of shareholders.

• Clarification Time limit for verification of return of Income after uploading.

1. The notification was issued by the DGIT(Systems) specifying the time limit for verification of Income Tax Return (ITR) as 30 days from the date of transmitting the data of ITR electronically.

It is clarified that:

• Where the return of income is uploaded and e-verification/ITR-V is submitted within 30 days of uploading – In such cases the date of uploading the return of income shall be considered as the date of furnishing the return of income.
• • Where the return of is uploaded but e-verification or ITR-V is submitted after 30 days of uploading – In such cases the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow, as applicable.
  1. The duly verifed ITR-V in prescribed format and in the prescribed manner shall be sent either through ordinary or speed post or in any other mode to the following address only:

  Centralised Processing Centre,

  Income Tax Department,

  Bengaluru – 560500, Karnataka.

  2. The date on which the duly verified ITR-V is received at CPC shall be considered for the purpose of determination of the 30 days period from the date of uploading of return of income.

   

   

  3. It is further clarified that where the return of income is not verified within 30 days from the date of uploading or till the due date for furnishing the return of income as per the Income-tax Act, 1961 – whichever is later – such return shall be treated as invalid due to non-verification.
  4. This notification will come into effect from 1-4-2024.
  • Section 80G of Income Tax Act, 1961- Deductions- Donations to certain funds, charitable institutions, etc.

  In the exercise of the powers conferred by clause (b) of sub-section (2) of section 80G of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies “Shree Ramanuj Kot Laxmi Venkatesh Mandir” managed by Shree Ramanuj Kot Trust, Indore, Madhya Pradesh (PAN: AAATR0970L) to be place of historic importance and a place of public worship of renown throughout the state of Madhya Pradesh for the purposes of the said section.

   

  The Notification will be valid only for the renovation or repair of the “Shree Ramanuj Kot Laxmi Venkatesh Mandir” to the extent of Rs. 1,63,06,311/-(Rupees One Crore Sixty-Three Lakhs Six Thousand Three Hundred and Eleven only) and will cease to be effective after the said amount has been collected or on 31-3-2029, whichever is earlier

  • Partial Modification of Circular No. 3 of 2023, Dated 28-03-2023 in regard to consequences of PAN become in operative as per Rule 114AAA of the Income Tax Rules

  In partial modification and in continuation of circular no. 3 of 2023 hereby specifies that for the transactions entered into upto 31-03-2024 and in cases where the PAN becomes operative (as a result of linkage with Aadhaar) on or before 31-05-2024, there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC, as the case maybe, and the deduction/collection as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the Act, shall be applicable.

   

  • 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, ‘Kerala Autorickshaw Workers Welfare Fund Scheme, Kollam’ (PAN: AAATK3080E), a Board constituted by the Government of Kerala, in respect of the following specified income arising to the said Authority, namely: —
  • Grant received from the State Government of Kerala.
  • Contribution received from the workers registered as members in the Scheme.
  • Contribution received from self-employed persons and employers for workers, registering as members of the Scheme.
  • Registration Fees
  • Interest earned on Bank Deposits.
  2. This notification shall be effective subject to the conditions that Kerala Autorickshaw Workers Welfare Fund Scheme, Kollam, –
  • shall not engage in any commercial activity.
  • activities and the nature of the specified income shall remain unchanged throughout the financial years.
  • 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 applied from assessment year 2024-25 to 2028-29.
  • Extension of Due Date for filing of Form 10A/10AB.

  CBDT extends the due date for filing of Form 10A/10AB under the Income Tax Act, 1961 up to 30^th June 2024 in respect of certain provisions of section 10(23C)/ section 12A/ section 80G/ and section 35 of the Act.

 

• Self-Enablement For E- Invoicing:

 

The Central Government, on the recommendations of the Council, introduced that if your turnover exceeds INR 5 crores in the financial year 2023-2024, you will be required to start e-Invoicing from the next financial year, i.e., from 1st April 2024 onwards. It may also be noted that the same is applicable if the threshold is crossed in any of the proceeding financial years too.

 

For those who meet the notification criteria but have not yet been enabled on the portal, you can self-enable for e-Invoicing by visiting https://einvoice.gst.gov.in and start reporting through any of the 4 new Invoice Registration Portals (IRPs) – from e-Invoice IRP 3 to e-Invoice IRP 6.

 

• Reset and Re-filing of GSTR-3B of some taxpayers:

This has reference to the facility for re-filing of GSTR-3B for some of the taxpayers. It was noticed that there were discrepancies in the returns of some taxpayers during the filing process between the saved data in the GST system and filed data in the fields of ITC availment and payment of tax liabilities. The matter was examined and deliberated by the Grievance Redressal Committee of the GST Council and as a facilitation measure the Committee decided that these returns shall be reset, to give opportunity to such taxpayers to correct the discrepancy.

Accordingly, only the affected taxpayers have been communicated on their registered email-ids and the affected returns are visible on their respective dashboards for the purpose of refiling with the correct data. The taxpayers who have received such communication are requested to visit their dashboard and re-file their GSTR-3B within 15 days of receipt of such communication.

 

 

 

• Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1

There is a new feature to auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 is now available on the GST portal. This allows for direct auto-drafting of HSN data into Table 12 based on e-Invoice data. The HSN-wise summary data auto-populated into Table 12 is intended for your convenience. Before its submission, kindly ensure to reconcile the data with records.

Any discrepancies or errors should be manually corrected or added to Table 12 before final submission.

 

• Section 148 of the Central Goods and Services Tax Act, 2017 – Special Procedure for certain processes – Special Procedure to be followed by Registered Person engaged in manufacturing Notified Goods

In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017, the Central Government, on the recommendations of the Council, hereby makes the following amendments in the Notification No. 4/2024-Central Tax, dated the 5th January, 2024 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), namely: —

 

In the said notification, in para 4, for the words and letters “1st day of April, 2024”, the words and letters “15th day of May, 2024” shall be substituted.

 

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

 

• RBI issues revised master circular on ‘Bank Finance to Non-Banking Financial Companies (NBFCs)

 

RBI has issued the revised Master Circular on ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’. This circular consolidates all instructions issued up to 23.04.2024. The purpose is to outline the RBI’s regulatory policy regarding the financing of NBFCs by banks. This circular applies to all Scheduled Commercial Banks (excluding RRBs). It highlights norms regarding bank finance to NBFCs registered with RBI, NBFCs not requiring registration and activities not eligible for bank credit.

 

• SEBI Amends Alternative Investment Funds Regulations, 2012 | Introduces a New Regulation w.r.t ‘dissolution Period.’

SEBI has notified the SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2024. As per the amended norms, a new regulation 29B relating to the dissolution period has been inserted. It states that a scheme of an Alternative Investment Fund may enter a dissolution period in the manner and subject to the conditions specified by the Board. Further, SEBI has introduced definitions of ‘dissolution period’ and ‘encumbrance’ under Regulation 2 of existing regulations.

 

• SEBI has removed the requirement to publish text on Contract Note with respect to Fit and Proper status of shareholders.

SEBI vide circular dated April 24, 2024, in order to promote ease of doing business has removed the requirement to publish text on Contract Note with respect to Fit and Proper status of shareholders. In lieu of text only a reference of the applicable regulation regarding fit and proper status of shareholders needs to be made part of the contract note.

 

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 30.04.2024.

 

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.

 

S.No.	Category of Account	Rate of Interest (per cent. Per annum)
1.	One-Year	6.9
2.	Two-Years	7.0
3.	Three-Years	7.1
4.	Five-Years	7.5

 

• 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

Assessment Year/s (A.Y.) to which the entries of outstanding tax demands as on 31st January 2024 pertain	Monetary limit of entries of outstanding tax demands which are to be remitted and extinguished.                     (in Rupees)
Upto A.Y. 2010-11	Each demand entry up to Rs. 25,000/-
A.Y. 2011-12 to A.Y. 2015-16	Each demand entry up to Rs. 10,000/-

 

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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