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: –
- This Scheme may be called the National Savings Time Deposit (Amendments) Scheme, 2024.
- It shall be deemed to have come into force on the 1st day of January 2024.
- 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: –
- a) This Scheme may be called the Sukanya Samridhi account (Amendment) Scheme, 2024.
- b) It shall be deemed to have come into force on the 1st day of January 2024.
- In the Sukanya Samriddhi Account Scheme, 2019, in paragraph 5: –
- 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;
- 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.
- 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.
- 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.
- 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
