AOC-4 Date Extended

It has been decided that no additional fees shall be levied upto *15.02.2021* for the filling of e-forms AOC-4, AOC-4 (CFS), AOC-4 XBRL and AOC-4 Non-XBRL in respect of the financial year ended on 31.03.2020.


Link: http://mca.gov.in/Ministry/pdf/GeneralCircularNo.4_29012021.pdf

Mega Investment Textiles Parks (MITRA)

Mega Investment Textiles Parks (MITRA) scheme to be Launched

Highlights

1.The scheme will enable the textile industry to become globally
competitive.
2.It will help the industries to attract large investments and boost
employment generation besides boosting the exports.
3.The scheme will help in creating a world class infrastructure with
plug and play facilities. This in turn will create global champions in
exports.
4.MITRA scheme will be launched in addition to the Production Linked
Incentive Scheme (PLI).

MCA Amends The Definition of Small Companies

The ministry of corporate affairs (MCA) has amended definition of the
small companies by amending the Companies Rules. The new amendment
allows the non-resident Indians (NRIs) to incorporate one person
companies (OPCs) in India.

Highlights

1. The changes were announced by finance minister Nirmala Sitharaman
during the presentation of Union budget.
2.These changes will come into effect from April 1.
3.The notification also highlights that the epaid-up capital and the
turnover of the small company shall not exceed respectively rupees two
crores and rupees twenty crores.
4.Earlier, the definition was based on the thresholds defined by the
Companies Act.
5.The companies act had mentioned a maximum paid up capital of Rs 50
lakh and turnover of Rs 2 crores.

Budget Features And Facts Thereof

BUDGET 2021

1. Big Reform Push in Banking, Insurance.
2. FM breaks Taboos, Puts Economy on Turbo Charge.
3. Infra, Jobs Focus to Put FMCG in Fast Lane.
4. Cheaper gold, Silver Jewellery to Add Glitter to Marriage Season.
5. Phones May Cost More
6. Gold Coins Get Cheaper.
7. Palm oil Prices to Rise.
8. Taxpayers who are above 75 years with only pension and interest
income won’t have to file their tax returns.
9. Boost for Homebuyers.
10. Time limit for reopening of income tax assessment cut to 3 years.
11. FM sets out big ideas to bring in First – time Investors
12. Luxury Car Prices to Sprint Once Again
13. Imported Tipple may not Pinch.
14. Expect More Power Suppliers.
15. Ujjwala scheme offering free cooking gas connection to poor families
extended to one crore more households.
16. 100 more districts for city gas distribution network.
17. A natural gas pipeline project to be started in Jammu & Kashmir.
18. Relief for SWF/Pension Funds.
19. Pushing Digital Transactions.
20. Respite from Double Taxation.
21. Custom duties have been increased on certain auto components, parts
of mobile phones and solar panels.
22. Taxman can go back only Three Years to Scrutinise Any Lapses in
small Cases.
23. Budget has eased taxes on dividends for overseas investors and
upcoming instruments like Real Estate Investment Trust and
Infrastructure Investment Trust.
24. No depreciation will be available on goodwill though the amount paid
for acquiring it shall be allowed on its sale.
25. TDS on dividend income reduced to FPIs
26. Several treaties like India – Singapore have dividend tax rates of
10-15%.
27. No TDS on dividend payments to REITs and InvITs.
28. Tax Rates Unchanged, but Changes in Proposals to Have a Big Impact.
29. LIC policy holders will be eligible to subscribe to the insurer’s
IPO at a discounted price.
30. A Rightful Focus on Local Output, Creating Jobs.
31. Putting Faith in Private Investor’s ability to Power The Economy.
32. All set to make India Aatmanirbhar and Global.
33. Govt. will roll up its sleeves on disinvestment in banks and
insurance cos, monetize real estate with PSUs
34. Maximising Impact : Fewer centre-sponsored schemes.
35. Jal He Jeevan Hai: Keeping Air, Water & Roads Clean.
36. Enhancing EoDB: Quick Resolution of Contract Tiffs.
37. Weaving In Progress: Mega Textile Parks Scheme.
38. FM opens Govt Spending Tap for Revival.
39. More Small Cos to Bear Lower Compliance Burden Now.

FINE PRINT

  • Fake invoice or sham trasactions: To discourage fraud in cases
  • involving fake invoicing or sham transactions of over 2crore, tax
  • department will have power to attach assets.
  • Faceless appellate tribunal: After faceless assessment, even income-
  • tax appellate tribunal being made faceless and jurisdiction reduced to
  • make administration more friendly.
  • Non- deposit to labour welfare funds: No deductions to be allowed if
  • employer is late in depositing employee contribution towards welfare
  • funds. This will encourage timely deposit by employers.
  • TDS on purchase of goods: 0.1% TDS on purchase transaction of over 50
  • lakh in a year in case the total turnover exceeds 10crore. It’s another
  • measure to widen tax net.
  • BAR instead of AAR: Authority of Advance Ruling to be replaced with
  • Board of Advance Ruling for faster disposal of cases. Appeal against
  • order with high court.
  • Tax free Disinvestment transfer of assets by PSU to resulting company
  • to be a tax- neutral demerge.
  • Tax liability term “Liable to tax” defined to provide certainty.
  • Tax holiday for affordable housing extended up to March 31, 2022.