Professional Updates

The Government of Maharashtra has published the State List of Holidays for the year 2024 -In exercise of the powers of Central Government under section 25 of the Negotiable Instruments Act, 1881 (XXVI of 1881) entrusted to it by the Government of India, Ministry of Home Affairs vide its Notification No.39/I/68/JUDI-III, dated the 8th May, 1968, the Government of Maharashtra hereby declares the following days as Public Holidays in the State of Maharashtra during the calendar year 2024: Sr.No. Holiday Date Saka Date Day 1 Republic Day 26th January 2024 6 Magh, 1945 Friday 2 Chhatrapati Shivaji Maharaj Jayanti 19th February 2024 30 Magh, 1945 Monday 3 Mahashivratri 8th March 2024 18 Phalguna, 1945 Friday 4 Holi (Second Day) 25th March 2024 05 Chaitra, 1946 Monday 5 Good Friday 29th March 2024 09 Chaitra, 1946 Friday 6 Gudhi Padwa 9th April 2024 20 Chaitra, 1946 Tuesday 7 Ramzan-Id (Id-Ul-Fitr) (Shawal-1) 11th April 2024 22 Chait

Trust audit submission due date extended for the FY 2022-23 Charity Commissioner of Maharashtra has extended due date for submitting trust accounts online for the FY 2022-23. Extended due date vide Circular No 603 dated 27/09/2023 is 30th November 2023. Trust Audit The trustee shall get the accounts audited within six months of the date of balancing the accounts (generally 31st March) under section 33 (1) of the Maharashtra Public Trusts Act 1950. Take benefit of such extension and ensure timely compliance. Several thousand trusts and societies have been de-registered by  the charity commissioner on account of failure to submit annual audited accounts. Trust Audit is an important compliance to keep your trust active with Charity Commissioner. Here is the circular no 603 of extension of due date for online submission of trust accounts for the FY 2022-23. #TrustAudit2022-23

MCA grants one time relaxation in filing LLP form-3, Form-4 &Form-11 Due to technical glitches, certain Limited Liability Partnerships (LLPs) were unable to submit their Form 11, Form 3, and Form 4 within the stipulated timeframe. Consequently, the Ministry of Corporate Affairs (MCA) has chosen to provide a special one time concession by waiving off additional fees for these LLPs. Here are the key points of General Circular No 08/2023 dated 23/8/2023 to note: ✅Simplified Processing: Form-3 and Form-4 submissions will undergo a Straight Through Process (STP) mode, except for alterations in business activities. It's recommended to file these forms sequentially, starting with older event dates, to ensure accurate master data updates. ✅ Pre-filled Data with Edit Option: When filing these forms, pre-filled data aligned with the existing master data of the LLP will be provided. However, this data can be edited as needed. Responsibility for accurate data lies with the stakeholders.

In the dynamic landscape of the Goods and Services Tax (GST) era, the concept of electronic invoicing, commonly known as e-invoicing, has emerged as a game-changer . With the aim of fostering transparency, reducing errors, and simplifying tax compliance, e-invoicing has gained substantial traction among businesses. While many are now acquainted with its application for regular invoices, there exists a significant lack of awareness regarding its extension to debit and credit notes .  What is e-invoice ? E-invoicing under the Goods and Services Tax (GST) system refers to the digital creation of business-to-business (B2B) invoices. These invoices are formatted in accordance with the standardized e-invoicing structure approved by the Goods and Services Tax Network (GSTN). The purpose of this standardized format is to ensure uniformity and consistency in the presentation of invoices before they are uploaded onto the GST portal. As per Rule 48(4), notified person has to prepare invoice by up

Maharashtra minimum wages July 2023 The Minimum Wages Act is applicable to any establishments / industries / factories / employment either registered under the shops & establishment Act or the Factories Act,  irrespective to the strength of employment . That is even if anybody  employs an one employee he has to pay Minimum Wage .  The term Minimum Wage includes the Basic Wage plus Special allowance, as prescribed & published by Labour department, time to time for a given schedule of employment. Brief summary of the Minimum Wages Act in Maharashtra for easy understanding: Maharashtra minimum wages are set by the state government and can vary depending on the type of work and the skill level required. The minimum wages in Maharashtra are reviewed and revised periodically by the state government. The wages are determined by the labor department and relevant authorities. Employers in Maharashtra are legally required to pay their employees at least the state-mandated minimum wage. F

Is license required to play music at Weddings or Religious Ceremony? PUBLIC NOTICE : No. P-24029/56/2023-IPR-VII dated 24th July 2023 Department of Promotion of Industry and Internal Trade (DPIIT) has received several complaints, representations, grievances from the general public as well as other stakeholders about alleged collection of royalties by the Copyright Societies for performance of musical work, communication to the public of sound recording etc. in marriage functions in contravention to letter and spirit of Section 52 (1) (za) of Copyright Act 1957. It is well known that Section 52 of Copyright Act 1957 enumerates certain acts which shall not constitute an infringement of Copyright. Section 52 (1) (za) specifically mentions the performance of a literary, dramatic, or musical work or the communication to the public of such work or of a sound recording in the course of any bonafide religious ceremony or an official ceremony held by the Central Government or the State Gover

Are you a resident tax filer as per Indian Income tax laws? Do you hold any foreign assets? If yes then this write is for you! For residents in India with foreign bank accounts, assets, or income, filing the Income Tax Return (ITR) can be more complex than for others. The Foreign Asset Schedule is an essential part of the ITR , and non-disclosure can lead to severe penalties under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. This blog sheds light on the importance of complying with foreign asset disclosure and the consequences of non-compliance. Who Needs to File the Foreign Asset Schedule? As per Indian tax regulations, residents in India who possess foreign bank accounts, assets, or receive income from abroad as beneficial owner, beneficiary or legal owner must file the Foreign Asset Schedule along with their ITR. However, this requirement does not apply to individuals categorized as 'not ordinarily resident' or 'non-resident.

Essential data safety tips for Chartered Accountants Protecting sensitive financial information is crucial for chartered accountants. With clients entrusting their financial records and personal details, establishing robust data security measures is imperative. In this blog, we will explore comprehensive data security practices, encompassing physical security, network security, access controls, employee awareness, and regulatory compliance. By implementing these measures, chartered accountants can safeguard client data, maintain trust, and protect their reputation in the industry. Strong Password Management: Use strong, unique passwords for all your as well as clients Digital Signature Certificates,  accounts such as mail, Income tax-GST portal etc. and encourage your staff to do the same. Implement two-factor authentication (2FA) wherever possible to add an extra layer of security. Secure Physical Access: Limit access to your office or workspace using locks, surveillance cameras, and

Format of Engagement letter for filing income tax return In my previous article , I emphasized the significance of obtaining an engagement letter for any professional work. It serves as a crucial document that outlines the terms and conditions of the engagement between the service provider and the client.  In this post, I have included a draft format of an engagement letter for ITR filing. You can refer to this template to ensure that all the necessary elements are included in your engagement letter. Remember to review and modify it according to your specific requirements. Draft format of engagement letter for filing income tax return: To, Mr. Mayur , Thank you for choosing our firm, [Consultant's Name], to assist you with your income tax returns. This letter confirms the terms of our engagement and outlines the nature and extent of the services I will provide. Please review the following information regarding our engagement: Scope of Services: I will prepare your income tax return

Important changes w.r.t Liberalised Remittance Scheme (LRS) and Tax Collected at Source (TCS) In the Budget this year, certain changes were announced to the system of Tax Collection at Source (TCS) on payments under the Liberalised Remittance Scheme (LRS) and on overseas tour program packages. These were to take effect from 1st July 2023. shall now come into effect from   1st October, 2023. Revised TCS rates on foreign remittance applicable from October 1st, 2023 : The increase in TCS rates; which were to come into effect from 1st July, 2023 shall now come into effect from 1st October, 2023. Till 30th September, 2023, earlier rates (prior to amendment by the Finance Act 2023) shall continue to apply. Comparison of earlier and new TCS rates on foreign remittance Nature of Payment Earlier Rate up to 30th Sept 2023 New Rate from 1st Oct 2023 Upto Rs 7 lakh Above Rs 7 lakh Upto Rs 7 lakh Above Rs 7 lakh LRS for education financed by

Avoid filing ITR for Free: Don't fall for the Trap! Ever come across claims like " File your ITR for free " or " File ITR for just Rs 99 "? If such offers sound too good to be true, you're not alone. This blog aims to shed light on why these claims can be misleading and the underlying reasons behind them Filing your Income Tax Return (ITR) is a crucial task that every taxpayer must undertake. Even though your income is not below taxable limit, filing ITR has its own benefits. While the idea of filing ITR for free may sound appealing , it's important to be cautious and avoid falling into the trap of free ITR filing services that may not deliver the expected results. In this blog, we will delve into the pitfalls of free ITR filing and provide you with valuable insights to ensure you make informed decisions when it comes to filing your taxes. The Risks of Free ITR Filing Services: Explained the potential drawbacks of relying on free ITR filing services: 1 .

The Risks and Consequences of Filing Fake Deductions and Exemptions on Your Income Tax Return Filing an income tax return is an essential responsibility for every taxpayer, and it's crucial to approach this process with integrity and honesty. While the prospect of claiming fake deductions or exemptions may seem tempting to reduce your tax liability, it's important to understand the severe risks and consequences associated with such actions. In this blog post, we'll explore why taxpayers should never claim fake deductions or exemptions on their income tax returns. What is a fake tax refund? A fake tax refund is a refund that is claimed by a taxpayer who has not actually overpaid their taxes. This can be done by providing false information, deductions, exemptions on their tax return that they are not entitled to. Why should taxpayers not claim fake refunds? There are a few reasons why taxpayers should not claim fake refunds. First, it is illegal . The ITD has strict rules aga

MCA Extends Form DPT-3 Filing Deadline, Saving Companies from Additional Fees The Ministry of Corporate Affairs (MCA) has recently announced a significant development regarding the filing of Form DPT-3 (Return of deposits). In light of the transition from Version-2 to Version-3 of the MCA-21 Portal, companies now have an extended deadline to submit their Form DPT-3 without incurring additional fees. This move aims to provide businesses with ample time to adapt to the new portal and fulfill their compliance obligations seamlessly. Let's delve into the details. By extending the deadline, the MCA aims to facilitate a smooth transition for businesses, allowing them to familiarize themselves with the updated system and avoid any undue rush or confusion. Existing deadline for filing DPT-3 was 30th June 2023,  new Deadline is 31st July 2023 In a welcome relief to businesses, the MCA vide General Circular no.06/2023 dated 21st June 2023 has granted an extension for filing Form DPT-3 for

Clarification on MahaRERA Project Registration Introduction: In a bid to address the challenges faced by home buyers, promoters, and developers during the registration of Agreement for Sale/Sale Deed for real estate projects, MahaRERA (Maharashtra Real Estate Regulatory Authority) has issued a crucial clarification through Circular No. 25/2019. This circular aims to provide guidance on real estate projects that are exempted from MahaRERA Project Registration, as per the provisions of the Real Estate (Regulation and Development) Act, 2016. However, despite the issuance of this circular, some promoters have encountered difficulties while registering the Agreement for Sale/Sale Deed and obtaining bank finance for certain projects. To address these concerns, MahaRERA has issued a further clarification on June 09,2023 , which we will explore in this blog post. Background: Circular No. 25/2019, dated 11.10.2019, was issued by MahaRERA in response to complaints and inquiries from both home b

Revised instructions for Joint request under paragraph 26(6) of the EPF Scheme 1952   The Joint Declaration allows an employee to contribute to the EPF scheme even if their salary exceeds the maximum wage limit i.e. Rs. 15000/-. In simple words employees having salary above 15000/- can also become epf member and contribute to EPF scheme with upon filing joint request with EPFO. EPF contribution is mandatory for every employee with salary below Rs.15000/- if he works in a organization registered under EPFO. A Joint request is a document that is signed by an employee and their employer to voluntarily contribute to the Employees' Provident Fund (EPF) scheme. The Joint Declaration is made under Para 26(6) of the EPF Scheme, 1952. Benefits of Joint Declaration under para 26(6) of the EPF Scheme 1952 There are several benefits to making a Joint Declaration under Para 26(6) of the EPF Scheme, 1952. These benefits include: The ability to contribute to the EPF scheme even if your salary exc

Revised monetary limit for   the condonation of delay in filing refund claim and claim of carry forward of losses   The CBDT has issued Circular No. 07/2023 dated May 31, 2023 regarding the condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the Income-tax Act, 1961 (“the IT Act”).   Circular No. 09 of 2015 (the Circular) dated June 09, 2015 in F. No. 312/22/2015-OT by Central Board of Direct Taxes (the Board)  prescribed comprehensive guidelines on the conditions and procedure to be followed for deciding applications for condonation of delay in filing Returns of Income (RsOI) claiming refund and RsOI claiming carry forward of loss and set- off thereof under section 119(2)(b) of the Income-tax Act, 1961 Now, vide Circular No 07/2023, The CBDT has updated the monetary limits for condonation of delay in filing refund claims and carry forward of losses  as under: The competent authority will accept or reject refund claim or carry f

CBDT vide notification No 31/2023 dated 24/05/2023 have increased threshold exemption limit prescribed under clause II of section 10 (10AA).  The tax exemption on leave encashment of non-government salaried employees (in respect of the period of earned leave at his credit at the time of his retirement, whether on superannuation or otherwise) was earlier upto a limit of Rs.3 lakh only under section 10(10AA)(ii) of the Income-tax Act,1961(the Act). Now the limit has been increased to Rs. 25 lakhs.  This change is applicable w.e.f. 01/04/2023. Now non-government employees can claim leave encashment exemption up to Rs 25 lakhs subject to fulfilment of conditions under section 10(10AA) of the Income tax act 1961. The aggregate amount exempt from income-tax under section 10(10AA)(ii) of the Act shall not exceed the limit of Rs. 25 lakh  where any such payments are received by a non-government employee from more than one employer in the same previous year. Further, the amount exempt from inc

PF payment due dates for the FY 2022-23 for the purpose of tax audit reporting Reporting under clause 20 (b) of Form 3CD requires due dates of payment to various Employees contribution fund. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va) " Here " due date " means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Most commonly reported funds under the clause 20(b) are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2022-23 for quick reference. PF payment due dates for the FY 2022-23 Period Due Date Day Extended D