Discontinuation of interest expense recognition based solely on the expectations of waiver or concession by the lender is a violation of the Indian Accounting Standards, the National Financial Reporting Authority (NFRA) said, cautioning against such practices by firms with regard to loans classified as NPAs. To ensure that such violations do not occur when firms make financial statements, the NFRA has issued a circular dated October 20. The idea is to draw the attention of all companies, audit committees and statutory auditors. Also, company secretaries have been advised to take note and apprise the boards of directors of companies of the issue.
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the run up to the Budget 2024, there are expectations galore that the finance
ministry could perhaps raise some of the exemption limits, which would reduce
the tax burden.
Among tax exemptions, one of the important ones is house rent allowance (HRA)
which one can claim regardless of who owns the house. In other words, even if
the house is owned by your spouse, you can claim a house rent allowance so long
as it is part of your salary.
Notably, the HRA exemption is not permitted in the new tax regime. So, in case
you want to claim the tax exemption for rent allowance, you must stick to the
old tax regime only.
If you want to know more on HRA exemption, understand the key exemptions here
as follows.
The
Central Board of Direct Taxes (CBDT) has notified the income tax return (ITR)
forms, ITR-2 and ITR-3. Many entities, including individuals, who have certain
specific types of income are required to file their ITR using these forms for
FY 2023-24 (AY 2024-25). The last date to file ITR-2 and ITR-3 is July 31,
2024. Whereas taxpayers who are required to conduct income tax audit and have
business income must file ITR-3 by October 31, 2024
Several manufacturing
companies will face uncertainty following the interim Union Budget 2024 as the
government has not specified any provision to extend the special tax rate of 15
percent applicable to new manufacturing units that begin production before
March 31, 2024.
This could potentially increase the tax outgo of some manufacturing by 7
percent, say tax experts.
According to tax experts, the budget documents are silent about extending the
applicability of the Section 115BAB of the Income Tax Act. The section provides
a beneficial tax rate of 15 percent to companies incorporated post 2019 and who
begin their manufacturing before March 31, 2024.
Ease of Doing
Business for MSMEs: The Ministry of Corporate Affairs (MCA) is continuously
working towards driving transparency and strengthening the integrity of
financial reporting in the business. The notification pertaining to the new
audit trail rule is a step in this direction. This mandate is expected to be
implemented from April 1, 2022, for companies that are registered under the
Companies Acts in India. As per the notification “Every company which uses
accounting software for maintaining its books of account, shall use only such
accounting software which has a feature of recording audit trail of each and
every transaction, creating an edit log of each change made in books of account
along with the date when such changes were made and ensuring that the audit
trail cannot be disabled.â€
Empanelment of Chartered Accountant firms/LLPs for the year 2024-2025
Online Applications are invited from Chartered Accountant firms/LLPs who desire to be empanelled with the office of the
Comptroller and Auditor General of India for the year 2024-2025 for considering for appointment as auditors of Companies as
per Sections 139(5) and 139(7) of the Companies Act 2013 and of Statutory Corporations/Autonomous Bodies as per the
provisions of their respective Acts. Online application form along with detailed instructions in this regard will be available on
the website https://care.cag.gov.in/Authorised/Default.aspx from 05 January 2024 to 15 February 2024. The applicant
firms/LLPs will have to fill/update the data showing the status of their firm as on 01 January 2024. After filling/updating the
data, the firms/LLPs will be required to generate online acknowledgement letter for the year. If the firms/LLPs fail to generate
online acknowledgment letter, their application would not be considered for empanelment. The firms/LLPs will be required
to submit a printout of the acknowledgement letter generated online and also hard copies of the documents in support of
their online application to this office by 28 February 2024
In a move aimed at improving
compliance under the goods and services tax (GST), manufacturers of pan masala
and tobacco products would have to follow a new procedure for registration and
filing monthly returns from April 1.
Based on a decision of the GST Council, the Central Board of Indirect Taxes and
Customs (CBIC) has notified a special procedure to be followed by a registered
person engaged in manufacturing of these goods for the registration and
disposal of packing machines. The move is aimed at assessing the production and
packaging facility of such units to ensure correct GST is paid as the sector is
seen to be prone to evasion.
Goods and Services Tax (GST)
authorities have dropped a plan to block generation of goods transportation
permits, or e-way bills, from 1 March for companies that fail to produce
'e-invoices' for their wholesale transactions through designated portals. These
portals aid in more accurate data capturing across various tax forms using a
standardized invoice.