Large Educational Trusts at Risk of Losing Tax Exemption

Oct 29, 2022

Several high net worth charities and trusts run the risk of losing their tax-exempt status, owing to two recent Supreme Court (SC) rulings, unless they undertake suitable internal restructuring, tax experts said. However, since the rulings are prospective in operation, these entities won’t need to pay higher amounts as taxes, for this reason, for past periods.
In a ruling on October 19,2022 the SC held that educational institutions or trusts can claim benefits of tax exemptions only if they ‘solely’ engage in education and not in any other activity of profit. For this, they cannot even have objects unrelated to education, the apex court ruled, adding that if the objective of an institution appeared to be profit-oriented, such institutions could not get approval under Section 10(23C) of the Income Tax Act.

Income Tax

Taxman Wants More Data to Drive Voluntary Compliance

Nov 12, 2022  The tax compliance requirements for companies are changing as the tax department wants more information. It will, therefore, be the responsibility of companies to provide all necessary data including detailed information on partners and suppliers. In such a scenario, reporting will increasingly be driven by technology. “The tax compliance processes have to be embedded in the internal business processes for each taxpayer. The degree of integration will depend on the size of business or the specific sectors,” said Sanjeev Singh, Principal Commissioner of Income Tax, Bangalore.

Income Tax

ICAI to Conduct First Placement Program for Women, Registration Date upto 15th October,2022

Oct 12, 2022
ICAI to conduct first placement program for women CAs, registration ends Oct 15,2022. ICAI will conduct the first placement program for women CAs across the country. The registration process will end on October 15, 2022. The Institute of Chartered Accountants of India, ICAI will conduct first placement program for women Chartered Accountants in India. All women Chartered Accountants (not holding full time COP) having obtained membership as on September 30, 2021 or prior to that are eligible to participate. The registration will end on October 15, 2022 at cmib.icai.org. This is the first ever placement program which is specially designed for women members in industry by ICAI through its Committee for Members in Industry & Business (CMI&B) and Women Members Empowerment Committee (WMEC). With this placement drive, women will be able to explore opportunities to work on flexi-time/ part-time/ work from home.
The registration process was started on October 6, 2022 and the online psychometric and written test will be conducted on October 27. The interview will be conducted on October 31 at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Jaipur, Kolkata, Mumbai & Pune and on November 1, 2022 at Bhubaneswar, Chandigarh, Coimbatore, Durgapur, Ernakulum, Indore, Kanpur, Nagpur, Noida, Rajkot, Thane & Visakhapatnam. Interested candidates can register for the placement by paying ?1000 plus 18 percent GST as registration cum participation fee which is non refundable. 

General

Extension of the Last Date for submission of application for Empanelment of Chartered Accountants firms/LLPs for the year 2022-23

14th February, 2022
Considering the difficulties faced by Chartered Accountant firms/LLPs in submitting the online empanelment for audit of PSUs for the year 2022-23, the O/o C&AG on the request of ICAI has extended the last date for submission of online application from 15th February, 2022 to 22nd February, 2022 as a onetime relief. Further, the last date for submission of hard copies of the documents remains unchanged i.e. 28th February, 2022. 

Professional Development Committee
The Institute of Chartered Accountants of India

General

Special Cell to Hear Cases against CAs for Registering Chinese Shell Firms

September 20, 2022
Saying that a special cell has been constituted under the Disciplinary Committee to examine the nature of offences of Chartered Accountants involved with Chinese companies, President of Institute of Chartered Accountants of India(ICAI) Debashis Mitra said that the cases are likely to be disposed of at the end of the year on a fast track basis. “We have compiled a list of companies where CAs were involved and have issued notices to all of them,” he said.

Recently, the Ministry of Corporate Affairs (MCA) proposed amendments to the Companies Act that proposes to mandate joint audits for a certain class of companies

Explaining the process, he said first a notice is said to the accused CA. When he/she replies, the Director of Discipline committee has to determine whether the person is prima facie guilty or not. The President also informed the media persons that there have been 400 cases this year related to misconduct of Chinese companies. Out of those accused, 50 percent of them are CAs. Commenting on the nature of the alleged misconduct of CAs, he said that some Chinese companies had registered the address of a particular place on paper but in reality their office did not exist there. Some shell companies were also formed by giving the address of the CA’s as the address of the company. “There are a substantial number of such cases. How many exactly I cannot comment on. But these cases will likely be disposed of in 3-4 months.

General

Representation submitted to "Fluid Control Research Institute, Palakkad" for revising their tender for appointment of Chartered Accountant firm for Statutory Audit

Nov, 03 2022

A representation PD /A-339/2022/90 dated 03rd November 2022 sent to the Director for revising their tender for appointment of Chartered Accountant firm for Statutory Audit regarding mentioning of minimum fee.

Audits

Finance Ministry say, "Taxpayers check AIS quarterly & report discrepancies"

• Nov 08, 2022
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Taxpayers should check their annual information statement every quarter and flag any discrepancies to help curb instances of wrongful HRA deductions, a senior Finance Ministry official said.The income tax department had in November last year rolled out a new Annual Information Statement (AIS) on its portal that provides a comprehensive view of taxpayer information and an option to submit feedback.

Income Tax

Change Your Income Tax Regimes While Filing Revised ITR

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  Nov 11, 2022

After filing income tax return (ITR), you might realise that you have forgotten to report certain incomes or that the tax payable in the other tax regime is lower than what has been paid. The question then is can you switch your income tax regime (old to new or vice versa) while filing a revised income tax return?
ET Wealth spoke to various tax experts and Chartered Accountants to shed more light on this issue. Do read it, but also remember that the last date of filing revised ITRs is December 31, 2022, for FY 2021-22 (AY 2022-23).If you are filing or have filed belated income tax return, then you are not eligible to opt for new income tax regime as per income tax laws. Hence, if you revise your belated ITR, then also you cannot opt for new tax regime. 

Income Tax