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CBDT clarifies provisions under Finance Act 2023 relating to donations made by a trust / institution to another trust / institution for purposes of application of income

MASTI

CBDT clarifies provisions under Finance Act 2023 relating to donations made by a trust / institution to another trust / institution for purposes of application of income


Any trust or institution registered u/s 12AA or 12AB of the Income Tax Act 1961 is exempt, subject to the fulfilment of certain conditions

Posted On: 06 MAR 2024 4:50PM by PIB Delhi

Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in specified sub-clauses of section 10 (23C) of the Income-tax Act, 1961 (the ‘Act’) or any trust or institution registered under section 12AA/12AB of the Act is exempt, subject to fulfilment of certain conditions specified under various sections of the Act.

Finance Act, 2023 provided that donations made by a trust / institution (other than towards corpus) shall be treated as application for charitable or religious purposes only to the extent of 85% of such donations.

Representations have been received by the Central Board of Direct Taxes (CBDT) raising concerns as to whether the balance 15% of donation to other trust / institution would be taxable or would be eligible for 15% accumulation, since the funds would not be available, having been already disbursed.

CBDT has examined the matter with reference to the issues raised above. Vide Circular No. 3/2024 in F.No.370142/5/2024-TPL dated 06.03.2024, issued today, the matter has been clarified by illustrative examples, for lucid understanding. The said Circular is available on circular-3-2024.pdf (incometaxindia.gov.in).

CBDT Circular No. 3/2024 dated 06.03.2024

MASTI

CBDT clarifies provisions relating to donations made by a trust / institution to another trust / institution for the purposes of application of income. Circular No. 3/2024 dated 06.03.2024 issued, providing clarity on the issue with illustrative examples. The Circular is available on :https://incometaxindia.gov.in/communications/circular/circular-3-2024.pdf

CBDT Circular No. 2/2024 dated 05.03.2024

MASTI

Income of certain trusts/institutions as specified u/s 10(23C) or u/s 12AA/12AB of the Income – tax Act, 1961 is exempt, subject to certain conditions. Such entities are required to get their accounts audited & furnish the audit report in Form 10B/10BB before the specified date. Since, incorrect audit reports were furnished in numerous cases which could result in denial of exemption & subsequent creation of tax demand, CBDT allows such trusts / institutions to furnish the audit report in the applicable Form No. 10B / 10BB on or before 31st March, 2024. CBDT Circular No. 2/2024 dated 05.03.2024 issued.

CBDT allows certain trusts / institutions to furnish the audit report in the applicable Form No. 10B / 10BB on or before 31st March, 2024

MASTI

CBDT allows certain trusts / institutions to furnish the audit report in the applicable Form No. 10B / 10BB on or before 31st March, 2024

Posted On: 05 MAR 2024 7:20PM by PIB Delhi

Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in specified sub-clauses of section 10 (23C) of the Income-tax Act, 1961 (the ‘Act’) or any trust or institution registered under section 12AA/12AB of the Act is exempt, subject to fulfilment of certain conditions specified under various sections of the Act.

One of the conditions required to be fulfilled by the trust or institution in order to be eligible to claim exemption, is, that it is required to get its accounts audited and furnish the audit report in the prescribed Form No. 10B / 10BB before the specified date.

It has come to the attention of the Central Board of Direct Taxes (CBDT) that in a number of cases trusts / institutions have furnished audit report in Form No. 10B, where Form No. 10BB was required to be furnished for the A.Y. 2023-24. Similarly, in a number of cases trusts / institutions have furnished audit report in Form No. 10BB, where Form No. 10B was required to be furnished for the A.Y. 2023-24.

It is stated that, non-furnishing of audit report in the prescribed form would result in denial of exemption in such cases, as it is one of the conditions which is required to be satisfied for claim of exemption. The denial of exemption on this account may result in creation of tax demand.

In view of the above, the CBDT has allowed those trusts / institutions which have furnished audit report on or before 31st October, 2023 in Form No. 10B where Form No. 10BB was applicable and vice-versa, to furnish the audit report in the applicable Form No. 10B / 10BB for the A.Y. 2023-24, on or before 31st March, 2024.

CBDT Circular No. 2/2024 in F.No.370142/6/2024-TPL dated 05.03.2024 has been issued. The said Circular is available on www.incometaxindia.gov.in.

CBDT Press Release: Promoting Voluntary Compliance through e-Verification Scheme-2021

MASTI

As part of the e-Verification Scheme-2021, Income Tax Department (ITD) is in the process of sending communication to taxpayers pertaining to ‘mismatch’ between the information filed in the Income Tax Return (ITR) vis-à-vis information of specified financial transactions, as available with the Department, for ITRs filed for AY 2021-22 (FY 2020-21).

• This information is being communicated to the taxpayers through their e-mail accounts as registered with the ITD.

• The Department urges taxpayers, to view their AIS through the e-filing portal and file updated ITRs (ITR-U), wherever necessary.

• This is to increase transparency and to promote voluntary tax compliance.

• Eligible non-filers can also file their ITR-U.

• The last date for filing ITR-U for A.Y. 2021-22 (i.e. for F.Y. 2020-21) is 31.03.2024.

For more details, please see the Press Release: https://pib.gov.in/PressReleseDetail.aspx?PRID=2011373

Implementation of e-Verification Scheme-2021

MASTI

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

Taxpayers can provide response on-screen functionality on Compliance portal of the e-filing website https://eportal.incometax.gov.in to reconcile mismatch

Taxpayers are being informed of mismatch through SMS and emails as per details available with Income Tax Department

Posted On: 26 FEB 2024 7:36PM by PIB Delhi

The Income Tax Department has identified certain mismatches between the information received from third parties on interest and dividend income, and the Income Tax Return (ITR) filed by taxpayers. In many cases, taxpayers have not even filed their ITR.

In order 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 with the Department.

Those taxpayers who have already registered on the e-filing website, can navigate to Compliance portal directly after logging into their account. Details of mismatches identified will be available under the ‘e-Verification’ tab.

Taxpayers who are not registered on the e-filing website have to register themselves on the e-filing website to view the mismatch. For registration, the “Register” button on the e-filing website can be clicked and the relevant details can be provided therein. After successful registration, the e-filing account can be logged into and the Compliance portal can be navigated to view the mismatches.

The on-screen functionality is self-contained and will allow the taxpayers to reconcile the mismatch on the portal itself by furnishing their response.  No document is required to be furnished. This is a pro-active step taken by the Department to reach out to the taxpayers and provide them an opportunity to respond to the communication in a structured manner. 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, s/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’.

The taxpayers who are unable to explain the mismatch may consider the option of furnishing an Updated Income Tax Return if eligible, to make good any under reporting of income.

MCA operationalises Central Processing Centre (CPC) for Centralised Processing of Corporate Filings

MASTI

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 Centralised Processing for Accelerated Corporate Exit (C-PACE)

Due to consistent efforts taken by MCA towards Ease of Doing Business, Incorporation of LLPs and companies is highest as compared to any of the previous financial years as on 14.02.2024

Posted On: 16 FEB 2024 2:15PM by PIB Delhi

On the lines of continuous endeavor to provide Ease of Doing Business in pursuance to Union Budget Announcement 2023-24, Central Processing Centre (CPC) has been established to process forms filed as part of various regulatory requirements under Companies Act and Limited Liability Partnership Act (LLP Act) in a centralised manner, requiring no physical interaction with the stakeholders.

From 16.02.2024, 12 forms/applications as listed below shall be processed at CPC, followed by other forms from 01.04.2024 onward. Later, forms/applications filed under LLP Act are also proposed to be centralised. Based on filing trends, it is expected that about 2.50 lakh forms will be processed through CPC annually, once it is fully operational.

 

Name of Form Description
MGT-14  Filing of Resolutions and Agreements
SH-7  Alteration in Capital
INC-24   Change in Name
INC-6  Conversion of One Person Company to Private or Public, or Private to OPC
INC-27   Conversion from Private into Public or Vice Versa
INC-20   Revocation/surrender of licence under Section 8 of the Act
DPT-3   Return of Deposits
MSC- 1  Application for obtaining the status of dormant company
MSC- 4   Application for seeking status of Active Company
SH-8   Letter of offer for Buy-Back
SH-9  Declaration of Solvency
SH-11   Return in respect of buy-back of securities

 

As of now, 4,910 forms have been received by CPC after commencing operations. The forms shall be processing a timebound and faceless manner. Processing of applications at CRC and C-PACE also does not require any physical interaction with the stakeholders.

The Central Registration Centre (CRC), Centralised Processing for Accelerated Corporate Exit (C-PACE), and CPC will ensure speedy processing of applications and forms filed for incorporation, closure and for meeting regulatory requirements so that the companies are incorporated, closed, can alter and raise capital, and are able to complete their various compliances under the corporate laws with ease.

After the establishment of CPC, jurisdictional Registrar of Companies (RoC), will have to focus more on their core functions of inquiries, inspection and investigation for ensuring robust corporate governance.

Further Steps towards Ease of Doing Business

Over the past many years, the Ministry of Corporate Affairs has taken several steps towards Ease of Doing Business.

An important part of the EoDB has been initiatives taken towards ease of entry in terms of quicker incorporation of companies. Central Registration Centre (CRC) was established for centralised, expeditious, transparent processing of applications filed for companies and LLPs for incorporation in Non-STP (Straight Through Processing) mode. This has yielded desired results. While during FY 2013-14, 1,02,063 Companies and LLPs were incorporated, during FY 2022-23, 1,95,586 Companies and LLPs got incorporated, registering an increase of about 92%.

 

 

Incorporation of LLPs and companies till 14.02.2024 this financial year has been not only more than the previous Financial Year 2022-23, but also the highest as compared to any of the previous financial years.

Following ease of entry, it was announced in the Union Budget Speech 2022-23 to establish Centralised Processing for Accelerated Corporate Exit (C-PACE) for expeditious voluntary closure of companies under the provisions of Section 248(2) of Companies Act, 2013 from more than 2 years to less than 6 months. Accordingly, C-PACE was established and operationalised on 01.05.2023. Under C-PACE, applications filed for voluntary closure of companies are getting processed in Non-STP within an average time of less than 4 months (about 100 days) compared to an average time of more than 18 months earlier. C-PACE has processed and closed 12,441 companies so far. Only 3,368 applications are pending with C-PACE, the lowest as compared to any previous year.

Law Commission of India submits its Report titled “Law on Matrimonial Issues Relating to Non-Resident Indians and Overseas Citizens of India”

MASTI

22nd Law Commission of India has submitted its Report No. 287 titled “Law on Matrimonial Issues Relating to Non-Resident Indians and Overseas Citizens of India” to the Government of India on 15.02.2024.

The Law Commission of India received a reference on The Registration of Marriage of Non-Resident Indians Bill, 2019 (NRI Bill, 2019) from the Ministry of External Affairs, received through the Department of Legal Affairs, Ministry of Law and Justice, for examination.

Having conducted an in-depth study of the law concerning the instant subject-matter, including the NRI Bill, 2019 , the Commission is of the considered opinion that the proposed central legislation should be comprehensive enough to cater to all facets involving marriages of NRIs as well as foreign citizens of Indian origin with that of Indian citizens. Such a legislation should be made applicable not only to the NRIs but also to those individuals who come within the definition of ‘Overseas Citizens of India’ (OCIs) as laid down under Section 7A of the Citizenship Act, 1955. It is further recommended that all marriages between the NRIs/OCIs and Indian citizens should be made compulsorily registered in India. The said comprehensive central legislation should also include provisions on divorce, maintenance of spouse, custody and maintenance of children, serving of summons, warrants, or judicial documents on the NRIs/OCIs, etc. Further, it is recommended that requisite amendments need to be introduced in the Passports Act, 1967 in order to mandate the declaration of marital status, the linking of a spouse’s passport with the other and mentioning of the Marriage Registration Number on the passports of both the spouses. Furthermore, the Government, in collaboration with the National Commission for Women and the State Commissions for Women in India and the NGOs and Indian associations abroad, should conduct awareness programs for women and their families who are about to enter into marital relationship with NRIs/OCIs.

Promotion of Hindi in Higher Courts

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Promotion of Hindi in Higher Courts

AI Assisted Legal Translation Advisory Committee assisting translation of e-SCR Judgments into vernacular languages by using AI Tool

31,184 judgments of Supreme Court translated into 16 languages

4,983 judgments of High Courts translated into vernacular language

Posted On: 02 FEB 2024 3:57PM by PIB Delhi

As far as Supreme Court and High Courts are concerned, Article 348(1)(a) of the Constitution of India states that all proceedings in these Courts shall be in English language. However, Article 348 (2) of the Constitution of India provides that the Governor of a State may, with the previous consent of the President, authorize the use of Hindi Language, or any other language used for any official purposes of the State, in proceedings in the High Court having its principal seat in that State. Further, Section 7 of the Official Language Act, 1963 states that the Governor of a State may, with the previous consent of the President, authorize the use of Hindi or the official language of the State, in addition to the English Language, for the purposes of any judgment, decree or order passed or made by the High Court for that State and where any judgment, decree or order is passed or made in any such language (other than the English Language), it shall be accompanied by a translation of the same in the English Language issued under the authority of the High Court.

The Cabinet Committee’s decision dated 21.05.1965 has stipulated that consent of the Hon’ble Chief Justice of India be obtained on any proposal relating to use of a language other than English in the High Court.

The use of Hindi in the proceedings of High Court of Rajasthan was authorized under Article 348(2) of the Constitution in 1950. After the Cabinet Committee’s decision dated 21.05.1965 as mentioned above, the use of Hindi was authorized in the High Courts of Uttar Pradesh (1969), Madhya Pradesh (1971) and Bihar (1972) in consultation with the Chief Justice of India.

As informed by the Supreme Court of India, Hon’ble Chief Justice of India has constituted the AI Assisted Legal Translation Advisory Committee, headed by Hon’ble Mr. Justice Abhay S. Oka, Judge, Supreme Court of India, for translation of e-SCR Judgments into vernacular languages by using AI Tool. As on 02.12.2023, by using AI translation tools, 31,184 judgments of Supreme Court, have been translated into 16 languages viz. Hindi (21,908), Punjabi (3,574), Kannada (1,898), Tamil (1,172), Gujarati (1,110), Marathi (765), Telugu (334), Malayalam (239), Odia (104), Bengali (39), Nepali (27), Urdu (06), Assamese (05), Garo (01), Khasi (01), Konkani (01). The details of the judgments of Supreme Court translated into 16 languages, as on 02.12.2023, is available on the e-SCR Portal of the Supreme Court website.

A similar Committee has been constituted in all the High Courts, headed by the Judges of the respective High Courts. As of now, the Supreme Court is collaborating with the High Courts in translation of e-SCR Judgments into 16 vernacular languages. As per the information received from the High Courts, 4,983 judgments have been translated into vernacular language and uploaded by the High Courts on their respective websites.

This information was given by the MINISTER OF STATE (INDEPENDENT CHARGE) FOR MINISTRY OF LAW AND JUSTICE; MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS; MINISTER OF STATE FOR THE MINISTRY OF CULTURE, SHRI ARJUN RAM MEGHWAL in a written reply in Lok Sabha today.

High Court Judges appointed as Chief Justices of High Courts

MASTI

Press Communique

Posted On: 02 FEB 2024 11:10PM by PIB Delhi

In exercise of the powers conferred by Clause (1) of Article 217 of the Constitution of India, the President is pleased to appoint the following Judges of High Courts as Chief Justices of High Courts with effect from the date they assume charges of their respective office in the concerned High Court: –

Sl. No. Name of the Judge (S/Shri Justice) Details
1 Manindra Mohan Shrivastava Acting Chief Justice, Rajasthan High Court (PHC: Chhattisgarh) Appointed as Chief Justice of the Rajasthan High Court.
2 Kumari Justice Ritu Bahri, Acting Chief Justice, Punjab & Haryana High Court Appointed as Chief Justice of the Uttarakhand High Court
3 Chakradhari Sharan Singh, Judge, Patna High Court Appointed as Chief Justice of the Orissa High Court
4 Vijay Bishnoi, Judge, Rajasthan High Court Appointed as Chief Justice of the Gauhati High Court.
5 Arun Bhansali, Judge, Rajasthan High Court Appointed as Chief Justice of Allahabad High Court
6 S. Vaidyanathan Judge, Madras High Court Appointed as Chief Justice of the Meghalaya High Court

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