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Employees basic salary and all allowance must be club to calculate PF as per SC judgement
On March 11, 2020 / Comments 0
A landmark judgement has been passed by Supreme Court which will have a long term impact on the employers in all sectors Employees basic salary and all allowance must be club to calculate PF. The take home salary of the employees will get reduced but their retirement kitty will undoubtedly increase . On the other hand, the personnel cost to the employers shall increase to a great extent. There have been cases where the employers use to keep their basic to the minimum to reduce the PF and gratuity burden. But with this judgement, they will not be able to…...
read moreCBDT releases draft notification proposing new audit report Form for Trust/Institution.
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CBDT releases draft notification proposing new audit report Form for Trust/Institution. The Form 10B has been proposed to be revised and a detailed annexure can be made an integral part of it . There is a whole lot of information which is to be reported by the auditor. Most of the information is already a part of the ITR 7 required to be filed by registered organizations. However it seems that now the auditor too need to certify by reporting the same as annexure to Form 10B...
read moreA major relief to the FCRA registered organizations!!
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The organizations whose registration was cancelled on account of non-filing of annual returns for previous years, are given a chance to file their annual returns without penalty and also reapply for registration. This is a welcome step taken by the department on account of representations from all over the country. Such organizations have 3 months from the date of notice to file such forms....
read moreFinally E- Assessment is here!!
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Income tax department will now go faceless with the assessees. The scheme has been notified here under: E-assessment to include 5 units ie. National e-assessment centres, regional e-assessment centres, assessment unit, verification unit, technical unit and review unit. Procedure of e-assessment in short:- National e-assessment centre to issue notice.. Then, it will allot case to any unit under any regional e-assessment unit through automated system Regional Assessment unit may national unit to seek further info, conduct enquiry or seek technical assistance.. Accordingly, national unit may seek info from assessee or other person, or may refer case to verification unit or…...
read moreFurther tightening of norms under FCRA.
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All office bearers of foreign-funded NGOs seeking FCRA licence including prior permission and renewal of registration must now file individual affidavits sharing details of their govt-issued identity proof; declare that NGO not involved in forced conversion or communal activities. Follow the link: Courtesy:https://timesofindia.indiatimes.com/india/conversion-sedition-in-focus-as-government-tightens-fcra-norms/articleshow/71159079.cms...
read moreAadhaar has been given the same stature as PAN in the Income Tax act :
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The Word *"PAN"* has been substituted by *["PAN" or "Aadhaar Number"]* in the Entire Income Tax Laws: Vide Notification No. 95/2019 dated November-07-2019 *more than Hundreds of Forms, Statements, Audit Reports formats* have been updated so as to give effect that wherever the word Permanent Account Number *"(PAN)"* has been mentioned, shall be Substituted by the Words, *["PAN" or "Aadhaar Number"]*...
read moreRecent Amendments in Income Tax
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The regulators have always been making regular changes in Income Tax act. Here are some major recent amendments done: 1. TDS on additional payment made when purchasing immovable property. From 01st September, 2019 onwards TDS shall be deducted on all additional payments such charges of the nature of club membership fee, car parking fee, electricity and water facility fees, maintenance fee, advance fee or any other charges of similar nature, which are incidental to the transfer of immovable property. 2. TDS on cash withdrawals from bank accounts - As per Section 194N, the TDS can be levied at the rate…...
read morePF benefits also extend to contractual workers, holds Supreme Court
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Recently, Supreme Court passed a verdict that employee provident fund benefits should also be extended to contract employees. So, teachers/staff who are contractual employee or are working on a part-time basis, shall also be now covered under PF and have to brought under its purview. Follow the link: Courtesy: https://www.indialegallive.com/constitutional-law-news/supreme-court-news/pf-benefits-also-extend-contractual-workers-helds-supreme-court-84148...
read moreLet’s have a look at what the Budget 2020 have for NGOs:
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a) With a view to keep a check on the authenticity and genuineness of the activities of the organization, it has been proposed that even the existing charitable organizations registered u/s 12A or 12AA has to apply again for renewal within 3 months from the date of the new section 12AB coming into force (proposed date is 01.06.2020) and the renewed registration shall be limited to a period of maximum 5 years. The organization have to re-apply again six months before the expiry of such 5 years registration. b) Similar amendment applies for getting the renewed registration u/s 80G too.…...
read moreVivaad se Vishwas Scheme 2020
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Are charitable organizations eligible for the Scheme ? Yes, it's very much applicable and even charitable organizations can avail the benefit of the scheme. They too can complete their pending litigations by reducing their outstanding demand as per the scheme and avoid the harrasment. To know more, tune in to our video: https://youtu.be/5YUSpJaLyJ0...
read moreLinking of PAN and Aadhar:-
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If you were thinking that not linking the PAN and Aadhar will only make your PAN inoperative, that is only one of the consequences. As notified in the notification dated February 13, 2020, CBDT specifically have mentioned that if the PAN and Aadhar is not linked, the PAN will become inoperative with effect from 01.04.2020. Also, the person might be fined upto Rs. 10000 for failure to comply with the provisions and using inoperative/invalid PAN u/s 272B of the Income Tax Act. So, linking of PAN and Aadhar is mandatory to avoid penal actions and do valid financial transactions .…...
read moreSC: Performance of Charitable Activity not Compulsory for Registration of New Trust u/s 12AA of IT Act
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Landmark judgement passed by the Supreme Court on 19.02.2020: Performance of Charitable Activity not Compulsory for Registration of New Trust u/s 12AA of IT Act. This has always been the practical difficulty faced by the new charitable organizations who wanted to get themselves registered u/s 12A. With the judgement, the issue has been put to rest finally and might resolve various pending cases relating to the matter. It is correctly pointed out by the bench of Apex court that "activities " mentioned in the Section should be deemed to be considered as "proposed activities ". Follow the link: Courtesy:https://taxguru.in/income-tax/sc-performance-charitable-activity-compulsory-registration-trust-u-s-12aa-act.html?amp#aoh=15835115066747&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s...
read moreCan’t stop foreign funding for organisations that hold protests for public causes: SC on FCRA plea
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Another landmark judgement passed by the Supreme Court in favour of charitable organizations , but this time on Foreigb funding. It states that only because such social organizations are supporting public cause cannot be held to have "political interests". These organizations are working for the social and economic welfare of the Society as a whole and unless concrete material is in place, they should not be denied foreign funding....
read moreMadras High Court on Salary to Missionaries
On March 27, 2019 / Comments 0
It seems that the payments made to sisters, fathers, nuns,missionaries etc....in capacity of teachers shall be liable to TDS u/s 192 irrespective of the fact that such salaries are not directly credited in their accounts but to the society or trust account with an overriding title. We need to wait further for more clarification on same for drawing concrete conclusions whether payment for honorary services by such missionaries shall also be liable to TDS or not. https://www.thehindubusinessline.com/news/national/salaries-of-nuns-priests-working-in-schools-liable-to-tax-madras-hc/article26612275.ece...
read moreSupreme Court Judgement – PF Calculation
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A landmark judgement has been passed by Supreme Court which will have a long term impact on the employers in all sectors Employees basic salary and all allowance must be club to calculate PF. The take home salary of the employees will get reduced but their retirement kitty will undoubtedly increase . On the other hand, the personnel cost to the employers shall increase to a great extent. There have been cases where the employers use to keep their basic to the minimum to reduce the PF and gratuity burden. But with this judgement, they will not be able to…...
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