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2. INDEX • Direct Taxation • Indirect Taxation • Corporate & Other Laws • Accounting & Audit • Statutory Due Dates June 2016 Newsletter – June 2016

3. DIRECT TAXATION Index • FORM 12BB & Extension of TDS return • The income tax department has come out with a standard Form 12BB for salaried taxpayers to claim tax deduction on leave travel allowance concession (LTALTC), house rent allowance (HRA) and interest paid on home loans. Taxpayers will have to furnish to their employers proof of travel in Form 12BB for claiming LTALTC benefits. In case of HRA, the Central Board of Direct Taxes (CBDT) requires employees to furnish details like name, address and PAN number of the landlord if the aggregate rent paid exceeds Rs 1 lakh a year.  • For claiming deduction of interest on home loan, the name, address and PAN of the lender will have to be furnished. Evidence of investment or expenditure will have to be provided for claiming tax deduction under Chapter VI-A. • The CBDT, also extended the time limit for depositing tax deducted at source (TDS) on transfer of immovable property from 7 to 30 days. Also, the due date for filing quarterly TDS returns in Form 24Q, 26Q and 27Q was extended by 15 days. The amended rules will be applicable from June 1, 2016. • IT department launches e-norvaan for speedy grivence redressal • The Income Tax department has launched a special electronic grievance redressal system called ‘e-nivaran’ in order to fast track taxpayer grievances and ensure early resolution of their complaints. A separate and dedicated window for grievance redressal has been launched recently in the Income Tax Business Application (ITBA), the new smart electronic platform for the regular operations of the department. Newsletter – June 2016

4. DIRECT TAXATION Index • CBDT has declared August 31 as deadline for the taxpayers whose ITR Vs are pending • Offering the "final opportunity", the CBDT mentioned that taxpayers whose refunds and tax issues are pending for assessment years (AYs) 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15, should immediately authenticate their Income Tax Returns by using either the electronic verification by Aadhaar or bank account-based facility available on its official web portal or send a bonafide copy of the ITR-V to its CPC in Bengaluru by "speed post" before August 31. • Four Month window to declare black money opens on June 1 • The four-month window for declaring domestic black money will open on June 1 and those opting to come clean by paying 45 per cent tax and penalty, will not be subjected to scrutiny and enquiry by tax department. The Income Declaration Scheme 2016 will remain in force till September 30 for filing of declarations and payments towards taxes, surcharge and penalty must be made latest by November 3. • No scrutiny and enquiry under the Income-tax Act or the Wealth tax Act (no abolished) shall be undertaken in respect of such declarations. Immunity from prosecution under the Income-tax Act and Wealth Tax Act is also provided along with immunity from the Benami Transactions (Prohibition) Act, 1988 subject to transfer of asset to actual owner within the period specified in the Rules. Newsletter – June 2016

5. DIRECT TAXATION Index • E-filing of Appeals time limit extended to 15th June 2016 • Rule 45 of the Income Tax Rules, 1962, mandates compulsory e-filing of appeals before Commissioners of Income Tax (Appeals) with effect from 01.03.2016 in respect of persons who are required to furnish return of income electronically. It has come to the notice of the CBDT that in some cases the taxpayers who were required to e-file Form 35, were unable to do so due to lack of knowledge about e-filing procedure and/or technical issues in e-filing.  Also, the EVC functionality for verification of e-appeals was made operational from 12.05.2016 for individuals and from 19.05.2016 for other persons. Word limit for filing grounds of appeal and mapping of jurisdiction of Commissioners of Income Tax (Appeals) were also a cause of grievance in some cases. • While the underlying issues relating to e-filing of appeals have since been addressed and resolved, in order to mitigate any inconvenience caused to the taxpayers on account of the new requirement of mandatory e-filing appeals, it has been decided to extend the time limit for filing of such e-appeals. E-appeals which were due to be filed by 15.05.2016  can be filed up to  15.06.2016. All e-appeals filed within this extended period would he treated as appeals filed in time. Newsletter – June 2016

6. INDIRECT TAXATION Index • CBEC: every Wednesday declared as Tax payers day by CBEC • CBEC vide Letter F. No. DGST/19/2015 dated 12.04.2016 to ICAI has informed that every Wednesday would be taxpayers day wherein heads of all offices in the field will meet the taxpayers/ other stakeholders from 9 AM to 1 PM without any prior appointment in order to address their grievances relating to Central Excise, Service Tax, Customs etc. • Krishi Kalyan Cess (KKC) to be levied from June 1, 2016 • The finance bill 2016 has introduced Krishi Kaylan cess (KKC) to be charged on table services. KKC will be applicable @ 0.5% in addition to Service Tax rate @14% plus Swacch Bharat Cess (SBC) @ 0.5 %. So the total effective service tax rate will be 15% from June 1, 2016. Newsletter – June 2016

7. CORPORATE AND OTHER LAWSIndex • Listed Companies management to explain audit qualifications • Markets regulator Sebi on, 28th May 2016 asked listed companies to disseminate cumulative impact of audit qualifications in a separate format along with the annual audited financial results to the stock exchanges. Besides, the management of a company would be required to explain its view about audit qualifications. The new framework would ensure that the impact of audit qualifications are clearly communicated by the companies concerned to their investors in a timely manner apart from streamlining the whole process. Sebi decided to have the new system on audit qualifications after extensive discussions with its advisory committees, Institute of Chartered Accountants of India (ICAI), stock exchanges and industry bodies. Newsletter – June 2016

8. ACCOUNTING & AUDIT Index • Auditing reforms: PAC wants NGOs , PPPs to come under its purview • Powers to audit NGOs, summon ministers and former secretaries and a monitoring mechanism for following up the effective implementation of the recommendations are some of the proposals of the Public Accounts Committee (PAC) on the auditing reforms. PACs felt the Comptroller and Auditor General(CAG) mandate extends to conduct of audit of NGOs, any enterprise or programme where government funding is involved, including in government operated agencies such as District Rural Development Agencies (DRDAs) and Public Private Partnership projects. Apart from the suggestion that the PAC proceedings should be open to media except in sensitive cases, the report demands that the PAC could consider collection of information through social audit agencies, NGOs, public and a website dedicated to PAC. • The report, based on the outcome of the deliberations at a conference held in September 2015 of PAC chairpersons and members of Parliament and Assemblies, says if implemented, it will go a long way in enhancing the effectiveness of both the Comptroller and Auditor General (CAG) and the PACs. Newsletter – June 2016

9. STATUTORY DUE DATES FOR JUNE 2016 Index • Statutory Due Dates Calendar for June 2016 Newsletter – June 2016

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