Taxdtidt Blog

The  Central Board of Direct Taxes  (CBDT) notified the penalty under section  271AAD for false entry etc. in the books of accounts The CBDT has inserted section 271AAD in the Income Tax Act, 1961, which will be effective from 9 April, 2020. As per 271AAD if during any proceeding, it is found that in the books of account maintained by any person there is a false entry, or an omission of any entry relevant for evading tax liability, the  Assessing Officer  may direct that such person shall pay, by way of penalty, a sum equal to the aggregate amount of such false or omitted entry. The  Assessing Officer  may also direct that any other person who causes to make a false entry or omits or causes to omit any entry, shall pay by way of penalty a sum equal to the aggregate amount of such false or omitted entry. The section further explains that “false entry includes use or intention to use forged or falsified documents such as a false invoice or, in general, a false piece of documentary eviden

Shares of Netflix worth $990 purchased at the original IPO price in 2002 would now be valued at $455,532 as of December 10, 2020. The return on investment is 45,913% over 18 years. There are countless success stories of foreign stocks which attract many investors from across the world. If you are intending to invest in a foreign stock, this article is for you to understand the implications under the provisions of the Foreign Exchange Management Act (FEMA) and the Income-tax Act. The FEMA prohibits the investment outside India beyond a certain limit. Under the Liberalised Remittance Scheme (LRS), resident individuals can invest abroad by way of acquisition and holding shares of both listed and unlisted overseas company and debt instruments. The limit of overseas direct investment by the resident individual shall be within the overall limit prescribed under the provisions of the Liberalised Remittance Scheme, by the  RBI . Currently, Liberalised Remittance Scheme has prescribed a blanket

The Income Tax Department has detected undisclosed income of over Rs 450 crore after it raided some Kolkata-based entities engaged in various businesses The Income Tax Department has detected undisclosed income of over Rs 450 crore after it raided some Kolkata-based entities engaged in various businesses such as running of hotels and wholesale trading of fruits, the CBDT said on Friday. The search and survey operation was carried out on January 13 and the department also seized Rs 1.58 crore in cash. The search and seizure operation has resulted in unearthing of incriminating documents of undisclosed cash sales and claim of bogus expenses,” it said. “During the course of search operation, incriminating documents have been found which revealed sale of shares of unlisted companies through layering to bring back unaccounted cash in the books of account in the form of unsecured loan and share capital,” the CBDT said in a statement issued here. The Central Board of Direct Taxes frames polic

Finance Minister Nirmala Sitharaman is set to present the Union Budget for the financial year 2021-22 at the Parliament in less than 15 days. Budget session of the Parliament will commence on 29 January 2020. President Ram Nath Kovind will address both Houses of Parliament (Rajya Sabha and Lok Sabha) at 11 am on 29 January. Budget will be presented by FM Sitharaman to the Parliament at 11 am on 1 February 2020. The parliamentary session for the Budget will be held in two parts: 29 January to 15 February and 8 March to 8 April. The 5th session of the 17th Lok Sabha will have 35 sittings: 11 in the first part and 24 in the second part. Parliament will adjourn on 15 February to enable various Standing Committees to consider the Demands for Grants of Ministries/Departments and prepare their reports, and reconvene on 8 March. A major change in this year is that the Union Budget 2021 will be completely paperless exercise, that is, for the first time ever, India's annual budget papers wil

 • What is Unique Document Identification Number (UDIN)?  The Institute of Chartered Accountants of India, on noticing about the fake certifications by Non-CAs misrepresenting themselves as Chartered Accountants which misled the authorities and stakeholders, pioneered in conceptualizing a unique concept which is called "Unique Document Identification Number (UDIN) ". Unique Document Identification Number (UDIN) is 18-Digitsystem generated unique number which has to be generated by Full- time Practicing Chartered Accountants for every document certified/attested by them.   As per the decision of the Council of ICAI, UDIN has been made mandatory in phased manner as per following schedule:    • For all Certificates w.e.f. 1st February, 2019;  • For all GST and Tax Audit Reports w.e.f. 1st April, 2019;  • For all other Audit, Assurance and Attestation functions w.e.f. 1st July, 2019.    • Is UDIN mandatory for upload of the Audit Report and CA certification forms in e-filing port

Taking  another  step  towards  e-governance  and  encouraging  participation  of citizen  as  stakeholders  in  curbing  tax  evasion,  the  Central  Board  of  Direct  Taxes  has launched  an  automated  dedicated  e-portal  on  the  e-filing  website  of  the  Department  to receive  and  process  complaints  of  tax  evasion,  foreign  undisclosed  assets  as  well  as complaints  regarding  benami  properties.   The  public  can  now  file  a  Tax  Evasion  Petition  through  a  link  on  the  e-filing website  of  the  Department  https://www.incometaxindiaefiling.gov.in/   under  the  head “File  complaint  of  tax  evasion/undisclosed  foreign  asset/  benami  property”.  The  facility allows  for  filing  of  complaints  by  persons  who  are  existing  PAN/Aadhaar  holders  as  well as  for  persons  having  no  PAN  /Aadhaar.  After  an OTP  based  validation  process  (mobile and/or  email),  the  complainant  can  file  complaints  in respect  of  violations  of  the  Inco