To see a presentation of the direct tax and service tax proposals in the union budget 2011-12, please click the link below:

http://www.scribd.com/doc/51294525/Union-Budget-2011-12-Presentation

Happy News to Senior Citizens and Small Tax Payers !

If you are a Senior Citizen (meaning taxpayers who are 60 years or more) and small tax payers (meaning individuals and HUF whose gross total income does not exceed 10 lacs), be happy ! You will not be subjected to IT scruitiny unless the IT department is in possession of creditable information. 

Then, what is creditable information, let us pray, the Department will have some guidelines for it !

Press Release is given below:

PRESS RELEASE [NO. 402/92/2006-MC (07 OF 2011)], DATED 14-3-2011

Scrutiny of income-tax returns is an important mechanism for ensuring taxpayer compliance and to counter tax-evasion. However, it has evoked some concern from small taxpayers and senior citizens about prolonged enquiries. Concerns have also been raised about selection of the same cases in scrutiny year after year.

Appreciating the concern of these taxpayers and with a view to mitigate their hardships, Central Board of Direct Taxes has reviewed its scrutiny selection procedure. In order to redress the grievance, it has been decided that during the financial year 2011-12, cases of senior citizens and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny only where the Income Tax department is in possession of credible information.

Senior citizens for this purpose would be individual taxpayers who are 60 years of age or more. Small taxpayers would be individual and HUF taxpayers whose gross total income, before availing deductions under Chapter VI-A, does not exceed Rupees ten lakh.

_______________________________

JAMESKUTTY ANTONY FCA, CISA
Chartered Accountant
37/357 | First Floor | Muttathil Lane | Kadavanthra | Cochin - 682 020 |
India
Ph: (0484) 402 4545 | 220 7163 | Cell: 0 98460 55122
www.financeandtax.blogspot.com

Companies (Name Availability) Rules 2011 - New

The new Companies (Name Availability) Rules, 2011 notified. Key points are:

• Applicant has to give a declaration that he has utilised the search facilities in the www.mca.gov.in, that the proposed name is not an infringement of a trade mark, that the proposed name is not in violation of 'Emblems and Names (Prevention of Improper Use) Act 1950, that the proposed name is not offensive to any section of the people, that he has gone through all the guideline in the Rules and he undertakes to be responsible for any consequence of any contravention of these rules, found out later.
• The Rules cast further duties on the professionals. If the proposed name contains more than one word, then an options is given that a professional's  CA/CS/CWA) certificate on the above matters may be attached. If such certificate (as per Rule 4) is attached, the name will be allotted online. However, if the name, afterwards, found to be undesirable, the professional who certified it will also face penal action under Companies Act and regulations of the respective professional institute.
• This facility is not available for change of names
• Names allotted can be be withdrawn by MCA any time, if it is found that the name was allotted in contravention to any of these regulations.
• The name once allotted will be valid for 2 months. This can be extended to one more month on payment of additional fee. Thereafter, the name will lapse
• It is not necessary that the the proposed name should be indicative of the main object. But if the proposed name is indicative of an activity, then it should be appropriately reflected in the main object. But in the case of financial services companies, the name should indicate the main objects. In the case of companies with main objects as Insurance, Bank, Stock Exchanges, Nidhi, Mutual Funds etc, applicant should give a declaration that the requirements mandated by the respective regulator is complied with.
• The name containing the word 'state' will be alloted to a Government Company only.
• In addition to these, authorised capital limitations are fixed for including certain words in the name. For Example, if the word 'Corporation' should be included in the name. the authorised captial should be Rs. 25 Crores or more. 

For the text of the Rules, please send me a mail

Company Law : Payment of MCA fees in electronic mode only

GENERAL CIRCULAR [NO. HQ/9/2002-COMPUTERIZATION], DATED 9-3-2011

Ministry has reviewed the processes involved in delivery of important services to stakeholders, with a view to identify and improve the components causing delay in disposal of applications. Payment confirmation is found to be a major bottleneck in delivery of services in respect of offline payment made by physical challans. It was found that often there was a delay in confirmation of payments by physical challans, as banks have been given a reporting time of ‘T’+3 days, as per payment procedure approved by C&AG,‘T’ being the transaction date. This leads to delay in creation of work item for disposal of an application/e-form, leading to inconvenience of stakeholders. On the other hand, it was found that wherever fees were paid online in the system, the work item was created faster and the approvals were speedier as banks are following ‘T’+1 for reporting online payments.

2. In the interest of stakeholders, with a view to improving service delivery time, Ministry has decided to accept payments of value upto Rs. 50,000, for MCA 21 services, only in electronic mode w.e.f. 27th March, 2011.

3. For the payments of value above Rs. 50,000, stakeholders would have the option to either make the payment in electronic mode, or paper challan. However such payments would also be made in electronic mode w.e.f .1st October, 2011.