Tuesday, June 30, 2009

Return can be filed without UTN - New TDS rule postponed

CBDT has issued a Press Release in which it has been stated that the Notification No. 31 of 2009 dated 25.3.2009 amending or substituting Rules 30, 31, 31A and 31AA of the Income Tax Rules, 1962 shall be kept in abeyance for the time being.


New Delhi dated 30th June 2009

The Central Board of Direct Taxes have further decided that the Notification No. 31 of 2009 dated 25.3.2009 amending or substituting Rules 30, 31, 31A and 31AA of theIncome Tax Rules, 1962 shall be kept in abeyance for the time being.

Taxpayers filing their income tax returns for assessment year (AY) 2009-10, or any other earlier AY, may continue to file their returns without mentioning the Unique Transaction Number (UTN) as required under the said Notification. The filing of such returns shall be treated as valid and in compliance to the requirements under section 139 of the Income Tax Act, 1961.

Further, the date from which the Notification No. 31 / 2009 shall become applicable on tax deducted at source (TDS) or tax collected at source (TCS) and deposited during the current financial year shall be notified by the Central Board of Direct Taxes subsequently.

All deductors / collectors of TDS / TCS may continue to deposit their TDS / TCS and file their quarterly TDS / TCS returns as per procedure existing prior to issuance of Notification No.31 / 2009 dated 25.3.2009.

Sunday, June 21, 2009

How to verify a paid challan

On receipt of the amount, receiving bank will upload the details in the Challan to Government via NSDL through its OLTAS (Online Tax Accounting System) return within 3 working days.

Once deductor makes the payment, he should cross-verify the Amount and CIN that has been uploaded by the receiving Bank to NSDL.

This should be cross-verified by the deductor, with either his TAN number or CIN number provided by bank against each challan.

What is CIN?

Challan Identification Number (CIN) has three parts

1. Seven digit BSR code of the bank branch where tax is deposited
2. Date of Deposit (DD/MM/YY) of tax
3. Serial Number of Challan

Example of CIN:

CIN is stamped on the acknowledgement receipt to uniquely identify the tax payment. CIN has to be quoted in the return of income as a proof of payment. CIN is also to be quoted in any further enquiry. Therefore, you must ensure that CIN (comprising the above three parts) is stamped on the Challan by the bank. If any challan does not contain CIN, immediately contact the Bank and insist on CIN.

If banks does not provide a Proper CIN?
The Reserve Bank of India has already passed an order dated April 1, 2004 making it compulsory for all tax collecting branches of banks to use a rubber stamp acknowledgement that carries CIN. A separate CIN is given for each challan deposited. If the Bank Manager concerned is unable to resolve the issue, you should address your grievance to the Bank's Regional Manager and the Regional Office of RBI.

Steps to verify the challan:

1. Visit www.tin-nsdl.com and click on “Challan Status Enquiry”.
2. Here select either

1. CIN Based View

On entering CIN and amount (optional), deductor can view the following details:

+ BSR Code
+ Date of Deposit
+ Challan Serial Number
+ Major Head Code with description
+ Name of Tax Payer
+ Received by TIN on (i.e. date of receipt by TIN)
+ Confirmation that the amount entered is correct (if amount is entered)

2. TAN based View:

By providing TAN and financial year, deductor can view the following details:

+ Major Head Code with description
+ Minor Head Code
+ Nature of Payment

If deductor enters the amount against a CIN, the system will confirm whether it matches with the details of amount uploaded by the bank.

3. On getting above details, deductor can consider the result obtained here, irrespective of what has been put in the challan by the bank.

4. If the entry is missing over here, after 3 working days [from the date of issuing counter foil], deductor should contact the Bank Branch to check the matter.

Friday, June 19, 2009


Limited Liability Partnership alike Companies are required to get their accounts audited as per the provisions provided under Limited Liability Partnership Rules 2009.

Is it necessary for all LLPs?

No, Only the Limited Liability Partnership whose contribution exceed Rs. 25 Lakh or the Limited Liability Partnership whose turnover exceed Rs. 40 Lakh are required to annually get their accounts audited by any Chartered Accountant in practice.

Limited Liability Partnerships who are exempted from mandatory audit may also get their accounts audited as per the Limited Liability Partnership Rules 2009.

In case if the partners do not decide for the for audit of the accounts of the LLP a statement to be included in the Statement of Account and Solvency by the partners to the effect that the partners acknowledge their responsibilities for complying with the requirements of the Act and the Rules with respect to preparation of books of account and a certificate in the form mentioned below:

“We declare that the turnover does not exceed/exceeds 40 lakh or the contribution does not exceed/exceeds 25 lakh rupees. The partners/authorized representatives have taken proper care and responsibility for maintenance of adequate accounting records and preparation of accounts in accordance with the provisions of the LLP Act and the Rules made there under”.

This certificate to be filed with the Registrar of Companies, LLP along with e Form 8.

Appointment of Auditor

Limited Liability Partnerships who mandatorily require auditing of their accounts shall appoint an auditor within 30 days before the end of each Financial Year i.e. before 1st March of each year. In case of First Financial year the auditor to be appointed before the end of the First Financial Year.

The Designated Partners responsible for the compliances of LLP will appoint the auditor also. However if the designated partner fails to appoint the auditor then the partners may appoint the auditor.

The auditor appointed shall remain in office until new auditor is appointed or the majority of Partners have given a notice for the non appointment of existing auditor. Such notice of auditor of Partners may be in hard copy or electronic Form and must be authenticated by the Partners giving the notice.

Remuneration of Auditors Remuneration of Partners may be fixed by the Designated Partners or if any procedure has been prescribed in the LLP Agreement the remuneration to be decided as per that provision.

Resignation of Auditor

An auditor may resign by depositing a notice in writing to that effect at the LLP’s registered office. Such Notice is to be accompanied by the statement of the circumstances connected with his ceasing to hold office. In case if a auditor is unwilling to be re –appointed he shall give a notice in writing to that effect at the LLP’s registered office, not less than 14 days before the end of the time allowed for appointing the new auditor.

Removal of Auditor

An auditor may be removed from his office at any time as per the procedure mentioned in the LLP Agreement. In the absence of LLP Agreement the auditor may be removed with the consent of all the Partners

Wednesday, June 10, 2009

Complaints relating to dummy articles and coaching

The following email ids have been configured for lodging complaints relating to matters of dummy articles and coaching classes during non-permissible hours.

complaints.dummyarticles@icai.in - Complaints/matters relating to dummy articles
complaints.coachinghours@icai.in - Complaints/matters relating to coaching class during non-permissible hours (i.e. between 9.30 A.M. and 5.30 P.M)