The Knowledge Hub - Regulatory updates

The Knowledge Hub - Regulatory updates

One Stop for Regulatory Updates relating to Company law, Direct and Indirect tax & various other statutes

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Timeline photos 08/07/2020

Aimed at attracting more investments into the country, the income tax department has issued a notification giving sovereign wealth funds and global pension funds the benefit of income tax exemption on their investment in Indian infrastructure. The tax exemption will apply to interest, dividend and capital gain income.

In a notification, the Central Board of Direct Taxes (CBDT) widened the scope of infrastructure for the purpose of claiming income tax exemption under Section 10 (23FE) of the I-T Act introduced via the Finance Act 2020. The said Section permits a complete tax exemption to certain exclusive category of
non-resident investors on their income streams such as dividends, interest and capital gains.

This notification shall come into force from. April 1, 2021, and shall be applicable for the assessment year (AY) 2021-22 and subsequent AYs.

Timeline photos 07/07/2020

SEBI, vide circular No. SEBI HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020, had relaxed the requirement of the maximum stipulated time gap of 120 days between 2 meetings of the board and Audit Committees of listed entities as is required under SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (LODR Regulations) This relaxation was provided for the meetings held proposed to be held between the period December 1, 2019 and June 30, 2020.

SEBI vide circular No. SEBI HO/CFD/CMD1/CIR/P/2020/106 dated June 24, 2020 had extended the timeline for submission of financial results under Regulation 33 and 52 of the LODR Regulations to July 31, 2020. SEBI is in receipt of requests from listed entities to extend the relaxation mentioned at para 1 above, till July 31 2020.

After consideration, the relaxation of maximum time gap between two board/Audit Committee meetings as provided by circular No SEBI HO CFD/CMD1/CIR P/2020/38 dated March 19,2020 is further extended till July 31 2020. However, the board of directors and audit committees of listed entities shall ensure that they meet atleast four times a year as stipulated under LODR Regulations.

Timeline photos 07/07/2020

SEBI, vide circular No. SEBI HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020, had relaxed the requirement of the maximum stipulated time gap of 120 days between 2 meetings of the board and Audit Committees of listed entities as is required under SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 (LODR Regulations) This relaxation was provided for the meetings held proposed to be held between the period December 1, 2019 and June 30, 2020

SEBI vide circular No. SEBI HO/CFD/CMD1/CIR/P/2020/106 dated June 24, 2020 had extended the timeline for submission of financial results under Regulation 33 and 52 of the LODR Regulations to July 31, 2020. SEBI is in receipt of requests from listed entities to extend the relaxation mentioned at para 1 above, till July 31 2020

After consideration, the relaxation of maximum time gap between two board/Audit Committee meetings as provided by circular No SEBI HO CFD/CMD1/CIR P/2020/38 dated March 19,2020 is further extended till July 31 2020. However, the board of directors and audit committees of listed entities shall ensure that they meet atleast four times a year as stipulated under LODR Regulations.

Timeline photos 06/07/2020

As per para 18(2) of the Master Direction on Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and Non Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, as
per which every applicable NBFC shall finalise its balance sheet within a period of 3 months from the date to which it pertains.
2. In view of the on-going situation and taking in to account the feedback received from
various stakeholders, it has been clarified by RBI that every applicable NBFC shall finalise its balance sheet within a period of 3 months from the date to which it pertains or any date as notified by SEBI for submission of financial results by listed entities.
(RBI/2020-2021/11
DoR (NBFC) (PD) CC. No.114/03.10.001/2020-21 dated July 06, 2020)

Timeline photos 06/07/2020

The MCA has issued the Companies (Auditors Report) Order, 2020 (CARO 2020) on 25th February 2020, which was initially applicable for statutory audits of financial statements for periods beginning on or after April 1, 2019. Subsequently, vide notification dated 24th March 2020, applicability of CARO 2020 was deferred by one year. Accordingly, CARO 2020 would be applicable for statutory audits of financial statements for periods beginning on or after April 1, 2020. CARO 2020 contains several changes including many additional reporting requirements vis-a-vis CARO 2016 to further enhance overall quality of reporting by the auditors.

These changes necessitated the revision of the Guidance Note on CARO 2016 earlier issued by ICAI. The Guidance Note is developed to provide detailed guidance on various clauses of CARO 2020 and various issues involved therein.

Refer link for the Guidance Note-https://resource.cdn.icai.org/60117aasb48979-a.pdf

#2020

Timeline photos 06/07/2020

CBDT further extends tax compliance time lines under the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, individuals with self-assessment tax liability upto INR 1 lakh can pay it till 30 November 2020.

tax

Timeline photos 05/07/2020

After taking into consideration the representations received from listed entities, Chartered Accountant firms, and industry bodies associations seeking further extension of time for preparation finalization and submission of financial results, it has been decided to further extend the timeline for submission of financial results under Regulation 33 of the LODR Regulations, by a month to July 31, 2020 for the quarter and the year ending 31st March 2020. Similarly, the timeline under Regulation 52 of the LODR for submission of half yearly and/or annual financial results the period ending March 31,2020 for entities that have listed NCDs, NCRPS , CPS, MDS is also extended to July 31, 2020.

Timeline photos 05/07/2020

The Court decided that CIT(A) & ITAT are bound to accept claim if raised before them even if it was not raised by way of original/revised IT return.

Benefits can be availed by assessee as follows:

1. Claim it in the ROI for coming years

2. File revised return for AY 2019-20

3. Claim before CIT(A) & ITAT if appeal of earlier years is pending

4. Claim before AO if assessment proceedings are pending for any earlier years.

Timeline photos 05/07/2020

Import of goods and services Extension of time limits for Settlement of import payment (RBI/2019-20/242 A.P. (DIR Series) Circular No. 33 dated May 22, 2020) In view of the disruptions due to outbreak of COVID- 19 pandemic, it has been decided to extend the time period for completion of remittances against such normal imports (except in cases where amounts are withheld towards guarantee of performance etc.) from six months to twelve months from the date of shipment for such imports made on or before July 31, 2020.

Timeline photos 05/07/2020

Insolvency and Bankruptcy Code(Amendment) Ordinance, 2020 The ordinance has been issued to further amend the insolvency and bankruptcy Code, 2016 in light of the COVID pandemic and nationwide lockdown in force since March 25, 2020.

Section 10A (Suspension of initiation of corporate insolvency resolution process ), newly inserted , inter alia provides that notwithstanding anything contained in in Sections 7, 9 and 10 no application for initiation of corporate insolvency resolution process of a corporate debtor shall be filed, for any default arising on or after 25 March 2020 for a period of six months such further period, not exceeding one year from such date, as may be notified in this behalf.

Timeline photos 05/07/2020
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