Statutory Updates

For MSME registration, contact 9696722698

Measures for support to MSME announced by FM Smt. today are:

➡️Rs 3 lakh cr Collateral-free Automatic Loans for Businesses, including MSMEs
➡️Rs 20,000 cr Subordinate Debt for Stressed MSMEs
➡️Rs 50,000 cr Equity infusion for MSMEs through Fund of Funds
(2/2)
➡️ New Definition of MSMEs
➡️Global tenders to be disallowed upto Rs 200 cr
➡️Other interventions for MSMEs

Two Major Amendments Proposed in Finance Bill, 2017 before passing it in parliament:
1. Amendment in Sec.269ST: Sec 269ST was inserted in finance bill to provide that no person shall receive amount of Rs. 300000 or more otherwise than by A/c payee cheque/ bank draft/ electronic payment :
• In aggregate from a person in a day;
• In respect of a single transaction.
• In respect of transactions relating to one event.
The Limit of Rs. 300000 has been reduced to Rs. 200000 by making amendment in proposed finance bill. Thus any receipt of Rs. 2 Lakh or more in cash will attract 100% Penalty in hands of recipient with effect from 1st April, 2017.
2. AADHAR Card is proposed to be made Mandatory for Income Tax Return Filing.

*NEW SCHEME PROPOSED FOR DISCLOSURE OF INCOME:*

'Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) has been proposed for declaration of undisclosed income.

*Option I : Any Person declaring undisclosed income has to:*

*I. PAY TAX:*
Income tax - 30%
Penalty - 10%
Pradhan Mantri Garib Kalyan Cess - (33% on 30%) - 9.9%

*Total Tax payable - 49.9%*

AND

*II. MAKE DEPOSIT:*

*Deposit - 25%* of undisclosed income in:

- ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’
> AN *INTEREST FREE* Deposit Scheme
> lock-in period - *FOUR* years.

*Option II: If not disclosed under the above scheme:*

Sec. 115BBE (Amended):
Flat rate of tax @ 60%
+ surcharge @25% of tax - 15%
+ Penalty (Section 271AAC) - 7.5%
(If Assessing Officer determines income referred to in section 115BBE)

*Total Tax Payable - 82.5%*

P.S.: Amendment bill is in parliament. Will be effective from the date of presidential assent.

http://pib.nic.in/newsite/PrintRelease.aspx?relid=154450

Taxation Laws (Second Amendment) Bill, 2016 introduced in Lok Sabha; A scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) proposed in the Bill. Evasion of taxes deprives the nation of critical resources which could enable the Government to undertake anti-poverty and development programmes. It also puts a disproportionate burden on the honest taxpayers who have to bear the brunt of higher taxes to make up for the revenue leakage. As a step f...