Corporate Update #MCA MCA releases draft Companies (Registered Valuers and Valuation) Rules, 2017 #SEBI Listing of Non-Convertible Redeemable Preference Shares (NCRPS)/ Non-Convertible Debentures (NCDs) through a Scheme of Arrangement #TAXATION Central Board of Direct Taxes (#CBDT) Issues Clarification on furnishing Statement of Financial Transaction (SFT) & SFT Preliminary Response #TDS and filing of #ITR in case both the parents are dead of minor Requirement of tax deduction at source in case of entities whose income is exempted under Section 10 of the #IncomeTax Act, 1961 Company Website- www.acquisory.com

1. May 29, 2017
CORPORATE
MCA
MCA releases draft Companies (Registered
Valuers and Valuation) Rules, 2017
MCA has released the draft of Companies
(Registered Valuers And Valuation) Rules,
2017 for public comments. The Insolvency
and Bankruptcy Board of India established
under the Insolvency and Bankruptcy Code,
2016 shall be the “Registration Authority”
for the Registered Valuers. Members of a
professional institute with at least five years’
experience after such membership are
eligible to register after passing the
examination being conducted by IBBI. A
registered valuer shall make valuations as
per the Valuation Standards notified from
time to time by the Central Government.
Suggestions/ comments on the draft rules
along with justifications in brief may be sent
latest by 27/06/2017 through email at
comments_rv@mca.gov.in. These Rules
shall come into force with effect from 15th
July, 2017.
http://mca.gov.in/Ministry/pdf/Companie
s_Registered_Valuers_Rules_2017.pdf
SEBI
Listing of Non-Convertible Redeemable
Preference Shares (NCRPS)/ Non-
Convertible Debentures (NCDs) through a
Scheme of Arrangement
Securities Exchange Board of India (SEBI)
vide Circular No. CIR/IMD/DF/50/2017 dated
26th May, 2017 has allowed Listing of Non –
Convertible Redeemable Preference Shares
(NCRPS) / Non-Convertible Debentures
(NCDs) through scheme of arrangement. In
cases where NCRPS/NCDs are issued, in lieu
of specified securities, vide a scheme of
arrangement; and where such NCRPS/NCDs
are proposed to be listed on recognized
stock exchanges, the listed entity shall
additionally comply with the requirements
as specified in the Circular in addition to
compliance with SEBI Circular No.
CFD/DIL3/CIR/2017/21 dated March 10,
2017 as amended from time to time.
http://www.sebi.gov.in/legal/circulars/m
ay-2017/listing-of-non-convertible-
redeemable-preference-shares-ncrps-non-
convertible-debentures-ncds-through-a-
scheme-of-arrangement_34965.html
TAXATION
Central Board of Direct Taxes (CBDT) Issues
Clarification on furnishing Statement of
Financial Transaction (SFT) & SFT
Preliminary Response
CBDT vide its Press Release has clarified that
filing of SFT in Form 61A is mandatory only if
there is atleast one of the Transaction Type
is reportable, by 31st May, 2017. Further
CBDT clarifies that filing of “SFT Preliminary
Response” provided on e-filing portal under
Compliance tab of reporting persons is
mandatory to indicate that a specified
transaction type is not reportable for the
year i.e. “SFT Preliminary Response” is
mandatory to file even if there is no

2. May 29, 2017
reportable transaction during the year. In
case there are reportable transactions for
the year, the reporting person/entity is
required to register with the Income Tax
Department and generate Income Tax
Department Reporting Entity Identification
Number (ITDREIN). Online filing of form 61A
requires a valid class 2 or 3 digital signature
certificate of person responsible for filing the
same. Please refer “DSC Management
Utility” manual under help section on how to
generate the signature file, attaching the
XML with signature and uploading of XML
with signature file in e-Filing portal.
http://www.incometaxindia.gov.in/Lists/P
ress%20Releases/Attachments/627/CBDT-
Clarification-furnishing-SFT-Preliminary-
Response-26-5-2017.pdf
TDS and filing of ITR in case both the
parents are dead of minor
Ministry of Finance, Central Board of Direct
Taxes (CBDT) vide Notification No. 5/2017
dated 29th May, 2017 It has been brought to
the notice of CBDT that in cases of minors
whose both the parents have deceased, lOS
deductors/Banks are clubbing the interest
income accrued to the minor in the hand of
grandparents and issuing lOS certificates to
the grandparents, which is not in accordance
with the law as the Income-tax Act envisages
clubbing of minor's income with that of the
parents only and not any other relative.
Ideally in such type of situations, the income
should be assessed in the hands of the minor
and the income-tax returns be filed by the
minor through his/ her guardian.
http://www.incometaxindia.gov.in/comm
unications/notification/notification_5_201
7_tds.pdf
Requirement of tax deduction at source in
case of entities whose income is exempted
under Section 10 of the Income-tax Act,
1961
Ministry of Finance, Central Board of Direct
Taxes (CBDT) vide Circular No. 18/2017
dated 29th May, 2017 has specified the
requirements of tax deduction at source in
case of entities whose income is exempted
under Section 10 of the Income Tax Act,
1961. It has been decided that in case of
some of the funds mentioned in the circular
or authorities or Boards or bodies, by
whatever name called, referred to in section
10 of the Income-tax Act, whose income is
unconditionally exempt under that section
and who are also statutorily not required to
file return of income as per section 139 of
the Income-tax Act, there would be no
requirement for tax deduction at source,
since their income is anyway exempt under
the Income-tax Act.
http://www.incometaxindia.gov.in/comm
unications/circular/circular_18_2017.pdf
For any query: Contact – Sunaina Jhingan
Email – Sunaina.jhingan@acquisory.com