For Presentation made on Demonetization, AIR, TCS, Presumptive Income, Penny stock assessment at Jalandhar Branch of NIRC of ICAI click at http://lunawat.com/Uploaded_Files/Presentation/Demonetization,AIR,TCS,PresumptiveIncome,Pennystockassessment-Jalandhar.pdf
The same is also available on www.lunawat.com as well as on free Mobile App ‘LUNAWAT’ available through playstore.
I hope the same shall be of use to you.
Warm Regards
CA. Pramod Jain
4. •Quoting of PANQuoting of PANQuoting of PANQuoting of PAN139A(5)(c)139A(5)(c)139A(5)(c)139A(5)(c)
•Statement of SpecifiedStatement of SpecifiedStatement of SpecifiedStatement of Specified
Financial TransactionsFinancial TransactionsFinancial TransactionsFinancial Transactions
285BA285BA285BA285BA
•PenaltiesPenaltiesPenaltiesPenalties
271FA /271FA /271FA /271FA /
271FAA /271FAA /271FAA /271FAA /
272B272B272B272B
Lunawat & Co.
PROVISIONSPROVISIONSPROVISIONSPROVISIONS ---- SECTIONSSECTIONSSECTIONSSECTIONS
5. •Transactions in which PAN isTransactions in which PAN isTransactions in which PAN isTransactions in which PAN is
to be quotedto be quotedto be quotedto be quoted114B114B114B114B
•Verification of PANVerification of PANVerification of PANVerification of PAN114C114C114C114C
•Furnishing of Form 60Furnishing of Form 60Furnishing of Form 60Furnishing of Form 60114D114D114D114D
•Furnishing of Statement ofFurnishing of Statement ofFurnishing of Statement ofFurnishing of Statement of
Financial Transaction (AIR)Financial Transaction (AIR)Financial Transaction (AIR)Financial Transaction (AIR)114E114E114E114E
•Furnishing of Statement ofFurnishing of Statement ofFurnishing of Statement ofFurnishing of Statement of
Reportable AccountReportable AccountReportable AccountReportable Account114F114F114F114F –––– HHHH
Lunawat & Co.
PROVISIONSPROVISIONSPROVISIONSPROVISIONS ---- RULESRULESRULESRULES
6. •Declaration from personsDeclaration from personsDeclaration from personsDeclaration from persons
who do not have PANwho do not have PANwho do not have PANwho do not have PAN60606060
•Statement containingStatement containingStatement containingStatement containing
particulars of declarationparticulars of declarationparticulars of declarationparticulars of declaration
received in Form No. 60received in Form No. 60received in Form No. 60received in Form No. 60
61616161
•Statement of SpecifiedStatement of SpecifiedStatement of SpecifiedStatement of Specified
Financial Transactions (AIR)Financial Transactions (AIR)Financial Transactions (AIR)Financial Transactions (AIR)61A61A61A61A
•Furnishing of Statement ofFurnishing of Statement ofFurnishing of Statement ofFurnishing of Statement of
Reportable AccountReportable AccountReportable AccountReportable Account61B61B61B61B
Lunawat & Co.
PROVISIONSPROVISIONSPROVISIONSPROVISIONS ---- FORMSFORMSFORMSFORMS
7. PAN QUOTINGPAN QUOTINGPAN QUOTINGPAN QUOTING W.E.FW.E.FW.E.FW.E.F. 01.01.2016. 01.01.2016. 01.01.2016. 01.01.2016
Lunawat & Co.
S.S.S.S.
No.No.No.No.
NatureNatureNatureNature of Transactionof Transactionof Transactionof Transaction ValueValueValueValue ofofofof
TransactionTransactionTransactionTransaction
1111 Sale / Purchase of Motor Vehicle orSale / Purchase of Motor Vehicle orSale / Purchase of Motor Vehicle orSale / Purchase of Motor Vehicle or
Vehicle other than 2 WheelerVehicle other than 2 WheelerVehicle other than 2 WheelerVehicle other than 2 Wheeler
AllAllAllAll
2222 OpeningOpeningOpeningOpening anananan BankBankBankBank AAAA/c/c/c/c otherotherotherother thanthanthanthan
timetimetimetime----deposit referred to at Sl. No.12deposit referred to at Sl. No.12deposit referred to at Sl. No.12deposit referred to at Sl. No.12
andandandand Basic Savings Bank DepositBasic Savings Bank DepositBasic Savings Bank DepositBasic Savings Bank Deposit A/cA/cA/cA/c
AllAllAllAll
3333 Application for Debit / Credit CardApplication for Debit / Credit CardApplication for Debit / Credit CardApplication for Debit / Credit Card AllAllAllAll
4444 Opening ofOpening ofOpening ofOpening of DematDematDematDemat A/cA/cA/cA/c AllAllAllAll
5555 Payment to Hotel / Restaurant atPayment to Hotel / Restaurant atPayment to Hotel / Restaurant atPayment to Hotel / Restaurant at
any one timeany one timeany one timeany one time (earlier 25K)(earlier 25K)(earlier 25K)(earlier 25K)
Cash >Cash >Cash >Cash >
50000/50000/50000/50000/----
8. PAN QUOTINGPAN QUOTINGPAN QUOTINGPAN QUOTING W.E.FW.E.FW.E.FW.E.F. 01.01.2016. 01.01.2016. 01.01.2016. 01.01.2016
Lunawat & Co.
S.S.S.S.
No.No.No.No.
NatureNatureNatureNature of Transactionof Transactionof Transactionof Transaction ValueValueValueValue ofofofof
TransactionTransactionTransactionTransaction
6666 Payment for Foreign Travel or foreign currency at 1Payment for Foreign Travel or foreign currency at 1Payment for Foreign Travel or foreign currency at 1Payment for Foreign Travel or foreign currency at 1
timetimetimetime (earlier 25K)(earlier 25K)(earlier 25K)(earlier 25K)
Cash > 50000/Cash > 50000/Cash > 50000/Cash > 50000/----
7777 Payment to MF for purchase of UnitsPayment to MF for purchase of UnitsPayment to MF for purchase of UnitsPayment to MF for purchase of Units > 50000/> 50000/> 50000/> 50000/----
8888 Payment to Co. or Institution for Debentures / BondsPayment to Co. or Institution for Debentures / BondsPayment to Co. or Institution for Debentures / BondsPayment to Co. or Institution for Debentures / Bonds
issued by itissued by itissued by itissued by it
> 50000/> 50000/> 50000/> 50000/----
9999 Payment to RBI for Bonds issued by itPayment to RBI for Bonds issued by itPayment to RBI for Bonds issued by itPayment to RBI for Bonds issued by it > 50000/> 50000/> 50000/> 50000/----
10101010 Cash Deposit with Bank in any 1 dayCash Deposit with Bank in any 1 dayCash Deposit with Bank in any 1 dayCash Deposit with Bank in any 1 day
PO addedPO addedPO addedPO added w.e.fw.e.fw.e.fw.e.f. 15 November 2016. 15 November 2016. 15 November 2016. 15 November 2016
50000/50000/50000/50000/----
>2.50 Lacs>2.50 Lacs>2.50 Lacs>2.50 Lacs
from 9.11.16from 9.11.16from 9.11.16from 9.11.16
to 30.12.16to 30.12.16to 30.12.16to 30.12.16
11111111 Bank Draft / Pay Order / Banker Cheque during oneBank Draft / Pay Order / Banker Cheque during oneBank Draft / Pay Order / Banker Cheque during oneBank Draft / Pay Order / Banker Cheque during one
daydaydayday
Cash > 50000/Cash > 50000/Cash > 50000/Cash > 50000/----
9. PAN QUOTINGPAN QUOTINGPAN QUOTINGPAN QUOTING W.E.FW.E.FW.E.FW.E.F. 01.01.2016. 01.01.2016. 01.01.2016. 01.01.2016
Lunawat & Co.
S.S.S.S.
No.No.No.No.
NatureNatureNatureNature of Transactionof Transactionof Transactionof Transaction ValueValueValueValue ofofofof
TransactionTransactionTransactionTransaction
12121212 Time Deposit withTime Deposit withTime Deposit withTime Deposit with
1.1.1.1. Bank,Bank,Bank,Bank,
2.2.2.2. Post Office,Post Office,Post Office,Post Office,
3.3.3.3. NidhiNidhiNidhiNidhi Co.Co.Co.Co.
4.4.4.4. NBFCNBFCNBFCNBFC
50000/50000/50000/50000/---- eacheacheacheach
transaction ortransaction ortransaction ortransaction or
5 Lacs in5 Lacs in5 Lacs in5 Lacs in
aggregateaggregateaggregateaggregate
duringduringduringduring FYFYFYFY
13131313 Payment for 1 or more PrepaidPayment for 1 or more PrepaidPayment for 1 or more PrepaidPayment for 1 or more Prepaid
Payment Instruments like smartPayment Instruments like smartPayment Instruments like smartPayment Instruments like smart
card; magnetic stripe cards;card; magnetic stripe cards;card; magnetic stripe cards;card; magnetic stripe cards;
internet a/c; online wallets; mobileinternet a/c; online wallets; mobileinternet a/c; online wallets; mobileinternet a/c; online wallets; mobile
a/c; mobile wallets; paper voucher;a/c; mobile wallets; paper voucher;a/c; mobile wallets; paper voucher;a/c; mobile wallets; paper voucher;
mass transit system; othermass transit system; othermass transit system; othermass transit system; other
Cash / draft /Cash / draft /Cash / draft /Cash / draft /
PO / bankerPO / bankerPO / bankerPO / banker
chequechequechequecheque
aggregatingaggregatingaggregatingaggregating >>>>
50000/50000/50000/50000/---- in FYin FYin FYin FY
10. PAN QUOTINGPAN QUOTINGPAN QUOTINGPAN QUOTING W.E.FW.E.FW.E.FW.E.F. 01.01.2016. 01.01.2016. 01.01.2016. 01.01.2016
Lunawat & Co.
S.S.S.S.
No.No.No.No.
NatureNatureNatureNature of Transactionof Transactionof Transactionof Transaction ValueValueValueValue ofofofof
TransactionTransactionTransactionTransaction
14141414 Life InsuranceLife InsuranceLife InsuranceLife Insurance PremiumPremiumPremiumPremium Aggregating >Aggregating >Aggregating >Aggregating >
50000/50000/50000/50000/---- in FYin FYin FYin FY
15151515 Sale / PurchaseSale / PurchaseSale / PurchaseSale / Purchase of Securitiesof Securitiesof Securitiesof Securities
other than Sharesother than Sharesother than Sharesother than Shares per transactionper transactionper transactionper transaction
> 1 Lac> 1 Lac> 1 Lac> 1 Lac
16161616 Sale / Purchase of unlisted sharesSale / Purchase of unlisted sharesSale / Purchase of unlisted sharesSale / Purchase of unlisted shares
per transaction (verificationper transaction (verificationper transaction (verificationper transaction (verification by Co)by Co)by Co)by Co)
[E[E[E[E ---- 50k for issue of shares all Cos]50k for issue of shares all Cos]50k for issue of shares all Cos]50k for issue of shares all Cos]
> 1 Lac> 1 Lac> 1 Lac> 1 Lac
17171717 Sale / Purchase ofSale / Purchase ofSale / Purchase ofSale / Purchase of ImmovableImmovableImmovableImmovable
PropertyPropertyPropertyProperty (earlier 5 L)(earlier 5 L)(earlier 5 L)(earlier 5 L)
> 10 Lacs> 10 Lacs> 10 Lacs> 10 Lacs
Tran. valueTran. valueTran. valueTran. value orororor
50C value50C value50C value50C value
11. PAN QUOTINGPAN QUOTINGPAN QUOTINGPAN QUOTING W.E.FW.E.FW.E.FW.E.F. 01.01.2016. 01.01.2016. 01.01.2016. 01.01.2016
Lunawat & Co.
S.S.S.S.
No.No.No.No.
NatureNatureNatureNature of Transactionof Transactionof Transactionof Transaction ValueValueValueValue ofofofof
TransactionTransactionTransactionTransaction
18181818 Sale / purchase of goods /Sale / purchase of goods /Sale / purchase of goods /Sale / purchase of goods /
servicesservicesservicesservices (earlier(earlier(earlier(earlier 5 L for bullion or5 L for bullion or5 L for bullion or5 L for bullion or
jewellery dealer only)jewellery dealer only)jewellery dealer only)jewellery dealer only)
> 2 Lacs per> 2 Lacs per> 2 Lacs per> 2 Lacs per
transactiontransactiontransactiontransaction
Concerned personConcerned personConcerned personConcerned person to verifyto verifyto verifyto verify PAN & mentionPAN & mentionPAN & mentionPAN & mention
in all documents /invoice/applicationsin all documents /invoice/applicationsin all documents /invoice/applicationsin all documents /invoice/applications
If no PANIf no PANIf no PANIf no PAN –––– take Form 60take Form 60take Form 60take Form 60
Form 61 to be filed half yearly for Form 60Form 61 to be filed half yearly for Form 60Form 61 to be filed half yearly for Form 60Form 61 to be filed half yearly for Form 60
obtainedobtainedobtainedobtained
Form 60 to be retained for 6 yearsForm 60 to be retained for 6 yearsForm 60 to be retained for 6 yearsForm 60 to be retained for 6 years
12. PAN QUOTINGPAN QUOTINGPAN QUOTINGPAN QUOTING –––– NOT REQUIREDNOT REQUIREDNOT REQUIREDNOT REQUIRED
Lunawat & Co.
CG / SG / Consular OfficesCG / SG / Consular OfficesCG / SG / Consular OfficesCG / SG / Consular Offices
NonNonNonNon----ResidentsResidentsResidentsResidents required for allrequired for allrequired for allrequired for all except:except:except:except:
ApplicationApplicationApplicationApplication for Debit and Creditfor Debit and Creditfor Debit and Creditfor Debit and Credit CardCardCardCard
PaymentPaymentPaymentPayment totototo a hotela hotela hotela hotel or restaurant against aor restaurant against aor restaurant against aor restaurant against a billbillbillbill
Payment for foreignPayment for foreignPayment for foreignPayment for foreign travel ortravel ortravel ortravel or foreign currencyforeign currencyforeign currencyforeign currency
PaymentPaymentPaymentPayment to RBI for acquiringto RBI for acquiringto RBI for acquiringto RBI for acquiring bondsbondsbondsbonds
Purchase of DD / PO / Bankers chequePurchase of DD / PO / Bankers chequePurchase of DD / PO / Bankers chequePurchase of DD / PO / Bankers cheque
PaymentPaymentPaymentPayment for prepaidfor prepaidfor prepaidfor prepaid instrumentsinstrumentsinstrumentsinstruments
Sale/purchaseSale/purchaseSale/purchaseSale/purchase ofofofof goods/servicesgoods/servicesgoods/servicesgoods/services exceedingexceedingexceedingexceeding RsRsRsRs. 2L. 2L. 2L. 2L
13. FORM 61 FILINGFORM 61 FILINGFORM 61 FILINGFORM 61 FILING
Lunawat & Co.
To be filed by all verifiers except in case of:To be filed by all verifiers except in case of:To be filed by all verifiers except in case of:To be filed by all verifiers except in case of:
S.S.S.S.
No.No.No.No.
NatureNatureNatureNature of Transactionof Transactionof Transactionof Transaction
(Only where verifier is required to get(Only where verifier is required to get(Only where verifier is required to get(Only where verifier is required to get
tax audit u/s 44AB)tax audit u/s 44AB)tax audit u/s 44AB)tax audit u/s 44AB)
ValueValueValueValue ofofofof
TransactionTransactionTransactionTransaction
5555 Payment to Hotel / Restaurant atPayment to Hotel / Restaurant atPayment to Hotel / Restaurant atPayment to Hotel / Restaurant at
any one timeany one timeany one timeany one time
Cash >Cash >Cash >Cash >
50000/50000/50000/50000/----
6666 Payment for Foreign Travel orPayment for Foreign Travel orPayment for Foreign Travel orPayment for Foreign Travel or
purchase of foreign currency at 1purchase of foreign currency at 1purchase of foreign currency at 1purchase of foreign currency at 1
timetimetimetime
Cash >Cash >Cash >Cash >
50000/50000/50000/50000/----
18181818 Sale / purchase of goods / servicesSale / purchase of goods / servicesSale / purchase of goods / servicesSale / purchase of goods / services > 2 Lacs per> 2 Lacs per> 2 Lacs per> 2 Lacs per
transactiontransactiontransactiontransaction
15. STATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONS
(AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016]
Lunawat & Co.
S.S.S.S.
No.No.No.No.
Nature &Nature &Nature &Nature & Value of TransactionValue of TransactionValue of TransactionValue of Transaction ReportingReportingReportingReporting
PersonPersonPersonPerson
1(a)1(a)1(a)1(a) CashCashCashCash for purchase of bank drafts / payfor purchase of bank drafts / payfor purchase of bank drafts / payfor purchase of bank drafts / pay
orders / banker’s cheque of aggregateorders / banker’s cheque of aggregateorders / banker’s cheque of aggregateorders / banker’s cheque of aggregate
>>>> RsRsRsRs. 10 Lacs in a FY.. 10 Lacs in a FY.. 10 Lacs in a FY.. 10 Lacs in a FY.
BanksBanksBanksBanks
1(b)1(b)1(b)1(b) CashCashCashCash for purchase of prefor purchase of prefor purchase of prefor purchase of pre----paidpaidpaidpaid
instruments by RBI aggregate >instruments by RBI aggregate >instruments by RBI aggregate >instruments by RBI aggregate > RsRsRsRs. 10. 10. 10. 10
Lacs in a FY.Lacs in a FY.Lacs in a FY.Lacs in a FY. [E[E[E[E---- 5L bonds all5L bonds all5L bonds all5L bonds all modes]modes]modes]modes]
BanksBanksBanksBanks
1(c)1(c)1(c)1(c) CashCashCashCash deposits / withdrawals (includingdeposits / withdrawals (includingdeposits / withdrawals (includingdeposits / withdrawals (including
bearer’s cheque) aggregating >bearer’s cheque) aggregating >bearer’s cheque) aggregating >bearer’s cheque) aggregating > RsRsRsRs. 50. 50. 50. 50
Lacs in a FY from 1 or moreLacs in a FY from 1 or moreLacs in a FY from 1 or moreLacs in a FY from 1 or more currentcurrentcurrentcurrent
accountaccountaccountaccount of a person.of a person.of a person.of a person.
BanksBanksBanksBanks
16. STATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONS
(AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016]
Lunawat & Co.
S.S.S.S.
NoNoNoNo
Nature &Nature &Nature &Nature & Value of TransactionValue of TransactionValue of TransactionValue of Transaction ReportingReportingReportingReporting
PersonPersonPersonPerson
2222 CashCashCashCash depositsdepositsdepositsdeposits aggaggaggagg. >. >. >. > RsRsRsRs. 10 Lacs in a. 10 Lacs in a. 10 Lacs in a. 10 Lacs in a
FY, in 1 or more a/FY, in 1 or more a/FY, in 1 or more a/FY, in 1 or more a/cscscscs (other than current(other than current(other than current(other than current
a/c & time deposit)a/c & time deposit)a/c & time deposit)a/c & time deposit) [E[E[E[E---- saving A/c]saving A/c]saving A/c]saving A/c]
BanksBanksBanksBanks
P.O.P.O.P.O.P.O.
3333 One or more time deposits (other thanOne or more time deposits (other thanOne or more time deposits (other thanOne or more time deposits (other than
renewals) of a person aggregating >renewals) of a person aggregating >renewals) of a person aggregating >renewals) of a person aggregating > RsRsRsRs....
10 Lacs in a FY of a person.10 Lacs in a FY of a person.10 Lacs in a FY of a person.10 Lacs in a FY of a person.
BanksBanksBanksBanks
P.O. ;P.O. ;P.O. ;P.O. ; NidhiNidhiNidhiNidhi
NBFCNBFCNBFCNBFC
4444 Payments aggregating toPayments aggregating toPayments aggregating toPayments aggregating to----
((((iiii) >) >) >) > RsRsRsRs. 1 Lac in. 1 Lac in. 1 Lac in. 1 Lac in cashcashcashcash; or; or; or; or
(ii) >(ii) >(ii) >(ii) > RsRsRsRs. 10 Lacs by any other mode,. 10 Lacs by any other mode,. 10 Lacs by any other mode,. 10 Lacs by any other mode,
one or more credit cards in a FYone or more credit cards in a FYone or more credit cards in a FYone or more credit cards in a FY [E[E[E[E –––– 2L]2L]2L]2L]
BanksBanksBanksBanks
issuingissuingissuingissuing
CreditCreditCreditCredit
CardsCardsCardsCards
17. STATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONS
(AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016]
Lunawat & Co.
S.S.S.S.
No.No.No.No.
Nature &Nature &Nature &Nature & Value of TransactionValue of TransactionValue of TransactionValue of Transaction ReportingReportingReportingReporting
PersonPersonPersonPerson
5555 Receipt from a person aggregating >Receipt from a person aggregating >Receipt from a person aggregating >Receipt from a person aggregating >
RsRsRsRs. 10 Lacs in a FY for acquiring bonds. 10 Lacs in a FY for acquiring bonds. 10 Lacs in a FY for acquiring bonds. 10 Lacs in a FY for acquiring bonds
or debentures issued by Co. oror debentures issued by Co. oror debentures issued by Co. oror debentures issued by Co. or
institution (other than renewals)institution (other than renewals)institution (other than renewals)institution (other than renewals) [E[E[E[E---- 5L]5L]5L]5L]
CompanyCompanyCompanyCompany
InstitutionInstitutionInstitutionInstitution
6666 Receipt from a person aggregating >Receipt from a person aggregating >Receipt from a person aggregating >Receipt from a person aggregating >
RsRsRsRs. 10 Lacs in a FY for acquiring. 10 Lacs in a FY for acquiring. 10 Lacs in a FY for acquiring. 10 Lacs in a FY for acquiring
shares (including share applicationshares (including share applicationshares (including share applicationshares (including share application
money)money)money)money) issued by co.issued by co.issued by co.issued by co. [E[E[E[E---- Pub /Pub /Pub /Pub / RghtRghtRghtRght 1L]1L]1L]1L]
CompanyCompanyCompanyCompany
7777 Buy backBuy backBuy backBuy back of shares from a personof shares from a personof shares from a personof shares from a person
(other than bought in open market) for(other than bought in open market) for(other than bought in open market) for(other than bought in open market) for
aggregating >aggregating >aggregating >aggregating > RsRsRsRs. 10 Lacs in a FY .. 10 Lacs in a FY .. 10 Lacs in a FY .. 10 Lacs in a FY .
Listed Co.Listed Co.Listed Co.Listed Co.
18. STATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONS
(AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016]
Lunawat & Co.
S.S.S.S.
No.No.No.No.
Nature &Nature &Nature &Nature & Value of TransactionValue of TransactionValue of TransactionValue of Transaction ReportingReportingReportingReporting
PersonPersonPersonPerson
8888 >>>> RsRsRsRs. 10 Lacs in a FY for acquiring. 10 Lacs in a FY for acquiring. 10 Lacs in a FY for acquiring. 10 Lacs in a FY for acquiring
units of 1 or more schemes of a MFunits of 1 or more schemes of a MFunits of 1 or more schemes of a MFunits of 1 or more schemes of a MF
(except switching)(except switching)(except switching)(except switching) [E[E[E[E---- 2L]2L]2L]2L]
MFMFMFMF
9999 Sale of foreign currency includingSale of foreign currency includingSale of foreign currency includingSale of foreign currency including
through debit /credit card or travellerthrough debit /credit card or travellerthrough debit /credit card or travellerthrough debit /credit card or traveller
chq. or draftchq. or draftchq. or draftchq. or draft etcetcetcetc aggaggaggagg. >. >. >. > RsRsRsRs. 10 L in a FY. 10 L in a FY. 10 L in a FY. 10 L in a FY
AuthorisedAuthorisedAuthorisedAuthorised
DealerDealerDealerDealer
10101010 Purchase or sale of immovablePurchase or sale of immovablePurchase or sale of immovablePurchase or sale of immovable
property value >property value >property value >property value > RsRsRsRs. 30 L or. 30 L or. 30 L or. 30 L or valuedvaluedvaluedvalued
u/s 50Cu/s 50Cu/s 50Cu/s 50C
RegistrarRegistrarRegistrarRegistrar
19. STATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONSSTATEMENT OF FINANCIAL TRANSACTIONS
(AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016](AIR) [01.04.2016]
Lunawat & Co.
S.S.S.S.
No.No.No.No.
Nature &Nature &Nature &Nature & Value of TransactionValue of TransactionValue of TransactionValue of Transaction ReportingReportingReportingReporting
PersonPersonPersonPerson
11111111 Receipt ofReceipt ofReceipt ofReceipt of cashcashcashcash paymentpaymentpaymentpayment RsRsRsRs. 2 Lacs for sale,. 2 Lacs for sale,. 2 Lacs for sale,. 2 Lacs for sale,
by any person, of goods or services of anyby any person, of goods or services of anyby any person, of goods or services of anyby any person, of goods or services of any
nature (other than above mentioned items).nature (other than above mentioned items).nature (other than above mentioned items).nature (other than above mentioned items).
If liable toIf liable toIf liable toIf liable to
Tax AuditTax AuditTax AuditTax Audit
12121212 Cash Deposit from 9.11.16 to 30.12.16Cash Deposit from 9.11.16 to 30.12.16Cash Deposit from 9.11.16 to 30.12.16Cash Deposit from 9.11.16 to 30.12.16
aggregating:aggregating:aggregating:aggregating:
• >>>> 12.50 Lacs in 1 or more Current account12.50 Lacs in 1 or more Current account12.50 Lacs in 1 or more Current account12.50 Lacs in 1 or more Current account
of a personof a personof a personof a person
• >>>> 2.50 Lacs in other than current account2.50 Lacs in other than current account2.50 Lacs in other than current account2.50 Lacs in other than current account
Bank / POBank / POBank / POBank / PO
(inserted by(inserted by(inserted by(inserted by
15.11.16)15.11.16)15.11.16)15.11.16)
Report annually by 31Report annually by 31Report annually by 31Report annually by 31stststst MayMayMayMay –––– for 12for 12for 12for 12thththth
Item before 31Item before 31Item before 31Item before 31stststst January 2017January 2017January 2017January 2017
20. HOW TO DETERMINE THRESHOLD LIMITSHOW TO DETERMINE THRESHOLD LIMITSHOW TO DETERMINE THRESHOLD LIMITSHOW TO DETERMINE THRESHOLD LIMITS
Lunawat & Co.
TTTTakeakeakeake into account all the accounts of theinto account all the accounts of theinto account all the accounts of theinto account all the accounts of the
same naturesame naturesame naturesame nature inininin respect of thatrespect of thatrespect of thatrespect of that person;person;person;person;
AAAAggregateggregateggregateggregate all the transactions of the sameall the transactions of the sameall the transactions of the sameall the transactions of the same
naturenaturenaturenature inininin respect of thatrespect of thatrespect of thatrespect of that person;person;person;person;
AAAAttribute entirettribute entirettribute entirettribute entire value ofvalue ofvalue ofvalue of transactiontransactiontransactiontransaction or theor theor theor the
aggregated value of allaggregated value of allaggregated value of allaggregated value of all transactionstransactionstransactionstransactions to allto allto allto all
personspersonspersonspersons, in a case, in a case, in a case, in a case moremoremoremore thanthanthanthan 1111 person;person;person;person;
AAAApply thresholdpply thresholdpply thresholdpply threshold limit separately to depositslimit separately to depositslimit separately to depositslimit separately to deposits
&&&& withdrawals in respect ofwithdrawals in respect ofwithdrawals in respect ofwithdrawals in respect of Current a/cCurrent a/cCurrent a/cCurrent a/c
22. Lunawat & Co.
TCSTCSTCSTCS
206C (1D) inserted by Finance Act 2012206C (1D) inserted by Finance Act 2012206C (1D) inserted by Finance Act 2012206C (1D) inserted by Finance Act 2012
with the intent towith the intent towith the intent towith the intent to deter generationdeter generationdeter generationdeter generation &&&& use ofuse ofuse ofuse of
unaccountedunaccountedunaccountedunaccounted money on bullion & jewellerymoney on bullion & jewellerymoney on bullion & jewellerymoney on bullion & jewellery
(1F) inserted by Finance Act 2016(1F) inserted by Finance Act 2016(1F) inserted by Finance Act 2016(1F) inserted by Finance Act 2016 ---- EveryEveryEveryEvery
person, being a seller, who receives anyperson, being a seller, who receives anyperson, being a seller, who receives anyperson, being a seller, who receives any
amount as consideration for saleamount as consideration for saleamount as consideration for saleamount as consideration for sale of aof aof aof a motormotormotormotor
vehicle of the value exceedingvehicle of the value exceedingvehicle of the value exceedingvehicle of the value exceeding RsRsRsRs. 10 Lacs,. 10 Lacs,. 10 Lacs,. 10 Lacs,
shall at the time of receiptshall at the time of receiptshall at the time of receiptshall at the time of receipt of suchof suchof suchof such amount,amount,amount,amount,
collect from the buyer, acollect from the buyer, acollect from the buyer, acollect from the buyer, a sum equalsum equalsum equalsum equal totototo 1%1%1%1%
of theof theof theof the sale considerationsale considerationsale considerationsale consideration as incomeas incomeas incomeas income----tax.tax.tax.tax.
23. Lunawat & Co.
TCSTCSTCSTCS
(ID)(ID)(ID)(ID) ---- Every person, being a seller, who receivesEvery person, being a seller, who receivesEvery person, being a seller, who receivesEvery person, being a seller, who receives
any amount in cash as consideration for sale ofany amount in cash as consideration for sale ofany amount in cash as consideration for sale ofany amount in cash as consideration for sale of
bullion or jewellery or any other goods (otherbullion or jewellery or any other goods (otherbullion or jewellery or any other goods (otherbullion or jewellery or any other goods (other
than bullion or jewellery) or providing any service,than bullion or jewellery) or providing any service,than bullion or jewellery) or providing any service,than bullion or jewellery) or providing any service,
shall, atshall, atshall, atshall, at timetimetimetime of receipt of such amount in cash,of receipt of such amount in cash,of receipt of such amount in cash,of receipt of such amount in cash,
collect from the buyer, a sum equal to 1%collect from the buyer, a sum equal to 1%collect from the buyer, a sum equal to 1%collect from the buyer, a sum equal to 1% ofofofof salesalesalesale
consideration as IT, if suchconsideration as IT, if suchconsideration as IT, if suchconsideration as IT, if such consideration:consideration:consideration:consideration:
((((iiii) …(ii)…) …(ii)…) …(ii)…) …(ii)…
(iii) for any goods, other than those referred to in(iii) for any goods, other than those referred to in(iii) for any goods, other than those referred to in(iii) for any goods, other than those referred to in
clause (clause (clause (clause (iiii) & (ii), or any service, exceeds) & (ii), or any service, exceeds) & (ii), or any service, exceeds) & (ii), or any service, exceeds RsRsRsRs. 2 Lacs. 2 Lacs. 2 Lacs. 2 Lacs
Provided that noProvided that noProvided that noProvided that no TCS whichTCS whichTCS whichTCS which TDS under ChapterTDS under ChapterTDS under ChapterTDS under Chapter
XVIIXVIIXVIIXVII----BBBB
24. Lunawat & Co.
TCSTCSTCSTCS ????????????
Mr. A an agriculturist purchasesMr. A an agriculturist purchasesMr. A an agriculturist purchasesMr. A an agriculturist purchases InnovaInnovaInnovaInnova CarCarCarCar
forforforfor RsRsRsRs. 14 Lacs on 30.10.2016. Payment. 14 Lacs on 30.10.2016. Payment. 14 Lacs on 30.10.2016. Payment. 14 Lacs on 30.10.2016. Payment
made by NEFT. TCS?made by NEFT. TCS?made by NEFT. TCS?made by NEFT. TCS?
Mr. X a salaried person sells his MercedesMr. X a salaried person sells his MercedesMr. X a salaried person sells his MercedesMr. X a salaried person sells his Mercedes
Car to Mr. Y forCar to Mr. Y forCar to Mr. Y forCar to Mr. Y for RsRsRsRs. 25 Lacs in cash. TCS??. 25 Lacs in cash. TCS??. 25 Lacs in cash. TCS??. 25 Lacs in cash. TCS??
MrMrMrMr. D issues invoice of. D issues invoice of. D issues invoice of. D issues invoice of RsRsRsRs. 3 Lacs for. 3 Lacs for. 3 Lacs for. 3 Lacs for
interior decoration. TDS u/s 194J deductedinterior decoration. TDS u/s 194J deductedinterior decoration. TDS u/s 194J deductedinterior decoration. TDS u/s 194J deducted
ofofofof RsRsRsRs. 30000/. 30000/. 30000/. 30000/---- payment receivedpayment receivedpayment receivedpayment received RsRsRsRs.... 2. 80L2. 80L2. 80L2. 80L
inininin cash. TCS?cash. TCS?cash. TCS?cash. TCS?
25. Lunawat & Co.
TCSTCSTCSTCS ????????????
Mr. A in business of selling LEDs., covered u/sMr. A in business of selling LEDs., covered u/sMr. A in business of selling LEDs., covered u/sMr. A in business of selling LEDs., covered u/s
44AD for AY 201744AD for AY 201744AD for AY 201744AD for AY 2017----18 annual turnover18 annual turnover18 annual turnover18 annual turnover RsRsRsRs. 80. 80. 80. 80
Lacs, sells LED to Mr. X forLacs, sells LED to Mr. X forLacs, sells LED to Mr. X forLacs, sells LED to Mr. X for RsRsRsRs. 3 lacs in cash.. 3 lacs in cash.. 3 lacs in cash.. 3 lacs in cash.
TCS??TCS??TCS??TCS??
MrMrMrMr.... BBBB in business of selling LEDs., covered u/sin business of selling LEDs., covered u/sin business of selling LEDs., covered u/sin business of selling LEDs., covered u/s
44AD for AY 201744AD for AY 201744AD for AY 201744AD for AY 2017----18 annual turnover18 annual turnover18 annual turnover18 annual turnover RsRsRsRs.... 160160160160
Lacs, sells LED to Mr. YLacs, sells LED to Mr. YLacs, sells LED to Mr. YLacs, sells LED to Mr. Y forforforfor RsRsRsRs. 3 lacs in cash.. 3 lacs in cash.. 3 lacs in cash.. 3 lacs in cash.
TCS??TCS??TCS??TCS??
ABC Trust running a hospital issues a bill ofABC Trust running a hospital issues a bill ofABC Trust running a hospital issues a bill ofABC Trust running a hospital issues a bill of RsRsRsRs. 3. 3. 3. 3
Lacs for heart operation to Mr. A, which is paidLacs for heart operation to Mr. A, which is paidLacs for heart operation to Mr. A, which is paidLacs for heart operation to Mr. A, which is paid
fully in Cash. TCS??fully in Cash. TCS??fully in Cash. TCS??fully in Cash. TCS??
26. Lunawat & Co.
TCSTCSTCSTCS CLARIFICATIONSCLARIFICATIONSCLARIFICATIONSCLARIFICATIONS
Not applicable in case of motor vehicles fromNot applicable in case of motor vehicles fromNot applicable in case of motor vehicles fromNot applicable in case of motor vehicles from
manufacturers to distributors / dealersmanufacturers to distributors / dealersmanufacturers to distributors / dealersmanufacturers to distributors / dealers
All motor vehicles coveredAll motor vehicles coveredAll motor vehicles coveredAll motor vehicles covered
Government, embassies, Consulates, HighGovernment, embassies, Consulates, HighGovernment, embassies, Consulates, HighGovernment, embassies, Consulates, High
Commissions, trade representation of foreignCommissions, trade representation of foreignCommissions, trade representation of foreignCommissions, trade representation of foreign
statestatestatestate –––– No TCSNo TCSNo TCSNo TCS
Tax to be collected at time of receipt of amount,Tax to be collected at time of receipt of amount,Tax to be collected at time of receipt of amount,Tax to be collected at time of receipt of amount,
if instalments …in instalments !!!!if instalments …in instalments !!!!if instalments …in instalments !!!!if instalments …in instalments !!!!
Individual seller if 44AB applicable !!!Individual seller if 44AB applicable !!!Individual seller if 44AB applicable !!!Individual seller if 44AB applicable !!!
TCS only under one subTCS only under one subTCS only under one subTCS only under one sub----sectionsectionsectionsection
27. Lunawat & Co.
TCSTCSTCSTCS CLARIFICATIONS 24.6.16CLARIFICATIONS 24.6.16CLARIFICATIONS 24.6.16CLARIFICATIONS 24.6.16
TCS only if cash is received exceedingTCS only if cash is received exceedingTCS only if cash is received exceedingTCS only if cash is received exceeding
RsRsRsRs. 2 Lacs even if single invoice >. 2 Lacs even if single invoice >. 2 Lacs even if single invoice >. 2 Lacs even if single invoice > RRRRssss. 2. 2. 2. 2
Lacs. Example:Lacs. Example:Lacs. Example:Lacs. Example:
InvoiceInvoiceInvoiceInvoice RsRsRsRs. 5 Lacs. 5 Lacs. 5 Lacs. 5 Lacs –––– Chq.Chq.Chq.Chq. RsRsRsRs. 4 L & cash. 4 L & cash. 4 L & cash. 4 L & cash
RsRsRsRs. 1 L. 1 L. 1 L. 1 L ––––TCS??TCS??TCS??TCS??
InvoiceInvoiceInvoiceInvoice RsRsRsRs. 5 Lacs. 5 Lacs. 5 Lacs. 5 Lacs –––– chq.chq.chq.chq. RsRsRsRs. 2 Lacs, Cash. 2 Lacs, Cash. 2 Lacs, Cash. 2 Lacs, Cash
RRRRssss. 3 Lacs. 3 Lacs. 3 Lacs. 3 Lacs –––– TCS on ???TCS on ???TCS on ???TCS on ???
28. SALE / PURCHASE TRANSACTIONSSALE / PURCHASE TRANSACTIONSSALE / PURCHASE TRANSACTIONSSALE / PURCHASE TRANSACTIONS
Lunawat & Co.
• Obtain PAN, nothing furtherObtain PAN, nothing furtherObtain PAN, nothing furtherObtain PAN, nothing further
• If not, file Form 60 / 61If not, file Form 60 / 61If not, file Form 60 / 61If not, file Form 60 / 61Single Bill > 2Single Bill > 2Single Bill > 2Single Bill > 2
Lacs, No cashLacs, No cashLacs, No cashLacs, No cash
• Obtain PAN, nothing furtherObtain PAN, nothing furtherObtain PAN, nothing furtherObtain PAN, nothing further
• If not, file Form 60 / 61If not, file Form 60 / 61If not, file Form 60 / 61If not, file Form 60 / 61
• Collect TCS @ 1%, file return if cashCollect TCS @ 1%, file return if cashCollect TCS @ 1%, file return if cashCollect TCS @ 1%, file return if cash
component > 2 Lacscomponent > 2 Lacscomponent > 2 Lacscomponent > 2 Lacs
Single Bill > 2Single Bill > 2Single Bill > 2Single Bill > 2
Lacs, some cashLacs, some cashLacs, some cashLacs, some cash
• No TCSNo TCSNo TCSNo TCS
• File AIRFile AIRFile AIRFile AIR
Single Bill < 2 LSingle Bill < 2 LSingle Bill < 2 LSingle Bill < 2 L
but cash receivedbut cash receivedbut cash receivedbut cash received
in year > 2 Lacsin year > 2 Lacsin year > 2 Lacsin year > 2 Lacs
30. ITR DATA AY 2014ITR DATA AY 2014ITR DATA AY 2014ITR DATA AY 2014----15151515
Lunawat & Co.
CATEGORYCATEGORYCATEGORYCATEGORY
NO. OF ITRS FILEDNO. OF ITRS FILEDNO. OF ITRS FILEDNO. OF ITRS FILED
(IN LACS)(IN LACS)(IN LACS)(IN LACS)
IndividualsIndividualsIndividualsIndividuals 365.13365.13365.13365.13
HUFHUFHUFHUF 9.409.409.409.40
FirmFirmFirmFirm 9.189.189.189.18
CompanyCompanyCompanyCompany 7.017.017.017.01
OthersOthersOthersOthers 0.540.540.540.54
TOTALTOTALTOTALTOTAL 391.26391.26391.26391.26
31. ITR DATA AY 2014ITR DATA AY 2014ITR DATA AY 2014ITR DATA AY 2014----15151515
Lunawat & Co.
IncomeIncomeIncomeIncome No. of ITRNo. of ITRNo. of ITRNo. of ITR (in Lacs)(in Lacs)(in Lacs)(in Lacs) IncomeIncomeIncomeIncome (in Crores)(in Crores)(in Crores)(in Crores)
Negative to 0Negative to 0Negative to 0Negative to 0 8.518.518.518.51
0 to 2.5 Lacs0 to 2.5 Lacs0 to 2.5 Lacs0 to 2.5 Lacs 203.95203.95203.95203.95 385696385696385696385696
5 to 10 Lacs5 to 10 Lacs5 to 10 Lacs5 to 10 Lacs 109.71109.71109.71109.71 382474382474382474382474
5 to 10 Lacs5 to 10 Lacs5 to 10 Lacs5 to 10 Lacs 46.4946.4946.4946.49 313181313181313181313181
10 to 25 Lacs10 to 25 Lacs10 to 25 Lacs10 to 25 Lacs 17.1417.1417.1417.14 253562253562253562253562
25 Lacs to 1 Cr25 Lacs to 1 Cr25 Lacs to 1 Cr25 Lacs to 1 Cr 4.594.594.594.59 199741199741199741199741
(In(In(In(In NosNosNosNos))))
1 Cr to 5 Cr1 Cr to 5 Cr1 Cr to 5 Cr1 Cr to 5 Cr 71113711137111371113 137612137612137612137612
5555 CrCrCrCr to 10 Crto 10 Crto 10 Crto 10 Cr 7075707570757075 48949489494894948949
10 Cr to 25Cr10 Cr to 25Cr10 Cr to 25Cr10 Cr to 25Cr 4158415841584158 63112631126311263112
25252525 CrCrCrCr to 50to 50to 50to 50 CrCrCrCr 1417141714171417 48996489964899648996
50505050 CrCrCrCr to 100to 100to 100to 100 CrCrCrCr 774774774774 53893538935389353893
100 Cr to 500 Cr100 Cr to 500 Cr100 Cr to 500 Cr100 Cr to 500 Cr 616616616616 128068128068128068128068
Above 500 CrAbove 500 CrAbove 500 CrAbove 500 Cr 165165165165 419934419934419934419934
2435218243521824352182435218
32. ITR DATA AY 2014ITR DATA AY 2014ITR DATA AY 2014ITR DATA AY 2014----15151515
Lunawat & Co.
Only 3.91 Cr. ITRs filed during AY2014Only 3.91 Cr. ITRs filed during AY2014Only 3.91 Cr. ITRs filed during AY2014Only 3.91 Cr. ITRs filed during AY2014----15151515
Total Income in ITRsTotal Income in ITRsTotal Income in ITRsTotal Income in ITRs RsRsRsRs. 24,35,218. 24,35,218. 24,35,218. 24,35,218 CrsCrsCrsCrs....
2.17% i.e. 8.51 Lakh returns with Nil or2.17% i.e. 8.51 Lakh returns with Nil or2.17% i.e. 8.51 Lakh returns with Nil or2.17% i.e. 8.51 Lakh returns with Nil or
negative incomesnegative incomesnegative incomesnegative incomes
92% ITRs contributed 44.40% ITR Incomes92% ITRs contributed 44.40% ITR Incomes92% ITRs contributed 44.40% ITR Incomes92% ITRs contributed 44.40% ITR Incomes
0.21% ITRs contributed 36.98% ITR0.21% ITRs contributed 36.98% ITR0.21% ITRs contributed 36.98% ITR0.21% ITRs contributed 36.98% ITR
IncomesIncomesIncomesIncomes
0.0004% ITRs contributed 17.24% ITR0.0004% ITRs contributed 17.24% ITR0.0004% ITRs contributed 17.24% ITR0.0004% ITRs contributed 17.24% ITR
IncomesIncomesIncomesIncomes
33. DEMONETIZATIONDEMONETIZATIONDEMONETIZATIONDEMONETIZATION
Notes ofNotes ofNotes ofNotes of RRRRssss. 500/. 500/. 500/. 500/---- //// RsRsRsRs. 1000/. 1000/. 1000/. 1000/---- not anot anot anot a
legal tenderlegal tenderlegal tenderlegal tender w.e.fw.e.fw.e.fw.e.f. 9. 9. 9. 9thththth November 2016November 2016November 2016November 2016
Opportunity given to change throughOpportunity given to change throughOpportunity given to change throughOpportunity given to change through
ever changing limits to:ever changing limits to:ever changing limits to:ever changing limits to:
ExchangeExchangeExchangeExchange
Old with NewOld with NewOld with NewOld with New
DepositDepositDepositDeposit –––– OldOldOldOld –––– 19191919thththth December 2016December 2016December 2016December 2016
WithdrawWithdrawWithdrawWithdraw –––– NewNewNewNew –––– bankers own limitsbankers own limitsbankers own limitsbankers own limits
WWWWorryorryorryorry aboutaboutaboutabout limits !!!!limits !!!!limits !!!!limits !!!!
Lunawat & Co.
34. DEMONETIZATIONDEMONETIZATIONDEMONETIZATIONDEMONETIZATION
Lunawat & Co.
Bank & POBank & POBank & POBank & PO
AccountsAccountsAccountsAccounts
A/c withoutA/c withoutA/c withoutA/c without
PANPANPANPAN
A/c having PANA/c having PANA/c having PANA/c having PAN
Individuals &Individuals &Individuals &Individuals &
HUFHUFHUFHUF
CurrentCurrentCurrentCurrent
Other thanOther thanOther thanOther than
currentcurrentcurrentcurrent
Other thanOther thanOther thanOther than
Individual &Individual &Individual &Individual &
HUFHUFHUFHUF
CurrentCurrentCurrentCurrent
35. DEMONETIZATIONDEMONETIZATIONDEMONETIZATIONDEMONETIZATION
JanJanJanJan DhanDhanDhanDhan AccountsAccountsAccountsAccounts
No Cheque book accountNo Cheque book accountNo Cheque book accountNo Cheque book account
Benefits?? BPLBenefits?? BPLBenefits?? BPLBenefits?? BPL –––– limitlimitlimitlimit –––– 27k p.a.27k p.a.27k p.a.27k p.a.
Consistency??Consistency??Consistency??Consistency??
The Limit ofThe Limit ofThe Limit ofThe Limit of RsRsRsRs. 2.50 L vs.. 2.50 L vs.. 2.50 L vs.. 2.50 L vs. RsRsRsRs. 10 L. 10 L. 10 L. 10 L
The Limit ofThe Limit ofThe Limit ofThe Limit of RsRsRsRs. 12.50 L vs.. 12.50 L vs.. 12.50 L vs.. 12.50 L vs. RsRsRsRs. 50 L. 50 L. 50 L. 50 L
Applicability of Other LawsApplicability of Other LawsApplicability of Other LawsApplicability of Other Laws –––– VAT,VAT,VAT,VAT,
Service Tax, Money Laundering…Service Tax, Money Laundering…Service Tax, Money Laundering…Service Tax, Money Laundering…
Lunawat & Co.
36. DEMONETIZATION & ITDEMONETIZATION & ITDEMONETIZATION & ITDEMONETIZATION & IT
PAN requirement if cash deposited inPAN requirement if cash deposited inPAN requirement if cash deposited inPAN requirement if cash deposited in
aggregate >2.50 Lacs in Bank / POaggregate >2.50 Lacs in Bank / POaggregate >2.50 Lacs in Bank / POaggregate >2.50 Lacs in Bank / PO
AIR ReportsAIR ReportsAIR ReportsAIR Reports
31313131stststst January 2017:January 2017:January 2017:January 2017:
09.11.2016 to 30.12.201609.11.2016 to 30.12.201609.11.2016 to 30.12.201609.11.2016 to 30.12.2016
31313131stststst MayMayMayMay 2017201720172017 ---- FY 2016FY 2016FY 2016FY 2016----17171717
ConsequenceConsequenceConsequenceConsequence of trying to be smartof trying to be smartof trying to be smartof trying to be smart ….….….….
Taxation (2Taxation (2Taxation (2Taxation (2ndndndnd Amendment) Act 2016Amendment) Act 2016Amendment) Act 2016Amendment) Act 2016 ––––
Effective from 15Effective from 15Effective from 15Effective from 15thththth December 2016December 2016December 2016December 2016
Lunawat & Co.
38. VARIOUS TAXES & PENALTIESVARIOUS TAXES & PENALTIESVARIOUS TAXES & PENALTIESVARIOUS TAXES & PENALTIES
Lunawat & Co.
•Tax if income u/s 68 / 69 / 69ATax if income u/s 68 / 69 / 69ATax if income u/s 68 / 69 / 69ATax if income u/s 68 / 69 / 69A
/ 69B / 69C / 69 D/ 69B / 69C / 69 D/ 69B / 69C / 69 D/ 69B / 69C / 69 D
S.S.S.S.
115BBE115BBE115BBE115BBE
•Under reportingUnder reportingUnder reportingUnder reporting –––– 50%50%50%50%
•Misreporting 200%Misreporting 200%Misreporting 200%Misreporting 200%S. 270AS. 270AS. 270AS. 270A
•Penalty if tax u/s 115BBEPenalty if tax u/s 115BBEPenalty if tax u/s 115BBEPenalty if tax u/s 115BBE271AAC271AAC271AAC271AAC
•Search 10%Search 10%Search 10%Search 10% ---- SourceSourceSourceSource etcetcetcetc
•60%60%60%60% ---- no sourceno sourceno sourceno source
271AAB271AAB271AAB271AAB
39. TAX U/S 115BBETAX U/S 115BBETAX U/S 115BBETAX U/S 115BBE
S. 115BBE substitutedS. 115BBE substitutedS. 115BBE substitutedS. 115BBE substituted
Applicable if Income assessed u/s 68 /Applicable if Income assessed u/s 68 /Applicable if Income assessed u/s 68 /Applicable if Income assessed u/s 68 /
69 / 69A / 69B / 69C / 69D even if69 / 69A / 69B / 69C / 69D even if69 / 69A / 69B / 69C / 69D even if69 / 69A / 69B / 69C / 69D even if
reflected in IT Returnreflected in IT Returnreflected in IT Returnreflected in IT Return
Tax Rate increased from 30% to 60%.Tax Rate increased from 30% to 60%.Tax Rate increased from 30% to 60%.Tax Rate increased from 30% to 60%.
PPPPlus surcharge u/Chapter II of Financelus surcharge u/Chapter II of Financelus surcharge u/Chapter II of Financelus surcharge u/Chapter II of Finance
Act @ 25% i.e. 75% plus… cesses i.e.Act @ 25% i.e. 75% plus… cesses i.e.Act @ 25% i.e. 75% plus… cesses i.e.Act @ 25% i.e. 75% plus… cesses i.e.
77.25%77.25%77.25%77.25%
Other cases of share capital, loans, !!!Other cases of share capital, loans, !!!Other cases of share capital, loans, !!!Other cases of share capital, loans, !!!
Lunawat & Co.
40. 115BBE115BBE115BBE115BBE –––– SECTIONSSECTIONSSECTIONSSECTIONS –––– NO SOURCENO SOURCENO SOURCENO SOURCE
Lunawat & Co.
•Cash Credits in booksCash Credits in booksCash Credits in booksCash Credits in books68686868
•Unexplained InvestmentsUnexplained InvestmentsUnexplained InvestmentsUnexplained Investments69696969
•Unexplained Money,Unexplained Money,Unexplained Money,Unexplained Money, JewelleryJewelleryJewelleryJewellery,,,,
bullion,bullion,bullion,bullion, etcetcetcetc69A69A69A69A
•Investments,Investments,Investments,Investments, etcetcetcetc not fullynot fullynot fullynot fully
disclosed in booksdisclosed in booksdisclosed in booksdisclosed in books69B69B69B69B
•Unexplained ExpenditureUnexplained ExpenditureUnexplained ExpenditureUnexplained Expenditure69C69C69C69C
•Amount borrowed or repaid inAmount borrowed or repaid inAmount borrowed or repaid inAmount borrowed or repaid in
HundiHundiHundiHundi69D69D69D69D
41. PENALTY U/S 271AACPENALTY U/S 271AACPENALTY U/S 271AACPENALTY U/S 271AAC
New section introducedNew section introducedNew section introducedNew section introduced
If tax u/s 115BBE paid within relevantIf tax u/s 115BBE paid within relevantIf tax u/s 115BBE paid within relevantIf tax u/s 115BBE paid within relevant
previous yearprevious yearprevious yearprevious year –––– no penalty otherwiseno penalty otherwiseno penalty otherwiseno penalty otherwise
penalty @ 10% of taxpenalty @ 10% of taxpenalty @ 10% of taxpenalty @ 10% of tax
Procedure u/s 274 / 275 to be followedProcedure u/s 274 / 275 to be followedProcedure u/s 274 / 275 to be followedProcedure u/s 274 / 275 to be followed
for imposing penaltyfor imposing penaltyfor imposing penaltyfor imposing penalty
No penalty u/s 270ANo penalty u/s 270ANo penalty u/s 270ANo penalty u/s 270A
In case of search penalty u/s 271AABIn case of search penalty u/s 271AABIn case of search penalty u/s 271AABIn case of search penalty u/s 271AAB
to be levied not u/s 271AACto be levied not u/s 271AACto be levied not u/s 271AACto be levied not u/s 271AAC
Lunawat & Co.
42. PENALTY U/S 271AABPENALTY U/S 271AABPENALTY U/S 271AABPENALTY U/S 271AAB
In case of search initiated after theIn case of search initiated after theIn case of search initiated after theIn case of search initiated after the
Amendment ActAmendment ActAmendment ActAmendment Act –––– if income declaredif income declaredif income declaredif income declared
in statement u/s 132(4) and tax andin statement u/s 132(4) and tax andin statement u/s 132(4) and tax andin statement u/s 132(4) and tax and
interest paid & ITR Filedinterest paid & ITR Filedinterest paid & ITR Filedinterest paid & ITR Filed–––– penaltypenaltypenaltypenalty
increased from 10% to 30% of incomeincreased from 10% to 30% of incomeincreased from 10% to 30% of incomeincreased from 10% to 30% of income
If source not declared or otherIf source not declared or otherIf source not declared or otherIf source not declared or other
conditions not satisfiedconditions not satisfiedconditions not satisfiedconditions not satisfied –––– Penalty fixedPenalty fixedPenalty fixedPenalty fixed
@ 60% of income by Finance Act 2016@ 60% of income by Finance Act 2016@ 60% of income by Finance Act 2016@ 60% of income by Finance Act 2016
Lunawat & Co.
43. PMGKYPMGKYPMGKYPMGKY 2016 &2016 &2016 &2016 & PMGKDSPMGKDSPMGKDSPMGKDS 2016201620162016
Taxation and Investment Regime for PradhanTaxation and Investment Regime for PradhanTaxation and Investment Regime for PradhanTaxation and Investment Regime for Pradhan
MantriMantriMantriMantri GaribGaribGaribGarib KKKKalyanalyanalyanalyan YojnaYojnaYojnaYojna 2016201620162016
Chapter IX A introduced in Finance Act.Chapter IX A introduced in Finance Act.Chapter IX A introduced in Finance Act.Chapter IX A introduced in Finance Act.
Any person including non resident can declareAny person including non resident can declareAny person including non resident can declareAny person including non resident can declare
Deposit in scheme named as PradhanDeposit in scheme named as PradhanDeposit in scheme named as PradhanDeposit in scheme named as Pradhan MantriMantriMantriMantri
GaribGaribGaribGarib KalyanKalyanKalyanKalyan Deposit Scheme 2016Deposit Scheme 2016Deposit Scheme 2016Deposit Scheme 2016
Tax in PMGKY 2016Tax in PMGKY 2016Tax in PMGKY 2016Tax in PMGKY 2016
Investment in PMGKDS 2016Investment in PMGKDS 2016Investment in PMGKDS 2016Investment in PMGKDS 2016
Commences on 17Commences on 17Commences on 17Commences on 17thththth December 2016December 2016December 2016December 2016
Ends on 31Ends on 31Ends on 31Ends on 31stststst March 2017March 2017March 2017March 2017
Lunawat & Co.
44. PMGKYPMGKYPMGKYPMGKY 2016201620162016
To include cash or deposit in accountTo include cash or deposit in accountTo include cash or deposit in accountTo include cash or deposit in account
maintained with Bank / PO for any A. Y.maintained with Bank / PO for any A. Y.maintained with Bank / PO for any A. Y.maintained with Bank / PO for any A. Y.
commencing on or before 1.4.2017commencing on or before 1.4.2017commencing on or before 1.4.2017commencing on or before 1.4.2017
Declaration in Form 1Declaration in Form 1Declaration in Form 1Declaration in Form 1
Amount declared not to be included in totalAmount declared not to be included in totalAmount declared not to be included in totalAmount declared not to be included in total
incomeincomeincomeincome
Certificate in Form 2 within 30 days fromCertificate in Form 2 within 30 days fromCertificate in Form 2 within 30 days fromCertificate in Form 2 within 30 days from
end of month in which declaration madeend of month in which declaration madeend of month in which declaration madeend of month in which declaration made
RevisionRevisionRevisionRevision allowed due to omission or wrongallowed due to omission or wrongallowed due to omission or wrongallowed due to omission or wrong
statementstatementstatementstatement––––within timewithin timewithin timewithin time limitlimitlimitlimit
Lunawat & Co.
45. PMGKYPMGKYPMGKYPMGKY 2016201620162016
No deduction of any expenditure orNo deduction of any expenditure orNo deduction of any expenditure orNo deduction of any expenditure or
allowance to be allowed againstallowance to be allowed againstallowance to be allowed againstallowance to be allowed against
income in respect of which declarationincome in respect of which declarationincome in respect of which declarationincome in respect of which declaration
is made.is made.is made.is made.
Tax to be paid @ 30% plus surchargeTax to be paid @ 30% plus surchargeTax to be paid @ 30% plus surchargeTax to be paid @ 30% plus surcharge
(PMGKC) @ 33% &(PMGKC) @ 33% &(PMGKC) @ 33% &(PMGKC) @ 33% & penalty @ 10%penalty @ 10%penalty @ 10%penalty @ 10% ofofofof
income i.eincome i.eincome i.eincome i.e.... 49.90% in ITNS 28749.90% in ITNS 28749.90% in ITNS 28749.90% in ITNS 287
To be paid before making declarationTo be paid before making declarationTo be paid before making declarationTo be paid before making declaration
Amount paid is not refundableAmount paid is not refundableAmount paid is not refundableAmount paid is not refundable
Lunawat & Co.
46. PMGKDSPMGKDSPMGKDSPMGKDS 2016201620162016
To deposit not less than 25To deposit not less than 25To deposit not less than 25To deposit not less than 25% of% of% of% of
undisclosed income in PMGKDS 2016undisclosed income in PMGKDS 2016undisclosed income in PMGKDS 2016undisclosed income in PMGKDS 2016
LockLockLockLock in period of 4in period of 4in period of 4in period of 4 yearsyearsyearsyears
Deposit in multiple ofDeposit in multiple ofDeposit in multiple ofDeposit in multiple of RsRsRsRs. 100/. 100/. 100/. 100/----
Deposit in singleDeposit in singleDeposit in singleDeposit in single payment with banks inpayment with banks inpayment with banks inpayment with banks in
Form IIForm IIForm IIForm II
All Banks to accept deposits and issueAll Banks to accept deposits and issueAll Banks to accept deposits and issueAll Banks to accept deposits and issue
acknowledgementacknowledgementacknowledgementacknowledgement
Bond ledger A/c with RBIBond ledger A/c with RBIBond ledger A/c with RBIBond ledger A/c with RBI –––– Certificate inCertificate inCertificate inCertificate in
Form IForm IForm IForm I
Lunawat & Co.
47. PMGKDSPMGKDSPMGKDSPMGKDS 2016201620162016
No interest to be paidNo interest to be paidNo interest to be paidNo interest to be paid
Applicant to have PANApplicant to have PANApplicant to have PANApplicant to have PAN
Nomination to be made in Form IIINomination to be made in Form IIINomination to be made in Form IIINomination to be made in Form III
Nomination varied / cancelledNomination varied / cancelledNomination varied / cancelledNomination varied / cancelled ---- Form IVForm IVForm IVForm IV
Transferable to nominee /legal heir in caseTransferable to nominee /legal heir in caseTransferable to nominee /legal heir in caseTransferable to nominee /legal heir in case
of death onlyof death onlyof death onlyof death only
Bonds not TradableBonds not TradableBonds not TradableBonds not Tradable
On maturityOn maturityOn maturityOn maturity ---- credit to bank a/c as percredit to bank a/c as percredit to bank a/c as percredit to bank a/c as per
details on recorddetails on recorddetails on recorddetails on record –––– if changedif changedif changedif changed ---- intimateintimateintimateintimate
Lunawat & Co.
48. NOT TO APPLYNOT TO APPLYNOT TO APPLYNOT TO APPLY –––– CASES SPECIFIED UNDERCASES SPECIFIED UNDERCASES SPECIFIED UNDERCASES SPECIFIED UNDER
Conservation of Foreign Exchange and Prevention ofConservation of Foreign Exchange and Prevention ofConservation of Foreign Exchange and Prevention ofConservation of Foreign Exchange and Prevention of
Smuggling Activities Act, 1974.Smuggling Activities Act, 1974.Smuggling Activities Act, 1974.Smuggling Activities Act, 1974.
Offence punishable under Chapter IX or Chapter XVII ofOffence punishable under Chapter IX or Chapter XVII ofOffence punishable under Chapter IX or Chapter XVII ofOffence punishable under Chapter IX or Chapter XVII of
the Indian Penal Codethe Indian Penal Codethe Indian Penal Codethe Indian Penal Code
Narcotic Drugs and Psychotropic Substances ActNarcotic Drugs and Psychotropic Substances ActNarcotic Drugs and Psychotropic Substances ActNarcotic Drugs and Psychotropic Substances Act
CasesCasesCasesCases under Black Money Actunder Black Money Actunder Black Money Actunder Black Money Act
Persons notified under Special Court (Trial of offencesPersons notified under Special Court (Trial of offencesPersons notified under Special Court (Trial of offencesPersons notified under Special Court (Trial of offences
relating to securities) Act 1992relating to securities) Act 1992relating to securities) Act 1992relating to securities) Act 1992
Unlawful Activities (Prevention) Act, 1967,Unlawful Activities (Prevention) Act, 1967,Unlawful Activities (Prevention) Act, 1967,Unlawful Activities (Prevention) Act, 1967,
Prevention of Corruption Act, 1988,Prevention of Corruption Act, 1988,Prevention of Corruption Act, 1988,Prevention of Corruption Act, 1988,
Prohibition ofProhibition ofProhibition ofProhibition of BenamiBenamiBenamiBenami Property Transactions Act, 1988Property Transactions Act, 1988Property Transactions Act, 1988Property Transactions Act, 1988
Prevention of MoneyPrevention of MoneyPrevention of MoneyPrevention of Money----Laundering Act, 2002Laundering Act, 2002Laundering Act, 2002Laundering Act, 2002
Lunawat & Co.
49. EVIDENCEEVIDENCEEVIDENCEEVIDENCE
•Notwithstanding anything contained in anyNotwithstanding anything contained in anyNotwithstanding anything contained in anyNotwithstanding anything contained in any
other law for the time being in force,other law for the time being in force,other law for the time being in force,other law for the time being in force,
nothing contained in any declaration madenothing contained in any declaration madenothing contained in any declaration madenothing contained in any declaration made
u/s 183 shall be admissible in evidenceu/s 183 shall be admissible in evidenceu/s 183 shall be admissible in evidenceu/s 183 shall be admissible in evidence
against declarant for purpose of anyagainst declarant for purpose of anyagainst declarant for purpose of anyagainst declarant for purpose of any
proceeding relating to imposition ofproceeding relating to imposition ofproceeding relating to imposition ofproceeding relating to imposition of
penalty,penalty,penalty,penalty, other than the penaltyother than the penaltyother than the penaltyother than the penalty leviableleviableleviableleviable u/su/su/su/s
185, or for purposes of prosecution under185, or for purposes of prosecution under185, or for purposes of prosecution under185, or for purposes of prosecution under
IT Act or the WT Act.IT Act or the WT Act.IT Act or the WT Act.IT Act or the WT Act.
IDSIDSIDSIDS
2016201620162016
•NothwithstandingNothwithstandingNothwithstandingNothwithstanding anything contained inanything contained inanything contained inanything contained in
any other law for the time being in force,any other law for the time being in force,any other law for the time being in force,any other law for the time being in force,
nothing contained in any declaration madenothing contained in any declaration madenothing contained in any declaration madenothing contained in any declaration made
u/s 199C(1) shall be admissible inu/s 199C(1) shall be admissible inu/s 199C(1) shall be admissible inu/s 199C(1) shall be admissible in
evidence against the declarant for theevidence against the declarant for theevidence against the declarant for theevidence against the declarant for the
purpose of any proceeding under any Actpurpose of any proceeding under any Actpurpose of any proceeding under any Actpurpose of any proceeding under any Act
other than the Acts mentioned in sectionother than the Acts mentioned in sectionother than the Acts mentioned in sectionother than the Acts mentioned in section
199199199199----OOOO
PMGKDSPMGKDSPMGKDSPMGKDS
2016201620162016
Lunawat & Co.
50. 115BBE VS.115BBE VS.115BBE VS.115BBE VS. PMGKDSPMGKDSPMGKDSPMGKDS
Assumptions:Assumptions:Assumptions:Assumptions:
Amount to be disclosedAmount to be disclosedAmount to be disclosedAmount to be disclosed RsRsRsRs. 10. 10. 10. 10
LakhsLakhsLakhsLakhs
No SourceNo SourceNo SourceNo Source
Tax to be paid during the year, henceTax to be paid during the year, henceTax to be paid during the year, henceTax to be paid during the year, hence
no penaltyno penaltyno penaltyno penalty
Lunawat & Co.
51. 115BBE VS.115BBE VS.115BBE VS.115BBE VS. PMGKDSPMGKDSPMGKDSPMGKDS
Lunawat & Co.
S.115BBES.115BBES.115BBES.115BBE PMGKDSPMGKDSPMGKDSPMGKDS
Tax to be paidTax to be paidTax to be paidTax to be paid 7.7257.7257.7257.725 4.994.994.994.99
To be deposited in SchemeTo be deposited in SchemeTo be deposited in SchemeTo be deposited in Scheme NilNilNilNil 2.502.502.502.50
ImmediateImmediateImmediateImmediate available inavailable inavailable inavailable in
HandHandHandHand
2.2752.2752.2752.275 2.512.512.512.51
InttInttInttIntt @ 9% earned for 4@ 9% earned for 4@ 9% earned for 4@ 9% earned for 4
yearsyearsyearsyears
0.820.820.820.82 0.900.900.900.90
Money in hand after 4Money in hand after 4Money in hand after 4Money in hand after 4
yearsyearsyearsyears
3.0953.0953.0953.095 5.915.915.915.91
52. TAX NOT PAIDTAX NOT PAIDTAX NOT PAIDTAX NOT PAID –––– 115BBE APPLICABLE115BBE APPLICABLE115BBE APPLICABLE115BBE APPLICABLE
Lunawat & Co.
143(3)143(3)143(3)143(3)
//// 147147147147
158BC158BC158BC158BC
Tax to be paid onTax to be paid onTax to be paid onTax to be paid on
assessmentassessmentassessmentassessment
7.7257.7257.7257.725 7.7257.7257.7257.725
Penalty u/s 271AACPenalty u/s 271AACPenalty u/s 271AACPenalty u/s 271AAC 0.750.750.750.75 NANANANA
Penalty u/s 271AABPenalty u/s 271AABPenalty u/s 271AABPenalty u/s 271AAB
(No source)(No source)(No source)(No source)
NANANANA 6.006.006.006.00
Total (Plus Interest)Total (Plus Interest)Total (Plus Interest)Total (Plus Interest) 8.4758.4758.4758.475 13.72513.72513.72513.725
53. PMGKYPMGKYPMGKYPMGKY 2016 &2016 &2016 &2016 & PMGKDSPMGKDSPMGKDSPMGKDS 2016201620162016
Lunawat & Co.
Decide theDecide theDecide theDecide the
amount to beamount to beamount to beamount to be
discloseddiscloseddiscloseddisclosed
Deposit TaxDeposit TaxDeposit TaxDeposit Tax etcetcetcetc
@ 49.90% in@ 49.90% in@ 49.90% in@ 49.90% in
ITNS 287ITNS 287ITNS 287ITNS 287
Deposit 25% ofDeposit 25% ofDeposit 25% ofDeposit 25% of
undisclosedundisclosedundisclosedundisclosed
amount inamount inamount inamount in
PMGKDS 2016PMGKDS 2016PMGKDS 2016PMGKDS 2016
in Form IIin Form IIin Form IIin Form II
Get theGet theGet theGet the
Certificate ofCertificate ofCertificate ofCertificate of
Deposit in FormDeposit in FormDeposit in FormDeposit in Form
IIII
File declarationFile declarationFile declarationFile declaration
for PMGKYfor PMGKYfor PMGKYfor PMGKY
2016 in Form 12016 in Form 12016 in Form 12016 in Form 1
On successfulOn successfulOn successfulOn successful
declaration getdeclaration getdeclaration getdeclaration get
certificate incertificate incertificate incertificate in
Form 2Form 2Form 2Form 2
54. FORM 1 ESSENTIALSFORM 1 ESSENTIALSFORM 1 ESSENTIALSFORM 1 ESSENTIALS
To login toTo login toTo login toTo login to www.incometaxindiaefiling.gov.inwww.incometaxindiaefiling.gov.inwww.incometaxindiaefiling.gov.inwww.incometaxindiaefiling.gov.in
To select:To select:To select:To select:
Jurisdictional Pr. CIT / CIT; orJurisdictional Pr. CIT / CIT; orJurisdictional Pr. CIT / CIT; orJurisdictional Pr. CIT / CIT; or
(CIT) CPC(CIT) CPC(CIT) CPC(CIT) CPC,,,, BengaluruBengaluruBengaluruBengaluru
To give detail of:To give detail of:To give detail of:To give detail of:
Amount held in cashAmount held in cashAmount held in cashAmount held in cash
Amount deposited in bank / POAmount deposited in bank / POAmount deposited in bank / POAmount deposited in bank / PO –––– IFSC codeIFSC codeIFSC codeIFSC code
To attach:To attach:To attach:To attach:
Tax paymentTax paymentTax paymentTax payment challanchallanchallanchallan ITNS 287ITNS 287ITNS 287ITNS 287
Proof of deposit in PMGKDS 2016Proof of deposit in PMGKDS 2016Proof of deposit in PMGKDS 2016Proof of deposit in PMGKDS 2016
Lunawat & Co.
55. DEMONETIZATIONDEMONETIZATIONDEMONETIZATIONDEMONETIZATION –––– WHAT TO DO?WHAT TO DO?WHAT TO DO?WHAT TO DO?
Deposit cash as per books / cash flowDeposit cash as per books / cash flowDeposit cash as per books / cash flowDeposit cash as per books / cash flow –––– as on 8as on 8as on 8as on 8thththth
November 2016November 2016November 2016November 2016
Avail PMGKY 2016 & PMGKDS 2016 if no sourceAvail PMGKY 2016 & PMGKDS 2016 if no sourceAvail PMGKY 2016 & PMGKDS 2016 if no sourceAvail PMGKY 2016 & PMGKDS 2016 if no source
Limited ScrutinyLimited ScrutinyLimited ScrutinyLimited Scrutiny
Ultimately IT assessment to be doneUltimately IT assessment to be doneUltimately IT assessment to be doneUltimately IT assessment to be done
Revised ITR for AY 2015Revised ITR for AY 2015Revised ITR for AY 2015Revised ITR for AY 2015----16 !!!!!!16 !!!!!!16 !!!!!!16 !!!!!!
DoDoDoDo not get swayed by rumours and forwardednot get swayed by rumours and forwardednot get swayed by rumours and forwardednot get swayed by rumours and forwarded
messagesmessagesmessagesmessages
Believe in your ability and knowledge..Believe in your ability and knowledge..Believe in your ability and knowledge..Believe in your ability and knowledge..
Time to contribute to the nation and ProfessionTime to contribute to the nation and ProfessionTime to contribute to the nation and ProfessionTime to contribute to the nation and Profession
Lunawat & Co.
56.
57. Lunawat & Co.
PRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATION
•PGBP other thanPGBP other thanPGBP other thanPGBP other than
professionals and agentsprofessionals and agentsprofessionals and agentsprofessionals and agents44AD44AD44AD44AD
•ProfessionalsProfessionalsProfessionalsProfessionals44ADA44ADA44ADA44ADA
•Goods CarriagesGoods CarriagesGoods CarriagesGoods Carriages44AE44AE44AE44AE
58. Lunawat & Co.
PRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATION
• Section 44ADSection 44ADSection 44ADSection 44AD
• If incomeIf incomeIf incomeIf income CLAIMEDCLAIMEDCLAIMEDCLAIMED ---- Presumptive then:Presumptive then:Presumptive then:Presumptive then:
• No books of accounts u/s 44AANo books of accounts u/s 44AANo books of accounts u/s 44AANo books of accounts u/s 44AA
• No audit u/s 44ABNo audit u/s 44ABNo audit u/s 44ABNo audit u/s 44AB
• Deemed income of 8% and aboveDeemed income of 8% and aboveDeemed income of 8% and aboveDeemed income of 8% and above
• 6% if receipts by banking / digital6% if receipts by banking / digital6% if receipts by banking / digital6% if receipts by banking / digital
channel (to be proposed in Finance Billchannel (to be proposed in Finance Billchannel (to be proposed in Finance Billchannel (to be proposed in Finance Bill
2017 for FY 20162017 for FY 20162017 for FY 20162017 for FY 2016----17)17)17)17)
• All deductions u/s 30 to 38 deemed toAll deductions u/s 30 to 38 deemed toAll deductions u/s 30 to 38 deemed toAll deductions u/s 30 to 38 deemed to
have been given full effect.have been given full effect.have been given full effect.have been given full effect.
59. Lunawat & Co.
PRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATION ---- CHANGESCHANGESCHANGESCHANGES
• Limit u/s 44AD increased from 1 Cr to 2 CrLimit u/s 44AD increased from 1 Cr to 2 CrLimit u/s 44AD increased from 1 Cr to 2 CrLimit u/s 44AD increased from 1 Cr to 2 Cr
• S. 44ADA introduced for ProfessionalsS. 44ADA introduced for ProfessionalsS. 44ADA introduced for ProfessionalsS. 44ADA introduced for Professionals –––– LimitLimitLimitLimit
50 Lacs50 Lacs50 Lacs50 Lacs –––– Deemed IncomeDeemed IncomeDeemed IncomeDeemed Income ----50%50%50%50%
• For firmsFor firmsFor firmsFor firms ---- partners salary & interest notpartners salary & interest notpartners salary & interest notpartners salary & interest not
allowable for business as well as professionalallowable for business as well as professionalallowable for business as well as professionalallowable for business as well as professional
• If benefit u/s 44AD not claimed in 1 year thenIf benefit u/s 44AD not claimed in 1 year thenIf benefit u/s 44AD not claimed in 1 year thenIf benefit u/s 44AD not claimed in 1 year then
cannot claim in next 5 years. In such case tocannot claim in next 5 years. In such case tocannot claim in next 5 years. In such case tocannot claim in next 5 years. In such case to
maintain books if income > maximum amountmaintain books if income > maximum amountmaintain books if income > maximum amountmaintain books if income > maximum amount
not chargeable to tax and audit u/s 44ABnot chargeable to tax and audit u/s 44ABnot chargeable to tax and audit u/s 44ABnot chargeable to tax and audit u/s 44AB
• No similar clause for professionals u/s 44ADANo similar clause for professionals u/s 44ADANo similar clause for professionals u/s 44ADANo similar clause for professionals u/s 44ADA
• Advance Tax for 44AD onlyAdvance Tax for 44AD onlyAdvance Tax for 44AD onlyAdvance Tax for 44AD only–––– 15151515thththth MarchMarchMarchMarch
60. APPLICABILITY OF 44AD / 44AB ON MR. AAPPLICABILITY OF 44AD / 44AB ON MR. AAPPLICABILITY OF 44AD / 44AB ON MR. AAPPLICABILITY OF 44AD / 44AB ON MR. A
•Y/N
AY 2017AY 2017AY 2017AY 2017----18181818 –––– TTTT –––– RsRsRsRs. 120 Lacs . P. 120 Lacs . P. 120 Lacs . P. 120 Lacs . P
–––– 10 L, TI10 L, TI10 L, TI10 L, TI –––– 9 L9 L9 L9 L
•N/Y
AY 2018AY 2018AY 2018AY 2018----19191919 –––– TTTT –––– RsRsRsRs. 120 Lacs . P. 120 Lacs . P. 120 Lacs . P. 120 Lacs . P
–––– 8 L, TI8 L, TI8 L, TI8 L, TI –––– 6 L6 L6 L6 L
•N/Y
AY 2019AY 2019AY 2019AY 2019----20202020 –––– TTTT –––– RsRsRsRs. 70 Lacs . P. 70 Lacs . P. 70 Lacs . P. 70 Lacs . P ––––
10 L, TI10 L, TI10 L, TI10 L, TI –––– 9 L9 L9 L9 L
•N/N
AY 2020AY 2020AY 2020AY 2020----21212121 –––– TTTT –––– RsRsRsRs. 60 Lacs . P. 60 Lacs . P. 60 Lacs . P. 60 Lacs . P ––––
10 L, TI10 L, TI10 L, TI10 L, TI –––– 2 L2 L2 L2 L
Lunawat & Co.
61. Lunawat & Co.
40A VS 44AD40A VS 44AD40A VS 44AD40A VS 44AD
• Both s. 40A & s. 44AD use nonBoth s. 40A & s. 44AD use nonBoth s. 40A & s. 44AD use nonBoth s. 40A & s. 44AD use non----obstanteobstanteobstanteobstante
clauseclauseclauseclause
• Where there is a conflict between a generalWhere there is a conflict between a generalWhere there is a conflict between a generalWhere there is a conflict between a general
and special provisions, the latter shall prevailand special provisions, the latter shall prevailand special provisions, the latter shall prevailand special provisions, the latter shall prevail ----
Union of India &Union of India &Union of India &Union of India & AnrAnrAnrAnr. vs. India. vs. India. vs. India. vs. India FishariesFishariesFishariesFisharies (P) Ltd.(P) Ltd.(P) Ltd.(P) Ltd.
(1965) 57 ITR 331(SC).(1965) 57 ITR 331(SC).(1965) 57 ITR 331(SC).(1965) 57 ITR 331(SC).
• This rule is subject to the condition that thereThis rule is subject to the condition that thereThis rule is subject to the condition that thereThis rule is subject to the condition that there
is nothing in the general provisions, express oris nothing in the general provisions, express oris nothing in the general provisions, express oris nothing in the general provisions, express or
implied, indicating any intention to theimplied, indicating any intention to theimplied, indicating any intention to theimplied, indicating any intention to the
contrarycontrarycontrarycontrary ---- CIT vs.CIT vs.CIT vs.CIT vs. ShahzadaShahzadaShahzadaShahzada NandNandNandNand & Sons& Sons& Sons& Sons
(1966) 60 ITR 392 (SC)(1966) 60 ITR 392 (SC)(1966) 60 ITR 392 (SC)(1966) 60 ITR 392 (SC)
62. Lunawat & Co.
40A VS 44AD40A VS 44AD40A VS 44AD40A VS 44AD
• Applying the said rules of interpretation, it isApplying the said rules of interpretation, it isApplying the said rules of interpretation, it isApplying the said rules of interpretation, it is
clear that since s. 44AD is a special provisionclear that since s. 44AD is a special provisionclear that since s. 44AD is a special provisionclear that since s. 44AD is a special provision
whereas s. 40A is a general provision & therewhereas s. 40A is a general provision & therewhereas s. 40A is a general provision & therewhereas s. 40A is a general provision & there
is nothing in s. 40A indicating any intention tois nothing in s. 40A indicating any intention tois nothing in s. 40A indicating any intention tois nothing in s. 40A indicating any intention to
the contrary, s. 40A will have no applicationthe contrary, s. 40A will have no applicationthe contrary, s. 40A will have no applicationthe contrary, s. 40A will have no application
where a case is covered by s. 44ADwhere a case is covered by s. 44ADwhere a case is covered by s. 44ADwhere a case is covered by s. 44AD
• Also s. 44AD is a later section and LegislatureAlso s. 44AD is a later section and LegislatureAlso s. 44AD is a later section and LegislatureAlso s. 44AD is a later section and Legislature
must have deliberately used in that section themust have deliberately used in that section themust have deliberately used in that section themust have deliberately used in that section the
nonnonnonnon----obstantaobstantaobstantaobstanta clause despite the fact that s.clause despite the fact that s.clause despite the fact that s.clause despite the fact that s.
40A, which is already on the statute, is using40A, which is already on the statute, is using40A, which is already on the statute, is using40A, which is already on the statute, is using
the same expression.the same expression.the same expression.the same expression.
64. Lunawat & Co.
SECTION 44AD ESSENTIALSSECTION 44AD ESSENTIALSSECTION 44AD ESSENTIALSSECTION 44AD ESSENTIALS
• Should be eligibleShould be eligibleShould be eligibleShould be eligible assesseeassesseeassesseeassessee
• Ind., HUF, Firm (except LLP); andInd., HUF, Firm (except LLP); andInd., HUF, Firm (except LLP); andInd., HUF, Firm (except LLP); and
• No s. 10A, 10AA, 10B, 10BA &No s. 10A, 10AA, 10B, 10BA &No s. 10A, 10AA, 10B, 10BA &No s. 10A, 10AA, 10B, 10BA & ChpChpChpChp VIA Part CVIA Part CVIA Part CVIA Part C
• Should be doing eligible businessShould be doing eligible businessShould be doing eligible businessShould be doing eligible business
• Any except 44AE; andAny except 44AE; andAny except 44AE; andAny except 44AE; and
• TurnoverTurnoverTurnoverTurnover <<<< 2222 CrsCrsCrsCrs
• Section not applicable to a person carrying:Section not applicable to a person carrying:Section not applicable to a person carrying:Section not applicable to a person carrying:
• ProfessionProfessionProfessionProfession
• Commission or brokerageCommission or brokerageCommission or brokerageCommission or brokerage
• Agency businessAgency businessAgency businessAgency business
• Deemed profit 8% or moreDeemed profit 8% or moreDeemed profit 8% or moreDeemed profit 8% or more
• Commensurate with bank account !!!Commensurate with bank account !!!Commensurate with bank account !!!Commensurate with bank account !!!
65. Lunawat & Co.
SECTION 44ADA ESSENTIALSSECTION 44ADA ESSENTIALSSECTION 44ADA ESSENTIALSSECTION 44ADA ESSENTIALS
• Should be engaged in professionShould be engaged in professionShould be engaged in professionShould be engaged in profession
–––– sectionsectionsectionsection 44AA44AA44AA44AA read with rule 6Fread with rule 6Fread with rule 6Fread with rule 6F
• Gross receiptGross receiptGross receiptGross receipt <<<< 50 Lakhs50 Lakhs50 Lakhs50 Lakhs
• Deemed profit 50% or moreDeemed profit 50% or moreDeemed profit 50% or moreDeemed profit 50% or more
• Commensurate with bankCommensurate with bankCommensurate with bankCommensurate with bank
account !!!account !!!account !!!account !!!
67. Lunawat & Co.
PROFESSIONPROFESSIONPROFESSIONPROFESSION
• Held as businessHeld as businessHeld as businessHeld as business
• Advertising agentAdvertising agentAdvertising agentAdvertising agent
• Clearing, forwarding & shipping agentsClearing, forwarding & shipping agentsClearing, forwarding & shipping agentsClearing, forwarding & shipping agents
• Insurance agentsInsurance agentsInsurance agentsInsurance agents
• Travel agentTravel agentTravel agentTravel agent
• Stock and share brokingStock and share brokingStock and share brokingStock and share broking
• Courier agencyCourier agencyCourier agencyCourier agency
• Nursing HomeNursing HomeNursing HomeNursing Home
• Are they hence covered u/s 44AD??Are they hence covered u/s 44AD??Are they hence covered u/s 44AD??Are they hence covered u/s 44AD??
68.
69. WHAT IS PENNY STOCKWHAT IS PENNY STOCKWHAT IS PENNY STOCKWHAT IS PENNY STOCK
As perAs perAs perAs per wikipediawikipediawikipediawikipedia ---- PennyPennyPennyPenny stocks arestocks arestocks arestocks are
common shares of small publiccommon shares of small publiccommon shares of small publiccommon shares of small public cos.cos.cos.cos.
that trade at low prices per share.that trade at low prices per share.that trade at low prices per share.that trade at low prices per share.
InInInIn USA, U.SUSA, U.SUSA, U.SUSA, U.S. Securities. Securities. Securities. Securities &&&& ExchangeExchangeExchangeExchange Comm.Comm.Comm.Comm.
(SEC) defines(SEC) defines(SEC) defines(SEC) defines it asit asit asit as security that trades belowsecurity that trades belowsecurity that trades belowsecurity that trades below
$5$5$5$5----perperperper----share, is not listedshare, is not listedshare, is not listedshare, is not listed onononon nationalnationalnationalnational
exchange &exchange &exchange &exchange & fails to meet other specificfails to meet other specificfails to meet other specificfails to meet other specific criteria.criteria.criteria.criteria.
In U.KIn U.KIn U.KIn U.K stocks priced under £stocks priced under £stocks priced under £stocks priced under £1.1.1.1.
In IndiaIn IndiaIn IndiaIn India –––– No lawNo lawNo lawNo law ----generally market cap. <generally market cap. <generally market cap. <generally market cap. < RsRsRsRs....
100 cr. & share traded <100 cr. & share traded <100 cr. & share traded <100 cr. & share traded <RsRsRsRs. 10/. 10/. 10/. 10/---- per shareper shareper shareper share
Lunawat & Co.
70. SEVERAL WEBSITESSEVERAL WEBSITESSEVERAL WEBSITESSEVERAL WEBSITES
Several websites recommend investing inSeveral websites recommend investing inSeveral websites recommend investing inSeveral websites recommend investing in
penny stocks worldpenny stocks worldpenny stocks worldpenny stocks world wide..butwide..butwide..butwide..but with a cautionwith a cautionwith a cautionwith a caution
www.pennystocks.comwww.pennystocks.comwww.pennystocks.comwww.pennystocks.com
www.allpennystocks.comwww.allpennystocks.comwww.allpennystocks.comwww.allpennystocks.com
www.pennystockobserver.comwww.pennystockobserver.comwww.pennystockobserver.comwww.pennystockobserver.com
www.pennystocklist.comwww.pennystocklist.comwww.pennystocklist.comwww.pennystocklist.com
www.smartmoneygoal.inwww.smartmoneygoal.inwww.smartmoneygoal.inwww.smartmoneygoal.in
www.moneyexcel.comwww.moneyexcel.comwww.moneyexcel.comwww.moneyexcel.com
http://nseguide.com/category/pennyhttp://nseguide.com/category/pennyhttp://nseguide.com/category/pennyhttp://nseguide.com/category/penny----stocks/stocks/stocks/stocks/
http://penny.tipz.in/http://penny.tipz.in/http://penny.tipz.in/http://penny.tipz.in/
How to become a Penny Stock Millionaire -
https://www.youtube.com/watch?v=3NZtaIFqFYw
Lunawat & Co.
71. REGULATORREGULATORREGULATORREGULATOR
SEBI is the Indian regulator for listedSEBI is the Indian regulator for listedSEBI is the Indian regulator for listedSEBI is the Indian regulator for listed
companies in Indiacompanies in Indiacompanies in Indiacompanies in India
It hadIt hadIt hadIt had barred 59 entities from trading,barred 59 entities from trading,barred 59 entities from trading,barred 59 entities from trading,
buying, selling or dealing in thebuying, selling or dealing in thebuying, selling or dealing in thebuying, selling or dealing in the
securities markets, either directly orsecurities markets, either directly orsecurities markets, either directly orsecurities markets, either directly or
indirectly in August 2015.indirectly in August 2015.indirectly in August 2015.indirectly in August 2015.
2222----3 Times earlier also barred.3 Times earlier also barred.3 Times earlier also barred.3 Times earlier also barred.
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72. OLD DECISIONSOLD DECISIONSOLD DECISIONSOLD DECISIONS
Mukesh R.Mukesh R.Mukesh R.Mukesh R. MaroliaMaroliaMaroliaMarolia vs. ACIT [2006] 6 SOTvs. ACIT [2006] 6 SOTvs. ACIT [2006] 6 SOTvs. ACIT [2006] 6 SOT
247 (Mum247 (Mum247 (Mum247 (Mum TribTribTribTrib))))
In the present case, howsoever unbelievable it mightIn the present case, howsoever unbelievable it mightIn the present case, howsoever unbelievable it mightIn the present case, howsoever unbelievable it might
be, every transaction of thebe, every transaction of thebe, every transaction of thebe, every transaction of the assesseeassesseeassesseeassessee has beenhas beenhas beenhas been
accounted, documented and supported.accounted, documented and supported.accounted, documented and supported.accounted, documented and supported.
Even the evidences collected from the concernedEven the evidences collected from the concernedEven the evidences collected from the concernedEven the evidences collected from the concerned
parties have been ultimately turned in favour of theparties have been ultimately turned in favour of theparties have been ultimately turned in favour of theparties have been ultimately turned in favour of the
assesseeassesseeassesseeassessee....
Therefore, it is very difficult to brush aside theTherefore, it is very difficult to brush aside theTherefore, it is very difficult to brush aside theTherefore, it is very difficult to brush aside the
contentions of thecontentions of thecontentions of thecontentions of the assesseeassesseeassesseeassessee that he had purchasedthat he had purchasedthat he had purchasedthat he had purchased
shares and he had sold shares and ultimately he hadshares and he had sold shares and ultimately he hadshares and he had sold shares and ultimately he hadshares and he had sold shares and ultimately he had
purchased a flat utilising the sale proceeds of thosepurchased a flat utilising the sale proceeds of thosepurchased a flat utilising the sale proceeds of thosepurchased a flat utilising the sale proceeds of those
shares.shares.shares.shares.
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73. Purchase of 8,500 shares ofPurchase of 8,500 shares ofPurchase of 8,500 shares ofPurchase of 8,500 shares of NageshwarNageshwarNageshwarNageshwar Investment Ltd. atInvestment Ltd. atInvestment Ltd. atInvestment Ltd. at
Calcutta Stock Exchange CostCalcutta Stock Exchange CostCalcutta Stock Exchange CostCalcutta Stock Exchange Cost RsRsRsRs. 17170/. 17170/. 17170/. 17170/----
SalesSalesSalesSales ---- RsRsRsRs. 7,32,360/. 7,32,360/. 7,32,360/. 7,32,360/----
Payment & Receipt by account payee chequesPayment & Receipt by account payee chequesPayment & Receipt by account payee chequesPayment & Receipt by account payee cheques
A.O. addsA.O. addsA.O. addsA.O. adds RsRsRsRs. 7,32,360/. 7,32,360/. 7,32,360/. 7,32,360/---- u/s 68.u/s 68.u/s 68.u/s 68.
HeldHeldHeldHeld ---- A.O. has failed to bring on record any evidence to establishA.O. has failed to bring on record any evidence to establishA.O. has failed to bring on record any evidence to establishA.O. has failed to bring on record any evidence to establish
that evidence filed bythat evidence filed bythat evidence filed bythat evidence filed by assesseeassesseeassesseeassessee as well as share broker wereas well as share broker wereas well as share broker wereas well as share broker were
fabricated or false. …It is not the case of the revenue that there isfabricated or false. …It is not the case of the revenue that there isfabricated or false. …It is not the case of the revenue that there isfabricated or false. …It is not the case of the revenue that there is
no such broker or the distinctiveno such broker or the distinctiveno such broker or the distinctiveno such broker or the distinctive nosnosnosnos of the shares of M/sof the shares of M/sof the shares of M/sof the shares of M/s
NageshwarNageshwarNageshwarNageshwar Investments Ltd. do not exist or the transactions ofInvestments Ltd. do not exist or the transactions ofInvestments Ltd. do not exist or the transactions ofInvestments Ltd. do not exist or the transactions of
purchase and sale of such shares recorded through bank andpurchase and sale of such shares recorded through bank andpurchase and sale of such shares recorded through bank andpurchase and sale of such shares recorded through bank and
dematdematdematdemat form are fictitious. The A.O. has simply acted on theform are fictitious. The A.O. has simply acted on theform are fictitious. The A.O. has simply acted on theform are fictitious. The A.O. has simply acted on the
information gathered from the Calcutta Stock Exchange.information gathered from the Calcutta Stock Exchange.information gathered from the Calcutta Stock Exchange.information gathered from the Calcutta Stock Exchange.
ITO vs. Raj Kumar Agarwal, ITA No. 1330/K/07, dated 10.08.2007ITO vs. Raj Kumar Agarwal, ITA No. 1330/K/07, dated 10.08.2007ITO vs. Raj Kumar Agarwal, ITA No. 1330/K/07, dated 10.08.2007ITO vs. Raj Kumar Agarwal, ITA No. 1330/K/07, dated 10.08.2007
Lunawat & Co.
OLD DECISIONSOLD DECISIONSOLD DECISIONSOLD DECISIONS
74. CIT vs.CIT vs.CIT vs.CIT vs. CarboCarboCarboCarbo Industrial Holdings Ltd. (2000)Industrial Holdings Ltd. (2000)Industrial Holdings Ltd. (2000)Industrial Holdings Ltd. (2000) 244244244244
ITR 422 (Cal)ITR 422 (Cal)ITR 422 (Cal)ITR 422 (Cal)
Payment by a/c cheque has not been disputed.Payment by a/c cheque has not been disputed.Payment by a/c cheque has not been disputed.Payment by a/c cheque has not been disputed.
Payment on purchase & sale & payment received byPayment on purchase & sale & payment received byPayment on purchase & sale & payment received byPayment on purchase & sale & payment received by
a/c payee cheque was on two different dates.a/c payee cheque was on two different dates.a/c payee cheque was on two different dates.a/c payee cheque was on two different dates.
If share broker, even after issue of summons, doesIf share broker, even after issue of summons, doesIf share broker, even after issue of summons, doesIf share broker, even after issue of summons, does
not appear for that reason, claim ofnot appear for that reason, claim ofnot appear for that reason, claim ofnot appear for that reason, claim of assesseeassesseeassesseeassessee shouldshouldshouldshould
not be denied, specially in cases when existence ofnot be denied, specially in cases when existence ofnot be denied, specially in cases when existence ofnot be denied, specially in cases when existence of
broker is not in dispute nor payment is in dispute.broker is not in dispute nor payment is in dispute.broker is not in dispute nor payment is in dispute.broker is not in dispute nor payment is in dispute.
Merely because some broker failed to appear,Merely because some broker failed to appear,Merely because some broker failed to appear,Merely because some broker failed to appear,
assesseeassesseeassesseeassessee should not be punished for default of brokershould not be punished for default of brokershould not be punished for default of brokershould not be punished for default of broker
& we are in full agreement with Tribunal that on mere& we are in full agreement with Tribunal that on mere& we are in full agreement with Tribunal that on mere& we are in full agreement with Tribunal that on mere
suspicion claim ofsuspicion claim ofsuspicion claim ofsuspicion claim of assesseeassesseeassesseeassessee should not be denied.should not be denied.should not be denied.should not be denied.
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OLD DECISIONSOLD DECISIONSOLD DECISIONSOLD DECISIONS
75. Transaction through brokerTransaction through brokerTransaction through brokerTransaction through broker---- but suspended by the SEBI.but suspended by the SEBI.but suspended by the SEBI.but suspended by the SEBI.
Payment for purchase after 6Payment for purchase after 6Payment for purchase after 6Payment for purchase after 6 mnthsmnthsmnthsmnths---- DematDematDematDemat after 16after 16after 16after 16 mnthsmnthsmnthsmnths
HeldHeldHeldHeld ---- Fact that Broker through whom shares are sold has beenFact that Broker through whom shares are sold has beenFact that Broker through whom shares are sold has beenFact that Broker through whom shares are sold has been
barred from entering transactionsbarred from entering transactionsbarred from entering transactionsbarred from entering transactions w.e.fw.e.fw.e.fw.e.f. Sept. 2005 whereas these. Sept. 2005 whereas these. Sept. 2005 whereas these. Sept. 2005 whereas these
transactions entered bytransactions entered bytransactions entered bytransactions entered by assesseeassesseeassesseeassessee are entered much prior toare entered much prior toare entered much prior toare entered much prior to
suspension of broker i.e. on 24.12.04. Therefore, there is nosuspension of broker i.e. on 24.12.04. Therefore, there is nosuspension of broker i.e. on 24.12.04. Therefore, there is nosuspension of broker i.e. on 24.12.04. Therefore, there is no
reason to disbelieve this transaction.. Contention of revenue thatreason to disbelieve this transaction.. Contention of revenue thatreason to disbelieve this transaction.. Contention of revenue thatreason to disbelieve this transaction.. Contention of revenue that
assesseeassesseeassesseeassessee had made payments after lapse of 16 months is nothad made payments after lapse of 16 months is nothad made payments after lapse of 16 months is nothad made payments after lapse of 16 months is not
acceptable, since, in this case,acceptable, since, in this case,acceptable, since, in this case,acceptable, since, in this case, assesseeassesseeassesseeassessee has entered into severalhas entered into severalhas entered into severalhas entered into several
transactions both purchase/sales which is apparent from ledger oftransactions both purchase/sales which is apparent from ledger oftransactions both purchase/sales which is apparent from ledger oftransactions both purchase/sales which is apparent from ledger of
M/s S.B.M/s S.B.M/s S.B.M/s S.B. ButhraButhraButhraButhra & Co.. Endorsement of company made on& Co.. Endorsement of company made on& Co.. Endorsement of company made on& Co.. Endorsement of company made on
30.08.03 on share certificates & confirmation by broker clearly30.08.03 on share certificates & confirmation by broker clearly30.08.03 on share certificates & confirmation by broker clearly30.08.03 on share certificates & confirmation by broker clearly
establishes thatestablishes thatestablishes thatestablishes that assesseeassesseeassesseeassessee has purchased shares on 20.6.03.has purchased shares on 20.6.03.has purchased shares on 20.6.03.has purchased shares on 20.6.03.
Similarly sales are also reflected in books ofSimilarly sales are also reflected in books ofSimilarly sales are also reflected in books ofSimilarly sales are also reflected in books of assesseeassesseeassesseeassessee which arewhich arewhich arewhich are
supported by contract notes & bank statement.supported by contract notes & bank statement.supported by contract notes & bank statement.supported by contract notes & bank statement.
RahulRahulRahulRahul VashistVashistVashistVashist vs. ITO, ITA NO. 140/K/09 dated 10.08.2007vs. ITO, ITA NO. 140/K/09 dated 10.08.2007vs. ITO, ITA NO. 140/K/09 dated 10.08.2007vs. ITO, ITA NO. 140/K/09 dated 10.08.2007
Lunawat & Co.
OLD DECISIONSOLD DECISIONSOLD DECISIONSOLD DECISIONS
76. Off market purchase. Shares credited in theOff market purchase. Shares credited in theOff market purchase. Shares credited in theOff market purchase. Shares credited in the DematDematDematDemat A/cA/cA/cA/c
Variation in the trade time. Quantity of shares tradedVariation in the trade time. Quantity of shares tradedVariation in the trade time. Quantity of shares tradedVariation in the trade time. Quantity of shares traded
also does not tally.also does not tally.also does not tally.also does not tally.
HeldHeldHeldHeld
Shares available inShares available inShares available inShares available in DematDematDematDemat AccountAccountAccountAccount
Contract Notes issued by a registered brokerContract Notes issued by a registered brokerContract Notes issued by a registered brokerContract Notes issued by a registered broker
Sale consideration by account payee chequeSale consideration by account payee chequeSale consideration by account payee chequeSale consideration by account payee cheque
Off market transactions do not reflect in the StockOff market transactions do not reflect in the StockOff market transactions do not reflect in the StockOff market transactions do not reflect in the Stock
Exchange systemExchange systemExchange systemExchange system
Variations noted by the A.O. is only aVariations noted by the A.O. is only aVariations noted by the A.O. is only aVariations noted by the A.O. is only a pointer to furtherpointer to furtherpointer to furtherpointer to further
investigate the transactions claimed by theinvestigate the transactions claimed by theinvestigate the transactions claimed by theinvestigate the transactions claimed by the assesseeassesseeassesseeassessee........
DyDyDyDy CIT vs.CIT vs.CIT vs.CIT vs. JagdishJagdishJagdishJagdish Prasad Goel, ITA No. 541/K/10, datedPrasad Goel, ITA No. 541/K/10, datedPrasad Goel, ITA No. 541/K/10, datedPrasad Goel, ITA No. 541/K/10, dated
13.04.201113.04.201113.04.201113.04.2011
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OLD DECISIONSOLD DECISIONSOLD DECISIONSOLD DECISIONS