DIRECT TAX
1. CBDT notifies Faceless Appeal Scheme, 2021: As per the Faceless Appeal Scheme, 2021, an assessee can request CIT (A) for a personal hearing through Video Conference, and upon such request, CIT(A) will have no discretion to refuse it. As per the new scheme, CIT (A) will not prepare a draft order. Instead, he shall prepare an appeal order, sign the same digitally and send it to the National Faceless Appeal Centre (NFAC), which will communicate to the assessee. [Notification No. 139 of 2021 dated 28th December, 2021.]
2. One-time relaxation for verification of all ITRs e-filed for A.Y. 2020-21 which are pending for verification and processing: All ITRs for A.Y. 2020-21 which were uploaded electronically by the taxpayers within the time allowed u/s 139 and which have remained incomplete due to non-submission of ITR-V Form or pending e-Verification, can be verified by one of the prescribed mode before 28th February, 2022.[Circular No. 21 of 2021 dated 28th December, 2021.]
3. Insertion of Rule 16DD and Form 56FF – Income-tax (35th Amendment) Rules, 2021: Form 56FF is to be furnished along with return of income for claiming deduction u/s 10A(1B)(b). [Notification No. 140 of 2021 dated 29th December, 2021.]
4. Extension of timelines for filing of ITRs and various Audit Reports for A.Y. 2021-22: Due to the difficulties reported by taxpayers/stakeholders due to Covid and in e-filing of Audit Reports for A.Y. 2021-22, CBDT has further extended the due dates for filing Audit Reports and ITRs for A.Y. 2021-22. The due dates were earlier extended vide Circular No.9/2021 dated 20th May, 2021 and Circular No.17/2021 dated 9th September, 2021. [Circular No. 1 of 2022 dated 11th January, 2022.]
COMPANY LAW
I. COMPANIES ACT, 2013
1. MCA requires filing of Form IEPF-7 within 30 days of remittance of funds to bank account of IEPF Authority: MCA specifies Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund), Third Amendment, Rules, 2021. As per the amended rules, companies remitting any amount to the Fund must furnish details thereof to the Authority in Form No. IEPF-7 within 30 days from the date of remittance or within 30 days from the commencement date of the IEPF (Accounting, Audit, Transfer and Refund), Third Amendment, Rules, 2021. [Notification No. G.S.R. 888(E), dated 28th December, 2021.]
2. MCA extends the due date for filing of financials and annual return: In view of requests from various stakeholders regarding the levy of additional fees for filing of annual financial statements for the year ended 31st March, 2021, MCA has decided that no additional fees shall be levied for filing of AOC -4, AOC-4 (CFS), AOC- 4 XBRL, AOC – 4 Non-XBRL up to 15th February, 2022 and for MGT – 7, MGT- 7A up to 28th February, 2022. [Circular No. 22/2021, dated 29th December, 2021.]
3. MCA prescribes higher additional fees in certain cases for delayed filing of forms w.e.f. 1st July, 2022: The MCA has notified the Companies (Registration Offices and Fees) Amendment Rules, 2022, w.e.f. 1st July, 2022. The amendment prescribes a table of higher additional fees (in certain cases) which shall be applicable for delay in filing of forms other than for increase in nominal share capital or Forms u/s 92/137 of the Companies Act, 2013 (Annual Return, Financial Statements), or forms for filing charges. [Notification F. No. 01/16/2013CL-V PT -1, dated 11th January, 2022.]
II. SEBI
4. SEBI permits InVITs & REITs to conduct unitholders’ AGM and other meetings virtually till 30th June, 2022: Based on the representations from REITs/InvITs, SEBI has decided to extend the facility to conduct annual meetings and other meetings of unitholders through VC/OAVM till 30th June, 2022. Earlier, SEBI vide circular no. SEBI/HO/DDHS/DDHS/CIR/P/2021/21 dated 26th February, 2021 permitted REITs/InvITs to conduct annual meetings of unitholders through VC/OAVM till 31st December, 2021 and other meetings of unitholders through VC/OAVM till 30th June, 2021.[Circular No. SEBI/HO/DDHS/DDHS_DIV2/P/CIR/2021/697, dated 22nd December, 2021.]
5. SEBI directs exchanges to levy fines and take action for non-compliances by issuers of non-convertible securities: In the interest of investors and the securities market, SEBI has directed the Stock Exchanges to levy fines and take action in case of non-compliance with continuous disclosure requirements by issuers of listed Non-Convertible Securities/ Commercial Paper. SEBI has also prescribed the fines to be levied in case of any non-compliances in an annexure to the said circular. The provisions will be effective in respect of due dates of compliance falling on or after 1st February, 2022. [Circular No. SEBI/HO/DDHS_DIV2/P/CIR/2021/699, dated 29th December, 2021.]
6. SEBI issues framework for operationalizing Gold Exchange in India: SEBI has laid out a framework for operationalizing the Gold Exchange, wherein gold will be traded in the form of Electronic Gold Receipts (EGRs). SEBI specifies that the supply of the physical gold, to be converted into EGR, will be the fresh deposit of gold, coming into the vaults, either through imports or through stock exchange accredited domestic refineries. Vault managers must ensure that ‘gold’ to be converted into EGR meets the criteria. [Circular No. SEBI/HO/CDMRD/DMP/CIR/P/2022/07, dated 10th January, 2022.]
FEMA
1. No permission required by NRIs/OCIs for acquisition/transfer of immovable property: RBI has issued a Press Release stating that NRIs and OCIs do not require prior approval of RBI for acquisition and transfer of immovable property in India other than for agricultural land, farmhouse or plantation property. RBI received many queries based on news reports related to a recent Supreme Court Judgement stating that prior approval of RBI is required for the acquisition/transfer of immovable property in India by OCIs. RBI has clarified that the concerned order related to FERA, which has been repealed on the enactment of FEMA. The position is different under FEMA. [Press Release: 2021-2022/1439 dated 29th December, 2021.]
ICAI MATERIAL
Audit
1. Implementation Guide to Standard on Auditing (SA) 560, Subsequent Events. [15th January, 2022.]
2. Implementation Guide to Standard on Auditing (SA) 210, Agreeing the Terms of Audit Engagements. [15th January, 2022.]
Valuation
1. Booklet on Valuation of Complex Securities. [23rd December, 2021.]
2. Booklet on Fair Value – Purchase Price Allocation. [23rd December, 2021.]
3. Handbook on Best Practices for Registered Valuers. [10th January, 2022.]
