A A Mansuri & Co.

17/09/2019

For Audit cases
Due date 30/09/2019
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17/09/2019

Be prepared for GST Audit

27/08/2019

01/08/2017

Form GSTR-3B will be the first return which businesses will be filing under GST. Let us understand how to fill and file Form GSTR-3B

27/07/2017

A step-by-step guide on how to reply to a income tax notice on mismatch in return income with Form 16/16A.

13/06/2016

Just because the assessee has not filed its income tax returns in earlier years, it can not be said that the activities of the assessee are not genuine. It has

09/09/2015

No Extension of Date for Filing of Returns due by 30th September for Assessment Year 2015-16 for Certain Categories of Assessees Including Companies, and Firms

25/06/2015

CBDT notifies revised ITR-1, ITR2 and ITR-4S along with new form ITR-2A for A.Y 2015-16; In lieu of foreign trip details, newly notified forms seek passport number, “if available”; New forms exempt disclosure of “dormant” bank accounts details; Further, account balance in bank accounts, now not required to be disclosed; Expats not required to report foreign asset details, if no income derived from such assets during relevant previous year; Other disclosure requirements in the newly notified ITR forms largely unchanged vis-à-vis earlier notified forms in April, 2015.

CBDT has notified the simplified version of income-tax return forms- ITR-1, ITR-2 and ITR-4S along with new form ITR-2A, for AY 2015-16,after having withdrawn the earlier set of forms notified on April 15, 2015.
Key changes in newly notified ITR forms vis-à-vis earlier forms for AY 2015-16

Forms Changes vis-à-vis earlier notified forms

ITR 1 (applicable to individuals having salary income / one house property income / other sources income like bank interest)
· Details of dormant bank accounts (not operational during the last three years) not to be furnished
· Bank accounts balances no more required to be furnished
· Provides option to indicate bank accounts in which assessee would want his refund credited
· Additional bank account details like name of the joint holders (if any) now stands deleted

ITR 2 (applicable to individuals/HUFs not having business/profession income)
· Details of foreign trips or expenditure thereon, not required to be furnished
· Passport no., if available, to be furnished
· Details of dormant bank accounts (not operational during the last three years) not to be furnished
· Bank accounts balances no more required to be furnished
· Provides option to indicate bank accounts in which assessee would want his refund credited
· an expat (not an Indian citizen and is in India on business, employment or student visa), not mandatorily required to report the foreign assets acquired by him during the previous years when he was non-resident, if no income derived from such assets during the relevant PY

ITR 4S Sugam (applicable to Individuals / HUFs deriving business income from presumptive scheme u/s 44AD & 44AE of the Act)
· Details of dormant bank accounts (not operational during the last three years) not to be furnished
· Bank accounts balances no more required to be furnished
· Provides option to indicate bank accounts in which assessee would want his refund credited

Key Features of New ITR-2A:

Applicable to individuals / HUFs ,not having either business/profession income ,or capital gains and not holding foreign assets;
Bank account details similar to aforesaid ITR forms
Seeks Passport No.,if available
Seeks Aadhaar No. and email ids
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19/05/2015

kindly clarify the logic behind four Concurrent audits per member. Kindly take back the decision to allow equal distribution of work in the hands of small partn

23/12/2014

List of CAs issuing more than 400 TAR; 18.87% CAs issued more than 45 Tax Audit Report- CAG

Control on number of tax audit assignment
In order to maintain the quality of tax audit to be conducted by CAs, ICAI issued Guidelines15 for the Members under the provisions of the Chartered Accounts Act, 1949. It prescribed a limit of 45 tax audit assignments that can be under taken by a CA in a FY under Section 44AB of the Income Tax Act, 1961. In case of a Firm, specified number of tax audit assignments shall be applicable for every partners of the Firm. In view of the enhancement of professional competence of members to perform service in IT enabled environment, ICAI raised (February 2014) the limit of tax audit assignments from 45 to 60, to be made effective from audits conducted during FY 2014-15 onwards.
We observed that there was no system in field offices of ITD to see that a CA had not crossed the limit prescribed by ICAI on number of tax audit assignments. ICAI has prescribed Form of Tax Audit particulars to be maintained by members/Firm. We approached ICAI (August and September 2014) to intimate whether any mechanism exit to ensure the compliance of its guidelines by CAs. It was informed by ICAI (September 2014) that maintenance of records is self regulatory mechanism and the information so maintained can be called upon by ICAI for checking adherence of the guidelines. However, any formal complaint received by ICAI was acted upon within the framework provided in the Chartered Accountants Act and the Misconduct Rules framed there under.
As per the information provided by DGIT (Systems) of ITD (August 2014), 65,898 CAs submitted at least one TAR for AY 2013-14. Out of total 65,898 records of CAs, 81.13 per cent of CAs adhered to the limit prescribed by ICAI. Remaining 18.87 per cent of CAs (12,435 CAs) submitted more than 45 TARs. Excess number of TARs ranged from 46 to 2471. Table 3.1 shows stratification of the total number TARs issued by CAs and its percentage.
15 Council Guidelines no. 1-CA(7)/02/2008 dated 08 August 2008
Table 3.1: Stratification of total TARs issued by CA for AY 2013-14
Range of TARs issued Total Number of Accountants Percentage of Total Accountants
1-45 53,463 81.13
46-100 10,838 16.45
101-200 1,364 2.07
201-300 166 0.25
301-400 45 0.07
401-500 10 0.02
501-1000 11 0.02
> 1000 1 0
Total Accountants 65,898
Table 3.2 shows top 22 CAs who issued more than 45 TARs for AY 2013-14.
Table: 3.2 showing CAs issuing more than 400 TAR for AY 2013-14
Chartered Accountants Membership Number Number of TARs
1. Pralay Chakraborty 059736 2,471
2. Partha Pratim Mukhopadhyay 056366 990
3. R Muralidharan 024060 796
4. Rajesh Kumar Gupta 074194 640
5. Swapan Acharyya 062815 638
6. D Sundararajan 010150 619
7. B C Vadivel 206700 612
8. Raj Hans 087767 586
9. Samir Pushpvadan Gandhi 039251 551
10. Navin Agarwal 078175 522
11. Poulose Shaji 022909 513
12. A Kulathooran Pillai 018792 510
13. Sukdeb Haider 051185 494
14. Chetan Premchand Shah 031239 487
15. P Ramalingam 019516 478
16. Arun Kumar 097929 461
17. S Vairavanathan 004736 457
18. Radhakanta Das 062863 428
19. Suresh Kumar Goyal 084153 417
20. Hetal Bhailalbhai Dhamelia 119864 415
21. TS Ventakaraman Lakshmi 022214 414
22. Jai Bhagwan Mittal 084512 401
The information available with DGIT (Systems) has not been shared by ITD to ICAI nor did ICAI approach ever to ITD to furnish such information. In view of lack of monitoring of number of tax audit assignments either by ITD or ICAI, the purpose of maintaining the quality of tax audit have suffered. As the work of tax audit assignments is voluminous work, issuing more than prescribed TARs is fraught to suffer in quality.
In the interest of revenue, the Act should have provision to prescribe for quality of tax audit assignments rather than relying on ICAI. Therefore, ITD may consider making suitable provision in the Act by restricting number of tax audit assignments in consultation with ICAI. In an automated environment of e-filing by CAs, prescribed limit can be adhered by providing suitable controls.
There is no system in ITD to validate the membership number issued by ICAI to stop unscrupulous CAs practicing the profession.
Source- http://www.saiindia.gov.in/english/index.html
Read More- Download CAG Report on Systemic issues in Tax Audit and Controls required

07/01/2014

Scrutiny Issue :

Assessee has paid interest on unsecured loan, and did not charged interest on loans and advances given.

can AO assumed that assessee must have charged interest on loans and advances given ? and can AO make addition sum of interest on loans and advances at the same rate as on unsecured loan ?

Is it necessary to charge interest on loans and advances given when assessee has paid the interest on unsecured loan ??