Statutory Registers under Companies Act, 2013

Statutory Registers, as the name suggests, are the registers to be maintained by a company to record certain important data of the company. This could include data like the details of members, Directors, KMP, etc.

As per the Companies Act, 2013, there are certain Statutory Registers that are required to be maintained. Non- compliance of this requirement might lead to attracting hefty penalties to the company as well as the officers involved.

Statutory Registers to be maintained

The Companies Act, 2013 has specified a list of registers that the companies are supposed to maintain. These registers are as under:

  • Register of Members (MGT-1)
  • Register of Debenture Holders or any other security holders (MGT-2)
  • Foreign Register (MGT-3)
  • Register of Directors and KMP
  • Register of renewed or duplicate share certificates (SH-2)
  • Register of Sweat Equity Shares (SH-3)
  • Register of ESOP (SH-6)
  • Register of shares and other securities that have been bought back (SH-10)
  • Register of Charge (CHG-7)
  • Register of loan/ guarantee/ security given or acquisition of securities (MBP-2)
  • Register of investment of the company not held in its name (MBP-3)
  • Register of Contracts and Arrangements in which Directors are interested (MBP-4)
Sr. No. Form Purpose Provision Penalty for failure to maintain the register
1 MGT-1 Register of Members

As per Section 88(1)(a), every company shall maintain a register of members indicating separately for each class of equity and preference shares held by each member residing in or outside India.

The Register of Members along with the Index shall be preserved permanently and shall be kept in the custody of Company Secretary or any other person authorised by the Board.

Company shall be liable to pay a penalty of Rupees Three Lakh and every officer in default shall be liable to pay a penalty of Rupees Fifty Thousand.
2 MGT-2 Register of Debenture Holders or any other security holders

As per Section 88(1)(b), every company issuing or allotting debentures or any other security shall maintain a separate register for this purpose.

The Register of Debenture Holders shall be preserved for a period of 8 years. Such register shall be kept in the custody of the Company Secretary or any other person authorised by the Board.

Company shall be liable to pay a penalty of Rupees Three Lakhs and every officer in default shall be liable to pay a penalty of Rupees Fifty Thousand.
3 MGT-3 Foreign Register

As per Section 88(4) of the Companies Act, 2013, a company which has share capital or  issued debentures or other security may, if authorised by its articles, keep in any country outside India, a part of the register of members or debenture holders or other security holders or of beneficial owners, resident in that country.

The foreign register of members shall be preserved permanently, unless it is discontinued and all entries are transferred to foreign register/ principal register.

The foreign register of debentures or any other security shall be preserved for a period of 8 years from the date of redemption of such debentures or securities.

 
4 Register of Directors and KMP As per Section 170 of the Companies Act, 2013, every company shall keep at its registered office a register containing the particulars of its Directors and KMP.  
5 SH-2 Register of renewed or duplicate share certificates As per Rule 6 (3) (a) of the Companies (Share Capital and Debentures) Rules, 2014, the particulars of every duplicate or renewed share certificate shall be entered in a Register of Renewed or Duplicate Share Certificates.  
6 SH-3 Register of Sweat Equity Shares

As per Rule 8 of the Companies (Share Capital and Debentures) Rules, 2014, the particulars of sweat equity shares shall be maintained in the Register of Sweat Equity Shares.

Such register shall be maintained at the registered office of the company or any other place decided by the Board in the custody of the Company Secretary or any other person authorised by the Board.

 
7 SH-6 Register of ESOPs

As per Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014, the particulars of options shall be maintained in the Register of Employee Stock Options.

Such register shall be maintained at the registered office of the company or any other place decided by the Board in the custody of the Company Secretary or any other person authorised by the Board.

 
8 SH-10 Register of shares and other securities that have been bought back

As per Rule 17 of the Companies (Share Capital and Debentures) Rules, 2014, a company shall maintain a register of shares or other securities that have been bought back in SH-10.

Such register shall be maintained at the registered office of the company or any other place decided by the Board in the custody of the Company Secretary or any other person authorised by the Board.

 
9 CHG-7 Register of Charge

As per Section 85(1) of the Companies Act, 2013, every company shall maintain a register of charge which shall include all charges, and floating charges indicating in each case such particulars.

Such register shall be maintained at the registered office of the company.

 
10 MBP-2 Register of Loan/ Guarantee/ Security given or acquisition of securities

As per Rule 12 of the Companies (Meeting of Board and its Powers) Rules, 2014. every company giving loan or guarantee or providing security or making an acquisition of securities shall, from the date of its incorporation, maintain a register for this purpose.

 
11 MBP-3 Register of Investments of Company not held in its name As per Rule 14 of the Companies (Meeting of Board and its Powers) Rules, 2014, every company from its incorporation shall maintain a register to record the particulars of investments in shares or other securities beneficially held by the company but not in its name.  
12 MBP-4 Register of Contracts and Arrangements in which Directors are interested As per Rule 16 of the Companies (Meeting of Board and its Powers) Rules, 2014, every company shall maintain a register to record the particulars of. Contracts and Arrangements in which Directors are interested  

Section 194Q – TDS on Purchase of Goods

What is Section 194Q?

A new section 194Q – TDS on purchase of goods has been introduced in the Income Tax Act 1961. This section takes effect from the 1st of July 2021. It applies to any buyer who is responsible for paying any sum to any resident seller for the purchase of any goods of the value or aggregate of value exceeding INR 50 Lakh in any previous year. The buyer at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier, is required to deduct an amount equal to 0.1% of such sum exceeding INR 50 Lakh as income tax.

Applicability of Section 194Q – TDS on Purchase of Goods

The TDS on purchase of goods is not applicable on:

  • Transactions in securities and commodities which are traded through recognized stock exchanges or cleared and settled by the recognized clearing corporation, including recognized stock exchanges or recognized clearing corporation located in International Financial Service Centre;
  • Transactions in electricity, renewable energy certificates and energy saving certificates traded through power exchanges registered in accordance with Regulation 21 of the CERC

Calculation of Threshold of Section 194Q for the Financial Year 2020-21

  • Since section 194Q of the Act mandates buyer to deduct tax on credit of sum in the account of seller or on payment of such sum whichever is earlier, the provision of this sub-section shall not apply on any sum credited or paid before 1st July 2021. If either of the two events had happened before 1st July 2021 , that transaction would not be subjected to the provisions of section 194Q of the Act.
  • Since the threshold of fifty lakh rupees is with respect to the previous year, calculation of sum for triggering TDS under section 194Q shall be computed from 1st April, 2021. Hence, if a person being buyer has already credited or paid fifty lakh rupees or more up to 30th June 2021 to a seller, the TDS under section 194Q shall apply on all credit or payment during the previous year, on or after 1st July 2021, to such seller.

TDS liability u/s 194Q will arise on all purchases booked or paid on or after 1.7 2021. Purchases booked or paid between 1.4.2021 till 30.6.2021 will be considered for determining the threshold purchase limit of Rs. 50,00,000/- in FY 2021-22.

Example

Suppose Mr. A purchases goods worth INR 20 lakhs on 30.5.2021. He purchases goods worth INR 50 lakhs on 1.7.2021. His turnover in the previous financial year 2020-21 was 15 crores.

TDS applicability will be as follows:
Since the turnover of Mr. A in previous FY 2020-21 was in excess of INR 10 Cr & the value of goods purchased by him in current FY 2021-22, exceeds INR 50 Lakhs (20 Lakhs plus 50 Lakhs = 70 Lakhs), so, Mr. A is liable to deduct TDS at 0.1% u/s 194Q of INR 2000 on purchases of INR 20 Lakhs. (70 Lakhs – exemption limit of INR 50 Lakhs).

Purchases of INR 20 Lakhs on 30-5-2021 will be taken into account in determining the threshold limit of INR 50 Lakhs for FY 2021-22 but TDS is to be deducted only on purchases made on or after 1-7-2021.

Suppose if, in the above example, Mr. A had purchased goods worth INR 70 lakhs on 30-6-2021 & INR 40 Lakhs on 1-7-2021, then Mr. A will be liable to deduct TDS at 0.1% of INR 4000, on purchases of INR 40 Lakhs.

FAQs

Can a non-resident be a buyer u/s 194Q?

The provisions of section 194Q of the Act shall not apply to a non-resident whose purchase of goods from seller resident in India is not effectively connected with the permanent establishment of such non resident in India.

Is tax supposed to be deducted on advance payment?

Since the provisions apply on payment or credit whichever is earlier, the provisions of section 194Q of the Act shall apply to advance payment made by the buyer to the seller.

Tax on IPO – Initial Public Offering

What is an IPO?

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. IPOs allow a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes share premiums for current private investors. Meanwhile, it also allows public investors to participate in the offering. We will be taking a close look at tax that an IPO would attract.

Why does a Company go Public?

  • To raise capital for growth and expansion:
    • Every company needs money to increase its operations, create new products or pay off existing debts. Going public is a great way to gain this much-needed capital for a company
  • Allowing owners and early investors to sell their stake to make money:
    • It is also seen as an exit strategy for initial investors and venture capitalists. A company becomes liquid through the sale of stocks in an IPO. Venture capitalists sell their stock in the company at this time to reap returns and exit from the company
  • Greater public awareness:
    • IPOs are ‘star-marked’ in the stock market calendar. There is a lot of buzz and publicity around these events. This is a great way for a company to publicize its products and services to a new set of customers in the market

Process of Applying for an IPO?

  • The Securities and Exchange Board (SEBI) that regulates the process of an IPO and companies hoping to issue shares through an IPO have to first register with SEBI
  • The company must submit necessary documents with SEBI which is analyzed and approved by the same governing body
  • While SEBI evaluates the application, the company should prepare its prospectus
  • On receiving the approval from SEBI, the company has to determine the share price of the shares to be issued and disclose the number of shares it plans to issue
  • The company must decide between the two types of IPO issues
  • Fixed Price IPO is one where the company decides in advance the price of the shares
  • Book Building IPO is where the company provides a range of prices and there is a bid for shares within that price range
  • The shares are made public once the company decides the type of IPO they go ahead with. The interested investors submit their applications and once the company receives the subscriptions from the public, it allots the shares
  • Finally, the company is listed on the stock market and post the issuance in the primary market, it gets listed in the secondary market. These are then open for trading on a daily business

Tax on IPO

If you are allotted shares via an IPO and you sell these shares on or before 12 months of holding, the gain (difference between the sale price and issue price) will be liable to be charged under the head ‘short term capital gain‘. The rate of tax on such gain is a special rate of 15%. The tax will be payable if your total income from all the sources (including capital gain) computed under the provisions of the income tax exceeds INR 2,50,000 (higher slab limits in the case of senior citizens).


If the allotted shares are sold after being held for more than 12 months, the gain will be charged as Long Term Capital Gains. Section 112A with a 10% tax on LTCG in excess of INR 1 lakh will be applicable in the case of a long term capital asset on which STT is paid. The new Section 112A is applicable from FY 2018-19 (AY 2019-20).

List of IPO for the Year 2021

Issuer Company Exchange Open Close Lot Size Issue Price (Rs) Issue Size (Rs Cr)
Tatva Chintan Pharma Chem Ltd IPO BSE, NSE Jul 16, 2021 Jul 20, 2021 13 1073 to 1083 500
Zomato Limited IPO BSE, NSE Jul 14, 2021 Jul 16, 2021 195 72 to 76 9375
Clean Science and Technology Ltd IPO BSE, NSE Jul 07, 2021 Jul 09, 2021 16 880 to 900 1546.62
G R Infraprojects Limited IPO BSE, NSE Jul 07, 2021 Jul 09, 2021 17 828 to 837 963.28
India Pesticides Limited IPO BSE, NSE Jun 23, 2021 Jun 25, 2021 50 296 800
Krishna Institute of Medical Sciences Limited IPO BSE, NSE Jun 16, 2021 Jun 18, 2021 18 825 2143.74
Dodla Dairy Limited IPO BSE, NSE Jun 16, 2021 Jun 18, 2021 35 428 520.18
Sona BLW Precision Forgings Limited IPO BSE, NSE Jun 14, 2021 Jun 16, 2021 51 291 5550
Shyam Metalics and Energy Limited IPO BSE, NSE Jun 14, 2021 Jun 16, 2021 45 306 909
Ruchi Soya Industries Ltd FPO BSE, NSE         0.04
POWERGRID Infrastructure Investment Trust InvIT BSE, NSE Apr 29, 2021 May 03, 2021 1100 100 7734.99
Macrotech Developers Limited IPO BSE, NSE Apr 07, 2021 Apr 09, 2021 30 486 2500
Barbeque Nation Hospitality Limited IPO BSE, NSE Mar 24, 2021 Mar 26, 2021 30 500 452.87
Suryoday Small Finance Bank Ltd IPO BSE, NSE Mar 17, 2021 Mar 19, 2021 49 305 582.34
Nazara Technologies Limited IPO BSE, NSE Mar 17, 2021 Mar 19, 2021 13 1101 582.91
Kalyan Jewellers India Limited IPO BSE, NSE Mar 16, 2021 Mar 18, 2021 172 87 1175
Laxmi Organic Industries Limited IPO BSE, NSE Mar 15, 2021 Mar 17, 2021 115 130 600
Craftsman Automation Limited IPO BSE, NSE Mar 15, 2021 Mar 17, 2021 10 1490 823.7
Anupam Rasayan India Limited IPO BSE, NSE Mar 12, 2021 Mar 16, 2021 27 555 760
Easy Trip Planners Limited IPO BSE, NSE Mar 08, 2021 Mar 10, 2021 80 187 510
MTAR Technologies Limited IPO BSE, NSE Mar 03, 2021 Mar 05, 2021 26 575 596.41
Heranba Industries Limited IPO BSE, NSE Feb 23, 2021 Feb 25, 2021 23 627 625.24
RailTel Corporation of India Limited IPO BSE, NSE Feb 16, 2021 Feb 18, 2021 155 94 819.24
Nureca Limited IPO BSE, NSE Feb 15, 2021 Feb 17, 2021 35 400 100
Brookfield India Real Estate Trust REIT BSE, NSE Feb 03, 2021 Feb 05, 2021 200 275 3800
Stove Kraft Limited IPO BSE, NSE Jan 25, 2021 Jan 28, 2021 38 385 412.63
Home First Finance Company India Ltd. IPO BSE, NSE Jan 21, 2021 Jan 25, 2021 28 518 1153.72
Indigo Paints Limited IPO BSE, NSE Jan 20, 2021 Jan 22, 2021 10 1490 1176
Indian Railway Finance Corporation Limited IPO BSE, NSE Jan 18, 2021 Jan 20, 2021 575 26 4633.38
Glenmark Life Sciences Limited IPO BSE, NSE

FAQs

Is an IPO a taxable event?

The Initial Public Offering does not trigger any taxation. Taxes only apply when you sell the shares. Any gains over your cost-basis are taxed as capital gains.

How long after IPO can you sell?

The IPO is a bit of a hurry-up-and-wait, as employees usually can’t sell their stock for up to 180 days. This is called a lock-up period, and is meant to prevent employees from all dumping their stock and depressing the stock price.

Register Company for e-Filing

This pre-login facility is available to all Companies who want to register on and access the e-Filing portal. The Registration service enables the user to access and track all tax-related activities. The prerequisites to register a company is as follows:

  • Valid and Active PAN of the Company
  • PAN of Principal Contact should be registered on the e-Filing portal
  • Digital Signature Certificate (DSC) of Principal Contact registered for the specified PAN

Steps to Register Company on e-Filing Portal

  1. Register Option

    Click on the option to register on the e-Filing portal.

  2. Register as Taxpayer

    Select Register as Taxpayer and enter the PAN of the company. Click Validate. In case the PAN is already registered or invalid, an error message is displayed.

  3. Enter required details

    Fill in all the mandatory details like Name of Organization, DOI, Type of Company and CIN on the Basic Details page and click Continue.

  4. Enter Contact Details

    After PAN is validated, the Principal Contact Details page is displayed. Enter the mandatory details like Primary Mobile Number, Primary email ID and Postal Address of the Principal Contact and click Continue.

  5. Validate OTP

    Two separate OTPs are sent to the primary mobile number and email ID of the Principal Contact as entered in step 4. Enter the two separate 6-digit OTPs received on the mobile number and email ID and click Continue. 

  6. Verify Details

    Edit the details in the Verify Details page if necessary, and click Confirm.

  7. Set Password

    On the Set Password page, enter your desired password in both the Set Password and Confirm Password fields. Provide your personalized message and click Register.

  8. Success Message

    When you are successfully registered, click Proceed to Login to begin the login process.

FAQs

Why do I need to register as Company? 

Registration service helps in creating a user account in the e-Filing Portal. A Company has to be registered in the portal to avail services such as filing of ITR, tax deducted details, refund status, etc. All tax related activities can be tracked through the e-Filing Portal only after registration.

What are the prerequisites for registering as a Company? 

A valid and active PAN of the company and registered DSC of Principal Contact are required to register as a Company in the e-Filing Portal. The PAN of the Principal Contact should be registered on the e-Filing portal.

Who is a Principal Contact?

Principal Contact is the individual who acts as the main representative of the Company. An individual who has a signing authority and the capacity to bind the Company is designated as the Principal Contact. The Principal Contact will receive all communications (including notices/orders) from the Income tax Department with respect to the company. The Principal Contact must register in the e-Filing Portal with Name, Address, Phone Number and other details.

Register Tax Deductor and Collector on IT Portal

The pre-login service is available to all tax deductors or collectors who want to register on the e-Filing portal. The registration service enables the user to access and track all tax-related activities. The only prerequisite for this service to register a deductor or collector is to have a valid and active TAN and PAN of the principal contact should be registered on the e-Filing portal.

Steps to Register Deductor or Collector on e-Filing portal

  1. Visit e-Filing portal

    Click on the option to register.

  2. Tax Deductor and Collector

    Click Others and select the Category as Tax Deductor and Collector.

  3. Validate TAN

    Enter the TAN of the Organization and click Validate.

  4. TAN available in database

    If the TAN is available in the database, registered with TRACES and the registration request is not raised already and pending for approval:
    a. Click Continue to view the Basic Details page
    b. The basic details are pre-filled. Click Continue

  5. TAN available in the database but not registered on TRACES

    If the TAN is available in the database, but not registered with TRACES and registration request is not raised already and pending for approval:
    a. Click Continue to view the TRACES page
    b. Click Register with e-Filing on TRACES to view the Basic Details page
    c. Enter the basic details as required and click Continue

  6. Enter required details

    Fill in the details of the person making payments or collecting tax and click Continue.

  7. Contact Details

    Provide the contact details including Primary Mobile Number, email ID and Postal Address. Click Continue.

  8. Validate OTP

    Two separate OTPs are sent to your primary mobile number and email ID. Enter the separate 6-digit OTPs received on your mobile number and email ID and click Continue. 

  9. Review Details

    On the Verify Details page, review the details provided and edit the details if necessary. Click Confirm.

  10. Set Password

    On the Set Password page, enter your desired password in both the Set Password and Confirm Password textboxes, set your personalized message, and click Register.

  11. Success Message

    A success message is displayed along with the transaction ID. Please keep a note of the Transaction ID for future reference. The registration process is complete upon receiving approval from the competent authority.

FAQs

Should I be registered with TRACES before registering on the e-Filing portal?

Yes, you must first be registered on the TRACES portal before you can register as a Tax Deductor and Collector on the e-Filing portal.

Why should I register as a tax deductor / collector on the e-Filing Portal?

The e-Filing Portal offers various services and functionalities for registered users. TDS / TCS returns can be submitted online by the Tax Deductors and Collectors only after registering on the e-Filing Portal.

Generate Static Password on New IT Portal

The Generate Static Password service is one of the various options available for two-factor authentication (an additional security layer to your e-Filing password) for logging in to the e-Filing portal. Static password is useful if you do not have good mobile network connectivity to receive OTP. This service is available to all registered users on the e-Filing portal (post login). The only requirement for this service is that the taxpayer should have be a registered user on the e-Filing portal with valid user ID and password.

Features of Static Password

  • You will receive 10 system-generated static passwords on your email ID registered with e-Filing
  • You can use any one at a time for login. However, the same static password cannot be reused
  • The static passwords sent to you will be active for 30 days from the date of generation
  • You can generate static passwords again after you have used up all 10 passwords, or after 30 days are over (whichever comes first)

Steps to Generate Static Password

  1. Visit the IT portal

    Login using valid credentials.

  2. My Profile

    Click on the My Profile option from the top right corner of the page.

  3. Static Password Option

    Click on the Static Password Option presented on the left column.

  4. Generate Static Password

    A list of instructions about static password and where it can be used appear on the Static Password page. Read the instructions carefully and click Generate Static Password.

  5. Success Message

    A success message is displayed on successful generation of your static password.

If you have unused static passwords, there will be a message specifying how many passwords you have, and the number of days before they expire (out of 30). To get a list of your unused static passwords on your email ID registered on the e-Filing portal, click Resend Static Password.

FAQs

Can I generate static passwords multiple times, or is it a one-time activity?

Yes, you can generate static passwords multiple times, but only after expiration (after 30 days from generation) or consumption of all 10 static passwords.

I already have an e-Filing password. Why do I need a static password?

For enhanced security, logging in to the e-Filing portal involves two-factor authentication. Two-factor authentication is a method with an additional security layer (in addition to username and password). Static password is one of the two-factor authentication methods after entering your e-Filing user ID and password.

How do I know if a particular static password has been used earlier?

You can manually keep track of the passwords you have used, or go to your Dashboard > Static Password tab > Click Resend Static Password. You will receive an email with the list of unused static passwords on your e-Filing registered email ID.

File Form 15CA and 15CB

What is Form 15CA and 15CB?

As per the Income Tax Act, any payment made by a resident to a non-resident needs to be reported. Such taxpayer needs to file Form 15CA and Form 15CB. These forms include details such as the nature of payment, tax deducted (TDS) on such payment, and applicable provisions of DTAA (Double Taxation Avoidance Agreement).

The Income Tax Department on Monday extended permission for submitting form 15CA/15CB manually with authorised dealer for the purpose of foreign remittance till July 15 against June 30, earlier
Tip
The Income Tax Department on Monday extended permission for submitting form 15CA/15CB manually with authorised dealer for the purpose of foreign remittance till July 15 against June 30, earlier

Form 15CA

It is a declaration wherein the person making payment to non-resident states that he has deducted the tax from any payments so made to the non-resident.

Form 15CB

It is the certificate issued by a Chartered Accountant certifying that the provisions of the Double Taxation Avoidance Agreement – DTAA and the Income Tax Act have been complied with in respect of tax deductions while making the payments. Here are the following details it includes:

  • Details and nature of payment made to a Non Resident
  • Compliance with Section 195 of the Income Tax Act
  • Rate of TDS deducted
  • Applicability of the Double Taxation Avoidance Agreement

Revised Rules for Submission of Form 15CA and 15CB

The income tax department has revised the rules relating to preparation & submission of Form 15CA and Form 15CB. The revised rules became effective from 1st April 2016.

  • Form 15CA and 15CB which does not require RBI approval will be not be required to be furnished by an individual for remittance.
  • List of payments of specified nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33 including payments for imports
  • Form No. 15CB will only be required for payments made to non-residents, which are taxable and if the payment exceeds INR 5 lakhs

Applicability of Form 15CA or 15CB

  • If the amount of remittance is not chargeable to tax, then no forms are required
  • If the remittance is covered under a specified exemption list, then only Part D of the Form 15CA is to be submitted
  • Where remittance is less than INR 5 lakh in a particular financial year – Only Form 15CA – Part A to be submitted
  • When remittance exceeds INR 5 lakh – Form 15CA – Part C and Form 15CB to be submitted
  • Where remittance exceeds INR 5 lakhs and a certificate under Section 195(2)/195 (3)/197 of the Income Tax has been obtained – Form 15CA – Part B to be submitted

How to File Form 15CA and 15CB?

  1. Login to the e-Filing portal

    Login to the e-Filing portal using valid credentials.

  2. File Income Tax Forms

    Click on e-File > Income Tax Forms > File Income Tax Forms

  3. Search Form 15CA or 15CB

    On the File Income Tax Forms page, select the Form 15CA or 15CB. Alternatively, enter Form 15CA or 15CB in the search box to file the form.

  4. Enter the required details

    Click on the get started on the next page. You will be redirected to the particular form you had chosen. Enter the details.

  5. e-Verify the Form

    After entering all the details, scroll down and click on the option to e-verify.

  6. Successful verification

    After successful e-Verification, a success message is displayed along with a Transaction ID and Acknowledgement Number.

FAQs

Who can use Form 15CB?

Form 15CB is accessed and submitted by a Chartered Accountant who is registered on the e-Filing portal. The CA must be assigned Form 15CA by the taxpayer in order to be able to certify the details in Form 15CB.

Is it mandatory to file Form 15CB before filing Form 15CA (Part C)?

Upload of Form 15CB is mandatory prior to filling Part C of Form 15CA. To prefill the details in Part C of form 15CA, the Acknowledgement Number of e-Verified Form 15CB should be verified.

Who is required to file Form 15CA?

As per Rule 37BB, any person responsible for paying to a Non-Resident, not being a Company, or to a Foreign Company shall furnish such information in Form 15CA.

Section 206AB and 206CCA of Income Tax Act

Section 206AB and 206CCA are the latest addition to the Income Tax Act. The introduction of the new section is for the deduction and collection of tax at source at higher rates if an amount is paid or payable to the specified person who did not file the income tax return. The new section will be applicable from 1st day of July 2021.

What is Section 206AB and 206CCA?

Section 206AB deals with the deduction of TDS at the higher rate to those who have not filed their income tax return. Whereas, Section 206CCA deals with the collection of tax at source at a higher rate received from the buyers.

Tax Compliance APIs
Let’s break down the new section 206AB and 206CCA & visualize it with a logical framework
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Tax Compliance APIs
Let’s break down the new section 206AB and 206CCA & visualize it with a logical framework
View Blog

Rates for Deduction or Collection of Tax under section 206AB and 206CCA

TDS

Tax will be deducted at the higher of the following rates:

  • at twice the rate specified in the relevant provision of the Act; or
  • at twice the rate or rates in force; or
  • at the rate of 5%

TCS

Tax will be collected at the higher of the following rates:

  • at twice the rate specified in the relevant provision of the Act; or
  • at the rate of 5%
TDS Calculator
TDS (Tax Deducted at Source) is a part of Income Tax. TDS should be dedcuted by a person for specific payments made.
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TDS Calculator
TDS (Tax Deducted at Source) is a part of Income Tax. TDS should be dedcuted by a person for specific payments made.
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Applicability of Section 206AB and 206CCA

The section 206AB and 206CCA are not applicable to a non-resident who does not have a permanent establishment in India. Furthermore, provisions of section 206AB do not apply to any sum or income or amount paid or payable or credited on which tax is otherwise deducted at source under below-mentioned provision of Chapter XVIIB:

  • Section 192 – Salary
  • Section 192A – Premature withdrawal of EPF
  • Winnings from any lottery or card games or crosswords or puzzles – Section 194B
  • Winnings from any horse race – Section 194BB
  • Section 194LBC – Income in respect of investment in securitisation trust
  • Section 194N – Payments of certain amount/amounts in cash

The section 206AB and 206CCA are applicable to specified persons:

  • Person has not filed their Income Tax Return for two previous years immediately preceding the previous year in which tax is required to be deducted/collected
  • The time limit for filing such return of income u/s 139(1) has expired
  • Aggregate of tax deducted/collected at source in each of these two financial years is INR 50,000/- or more

FAQs

Does section 206AA override DTAA?

The DTAA provides for a rate of 10% whereas as per the provisions of Section 206AA of the Act, the rate of tax deduction at source is 20%. The plea of the revenue was that section 206AA starts with a non-obstante clause and therefore it overrides all other provisions of the Act including 90(2), 115A and 139A.

What is Section 206AA?

Section 206AA requires every taxpayer who receives taxable income to furnish their PAN to the payer of such income. This applies to both the resident as well as non-resident recipients.

Know Your TAN Details

The Know Your TAN Details service can be used by e-Filing users (both registered and unregistered). You do not have to log in to the e-Filing portal to use this service. This service allows you to view the TAN Details (Basic details and AO details) of a tax deductor and collector for a TAN. You can view the details by entering either the deductor name or the deductor TAN.

Prerequisites

Following are the details that you require in order to acquire the services of this tool:

  • Valid mobile number
  • Deductor of TAN or Deductor name
  • State of Deductor

Steps to Know Your TAN Details

  1. Know Your TAN Details Option

    Visit the e-filing portal and scroll down and click on the option of “Know TAN Details”

  2. Enter required details

    On the Know TAN Details page, in case you do not know the TAN of deductor, select the Name option as the search criteria. Select the Category and State of deductor; enter the Name of Deductor, and a valid Mobile Number accessible to you.

  3. Validate OTP

    After clicking on continue, you will receive a 6 digit OTP. Complete the validation process on the verification page.

  4. List of Deductors

    In case you had entered the name of the deductor on the “Enter TAN Details” page, you will see a list of all records that match the name. Click the required Name of Deductor from the TAN Details table, and you will be able to view the deductor’s individual TAN Details.

  5. TAN details

    In case you had entered the deductor TAN on the “Enter TAN Details” page, you will see the matching record.

FAQs

Who needs to obtain TAN?

TAN must be obtained by all persons responsible for deducting tax at source or who are required to collect tax at source. It is compulsory to quote TAN in TDS/TCS return, any TDS/TCS payment challan, TDS/TCS certificates and other documents as may be prescribed in communications with the ITD. However, a person required to deduct TDS as per Section 194IA or Section 194IB or Section 194M, can quote PAN in place of TAN.

Is it mandatory for government deductors to apply for TAN? 

Yes.

Is a separate TAN required to be obtained for the purpose of Tax Collection at Source?

In case a TAN has already been allotted, no separate application needs to be made for obtaining TAN. The same number can be quoted in all returns, challans and certificates for TCS.

Authenticate Notice Issued by ITD

The Authenticate Notice/Order issued by Income Tax Department service is available to both registered and unregistered users of the e-Filing portal as a pre-login service to verify the authenticity of a notice, order, summons, letter or any correspondence issued by Income Tax Authorities.

Process to Authenticate Notice/Order Issued by ITD

  1. Visit the e-Filing portal

    Go to the e-Filing portal and scroll down and click on Authenticate Notice / Order issued by ITD.

  2. Select from the options provided to authenticate the notice/order

    Following are the options provided:
    PAN, Document type, Assessment Year, Date of Issue and Mobile Number
    – Document Identification Number and Mobile Number

  3. Selecting the first option

    Select PAN, Document type, Assessment Year, Date of Issue and Mobile Number.

  4. Enter the required details

    Next, enter the details in the PAN, select the document type and assessment year, enter mobile number and date of issuance and click on continue.

  5. Enter OTP

    Enter the OTP received after the completion of step 2.

  6. Validation of OTP

    Once the OTP is validated, the document number of the notice issued along with the date of issue of the notice will be displayed.
    * In case  no notice was issued by ITD, it will display a message – No record found for the given criteria

  7. Selecting the Second Option

    Select Document Identification Number and Mobile Number.

  8. Enter the required details

    Next, enter the document identification number and mobile number and click on continue.

  9. Enter OTP

    Finally, enter the OTP received after the completion of step 2.

  10. Success Message

    You will receive the following message after the completion of the procedure.

FAQs

Why do I need to authenticate notice/order issued to me by Income Tax Authorities?

Every communication by ITD issued on or after 1st October, 2019 shall bear a unique Document Identification Number (DIN). In order to satisfy yourself that the notice/order or any communication received by you is genuine and issued by Income Tax Authority, you can authenticate any notice/order or any communication using this service.

What if the ITD notice/order does not bear a DIN?

In such case, the notice/order/letter received by you would be treated as invalid and shall be non est in law or deemed to be as if it has never been issued. You do not need to take any action or respond to such communication.

Do I need to enter the same mobile number as registered on the e-Filing portal to authenticate my notice?

No, it is not mandatory to enter the mobile number registered on the e-filing portal to authenticate the notice/letter or any communication issued by Income Tax Department. You may choose to receive OTP on any mobile number which is accessible to you by entering it in the ‘mobile number’ field.