CA Pranay Bafna

PPF accounts with excess contributions beyond the Rs.1.5 lakh annual limit, multiple accounts – all such accounts will be declared irregular with changes proposed. Check out how these new rules will affect the irregular accounts. https://lnkd.in/gUERa8i5 PS: I had written about this 2 years back when I found few of my clients contributing more than the stipulated limit in PPF. PPF rules are finally catching up from October this year. #PPF

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Time to merge CA, CMA and CS institutes? For long, members of the CMA and CS institutes have been interested in audits. Under the proposed Direct Tax code, this might finally become a reality. Under the Companies Act, each profession has a specific role, but the dearth of professionals might force a change. We could see CFO-cum-CS for listed entities in the not-so-distant future, at least for SMEs. Each institute has its own legacy, with each intending to serve a different purpose. Now that we see a slow merging of the roles of all three professions, it may be time to merge the three institutes. The merged institute can offer a primary qualification (much needed when B.Com/M.Com candidates lack the ability to even pass a purchase entry properly), and offer CS/CMA/CA as a second-level specialisation. People can choose to specialise in multiple disciplines. With NFRA and other bodies starting to regulate and set the standards, the three institutes are slowly but surely becoming educational bodies with limited disciplinary powers. There's no reversing this reality, but a merged body will give us professionals a common voice and ensure consistency in practices and standards. It will also save on administrative costs, and allow better streamlining of resources. For example, we are already seeing duplication of roles in Insolvency Institutes and RVOs, with each institute having its own entities. Ultimately IPs and RVs are governed by IBBI (and the proposed Valuer Body will take control of RVs). The merger of the three institutes will allow single a IIIP and RVO for all the professionals. Ultimately the role of a professional body is to create, guide and regulate professionals. A unified body will remove the current fragmentation and allow a more concentrated effort to improve the quality of work provided. Further, it will also be a common voice for all professionals, especially in a dynamic and ever-changing environment. #CA #CS #CMA #AccountinginIndia #ICAI #ICSI

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Why is it important to file an ITR? 1) Loan applications 2) VISA applications 3) Overseas education and the list goes on.... Reminder to file your Income tax return within the due date. #incometax #incometaxreturns #reminder #directtax #taxation #professionals #returnfiling #filings #duedate #charteredaccountant #cainpractice #CA #incometaxact

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💡 Leveraging Technology: The Future of CA Firms in India Did you know that India exports over $180 billion worth of services annually, which is more than Saudi Arabia's oil exports? 🌍💼 Yet, despite this massive potential, very few CA firms (except for a few big ones) are leveraging technology to streamline their operations. I’ve seen firms with revenues of over ₹40 crore still asking employees to use pirated versions of Excel. 😮 On the other hand, I’ve been using Zoho’s suite of tools for a while now, and they’ve been incredibly helpful—not expensive at all and perfect for efficient management. Zoho is one of India’s top startups with world-class products, and it’s already being used by CPA firms across Hong Kong, the UAE, and other regions. 🌐 Here are some Zoho tools I highly recommend: Zoho WorkDrive 📂 – An alternative to Dropbox and OneDrive. It’s super affordable, easy to use, and great for saving work on the cloud. Zoho Cliq 💬 – A free alternative to Slack/Teams. It has an amazing interface and great features, ideal for team communication. Zoho Accounts and Payroll 💼 – The best cloud-based accounting software. Far superior to others, including Tally. Zoho Connect 🛠️ – Recently started using this for managing large projects, repetitive tasks, and time tracking. It’s an alternative to Clockify and Monday.com but with added features like Intranet. Super cost-effective. Zoho Meeting 🎥 – If you're looking for an alternative to Zoom that’s cheaper and offers unlimited recording, give this a try. It’s time CA firms start embracing technology for better efficiency and effective management. There are great tools available—no need to rely on outdated or pirated solutions! 🚀 P.S. – Defiantly this is not a marketing post. In case you know, I can earn by promoting zoho product, please message me. If you have any suggestions or questions, my messages are always open. #TechnologyInAccounting #Zoho #CloudSolutions #AccountingFirms #TechForEfficiency #Innovation #IndiaStartups

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Proposed Accounting Standard and Standard on Auditing for #LLPs As per section 34A of the Limited Liability Partnership Act 2008, ICAI's recommendation regarding Accounting Standards for Limited Liability Partnerships (LLPs) have been considered by the NFRA and it has been decided that Accounting Standards notified as Companies (Accounting Standards) Rules 2021 will be applicable to LLPs. For the purpose of applicability of Accounting Standards: LLPs will be Classified into two categories viz. Large LLPs (Turnover > 250 Cr and Borrowings > 50 Cr) and Small & Medium-sized LLPs (Turnover < 250 Cr and Borrowings < 50 Cr). Exemptions/ relaxations which are currently applicable to Level III and Level IV non-company entities will be applicable to all Small & Medium-sized LLPs with the exception of exemption from AS 18 and AS 28 to LLPs with Turnover below 50 Cr and Borrowings below 10 Cr. These recommendations have been sent to MCA for their consideration and comments. For non-company entities to whom Accounting Standards issued by the ICAI apply, Similar changes with regard to classification and relaxations/exemptions are being made. Further, the ICAI has recommended that the Standards on Auditing (SAs), should also apply mutatis mutandis to the audit of Limited Liability Partnerships (LLPs). In line with this recommendation, ICAI submitted its proposal on Auditing Standards under Section 34A of the Limited Liability Partnership Act, 2008. This submission underscores ICAI's commitment to ensuring consistency and rigor in auditing practices across different types of business entities, thereby enhancing the quality and reliability of financial reporting for LLPs in line with established standards for companies. The Institute of Chartered Accountants of India Ranjeet Kumar Agarwal

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Issue faced by Taxpapers while filing GSTR-3B for October 2024- previous period invoices getting Auto populated in GSTR 2B Invoices pertaining to #September GSTR 2B *reflecting again* in #October GSTR 2B for cases where #QRMP tax payer (supplier) have filed their GSTR-1 on 12th and 13th October 2024 or have filed #GSTR 1A for the month of September, 2024 even though the said invoices are not modified in GSTR 1A. The same results in excess reflection of ITC in GSTR 2B. It is advised that ITC should not be claimed merely on the basis of reflection, and a #grievance should be raised on the GST help desk under the category "Returns - GSTR 2B with sub category GSTR-2B- Issue with online/offline view of Summary. One should not reclaim ITC on invoices reflecting again in GSTR2B and manually remove them. From this month onwards IMS has also started, for such cases the double reflecting invoices should not be addressed. #gst #gstr2b #gstr3b #october

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UDIN Glitch - Unable to generate UDIN under FRN category Following workaround can be followed :- Select Individual/NA category and mention FRN in Document description This workaround was shared by UDIN Portal when issue was first encountered after inception of UDIN System #taxaudit

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Classic case of shortage & excess #stock when compared with books of accounts & its treatment in #incometax, #gst & #companylaw by experts in the field. #asknexpert initiative by Karnataka State Chartered Accountants Association. Look into the snippet to know the treatment and more!

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Quick checklist of all that's needed by you to file your Income Tax Return this season. Comment if I missed anything!

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IT refund will take time this year . They are going to scrutinize the returns very strictly. For this, they are adapting the specially designed, self automated and modified artificial intelligence software program (AI) for scrutinizing the field of ITR. This program will first collect the data linked with your PAN card, then it will automatically follow the linked data with your Aadhar card. After this the AI will tally the transactions linked with your aadhar and PAN to the bank accounts attached. Now it will collect all details of fixed deposits, quarterly interests credited, share dividends, share transactions, mutual fund and shares long term and short term gains of all bank accounts you declared & attached yourself with your income tax ITR returns filed by you. Now it will start tallying the undeclared bank accounts on your name and also with the joint bank accounts where you are second and third holder. It will also search the postal accounts and bank accounts with all cooperative banks, local credit institutions (पतसंस्था), postal fix deposits, interests, postal RDs, MIS, senior citizen saving schemes etc either single or jointly with second name where your investments are made with the family members who are non registered ITR filers. The PAN card will now be checked with the government registry office for any Land and immovable properties transactions in the current and previous three years. After all this complicated workout the debit cards, credit cards transactions, passport, visa attached tour details, two & four wheeler purchase or sale ,few AI will also compile data of social media platforms photo video trip screenshot etc. The complete data collected will be tallied with data you declared & filed in your Income Tax Return. Also will be tallied with TDS in AS26 data. The decleared and undeclared factual income tax will be calculated automatically and demand will be sent to you under 143(i). The full proof automated AI-ITR program is successfully finalized & tested. And will be implemented for the first time from this year now. So income tax processing is delayed somewhat. All the ITRs are expected to be processed late in the last week of July or max in the first week of August. Because this specially designed AI-ITR program has enough capacity to do all this work out in a fraction of seconds. Copied and forwarded !!! #IncomeTaxReturn

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#LongTermCapitalGain #LTCG taxation for real estate had a great benefit of inflation adjusted indexation wherein incase you would sell a long term capital asset, say property, then the LTCG would be 20% after taking the benefit of indexed cost of acquisition and improvement. Other than indexation, the rate was 10%. Now #indexation has been removed with a logic of ease of computation and the rate of #LTCG without indexation has also been increased from 10% to 12.5%. This will severely impact property sellers and consequently the real estate industry, which is a big employment generator in the economy. Lets understand by means of an example. Say a property was purchased in FY2019-20 for Rs.1 Crs and sold after 5 years in FY 24-25 for Rs.1.25 Crs. In such case the indexed cost of acquisition would be Rs.1.25 Crs and hence there would be NIL LTCG. However from today, i.e. 23rd July 2024, LTCG would be 12.5% on Rs.25 Lakhs, which comes upto Rs.3.12 Lakhs. Hence the resale of properties would be severly impacted. It may also give rise to cash economy where sellers may try to further surpress their sale value #ministryoffinance #nirmalasitaraman #budget2024

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Ever Wondered How Much It Costs to Manage Your Mutual Fund? The Answer is the Expense Ratio. 📌What is the Expense Ratio? Expense Ratio is the annual cost of managing a mutual fund and is expressed as a percentage of the fund's assets. Expense Ratio includes various expenses like fund manager fees, legal/audit costs, and marketing/distribution fees. It's calculated using the formula: Total Expenses / Average AUM So, can mutual fund houses charge any amount? No. SEBI imposes limits on these ratios based on fund type and total assets managed by the fund. 📌Importance and Impact Lower Expense Ratios enhance investor returns. Lower expense ratio = Lower costs for Investors It is because when the fund house delivers the returns, it subtracts the expenses from the returns that the fund has initially generated. Fund's Returns - Expense Ratio = Investor's Return If there are two funds in the same category with the same expense ratio, which one should you pick? It depends on different factors such as the returns generated by the fund over the long term, underlying risk and the fund manager's track record. In that case, you can look at a fund that has consistently performed over the long term.   Moreover, if the fund with higher returns has a higher expense ratio, then the fund with a higher expense ratio might be worth looking into because the fund has beaten other funds in terms of returns.   Understanding Expense Ratios can help investors like you make informed decisions. We at #NandiNivesh analyse funds’ expense ratio when suggesting funds to your clients to make sure that they can get the maximum benefits from their investments.   #InvestmentInsights #ExpenseRatios #MutualFunds #Finance101

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TAX PARTNER MYTHBUSTERS #1 Do Think you don’t need to file for an ITR if there’s no income? Let's set the record straight! 🔹 Reporting Requirements: Even with zero income, some individuals must file returns. For example, if you’ve deposited over a certain limit in bank accounts, or if you hold foreign assets, filing might still be mandatory! 🔹 Claim Deductions and Refunds: Filing a return is essential if you want to claim tax deductions or refunds on TDS already deducted. 🔹 Carry Forward Losses: If you had losses in investments or business, filing ensures you can carry these forward to offset future gains. 🔹 Stay Compliant: Filing even with no income keeps your financial records clean, proving transparency to lenders, institutions, and tax authorities. Remember, filing on time is always better than skipping! It can save you from penalties and ensure you’re financially prepared for future gains. 💸📈 Need help? Let us guide you! 🌐 #IncomeTaxMyth #FilingRequired #TaxTips #StayCompliant

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The Financial Express: Tax Connect's Article Published on April 17, 2024 : ITR Filing: How to claim TDS Credit not reflecting in Form 26AS There are ways and means by which the taxpayers can claim TDS credit as per the procedures laid down by the Government.   Vivek Jalan, Partner with Tax Connect Advisory Services LLP & Chairperson of The National Fiscal Affairs and Taxation Committee of The Bengal Chamber of Commerce & Industry said Tax Deducted at Source (TDS) applies to various income sources, including salaries, business income, property sales, and interest on bank deposits. When a payer deducts TDS from your income, they essentially withhold a portion of your tax liability. This deducted amount is then credited to your tax account and is supposed to be reflected when you file your tax return. However, there can be instances where this TDS credit isn’t immediately available in your tax records. This may happen due to numerous reasons like non-deposit of TDS to the Government by the counter party, due to mismatch in details or any other reason. Yet, the tax payer need not lose his sleep. The remedies are available in these cases and we suggest the following ways and means by which the taxpayers can claim such TDS as per the procedures laid down by the Government. Link for accessing the Article : The Financial Express :- https://lnkd.in/gYttYQWP #tax #incometax #incometaxreturn #TDS

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ClearTax's Tax Expert, Ms. Megha Jain, shares expert insights on tax deductions and exemptions in an exclusive interview with CNBC-TV18. Learn about eligibility criteria, deduction categories, and more. Read the full story! #TaxFiling #IncomeTax #ITR #TaxSeason #ClearTax https://lnkd.in/gssRnH-H

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