The Bill was introduced to amend the Income-tax Act, 1961 and the Finance Act, 2016. The below are the changes proposed vide the amendment bill:

1. Amendment to provisions of Section 115BBE (W E F 01-04-2017); 

2. Proposed to amend the applicable tax rate in relation to income referred to in section 68/69/69A,B,C,D(Undisclosed Income-UI); 

3. Voluntary disclosure and Income determined by the AO of UI shall be subject to tax @60%.( Existing position- No Voluntary Disclosure). Surcharge @25%. Effective Rate 77.25% including cess. The payment of tax has to be made before 31st March of the relevant previous year. 

4. Amendment to Provisions of Section 271AAB¹ :- by insertion of (1A) to the section

Read more: Highlights Of Taxation Laws (second Amendment ) Bill 2016

Today the scope of compliance is much broader and its impact on business far greater than ever before. Despite greater regulation and the risk of noncompliance, some companies may not be taking their responsibility for identifying and managing compliance risk particularly seriously. Organisations should Identify, prioritize, and assign accountability for managing existing or potential threats related to legal or policy noncompliance—or ethical misconduct—that could lead to fines or penalties, reputational damage, or the inability to operate in key markets. 

A survey conducted in 2014 by Compliance week indicates 40 percent of companies did not perform an annual compliance risk assessment. Further a study conducted by IIA indicates 38 percent of chief audit executives (CAEs) did not use compliance or regulatory requirements as a resource to establish the audit plan. 

Read more: Managing Compliance Risk

Post budget 2012 and after introduction of part C in form 3CEB, ICAI had revised the guidance Note on Sec 92E (August 2013) and since then there have been various developments in TP Provisions like notification of safe harbour rules, notification of provisions/rules for Advance Pricing Agreement (APA) roll back mechanism, range concept and use of multiple year data for determination of arm’s length price, Deemed International Transactions, increased threshold limit for the applicability of the specified domestic transaction provisions, CBCR requirements etc. 

Thus ICAI has come up with the revised Guidance Note (Fifth Edition), 2016 which contains guidance on all these important changes. In this article we have summarised the key changes or revisions made in the Guidance Note on Report u/s 92E.

Read more: Transfer Pricing - Revised Guidance Note -ICAI 2016 Key Highlights

Key Topics Covered:

• International Taxation
• FEMA
• Audit
• Income Tax
• Indirect Tax

Updates

• Income Tax
• Companies Act, 2013
• Indirect Tax

This article is contributed by Partners of SBS and Company LLP - Chartered Accountant Company. You can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.