A V S R & CO Chartered Accountants

26/02/2026

Short and clear summary of General Circular No. 01/2026 – Companies Compliance Facilitation Scheme, 2026 (CCFS-2026): issued by the Ministry of Corporate Affaires MCA
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1️⃣ Purpose of the Scheme
The Ministry of Corporate Affairs has introduced CCFS-2026 to give companies a one-time opportunity to regularize pending annual filings at reduced additional fees.
It aims to:
• Reduce compliance burden
• Help MSMEs and small companies
• Update MCA registry records
• Allow inactive companies to opt for dormancy or closure
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2️⃣ Scheme Period
🗓 15 April 2026 to 15 July 2026
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3️⃣ Benefits Under the Scheme
Companies can choose one of the following:
A. File Pending Annual Returns & Financial Statements
• Pay normal filing fee
• Pay only 10% of additional fee (instead of ₹100 per day without limit)
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B. Apply for Dormant Status (MSC-1)
• Pay 50% of normal filing fee
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C. Apply for Strike Off (STK-2)
• Pay only 25% of applicable filing fee
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4️⃣ Forms Covered
Includes major annual compliance forms such as:
• MGT-7 / MGT-7A
• AOC-4 (including XBRL, CFS, NBFC variants)
• ADT-1
• FC-3 / FC-4
• Old Act forms (20B, 23AC, 23ACA, etc.)
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5️⃣ Immunity from Penalty
Immunity from penalty under Sections 92 & 137 if:
• Filing is done before notice, or
• Within 30 days of adjudication notice
⚠ If penalty order already passed, penalty remains payable (only additional filing fee relief is available).
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6️⃣ Not Applicable To
Scheme does NOT apply to:
• Companies already under final strike-off notice u/s 248
• Companies already applied for strike-off
• Companies already applied for dormant status
• Amalgamated/dissolved companies
• Vanishing companies
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7️⃣ After 15 July 2026
ROC will take strict action against non-compliant companies that do not avail the scheme.
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Practical Insight
If a company has 3 years pending filings with heavy additional fees, this scheme can significantly reduce cost exposure. It is ideal for:
• Private companies with old defaults
• MSMEs
• Inactive companies wanting dormancy
• Promoters planning closure
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A V S R & CO Chartered Accountants

06/12/2025

SUPREME COURT LANDMARK JUDGEMENT: Applicability of GST Exemption on Renting Residential Premises as Hostels to Students and Working Professionals (Pre-2022 Amendment)

✅ The dispute involved whether renting a residential premises to a company, which then used it as a hostel for students and working professionals, is eligible for GST exemption.

✅ Entry 13 of Notification No. 9/2017 exempts “renting of residential dwelling for use as a residence”.

✅ AAR and AAAR denied the exemption, stating: The immediate lessee (a company) was not using the premises as its own residence. A hostel does not qualify as a “residential dwelling”.

✅ The High Court disagreed and allowed the exemption, holding that the end-use for residence is what matters.

✅ The Supreme Court upheld the High Court and dismissed the State’s appeal.

(THE STATE OF KARNATAKA & ANR. VS TAGHAR VASUDEVA AMBRISH & ANR.)

17/11/2025

Supreme Court protects Practicing Chartered Accountant : Held that merely issuing Form 15CB under the Income-Tax Act does not amount to abetment of money laundering.

In this case, a Chartered Accountant had issued Form 15CB for remittances related to import of goods, as required by the bank. Later, the Enforcement Directorate (ED) alleged that the company had illegally transferred money abroad and accused the CA of abetting the offence under the Prevention of Money Laundering Act (PMLA).

The Madras High Court, while granting relief, observed that:

“A Chartered Accountant is not required to verify the genuineness of documents submitted by clients. His role is akin to that of a panel lawyer of a bank, who provides a legal opinion on title deeds without investigating their authenticity. Such professionals cannot be prosecuted along with the principal offender.”

The Supreme Court upheld this reasoning, affirming that the CA cannot be held criminally liable merely for performing his statutory duty under tax law.

[Murali Krishna Chakrala v. The Deputy Director, Directorate of Enforcement, Chennai - [2023] 457 ITR 579 (Madras HC)]

[The Deputy Director v. Murali Krishna Chakrala — SLP (Criminal) Diary No. 8123/2024 (Supreme Court)]

21/09/2025

Capital Gain From Land Gifted By Husband To Wife Taxable In Hand Of Husband And Not Wife: ITAT

Read the (Bangalore) Tribunal Order:
Citation: [2025] 178 taxmann.com 266 (Bangalore-Trib.)

04/03/2025

https://economictimes.indiatimes.com/wealth/tax/your-email-and-social-media-account-can-be-accessed-by-income-tax-officer-starting-next-financial-year-in-these-cases/articleshow/118685184.cms?from=mdr

12/02/2025

*Key Changes proposed in the Income Tax Bill 2025*

*1. Simplification & Clearer Tax Structure*
• The Bill aims to reduce complexity by incorporating provisions from circulars, notifications, and case laws directly into the law.
• Clause 2 defines key terms used in the legislation.

*2. New Income Tax Regime for Individuals & Businesses*
• Clause 200 & 201: Provide optional concessional tax rates for domestic companies and new manufacturing firms.
• Clause 203 & 204: Introduce incentivized tax rates for cooperative societies and start-ups.

*3. Capital Gains & Digital Assets*
• Clause 196-198: Define taxation of short-term and long-term capital gains, distinguishing between equity and non-equity assets.
• Clause 194: Taxation of Virtual Digital Assets (cryptocurrency, NFTs) and online gaming winnings is clarified.

*4. Enhanced Compliance & Reporting Mechanisms*
• Clause 509: Requires detailed reporting of crypto transactions.
• Clause 510: Mandates Annual Information Statements (AIS) for better taxpayer transparency.
• Clause 511: Enforces international tax reporting for cross-border transactions.

*5. General Anti-Avoidance Rule (GAAR) & Tax Avoidance Measures*
• Clause 179-184: Strengthens General Anti-Avoidance Rules (GAAR) to combat tax evasion strategies.
• Clause 185-188: Introduces strict restrictions on cash transactions above ₹2 lakh.

*6. Taxation of Salaried Employees*
• Clause 134: Increases HRA deduction for individuals not receiving HRA.

*7. Procedural Changes & Powers of CBDT*
• Grants CBDT greater procedural powers to frame schemes and rules, similar to GST.
• Clause 526: Bars civil courts from interfering in tax matters, ensuring direct tax administration authority.

18/11/2024

The CBDT has launched a Compliance-Cum-Awareness Campaign for Assessment Year (AY) 2024-25 to assist taxpayers in accurately completing Schedule Foreign Assets and reporting income from foreign sources in their ITRs.

➡️ As part of this campaign, informational messages will be sent via SMS and email to resident taxpayers who have already submitted their ITR for AY 2024-25.

➡️ These messages are intended for individuals identified through information received under bilateral and multilateral agreements, suggesting that they may hold foreign accounts or assets, or have received income from foreign jurisdictions.

➡️ The purpose is to remind and guide those who may not have fully completed Schedule Foreign Assets in their submitted ITR for AY 2024-25, especially in cases involving high-value foreign assets.

➡️ The CBDT expects all eligible taxpayers to take advantage of this opportunity to fulfil their tax responsibilities and contribute to the nation's economic development.

➡️ The effort is in line with the government's aim to foster a culture of transparency, accountability, and voluntary compliance. Details in Press Release at:

The Central Board of Direct Taxes (CBDT) has launched a Compliance-Cum-Awareness Campaign for Assess

06/05/2022

TAX ASSESMENT IT HAS 30 Days to send NOTICE
With the Supreme Court upholding the reassessment notices issued before the amendment to the Income Tax Act through the Finance Act, 2021, taxpayers will have a time period of two weeks to respond to the notices sent by the tax department, experts said.
According to the top court’s judgment, the assessing officer will, within 30 days from May 4, provide the respective assesses the information and all relevant material which was relied upon to send the income tax recovery notice to them. Following the receipt of the notice, the assesses will have up to two weeks to respond to the notice, said Maneet Pal Singh, partner at accounting firm I.P. Pasricha & Co, said.

Around 90,000 notices were issued under the old Section 148 even after passage of Finance Act 2021. They were appealed in high courts of Delhi, Calcutta, Bombay, where the courts quashed the reassessment notices. “All such notices issued beyond the limitation period of 31st March, 2021 shall now be valid and thousands of taxpayers who had been served with a notice shall have to prepare themselves for the reassessment proceedings,” Singh said.
The ruling now also implies that all reassessment notices hereon issued under Section 148 of the Act will be deemed to have been issued under Section 148A, as amended earlier this year. Section 148 of the Income-Tax Act deals with notice in case the income chargeable to tax has escaped assessment for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such notice.
Section 148A, on the other hand, deals with conducting inquiry, providing opportunity of being heard to the assessee. Before issue of notice under Section 148, the assessing officer has to provide an opportunity of being heard to the assessee, by serving him a notice to show cause with the time being not less than seven days and not exceeding thirty days from the date on which such notice is issued. As per the time limitation clause, a notice cannot be issued in normal scenarios if three years have elapsed since the end of the relevant assessment year. However, notice beyond three years can be taken up only if there is evidence that the taxpayer has evaded an assessment of taxable income of at least Rs 50 lakh. In certain cases, notice can be issued beyond 3 years but only up to 10 years from the end of the relevant assessment year.
On Wednesday, a two-judge Supreme Court Bench of Justices M R Shah and B V Nagarathna held that the notices issued to assessees after the cut-off date of March 31, 2021 will be deemed valid under the new section 148 (A) of the Income Tax act as a one time measure.
Tax experts said that the reassessment proceedings are not revived in all the 90,000 cases, but as way forward to the ruling, all reassessment notices will be deemed to have been issued under the amended section.
“If the reassessment notices are considered to be valid even under the new amended law, then taxpayers will now need to be ready to file their ITR in response to the reassessment notice and be ready with all the necessary records, documents and explanations for questions expected to be asked by Income tax authorities in relation to these reassessment proceedings

Source Indian Express