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COMPARISON OF TABLE 4 OF FORM GSTR-3B OPERATIONAL IMPACT OF CHANGES IN TABLE 4 (B) & 4 (D) OF FORM GSTR-3B Currently, many taxpayers have been recording ITC on the eligible inward supply only in their ITC ledger including where ITC is required to be revered in the following scenarios: Where ITC is required to be reversed on account of common inward supply used for taxable as well as exempt outward supply in terms of Rule 42 & 43; or Reversal & Reclaim of ITC in case of non-payment of consideration to vendors within 180 days from the date of invoice; or Any reversal on account of earlier wrong availment & utilization of ITC In respect of ITC on inward supplies covered under 17(5), taxpayers are not recording the same & transfer such ITC directly to the P&L account Further, at the time of availing ITC in GSTR - 3B, reconciliation is done between the Static ITC statement in Form GSTR - 2B vs ITC recorded in books of accounts as per the above-stated manner After such reconciliation & subject to other provisions of Section 16 & 17 of the CGST Act read with Rules made thereunder, the credit will be reported in the respective fields of table 4 of GSTR - 3B However, considering the fact that declaration of ineligible ITC as per Section 17(5) in table 4(D)(1) was just informative in nature and further direct expense out treatment given to such credit in books of account, many taxpayers were not reporting the amount of ineligible ITC as per Section 17(5) in GSTR - 3B After the amendment in Table 4(B) of GSTR - 3B, it has been clarified that all ITC as available in GSTR 2B including ITC ineligible in terms of section 17(5), Rule 42,43 and 38 and re-availed ITC (earlier reversed due to ineligibility as per section 16(2)(c) & (d) and Rule 37) needs to be taken to Table 4(A). Thereafter, ineligible ITC as per the aforesaid provisions will have to be separately taken to Table 4(B). Consequently, Net ITC as per Table 4(C) i.e., [4(A) - 4(B)] shall only be credited to the electronic credit ledger. Thus it is mandatory to record all ineligible ITC as well, even if it is absolute in nature and not reclaimable e.g., Ineligible ITC under Rule 38 or Section 17(5), etc. Accordingly, We believe taxpayers will have to make changes in their manner of accounting for recording ITC by categorizing the same in accordance with various applicable provisions under GST law. We have captured a list of those categories for ease of reference Ineligible ITC in terms of Section 17(5) Ineligible & eligible to reclaim ITC in terms of Rule 37 (non-payment of consideration within 180 days) Ineligible ITC in terms of Rule 38 (reversal of credit by a banking company or a financial institution) Ineligible ITC in terms of Rule 42 (common credit on inward supply of inputs or input services used for outward supply of taxable as well exempted supply) Ineligible ITC in terms of Rule 43 (common credit on inward supply of capital goods used for outward supply of taxable as well exempted supply) Ineligible ITC due to difference in place of supply Ineligible ITC on time-barred invoices in terms of Section 16(4) Ineligible ITC in the current tax period due to non-fulfilment of conditions of Section 16 e.g., receipt of invoice in the current month but supply received in the next month Ineligible ITC used exclusively or party for other than business purpose All other eligible ITC OPERATIONAL IMPACT OF CHANGES IN TABLE 4(B) & 4(D) OF FORM GSTR-3B Form GSTR 2B will also auto-categorize ITC into ineligible ITC in the following two cases: Ineligible ITC in case of intra-State supply where the location of the recipient is different than the place of supply Ineligible ITC on time-barred invoices in terms of Section 16(4) Considering the changes in reporting of ITC in tables 4(B) & (D) of GSTR 3B, every taxpayer needs to revisit their current method of the recording ITC in books of accounts and make appropriate changes to ensure the availability of correct data for reconciliation with ITC in GSTR 2B and smooth reporting in Form GSTR 3B Comparative illustration of reporting of ITC reversal before and after the amendment of GSTR 3B is provided in next slide for better understanding ILLUSTRATION A Registered person M/s ABC is a manufacturer (supplier) of goods. He supplies both taxable as well as exempted goods. In the month of June 2022, he has received input and input services as detailed in Table 1 below. The details of auto-population of Input Tax Credit on all Inward Supplies in various rows of Table 4 (A) of FORM GSTR-3B are shown in column (7) of Table 1 below: Other relevant facts Of the other inward supplies mentioned in a row (5), M/s ABC has received goods on which ITC is barred under section 17(5) of the CGST Act having integrated tax of Rs. 50,000/- In terms of Rules 42 and 43 of the CGST Rules, M/s ABC is required to reverse ITC of Rs. 75,500/- integrated tax, Rs. 52,000/- central tax, and Rs. 52,000/- state tax M/s ABC had not received the supply during June 2022 in respect of an invoice for an inwards supply auto-populated in a row (5) having an integrated tax of Rs. 10,000/- M/s ABC has reversed ITC of Rs. 500/- central tax and Rs. 500/- state tax on account of Rule 37 i.e., where consideration was not paid to the supplier within 180 days M/s ABC has ITC of Rs. 5,000/- central tax and Rs. 5,000/- State tax to reclaim on account Rule 37 An amount of ITC of Rs 10,000/ central Tax and Rs 10,000/- state tax, ineligible on account of the limitation of time period as delineated in subsection (4) of section 16 of the CGST Act, has not been auto-populated in Table 4(A) of FORM GSTR-3B from GSTR 2B BEFORE AMENDMENT Point A: Ineligible ITC as per Section 17(5) is reported in 4(D)(1) for informational purposes and it has already been deducted from 4(A)(5) Point B: Declared in 4(B)(1) to reverse the ITC in terms of Rule 42 & 4 Point C: ITC on the invoice for which supply is not received is not reported anywhere Point D: ITC required to be reversed for non-payment of consideration is reported in table 4(B)(2) Point E: ITC reclaimed as per Rule 37 is reported in 4(A)(5) AFTER AMENDMENT Point A: Ineligible ITC as per Section 17(5) is reported in 4(A)(5) & the same figure is reported in 4(B)(1) for reduction from figures of ‘All other ITC’ Point B: Declared in 4(B)(1) to reverse the ITC in terms of Rule 42 & 4 Point C: ITC on invoices for which supply is not received is reported in 4(A)(5) and the same is also reported in 4(B)(2) to reduce the same Point D: ITC required to be reversed for non-payment of consideration is reported in table 4(B)(2) Point E: ITC reclaimed as per Rule 37 is reported in 4(A)(5) & 4(D)(1) Point F: ITC on time-barred invoices not included in 4(A)(5) and declared in 4(D)(1)

Background In the recent circular no. 177/09/2022-TRU it has been clarified that sale of land after leveling, laying down of drainage lines etc. is sale of land and does not attract GST. This clarification issued post 47th GST Council meeting, has led to lot of debate on whether GST would be leviable or not on development and sale of plots. It has further added to the confusion which was arising due to multiple Advance Rulings under GST wherein held that GST would be applicable on plotted development transactions. It is significant to note that these advance rulings would have binding effect on the applicant and to their set of facts and need not be followed by other assessees and more so when these ruling sare not in line with the intention of the law. Also these adverse advance rulings seem to have come to conclusion without proper analysis of the provisions of law, its intention and by ignoring the past judicial precedents totally. In this article the paper writer has examined the latest clarification and implications of development and sale of plots. Analysis of the clarification on sale of land as given in Circular As per the circular no. 177/09/2022-TRU it has clarified as under: 14. Whether sale of land after levelling, laying down of drainage lines etc., is taxable under GST 14.1. Representation has been received requesting for clarification regarding applicability of GST on sale of land after levelling, laying down of drainage lines etc. 14.2. As per Sl no. (5) of Schedule III of the Central Goods and Services Tax Act, 2017, 'sale of land' is neither a supply of goods nor a supply of services, therefore, sale of land does not attract GST. 14.3. Land may be sold either as it is or after some development such as levelling, laying down of drainage lines, water lines, electricity lines, etc. It is clarified that sale of such developed land is also sale of land and is covered by Sr. No. 5 of Schedule III of the Central Goods and Services Tax Act, 2017 and accordingly does not attract GST. 14.4. However, it may be noted that any service provided for development of land, like levelling, laying of drainage lines (as may be received by developers) shall attract GST at applicable rate for such services. Comments on the circular The circular clarifies that sale of land either as such or after development, is covered as sale of land [entry 5 Schedule III] and not leviable to GST In the Transfer of Property Act, 1882 Section 54. "Sale" is defined. ''Sale" is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. The transaction shall be out of GST net only if the activity is transfer of title or transfer of ownership of land. However any service for development of land, like levelling, laying of drainage lines shall attract GST. The circular has not made clear on tax implications of agreement of sale of land entered by developer with end buyer in course of/during development. In other words, what happens when land is sold in course of development works such as compound wall, drainage, water, electricity line? If the clarification is made applicable to development of plots intended for sale, then developer may not be required to pay GST even if plots were booked before completion and the said transaction would get covered within the meaning of 'sale of land' and excluded from the purview of GST. However, the circular is not clear on this aspect. Way ahead for sale of plots in course of infrastructure development works and post completion of works Agreement to sell land entered prior to completion of infrastructure works: Where the site is not complete, a single agreement for sale of plot in future with specified facilities such as roads, park, club house….[There maybe clear recital to this effect in agreement for sale]. Once complete do the registration of the plot. Based on documentary evidence to prove what was transferred was immoveable property of developed land, it would not be liable to GST It is possible to claim not taxable to GST by citing that the intention of developer is to deliver developed land to customer and not to provide development services. The department's view could be that once agreement is in the course of development of plot, it would be a works contract. GST could be demanded on sums received after entering agreement. Similarly the L&T decision (2013-TIOL-46-SC-CT-LB), has held even an agreement to sell an immovable property would be treated as a 'works contract' as long as, amounts are received from the prospective buyer prior to the completion of the construction. This was decision under erstwhile VAT laws and could have pursuasive value in GST as well. We can recollect the decision of Narne constructions [2013 (29) S.T.R. 3 (S.C.)] a company was engaged in the promotion of ventures for the development of lands into house-plots and invited the intending purchasers through paper publication and brochures to join as members. The Court held that when a person applies for allotment of building plot or for a flat constructed by development authority and enters into an agreement with the developer or a contractor, the nature of the transaction is covered by the expression "service" of any description. Though this was a decision under Consumer Protection Law, this could be relevant to GST as well. Erring on caution, whenDeveloper seeks to avoid disputes with dept,could take call to pay GST to the extent the consideration received by developer is towards the development service. In paper writer view, GST would be levied only on value of development charges and not on land value, even if single lump sum amount is collected. In this article the paper writer has examined the GST implications of sale of developed lands.T to the extent the consideration received by developer is towards the development service. T should be paid only on these recoveries made separately and not on the value of land as land is outside GST. This view is supported by the recent ruling pronounced by the Gujarat High Court in the case of MunjaalManishbhai Bhatt Vs UOI [R/SPECIAL CIVIL APPLICATION NO. 1350 of 2021]. Further, developer could avail proportionate eligible credit attributable to such taxable supplies. No GST on sale of plots post completion of development works. Developer is not liable to GST on the sale of plots after development is done. Corresponding ITC cannot be availed either. Conclusion In this article the paperwriter has examined the GST implications of sale of developed lands.

What is the GST Portal of India? The official website for the Goods and Services Tax (GST) portal of India is https://www.gst.gov.in/. This website allows taxpayers to fill out tax returns online. The portal can handle all aspects of the Goods and Services Tax. It helps taxpayers save time, supports them technically, and eliminates taxpayers' trips to the IRS. The GST portal is easy to use. This allows taxpayers to file GST returns without the help of a financial expert. After registering and completing the sign-up process, you will be able to see your consent GST details. Users can use this online portal to register taxes, file tax returns, make payments, and request refunds. Taxpayers can also cancel their registration and gain access to various GST - related services. Taxpayers can use this platform to get answers to their GST queries. You will also receive important government notifications. This portal allows users to respond to such notifications. This platform encourages taxpayers to file taxes. Users do not need financial experts' help for the same. How to find the GST website portal? As new users or old users, it can be a bit confusing to access the GST portal or official website to use GST gateway services. If you are facing this problem, just follow the below tips to search for the GST portal on Google. Use the direct links to open the GST website https://services.gst.gov.in/ or https://www.gst.gov.in And if you use GST portal services daily, bookmark the official website. When you bookmark a site you can open it directly. If you are doing a Google search, make sure to check the URL properly. It should be a government URL. Do not open any other website with the government URL to avoid any scams. Various Services Provided in the Government GST PortaL Access various Transition Forms (TRAN-1, TRAN-2, TRAN-3) Apply for registration - Normal Taxpayer, Casual Dealer, ISD File GST Returns Online GST Payments Claim return for the excess GST paid (RFD-01) Apply for GST practitioner Avail Composition Scheme (GST CMP-02) Opt out of Composition Scheme (GST CMP-04) Intimation of stock for Composition Dealers (GST CMP-03) File Table 6A of GSTR-1 for Export Refund Furnishing Letter of Undertaking (LUT) (RFD-11) View E-Ledgers Who should register and log in for GST? As per the GST law, the below individuals need to register under the regime of the taxation system: Individuals that are registered under different taxation schemes. For example; VAT, Excise Duty, Service Tax, etc. All e-commerce aggregators. Businesses present across India with an annual turnover of over Rs. 40 lakh. Businesses present in North-Eastern India, Jammu and Kashmir, Uttarakhand, and Himachal Pradesh with an annual turnover of over Rs. 10 lakh. Input service distributors. Agents of suppliers. Any casual taxable person. Any Non - Resident taxable person. All individuals paying tax under the reverse charge mechanism. How do I register on the GST website? Follow the steps below to register yourself on GST Portal Go to the official GST website and select "GST Practitioner" Click the "Register Now " button. Click " New Registration " Please fill in the fields and submit all mentioned documents Next, you will receive a one-time password (OTP) Enter the OTP, enter the characters as displayed in the image box Press the Continue button. A confirmation number will be issued upon completion of your application. Your login process will be completed after receiving your GST no., user ID, password, and GST login application. The GST Government Portal is easily accessible by taxpayers with this information. Who all are required to register on the GST Portal? How do I Login to the GST portal? Typically, there are 2 ways to log in to the official GST portal www.gst.gov.in. They are "Login for Existing Users" and "Log In for New Users" The steps for both of them are as follows: Steps for GST Login for existing users Go to www.gst.gov.in, which is the official GST website. Click on "Login" present on the right-hand section of the homepage. Enter your username, password, and captcha. Click on "Login" On successful completion, you will see a dashboard. On the dashboard, you will see a summary of GST credits that you have. Also, you will see other options such as "File Returns", "Pay Tax", and "Annual Aggregate Turnover (AATO). Additionally, you can also view notices/orders received and other saved forms. Steps for GST Login for existing users Click on "Login" on the top right corner of the GST homepage. Click the "Click here" option present at the bottom of the "Log in" section. It will be present in the "First-time login" section on the page. Enter the provisional ID / GSTIN / UIN and password that you received via email. Enter the captcha and click "Login". New credentials page will be displayed. Enter a username and password as per your liking. Re-confirm your password and click on the "Submit" option. A successful confirmation pop-up message will be displayed on username and password creation. You can now log in to the government GST portal using the same credentials. Whenever you log in for the first time on the GST Government portal, you will be asked to file a non–core amendment application. It will also require your bank details. Click on the "File Amendment" option. The editable application form will be displayed. Enter the required details in the form and submit your application. Is it Necessary to Change your Username and Password after the First Login? Absolutely, yes! It is advisable to change your GST portal username and password after the first login due to security issues. You can still use the same username and password, however, it’s not safe to log in. Also, it is advised by the GST Department to immediately change your credentials after your first log-in. How to reset your GST portal password in case you forgot it? Just follow the easy steps to retrieve your lost password: Go to the login page on the GST Portal. Click on "Forgot Password" or "Forgot Username" Just enter any of the following that you have; Provisional ID / UIN / GSTP ID / User ID. Click on "Generate OTP". An OTP will be sent to your registered mobile number or email id. Enter the OTP and Submit. After this, your new username or password will be received. Steps to track your Registration Application status on the GST government portal Visit the official GST Government portal. Under the "Services" section, select the "Registration" option. Click on the "Track Application Status" option. Select "ARN" and enter your ARN number. Click on "Search". Follow the instructions mentioned to view your registration application status. Steps to file for cancellation of GST registration on the government portal Visit the official GST Government portal. Click "Login" and enter your login credentials. Click on the "Services" option. Then select "Registration" and click "Application for Cancellation of Registration" Enter your address and click on "Save and Proceed". Mention the reason why you’d like to cancel your GST registration. Click on "Save and Proceed". Check the verification statement and provide the required details. Verify the details with the help of a Digital Signature Certificate (DSC) or EVC Option. Submit the form. You will receive the generated ARN number, which can be used for further reference. What can you do in case your GST account gets locked? In case your GST account gets locked, simply reset your password. Follow the instructions as mentioned in the article previously. Once the password is reset, you can use the new password to gain access to your government GST portal. Is it possible to download a GST Certificate without logging in to your GST government portal? No. One has to log in to the GST government portal to access and download your GST certificate. Stay away from any websites that falsely ask you to download your certificate without logging in. They are most likely fraud and spam websites trying to trick you into financial fraud. How does SWIL's GST Billing software help you to enhance your business's abilities? Whether you are a small business, a medium-sized business, or a large business, SWIL Software always provides the best solution for you. Billing is an important part of any business. If you need a billing solution with GST capabilities, it becomes an extremely important issue that requires accuracy and efficiency. It requires a professional approach such as accurate calculations, reminders of unpaid invoices, management, expense billing, tax filing, and GST filing report download. SWIL software has all the advanced features of GST billing software. This software takes a systematic approach to business functions. This affects GST - related invoices, returns, invoices, compliance forms, and other financial functions. It provides one solution for GSTIN, HSN, SAC, tax calculation, various tax rates, and more. Integrating your business with SWIL software means that you don't have to be an accounting expert to handle all accounting tasks. You can get your business on track with minimal technical knowledge, avoid delays in paying customers, complete GST returns, and more. Have you been looking for the most efficient and budget-friendly GST billing software to manage your financial data? SWIL software is an all-in-one solution for you.

Neither RBI on its own can direct, a partial or total freeze of Re-KYC due (non-compliant) bank account nor it can delegate such authority to any bank/branch to impose such a freeze. RBI has formally confirmed that the directions it had given in Sept 2014 were applicable before the amendment on 20th April 2018. What is stated in the write-up is a detailed current status with appropriate commentary. I wonder, why not RBI stop misdirecting and also correct the banks on the subject of freezing SB/CD/FD accounts (where a review of KYC is pending Re-KYC is due) and direct the Integrated Ombudsman to take up the complaint cases, guide customers correctly? Fourth Bi-Monthly Monetary Policy Statement, 2014-15, announced on September 30, 2014 (Points 31 and 32) dealt with easing norms to be followed during periodic KYC updation. It spoke about the introduction of 'partial freezing' on KYC non-compliant accounts by the customers despite repeated reminders by banks. The directions issued then did not refer to a partial freeze (Debit/ Credit or total) on account due to the pendency of periodic 'Re-KYC' or 'KYC review'. RTI query, RBI responded clearly (text below). However, it has been responding differently through its circulars issued during the COVID-19 times. Circulars issued during the 'COVID-19' read something along these lines: "in terms of which Regulated Entities (REs) have to carry out periodic updating of KYC of existing customers. Keeping in view the current COVID-19-related restrictions in various parts of the country, REs are advised that in respect of the customer accounts where periodic updation of KYC is due and pending as of date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law, the etc." RTI Query and formal response from RBI Concerning rules and regulations and Guidelines framed by RBI regarding freezing a bank account of the customer the following information was sought: Copy of Rules, Regulations, Guidelines that enumerate the circumstances, and situations under which banks are allowed to freeze SB and CD accounts of a customer. Copy of Rules, Regulations, and Guidelines that shows delegation of power to freeze a customer SB, CD account Copy of Rules, Regulations, Guidelines circular and notification, if any issued by RBI that stipulates due process checks and balances and time-frame for freezing an SB, CD account of existing customer. RBI's Reply We have not issued any specific instructions in this regard. However you may refer to sections 10(b) 10(c ) and 54 of our Master Direction on Know Your Customer (KYC) dated February 25, 2016, as amended on April 20, 2020, available on our website www.rbi.org.in under the link 'Notifications'. **It may also be noted that provisions on 'partial freezing' were applicable prior to the amendment on April 20, 2018, to Master Direction on Know Your Customer (KYC), dated February 25, 2016. You may also refer to para 5.8.9 on 'Payment of interest on accounts frozen by banks' of our Master Circular DBR No.Leg.BC21/09.07.006/ 2015-16 dated July I, 2015 on "Customer Service in Banks", available on our website mvw.rbi.org.in under the link 'Notifications'. My observation **RBI stated that provisions of partial freezing are no more applicable (since April 20, 2018). RBI did not come out with any new directions post that. No information is available in the public domain. I wonder if that was the case why RBI circulars issued on the subject (including during COVID19) were with a legend "where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law" etc. FAQ on RBI's website continues to specify the procedure to follow for account partial freeze (it becomes full freeze after a certain time frame and following process) Instead of taking a unified/consistent stand in consultation with the government, post a few High Court judgments questioning the authority of RBI, if RBI keeps it ambiguous (through its uncoordinated actions) allow Regulated Entities (REs) for them to interpret conveniently and cause undue harassment to the bank depositors holding Current, Savings and FD account/s. It will not be out of place to mention that one Pvt bank refused to carry out my maturity payout instructions till the KYC review is done to its satisfaction. It appears concerned people have lost sight of the object of PMLA and started harassing the common man. The matter, these days, is not limited to Banks but has spread across (NBFCs, mobile wallet companies) I request RBI to direct the authorities to arrest autocratic acts of illegally freezing the operations in re-KYC due to accounts of customers. Integrated Ombudsman (IO) may be advised to start taking complaints of this nature and direct payment of damages rather than dismissing them by stating that the case does not cover under the IO Scheme 2021. Banks are freezing the re-KYC due account without proper protocol that RBI prescribed in 2014 (subject to the fact' whether such right RBI had, in the first place and 'it subsist now' (in view of RTI formal clarification). Even if such a right was assumed to have been given to RBI in the past, a question remains, was RBI allowed to delegate it to down-the-line bank branch staff overlooking the safety protocols? Doing Re-KYC by submitting the same papers the bank had is very problematic for those who are disabled, old, out of state/country, or sick. The threat of freezing inoperative, and KYC non-compliant accounts, is serious. Not so well-informed bank customers are afraid of a/c freezing. It is the mother of many KYC frauds. To avoid the possible wrath of RBI mobile wallet providers have also started freezing operations in KYC review pending wallets, unmindful of the associated problems the customer may face. The origin of the majority of KYC frauds perpetuated by miscreants is by taking the advantage of this fear of the consumer community. A bank account cannot be blocked unless there is the appropriate direction from judicial authority and or law enforcement agency under applicable provisions under the Act like Section 51A of Unlawful Activities (Prevention) Act, 1967. Is Freezing of Bank Account by a bank legal and feasible? Rule 3 of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 obligates the banks to keep KYC records and track their bank accounts and transactions. It obligates the banks to update KYC records: keep on updating such KYC information every 2 years for high-risk customers, every 8 years for medium-risk customers, and every 10 years for low-risk customers. But this result in harassment of the customers to keep on asking them now and then same details and proof for records. Freezing the account if KYC/ReKYC papers are not submitted to REs satisfaction is quite understandable. One may peruse the case of the State Bank of India vs. Ashvin Chaturbhai Parmar Gujarat High Court No. 5100 of 2012. In this case, the respondent's bank account was frozen by the Bank as the KYC formalities were not complied with. A petition was then filed with the Gujarat High Court and the court held that the bank does not have any right to freeze the account or stop the checkbook and ATM facility due to non-compliance with KYC requirements. The court pronounced that the bank would have the right to close the account with prior intimation and notice to the customer that if the documents are not submitted, then the account will be closed following due process. The bank had pleaded with the court to revisit the judgment as freezing the account is more feasible than closing down the account completely. The court then took up the matter again to review the order and held that the freezing of the account is not more feasible than closing the account because the customer is deprived of his own money while the account is frozen and any cheque drawn on him during that period will land him in a criminal suit for the dishonor of cheque, in spite having sufficient funds with himself to honor the cheque. In court warned the bank to not freeze any accounts illegally and that such an act in the future would lead to strict actions by the Reserve Bank of India and Banking Ombudsman. This judgment highlighted some key issues with the KYC process. This protects the customers from regular harassment by the bank employees for repeated demands of KYC document submission, even when the same has been done. Though the above judgment gave relief to the customers, the banks indulge in the practice of humiliating and harassing their customers for the updation of KYC details. Account closure is relatively simpler and legitimate. One may wonder if RBI is aware of this and why it is continuing to give deaf ears to specific complaints of the customer community and allow customers to get harassed on this count (it neither educates consumers through its communication channels nor it directs banks and other regulated entities (REs) not to take the law into their hands. The system of class action suits is not prevalent in India. Individual suits are costly and time-consuming. Moreover, the judiciary will get further overburdened with many individual suits. Compel RBI to bring the matter into the ambit of the Integrated Ombudsman and seek penalties for mental agony etc 9until banks get legislation's approval to have this kind of right subject to adhering to certain strict protocols). One should know that lawmakers will not give the powers to freeze accounts to 'Tom Dick and Harry and see anybody's financial fate sealed through the freezing of bank accounts for this petty matter. The object behind freezing should be evaluated against the odds and hardships that the community may face. Just like one can do the activation of an inoperative account through simple process clients should be guided to do for Re-KYC using various options and such options should be documented in RE's KYC policy. In many cases, Re-KYC can be done through a simple letter or letter coupled with a self-attested copy of the proof of a change of address, etc or a CKYC reference number allotted by the CKYC registry (14-digit number) and less complex methods rather than compelling the clients to visit in person to nearest or base branch of the said bank causing great hardship. As the article is not aimed to cover CKYC aspects I desist from elaborating further. Few PSU banks and Coop banks have started accepting 'CKYC numbers' in place of OVDs for Re-KYC. Many banks like Axis Bank, and ICICI Bank couple of others, totally disregard law of the land on the CKYC registry and RBI's directions to them as a valid mode for KYC. A serious follow-up with RBI on this to ensure these banks fall in the line with directions is not taken by RBI seriously. RBI is not taking any action against erring entities. The purpose of setting up the registry with a huge database has become a waste of national resources. To put pressure on senior citizens and less informed, less educated people fraudulent people always use a trick they say that your ATM card, bank account, or internet banking would be blocked if you do not do re-KYC. The threat of account freeze is behind many banking frauds. A person is shown a threat to block his/her account and to share KYC data & other vital details to perpetrate fraud. If such a/c freezing threats from Regulated entities (REs) are stopped there will be a considerable fall in the instances of cheating/fraud. The purpose of KYC (done to prevent the banks and financial institutions from being the hub of criminal activities, such as money laundering or finances of terrorist activities) ReKYC is lost sight of by all and the focus is now on compliance in the manner RE deems fit, by hook or crook. KYC-related punishment now practiced by banks is not only illegitimate but deprives the customer of access to their own money, entrusted with banks. Freezing of bank accounts inflicts extreme hardship, and sometimes means the financial death of honest, law-abiding depositors. It also means treating them worse than hard-core criminals or those accused of financial fraud. If freezing of account, as an action, is formally done away with: Once the regulated entities are made clear that they can no longer resort to the strategy of threatening and adopting legitimate ways of freezing the accounts they will look for simple easier recordable ways to update that KYC database individually and collectively which can be consolidated by RBI and give one a formal clearance in consultation with the government many frauds emanated on account of KYC threat would get reduced and customers will have relief from the nightmare/harassment. Banks may have to proactively find different ways to keep the KYC records updated. Use different channels to get required inputs/confirmation like from SERSAI, customers from banking customers instead of resorting to freezing the accounts illegally. It is easily possible to periodically update the data to comply with PMLA requirements through the usage of CKYC etc. Banks have to take up the matter with RBI and get approval for the new ways of collecting authentic information from the customer with supporting evidence for the Re-KYC. Through an Act (of parliament) SERSAI had been mandated by the government to build a Central database that can be shared between the member entities regulated by RBI, SEBI, IRDA, and PFRDA among others. This was done to simplify the process of KYC and sharing KYC data for simplification of processes and wiring duplication of days are sort by each regulated entities of these agencies paper reports 35 crores of database removing depletion and it can be shared authentically between the member and it is on demand. These things are not limited to KYC/RE-KYC. Many banks/wallets have started implementing partial freeze (debit/credit) to inoperative accounts/wallets unmindful of the lack of any authority and regulatory directions to the contrary. I shall be sharing my experience of PSU bank bouncing a cheque drawn on an inoperative/dormant account where the KYC review was not due. These days banks ask for KYC papers fresh to operationalize inoperative accounts. Complete confusion over the basic concepts in the banks at a supervisory level. The same confusion is getting reflected at Ombudsman Office, CEPD(RBI) over this matter, which makes me wonder where are we heading. Those interested in reading on another theme may peruse my other article on the subject (being simultaneously published). Can Bank Freez Inoperative-Dormant Account not be due for KYC? Can the bank bounce cheque is drawn by a customer on an inoperative account? Is the act of banks to not accept customers' simple written requests to make it active/operationalize without token credit (in non-KYC due cases) and also insist on re-KYC, not terrible/atrocious/disgraceful? Summing up While trying to explore the reasons behind banks acting in this manner I felt In the current business model of banks is responsible. The front office of the bank i.e branches that faces the customers collect the papers and forward the same to the back office for record keeping and processing. As a result, routinely front office started seeking the papers, and data processing teams started recording the data, and papers received. Bank started routinely demanding these papers to satisfy the needs of the back office. These teams often followed structured processes and had no flexibility, authority to probe etc. Harassment of customers started there. The unskilled data entry staff started dictating the terms and stuck to old laid down processes, the front office started submitting to it and insisted customers provide the documentary proof so demanded by back office, even if that means the multiplicity of paper submissions. When an aggrieved customer approaches the branch, he is told by the bank that their hands are tied as it is the RBI's + PMLA (Act) guidelines or Back office of the bank demands and they have to follow the same. No one asserts either internally or externally. The entities believe RBI has powers under PMLA and the executive power of freezing the account has been delegated by it to the bank employees. This has created havoc. The bank where the account is maintained could thus make or break a person, as the savings of his life come at stake when the bank freezes the account for non-compliance to a petty & non-serious thing. Banks should be focussing suspicious transactions in the account, on noticing the same reasonable ground that some illegal or criminal activity happening through the account, in absence of a satisfactory explanation it can recommend freezing of debit/credit to the appropriate agency having authority through STRs etc. The decision should be left to the judiciary or the appropriate agency and the banks should freeze the accounts only once the court has ordered or an agency having appropriate authority has directed specifically to it. In reality money, launders know ways to dodge the process. It is the innocent account holders who get trapped unnecessarily even after abiding by all the requirements and having no suspicious activity in the account. Many of us have noticed that the REs insist on 12-digit Aadhar numbers. Unmasked Aadhar or virtual Aadhar is not accepted for KYYC or KYC review. Where a driving license is given KYC banks insist the customers give information about driving license numbers etc. These numbers don't form an integral part of the opening or maintaining of a bank account. Many banks refuse to accept ID documents other than PAN or Aadhar for KYC/Re-KYC. RBI is aware that the PMLA does not give it punitive powers like freezing. It also does not give any authority to delegate such powers to the bank/branch or its officials. Closing undesirable accounts is treated as the best practical solution. Despite that Banks continue with their threatening actions of debit freeze followed by credit freeze (total freeze) that too without giving appropriate notice. Whenever the case is taken up by the aggrieved client of RE(say a bank) to CEPD, RBI pushes the matter to Integrated Ombudsman (earlier Banking Ombudsman). Ombudsman directs the client to file a case on the IO's website with all proper supporting papers. IO later dismisses the case stating that it is not on the grounds of complaint covered under the IO scheme/BO Scheme. The dismissal is always without a right to appeal. Thus, it gives a systematic burial to the complaint within RBI's spectrum. Instead of doing this RBI should find a better way to address the matter, in consultation with Govt. Make the process of KYC review simpler ** Using CKYC number and data SMS-based KYC in specific cases Internet-based Re-KYC, KYC review through a customer signed a letter with CKYC number, Not compelling customers to visit the bank/branch and many more. Conclusion RBI should stop issuing contradicting its directions and initiate steps against the regulated entity doing excesses/overindulgences to stop the abuse of the position of a bank and reduce hardship to customers RTI responses given every month/Quarter that have bearing on public good could be compiled and published on the official website of RBI (as SEBI does). RBI may give clear directions to all banks and other regulated entities on the non-feasibility of 'partial' and or Debit + Credit (total) freeze [introduced in the year 2014 but coolly withdrawn (without a formal communication in the public domain) the post 20th April 2018] reiterate the need for re-KYC through investor education, suggesting banks engaging special agency for the purpose, staff training on KYC review, prizes for best performer etc. RBI may pool the talent from REs and suggest different positive ways to update KYC. Banks should be encouraged to use the CKYC database (number) etc. It may encourage positive methods to update KYC rather than making banks/REs pay huge fines for not updating their records, and making customers suffer. Investor association collectively should file a case appealing the court to direct RBI to formally withdraw its directions of Sept,2014 which inter alia formalized the process of freezing bank accounts for non-compliance of KYC/KYC review For readers interested in knowing RBI's directions on 'partial freezing' : RBI advised banks to enforce 'a partial freeze' after observing the following process: Banks have to give due notice of three months initially to the customers before exercising the option of 'partial freezing. After that, a reminder for a further period of three months will be issued. Thereafter, banks shall impose 'partial freezing' by allowing all credits and disallowing all debits with the freedom to close the accounts. If the accounts are still KYC non-compliant after six months of imposing initial 'partial freezing' banks shall disallow all debits and credits from/to the accounts, classifying them as inoperative. While doing so at any time customer was allowed to close the account and walk away. Banks however do not allow 'mandated exist' till the Re-KYC was done. This was unjust. I did a small follow–up on the RTI reply. I had perused the complete circular more specifically annexure –II, clauses 10(b) 10(c), and 54 of RBI's Master Direction on Know Your Customer (KYC) dated February 25, 2016, as amended on April 20, 2020, freezing of assets under Section 51A of Unlawful Activities (Prevention) Act, 1967. Nowhere I could find any reference to RBI having the authority to freeze the account for non-compliance of KYC or non-compliance of KYC review (Re-KYC). On the contrary under point 38 of Master Direction on February 25, 2016, RBI had stated that Regulated entities (REs) shall ensure that their internal KYC policy and processes on periodic updation of KYC are transparent and adverse actions against the customers should be avoided, unless warranted by specific regulatory requirements. The board-approved policy on KYC, among others, should be periodically updated and displayed on banks web site along with the date, etc. as mandatory policy,

PAN card or Permanent Account Number is a unique ten-digit alphanumeric number issued by NSDL in India. It is used for various tax purposes while filing as identity proof and serves as valid identity proof for multiple other processes. How To Update Details on Your PAN Card If you have any changes in detail printed on your PAN Card, you can make that easy by both online and offline methods for PAN Card correction. Steps To Make Changes in Your PAN Card Online 1. Log in to the official NSDL e-governance website 2. Under the Services tab, Click on "PAN''. On the new webpage page Click "Apply" under the "Change/Correction in PAN Data'' and select the 'Application Type' dropdown menu 3. From the 'Category' dropdown menu, select the correct category of the assessee, and enter your updated name, date of birth, email address, and mobile number. 4. After successful submission, you will get a Token Number which will also be sent on your registered email ID. Now, click the below button to fill out the remaining PAN application form. 5. After successful submission, you will be redirected to the payment gateway. Payment can be made through demand draft, net banking, and a Credit card or Debit card. 6. Once the payment is done, an acknowledgment slip will be generated. You need to take a print of it and send it to the NSDL e-gov office along with the physical proof of the supporting documents at The author Sushant Gangurde is a legal analyst who aims to educate people about various tax laws and financial planning.

The Ministry of Finance has notified Foreign Exchange Management (Overseas Investment) Rules, 2022 ("Rules") with a view to ease the restrictions on outbound investments in India. The Overseas Direct investment ("ODI") rules were earlier governed by Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations 2004 and Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations 2015. The Central Government has now issued Overseas Investment Rules replacing the Two Regulations. The Rules has made significant changes to the framework for allowing overseas investments by Indian entities and resident individuals. It is now easier for domestic corporates to invest abroad while making it harder for loan defaulters and others probed by investigative agencies to remit funds overseas. The aim of these regulations is to align the current business and economic dynamics and help India in ease of doing business. 1. Overseas Investment An investment by a person resident in India ("PRII"), shall be made in a foreign entity outside India, which is engaged in a bonafide business activity (i.e business permissible under any law in India or the host country) subject to limits laid down in the rules. Where such foreign entity is registered or incorporated in Pakistan or any other jurisdiction as advised by Central Government, prior approval of Central Government is required before any investment or transfer. 2. No Objection Certificate Investors have to obtain NOC from banks or regulatory bodies like RBI, SEBI etc or investigating bodies like SFIO, CBI etc (where applicable) in case such resident investors have either been classified as a wilful defaulter by banks or whose account has been classified as Non-Performing Asset. In case no NOC is received within 60 days from date of making application, it shall be presumed that there is no objection to proposed transaction. 3. Pricing Guidelines Transfer or Issues of equity capital of foreign entity from PROI to PRII shall be made at arm’s length price which shall be verified by AD Bank. 4. Transfer or Liquidation Where a transfer of investment takes place on account of merger, demerger, buyback of foreign securities or in event of liquidation of foreign entity, approval of competent authority is required as per Indian Laws or laws of host country. 5. Restrictions and Prohibitions A PRII shall not make overseas investment in foreign entity engaged in real estate, gambling in any form or dealing with financial products linked to Indian Rupee without specific approval of RBI. Indian entites can use only internal accruals while investing in Startups of host Countries whereas the resident individuals can use their own funds. Further no investment shall be made in foreign entities that have invested in India, directly or indirectly in more than two layers of subsidiaries. 6. Restructuring A PRII having invested overseas in foreign entity may permit restructuring of balance sheets of such foreign entity which has incurred losses for preceding two years. Further in case the diminution (Reduction in size) of entity where original investment is more than Rs 10 million or amount of such diminution exceeds 20% of the total value of the outstanding dues, a registered valuer shall submit a valuation report. 7. Restrictions on acquisition or transfer of immovable property outside India A PRII shall acquire or transfer any immovable property outside India only with General or Special permission of RBI except for certain properties as provided. Such acquisition from non-resident can be by way of: Inheritance Jointly with a relative who is a PROI Income or sale proceeds of assets, other than ODI acquired overseas Purchase of foreign exchange or Purchase out of remittances sent under Liberalised Incentive Scheme of RBI An Indian entity having an office overseas may acquire an immovable property for business or residential purpose as per directions of RBI. Further a PRII who has acquired an immovable property outside India can transfer such property to PRII eligible under these rules or a charge can be created on such property as per the directions of RBI. 8. Schedule I& II: Manner of making Overseas investment By Indian Entities An Indian entity may make Overseas Portfolio Investment ("OPI") not exceeding 50% of net worth as per latest audited balance sheet. OPI refers to investment, other than ODI in foreign securities, but not in unlisted debt instruments or any securities issued by person other than IFSC. The total financial commitment by an Indian Entity in all the foreign entities taken together shall not exceed 400% of net worth as per latest audited balance sheet or as directed by RBI. 9. Schedule III: Manner of making Overseas Investment By Resident Individuals An Individual may make ODI by way of investment in equity capital or OPI, subject to the overall ceiling under Liberalised Incentive Scheme. Currently, the LRS allows an individual USD 2, 50,000 outward investment per year. A Resident individual can now receive a gift or acquire foreign securities by way of inheritance from any non-resident outside India. Earlier this was allowed only from relatives. This acquisition shall be subject to compliance of Foreign Contribution (Regulation) Act, 2010. 10. Schedule V: Overseas Investment in IFSC by person resident in India A PRII may make an overseas investment in an IFSC (International Financial Service Centre) in India within the prescribed limits A PRII can make contribution in investment fund or vehicle set up in an IFSC as Overseas Portfolio Investment. An ODI can be made by a resident individual in a foreign entity, including an entity engaged in financial service activity (except in banking and insurance) in IFSC if such entity does not have subsidiary or step down subsidiary outside IFSC where the resident individual has control in foreign entity. In conjunction with the RBI, Government of India have put forward comprehensive manner of making investment overseas. Considering ever evolving global scenario, these rules have been brought in place to simplify business needs in India to be at par with the global value chain.

SHORT SUMMARY As per the MCA notification dated 18thAugust 2022 Government has notified the Companies (Incorporation) Third Amendment Rules, 2022. As per the amended rules MCA has added a new Rule i.e.25B- Physical verification of Registered office of the Company. This rule came to complete the Section 12(9) of Companies Act, 2013. MCA has made amendment in Section 12(9) of Companies Act, 2013 on July, 2019. Since that period the manner/ process of physical verification of registered office was pending for MCA side. Finally, MCA came with rule 25B. Note: This amendment in Rules in nothing but an attempt to only prescribe the procedure for an enabling clause which was inserted through a new Sub-sec (9) in Sec 12 of the CA2013 as amended in 2019. These rulesonly provides that when the ROC has a reasonable cause to believe that the company is not carrying on business only then he can cause a physical verification. I. Interpretation of Provisions As per the provisions of Rule 25B “ROC may visit the Registered office of the Company and conduct physical verification of Registered Office.” II. Situations in which ROC can conduct physical verification There is dilemma in the professionals/ corporates in respect of situations in which ROC can conduct the Physical Verification. Many questions asked by professionals on these rules. Like: Whether these rules applicable on New Incorporations? Whether these rules shall be apply on old Incorporation? Whether ROC will conduct physical verification of Registered office of all the Companies? After reading the rule 25B along with Section 12(9) one can opine that following shall be situations when ROC can conduct physical verification of Registered office. 1. ROC Received any Complaint: If ROC received any complaints against the Company from any other authorities, stake holders, public etc. In such situations ROC can conduct the physical verification of Registered office of Company. 2. Notice Returned Back: If ROC/ RD send any notice or letter to Company. Such letter returned as undelivered. In such situations it can be presume that Company is not maintaining registered office on address mentioned as Registered office and ROC can conduct physical verification of Registered office. 3. Annual Documents not Filed: If Company has not filed Annual Forms like AOC-4, MGT-7 etc. continue 2 years or more. In such situation as per provisions of Section 12(9) of Companies Act, 2013 ROC can take a view that Company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company 4. Non filing of Declaration of Commencement: If Company has not filed Declaration of Commencement of Business in e-form INC 20A. In such situation as p er provisions of Companies Act, 2013 ROC can take a view that Company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company 5. Company fails to file INC-22: If in any case at the time of Incorporation of Company, its doesn’t mention the address of Registered office of Company in SPICE Part B, Company have to file INC-22 within 30 days of Incorporation. In such case, if Company fails to file INC-22 in such situation ROC can take a view that Company is not maintaining its registered office and can conduct physical verification of Registered office of Company. III. Consequence of non-maintenance of Registered Office Where the registered office of the company is found to be not capable of receiving and acknowledging all communications and notices, the Registrar shall send a notice to the company and all the directors of the company, of his intention to remove the name of the company from the register of companies. IV. Process of Physical Verification of Registered Office The Registrar shall carry the documents as filed on MCA 21 in support of the address of the registered office of the company for the purposes of physical verification to authenticate the place and documents. The ROC shall a) check the authenticity of the documents filed with ROC by the Company by cross verification with the copies of supporting documents of such address collected during the said physical verification b) take a photograph of the registered office of the company while causing physical verification of the same c) Prepare report of the physical verification and Report on Physical Verification of the Registered Office of the Company shall includes followings: Name and CIN of the Company Latest address of the registered office of the company as per MCA 21 record Date of authorization letter issued by the Registrar of Companies Name of the Registrar of Companies Date and Time of visit for physical verification of the registered office Location details along with Landmark Details of the person available if any at the time of the visit- Name Father's Name Residential address Relationship with the company, if applicable Remarks if any Documents attached Copy of the agreement/ownership/rent agreement/No Objection Certificate of the registered office of the company from owner/ tenant/ lessor: - Photograph of the registered office Self-Attested ID-Card of the person available, if any Any other document(s)

Since you have filed your returns by now, it is now time to keep a close watch on your emails as the Income Tax Department may be communicating to you at any time about processing of your returns filed. Here is the list of things to check after filing return- Emails As stated earlier, one needs to keep a close watch on the emails as you are about to receive an email from the Income Tax Department about your return. Your return may be accepted and processed as you have filed if the Department doesn’t find any discrepancies with the information furnished. But, if the Department is not satisfied with the information furnished in the return, it may seek further clarifications before processing the return and may also ask you to pay additional tax, interest and penalty if there is any shortfall, through emails. Reconfirmation of Investments and Deductions The department uses artificial intelligence while processing your returns. While doing so, if it comes to the notice of the department that you have claimed additional deductions or rebates on investments made when compared to your earlier year or what is provided in Form 16 by your employer, then you are more like to receive a notice from the department asking you to reconfirm the investments and deductions claimed. In addition to this you may also be asked to provide the supporting documents for the investments and deductions claimed. If you fail to provide the necessary clarifications and documents you may also be subject to penalty for evading tax. Failure of Refund While filing the returns, one should make sure that the bank accounts are prevalidated and nominated for refund. If not, you might receive a communication from the department informing you about refund failures. Not just that, these days many taxpayers are also receiving refund failure messages from the department, though they have rightfully prevalidated the bank account and nominated for refund and have also received refund in the same bank account in the previous years. This may be due to PAN not linked to bank account, mismatch in the name in the bank records and name as per PAN or failure to renew customer(KYC norms as per bank). Taxes paid not getting Reflected Few taxpayers have received notice from the department asking the reason for not paying their taxes though they have paid. This may be due to misquoting of PAN while paying taxes or time lag between the date of payment of taxes and tax payment getting reflected in Form 26AS. In such cases the taxpayer should seek reprocessing of returns. Disclosure of Foreign Assets Individuals who have foreign assets are being sent notices. Either foreign travel information is being used or residential status being traced to unearth taxpayers evading taxes on foreign assets. If you were working abroad and had a bank account in the country earlier, or received employee stock options of internationally listed companies as you worked for a multinational company, then you would have to justify how you acquired these and why the same wasn’t mentioned in your tax return. Apart from capital gains during sale, even dividend income from these international equities would have to be declared under the Schedule for Assets and Liabilities

An Aadhaar Card is an essential document for proof of identity, residence, date of birth, etc. for availing various government purposes, admission, the opening of bank Account, etc. However, it is very important to keep your details available in your Aadhaar card accurate and up to date. Updating Details of Aadhaar Card You can update/change your name (minor changes), date of birth, address, gender, and language on your Aadhaar card in both online and offline methods. However, to make the updates/changes online, your mobile number should be linked with your Aadhaar card Updating Aadhaar Card Details Online A person can change his Aadhaar card online by following the below steps Login to the official UIDAI website at https://ssup.uidai.gov.in/ssup/ On the login page, enter your 12-digit Aadhaar number, and captcha code and click on “Send OTP” Enter the OTP received which will be sent on your registered mobile number Now you can see your details as they currently exist on your Aadhaar card. choose to update the Aadhaar details you want to update along with scanned copies of the supporting documents and click on “Proceed to Update Aadhaar Check the preview of the newly added details and pay the online update fee of Rs. 50 (non-refundable) using debit/credit card or net banking. After the successful payment, an Update Request Number (URN) will be generated that can be used to trace the status of the Aadhaar update request. It usually takes about 5 – 7 days for updates. Steps To Update Aadhaar Card Offline You can visit your nearest Aadhaar Seva Kendra to get your details updated. You can also visit various banks such as Axis Bank to update your required details in Aadhaar card. Fill the Aadhaar correction form. Self -attest copies of proofs validating your update request and submit the form along with documents on the center Pay a fee at the Enrolment Center for update or correction. You can get all your details including your biometric data, image, mobile number, etc. updated at the enrolment center. The author Sushant Gangurde is a legal analyst who aims to educate people about various tax laws and financial planning.

We all pay a lot of attention to learn various soft skills. But a life skill which is certainly under rated but is the most important is - Financial skills. It is a skill which should be taught at high school, at the least in college. It is unfair to leave that skill with only financial professionals. Financial planning is a subject of its own, diverse options to understand, various aspects to consider. Also, it is like your health. One cannot and should not use general advice. Everyone's requirement, commitments, salary, situation, needs, goals are different. Hence everyone's financial plan will be unique and different. The best way to draw a perfect financial plan is to take advise from a financial professional. But it is a life skill to know the basics at the least so that you know how to start. In this article I will be highlighting those basics of managing finances. What do I mean by financial skills? Financial skill includes: Planning a budget of monthly expenses Accounting for every expense Foreseeing major future expenses and planning to save for them Identifying your surplus if any Understanding the various investment options and choosing the right one at the right stage of your life, for your surplus. Well, we certainly cannot cover all the above topics in one article, but I aim to create awareness and impart basic skills to via KaizenEdu - Financial skills. In this article, I will be discussing the three steps of managing finances and at the end of the article,I have put down an example financial plan. But please do read all the content before you go to the example. Example is only an 'example plan', having a complete understanding will help you the most. Living by yourself or gaining financial freedom can be exciting. But when you must plan your expenses, savings, and investments with the money you earn it can become daunting and scary. The below inputs can be taken whether you are in India or abroad, exceptoptions mentioned in step 3 - investments as it will vary from country to country. Who is this article for? If you have just started earning or just started to live by yourself in India or abroad as a student, this article is apt for you. Even if you are in the first 5 years of employment or been earning salary and recently married, this is for you as well. Yet, it is never too late so irrespective of which stage you are in, if you want to learn some skills and start afresh, you are in the right place. Ok let us cut to the chase - How to start managing your finances, stepwise: 1. Budget of your expenses This is the first step of financial planning. It is of extreme importance to first understand your monthly expenses. You must face the bitter truth to start your journey towards financial solace! List down all your expenses by categorising them all - Housing, food, commute, entertainment, health and beauty, subscriptions, insurance to name a few. Adjust the money for each category to fit within your income. Some points to keep in mind Categorise wisely. It is ok to have many categories. Simply clubbing 2-3 different type of expense into one will overestimate a category unnecessarily. Restaurant visits are better categorised as your entertainment expenses instead of food as 'food' would cover your grocery & provisions purchased for the month. It is common for people to ignore expenses of small expenses (say of less than Rs.100), but as we know droplets combine to become an ocean. A combination of all those ignored small expenses can combine to become one big 'unknown' expense. Yes, set aside for your entertainment expenses too - say, restaurant, movies, weekend getaways. Everyone of us need time off for entertainment and unwinding. It is better to put a number to it and set aside than to feel guilty each time you indulge in entertainment unsure if it is within the budget or beyond. Another doubt one may have at this stage - how to deal with reimbursable expenses? You may have some expenses which will be reimbursed by your employer at a future date, say commute to work. The most important words here are 'future date'. So currently it is an expense. It could be treated as an income in that future date when you receive it. I recently saw a post by a doctor who suspects to have received a higher pay from his employerthe last couple of months and wanted to get an idea to read a payslip to understand why exactly he has received more. In the post he also went on to mention that he has no idea how much he usually earns and how much he usually spends! Only one thing to say to this - if you fail to plan, you plan to fail! I have also noticed lot of my younger counterparts in the dark aboutfinancial planning. Well, managing finances is a lot more than investing in latest trends such as mutual funds. Not their fault - after all topics like algebra & trigonometry we studied in high school certainly does not help any one to manage finances, plan investments or file income tax returns. 2. Foresee and save The second step is to SAVE, NOT INVEST. Ideally after the budgeted expenses, you have some money left from your income. Do not rush to invest. Understand that you will have some major spends soon. So, save categorically. Let us face it: Saving is different from investing- When you save you set aside money sometimes earning some interest on it to cover inflation. Savings is to cover your short-term future.While investment is where you put your money into an asset or an instrument to see your money grow as the asset/instrument increases in value. This is usually to benefit us on the long term. We first must cover our near future and save to have liquid money for our major spends before we put our money into an asset/instrument and cover our far future. The idea is to make your money speak for you; you don't have to crunch your expenses to invest from your first month of salary. When you do save, it is important you categorise and time your savings. To do this you need to foresee. There are two ways of doing it: List down all the major expenses you are expecting to incur in the next couple of months to one year - Specific gadget purchase, vehicle purchase, furniture purchase, home makeover etc. Once you have the list, put a number to every category, then put a date when you are likely to spend that money. Now, simple divide the number by the number of months you have till you expect to spend. That will be the amount you have to save for that category monthly. Another way of doing it is, recognising regular major spends such as long trips, personal shopping, vehicle maintenance etc. Save a fixed amount monthly on a recurring basis. You can either set this money aside into a separate savings account or create RD's (Recurring Deposit which has an average of 4% p.a interest as on 2022) for each category to earn more interest in comparison to a savings account. 3. Surplus = Investment After setting aside to save if you still have some money left - that is surplus. You can finally plan to invest. It is okay, even if you do not have any surplus. It is important to support yourself with your budgeted expenses and your near future major spends before you put your money into an asset/instrument. Investment is a huge subject by itself, and you will find articles on KaizenEdu by on this topic. To touch base, I shall mention the aspects to consider when you choose an investment option and list down investment options available in India. Aspects to consider when you choose an investment option Returns - Compare the returns promised in all options Income tax benefit - Look for income tax benefits in the form of 'Chapter VIA Deductions/Any Sub-s ection under Section 80 Deductions' Safety - Some options provide you a risk-free guaranteed returns such as PF, Government bonds, FD, RD while anything on the share market including mutual funds carry an amount of risk and hence would not give you guaranteed returns. Be aware of them and decidewhether you can bear that risk/loss. Investment options in India Public provident fund (A long term option where you have to invest for atleast 15 years with a risk free 7.1% p.a interest as on 2022) Government bonds (Various department issue bonds which provide risk free interest) Gold bonds (A wonderful way to take benefit of gold prices while not staking up actual gold at home and to earn an interest of 2.5% p.ain addition on principal invested) House/A site (An option which requires a heavier investment but also promises heavy returns) Shares/Debentures from the share market (Companies prioritise paying interest on debentures than dividends on shares. Hence on comparing risk involved in the two, debentures have lesser risk.) Mutual funds/SIPs (Mutual fundsis a combination of shares of various companies put together and further broken down. SIP is a type of mutual fund giving investors an option to invest lesser amounts monthly. The returns offered could vary between 1% to 10% or more p.a but there are various types of risks involved.) Example financial plan 2022-23 A married couple aged 25-30, both working and living by themselves in a metro city in South India.Salary is the only income for both. Disclaimer: This is only an example based on various assumptions. This should not be considered as plan drawn for you. Situations, goals, and necessities of each one of you could be quite different. It is essential you consider all your personal factors to draw up your unique plan. Net pay of 2 - Rs. 1,20,000 Budgeted expenses - Rs. 69,700 (Balance - Rs, 50,300): Rent - Rs. 25,000 (2 BHK house) Bills - Rs. 1000 (Electricity, Water, Gas) Food - Rs. 15,000 (Groceries, Provisions) Subscriptions- Rs. 1000 (Mobile, TV, 2 OTTs) Health Insurance - Rs. 1200 Commute- Rs. 4500 (1 bike with 40 KMPL mileage/Bus pass for 1 + 1 car 30 KMPL mileage. Petrol price considered - Rs. 105/L) Health &Fitness - Rs. 2500 (Gym, Medicines) Beauty- Rs. 1500 (Parlour visits) Entertainment- Rs. 8000 (Restaurants, Movie, Weekend getaways,Spa) Transfer to Parents' account - Rs. 10,000 Savings - Rs. 34,000 (Balance - Rs. 16,300) Vehicle/Electronic/Gadget purchase - Rs. 10,000[Can afford a purchase every 4 months] Vehicle maintenance - Rs. 2000 (Service, Annual insurance, Damages for a hatchback car) Long trips- Rs. 17,000 [Can afford a long trip within India every 3 months OR a short trip to a country nearby every 10 months.] Personal shopping - Rs. 5000 *Once total net salary increases by Rs. 25000, to start saving the same to buy a house in 5 years' time. Investments with balance - Rs. 16,300 1st month - One time investment on GOI Gold bonds (3 units) - Approx Rs. 14,500 2nd month onwards - PPF 1 - Rs. 8150 (7.1% p.a in 2022)[Post retirement protection] PPF2 - Rs. 8150 (7.1% p.a in 2022) [Post retirement protection] Wish you financial solace!

Every Indian citizen is responsible for paying income tax and filing tax returns. It's a healthy habit to keep, and it also helps in the recovery of TDS payments. Your taxes provide the government with a significant source of cash, which it invests in critical public programs and services. #UNDERSECTION234 #TDSPAYMENTS #ADVANCEDTAX Advance tax means Income tax should be paid in advance rather than in one lump sum at the end of the year. During the relevant Finance Year, the taxpayer must pay 15% of advance tax by 15th June, 45 percent of advance tax by 15th September, 75 percent of advance tax by 15th December, and 100 percent of advance tax by 15th March in four instalments. #INSTALLMENTS #INCOMETAX #TAXPAYERS #GST When your tax liability in a financial year exceeds Rs. 10,000, you must pay advance tax. You can pay your taxes on time if you prepare beforehand. However, under section 234B of the Income Tax Act, you would be fined in the form of interest if you miss or delay the payment. Similarly, you must pay fines under sections 234A and 234C. Here's a rundown of the three sorts of interest you might have to pay in case of default. Section 234A - Interest is charged for failure to furnish return of income Interest is charged at 1% per month or fraction of a month. For example, if the due date for filing a return of income is July 31, 2021, and the report of income is filed on January 9, 2022, it will be subject to interest under section 234A. #INCOME #RETURN #SECTION234 #INTEREST #INCOME #REPORT Section 234B - In the case that a taxpayer fails to pay advance tax Interest under this section is levied under two cases: When a taxpayer fails to pay the advance tax despite the fact that he has to do so. Or When the taxpayer's advance tax payment is less than 90% of the assessed tax. Section 234C - Interest on advance tax deferment Section 234C mandates the application of interest for failure to pay advance tax instalment(s), i.e., in the event of taxpayers (other than those who choose the presumptive taxation plan under sections 44AD or 44ADA), interest shall be imposed. #ADVANCEDTAXDEFERMENT #INSTALMENTS Advance tax paid by the 15th of June is less than 12% of the assessed tax. Advance tax paid by the 15th of September is less than 36% of the assessed tax. Advance tax paid by the 15th of December is less than 75% of the assessed tax. The Advance Tax paid on or before March 15th is less than 100% of the Assessed Tax. Section 234C imposes interest at 1% per month for three months if the first, second, and third instalments are not paid on time, and for one month if the last instalment is not paid on time. The author Sushant Gangurde is a legal analyst who aims to educate people about various tax laws and financial planning.

INTRODUCTION Enterprising means good at thinking of and doing new and difficult things, especially things that will make money. The definition of enterprising is a person who is full of energy and ambition showing initiative and willingness to undertake new SIX Attributes of Great Entrepreneurs Great entrepreneurs blend vision with execution. They have an ability to find backdoors. They're willing to work the long hours. They can either sell or build. They can reduce complicated data into something manageable and actionable. They are very effective with people. THREE Entrepreneurial Skills Inmates Perfect Meanwhile, having done this work over the years, I've been struck time and time again that starting a business is a great option for people who have been incarcerated, not only because their job options are limited, but because some former inmates offer hard-to-come-by traits that can help tremendously when starting a business. I've outlined them below. Fear of failure is much less of an issue. They are no strangers to risk. The stakes are high. ENTERPRISING INDIA The three Ds of disruption - Demographics, Deregulation and Digitisation - are perfectly aligned in India, which is thereby poised for an entrepreneurial leap. Demographics and the statistics behind demographics, including the income power being generated by demographics, is a very important D. Deregulation referred to the rapid pace at which the government has been removing speed breakers and helping improve ease of doing business. All the good ideas of federal government should cascade into the states, underscoring the spirit of cooperative federalism as espoused by the Modi government. The third element, which has been gradual in India, is digitisation, he said. The government's initiative on this front means India is ready for another quantum jump. "We have been ready to embrace digital in the past few months." There still is "the fear of the missing out" or the unknown in the system. Another factor that holds sway is SMAC, or social, mobility, analytics and cloud. Permanent transformational changes that are happening are basis frugal technologies (even in banking) in terms of diversity which is important. Machine learning, the unified payment interface (UPI), the government's Bharat Interface for Money (BHIM) app will all work toward creating frugality in payments that will help India make this leap, similar to that in mobile telephony. India built the best mobile system in the world. It works most of the time and this SMAC really needs to emerge and the sigma of that is India's quantum leap in digital transformation. YES Bank along with IBM and another tech partner announced the first fully digitised vendor financing platform in January. Mobility, analytics and the cloud are making for a powerful combination. The key to success is a mixture of competition and collaboration. ENERGISE FOR ENTERPRENEURSHIP: ALIGNS TOWARDS VISION NEW INDIA Recently when the prime minister of India announced his Startup Action Plan called Startup India, we lit up with excitement! The Indian government has made some really cool promises to give their startup industry a boost, and here are our top 5 picks: Registering your start-up in a day. Long were the days when someone who had to start up their company had to get more than 20 certificates. Now everything will be done through a mobile app by the means of filling up a small form. Many times getting a patent in India was a tedious task. Now there will be a fast track mechanism to get a patent for startups as well as 80% money back on the patent application just for startups! Many times startups were worried about paying their income taxes but from now on startups won't have to pay any income taxes for a period of three years. Exemptions on capital gains will be given to funds and individuals who fund startups. This means there will be more funding opportunities for startups. A fund of about 1.5 billion US Dollars is created to fund startups over a period of 4 years. SURVIVAL OF THE FITTTEST IN NEW AGE REFORMS: Professional opportunities for C.S The Company Secretary is a vital link between the company and its Board of Directors, shareholders, government and regulatory authorities. He ensures that Board procedures are both followed and regularly reviewed and provides guidance to Chairman and the Directors on their responsibilities under various laws. He commands high position in the value chain and acts as conscience seeker of the company. A Company Secretary being multidisciplinary professional renders services in following areas: CORPORATE GOVERNANCE AND SECRETARIAL SERVICES Advising on good governance practices and compliance of Corporate Governance norms as prescribed under various Corporate, Securities and Other Business Laws and regulations and guidelines made thereunder. Corporate Secretarial Services Promotion, formation and incorporation of companies and matters related therewith. Filing, registering any document including forms, returns and applications by and on behalf of the company as an authorized representative. Maintenance of secretarial records, statutory books and registers. Arranging board/general meetings and preparing minutes thereof. All work relating to shares and their transfer and transmission. CORPORATE LAWS ADVISORY AND REPRESENTATION SERVICES CORPORATE LAWS ADVISORY SERVICES Advising companies on Compliance of legal and procedural aspects, particularly under – SEBI Act, SCRA and rules and regulations made thereunder. Foreign Exchange Management Act. Consumer Protection Act. Depositories Act. Environment and Pollution Control Laws. Labour and Industrial Laws. Co-operative Societies Act. Mergers and Amalgamations and Strategic Alliances. Foreign Collaborations and Joint Ventures. Setting up subsidiaries abroad. Competition Policy and Anti Competitive Practices. IPR Protection, Management, Valuation and Audit. Drafting of Legal documents. Representation Services Representing on behalf of a company and other persons before- Company Law Board National Company Law Tribunal Competition Commission of India Securities Appellate Tribunal Registrar of Companies Consumer Forums Telecom Disputes Settlement and Appellate Tribunal Tax Authorities Other quasi-judicial bodies and Tribunals Arbitration and Conciliation Services Advising on arbitration, negotiation and conciliation in commercial disputes between the parties. Acting as arbitration/conciliator in domestic and international commercial disputes. Drafting Arbitration/Conciliation Agreement/Clause. FINANCIAL MARKETS SERVICES Public Issue, Listing and Securities Management Advisor/consultant in issue of shares and other securities. Preparation of Projects Reports and Feasibility Studies. Syndication of Loans from banks & financial institutions. Drafting of prospectus/offer for sale/letter of offer/other documents related to issue of securities. and obtaining various approvals in association with lead managers. Loan Documentation, registration of charges, status and search reports. Listing of securities/delisting of securities with recognized stock exchange. Private placement of shares and other securities. Buy-back of shares and other securities. Raising of funds from international markets – ADR/GDR/ECB. Takeover Code and Insider Trading Ensuring compliance of the Takeover Regulations and any other laws or rules as may be applicable in this regard. Acting as Compliance Officer and ensuring compliance with SEBI (Prohibition of insider Trading) Regulations, 1992 including maintenance of various documents. Securities Compliance and Certification Services Compliance with rules and regulations in the securities market particularly Internal Audit of Depository Participants. Certification under SEBI (DIP) Guidelines. Audit in relation to Reconciliation of shares. Certificate in respect of compliance of Private Limited and Unlisted Public Company (Buy Back Securities) Rules. FINANCE AND ACCOUNTING SERVICES Internal Audit Secretary to Audit Committee Working capital and liquidity management Determination of an appropriate capital structure Analysis of capital investment proposals Business valuations prior to mergers and/or acquisitions Loan syndication Budgetary controls Accounting and compilation of financial statements TAXATION SERVICES Advisory services to companies on tax management and tax planning under Income Tax, Excise and Customs Laws. Preparing/reviewing various returns and reports required for compliance with a the tax laws and regulations. Representing companies and other persons before the tax authorities and tribunals. INTERNATIONAL TRADE AND WTO SERVICES Advising on all matters related to IPRs and TRIPs Agreement of WTO. . Advising on matters relating to antidumping, subsidies and countervailing duties. International Commercial Arbitration. Advising on and issuing certificates on Exim Policy and Procedures. Advising on Intellectual Property licensing and drafting of Agreement. Acting as registered Trade Mark Agent. MANAGEMENT SERVICES General/Strategic Management Advising on Legal Structure of the organization Business policy strategy and planning Formulation of the organizational structure Acting as management representative to obtain ISO Certification Corporate Communications and Public Relations Communication with shareholders, stakeholders, Government and Regulators, Authorities, etc. Advisory services for Brand equity and image building. Human Resources Management Manpower planning and development Audit of the HR function Performance appraisal Motivation and remuneration strategies Industrial relations Office management, work studies and performance standards Advising on industrial and labour laws Information Technology Compliance with cyber laws. Conducting Board Meetings through video-conferencing and teleconferencing. Advising on software copyright and licensing. Development of management reports and controls. Maintenance of statutory records in electronic form. Sending notices to shareholders by electronic mode. Filing of forms/documents in electronic form with Registrar of Companies and other statutory authorities . OPPORTUNITIES FOR CS IN THE LATEST ACTS DECLARED BY THE GOVERNMENT OF INDIA (A) IN GST REGIME The famous American author and novelist Mark Twain once remarked "I was seldom able to see an opportunity until it had ceased to be one." These words are often encountered by professionals when a new opportunity surfaces but one is not able to entirely capitalize on it. However, here's an opportunity for the tax professionals to foresee an opportunity, get acclimatized and be well equipped at the right time. This opportunity manifests in the form of Goods and Service Tax (GST), which has been touted as the 'single most important tax reform after 1947'by the Late Hon'ble Finance Minister, Mr. Arun Jaitley. The introduction of GST had a magnanimous impact as each and every business get affected. The entire framework of indirect taxation changed ranging from the nature of levy, rate of taxes and administration of the taxes. Introduction of GST rationalized the tax content in product price, enhance the ability of business entities to compete globally, and possibly trickle down to benefit the ultimate consumer. GST is a crippling effect on the prices of all the goods and services in India. Amid this huge impact, lies an enormous opportunity for the tax professionals. Mapping existing scenario and GST impact assessment The first and foremost step in climbing the GST ladder would be mapping the 'as is' scenario of the Company. Modern business structures entail decentralized functions such as separate teams for procurement, distribution, marketing, accounting, taxation and so on. Therefore, it is essential to map the entire supply chain pattern of the Company and various taxes paid at each leg thereof. The implementation of GST resulted in widening of tax bases, differing rates for taxing goods and services and an extended set off mechanism, which has the potential to change the price of goods and services in India. Not only tax professionals like Chartered Accountants but also Company Secretaries can practice in the field of GST. The GST assessment also highlight key impact points of GST on various functions of the Company such as procurement, distribution, marketing, accounting and taxation functions. Advocacy The mapping of 'as is' scenario and GST impact assessment brought to light critical areas which is of a concern to the Company in the new regime vis-à-vis the old regime. The illustrative examples in this connection are outlined below: Rate under GST regime vis-à-vis concessional rate / exemption enjoyed in the erstwhile regime Impact of IGST on interstate movement of goods Continuation of tax incentives (Excise, VAT) under the new regime Inverted duty structure Transitional issues to ensure complete availability of balance credit for offset in the new regime. Professional's services are vital to help the Company to identify such issues, devise strategies to mitigate exposures and, if required, represent the concerns before the appropriate authority. Re-modelling Business Structures With the introduction of GST, the indirect tax rate structure is overhauled. GST is levied on supply vis-à-vis sale / manufacture. Given this, Companies have to necessarily evaluate their supply pattern (and frequency thereof) such as supply to warehouse, job work premises, return of goods etc. as the same come under the purview of GST. Supply chains therefore see a radical change. Sourcing, distribution and warehousing decisions which were used to plan based on state level tax rationalization mechanisms instead of operational efficiencies are reorganized to leverage efficiencies of scale, location and other factors relevant to the business. Location of the warehouse are more driven by the market forces of demand and supply. The above is only an illustrative area wherein business re-modelling can get effected. Therefore, all the existing models are require to be re-looked into, to fashion the most efficient business model. Professionals can assist in evaluation and streamlining logistics supply chain, largely from a tax perspective. Accounting and IT infrastructure Today's businesses involve rampant use of software (ERP, SAP, Tally) both by the industry and service providing tax professionals. With the advent of GST, drastic revamping of IT infrastructure would be required. With the knowledge of GST, tax professionals would be best suited to aid technicians in designing the software modules. Tax planning With a new law, comes a new set of tax / procedural issues and hence the professionals also need to evolve and devise new tax planning strategies. A great professional would be the one who foe sees the problems before the industry faces them and accordingly carve out strategies to avoid the bottlenecks. Any planning which mitigates tax cost would be most appreciated by clients. Under the GST regime, taxes are levied on destination base as compared origin base. Also, a new credit mechanism has been implemented. The business require to relook the existing transactional methodology to minimise taxation and hence require the services of professionals for the same. Advisory services The businesses would require regular services in areas such as determining place of supply, determining what is 'goods' and what is 'services', availability of credits and maintenance of records. Advisory services will also be required in dealing with unique issues such as inter-state supply of services (such a concept will be in play for the first time for service providers), inter-state supply of intangibles and valuation of branch transfers. There would be numerous transitional issues going into the new law such as treatment of existing stock and credit issues. Services will also be required in preparing Standard Operating Process ('SOP') for businesses under the new regime. All the aforesaid are unchartered territories and hence the industry will require professional advice in dealing with such vexed issues. Registration and procedural compliances The new industries will immediately require assistance in terms of registration under the new law, details and mechanics of records to be maintained. Needless to say regular services such as payment of taxes, filing of returns and audit-related services would continue. Though these services are generic in nature, clear understanding of the law / procedures would aid the professionals in providing effective and timely services to the clients. Litigation support As the new regime kicked in, litigation support will increasingly be required by the industry. Be it appearance before the Departmental officers, drafting (Replies, Appeals, Petitions) or appearance before higher forums, there is tremendous scope for tax professionals in the litigation space. (B) In INSOLVENCY PROFESSIONALS AND INSOLVENCY PROFESSIONAL AGENCIES INTRODUCTION The Insolvency and Bankruptcy Code, 2016 (IBC) is a welcome overhaul of the existing framework for resolving corporate and individual insolvencies and bankruptcies. After a public consultation process and recommendations from a joint committee of Parliament, both houses of Parliament passed the IBC in May 2016. Subsequently, a four-member Insolvency and Bankruptcy Board of India (IBBI) was constituted in October 2016 led by Dr. M.S. Sahoo as Chairman. The main activity of IBBI is to regulate the functioning of insolvency professionals, insolvency professional agencies and information utilities under the IBC. Post the passing of the bill, the Ministry of Corporate Affairs (MCA) has been notifying portions of the IBC selectively. The speed with which the government has moved on the implementation of IBC is creditworthy and unprecedented. The adjudicating authority is one of the key pillars on which the success of the IBC depends. Professional Opportunities for Management Professionals/ Chartered Accountants/ Company Secretaries/ Cost Accountants and Advocates under the Code Having perused the Code, I believe that the role of Management Professionals, Chartered Accountants, Company Secretaries, Cost Accountants and Advocates (collectively referred as "Professionals") has expanded significantly under the regime of the Code. Some of the professional avenues that have opened for the above enlisted Professionals under the Code are enlisted as under:- Insolvency Professionals Concept of Insolvency Professionals : Professionals can elect to become Insolvency Professionals (IP's). IP's are those licensed professionals that are authorised by Insolvency Professional Agencies (IPA's) which take up the roles of Interim Resolution Professional/ Resolution Professional/Liquidator/Bankruptcy Trustee in the insolvency resolution process of different entities as have been envisaged under the Code. Insolvency Professional Agencies (IPA's) are those specialized bodies that are statutorily authorised to execute the task of registration and governance of Insolvency Professionals. Eligibility Criteria for enrolling as an IP, Process of Registration and Concept of Registration for a Limited Period In order to be eligible for registration as an Insolvency Professional according to the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 ("Regulations") , a Professional has to fulfill the following criteria:- Register with an IPA. Appear for and clear the Limited Insolvency Examination ("LIE") or the National Insolvency Examination ("NIE"). Have a work experience of fifteen years as a management professional after having received a bachelor's degree from a university established or recognized by law. Have a work experience of ten years post enrollment as Professionals. It is important note that Professionals that appears for and clears the LIE needs to have 10 years of work experience post enrollment (or 15 years post qualification work experience in case of management professionals). In other words, the work experience requirement has been prescribed is only for the LIE and not the NIE. The Regulations do not prescribe any work experience requirement with respect to the NIE. ROLE OF THE INSOLVENCY PROFESSIONAL 1. INTERIM RESOLUTION PROFESSIONAL Collect information Collate claims of creditors Monitor assets and operations Control and keep custody of all assets Manage firm as a going concern Constitute a Committee of Creditors 2. RESOLUTION PROFESSIONAL Conduct of the committee of creditors Determines vote share in meetings Protect and preserve assets Act on behalf of the debtor in any legal proceedings Raise interim finance Prepare the information memorandum Application for avoidance transactions 3. LIQUIDATOR Consolidates, verifies, admits or rejects and values claims Protects and preserves assets Acts on behalf of the debtor Power to settle/institute legal proceedings Investigates into undervalued/preferential/extortionate transactions Fiduciary trustee of the liquidation trust (C) In National Company Law Tribunal (NCLT) The Ministry of Corporate Affairs (MCA) had notified the much-awaited sections in the Companies Act (CA), 2013 dealing with amalgamation, compromise, arrangement, liquidation and winding up w.e.f 15th December, 2016. Going forward, the National Company Law Tribunal (NCLT) is having jurisdiction over these matters now, which were within the jurisdiction of the High Court (HC) before. NCLT has been setup as a specialized body to deal with Company Law matters. The National Company Law Tribunal (NCLT) was constituted on June 1, 2016 under Section 408 of the Company's Act, 2013. IBC proclaims NCLT to be the single adjudicating authority for all corporate default cases. This leaves NCLT with the challenging task of resolving approximately 10,000 pending corporate cases. POWER OF NCLT The National Company Law Tribunal has the power under the Companies Act to adjudicate proceedings: Initiated before the Company Law Boardunder the previous act (the Companies Act 1956); Pending before the Board for Industrial and Financial Reconstruction, including those pending under the Sick Industrial Companies (Special Provisions) Act, 1985; Pending before the Appellate Authority for Industrial and Financial Reconstruction; and Pertaining to claims of oppression and mismanagement of a company, winding up of companies and all other powers prescribed under the Companies Act. RECOMMENDATIONS Even though most of the respondents have had several undesirable and unsatisfactory experiences with the Indian judicial system in the past, all are acutely aware of the importance of the IBC and NCLT and its success. Highlighted below are some of the key recommendations based on our discussions with the respondents: Staff legal and administrative personnel (U.S. Trustee or U.K. HMCTS-like structure) Stakeholder awareness Restrict case load at NCLT Ensure adequate bench strength Build expertise over time Consistent procedures with maximum digitization Framework for Infrastructure Maintenance Ensure continuous monitoring (D) In Real Estate (Regulation and Development) Act, 2016 (RERA) The Real Estate (Regulation and Development) Act, 2016 ("Act") was passed by the Rajya Sabha on 10th March 2016 and by the Lok Sabha on 15th March 2016. The Act came into force on 1st May 2016 with 59 of 92 sections notified. Remaining provisions came into force on 1st May 2017. It extends to the whole of India except the State of Jammu and Kashmir. The Central and state governments are liable to notify the Rules under the Act within a statutory period of six months w.e.f May, 2016. REGISTRATION The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution. For ongoing projects which have not received completion certificate on the date of commencement of the Act, will have to seek registration within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id, and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years' imprisonment may be imposed. Real estate agents who facilitate selling or purchase of properties must take prior registration. Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by the agent in every sale facilitated by him. PROTECTION OF BUYERS The Act prohibits unaccounted money from being pumped into the sector and as of now 70 per cent of the money has to be deposited in bank accounts through cheques is now compulsory. A major benefit for consumers included in the Act is that builders will have to quote prices based on carpet area not super built-up area, while carpet area has been clearly defined in the Act to include usable spaces like kitchen and toilets. Under RERA, its mandatory for the builders to disclose the carpet area. REAL ESTATE REGULATORY AUTHORITY AND APPELLATE TRIBUNAL It will help to establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover. Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities to dispose of complaints in 60 days while no time-frame was indicated in earlier Bill. Scrutinizing the Act, the Act as has been projected seems like angel legislation aimed at consumer protection and at bettering the flow of finances through Indian financial institutions and vide FDI, by regulation of the real estate sector by establishing a governing body. CONCLUSION With the new laws, comes a new set of issues and in comes newer opportunities. However, it is rightly said that opportunity dances with those who are ready on the dance floor. So the key to seizing the opportunities would largely depend on being well prepared before the advent. This can be best understood from the words of Abraham Lincoln – "Give me six hours to chop down a tree and I will spend the first four sharpening the axe".