There are a number of amendments to the Companies Act, 2013 that are applicable from April 1, 2021. Some of the key amendments include:

• Mandatory registration of NGOs with MCA for raising CSR funds. Every entity that intends to undertake any CSR activity must register itself with the Central Government by filing the form CSR-1 electronically with the Registrar.
• Reduction in the minimum offer period for right offers from 15 days to 7 days. This is to facilitate faster capital raising by companies.
• Introduction of an abridged annual return for OPCs and small companies. This will reduce the compliance burden on these companies.
• Increase in the penalty for non-compliance with the Companies Act from Rs. 1000 to Rs.1 lakh. This is to deter violations of the law.
• Introduction of new provisions for data protection and privacy. These provisions are aimed at protecting the personal data of individuals.
• Amendments to the provisions related to mergers and acquisitions. These amendments are aimed at simplifying and streamlining the M&A process.

These are just some of the key amendments to the Companies under income tax act , 2013 that are applicable from April 1, 2021. Companies should familiarize themselves with these amendments in order to comply with the law.

In addition to the above, here are some other amendments that are applicable from April 1, 2021:

• Increase in the maximum number of members in a One Person Company (OPC) from 10 to 20.
• Allowing NRIs to incorporate OPCs.
• Relaxation of the requirement for filing annual returns and financial statements for small companies.
• Introduction of new provisions for corporate social responsibility (CSR).
• Amendments to the provisions related to independent directors.

EXAMPLES APPLICABLE FOR APRIL1,2021

• The Companies Act, 2013: The Ministry of Corporate Affairs (MCA) notified ten amendments to the Companies Act, 2013, which came into effect from April 1, 2021. These amendments included changes to the definition of a listed company, the mandatory registration of NGOs with the MCA for raising CSR funds, and the reduction in the minimum offer period for right offers.
• The Income Tax Act, 1961: The Finance Act, 2021, introduced several amendments to the Income Tax Act, 1961, which came into effect from April 1, 2021. These amendments included changes to the tax rates, the introduction of a new surcharge for the purposes of health and education, and the exemption of income from the Agni veer Corpus Fund from income tax.
• The GST Act, 2017: The Central Government notified several amendments to the GST Act, 2017, which came into effect from April 1, 2021. These amendments included changes to the definition of an outward supply, the introduction of a new reverse charge mechanism for certain services, and the reduction in the rate of GST on certain goods and services.
• The Labour Laws (Exemption from application to certain establishments in Special Economic Zones) Amendment Act, 2020: This Act exempted certain establishments in special economic zones (SEZs) from the application of certain labour laws, such as the Factories Act, 1948, and the Payment of Wages Act, 1936. The exemption came into effect from April 1, 2021.
• The Motor Vehicles Act, 1988: The Central Government notified several amendments to the Motor Vehicles under income tax act, 1988, which came into effect from April 1, 2021. These amendments included changes to the penalties for traffic violations, the introduction of a new driving license format, and the requirement for all vehicles to be fitted with speed governors.

FAQ QUESTIONS APPLICABLE FOR APRIL1,2021

• What are the changes to the standard deduction under income tax act?

The standard deduction has been increased from Rs.50,000 to Rs.75,000 for individuals and HUFs. This means that taxpayers can deduct this amount from their gross income before calculating their taxable income.

What are the changes to the surcharge and cess under Income Tax Act?

A surcharge of 10% is levied on the income tax payable by individuals and HUFs with taxable income above Rs.50 lakhs. A cess of 4% is levied on the income tax payable by all taxpayers.

• What are the changes to the deduction for medical expenses under Income Tax Act?

The deduction for medical expenses has been increased from Rs. 60,000 to Rs. 1.5 lakhs. This deduction is available for expenses incurred on the treatment of self, spouse, children, parents, and dependents.

• What are the changes to the deduction for home loan interest under Income Tax Act?
• The deduction for home loan interest has been increased from Rs.2 lakhs to Rs.3 lakhs. This deduction is available for interest payments on a home loan taken for the purchase or construction of a residential house.

• What are the changes to the deduction for education expenses under Income Tax Act?

The deduction for education expenses has been increased from Rs.1000 to Rs.50,000. This deduction is available for expenses incurred on the education of self, spouse, children, and dependents.

These are just some of the changes to the Income Tax Act that came into effect from April 1, 2021. For more information, please refer to Income Tax Act or consult with a tax advisor.

CASE LAWS APPLICABLE FOR APRIL1,2021

• Mahindra and Mahindra Financial Services Limited Vs DCIT (ITAT Delhi): The Delhi ITAT held that the amendment to section 36(1)(VA) and 43B of the Income Tax Act, 2016, which was introduced by the Finance Act, 2021, is prospective in nature and not retrospective. This means that the amendment will only apply to payments made on or after April 1, 2021.
• ITO Vs. CIT: The Supreme Court held that the Income Tax Officer (ITO) cannot initiate reassessment proceedings beyond the period of four years from the end of the assessment year. This means that the ITO cannot initiate reassessment proceedings for the assessment year 2013-14 or 2014-15 if they were not initiated before April 1, 2021.
• CIT Vs. Vodafone India Services Pt. Ltd.: The Supreme Court held that the definition of “virtual digital asset” under the Income Tax Act, 2016, includes Bitcoin and other cryptocurrencies. This means that gains arising from the transfer of Bitcoin and other cryptocurrencies are taxable under the Income Tax Act.
• CIT Vs. Infosys Foundation: The Supreme Court held that trusts and institutions that are registered under section 12A of the Income Tax Act are not liable to pay income tax on their income. This means that trusts and institutions that are registered under section 12A will not have to pay income tax on their income, even if they derive income from commercial activities.
• CIT Vs. HDFC Bank Ltd.: The Supreme Court held that the interest income earned by banks on non-convertible debentures issued by companies is taxable under the head “Income from other sources”. This means that banks will have to pay income tax on the interest income they earn on non-convertible debentures issued by companies.