Dear Friends Last issue was a colourful pink but this time I am happy to showcase this beautiful, sublime piece of mandala art by yet another team member of mine Ms. Trupti Hegde. Away from the hustle & bustle of Bangalore (now a fear-gripped city of exodus), she must be finding it peaceful to let her imagination flow either from the lush fields or the mountain tops of her village as she dabs at the free-hand geometric designs. The perfect curves, bends, lines & spacing in Black & White seem to reflect the universal truth of duality – of Life & Death, Sorrow & Joy, Growth & Decline, Light & Darkness, In & Out, This (Iha) & That (Para), Yin & Yang !! Resonating with my thoughts above is this Strange but True contrast of life that I came across recently ✤ Inspite of so many Colours – Black & White is considered Class ✤ Inspite of so many Voices – Silence is considered Ultimate ✤ Inspite of so much to Eat – Fasting is considered Healthy ✤ Inspite of so much to Travel – Meditation is considered Superior ✤ Inspite of so much to See – Looking within is Apex ✤ Inspite of so much to Hear – Voice from inside you is Eternal ✤ Inspite of a sweet Life – A peaceful soul is Solace & Divine We hear of so many precious lives lost to COVID, lost on the frontiers so that we can live ours, lost to hunger & poverty, lost to melancholy and many more reasons. Yet amidst this gloom and despair, I would like to share (with her permission) this beautiful tribute to my late, dear friend Jayakrishnan Pillai penned by his wife Cini, affirming that there is hope, there is life, there is the glow of stars. Solace in the Stars The Sun went off in a moment, so abrupt Off went the colours, and the light and the warmth The world turned grey, cold and numb I was thrown into darkness, hitherto unknown Sad, angry, distressed, lost Unable to fathom the length or the depth Groping the infinite, the abysmal space Uncertain if there is a way beyond.. And then, I saw them, the shiny little stars, Lighting up my sky, in many different hues A warm orange glow, a soothing blue, An energising green, a cheering yellow Wrapping me in a cocoon of warmth Nudging me ahead, life has to move on.. My Sun, you are irreplaceable You will be missed, ever so dearly In every moment, every breath And as I tread this path we wove with our dreams I do want to let you know I have these stars keeping me company, Lighting my life , each in its own way!! We had goosebumps as we heard Cini read this out aloud, bravely to us, a group of Jay’s friends. We were left speechless and numb as I am now, unable to write anything further. But as she says Life must go on…..So must my writing and your reading… The month to month extension in time for certain regulatory filings continues which are carried in this 240th issue of Samhita. Apart from this MCA, SEBI, RBI, GST & IT related changes are highlighted. Let’s Excel in English focusses on a simple phrase ‘Go to home ?’ or ‘Go Home ?’ where Balaji, our English language expert drives home the correct usage of grammar through practical examples. For any previous issues of Samhita and the readers’ feedback, please visit https://sharadasc.wpengine.com/resource-center/. Happy Reading MCA Updates : Strike off of Government Co.- Indemnity Bond Currently, as per Rule 4 of the Companies (Removal of name from the Register of Companies) Rules, 2016, an application for strike off should be accompanied by an indemnity bond duly notarised and signed by all directors of the company. A proviso has been added to the Rule according to which, for a company wholly owned by the Central / State Government and subsidiary of a wholly owned Government Company, the Indemnity Bond should be issued by an authorised person not below the rank of an Under Secretary / equivalent in the administrative Ministry or Department of the Government of India or the State Government. A new Form STK-3A (Indemnity Bond) has been introduced for the same. Open Notification dtd. 29.06.2020 Extension of names reserved and resubmission of forms MCA has further extended the time (for the 3rd time during lockdown) for forms filed by LLPs and Companies for name reservation and name change for the period 15.03.2020-31.07.2020 – i.e. 20 days for name reservation and 60 days for name change. Why ‘go home’ and not, ‘go to home’? You don’t need a preposition when you say “go home” but you do if you say “go to my home”. This is because when you say “go home”, home is not a noun, but an adverb (an “adverb of place”). Prepositions (“to”) don’t go before adverbs. Other words that are adverbs of place include: compass directions (go west, go east) downstairs / upstairs somewhere outside abroad there So for “home”, if you said “my home” it would be “go to my home”, because then “home” becomes a noun. “Home” is kind of a strange word in English in that it can be a noun or an adverb or an adjective or a verb depending on usage. My home is blue: noun She went home: adverb The pound homes many dogs: verb (but kind of awkward sounding) He hit a home run: adjective Balaji Ramaswamy N Mobile: 9741393539 Facebook

Particulars Extended due date New company incorporation – SPICe+ Part B needs to be filed within 20 days of name reservation. Names expiring any day between 15.03.2020 and 31.07.2020 would be extended by 20 days beyond 31.07.2020 INC-24 (for change of name of Company) needs to be filed within 60 days of name reservation. Names expiring any day between 15.03.2020 and 31.07.2020 would be extended by 60 days beyond 31.07.2020. New LLP registration and change of name- FiLLiP / Form 5 needs to be filed within 90 days of name reservation. Names expiring any day between 15.03.2020 and 31.07.2020 would be extended by 20 days beyond 31.07.2020 Extension of RSUB validity for companies and LLPs. SRNs where last date of Resubmission (RSUB) falls between 15.03.2020 and 31.07.2020, additional 15 days beyond 30.06.2020 would be allowed. However, for SRNs already marked under NTBR, extension would be provided on case to case basis. Extension w.r.t Form IEPF-5 (Refund from IEPF authority) SRNs having last date of filing of eVerification Report (for both Normal as well as Re-submission filing) between 15.03.2020 and 31.07.2020, stands extended till 30.09.2020. For SRNs already marked under ‘Pending for Rejection’ extension would be provided on case to case basis. Open details Amendments to Schedule VII – CSR contribution Contributions to Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows shall treated as valid CSR contribution under Schedule VII of the Act w.e.f. 23.06.2020. Open Notification No. G.S.R. 399(E). dtd. 23.06.2020 Extension of due date – Form NFRA-2 The due date for filing Form NFRA-2 for FY 2018-19 has been extended up to 270 days from deployment of the Form on MCA website. Open Circular No. 26/2020 dtd. 06.07.2020 IBBI updates : Amendment to IBBI (IP) Regulations, 2016 – IPE objective Earlier, amongst other conditions, for a company / LLP / registered partnership to be recognised as a IP entity its sole objective must be to provide support services to IPs, who are its partners or directors. The words “who are its partners or directors” have been removed vide Notification dated 30.06.2020. Therefore now, an IP entity’s sole objective is to provide support services to IPs. Open Notification No. No. IBBI/2020-21/GN/REG061 dtd. 30.06.2020

RBI updates : RBI aligns with SEBI for finalisation of B/S by NBFCs Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 require NBFCs to finalise their balance sheet within 3 months from the date to which it pertains. SEBI has extended the time by 30 days from the due date – whether for quarterly or half yearly financial results. Now RBI vide Notification dates 06.07.2020 has aligned the due date for listed NBFCs with SEBI’s extension. Open Notification No. RBI/2020-2021/11 dtd. 06.07.2020 AIFs to replace VCFs in Master Direction on Exemptions Venture Capital Fund Companies which are AIFs holding a certificate of registration from SEBI and not accepting or holding public deposit have been exempted from having to comply with the requirements of creating and maintaining a reserve fund u/s 45-IC and the requirement of registration and net owned fund u/s 45-IA of RBI, Act. The words VCF Companies have been replaced by AIFs (Master Directions on Exemptions from RBI Act) owing to repeal of Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996. Open Notification No. RBI/2020-21/12 dtd. 10.07.2020 SEBI updates : RTA – “collecting agent” of stamp duty on issue, transfer & sale of units of AIFs W.e.f. 01.07.2020, RTAs appointed by AIFs should collect stamp duty on issue, transfer and sale of units of AIFs done on a recognised stock exchange or through off market transfers / over the counter transactions through a depository. Where RTAs have not been appointed, an RTA should be appointed on / before 15.07.2020 to enable collection of stamp duty as mentioned above. For the time period between 01.07.2020 & the date when the RTA is appointed, the stamp duty amount shall be kept in a designated bank account and the same is to be transferred to the RTA on appointment. Open Circular No. SEBI/HO/IMD/DF6/CIR/P/2020/113 dtd. 30.06.2020

GST Updates : Nil return in Form GSTR-3B can be filed via SMS W.e.f. o1.07.2020, SMS services using the registered mobile number is recognised as electronic mode for filing Nil return in Form GSTR-3B and for Nil details of outward supplies in Form GSTR-1. Open Notification No. 58 /2020 dtd 01.07.2020 Late fee capped at Rs.500 for delayed filing of Form GSTR 3B As a major relief to the GST taxpayers, the government has decided to cap the maximum late fee for Form GSTR-3B at Rs.500/- per return for the tax period July, 2017 to July, 2020, so long as the filing is completed before 30.09.2020. No late fees shall be payable if there is no tax liability. Open Notification No: 57/2020 dtd 30.06.2020 Due date for GST refund – extended for period 20.03.2020 – 30.08.2020 Section 54(7) of CGST Act provides that final order in GST refund shall be issued within 60 days from the date of receipt of application complete in all respects. However, considering the pandemic CBIC has notified that, if GST refund order date falls between 20.03.2020 and 30.08.2020 the refund order can be issued within 75 days (i.e. 60 + 15 Days) of receipt of reply of notice 31.08.2020, whichever is later. Open Notification No: 56/2020 dtd 27.06.2020 IT updates : Introduction of Rule 11UAD – unquoted shares Any sum of money or property received by a person for consideration other than cash or for reduced consideration is chargeable under “Income from other sources” u/s 56(2) (x) of Income tax Act, 1961. The Finance Act, 2019 introduced new clause to the Section empowering CBDT to notify certain classes of registered persons for whom such transactions shall be exempted from the tax liability. Subsequently, CBDT has introduced Rule 11UAC. Section 50CA provides that in case of transfer of shares of a company other than quoted shares, the fair market value (FMV) of such shares determined in the prescribed manner shall be deemed to be the full value of consideration (if consideration is less than the FMV) for the purpose of computing income chargeable to tax as capital gains. The Finance Act, 2019 also introduced a new proviso that Section 50CA shall not apply to any consideration received or accruing as a result of transfer by such class of persons and subject to such conditions as may be prescribed Recently, CBDT has issued Notifications prescribing certain classes of persons for non-applicability of Section 56(2)(x) and Section 50CA. CBDT amended Rule 11UAC [relating to Section 56(2)(x)]and introduced a new Rule 11UAD [relating to Section 50CA]. As per the amended/new Rule, these provisions shall not apply to: Any movable property, being unquoted shares, of a company and its subsidiary and the subsidiary of such subsidiary received by a shareholder / transferred by a taxpayer, where, Any movable property, being unquoted shares, of a company and its subsidiary and the subsidiary of such subsidiary received by a shareholder / transferred by a taxpayer, where, The National Company Law Tribunal, on an application moved by the Central Government under Section 241 of the Companies Act, 2013, has suspended the Board of Directors of such company and has appointed new directors nominated by the Central Government under Section 242 of the Companies Act, 2013; and Share of company and its subsidiary and the subsidiary of such subsidiary has been received pursuant to a resolution plan approved by the Tribunal under Section 242 of the Companies Act, 2013 after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner. Further Section 56(2)(x) shall not apply to any movable property, being equity shares, of the reconstructed bank, received by the investor or the investor bank, where such shares have been allotted by the reconstructed bank under the scheme at a price specified in the scheme. Open Notification No: G.S.R. 423(E) dated 30.06.2020 Perquisites & allowances – Section 115BAC Taxpayers who are opting for the new tax regime (section 115BAC) can claim exemption for allowance to meet cost of travel and daily expenses on transfer, tour allowance for travel for official purposes to meet the travel and daily expenses, and conveyance allowance for meeting conveyance expenditure incurred in course of performing official duties. Open Notification No: 38/2020 dtd 26.06.2020 Amendments to TDS Rules After introducing new TDS rates for high-value cash withdrawals from banks, IT department has now amended TDS rules further to tighten the loop and seek more disclosures. Amendments to Rule 31A – furnishing of ‘Statement of TDS’ under section 200(3) are: Before Amendment After Amendment Deductor shall furnish particulars of amount paid or credited on which tax was not deducted Deductor shall furnish particulars of amount paid or credited on which tax was not deducted or deducted at a lower rate Deductor shall furnish particulars of amount paid or credited on which tax was not deducted in view of the exemption provided u/s 194N Deductor shall furnish particulars of amount paid or credited on which tax was not deducted or deducted at lower rate in view of the exemption provided u/s 194N New clauses have been inserted in Rule 31A(4) to bring about similar changes in the Rule. Open Notification No: G.S.R. 429(E).dtd 04.07.2020