MCA Updates

Requirement criteria for completion of online proficiency test for IDs – revised

MCA vide Notification dated 19.08.2021 has exempted following persons who are willing to be appointed as IDs from the requirement to complete the online proficiency test:

  • Advocates (in Court practice), Chartered Accountants, Company Secretaries and Cost Accountants, who have been in practice for at least 10 years.
  • Candidates in the pay scale of Director or equivalent or above in any Ministry or Department, of the Central / State Government with experience of not less than 3 years in handling commerce, corporate affairs, finance, industry or public enterprises; or the affairs related to Government companies or statutory corporations set up under an Act of Parliament or any State Act and carrying on commercial activities.

Open Notification No. G.S.R. 579(E) dtd. 19.08.2021

Annual Report on Capacity Building of Independent Director

MCA vide notification dated 19.08.2021 has amended the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019. Pursuant to the amendment the Indian Institute of Corporate Affairs shall within the 60 days from the end of every Financial Year send an Annual Report i.e the Annual Report on Capacity Building of Independent Director to every individual registered as an Independent Director and every company in which such individual holds directorship as an ID.

The format for the Annual Report has also been specified in the Notification.


Open Notification No. G.S.R. 580(E) dtd. 19.08.2021

FAQs on CSR

As part of Circular dated 25.08.2021, MCA has published Frequently Asked Questions on CSR. These FAQs include the amendments notified on 22.01.2021. The FAQs are split into sections with following headings:

  1. Applicability of CSR
  2. CSR Framework
  3. CSR Expenditure
  4. CSR Activities
  5. CSR Implementation
  6. Ongoing Projects
  7. Treatment of unspent CSR amount
  8. CSR enforcement
  9. Impact Assessment
  10. CSR Reporting and Disclosure

While the industry experts and stakeholders are still analysing and adapting to the regime change in CSR, the FAQs released by MCA might help provide some clarity!


Open FAQs
SEBI Update

Disclosure of shareholding pattern of promoter(s) and promoter group entities

SEBI vide Circular dated 13.08.2021 has notified new formats for Disclosure of shareholding pattern by the promoters and promoter group entities. Earlier the promoters and promoter group entities disclosed their collective shareholding in the format notified by SEBI in Circular dated 07.08.2018. The new format released by SEBI vide Circular dated 13.08.2021 requires the promoters and promoter group entities to disclose their shareholding pattern individually. The revised format for the disclosure has also been notified as an annexure to the Circular.


Open Notification No. SEBI/HO/CFD/CMD/CIR/P/2021/616. dtd. 13.08.2021
IT Updates

The Taxation Laws (Amendment) Act, 2021

The Central Government has notified the Taxation Law Amendments Act, 2021 dated 13.08.2021 to repeal the contentious retrospective tax brought in by Finance Act, 2012. The Act amended the Income Tax Act, 1961 so as to provide that no tax demand shall be raised in future on the basis of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before 28th May 2012.

Key features of the Taxation Laws (Amendment) Act, 2021:

  1. Provides that no tax demand shall be raised in the future based on the retrospective amendment made through Finance Act, 2012, for any indirect transfer of Indian assets if the transaction was undertaken before 28th May 2012.

  2. Provides that the demand raised for indirect transfer of Indian assets made before 28th May 2012, shall be nullified on fulfilment of specified conditions and on furnishing of an undertaking.

  3. Provides to refund the amount paid in these cases without any interest thereon.

  4. Amends the Finance Act, 2012 so as to provide that the validation of demand, etc, under section 119 of the Finance Act, 2012 shall cease to apply on fulfilment of specified conditions and on furnishing of an undertaking.

  5. Empowers CBDT to make rules to provide the form and manner in which an undertaking shall be submitted.

Open the Amendment Act

Income-tax (24th Amendment) Rules, 2021

CBDT notifies Rules prescribing ‘any other person’ who shall verify income-tax returns as per section 140(c) and clause (cd) of the proviso to section 140(c) the Income-tax Act, 1961 (“Act”) and who shall be treated as authorised representative before any income-tax authority as per section 288(2) in case of a company and a Limited Liability Partnership (LLP). For this purpose, two new Rules have been inserted in the Income-tax Rules, 1962.

  • Rule 12AA is notified to prescribe person for the purposes of clause (c) and clause (cd) of section 140 – Insolvency Professional/Resolution Professional/Liquidator appointed by Adjudicating Authority under IBC

  • Rule 51B prescribing appearance by Authorised Representatives in certain cases – IP / RP / Liquidator appointed by Adjudicating Authority under the IBC who has admitted the Resolution Process.

Open the Notification No. G.S.R. 578(E) dtd. 18.08.2021