News Summary

MCA Updates

Applicability of higher additional fee

Vide notification dated 11.01.2022, MCA notified the effective date for the third proviso added to Section 403(1) vide the Companies (Amendment) Act, 2017, which prescribed the applicability of higher additional fee in case of default in filing of forms in 2 or more occasions and the applicability of higher additional fee in case of 2 or more defaults pursuant to the Companies (Amendment) Act, 2020, as 01.07.2022.

Open Notification No. S.O. 147(E) dtd. 11.01.2022

Open Notification No. S.O. 148(E) dtd. 11.01.2022

Higher additional fees for delayed filing of Forms w.e.f. 01.07.2022

MCA vide notification dated 11.01.2022, notified the Companies (Registration Offices and Fees) Amendment Rules, 2022 (“Amendment Rules”). These rules provide for a ‘Higher Additional fee’ applicable for belated filing of forms with a few exceptions. These Rules shall come into force on 01.07.2022. Highlights of the Amendment Rules are as follows:

  • The higher additional fees shall not apply to belated filing of forms required to be filed for increase in nominal share capital, forms required to be filed pursuant to Sections 92 (Annual Return) & 137 (Financial statements) of Companies Act, 2013 and charge forms.
  • The prescribed higher additional fees are as follows:
  • Sl. No

    Period of Delay

    Higher additional fees (as multiples of normal filing fee)


    More than 15 days and upto 30 days(Forms for appointment of Auditor u/s 139 (Form ADT-1) and intimation to Registrar of DIN of directors u/s 157 (Form DIR-3C)

    3 times

    Remaining Forms:


    Upto 30 days

    3 times


    More than 30 days and upto 60 days

    6 times


    More than 60 days and upto 90 days

    9 times


    More than 90 days and upto 180 days

    15 times


    More than 180 days

    18 times

  • The higher additional fees shall be applicable to belated filing of e-Form INC 22 (Notice of situation or change of situation of registered office) and e-Form PAS-3 (Return of Allotment) where there is a delay in filing in 2 or more occasions within a period of 365 days from last delayed filing.
  • Wherever higher additional fee is applicable, additional fee which is otherwise applicable shall not be charged.
  • Forms PAS-3 and INC-22 filed prior to 01.07.2022 shall not be considered for the higher additional fee criteria.
Open Notification No. G.S.R. 12(E) dtd 11.01.2022

SEBI Updates

Formats for RPT disclosures for high value debt listed entities

SEBI vide circular dated 09.11.2021 mandated listed entities that have listed specified securities to submit to the stock exchanges disclosure of Related Party Transactions (RPTs) in the format specified by the Board from time to time. SEBI notified the applicable disclosure obligations vide Circular dated 22.11.2021.

Vide Circular dated 07.01.2022, SEBI has clarified that the disclosure obligations specified in the Circular dated 22.11.2021 shall also be applicable to high value debt listed entities with immediate effect.

Open Circular No. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/0000000006 dtd. 07.01.2022

Compliance Certificate under ICDR can be issued by Practicing CS

Vide Notification dated 14.01.2022, SEBI notified the SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2022 which further amended the ICDR Regulations. The amendment brought about recognition to Practicing Company Secretaries as a competent authority to issue Compliance Certificate (pursuant to Regulation 163) certifying that the proposed preferential issue is in accordance with the requirements of ICDR Regulations.

Open Amendment Regulations dtd.14.01.2022

Amendments to LODR Regulations

SEBI has notified the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2022 vide notification dated 24.01.2022 which has further amended the LODR Regulations, 2015.

Highlights of the amendment are as follows:

  • Shareholders’ approval for appointment of Manager – Approval of the shareholders is now required for the appointment of Manager. The approval needs to be taken in the next General Meeting or within 3 months from date of appointment, whichever is earlier.
  • Appointment / reappointment of MD, WTD, Manager – appointment or re-appointment of a Managing Director or a Whole-Time Director or a Manager, whose appointment / reappointment was earlier rejected by the shareholders at a general meeting, will require prior approval of shareholders. The Explanatory statement to notice for approval of such appointment or reappointment shall consist of detailed explanation and justification from the NRC and the Board.
  • Statement by monitoring agency – to be submitted quarterly as against earlier requirement of annual basis.
  • Transfer and transmission requests– processed only for securities held in Dematerialised form.

Open Amended Regulations

DGFT Updates

De-activation of IECs not updated

All IEC holders were required to update their details online on the DGFT Portal every year during the April – June quarter. On requests made, the period for updating details was extended till 31.08.2021. Any IECs not updated post this date were intimated to be de-activated in a phased manner by DGFT.

Vide Trade Notice dated 14.01.2022, DGFT has intimated that all IECs which have not been updated after 01.07.2020 shall be de-activated with effect from 01.02.2022. The list of such IECs to be de-activated IECs is available on the Portal. The concerned IEC holders have been provided an opportunity to update their IEC in this interim period till 31.01.2022, failing which the given IECs shall be de-activated from 01.02.2022.

IECs so de-activated may be re-activated by updating the details online on the DGFT Portal.

Open Trade Notice No. 31/2021-22 dtd. 14.01.2022

IT Updates

Computation of Capital Gains under section 45(1B) of Income Tax Act related to ULIP

Vide notification dated 18.02.2022, CBDT has inserted Rule 8AD in the Income-Tax Rules 1962 which contains provisions for computation of Capital Gains under section 45(1B) of Income Tax Act related to ULIP which is not exempt under Section 10(10D).

8AD Computation of capital gains for the purposes of sub-section (1B) of section 45- (1) Where any person receives at any time during any previous year any amount under a specified unit linked insurance policy, including the amount allocated by way of bonus on such policy, then,

  • Amount received for the first time:

    Capital gain =Amount received for the first time including bonus MINUS aggregate premium paid till date of such receipt

  • Amount received after above period:

    Capital Gain = Amount received after period specified in (i) above including by way of bonus MINUS the aggregate of premium paid until receipt of amount under (ii) as reduced by any by the premium that has already been considered for calculation of taxable amount under this sub-rule during the earlier previous year or years.

The capital gains as computed under clause (i) or clause (ii) of sub-rule (1) shall be deemed to be the capital gains arising from the transfer of a unit of an equity oriented fund set up under a scheme of an insurance company comprising unit linked insurance policies.

Open CBDT Notification No. 8/2022 dtd 18.01.2022

E-advance rulings by Board for Advance Rulings

The Board for Advance Rulings shall pronounce e-advance rulings of applications allocated or transferred to it in accordance with the provisions of this Scheme. The Board for Advance Rulings shall have such other income-tax Authority, ministerial staff, executive or consultant to assist the members of the Board for Advance Rulings, as considered necessary by the Central Board of Direct Taxes.

Please refer to Notification for detailed procedure.

Open CBDT Notification No. 07/2022 dtd 18.01.2022