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INCOME TAX AMENDMENT RULES [Notification No. 28/2022/F. No. 370142/4/2022-TPL]



[Notification No. 28/2022/F. No. 370142/4/2022-TPL] 


CBDT has amended the following rules in In exercise of the powers conferred by clause (48) of section 2 and clause (47) of section 10 read with section 295 of the Income-tax Act, 1961 (43 of 1961),

1) These rules may be called the Income-tax (8th Amendment) Rules, 2022.

(2) They shall come into force from the date of their publication in the Official Gazette.

  1. In the Income-tax Rules, 1962 (hereafter referred to as the principal rules), in rule 2F, for sub-rule (3) and (4), the following sub-rules shall be substituted, namely:─

“(3) The Infrastructure Debt Fund shall issue,-

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GST Turnover Limit Reduced form 40 lacs to 20 lacs in certain goods

General Limit of GST registration in case of supplier of goods is 40 lacs as per the CGST Act, 2017,  but some of the following cases & Supply of goods this limit is not applicable

Following (cases  & described Goods in the table) this limit is  not applicable:-

(i) persons required to take compulsory registration under section 24 of the said Act;

(ii) persons engaged in making supplies of the goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table;
(iii) persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and

(iv) persons exercising option under the provisions of sub-section (3) of section 25, or such registered persons who intend to continue with their registration under the said Act. Notification-02-2019-Union-Territory-Tax-English.pdf;jsessionid=DBC4F61F038B73FD56136736C68C0D6E

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Budget Update 2021

Budget update 2021

Short Summary Union Budget Discussion 2021


Economic Reforms & Schemes – Budget highlights 2021


The overall capital expenditure for FY 2021-22 is Rs.5.54 lakh crore. Improvement of healthcare center is the priority of Government, FM proposed a new centrally sponsored scheme in the health sector, PM Aatmanirbhar Swasth Bharat Yojana, with an outlay of about Rs.64,180 crore over six years.


Further, the Budget outlay for the Health sector and Well being is estimated to be Rs.2,23,846 crore for FY 2021-22, which is a rise by 137% Y-o-Y basis. The increased allocation in health care is expected to expand and strengthen existing national health institutions, National Centre for Disease Control (NCDC), Health Emergency Operation Centers, and mobile hospitals. Another major highlight was the increase in the FDI limits in the insurance sector from 49% to 74%. The government plans to divest two PSUs as well as one insurance company.


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Maximum Tax Benefits

Maximum Tax Benefit Under Income Tax Act.

The benefit under Income tax differ among to class of person under the Income Tax Act.

In Interim Budget 2019 has proposed rebated under income tax U/s 87A of full tax liability up to the net income Rs. 5,00,000/-, ( After deduction u/s 80C). This rebate gives to all middlemen person who has income up 5 lacs.

How to calculate your income under income tax act


First Gross total income from all sources (Salary, House Property, Capital Gain, Business/ Profession, and any other sources) then all deduction 80C, 80G, etc. and other exempted allowance (HRA, LTA, etc.). if your Net income is up to 5 lacs then you will get 100 % rebate against income tax liabilities.

Consequences, if your gross total income is in range of 6 lacs then you can plan as per income tax law for certain deduction/ allowance which is mention below

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Deposit Guide 2021

Basic guide to deposit with request compliance

 Basic guide to deposit with request compliance


In this article, we are supposed to cover one of the most open for discussion topic “Deposit” though the section is very ambiguous due to its vast definition of exceptions we are getting ahead only for the basic terminology and essential compliances of filing an offer of Deposit and Return of Deposit and after reading the same A reader will have a fundamental knowledge of Deposit.


Introduction to Deposit


Every loan comes under the ambit of Deposit but every loan is not a Deposit this is what definition under section 2(31) of Companies Act, 2013 “Deposit” includes any receipt of money by way of deposit or loan or in any other form, by a company, but does not include:


So here are the exceptions to the definition of “Deposit” that the following amounts received by the company shall not be considered as Deposit.


  1. Receipt of Amount from Central or State Government, Local or Statutory Authority.
  2. Receipt of amount from a source that is repayable by Central or State Government.
  • Receipt of amount from international sources with comes under the provision of FEMA:


Foreign government


Foreign banks,


Multilateral financial institutions

Foreign export credit agencies

Foreign authorities,

Foreign bodies corporate

Foreign citizens

Foreign collaborators

A person resident outside India

Any other Subject to the approval of FEMA


  1. Receipt of an amount as loan or facility from Co-operative Banks, Banking Company, Banks notified by CG as per RBI Act.
  2. Receipt of an amount as loan from PFI, FI, Regional Financial Institutions, or scheduled banks.
  3. Receipt of funds against Commercial papers.
  • Any Inter-Corporate Loans or Deposit.
  • The amount received towards an offer of subscription to security, share application money or advance as well as pending allotments

but if securities are not allotted withing 60 days then such amount shall be also covered under Deposit if such amount is not refunded to the subscriber within 15 days after completion of 60 days.

  1. The amount transfer by the director through his own funds only not borrowed funds.
  2. Transfer by a relative of the director through his own funds only.
  3. Secured Debenture/Bond with the first charge on any tangible assets or Convertible secured debenture with a term less than 5 years.
  • Listed NCD’s (Non-Convertible Debentures)
  • Security deposit received from an Employee in terms of his/her appointment but not exceeding his annual income from the company as well as the same should be interest-free.
  • The interest-free amount received from a Trust or held in trust of a Company.
  1. The amount received as an advance in the due course of business for the following reasons:

a)     Amount received as an advance for the supply of goods and services which is adjusted within a time lap of 365 days.

b)    If the amount received under an obligation of any legal proceedings then a limit of 365 days shall not be applicable and the same shall not be considered as a deposit.

c)     Advance received under an agreement of immovable property and the same is appropriated as per the terms of the agreement.

d)    Security deposit to provide service or performance of a contract.

e)     Advance received to supply Capital goods in the long run.

f)      Receipt of advance money in place of warranty or AMC as per written agreement either for 5 years or as per common business practice whichever is less.

g)     Receipt of amount from any sectoral regulator as directed by the Central or State Government.

h)    Advance subscription money for Publication either in print or electronic media to be appropriated against such subscription.

In contradiction to the above points: Company dealing in those goods or services for which no authorization has been obtained amount received shall be Deemed Deposit in the lapse of 15 days from the date when it becomes due. (Applicable for point no.  a, b, and c only)


  • Unsecured loan bought by promoters of the company in a stipulation of any Bank or FI subject to the following condition:


A loan is provided as a stipulation imposed by a lender (Bank/FI) on promoters to contribute such finance;

A loan is provided by promoters themselves or through their relatives.

This exception under this subclause is only available till these loans are repaid.


  • Receipt of the amount by a Nidhi Company.
  • Funds received for subscription in respect of a chit under the Chit Fund Act 1982.
  • Funds were obtained under any collective investment scheme as per SEBI regulations.
  1. Fund of Rs. 25 Lakhs or more received in a one-time transfer from a person by a start-up company by way of convertible note i.e. Equity convertible instrument or repayable within 5 years.
  • Receipt of the amount under Alternative Investment Funds, Domestic Venture Capital Funds, Infrastructure Investment Trusts, Real Estate Investment Trusts, and Mutual Funds registered with SEBI.


All aforementioned exceptions are not covered in the definition of “Deposit”.

 Who is eligible to accept Deposit?

 A Public Company who fulfill the following conditions:

Net worth not less than Rs. 100 Crore.

Turnover not less than Rs. 500 Crore.

Obtained Prior consent of Members in duly convened General Meeting by passing Special Resolution.


Note: If an eligible company accepts deposit by within limits specified under section 180(1)(c) of the Companies Act, 2013 shall be required to pass an Ordinary Resolution in case of acceptance of deposit from the public.

 Other Companies Eligible to accept deposit:

A private company is a start-up or if fall under the following criteria:

1.Not an associate/subsidiary of any other company.


2. Borrowings from Bank/FI or any

Body-corporate is less than twice of its paid-up capital or Rs. 50 Crore, whichever is less

3. Company has not made any default in repayment of its borrowings.


Checklist to accept Deposit from Members

 Though post-enactment of the Companies Act, 2013, No company is allowed to offer and accept deposit except a public company who fulfill the aforementioned Conditions but to accept Deposit from members, an Eligible company needs to abreast following conditions namely as well:



Other than Private Company

For Private Company


Special Resolution in General Meeting shall be filed with ROC within 30 Days.

Ordinary Resolution in General Meeting shall be filed with ROC within 30 Days.


Filing of Circular

Filing of the circular and statement with the Registrar within 30 days before the date of issue of the form DPT -1.


Certificate for Issuing Deposits shall be obtained and attached from the Statutory Auditor that the company has no defaults in past.


No Such Requirement in the case of Exempted Private Companies.

Trust Deed

Before 7 days of issuing a circular in DPT-1 company is required to execute a deposit trust deed in DPT-2

Not Applicable.

Deposit Repayment Reserve (DRR)

1. Opening of Separate Bank account with a Schedule Bank DRR Account.

2.On or before 30th April each year, deposit 20% or more amount of Deposits maturing during the financial year

3.Amount Deposited not less than 20% in  DRR account shall not be utilized for purposed other than repayment of funds

Not Applicable.

Charge on Assets Secured

(On the discretion of Company)

If secured debentures are issued then compliance of creation of charge has been made on such secured assets

if the company has not secured a deposit or partially secured deposit those Deposits shall be Termed as Unsecured Deposit

Optionally Applicable.

Receipt of Deposits

Provide receipts of deposit to depositors with 21 days of the amount received.

Similarly, Applicable to Exempted Private Companies.


Maintain Registers of Deposit and make entries within 7 days of receipt of the deposit amount.

Similarly, Applicable.


Not less than 6 months or more than 36 months

Except: if the Deposit amount is not exceeding 10 % of its paid-up capital and free reserves and securities premium.

Similarly, Applicable.

Interest Rate

No company shall issue a deposit carrying rate of interest exceeding the rate provided by NBFC Norms.

Similarly, Applicable.

Return of Deposit

E form DPT -3 shall be filed as a return of deposit annually by 30th June.

Similarly, Applicable.



 Limits to accept Deposit from Members:


Public Company

Specified IFSC

Eligible Company

Other Companies

Upto 100%of its paid-up capital & free reserves

Upto 10%of its paid-up capital & free reserves

Upto 35%of its paid-up capital & free reserves


Private Company


Fulfills 3 conditions as mentioned above

Other Companies

Upto 5 years no limits no compliance

No limits No compliance

Upto 100%of its paid-up capital & free reserves


Some Quick FAQ’s on Deposit:

 Ques1: What is the rate of penal interest for the overdue amount of deposit?

Ans: A Company is liable to pay 18% interest for delay repayment of deposit, Deposit which are matured & claimed but not repaid.

 Ques2: Are deposits can be subscribed to in joint names?

Ans: Yes, Deposits can be subscribed jointly like shares but the number of joint holders cannot exceed 3 names.

 Ques3: Can a Deposit holder appoint a nominee for subscribing a deposit?

Ans: Yes, just like a shareholder as allowed under section 72 a Deposit holder can also appoint a nominee who in case of death of the nominee can claim those deposit amounts.

Ques4: What is the maximum tenure for to preserve Registers of Deposit?

Ans: As mentioned in the act, The Register of deposit shall be preserved for 8 years by the authorized director or company secretary.

 Ques5: Is it possible to claim a deposit before the date of maturity?

Ans: Yes, the Deposit amount can be claimed before maturity but only after completion of 6 months from the date of deposit at a reduced rate by 1%.

 Ques6: What shall be the treatment of unclaimed/unpaid deposits?

Ans: As per section 125(2)(i) of The Companies Act, 2013 the amount which is unclaimed/unpaid in place of deposit for more than 7 years shall be transferred to IEPF (Investor Education & Protection Fund).

 Ques7: What shall be the Penal Provision in case of Non-Compliance?

Ans: Contravention in Repayment of Deposit along with Interest.



Company Shall be liable to pay the Deposit amount along with Interest thereon,

 A fine of min. 1 Crore or twice the amount of deposit, whichever is lower,

Which can be extended to 10 crores.

Officer or Directors in default shall be liable for imprisonment of seven years

A fine of not less than 25 lakhs which may be up to Rs. 2 Crore.


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Financial statements may be used by different stakeholders for a multitude of purposes. Owners and managers require financial statements to make important business decisions affecting its continued operations. Financial analysis is then performed on these statements, providing management with a more detailed understanding of the figures.

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Financial Accounting


Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that

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Save your Tax


Value Added Tax (VAT) is a tax on consumption levied in the United Kingdom by the National Government. It was introduced in 1973 and is the third largest source of government revenue after Income Tax and National Insurance. It is administered and collected by HM revenue and customs, primarily through the Value Added Tax Act 1994. VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from outside the European Union.

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Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that

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Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that

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