The weekly messenger | Edition 14.21

ACCOUNTING NEWS

Accounting Standards: Quick Referencer for Micro Non - Company Entities – 25 May 2021
 
Recently, the ICAI had issued the revised criteria for classification of non-company entities for applicability of Accounting Standards, wherein one new category i.e. Level IV was introduced for micro enterprises. This revised scheme was made applicable w.r.t. accounting periods commencing on or after 1 April 2020.
 
Now, for the ease of Level IV entities i.e. Micro Non - Company Entities, the Accounting Standards Board (ASB) of the ICAI has issued the publication namely ‘Accounting Standards: Quick Referencer for Micro Non-Company Entities’, thereby providing guidance w.r.t. recognition, measurement and disclosure requirements under Accounting Standards applicable for such entities.
 
For more information, click here.

REGULATORY NEWS

Clarification on offsetting the excess CSR spent for FY 2019-20 – 20 May 2021
 
In March 2020, the Ministry of Corporate Affairs (MCA) had made an appeal to MDs/CEOs of top 1000 companies in terms of market capitalization to contribute the unspent CSR amount, if any and an amount over and above the minimum prescribed Corporate Social Responsibility (CSR) amount for Financial Year (FY) 2019 - 20 to ‘Prime Minister’s Citizen Assistance and Relief in Emergence Situations Fund (PM CARES Fund)’, which can later be offset against the CSR obligation arising in subsequent financial years.
 
Now, the MCA has clarified that, if companies which had contributed any amount to ‘PM CARES Fund’ on 31 March 2020, over and above the minimum amount of CSR, as prescribed under Section 135(5) of the Companies Act, 2013 for the FY 2019-20, and have now offset such excess amount or part thereof against the CSR requirement for FY 2020-21, then the same would not be treated as a violation, subject to the fulfilment of the following conditions :

• The amount offset as such shall have factored the unspent CSR amount for previous financial years, if any;
• The Chief Financial Officer shall certify that the contribution to ‘PM CARES Fund’ was made on 31 March 2020 in pursuance of the appeal and the same shall be so certified by the statutory auditor of the company;
• The details of such contribution shall be disclosed separately in the Annual Report on CSR as well as in the Board’s Report for FY 2020-21.

For more information, click here.
 
Extension of timelines of certain compliances under the Income-Tax Act, 1961 – 20 May 2021
 
The Central Government has extended the timelines for various compliances under the Income-tax Act, 1961, including the timelines for furnishing the income tax returns and tax audit reports for Assessment Year (AY) 2021-22, which are as follows:

• If due date of furnishing of Return of Income u/s 139(1) for AY 2021-22 is 31 July 2021, the same has been extended to 30 September 2021;
• If due date of furnishing of Return of Income u/s 139(1) for AY 2021-22 is 31 October 2021, the same has been extended to 30 November 2021 and accordingly, the due date of furnishing the tax audit report has been extended from 30 September 2021 to 31 October 2021;
• If due date of furnishing of Return of Income u/s 139(1) for AY 2021-22 is 30 November 2021, the same has been extended to 31 December 2021.
• The due date of furnishing of report under section 92E of the Income Tax Act, 1961 for the AY 2021-22 which is 31 October 2021 has been extended to 30 November 2021.

For more information, click here.