NICAI Update

Another Proud & Privileged Moment for Indian MSMEs

It is pleasure movement that CA Mukesh Mohan Gupta presented a copy of his Book “MSMEs of Developed India-An Encyclopedia of MSME Schemes” to me.

CA Mukesh Mohan Gupta, President, Chamber of Indian Micro Small and Medium Enterprises authored a book “MSMEs of Developed India-An Encyclopedia of MSME Schemes”. The book comprises of all major schemes of All Central Ministries and Key Stakeholders related to MSMEs and Startups.

The book was launched by Shri Piyush Goyal, Hon’ble Minister of Commerce and Industry and Dr. Rajneesh, IAS, Additional Secretary and Development Commissioner, Ministry of Micro Small and Medium Enterprises.

This publication is very useful tool for Chartered Accountants, Company Secretaries, Cost Accountants, Advocates, Tax & Finance Professionals and Academia.

You may get the book from the below link:
https://msmebook.indiansmechamber.com/

Quotes of the Day;

1. A simple formula for happy life. Never try to defeat anyone, just try to win everyone, Don't laugh at anyone but laugh with everyone.

2. Distance never breaks a Relation and Closeness never builds a Relation. If feelings are True, Honest & Sincere, All Relations will remain FOREVER.

NICAI Update;

1) Central Board of Direct Taxes (CBDT) has launched its second NUDGE initiative, targeting taxpayers with unreported foreign assets. Here's what you need to know:

A) Why the Nudge?: Using data from Automatic Exchange of Information (AEOI), Common Reporting Standard (CRS), and Foreign Account Tax Compliance Act (FATCA), the CBDT has identified high-risk cases where foreign assets seem to exist but weren't reported in Income Tax Returns (ITRs).

B) What to Do: Taxpayers will receive SMS and email alerts from November 28, 2025, advising them to review and revise their returns by December 31, 2025, to avoid penal consequences.

C) Previous Success: The first NUDGE campaign in 2024 led to over 24,000 taxpayers disclosing assets worth more than ₹29,000 crore.

D) Key Points:

I. Accurate disclosure of foreign assets and income is mandatory under the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

II. Non-compliance may lead to penalties, scrutiny notices, and prosecution.

III. Taxpayers can revise their ITRs by December 31, 2025, to avoid penalties.

2) Income Tax Department has introduced several key changes from 1-12-2025 that will impact taxpayers and deductors. Here are the details:

A) New TDS Alert System
• Real-time alerts will be sent to deductors for mistakes such as:
- Incorrect PAN
- Wrong section
- TDS rate mismatch
- Wrong mapping
• This will help deductors correct errors and avoid penalties.

B) Faster Refund Processing
• Valid ITRs will be processed within 7 working days, down from the previous 15-day timeline.
• This is great news for taxpayers expecting refunds.

C) New AIS Matching Rules
• If there's a mismatch of 10% or more in AIS/26AS, the system will automatically send an alert.
• Taxpayers should reconcile their AIS before filing ITR to avoid issues.

D) Higher Penalty for Late ITR Filing
• Penalty for late filing has increased to ₹7,500 for individuals with income above ₹5 lakh.
• Ensure timely filing to avoid penalties and interest.

E) Key Takeaways
• Verify PAN/Aadhaar-linked bank details
• Reconcile AIS/26AS before filing ITR
• Regularly check GST portal notifications
• Ensure accurate e-invoice data
• Maintain strong vendor compliance

3) Rajasthan Government has exempted Micro, Small, and Medium Enterprises (MSMEs) with 0-10 employees from Shop & Establishment Act registration, aiming to promote entrepreneurship and ease business operations.

A) Key Details:
• Exemption Criteria: MSMEs with 0-10 employees are exempt from registration under the Rajasthan Shops and Commercial Establishments Act, 1958.
• Registration Process: Previously, all shops and commercial establishments in Rajasthan were required to register within 30 days of starting operations.
• Benefits: This exemption simplifies compliance, reduces regulatory hurdles, and promotes business growth.
• Applicable Establishments: The exemption applies to MSMEs, including shops, restaurants, and service providers, with 0-10 employees.

B) Other Exempted Establishments:
• Government offices and establishments
• Medical facilities and hospitals
• Educational institutions
• Non-commercial libraries
• Certain types of shops (e.g., pharmacies, bakeries)

C) Registration Requirements:
• For establishments with 11-50 employees: ₹20,000 registration fee
• For establishments with 51-100 employees: ₹50,000 registration fee
• For establishments with over 100 employees: ₹1,50,000 registration fee

4) For Our Daily Updates you can also join our WhatsApp Community: https://chat.whatsapp.com/EsU6ma15SVm6cs0BFMPRTD

With best regards
CA (Dr) Raj Chawla
Cell: 98110-81083

Respected Members,

NICAI is organizing a Webinar on Key changes in the Income tax act 2025 vis-a-vis 1961

Date: Saturday, 29th November 2025

Time: 4:00 PM to 5:30 PM IST

Speaker:
Adv (CA) Shikhar Garg

Session Moderator:
CA Manish Garg

Key highlights.
1. An insightful comparative session on the major transformations from the Income-tax Act, 1961 to the new Income-tax Act, 2025.
2. Understand how the new Act simplifies structure, reduces complexities, and modernizes India’s tax framework.
3. A section-wise analysis of assessments, business income, TDS/TCS, definitions, and procedural changes introduced in the 2025 Act.
4. Practical insights for CAs on how compliance, assessments, and litigation will evolve under the new regime.
5. Learn the impact of the new tax architecture on day-to-day practice, documentation, and advisory functions.
6. A concise, practitioner-oriented presentation designed to help professionals transition smoothly to the 2025 tax framework.

Fees: 200

for payment: https://rzp.io/rzp/T04r21r

Warm regards,

Vidhi
9711081083

CA (Dr) Raj Chawla
9811081083

Quotes of the Day;



1. Distance never breaks a Relation and Closeness never builds a Relation. If feelings are True, Honest & Sincere, All Relations will remain FOREVER.

2. A simple formula for happy life. Never try to defeat anyone, just try to win everyone, Don't laugh at anyone but laugh with everyone.

NICAI Update;

1. Kerala High Court has held that the State Bank of India (SBI) cannot be treated as an 'assessee in default' under Section 201 of the Income Tax Act for not deducting Tax Deducted at Source (TDS) on Leave Travel Concession (LTC) payments, as it was bound by an interim order which prohibited such deduction.

2. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the SBI, having been restrained by an interim order of the High Court from deducting TDS, could be held to be an assessee in default under Section 201 of the Income Tax Act,1961, for non-deduction of TDS on LFC payments.

3. Section 201 of the Income Tax Act, 1961, outlines the consequences for failure to deduct or pay Tax Deducted at Source (TDS) as required by law.

4. In this case, the State Bank of India/assessee (appellant) has been providing reimbursement of Leave Travel Concession (LTC) to its employees.

5. Pursuant to a circular dated 15.04.2014 issued by the bank, LTC as regards overseas travel facility to the employees stood withdrawn. The circular was challenged before the Madras High Court at the instance of the association of the employees of the bank. The Madras High Court stayed the operation of the circular.

6. Later, the stay order as above was sought to be modified/clarified at the instance of the petitioners therein complaining that the bank (assessee) was taking steps to 'deduct tax at source', treating the payments to the employees on the basis of the interim order as 'income' of the employees.

7. The Madras High Court, therefore, issued an interim order clarifying the earlier order. The interim order says that any amount paid to the petitioner towards LTC or re-imbursement of LTC would not amount to income, so as to enable the Bank to deduct tax at source.

8. The assessee contends that in view of the interim order, no tax could be deducted while making payment to the employees, since, in the order, it was found that the payment to the employee would not amount to his income to enable the bank to deduct tax at source.

9. The department argued that insofar as steps under Section 201 of the Income Tax Act were initiated with reference to the deduction within the State of Kerala, the interim orders issued by the Madras High Court were of no consequence, and hence the assessee cannot seek refuge thereunder.

10. As the assessee, having complied with the orders of the Madras High Court, cannot be treated as an 'assessee in default' under the provisions of Section 201 of the Act, stated the bench.

11. The bench opined that even though the main writ petition/writ appeal has been later disposed of insofar as the interim order has directed the treatment of the amount paid without deduction of tax in the manner laid down therein, the assessee bank cannot be treated as an assessee in default.

12. The bench further stated that since the Act is an all-India statute and since what was challenged before the Court was the circular issued by the bank at the instance of the Association of Bank employees, the assessee cannot be faulted for having honoured the stay orders issued by the Madras High Court.
In view of the above, the bench allowed the appeal. Case Title: State Bank Of India v. Commissioner of Income Tax

13. J&K And Ladakh High Court has ruled that trade between J&K and PoK (Pakistan occupied Kashmir) is ‘Intra-State supply’ under GST Act, since PoK Is part of J&K Territory. Hence, CGST & SGST shall be applicable and not IGST.



14. For getting more updates on job vacancies by employers and employees. Kindly join our page CA Empanelment Network: https://www.facebook.com/groups/1381553892168021



With best regards
CA (Dr) Raj Chawla
Cell: 98110-81083