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Objection of ICAI on article”Don’t rely on Insurance Agents or CAs for financial advise” published in the ‘Deccan Herald’ on 05.12.2022

We would like to draw your attention to an article titled “Don’t rely on Insurance Agents or CAs for financial advise” published in the ‘Deccan Herald’ dated 05.12.2022. The article written by Ms. Mrin Agarwal, Director, Finsafe India (copy placed below) states as under:

“For long, investors have relied on Insurance Agents and/or Chartered Accountants (CA) to provide financial advise. However, neither of them is really equipped to do so as they are not certified or have deep knowledge of various markets. CAs are tax experts whose guidance needs to be taken only for tax related matters. A CA does not know how to evaluate a fund or how to create a financial plan

………………………….. Another advantage of financial planners is their focus on goal based plans and

not on specific products unlike agents who would push the latest product or CAs who can give opinions on a product but do not really know if it is a fit in your portfolio.”

It is quite unfortunate that a reputed Newspaper like the Deccan Herald has published the aforesaid article containing disparaging remarks against Chartered Accountants which caused immense damage to the credentials of CA profession. Chartered Accountants are experts in the areas of finance & related matters and are qualified & competent to examine and comment on the financial statements of any entity. Many of them are certified investment advisers and portfolio managers registered with SEBI. The adverse comments made in the article are, therefore, unfounded and uncalled for ,which has tarnished the reputation of Chartered Accountants in the eyes of the public.

As you are aware, the Institute of Chartered Accountants of India (ICAI) is a statutory body set up under an Act of Parliament to regulate the profession of Chartered Accountants and to maintain the standards of the professional qualifications of its Members.

In view of the above, we request you to take appropriate steps for suitable publication in your Newspaper to dispel the adverse opinion expressed in the said article, to clear the doubts in the minds of the readers.

72370prc58264

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ICAI represented to CBDT for waiver of penalty for delay in Tax Audit

ICAI Indore Branch has Represented CBDT to consider waiver of penalty for delay in furnishing of Report of Audit under any provision of the Income-tax Act, 1961 for the A. Y. 2021-22

Indore/2021-22/Rep-1 6th January, 2022

To,
Shri J.B. Mohapatra,
Chairman,
Central Board of Direct Taxes,
Ministry of Finance, Government of India,
North Block, New Delhi – 110001

Dear Sir,

Re: Request to consider waiver of penalty for delay in furnishing of Report of Audit under any provision of the Income-tax Act, 1961 for the A. Y. 2021-22.

The Institute of Chartered Accountants of India (ICAI) has been playing an important role in facilitating proper administration and compliance of the tax laws in order to assist the Government in increasing the tax base.

Through this letter, we wish to bring to your kind attention, issues and concerns faced by the assessees in meeting the extended statutory timeline of 15.01.2022 for furnishing Report of Audit under any provision of the Income-tax Act, 1961 (Act) for the Previous Year (PY) 2020-21 due to various reasons in these covid situation.

Introduction/Background

It is noticed that the CBDT did suo moto extend the various due dates under the Income-tax law vide Press Release dated 09.09.2021. It was, inter alia, specified that the due date of furnishing of Report of Audit under any provision of the Act for the PY 2020-21 would be 15.01.2022. Due dates for furnishing non-audit ITRs was also extended from July 31, 2021 to December 31, 2021.

As on the even date, certain forms like Form No. 3CEB are not available on the IT Portal. In filling up the other forms, difficulties are encountered. As regards, certain other forms like 10C, 10B, difficulties are still continuing.

3. Further, considering the current situation of lockdowns and extremely fast spread COVID19 and consistent issues being faced in the operation of the new portal, compliance is meeting with hinderances.

4. In the matter of audits including tax audits, the ICAI members have onerous responsibility to maintain and enhance quality of reports. The Government is well aware that the Institute has the responsibility of ensuring and enhancing the quality of services provided by its members to clients and other stakeholders. In fact, the prime objective of tax audit is to assist the assessing officer to determine income from business or profession. It is also necessary to emphasize for
your kind appreciation that in the context of audit requirements, the Chartered Accountants are also the stakeholders.

Clustering of due dates have also added to the problems already faced..

Issues and concerns

Covid spread causing lockdowns and hampering normal working. The current situation of the country is well known to all. On a daily basis, stricter restrictions are being imposed by various Governments/authorities so as to reduce and control the spread of Covid19 virus eg States like Delhi, Maharashtra, Andhra Pradesh etc. have imposed strict weekend curfew as well as night curfew. Similar conditions are prevailing in almost all parts of the country currently. The Government is also of the view that the virus is spreading at an unprecedented pace and 3rd Covid wave has officially started in India. Almost lockdown type situations are prevailing in the country.

Tax Audit also involves discussion & consultation between the clients & staff on one hand & CA & its team on the other hand. This process has been restricted from past several months due to restrictions following pandemic.

Due to lock-down situation, there is almost no public transport for employees to travel to and from office. This has paralysed, albeit partially but substantially, functioning of Government offices including income tax.

Under the circumstances, the adherence to the extended due dates may not be possible. Majority of the assessees would be unable to meet the extended time-line(s) w.r.t various compliances under the Income-tax law, albeit involuntarily due to pandemic.

For Indore Branch of CIRC of ICAI

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PM Modi says CAs can play a very worthy & positive role in bringing transparency to economy

English rendering of PM’s address in the 78th Episode of ‘Mann Ki Baat’ on 27.06.2021

My dear countrymen, Namaskar.

Often in Mann Ki Baat there is a volley of your questions. This time I thought of doing something different, asking you questions, so listen carefully to my questions.

Who was the first Indian to win an Individual Gold at the Olympics?

In which game has India won the maximum number of medals at the Olympics?

Which player has won the maximum number of medals at the Olympics?

Friends, you may or may not send answers to me, but by answering the Olympics quiz that is on MyGov you will win several prizes. Many questions like these are in the Road To Tokyo Quiz on MyGov. Participate in the Road to Tokyo Quiz, know how India has performed earlier, how is our preparation now for Tokyo Olympics, know all this for yourself and tell others too. I want to urge you all to definitely participate in this quiz competition.

Friends, when we are talking of Tokyo Olympics, how can one forget the legendry athlete Milkha Singh. Some days ago, Corona snatched him away from us. When he was in hospital, I got an opportunity to talk to him. While talking to him I had urged him. I had said that you have represented India in 1964 Tokyo Olympics, so this time when our players are going to Olympics in Tokyo, you have to boost the morale of our athletes, have to motivate them with your message. He was so committed and emotional for sports that he immediately gave his consent even during his illness. But unfortunately, providence had other plans. I still remember he had come to Surat in 2014. We had inaugurated a Night Marathon. The interaction that I had with him then, the chat about sports that happened, that inspired me a lot too. We all know that the entire family of Milkha Singh has been dedicated to sports…. has been adding to the glory of India.

Friends, when Talent, Dedication, Determination and Sportsman Spirit come together only then a champion is made. In our country most of the sportspersons hail from the smaller towns and villages. Our team that is going to Tokyo too has many such players whose life inspires a lot. When you hear about our Praveen Jadhav ji , then you too will feel… how many difficulties Praveen has gone through to reach here. Praveen hails from a village in Satara district of Maharashtra. He is very good at Archery. His parents run the family by working as labourers and now their son is going to participate in his first Olympics at Tokyo. This is a matter of great pride not only for his parents but for all of us. Similarly, there is one more player, our Neha Goyal ji. Neha is a member of the women’s hockey team going to Tokyo. Her mother and sisters manage the family expenses by working in a cycle factory. Like Neha, Deepika Kumari ji’s life too has been full of ups and downs. Deepika’s father drives an auto rickshaw and her mother is a nurse, and now see, Deepika is at present the only female archer from India in the Tokyo Olympics. Our best wishes are with Deepika, once ranked world’s number one archer.

Friends, wherever we reach in life, whatever height we attain this connection with the ground, always, keeps us bound to our roots. The joy of success experienced after a period of struggle is something else! Our players going to Tokyo faced scarcity of means and resources in their childhood, but they persevered, and endured with fortitude. The life of Priyanka Goswami ji of Muzaffarnagar, Uttar Pradesh also teaches a lot. Priyanka’s father is a bus conductor. As a child, Priyanka adored the bag that the medal winners were presented with. It was this fascination that made her participate in the Race-Walking competition for the first time. Now, she is a big champion of that.

Shivpal Singh ji, who participates in Javelin Throw, hails from Banaras. Shivpalji’s entire family is associated with this sport. His father, uncle and brother are all experts at javelin throw. This family tradition is going to be useful for him in the Tokyo Olympics. The example of Chirag Shetty and his partner SatwikSairaj going for the Tokyo Olympics is also inspiring. Recently, Chirag’s maternal grandfather died of corona. Satwik himself also became corona positive last year. But, despite these hurdles, both of them are preparing to give their best in the Men’s Double Shuttle Competition.

I would like to introduce you to another player, Manish Kaushik ji of Bhiwani, Haryana. Manish ji comes from an agricultural family. While working in the fields in his childhood, Manish became fond of boxing. Today this hobby of his is taking him to Tokyo. There is another player, C.A. Bhavani Devi Her name is Bhavani and she is adroit at fencing. Bhavani, who hails from Chennai, is the first Indian fencer to qualify in the Olympics. I was reading somewhere that in order for Bhavani ji’s training to continue, her mother had even mortgaged her jewellery.

Friends, there are numerous such names, but in Mann Ki Baat, today I have been able to mention only a few. Every player going to Tokyo has had one’s own share of struggle, and years of toil. They are going not only for themselves but for the country. These players also have to enhance the glory of India and win the hearts of the people and that is why my countrymen I want to advise you too, that we should not pressurize these players knowingly or unknowingly, but support them with an open mind and bolster the enthusiasm of every player.

You can send your wishes to these players with #Cheer4India on social media. If you want to do something more innovative, then definitely do that too. If you come across any idea that the country should do collectively for our players, then you must send it to me. Together we will support our players going to Tokyo – Cheer4India!!! Cheer4India!!! Cheer4India!!

My dear countrymen, the battle we the countrymen are fighting against corona is continuing…but in this fight, together, we have achieved many an extraordinary milestone! Just a few days ago, our country accomplished an unprecedented feat. On the 21st of June, the next phase of the vaccination campaign commenced…and that very day, the country registered a record of administering vaccines to over 86 lakh people, free of cost…that too on a single day! Such a huge number of free vaccinations by the Government of India; that too in a day. It is but natural that it was widely discussed.

Friends, a year ago, the question that was confronting all was – When will the vaccine come! Today, in a day, we are administering the Made in India vaccine to lakhs of people, free of cost…and this indeed is the strength of New India.

Friends, we have to keep making efforts to ensure that every citizen is able to avail of safety through the vaccine. At many places, in order to end vaccine hesitancy, myriad organizations and members of civil society have come forward…and together, they are doing a wonderful job… Come…let us too visit a village and speak to people about the vaccine…let’s go to village Dulariya, district Betul, Madhya Pradesh.

PM – Hello…

Rajesh – Namaskar.

PM – Namaste ji.

Rajesh –My name is Rajesh Hiraawe, Gram Panchayat Dulariya, Bhimpur Block.

PM – Rajesh ji, I called up since I wanted to know about the Corona situation in your village, as of now.

Rajesh – Sir…the Corona situation here…well, there’s nothing of that sort here!

PM – People are not ailing now…?

Rajesh – Ji

PM – What is the population of the village? How many people are there?

Rajesh – Sir, there are 462 men and 332 women in the village.

PM – Fine Rajesh ji, have you taken the vaccine?

Rajesh – No Sir, not yet…

PM – O…why not?

Rajesh – Sir, some people here created such a delusion on WhatsApp that many were misled Sir.

PM – So…even you bear a fear in your mind!

Rajesh – Yes sir…the entire village was being misled.

PM – Oh…what have you said? See Rajesh ji…

Rajesh – Ji

PM – I would like to urge you and all my brothers and sisters in the village to dispel fear, if any…

Rajesh – Ji

PM – In our country, over 31 crore people have got themselves vaccinated.

Rajesh – Ji

PM – You know very well…I’ve myself been vaccinated with both doses.

Rajesh – Ji Sir

PM – And my mother is close to a hundred years of age…she too has taken both doses! At times, some people develop fever on account of this…but it’s very minor; just for a few hours…See, not getting vaccinated can prove dangerous.

Rajesh – Ji

PM – That way, you expose yourself to risk; not just that, you can endanger the family as well as the village!

Rajesh – Ji

PM -And Rajesh ji, that is why, as soon as possible, get yourself vaccinated…and in the village, tell everyone that the vaccine is being administered by the Government of India, free of cost…and for all persons above 18 years of age, this vaccination is free.

Rajesh – Ji Ji

PM – So, do tell this to people in the village…and this is not at all a reason for an atmosphere of fear in the village!

Rajesh – Sir, the reason is – some of them have spread such a misleading rumour…that deeply scared people. For example, developing fever after taking the vaccine…the fever leading to other ailments…rumour has been spread to the extent that it leads to a person’s death!

PM – Alas!…. These days, there is so much of radio and television; so much of news…hence it becomes easy for making people understand. And let me tell you…there are many villages in India where people have availed of the vaccine…I mean, cent percent of them. I’ll give you one such example…

Rajesh – Ji

PM – There’s district Bandipora in Kashmir…in this district, people of village Weyan together set themselves a target of 100% vaccines…and also achieved it. Today, in this village in Kashmir, all persons above the age of 18 have taken the vaccine. I came to know about three villages in Nagaland also where people have been vaccinated a 100 percent.

Rajesh – Ji Ji

PM – Rajesh ji, you too should communicate this across your village and neighbouring villages…and the way you also put it – it is a fallacy…just something misleading.

Rajesh – Ji Ji

PM – So, the only way to address this fallacy is convincing others by getting yourself vaccinated. You will do that, won’t you?

Rajesh – Ji Sir.

PM – Will you do it for sure?

Rajesh – Ji Sir, Ji Sir. Talking to you made me feel that I should get myself vaccinated and mobilise others to get the same done.

PM – Okay. Is there anyone else in the village I could talk to?

Rajesh – Yes Sir…there is.

PM – Who will speak?

Kishorilal – Hello Sir, Namaskar.

PM – Namaste ji, who is speaking?

Kishorilal – Sir, my name is KishorilalDurve.

PM – So Kishorilal ji, we were just speaking to Rajesh ji.

Kishorilal – Ji Sir.

PM – And he was lamenting that people indulge in a lot of loose talk around the vaccine.

Kishorilal – Ji

PM – Have you too heard something like that?

Kishorilal – Yes…I have heard such things Sir.

PM – What have you heard?

Kishorilal – Since Sir, Maharashtra is close by, some relatives staying there spread rumours that people are dying because of the vaccine…some are getting sick…people are full of misconceptions, that is why they are not taking it Sir.

PM – No…what do they say? “Now Corona is over” – is that what they say?

Kishorilal-Ji

PM – Do they say that nothing happens due to Corona?

Kishorilal – No Sir…they don’t say that corona is gone. They say Corona is there, but that people who take vaccines are getting sick…all are dying. That is the situation they describe.

PM – Okay…meaning people are dying BECAUSE of the vaccine?

Kishorilal – Ours is a tribal area Sir…as it is, people get scared quickly…which leads to spreading of mistaken notions…that’s why people are not taking the vaccine Sir.

PM – See Kishorilal ji…

Kishorilal – Yes Sir

PM – Those spreading rumours will keep on doing so.

Kishorilal ji – Ji

PM – We have to save lives…we have to save our village…and our countrymen. If someone says Corona is gone, do not be under this mistaken notion.

Kishorilal – Ji

PM – This ailment is like a master of disguise.

Kishorilal – Ji sir

PM – It keeps changing its looks…surfaces in myriad new forms and colours.

Kishorilal – Ji

PM – And to protect ourselves from it, we have two ways. One is adhering to the protocol for Corona – wearing a mask, frequently washing hands with soap, maintaining distancing…and the other way is …along with all this, getting vaccinated…that too is a good safety shield…think about that.

Kishorilal – Ji.

Prime Minister- Ok Kishorilal ji tell us one thing

Kishorilal -Ji sir.

Prime Minister- When people talk to you, how do you communicate it to them? You try to convince people or do you get carried away by rumours?

Kishorilal- What to convince.., when there are people in large numbers, we too are overtaken by fear sir.

Prime Minister- Look Kishorilal ji, I have spoken to you, today you are my friend.

Kishorilal – Ji Sir.

Prime Minister-You don’t have to be afraid and have to remove fear from people too. Will you?

Kishorilal- Ji Sir. Will dispel that Sir, will remove fear from people too sir. I myself will get it done.

Prime Minister- Look, don’t at all pay attention to rumours.

Kishorilal- Ji.

Prime Minister- You know, how much hard work our scientists have put in to make this vaccine.

Kishorilal ji- Ji sir.

Prime Minister- Through the year many senior scientists have worked and that is why we have to believe in science, believe in scientists. And should explain to these propagators of falsehood that look brothers it is not so, so many people have taken vaccine, nothing untoward happens.

Kishorilal- Ji

Prime Minister- And we should keep ourselves very safe from rumours, save villages too.

Kishorilal- Ji

Prime Minister- And Rajesh ji, Kishorilal ji, to friends like you I would urge that work to stop these rumours not only in your village but in other villages too. And tell people that you interacted with me.

Kishorilal- Ji Sir.

Prime Minister- Tell them…tell them my name.

Kishorilal- Will tell sir and will explain to people and will have it ourselves too.

Prime Minister- See, convey my best wishes to your entire village.

Kishorilal- Ji Sir.

Prime Minister- And tell everyone that whenever their turn comes…

Kishorilal – Ji…

Prime Minister- Definitely get vaccinated.

Kishorilal- Definitely Sir.

Prime Minister- I would like that to the women of village, to our mothers and sisters…

Kishorilal- Ji sir

Prime Minister- Involve them more and more in this work and keep them actively associated with yourself.

Kishorilal- Ji.

Prime Minister- At times when mothers- sisters tell a thing people agree readily.

Kishorilal- Ji

Prime Minister- Will you update me when vaccination gets completed in your village?

Kishorilal- Yes, will tell sir.

Prime Minister- Sure, will you tell me?

Kishorilal- Ji

Prime Minister- Look, I will wait for your letter.

Kishorilal- Ji Sir.

Prime Minister- Ok, Rajesh ji, Kishore ji many many thanks. Got an opportunity to talk to you.

Kishorilal- Thanks Sir, you spoke to us. Many many thanks to you too.

Friends, someday this will be a subject of case study for the world that how during this Corona period people of villages of India, our forest dwellers-tribal brothers-sisters, displayed their capabilities and understanding. People of villages set up quarantine centres, made Covid protocol as per local requirements. People of villages did not let anybody sleep hungry, did not let work in fields stop either. The villages also ensured daily supply of milk and vegetables to nearby cities that is, they took care of themselves and of others too. We have to keep doing the same way in the vaccination campaign too. We have to be aware and make others aware too. Every person in the village gets vaccinated – this should be the goal for all villages. Remember, and I specially want to tell you… Ask a question to yourself- everyone wants to be successful but what is the deciding mantra for success? The decisive mantra for success is continuity, so we don’t have to get lax, don’t have to get in delusion. We have to keep making efforts continuously…register victory over Corona.

My dear countrymen, now the monsoon season has also arrived in our country. When the clouds rain, they rain not only for us, but also for the generations to come! Rain water also collects in the ground, it also replenishes the water level of the ground. And that’s why I consider water conservation as a form of service to the country. You too must have seen, many of us are taking this pious work as their responsibility. One such person is Satchidanand Bharti ji of Pauri Garhwal, Uttarakhand. Bharti ji is a teacher and he has imparted very good education to the people through his deeds. Today, due to his hard work, the huge water crisis in the Ufrainkhal area of Pauri Garhwal has come to an end. Where people used to pine for water, today there is continuous supply of water throughout the year.

Friends, in the hills there exists a traditional method of water conservation, which is called Chalkhal. That is, it involves digging a big pit to collect water. Bharti ji also added some new methods to this tradition. He regularly got small and big ponds dug. Due to this, not only the hills of Ufrainkhal turned green, but the problem of drinking water of the people was also solved. You will be surprised to know that Bharti ji has got more than 30 thousand such water tanks constructed. 30 thousand! This monumental work of his continues even today and is inspiring many people

Friends, similarly the people of Andhav village in Banda district of UP have also made an innovative effort and have given a very interesting name to their campaign – ‘Khet ka pani khet mein, gaon ka panigaonmein’. Under this campaign, high bunds have been raised in several hundred bighas of fields of the village. As a result rain water started collecting in the field, and started percolating into the ground. Now, these people are also planning to plant trees on the bunds of the fields. That is, now farmers will get all three – water, trees and money! As it is the village is getting recognized far and wide due to its good work.

Friends, taking inspiration from all of these efforts, we can also conserve water around us, in whatever way possible… we should save it. We must not to miss this crucial period of the monsoon season.

My dear countrymen, it is said in our scriptures –

““नास्तिमूलम्अनौषधम्” ” “Nasti Moolam Anoushadham”

That is, there is no such plant on earth which does not have any medicinal properties! There are many such trees and plants around us, which have amazing properties, but many times we do not even know about them! Bhai Paritosh, a friend from Nainital has also sent me a letter on the same subject. He has written that he came to know about miraculous medicinal properties of Giloy and many other plants only after the outbreak of Corona! Paritosh has also urged me to tell all the listeners of Mann Ki Baat that we should know about the flora around us, and also convey to others. In fact, this is our centuries old heritage, which we have to preserve. In this direction, Mr. Ramlotan Kushwaha ji, a friend from Satna of Madhya Pradesh, has done a very commendable job. Ramlotan ji has built a museum of indigenous plantson his farm. In this museum, he has collected hundreds of medicinal plants and seeds. And he has brought them here from far flung regions. Apart from this, he also grows many types of Indian vegetables every year. People visit this garden, this museum of Ramlotan ji, and learn a lot from it. Indeed, this is a very good experiment which can be replicated in different regions of the country. I would like that those of you who can make such an effort, should attempt it. This can also open up new sources of income for you. Another benefit will be that the identity of your area will gain wide prominence through the local medicinal plants.

My dear countrymen, a few days from now we will celebrate National Doctors Day on the 1stof July. This day is dedicated to the birth anniversary of the great doctor and statesman of the country, Dr B.C. Roy. We are all grateful for the contribution of doctors in the Corona period. Our doctors have served us without caring about their lives. Therefore, this time around National Doctors Day becomes all the more special.

Friends, Hippocrates, one of the most respected persons in the world of medicine, had said:

“Wherever the art of Medicine is loved, there is also a love of Humanity.”

Doctors are able to serve us with the power of this very love. Therefore, it is our duty to thank them with an equal measure of affection and encourage them! By the way, there are many people in our country who have come forward and worked to help the doctors. I came to know about one such attempt from Srinagar. Here a Boat Ambulance Service was started at Dal Lake. This service was started by Tariq Ahmad Patloo ji of Srinagar, who is a Houseboat Owner. He himself has also fought the battle with COVID-19 and this inspired him to start the Ambulance Service. A campaign is also underway to make people aware of this ambulance, and continuous announcements from the ambulance are being made by him. The effort is that people should wear a mask and undertake other necessary precautions too.

Friends, along with Doctors Day, Chartered Accountants Day is also celebrated on the 1stof July. A few years ago, I had asked for global level Indian audit firms as a gift from Chartered Accountants of the country. Today I want to remind them ofthat. Chartered Accountants can play a very worthy and positive role in bringing transparency to the economy. I extend my best wishes to all Chartered Accountants and their family members

My dear countrymen, there is one great feature of India’s fight against Corona. Each and every person of the country has played their part in this fight. I have often spoken about this in ‘Mann Ki Baat’. But some people also complain that not a lot is discussed about them. Many people, whether they are bank staff, teachers, small traders or shopkeepers, people working in shops, street vendors, security watchmen, postmen and post office employees… Actually, this list is very long and everyone has played his or her part. Innumerable people have been involved with government and administration at different levels.

Friends, you have probably heard the name of Guru Prasad Mohapatra ji, who was the Secretary to the Government of India. Today in “Mann Ki Baat”, I want to speak about him too. Guruprasad ji was diagnosed with Corona, he was admitted in the hospital and yet at the same time was performing his official duties too. He toiled day and night to increase the Oxygen producing capacities of the country and to ensure that Oxygen reached far flung areas. On the one hand, the affairs of the court, the pressure of the media, he kept fighting on many fronts simultaneously and did not stop working during his illness. Even after being told not to, he used to insist on joining the video conferences on oxygen. Such was his concern for his countrymen. He kept on making arrangements to deliver oxygen to the people of the country, regardless of himself being on the hospital bed. It is sad for all of us that the country has also lost this Karma Yogi ; Corona has snatched him away from us. There are countless people who have never been discussed. Our tribute to every such person would be that we follow the covid protocol fully, get our vaccinations done.

My dear countrymen, the best thing about ‘Mann Ki Baat’ is that you all contribute to it more than me. I saw a post on MyGov by Thiru R.Guruprasad ji from Chennai. You too will be pleased to know what he has written. He has written that he is a regular listener of the program “Mann Ki Baat”. I am quoting a few lines from Guruprasad ji’s post. He has written –

“Whenever you talk about Tamil Nadu, my interest increases even more.

You have discussed the greatness of Tamil language and Tamil culture, Tamil festivals and major places in Tamil Nadu.”

Guru Prasad ji further writes – “In ‘Mann Ki Baat’, you have also spoken many times about the achievements of the people of Tamil Nadu. What to say about your love for Thirukkural and your respect for Thiruvalluvar ji! That’s why I have prepared an E-Book by compiling all that you have spoken about Tamil Nadu in ‘Mann Ki Baat’. Will you say something about this e-book and also release it on the Namo App? Thanks!”

‘I was reading the letter of Guruprasad ji for you.’

Guruprasad ji, I am very happy to read this post of yours. Now, add another page to your E-Book –

नान तमिलकला चाराक्तिन पेरिये अभिमानी |

नान उलगतलये पलमायां तमिल मोलियन पेरिये अभिमानी |

There could definitely be fault in pronunciation but my efforts and my love will never diminish. I want to tell those who are not Tamil speaking, what I have told Guruprasad ji –

‘I am a big admirer of Tamil culture.

I am a big admirer of Tamil, the oldest language in the world.’

Friends, every Indian should cherish and feel proud that the most ancient language of the world belongs to our country. I take a lot of pride in Tamil. Guru Prasad ji, this effort of yours is going to give a new vision to me. When I do ‘Mann Ki Baat’, I put forth my point in a simple manner. I didn’t know that this was even a part, an element of it. When you collected all our old conversations, I read it not once but twice. Guruprasad ji, I will definitely get this book of yours uploaded on the Namo App. Best wishes to you for future endeavours.

My dear countrymen, today we talked about the difficulties and precautions pertaining to Corona and also discussed many achievements of the country and countrymen. Now another big opportunity is in front of us too. 15th August is also approaching. Amrit Mahotsav of 75 years of Independence is a big inspiration for us. Let us learn to live for the country. The Struggle for Independence is the story of those who died for the country, we have to make this post-Independence time the story of those who live for the country. Our mantra should be – India First. Every decision of ours, every decision should have the basis – India First!

Friends, the country has also set many collective goals in the Amrit Mahotsav. Like, we have to revive the history related to our freedom fighters by remembering them. You will remember that in ‘Mann Ki Baat’, I appealed to the youth to research and write history of the freedom struggle. The motive was that young talents should come forward, young thinking, young thoughts should gain prominence, the young pen should write with new energy. I feel very happy to see that in a very short time more than two and a half thousand youth have come forward to do this work. Friends, the interesting thing is that the Struggle of the 19th – 20th century is usually talked about, but it is a matter of joy that the youth who have been born and brought up in the 21st century have taken up cudgels to bring to the forefront the history of the Freedom Struggle of 19th and 20th century. All these people have sent the full details on MyGov. These people will be writing on the freedom struggle in different languages of the country,such as Hindi – English, Tamil, Kannada, Bengali, Telugu, Marathi – Malayalam, Gujarati. Some are associated with the freedom struggle, gathering information about the places around them, while someone else is writing a book on tribal freedom fighters.This is a good start. I request all of you to join the Amrit Mahotsav, in whichever way you can. It is our good fortune that we are witness to the festival of 75 years of our Independence. Hence the next time we meet in ‘Mann Ki Baat’, we will talk more about preparations for the Amrit Mahotsav. May all of you stay healthy, move forward following the rules related to Corona and keep giving momentum to the country with your new efforts. With best wishes, thank you very much!

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June, 28
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Compliance Law
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ICAI invites EoI for audit tool

The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of Parliament, viz. The Chartered Accountants Act, 1949 for regulating the profession of Chartered Accountancy in the country. The Institute, functions under the administrative control of the Ministry of Corporate Affairs, Government of India.

It recommends the accounting standards to be followed by companies in India to National Financial Reporting Authority and sets the accounting standards to be followed by other types of organisations. ICAI is solely responsible for setting the Standards on Auditing (SAs) to be followed in the audit of financial statements in India. It also issues other technical standards like Standards on Internal Audit (SIA), Corporate Affairs Standards (CAS) etc. to be followed by practicing Chartered Accountants. ICAI, now to usher in process automation and ease of doing audit for audit firms, proposes to develop an ‘audit tool’ for process automation and ease of carrying out audit for its firms.

It has now sought an Expression of Interest (EOI) from software vendors for development and maintenance of a web-based software for audit management. An Expression of Interest (EOI) is one of the initial transaction documents shared by the buyer with the seller. The EOI indicates a serious interest from the buyer that their company would be interested to pay a certain valuation and acquire the seller’s company through a formal offer.

This ‘audit tool’ will not be mandatory and it will be up to the firm concerned to opt for it. ICAI is only facilitating the process automation. The tool would cover Statutory Audit, Tax Audit, Internal Audit, Bank Audit and GST Audit, and should be compliant with the laws such as the Companies Act 2013, Income Tax Law 1961 and also with the Pronouncements of ICAI, the CA Institute has said.

The CA Institute has around 3.15 lakh members and around 90,000 firms specialising in traditional areas of audit, direct, indirect and international taxes, including GST, and in emergent areas such as insolvency, financial services, risk management and corporate re-structuring.

Nearly 90,000 audit firms in the country could potentially benefit from any move to automate audit activities such as client engagement, analytical procedures, allocation of tasks and documentation of audit, sources said.

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March, 17
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ICAI
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Standard

SME Finance for CAs upto Rs 25 Lakhs by SBI

The following is the circular from SBI which gives terms and conditions for Loans to CAs, without any collateral and for working capital requirements

The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of Parliament, viz. The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for regulating the profession of Chartered Accountancy in the country. The Institute, functions under the administrative control of the Ministry of Corporate Affairs, Government of India. The ICAI is the second largest professional body of Chartered Accountants in the world, with a strong tradition of service to the Indian economy in public interest. In order to capture this important segment and to cater to the credit requirements of Chartered Accountants a new product, “SME Finance For CAs Under Contactless Lending Platform” has been rolled out.

2. Salient features of the product are furnished below:

Extend finance to CAs registered with ICAI.
Minimum loan: Rs.2.00 lakhs, Max. loan Rs. 100 lacs
Simple assessment of limit based on Income Tax Return
Nil collateral security.
No prepayment penalty.
Competitive rate of interest linked to EBLR.
Covered under CGTMSE.
Loan will be available through CLP platform.

3. The loan facility to CAs will be introduced in Metro and Urban centers including State Capital/ Tier-I cities.

4. The following are product codes for Overdraft and Term Loan facilities under loan to CAs:

Product Code	Product Description	Facility	Segment
6501-4020	EB-MSME-OD-SME FIN CA	Overdraft	MSME
6400-4093	EB-MSME-TL-SME FIN CA	Term Loan	MSME

We attach the following annexures: –

Annexure-I: Detailed features of the product.
Annexure-II: Scoring Model
Annexure III: Loan Application Form.
Annexure-IV: Appraisal Format.
Annexure-V: Standard Operating Procedure (SOP) for the Product

5. Appraisal formats for the loan product are being developed in LOS/ LLMS. Hence, till such time rolled out in LLMS branches are permitted to process the proposal outside LOS/ LLMS. Please advise the operating units and branches under your control to book maximum business under the product.

Chief General Manager (SME & SCF)

Annexure-I

Salient features of SME Finance For CAs Under CLP

Sr.	Parameters	Features
a.	Target Group & Eligibility	Member Chartered Accountants (CAs) / Proprietorship / Partnership / or in any other form registered with the Institute of Chartered Accountants of India and currently under practice. Eligibility: Minimum Age: 25 Years, Maximum Age: 65 yearsCA must have Certificate of Membership (CoM)/ Certificate of Practice (CoP) issued by ICAI. CoM/ CoP should be at least 5 years old.Minimum ITR – ITR for past 3 years should be available.The applicant must obtain a minimum score of 50% as per score card under the scheme.Applicant must be registered in UDYAM portal as MSME.Applicants with CIBIL score below 650 will be ineligible.
b.	Purpose	Overdraft: For payment of salaries to employees/ Overheads/ Expenses pertaining to office. Term Loan: Purchase of Office Equipments, Computers, Fixtures Fixed assets/ Renovating office premises.For Construction of office premises on self-owned land/ firm land/ Promoter’s land.For acquisition of ready built new office premises on ownership basis.
c.	Nature of Facility	Overdraft, Term Loan.
d.	Quantum of loan	Overdraft: Min: Rs. 2 Lakhs; Max. Rs.25 Lakhs.Term Loan: Min. Rs.2 Lakhs; Max: (i) Metros: Delhi, Mumbai, Chennai, Kolkata, Ahmedabad, Bengaluru: Rs. 100 Lakhs (ii) Other Centres (State Capital/ Tier-I cities) : Max. Rs.75 Lakhs.
	Assessment	Term Loan: 75% of the project cost. Overdraft: 25% of Gross Receipts of the Firm/ CA. Max. Rs.25 Lakhs. [Note: Gross receipts mean total Professional and Other Fee received by a firm or CA. Gross receipts can be verified from GST returns (as GST is compulsory for > Rs.20 lakhs receipts). Gross receipts can also be verified from Audited of Certified Financials. In case of non-audited financials or Non-GST registered firm, receipts can be verified from Income Tax Return (as per Income Tax Act, professional have to show income higher of the following as presumptive income u/s 44 ADA: 50% of the total receipts from the profession.] Gross receipts can also be verified by credit summations in the account. (Branches are instructed to arrive to the income/ receipts as per Form 26AS for assessment of OD limit.)

Sr.	Parameters	Features
e.	CRA/ CUE	Not applicable.
f.	Margin	Term Loan: 25%, Overdraft: Nil.
g.	Pricing	Overdraft: EBLR + 2.50% (Present effective rate 9.15%) Term Loan: EBLR + 2.00% (Present effective rate 8.65%).
h.	Primary Security	Overdraft: Nil. Term Loan: Assets created out of bank finance.
i.	Collateral Security	Overdraft: Nil. Term Loan: Loan to be covered under CGTMSE. CGTMSE fee to be borne by the borrower.
j.	Personal Guarantee	Applicable. Personal guarantee of promoter (s) to be taken.
k.	Repayment Period	Overdraft: On demand. Term Loan: Repayable in 60 EMIs. (With maximum moratorium of 12 months).
l.	Processing Fee	Up to Rs. 10 lacs: Rs. 500 plus applicable taxesAbove Rs. 10 lacs: Rs. 1000 plus applicable taxes
m.	Pre-Payment Penalty	Nil
n.	Penal Interest	5% p.a. over and above the existing rate of interest on overdue amount for the period of default (as per CPPD card rate).
o.	Stock Statement	Not required. However, for TL, schedule of fixed assets created out of bank finance to be obtained and annexed to SME-2.
p.	Documentation	SME documents to be obtained. In case of overdraft facility only SME-1, DP Note, DP delivery letter to be obtained. For TL facility applicable SME documents.
q.	Sanctioning Authority	As per scheme for delegation of financial powers. For OD facility: Sanction powers as applicable to Clean/ Unsecured loans as per Circular No. CDO/ORG-DFP/5/2019-20 dated 06.03.2020 will be applicable.
r.	RMD Guidelines	Not applicable
s.	Inspection	For Term Loans: Quarterly.
t.	Inspection Charges	Nil
u.	Insurance	As per bank’s extant instructions.
v.	End Use of Funds	Funds to be utilized for business and not for speculative purposes. (Certificate of end use of funds to be obtained.). Post disbursement visit to be made by credit official to verify and to ensure that Fixed Asset has been acquired.
w.	KYC Exercise	KYC exercise to be done as per Bank’s extant instructions. CA’s status to be checked through URL https://www.icai.org/traceamember.html

Sr.	Parameters	Features
x.	Other Conditions	Takeover is not proposed. Current accounts with other banks to be closed after disbursement. However, borrower will have to undertake at the time of application submission that he will close current account with other bank after disbursement. All transactions to be routed through our Current account (OD account). Disbursement (Term Loan): Directly to the supplier’s account. Margin to be brought up front. No reimbursement is allowed. Regular monitoring of transactions to be done. Upon account becoming SMA-0, notice to be sent immediately and thereafter every fortnight. If no credit transactions during one month, necessary steps be initiated. In case of default the matter to be reported to ICAI/ NFRA for necessary action. An undertaking in this regard to be obtained from the applicant at the time of disbursement. All other accounts of the borrower, including SB account to be migrated to us. In the event of default/NPA, as an option to charging penal interest of 5% over & above the existing rate on overdue amount for period of default, the advances may be called-up.
y.	Product /Scheme Code	To be created afresh.
z.	DSCR	Minimum acceptable DSCR: 1.50.

“WE CARE”- An Initiative of ICAI for Senior Chartered Accountants

The Institute of Chartered Accountants of India (ICAI) since its very inception has always provided thought leadership to the generations in a proactive and progressive manner. ICAI has been playing a key role nationally, regionally and globally not only towards the growth of the profession, but also has been contributing to the business, industry and commerce across all sectors.

The reason behind the milestones achieved by ICAI is its hard-work, dedication and commitment of the CA fraternity & senior visionaries who have been guiding the accountancy profession with their selfless dedication, relentless commitment and rich values.

In these unprecedented times of COVID-19 outbreak, the ICAI has initiated number of steps to ensure that the accountancy profession in India is not only having inclusive growth but also to ensure that its members & students are kept updated on various professional matters of contemporary relevance. With our efforts, we are able to reach and connect with the different segments of our membership be it in practice, industry, public service, entrepreneurship or women.

In order to acknowledge the contribution of senior members to the Profession, ICAI has recently launched an initiative “We Care – A Unique Social Security Scheme and Benevolence Program for Senior CAs”, a unique social security and benevolence program for Senior CA members of age 75 years and above. This initiative would provide support to this valuable segment of ICAI fraternity which endeavours for providing respect, continuous engagement, care and support of the Profession by creating a sense of belongingness. The initiative was launched by Shri Arjun Ram Meghwal, Hon’ble Minister of State for Parliamentary Affairs & Heavy Industry and Public Enterprises through virtual mode in the presence of President, Vice-President & Central Council Members of ICAI.

Hon’ble Minister Shri Arjun Ram Meghwal while applauding the efforts being made by ICAI said “Such initiatives are need of the hour as care for elderly has been the pillar of Indian Heritage and our value system. It is heartening to learn that ICAI is taking concrete steps for expressing gratitude towards its elderly members & showing concern for their well-being & extending support to them as & when required.” The Minister further added “This initiative undertaken by ICAI is laudable and will set an example for many other organizations to emulate. This will also instill Indian traditional values in the younger generation & inculcate the sentiments of appreciating, respecting & caring for elders.”

“We Care” initiative aims to take stock of the wellbeing, health, financial condition and any other issue being faced by the senior Members.

On this occasion, CA. Atul Kumar Gupta, President, ICAI said “The Institute assiduously aspires to attain the Absolute Best for all its members and is diligently dedicated to their constant improvement and growth. ICAI stands tall as a facilitator and crusader of affirmative action and thereby letting consequent growth and development flow.”

President, ICAI further added “The Institute, over the years, has garnered paramount respect for meeting business environment changes with decisive action and discerning reaction. This has been possible with the wealth of experience of senior members, their strategic thinking for the betterment of profession & constant support.”

The initiative “We Care” would work for senior members by:

Building a technology based holistic support ecosystem
Dedicated helpdesk for 24×7 assistance
Need based Financial & other assistance for medical treatment & other issues

This initiative of the Institute is a humble attempt to put forward its gratitude towards the senior visionaries of the accountancy profession. ICAI would leave no stone unturned to respect, engage, care and support the senior CA members to live their life with dignity, independence & comfort.

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October, 30
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ICAI
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SC agrees to hear plea seeking directions for upcoming CA Examinations on 2nd November

SC agrees to hear plea seeking directions for upcoming CA Examinations on 2^nd November

The economic impact of the 2020 coronavirus pandemic in India has been largely disruptive. The lockdown though necessary has led to a disastrous impact on the economy. With an ever-increasing corona virus cases, lockdown was considered as an only solution to flatten the curve. However, the measures which were implemented to avoid a human disaster, have in turn led to the birth of several issues such as unemployment, recession, hindrance to economic growth, financial instability and so on.

Various state-level board exams, recruitment exams, university-level exams, professional exams and entrance exams were postponed across the country due to the coronavirus outbreak and national lockdown. The education system in schools, colleges and universities across the country has been severely impacted due to the ongoing situation. The CA exams held by Institute of Chartered Accountants of India (ICAI) were also postponed because of this very reason. The ICAI postponed the CA exam scheduled to be held in May and they were decided to be held in June-July. However, later ICAI decided to cancel May 2020 examinations and merge the May 2020 attempt with November 2020 examinations.

Now, the ICAI, has again postponed the November 2020 exams due to the Bihar elections by two weeks. Further, the ICAI is also offering an ‘opt-out’ option for students who are infected with COVID-19 or have symptoms of the disease. Students will have to provide a self-declaration to avail the option. It will continue throughout the November exams. These students will be allowed to carry forward their candidature with a due carryover of all benefits already available to students including the fee paid and exemptions for next examination. The next exams will be held in May 2021.

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The CA exams for this round are scheduled to begin on 21st November, 2020. The Supreme Court today said that it will hear on 2nd November, 2020 a plea seeking a standard operating procedure to be adopted for the CA exams by the ICAI this year. Earlier a PIL was also filed in the Supreme Court seeking quashing of the notification issued by the ICAI allowing Chartered Accountant (CA) aspirants to “opt-out” of CA exams this year due to COVID-19 and related issues. The present plea says that the concerned authorities have not taken steps for ensuring the health concerns of the stakeholders.

What was submitted in the petition?

The Supreme Court Bench of Justicesheard the petition filed by some CA aspirants on 27^th October.
The plea says that a significantly higher number of candidates are expected to take the exam in this round on account of the May cycle of exams standing cancelled. This fact, along with the cap of 100 persons for congregations imposed by the Union Ministry of Home Affairs, gives rise to the concerns of the petitioners.
The plea stated that ICAI refused to acknowledge the cap imposed on large gatherings when a query on this issue was raised by a stakeholder.
The CA examination is scheduled to be held between November 21, 2020 and December 14, 2020. The petitioners claimed that with the exams scheduled to begin in less than a month, ICAI had not taken adequate steps for holding of the exams in line with health guidelines issued amid the COVID-19 pandemic.
The plea calls for uniform safety guidelines to be put in place across the country, and prays that all candidates taking the exam be provided with equal facilities.

Course of action suggested in the plea

While pointing out that the ICAI is yet to notify the safety guidelines and SOP for proper implementation of these guidelines, the plea also makes a suggestion as regards symptomatic candidates.
It is suggested that a symptomatic candidate should be referred to the nearest health centre and that isolation rooms may be provided in each exam centre, and that symptomatic candidates be given an opportunity to take the exam at a later stage.
The plea also suggests that the ICAI must factor in the possibility of a sudden surge in COVID-19 cases, and prepare a mitigation plan for the same.
It also states that while additional exam centres are required to be set up, travel and accommodation facilities must also be provided for candidates expected to travel for the exam.
Appropriate directions may be issued to treat the e-Admit Cards, as E-passes for free movement of such candidates in containment/ red zones during examinations or alternative arrangements such as revised dates for the candidates from containment zones may be declared.
Specific and reasonable arrangements to be made to accommodate candidates appearing during the state elections like Bihar & Madhya Pradesh, as the exam date and poll dates are coinciding.
If not for everyone, then at least for the candidates, who are either residents of Containment Zone, tested positive after attempting one or two exams or unable to travel because of the restrictions in the said area of residence, the ICAI ought to come up with alternate solutions, including but not limited to Online Examinations for such students, upon submission of proof to the effect.
Free and or/reasonable accommodation and transport for candidates

Other issues pointed out in the plea

It is further pointed out that an option for candidates to change their exam centres within the same city is not provided as yet. The Supreme Court had earlier observed that the ICAI should consider permitting the students to opt out of the exams till the last day, as the situation around COVID-19 is dynamic and not static.
Correction window does not provide an option to the candidates to change their exam centre within the same city on account of any impediment, caused by the Covid-19 pandemic, that may prevent them from approaching the exam centre already assigned to them.
ICAI has failed to make any announcement that would ensure that arrangements have been made in order to accommodate a significant number of additional exam centres in big densely populated cities such as New Delhi, Mumbai, Kolkata etc.
Additional exam centres are required in all districts to mitigate risks and travel for candidates residing in other areas.

November, 2020 attempt is the last attempt under the old syllabus for candidates appearing for CA IPCC exams. Thus, in the event any candidate is refrained from taking the CA IPCC exams under the old syllabus on account of Covid-19 restrictions, ICAI ought to explore alternate methods to extend the validity of the old syllabus of CA IPCC on humanitarian grounds. The Court asked the petitioners, represented by Advocates Bansuri Swaraj and Astha Sharma, to serve a copy of the plea to ICAI and the Centre. The matter will be heard on November 2.

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