Veeresh and Ajay Chartered Accountants

08/08/2025

🆕 Big Change: New UAN Registration is Now ONLY via UMANG App! 🆕

EPFO has mandated that all new Universal Account Number (UAN) registrations must be done digitally through the UMANG app using Aadhaar-based face authentication.
➡️ No other process will be allowed going forward.

Existing UAN holders:
No action needed! Your access to EPFO services continues as usual.

Steps for new UAN registration:
1️⃣ Download and open the UMANG App
2️⃣ Go to the EPFO section
3️⃣ Select ‘Direct UAN Allotment’
4️⃣ Enter Aadhaar and complete face authentication
5️⃣ Instantly generate your UAN—no employer intervention, no paperwork

Why this update?
To make the process seamless, secure, and fully self-service for employees.

Tag your HR team, new joiners, or anyone who needs a new UAN!

05/06/2025

🛑 Don’t Rush to File Your ITR Just Because Forms Are Live 🛑

ITR-1 and ITR-4 may be available—but filing too early can backfire.

🔍 AIS & Form 26AS may not be fully updated yet.
TDS and SFT returns are due by 31st May, and it typically takes 7–10 days for this data to reflect in the system.

📬 Filing before that may lead to:

Income mismatches

System-generated notices

Missed reporting of transactions

💡 Wait until mid-June for a complete financial picture before filing.

Filing early ≠ Filing right.
Accurate filing = Peace of mind.

14/03/2025

https://blog.cavac.in/2025/03/procedure-for-incorporation-of-company.html

Incorporating a company offers several benefits, including protection of personal assets, easier access to funding, perpetual existence, and structured operations. Depending on business needs, different types of companies can be registered, such as a Private Limited Company, Public Limited Company,....

01/02/2025

🚨 Important Update: Penalties for Filing Updated Returns Under Section 139(8A) 🚨

The Finance Bill 2025 has introduced key amendments to Section 139(8A), which governs the filing of updated returns. This provision gives taxpayers the opportunity to rectify or disclose any omitted income, but with penalties based on the timing of the updated return.

Here’s a breakdown of the penalties for filing late:

📅 Within 12 months: Additional tax of 25% of the tax and interest payable.
📅 After 12 months but before 24 months: Penalty increases to 50% of the tax and interest payable.
📅 Newly introduced: Filing beyond 24 months comes with increased penalties:
60% if filed between 24 to 36 months.
70% if filed between 36 to 48 months.

These penalties emphasize the importance of filing returns early and ensure taxpayers take advantage of the compliance window. The extended timeframe with higher penalties encourages timely rectifications while still allowing flexibility.

⚖️ This is a significant move towards promoting transparency and accountability in tax compliance!

01/02/2025

Budget 2025 – Revised Tax Regime Highlights

The government has introduced modifications to the tax slabs under the new tax regime. Notably, the extension of the Rebate under Section 87A ensures that individuals with an income tax liability up to ₹12,00,000 will effectively incur zero tax liability.

Below is the tabular representation of the revised tax slabs:

Rebate u/s 87A:
The rebate has been extended so that individuals with an income tax liability up to ₹12,00,000 will not have any tax payable, offering considerable relief to middle-income earners.

Opinion:
This restructuring strikes a balance between reducing the tax burden on a wider segment of taxpayers while maintaining a progressive tax system. Stakeholders should continue to monitor its impact on revenue generation and fiscal policy to ensure long-term economic stability.

Feel free to share your thoughts on these changes.

31/01/2025

🚀 Attention CAs: Save Hours with DeepSeek AI! 🚀

As CAs, we know how tedious manual data extraction can be. Recently, I had 80 FIRA certificates and needed to extract Reference Numbers, Amounts, and Payment Dates. Manually, this would’ve taken over an hour, but DeepSeek AI did it in just 5 minutes—with flawless accuracy!

Why DeepSeek AI is a Game-Changer for CAs:
✅ Tabular Data Extraction: Organizes data into clean, structured tables.
✅ Speed: Cuts manual work by 90%.
✅ Accuracy: Perfect for compliance and audits.
✅ Ease of Use: No coding—just upload and go.

Why It Matters:
Save Time: Focus on high-value tasks like analysis and advisory.

Reduce Errors: Eliminate manual entry mistakes.

Scale Your Practice: Handle more work without extra effort.

While tools like ChatGPT are great for general tasks, DeepSeek AI excels in data extraction—making it a must-have for CAs. Whether it’s FIRA certificates, GST returns, or bank statements, DeepSeek AI can transform your workflow.

I’d love to hear from you:
How have you leveraged AI to streamline your work? Share your experiences below! Let’s learn and grow together. 💡





Looking forward to your insights! 👇

18/01/2025

🚨 Timely Response to Income Tax Notices is Crucial! 🚨

The story in this image is a stark reminder of the importance of keeping a regular check on any communications from the Income Tax Department. Here's a summary:

A farmer from Karnataka, trading in Futures and Options (F&O) back in FY14, made a loss of ₹26 lakh but did not report the F&O transactions in his ITR since there were no profits. Fast forward to 2022, and a notice for reassessment and clarification on high-value transactions goes unnoticed due to his lack of email checks.

Eventually, an ex-parte order treats ₹69 crore in sales and purchases as income, leading to a demand of ₹68 crore including taxes, interest, and penalties! 😨

He now finds himself in a bind—unable to get a stay due to the inability to deposit 20% of the tax, facing bank account freezes, and the risk of more assets getting attached while he files an appeal.

This serves as a critical lesson:

🔍 Check Your Emails Regularly
📬 Ensure Timely Responses to Income Tax Notices
⚖️ Engage a Professional Early On

Don't let a small oversight turn into a monumental financial burden!

31/12/2024

📢 Important Update for Taxpayers!

The CBDT has extended the deadline for furnishing Belated/Revised Returns of Income for the Assessment Year 2024-25 in the case of Resident Individuals.

🗓️ The previous deadline of 31st December, 2024 has now been extended to 15th January, 2025.

This extension provides taxpayers additional time to file their returns and ensure compliance.

🔗 Circular No. 21/2024, dated 31/12/2024, issued by the CBDT formalizes this extension.

28/11/2024

💡 Form 71: Streamlining TDS Credit for Income Declared in Previous Years 💡

In cases where income is declared on an accrual basis but TDS is deducted in a subsequent year, taxpayers used to face significant challenges. The only available options were to either revise the ITR or file an offline rectification, both of which were cumbersome.

However, with the introduction of Form 71 under Rule 134 of the Income Tax Rules, taxpayers now have a clear and structured solution. This form allows individuals and businesses to claim TDS credit in the year of accrual, even when the TDS is deducted in a later year.

Key points to remember:
✅ The application for Form 71 must be made within 2 years from the end of the financial year in which the TDS was deducted.
✅ This process helps avoid income-TDS mismatches, simplifying compliance for those following accrual-based accounting.
✅ It's a significant relief for taxpayers, eliminating the need to revise ITRs or navigate offline rectifications.

22/10/2024

🌐 Navigating Crypto Accounting & Taxation: Why It Matters! 📊

In the rapidly evolving world of cryptocurrency, maintaining accurate accounting records is not just beneficial—it's essential. As crypto transactions spread across different wallets and exchanges, the complexity of bookkeeping increases, underscoring the importance of consolidation. Here's why:

1️⃣ Comprehensive Overview: Consolidating crypto transactions from various wallets and exchanges with entries in bank statements provides a holistic view of financial activities, helping identify discrepancies and ensuring accuracy 10 .

2️⃣ Closing Balance Verification: Regularly verifying the closing balance of crypto assets is crucial to detect any differences. This verification acts as a safeguard against errors and enhances the integrity of financial records 1 3 .

3️⃣ Facilitating Tax Compliance: Accurate accounting is vital for effective tax reporting. With clear, consolidated records, navigating the complexities of crypto taxation becomes less daunting, ensuring compliance with relevant tax laws 2 5 .

Incorporating robust crypto accounting practices not only streamlines financial management but also positions businesses and individuals to make informed decisions in the dynamic digital asset landscape. 📈🏦

Join the conversation and share your thoughts on the importance of crypto accounting and taxation! 💬

16/10/2024

📢 **Important Update for Tenants and Landlords Regarding GST Compliance**

Starting October 10, 2024, there are significant changes in GST applicability that all tenants and landlords need to be aware of.

🔍 **Key Changes:**
- If you are a **registered tenant** renting from an **unregistered landlord**, you will be required to pay 18% GST under the Reverse Charge Mechanism (RCM).

💼 **ITC Benefit:**
- The good news is that tenants can claim Input Tax Credit (ITC) for the GST amount paid under RCM, which can help with cash flow management.

📊 **Summary of GST Scenarios:**

1. **Both Unregistered:** No GST
2. **Tenant Unregistered, Landlord Registered:** 18% FCM (Landlord pays)
3. **Both Registered:** 18% FCM (Landlord pays)
4. **Tenant Composition Dealer, Landlord Registered:** 18% FCM (Landlord pays)
5. **Tenant Composition Dealer, Landlord Unregistered:** 18% RCM (Tenant pays)
6. **Tenant Registered, Landlord Unregistered:** 18% RCM (Tenant pays and claims ITC)

Understanding these changes is crucial for effective tax compliance and financial planning. Let’s ensure we are all prepared for this update!

10/10/2024

💡 Considering a Housing Loan? Public Sector Banks Might be the Better Option!

When it comes to housing loans, public sector banks often offer significant advantages over private banks, with interest rates that are 0.3% to 0.5% lower on average. Banks like Bank of India and Bank of Baroda not only provide these lower interest rates but also frequently offer zero processing fees.

📊 For example, on a housing loan of ₹2 crore over a 20-year period, this difference can save you approximately ₹3 to ₹4 lakh in interest and processing fees.

Additionally, public sector banks align with RBI guidelines, meaning no penalties on pre-closure of your housing loan—a substantial benefit for those looking to close their loan early.

If you’re considering a housing loan or having a housing loan, exploring the options available with public sector banks could lead to substantial savings and added flexibility in your financial journey! 🏠💰