SBS Global

  Direct Taxes Partial relaxation with respect to electronic submission of Form lOF by select category of taxpayers in accordance with the DGIT (Systems) Notification №3 Of 2022. Reference is invited to Notification №03/2022 dated 16th July 2022 issued by Directorate of Income Tax (Systems) New Delhi in the exercise of powers conferred under Rule 131(1)/(2) of the Income-tax Rules mandating, inter alia, furnishing of Form 10F electronically. On consideration of the practical challenge being faced by non-resident (NR) taxpayers not having PAN in making compliance as per the above notification, and with a view to mitigate genuine hardship to such taxpayers, it has been decided by the Competent Authority that such category of Nonresident taxpayers who are not having PAN and not required to have PAN as per relevant provisions of the Income-tax Act,1961 read with Income-tax Rules, 1962, are exempted from mandatory electronic fil ing of Form lOF till 31’t March 2023. For the sake of clarity,

Background Under Section 143(3)(i) of the Companies Act, 2013 (2013 Act) , an auditor of a company is required to state in his/her audit report whether the company has an adequate internal financial controls (IFC) system in place and the operating effectiveness of such controls. Explanation to Section 134(5)(e) of the 2013 Act defines IFC to include policies and procedures adopted by the company for ensuring orderly and efficient conduct of its business, accuracy and completeness of the accounting records, and timely preparation of reliable financial information. The Institute of Chartered Accountants of India (ICAI) had issued a Guidance Note in November 2014. This Guidance Note has been revised subsequently and the ICAI issued a revised ‘Guidance Note on Audit of Internal Financial Controls Over Financial Reporting’ (Guidance Note) on 14 September 2015. What is Internal Financial Control Over Financial Reporting? Internal Controls are to be an integral part of any organization’s fina