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Are you feeling the pressure of meeting yet another deadline? Well, there's one deadline that you want to take advantage of - linking your PAN card with an Aadhaar card! The Central Board of Direct Taxes (CBDT) had initially announced a deadline of March 31, 2023, for all citizens to link their PAN Card with their Aadhaar Card, but to provide more time for the taxpayers, the government decided to extend the deadline to June 30, 2023. This extension provides citizens additional time to comply with the mandate and complete the necessary steps to link their PAN and Aadhaar Cards. Failure to do so can result in penalties and consequences under the Income Tax Act. But don't worry; Indian Salahkar got you covered. Our team of experts will guide you through linking your PAN card with an Aadhaar card and explain why it's important to do it before the deadline. So, let's dive in and get your PAN card linked with your Aadhaar card ASAP!

As June 30, 2023, approaches for linking PAN (Permanent Account Number) Cards with Aadhaar Cards, many individuals and businesses still need to be aware of the consequences of failing. The government has made it mandatory to link the two documents to eliminate duplicate PAN cards and ensure tax compliance. As a business consultancy firm, businesses need to be aware of this deadline and take action to link their PAN card with their Aadhaar card before it is too late.

Firstly, it is important to understand the implications of failing to link a PAN card with an Aadhaar card. If the two documents are not linked by the deadline, the PAN card will become inoperative, which means it cannot be used for financial transactions or filing tax returns. This can lead to serious consequences, including penalties and legal action. Additionally, businesses may face difficulties availing of government subsidies and schemes, completing KYC formalities, and conducting financial transactions.

Linking a PAN card with an Aadhaar card is a simple process and can be done online through the Income Tax Department's e-filing portal or the Aadhaar card portal. It can also be done by visiting a PAN service centre or an Aadhaar enrollment centre. Businesses should ensure they have all the necessary information and documents ready before starting the process, such as PAN card number, Aadhaar card number, and name mentioned on the Aadhaar card.

Linking PAN Card with Aadhaar Card through e-Filing Portal:

1. You can also link your PAN card with an Aadhaar card by sending an SMS to 567678 or 56161. The format for the message is "UIDPAN (space) Aadhaar number (space) PAN number."
2. Another way to link your PAN card with an Aadhaar card is to visit a PAN service centre and submit a form. You must carry a photocopy of your Aadhaar card, PAN card, and the original documents for verification.
3. You can also link your PAN card with an Aadhaar card by calling the toll-free number 1800-180-1961 and following the instructions.
4. It's important to link your PAN card with your Aadhaar card to avoid any penalties or consequences under the Income Tax Act. Once your Aadhaar card is linked to your PAN card, you can e-verify your income tax returns using Aadhaar OTP.

PAN (Permanent Account Number) card is an important document issued by the Indian Income Tax Department. It consists of a ten-digit alphanumeric code unique to every individual, company, or entity that holds it.

The PAN card serves several important purposes:

  Identification: PAN card serves as a valid proof of identity for various purposes, such as opening a bank account, getting a credit card, buying property, applying for a loan, etc. It is widely accepted as a valid form of identification across India.

  Taxation: A PAN card is mandatory for individuals and entities who earn taxable income in India. It tracks their tax payments and ensures compliance with the Income Tax Act.

  Financial transactions: PAN card is required for all financial transactions above a certain threshold, such as buying or selling property, making investments, etc.

  Government subsidies and schemes: PAN card is required for availing of various government subsidies and schemes, such as LPG subsidies, scholarships, etc.

  KYC compliance: PAN card is essential for completing Know Your Customer (KYC) formalities for various financial services.

At Indian Salahkar, our services are specialized in helping businesses of all sizes and industries reach their full potential. With a team of experienced professionals and a proven track record of success, we are dedicated to providing our clients with the guidance and support they need to achieve their goals and overcome any challenges they may face. Whether you are just starting or looking to take your business to the next level, our personalized approach and comprehensive range of services can help you navigate the complexities of today's ever-changing business landscape confidently and easily. If you are ready to unlock the full potential of your business, we invite you to avail our services and experience the difference our expertise and dedication can make.

For more details please visit our website www.indiansalahkar.com

Or call 9982298229 or send an email to info@indiansalahkar.com

Avoid penalties and consequences; link your PAN card with your Aadhaar card now with Indian Salahkar, India's Best Business Advisory Firm. Best Business Advisory Firm.

Are you looking for a professional accounting service in India for ISO & TRADEMARK registration? Well, you have reached the right place, welcome to Indian Salahkar, one of the best Business Advisory Firm in India. A global acknowledgement certification for any product or service is an essential and primary requirement to stabilize its credibility. ISO is a globally accepted and appreciated certification to measure the parameters and standards of an organisation or institution. Trademark registration is a branding of your company. Slogans, logos, graphics, colours or anything that gives a unique identity to your organisation is a Trademark. Trademark registration is required to protect these distinctive features so that you can own its entitlement. For instance, when you name your child, you create an identity for him and society. Likewise, when you name your brand its identity is created in the market. It increases a brand's market value and growth in business. From a marketing and advertisement perspective, it enhances value, worth, credibility, and popularity.

Why does your organisation need an ISO certification?

ISO (International Organization for Standardization) certification is a hallmark of quality and credibility for any organisation. To achieve international quality recognition in measuring the standards of a company's ethical ground to technical ground, ISO certification is a must to ensure the worthiness of a system. It is not only an asset to an organisation but ensures the right decision-making and other qualitative approaches that make a company grandstand with progress.

Types of ISO Registration:

1.ISO 18001: 2007 - OCCUPATIONAL HEALTH & SAFETY: (OH&S)

There are two categories in (OH&S) section. The first one is OHSAS (OCCUPATIONAL HEALTH & SAFETY ASSESSMENT SERIES) which is basically a procedure-based guideline. It manages OH&S hazards and other internal issues. It only concentrates on the risks, not opportunities or other dynamic issues. The second one is ISO 45001 which is a single framework for organisations that wish to improve their OH&S performance. It mainly focuses on risks and opportunities. It is process based and covers all dynamic causes. Our expert panel will assist you to step by step follow-up while filing for registration and explain important information issued by the Government.

2.ISO 20000: 2011 - IT MANAGEMENT SERVICES

It is a service management system standard. There are specific requirements of a service provider to improve a Service Management Service which include the design, transition, delivery and improvement of all essential services in the management processes.

3. ISO 22000: 2018 - FOOD SAFETY

This ISO certification is a process designed to emphasize the improvements in the quality of food organizations by identifying, evaluating and controlling food safety risks such as physical, chemical, microbiological and other hazards in food production. It circulates a generic document to all organizations in the food chain, irrespective of size and complexity.

4.ISO 9001: 2015 - QMS (QUALITY MANAGEMENT SYSTEMS)

This abstract is based on the requirements of the quality management system in an organisation. The QMS attributes techniques, resources, assets and cultural values that strengthens the focus on purchaser delight and organizational efficiency. Get your ISO certifications done in a hassle-free procedure. Indian Salahkar stands out to be the best business accounting firm in India for its easy and quick services and facilities.

5.ISO 14001: 2015 - ENVIRONMENT

It is a systematic framework that monitors the direct and long-term impact of any company's products and processes on the environment. It helps in the successful monitoring and managing of essential aspects like emissions, waste management, natural resource use and energy efficiency.

6. ISO 27001: 2013 - INFORMATION SECURITY MANAGEMENT SYSTEM:(ISMS)

To monitor any organisation's information risk management processes ISMS framework policies are required. It deals with all the legal, physical and technical aspects.

7. ISO 13485: 2016 - QUALITY MANAGEMENT FOR MEDICAL DEVICES

It deals significantly with the quality management system of any hospital or medical enterprise. It demonstrates the ability to provide medical devices and related services that include the design, development, production and servicing of a medical device.

DOCUMENTS REQUIRED FOR ISO REGISTRATION:

•  Firm Name And Registered address of the firm
•  Business activities of the firm
•  Copy of PAN, COI and MOA (if Company)
•  Copy of One legal Document from the following:
•  GST certificate
•  FSSAI certificate
•  MSME certificate
•  Two copies of sales/purchase bill

Types Of Trademark Registration:

1. Product Mark

A product mark is applied to goods or products. It preserves the identity and reputation of the product and its organisation. Trademark registration that is filed under 1-34 is known as product marks.

2. Service Mark

It is very much similar to the product mark but it deals with the features of a service. If the product mark is a procedure then the service mark is a process. And it comes under 35-45 which is classified as a service mark.

3. Shape Mark

To represent a group or unique characteristics of the product collective mark registration is required. Be it an association, a public institution, or a section 8 corporation. For example - A Chartered Accountant can use the CA designation, not others.

4.Collective Mark

It is otherwise known as trade dress. Customers recognize the product easily from its shape that's why companies manufacture the products with their own trademark or shape.

5.Pattern Mark

This includes a specific design or pattern of the product. It authenticates the registered pattern and differentiates the product from others. It emphasizes goodwill and confidence.

6.Sound Mark

You must have seen a sound that comes with the logo or motion logo at the beginning or end of a commercial's visual ad. Be it a laptop or phone, the brand authorises its tune, this is called a sound mark.

DOCUMENTS REQUIRED FOR TRADEMARK REGISTRATION:

•  ISO 18001: 2007 - OCCUPATIONAL HEALTH & SAFETY: (OH&S)
•  Aadhar Card of Individual / Director / Partner
•  PAN Card of Individual / Director/ Partner
•  Photo of individual / Director/ Partner
•  Brand Logo (if any)
•  Tag line to be used with Brand Logo , if applicable
•  Digital Signature Of individual/Director/Partners
•  Additional documents for private Limited/LLP/Partnership Firm/Company
•  Certificate of incorporation
•  Memorandum of Association and Article of Association
•  Start up Registration certificate/ MSME certificate, If applicable

Things to remember:

•  To avoid a mounting risk on brand equity you should renew your trademark registration every 10 years.
•  If you have applied for trademark registration and your registration is under process you can use the  symbol with your brand name or logo. It often takes 8-9 months to  complete the registration process if subject to objection or opposition raised.
•  If your trademark registration is completed you can use the  symbol.
• Issuance of both Trademark Registration and ISO certification are legal documents that enhance the credibility to start a company.

Private limited registration company in India is the oldest legal entity approved by the Ministry of Corporate Affairs. Do you know many big industries or companies were first private limited companies? These days the startup culture is growing like mushrooms. A private limited company is like a startup that started with a small-scale budget and employees. Private limited companies are owned by non-governmental organizations or a small number of shareholders or members of a company. Its shares don't enter the platform of trading in public. The Ministry of Corporate Affairs governs Private limited registration company in India, The Companies Act, 2013 and the Companies Incorporation Rules, 2014. This Act allows the union shareholders and other companies with different levels of liabilities. Isn't it reliable to invest in an enterprise that holds a registration? If your company holds a private limited company registration, you can benefit from many advantages, one of which is fundraising for your company from investors. The same goes for banks and financial institutions; they give loans or debts to a company with legal registration. Want to raise equity funds for your business entity? Visit Indian Salahkar, India's leading business consultancy firm, to get detailed guidance on your business registration processes at a competitive price. Suppose you want to focus on your company's future dealings with third parties. In that case, you must be aware that large businesses with supplier selection criteria always eye on registered businesses rather than unregistered ones. Make your company's brand image shine and create a dynamic change with your institution's growth, value and ethics. A company must hold preliminary documents before applying for company registration like The Memorandum of Association (MOA) and Articles of Association (AOA). Along with the company incorporation form, the MOA & AOA should be submitted to the Registrar of the Companies (ROC). Both are the pillar of the construction of a company as they focus on and include the scope of work, objectives,rules and internal management. It must be crafted with precision and clarity.

The procedure of Private Limited Company Registration in India:

The registration process for private company registration has been modified by the Ministry of Corporate Affairs. The previous SPICe (Simplified Proforma for Incorporating a Company Electronically) form has been updated to a new web form called SPICe+ which is an easier process to file now. SPICe+ is divided into two parts as described below:

Part A - The Reservation of Company Name:

•  The name reservation of the company is applied in Part A of the form Spice+.
• Both name approval for the proposed Company and filing for company registration services can be processed at once.

Part B - File to avail services as follows:

1. Incorporation
2. DIN allotment
3. Mandatory issue of PAN ( Permanent Account Number )
4. Mandatory issue of TAN ( Tax Deduction Account Number)
5. Mandatory issue of EPFO ( Employees' Provident Fund Organisation) registration
6. Mandatory issue of ESIC (Employees' State Insurance Corporation) registration
7. Mandatory issue of Profession Tax registration(Maharashtra)
8. Mandatory Opening of a Bank Account for the Company and allotment of GSTIN ( Goods and Services Tax Identification Number) (if so applied for)

Eligibility of Directors:

•  Photograph of Directors

•  PAN card of Directors

• Aadhar Card/Voter identity card of directors

•  Copy of electricity bill/landline bill, water bill - Not older than two months.

•  Rent agreement (for rented premises)

•  Identity proof of ownership of the place of business/ Registered office space in India

•  There should be a minimum of two members to act as shareholders.

•  Of the above 2 directors at least one should be an Indian Resident.

•  6 Names of the Proposed company ( Arranged in preferential order)

•  DIN is a unique Director Identification Number issued by the Central Government to the person who wants to become a Director or an existing Director of a company.

•  It is an 8-digit unique identification number that occupies lifetime validity. DIN helps in maintaining the database of the details of directors in a company.

•   One can be the director of two or more companies but is only assigned one specific Director Identification Number.

Advantages of Private Limited Company Registration:

The most significant advantage of your company registration is that it secures the company name

•  It entitles a separate legal entity.

•  It accomplishes a limited liability.

•   It establishes networking for fundraising from angel investors or VCs, or family.

•   It is free and easy to transfer shares.

•  It formulates the processes of financial credibility and FDI is easily allowed.

•   It gives you ownership of property. .

•  It becomes simple to enlist, manage and run the company.

It is essential to file Annual Accounts and Returns once a year for the private limited companies to provide details of the shareholders and directors to the Registrar of Companies (ROC).
In the process of the Annual Filing, the following forms need to be submitted to the ROC:

•  Form MGT-7 (Annual Return):

Every Private Limited Company is supposed to file its Annual Return within 60 days after the commencement of the Annual General Meeting. One can file an annual report between 1st April to 31st March.

•  Form AOC-4 (Financial Statements):

Balance Sheet along with a statement of Profit and Loss Account and Director Report of every private limited company need to be filed in this form within 30 days of holding of Annual General Meeting. The planning and execution to start a business or private company are not easy and it also comes with great responsibilities. To make your ride smooth in the journey of entrepreneurship, Indian Salahkar is extending a helping hand to initiate the first step of your dream project. Scroll down our website and drop your queries, our expert team will reach out to you instantly and provide you with a hassle-free registration process follow-up. Avail of the company registration services at the best price in India.

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Browse our website www.indiansalahkar.com to know more details.
Or call 9982298229 or send an email to info@indiansalahkar.com

Do you want to kick start your restaurant business but find the technicalities of paperwork challenging to deal with? Don't let the formalities of the registration process dull the sparkle of your dream business. Gear up and take the first step of your enterprise by applying for Food License Registration Certificate with Indian Salahkar, the face of credibility for providing timely and efficient quality services to its clientele. Food license registration certificate is an initiative by FSSAI (Food Safety and Standards Authority of India)/FOSCOS to prevent food adulteration and the selling of poor-quality food in all food business operators, including restaurants, eateries, canteen and more. From information about food safety, regulations, quality purity & other vital factors, FSSAI/FOSCOS strengthens customers' trust in the food products they buy. Get the registration of your restaurant business done by Indian Salahkar following all the Food Safety and Standards Act guidelines, 2006. Charter the cart of your dream project and shine like a star in the crowd. Choose a leading business accountancy firm in India like Indian Salahkar to upskill your business with all the required formalities. Our business consultancy firm will handle all the procedures and legalities; when our team of experts backs you, there is no space for error.

We have pooled our expertise in the field of business consultancy firms for our company's unity, integrity and work ethics to help people with strategic solutions to deal with challenging issues. We show the way you steer and build the business. Achieve exponential success in your business and create brand equity under step-by-step guidance from our professionals. Due to the emergence of numerous food chain industries, it became difficult to measure quality control by departments assigned by the government. FSSAI/FOSCOS was set up considering the importance of monitoring food safety registration and regulation in India. All food manufacturers are required to have an FSSAI license to function in the market. The FSSAI/FOSCOS License ensures the quality of the food at your Restaurant. Whether it's a restaurant's menu or pamphlets, the FSSAI/FOSCOS logo adds a grandstand value and increases the Restaurant's credibility. FSSAI/FOSCOS also helps in the business expansion and standardization of your Restaurant's kitchen operations. FSSAI/FOSCOS Registration is equally vital and mandatory for restaurants to obtain. If your Restaurant's turnover is more than 20 crores per annum, then you need to apply for a central license, and the registration fees are higher than others with a lower turnover per annum. If your Restaurant's turnover is upto 20 crores per annum, you are required to apply for a State license.

Run your dream business and achieve heights of success with an FSSAI/FOSCOS registration to avoid legal hindrances in future.There are numerous benefits of having a food safety license, such as:

•  The FSSAI/FOSCOS, or Food Safety and Standards Authority of India, launched a Food Licensing & Registration System (FLRS), an online application to facilitate Food Business Operators (FBO) in India to apply for License/Registration Certificates and track their applications during processing. Though, the Food Safety Compliance System (FoSCoS), launched back in 2012 for issuance of pan-India FSSAI/FOSCOS Licences and Registration is a more technically upgraded version than FLRS. It makes the FSSAI/FOSCOS registration process easier and more user-friendly.

  For all food-related business like manufacturers, traders, restaurants, small eateries, importers, retailers, dairy farm and others, the FSSAI/FOSCOS registration and the 14-digit FSSAI/FOSCOS license number is mandatory. You need to submit essential documents of your Restaurant at the time of applying like:

1. It increases clientele for your business, as consumers have become extra cautious about food intake. Even before purchasing any goods, they check for an FSSAI/FOSCOS logo.

2. Even if you don't have extended hours to sit to fill up the lengthy paperwork, you can request FSSAI/FOSCOS accreditation. By following FSSAI/FOSCOS registration regulations, you can successfully run your business along with experiencing personal satisfaction.
3. To secure a dominant market position and strengthen your business or corporate image, you should proudly display your license on your goods.

•   The restaurant name/company name
•  Copy of your identification proofs like PAN card, passport, driving license, or Aadhar card
•   Latest Bank account statement
•   Address proof - latest utility bill, utility bill with consent if it is in the name of any family member
•   Food safety management strategy
•   List of food products to be manufactured/processed/traded
•   Rent agreement if it is a rented property
•   Photo (Individual/Proprietor/Partner/Director) with signed specimen signature
•   Email id and mobile number

Champion your dreams and overcome your struggle with our expert's bespoke lead generation strategy and be ahead of time with guidance from the best food license registration provider in India. Visit Indian Salahkar for a customized plan of action and schemes for the license certificate. We deal with challenging procedures efficiently and solve lengthy paperwork with hassle-free techniques for you to apply for registration. Indian Salahkar stands out as the best business advisory team in India for its unique and precise guidance tips to its customers and for providing a panel of talented Chartered Accountants to assist with a minute detailing of information in the official procedures.

Let your Restaurant shine with more STARS and an FSSAI/FOSCOS logo.

For more details please visit our website www.indiansalahkar.com
Or call 9982298229 or or send an email to info@indiansalahkar.com

Ministry of Agriculture and Farmers Welfare has launched The Venture Capital Assistance Scheme. This scheme provides financial support in the form of interest free loan by Small Farmers Agribusiness Consortium (SFAC) to qualifying projects.

WHO CAN APPLY?

Following persons can apply under this venture capital assistance scheme

1. Farmers
2. Producer Groups/Producer Companies
3. Proprietary Firms
4. Partnership Firms
5. Self Help Groups (SHG)
6. Agripreneurs (Entrepreneurs in the field of agriculture)
7.  Units in agriexport zones
8. Agriculture graduates individually or in groups

HOW TO APPLY:

Applicant can file application only online; offline application will not be accepted. Application can be filled online of SFAC website.

DOCUMENTS REQUIRED:

Applicant required following documents for filling application:

1. Request letter by promoters on letter head of the company/firm addressed to the Managing Director SFAC, New Delhi.
2. Bank’s approved appraisal note bearing signature of sanctioning authority with terms of sanction of term loan.
3. Sanction letter of Sanctioning authority addressed to recommending branch.
4. Equity Certificate:

1. CA certificate in case of Partnership or Proprietorship firms.
2. Form-2(PAS-3), FORM-5(SH-7) and other documents in lieu of FORM-23 filed with ROC.

5. List of farmers or backward linkage supported by an agreement.
6. Promoter’s affidavit that they have not availed VCA in the past.
7. Bank’s confirmation letter that they will not release primary & collateral security without SFAC consent.
8. Copy of Bank’s inspection report.
9. If term loan and cash Credit already sanctioned than up-to date copy of that statement.
10. CA Certificate in case of unsecured loan.
11. Justification for margin on working capital.

The Central Board of Indirect Taxes and Customs (CBIC) introduced a new form called PMT-09 for transferring the amount available in Electronic Cash Ledger between various major and minor heads of GST. With the help of this form taxpayer can reallocate wrongly paid amount of tax.

PMT-09 is available on GST portal since 21-04-2020. This option is available under Electronic Cash Ledger Tab. All tax payers are eligible to transfer amount available in Electronic Cash Ledger. This form enables taxpayers to make transfer of any amount of tax, penalty, interest, fees or others available under one head to another head. 

KEY POINTS:

1. Major Head – IGST, CGST, SGST and Cess.
2. Minor Head – Tax, Interest, Penalty, fees and others
3. Any amount utilized for payment of tax and removed from Electronic Cash Ledger cannot be reallocated.
4. This form (PMT-09) only allows shifting of amount available in Electronic Cash Ledger.

PROCEDURE TO FILE THIS FORM:

1. Login to GST Portal
2. Navigate to services > Ledgers > Electronic Cash Ledger
3. Prepare form GST PMT-09
4. File with EVC or DSC

Accelerate with NSG

National Security Guard (NSG) is World Class Armed Force. NSG deals with anti-terrorist activities. The NSG is specially equipped and trained for specific situations and used in exceptional circumstances.                        
National Security Guard (NSG) is looking for new innovations and technologies. NSG wants to engage with technology innovators and startups to obtain solutions for below problem statement.

Detailed Eligibility Criteria:

All start-ups, innovators, individuals who have a solution to the problem statement are eligible.         

Relevant Stakeholder:

1. Ideation Stage Startup
2. Individual
3. Validation Stage Startup
4. Early Traction Startup
5. Scaling Stage Startup

Relevant Industry:

1. Aeronautics aerospace & Defence
2. Robotics
3. Safety
4. Security Solutions

Themes for Challenges:

1. Drones
2. Security Solutions
3. Defence

Problem Statement:

Counter measures Against a ROGUE AUTONOMOUS DRONE Including Swarm of Drones

Incentives:

1. Fiscal Incentives

• First Winner: INR 5,00,000/-
• Second Winner: INR 3,00,000/-
• Third Winner: INR 2,00,000/-

  02. Non-Fiscal Incentives:

• Mentorship and Opportunity for paid pilots

Procedure Post Submission:

Apply & Contribute to nation building now

Timeline:

Application Start Date: 12^th Feb, 2020

Application End Date: 31^st May, 2020

Result Date: 30^th Nov, 2020

LOAN FOR SC/ST OR WOMEN ENTREPRENEURS:

Government runs various schemes for women or Scheduled Caste (SC) or Scheduled Tribe (ST) entrepreneurs. Under Stand Up India Scheme various finance facilities provided to entrepreneurs. This scheme facilitate finance from banks between 10 lakh to 1 crore to atlest one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one women entrepreneur per bank branch for setting up a Greenfield Enterprise. This Greenfield Enterprise may be in trading, manufacturing or service sector. In case of corporate entities at least 51% of shareholding and controlling stake should be held by Scheduled Caste (SC) or Scheduled Tribe (ST) and women entrepreneur.

ELIGIBILITY:

1. Borrower should be above 18 years of age.
2. Borrower should be Scheduled Caste (SC) or Scheduled Tribe (ST) and women entrepreneur.
3. Unser this scheme loan is available for only Greenfield Project.
4. Borrower should not be in default to any bank or financial institution.

HOW TO APPLY:

This scheme covers all branches of Scheduled Commercial Banks.  Borrower can apply for loan in three potential ways:

1. Directly through Bank Branch
2. Through Small Industries Development Bank of India (SIDBI) Stand Up India Portal
3. Through the lead District Manager

GST NOTIFICATION NO. 49/2019-CENTRAL TAX

The CBIC issued a notification 49/2019-Central Tax dated 9th October 2019, inserting a new sub-rule (4) to rule 36 of the Central Goods and Service Tax Rules, 2017. This rule provides restriction in availment of input tax credit.   

As per rule 36 and sub rule 4, taxpayers filing GSTR-3B can claim provisional Input Tax Credit to the extent of 10% of the eligible credit available in GSTR-2A. The eligible credit means input tax credit arrived on the basis of invoices or debit notes uploaded by the supplier in GSTR-2A. The input tax credit was earlier restricted up to 20% from 9th October 2019 till 31st December 2019 and from 1 January 2020 the new percentage applies.

IMPACT OF THIS RULE ON TAXPAYERS:
Before this rule, all taxpayers are allowed to claim input tax credit on self declaration basis i.e. the taxpayer declares the eligible input tax credit under various heads of tax (CGST, SGST, IGST). Before this rule, the taxpayer has no compulsion to reconcile input tax credit figure with GSTR-2A. In this scenario, even if GSTR-2A shows less credit than books of accounts, taxpayer can claim difference of that input tax credit as a provisional credit.   
After implementation of rule 36 and sub rule 4, the provisional input tax credit will be restricted to the extent of 10% of eligible credit reflected in GSTR-2A of that period and the balance tax liability of GST to be paid in cash.
As an impact of this rule working capital of taxpayers will be affected because he will be required to pay tax liability in cash due to non reflection of tax credit already paid to supplier on tax invoice raised to him. 

HOW TO CALCULATE PROVISIONAL TAX CREDIT:
Let’s understand the impact of new rule on input tax credit. If the taxpayer ids filling his GST return for the month of January-2020 than how he would claim input tax credit in his GST Return and understand impact of this rule on taxpayers:   

Sl No     Particulars                                                                            ITC Before this rule    ITC After this rule
1            Eligible Input Tax Credit as per Books of Accounts                      50,000                       50,000
2            Eligible Input Tax Credit as per GSTR-2A                                    20,000                       20,000
3            Input Tax Credit that can be claimed as provisional credit           30,000                         2,000

                                                                                                                                                  (20,000*10%)
4=(2+3) Total Input Tax Credit that can be claimed in GSTR-3B               50,000                       22,000
5=(1-4)  Input Tax Credit not allowed in GSTR-3B                                        Nil                          28,000

After applicability of this new rule, taxpayer will be able to claim only 2,000 as provisional tax credit in GSTR-3B for the month of January-2020. The balance input tax credit of Rs. 28,000 can be claimed in later tax period when it reflects in GST-2A.
 

On 5th July, 2019, Finance Minister Nirmala Sitharaman announced a new amnesty scheme called ‘Sabka Viswas (Dispute Resolution) Scheme 2019.
FAQ’s about the scheme.

Q 1. Who is eligible to file declaration under the SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019?
Ans. Any person falling under the following categories is eligible, subject to other conditions under the Scheme, to file a declaration:
(a) Who has a show cause notice for duty or one or more appeals arising out of such notice pending and where the final hearing has not taken place as on 30.06.2019.
(b) Who has been issued show cause notice for penalty and late fee only and where the final hearing has not taken place as on 30.06.2019.
(c) Who has recoverable arrears pending.
(d) Who has cases under investigation and audit where the duty involved has been quantified and communicated to party or admitted by him in a statement on or before 30th June, 2019.
(e) Who want to make a voluntary disclosure.

Q 2. What are the acts covered under the Scheme?
Ans. This Scheme is applicable to the following enactments, namely:-
a)    The Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and the rules made there under;
b)    The following Acts, namely:-
i.    The Agricultural Produce Cess Act,1940;
ii.    The Coffee Act, 1942;
iii.    The Mica Mines Labour Welfare Fund Act, 1946;
iv.    The Rubber Act, 1947;
v.    The Salt Cess Act, 1953;
vi.    The Medicinal and Toilet Preparations (Excise Duties) Act, 1955;
vii.    The Additional Duties of Excise (Goods of Special Importance) Act, 1957;
viii.    The Mineral Products (Additional Duties of Excise and Customs) Act, 1958;
ix.    The Sugar (Special Excise Duty) Act, 1959;
x.    The Textiles Committee Act, 1963;
xi.    The Produce Cess Act, 1966;
xii.    The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972;
xiii.    The Coal Mines (Conservation and Development) Act, 1974;
xiv.    The Oil Industry (Development) Act, 1974;
xv.    The Tobacco Cess Act, 1975;
xvi.    The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976;
xvii.    The Bidi Workers Welfare Cess Act, 1976;
xviii.    The Additional Duties of Excise (Textiles and Textile Articles) Act, 1978;
xix.    The Sugar Cess Act, 1982;
xx.    The Jute Manufacturers Cess Act, 1983;
xxi.    The Agricultural and Processed Food Products Export Cess Act, 1985;
xxii.    The Spices Cess Act, 1986;
xxiii.    The Finance Act, 2004;
xxiv.    The Finance Act, 2007;
xxv.    The Finance Act, 2015;
xxvi.    The Finance Act, 2016;
c)    Any other Act, as the Central Government may, by notification in the Official Gazette, specify.

Q.3 If an enquiry or investigation or audit has started but the tax dues have not been quantified whether the person is eligible to opt for the scheme?
Ans. No. If an audit, enquiry or investigation has started, and the amount of duty payable has not been quantified on or before 30th June, 2019, the person shall not be eligible to opt for the scheme.

Q.4 If a SCN covers multiple issues, whether the person can file an application under the scheme for only few issues covered in the SCN?
Ans. No. A person has to file declaration for entire amount of tax dues as per the SCN.

Q.5 What is the scope of tax relief covered under section 124(1) (b) with respect to SCN for late fee and penalty only where the amount of duty in the said notice has been paid or is nil?
Ans. The tax relief shall be the entire amount of late fee or penalty.

Q.6 I have filed an appeal before the appellate forum (Commissioner (Appeals) /CESTAT) and such appeal has been heard finally on or before the 30thday of June, 2019. Am I eligible for the scheme?
Ans. No, you are not eligible in view of section 125(1) (a) of the said Scheme.

Q.7 What is the scope under the scheme when adjudication order determining the duty/tax liability is passed and received prior to 30.06.2019, but the appeal is filed on or after 01.07.2019?
Ans. No, such a person shall not be eligible to file a declaration under the Scheme.

Q.8 I have been convicted for an offence punishable under a provision of the indirect tax enactment. Am I eligible for the Scheme?
Ans. A person who has been convicted for any offence punishable under any provision of the indirect tax enactment for the matter for which he intends to file a Declaration shall not be eligible to avail the benefits under the Scheme.

Q.9 I have been issued a SCN, under indirect tax enactment and the final hearing has taken place on or before the 30th day of June, 2019. Am I eligible for the Scheme?
Ans. No, you are not eligible as per section 125(1) (c) of the Scheme.

Q.10 I have been issued a SCN under indirect tax enactment for an erroneous refund or refund. Am I eligible for the scheme?
Ans. No, you are not eligible as per section 125(1)(d) of the Scheme.

Q.11 I have been subjected to an enquiry or investigation or audit under indirect tax enactment and the amount of duty involved in the said enquiry or investigation or audit has not been quantified on or before the 30th day of June, 2019. Am I eligible for the Scheme?
Ans. No, you are not eligible as per section 125(1) (e) of the Scheme.

Q.12 I have been subjected to an enquiry or investigation or audit under indirect tax enactment and I want to make a voluntary disclosure regarding the same. Am I eligible for the Scheme?
Ans. No, you are not eligible as per section 125(1) (f) (i) of the Scheme.

Q.13 I want to make a voluntary disclosure after having filed a return under the indirect tax enactment, wherein I have indicated an amount of duty as payable but the same has not been paid. Am I eligible for the Scheme?
Ans. You cannot make a voluntary disclosure in such a case. However, you can still file a Declaration under Section 125(1) (f)(ii).

Q.14 I have filed an application in the Settlement Commission for settlement of the case. Am I eligible for the Scheme?
Ans. No, you are not eligible to file a Declaration for a case for which you have filed an application in the Settlement Commission.

Q.15 I deal with the goods which are presently under Central Excise and is mentioned in the Fourth Schedule to the Central Excise Act, 1944. I want to make declarations with respect to those excisable goods. Am I eligible for the scheme?
Ans. No, you are not eligible to avail the benefits under the Scheme.

Q 16. How will I apply for the said scheme?
Ans. All such persons who are eligible under the Scheme will be required to file an electronic declaration at the portal https://cbic-gst.gov.in

Q 17 Will I get an acknowledgement for filing a declaration electronically?
Ans. Yes, on receipt of declaration, an auto acknowledgement bearing a unique reference number will be generated by the system. This unique number will be useful for all future references. The declaration will automatically be routed to the designated committee that will finalize your case.

Q.18 How will I come to know about the final decision taken by the designated committee on my declaration?
Ans. Within sixty days of filing of a declaration, you will be informed electronically about the final decision taken in the matter.

Q.19 What is the difference between ‘Tax Dues’ and ‘Tax Relief’?
Ans. ‘Tax Dues’ is the total outstanding duty demand. ‘Tax Relief’ is the concession the Scheme offers from the total outstanding duty demand.

Q.20 A SCN has been issued to me for an amount of duty of ? 1000 and an amount of penalty of ? In the Order in Original (OIO) the duty confirmed is of ? 1000 and an amount of ? 100 has been imposed as penalty. I have filed an appeal against this order before the Appellate Authority. What will be the tax dues for me?
Ans. The amount of duty which is being disputed is ? 1000 and hence the tax dues will be ? 1000.
Q.21 A SCN has been issued to me for an amount of duty of ? .1000 and an amount of penalty of ? In the OIO the duty confirmed is of ? 900 and penalty imposed is ? 90. I have filed an appeal against this order. The department has not filed any appeal in the matter. What would be the tax dues?
Ans. The amount of duty which is being disputed is ? 900 and hence the tax dues are ? 900.

Q.22 A SCN has been issued for an amount of duty of ? 1000 and an amount of penalty of ? In the OIO the duty confirmed is of ? 900 and penalty imposed is ? 90. I have filed an appeal against this order before the Appellate Authority. Further, Department has also filed an appeal before the Appellate Authority for an amount of duty of ? 100 and penalty of ? 10. What would be the tax dues?
Ans. The amount of duty which is being disputed is ? 900 plus ? 100 i.e. ? 1000 and hence tax dues are ? 1000.

Q.23 A SCN has been issued for an amount of duty of ? The Adjudicating Authority confirmed the duty of ? 1000. I have filed an appeal against this order. The first appellate authority Commissioner Appeals/CESTAT reduced the amount of duty to ? 900. I have filed a second appeal (before CESTAT/High Court. The department has not filed any appeal. What will be the tax dues for me?
Ans. The amount of duty which is being disputed is ? 900 and hence the tax dues are ? 900.

Q.24 I have been issued a SCN under any of the indirect tax enactment on or before the 30th June, 2019, what will be the tax dues?
As per section 123(b), the tax dues will be the amount of duty/tax/cess stated to be payable in the SCN.

Q.25 I have been issued a SCN, wherein other persons apart from me are jointly and severally liable for an amount, then, what would be the tax dues?
Ans. As per section 123(b), the amount indicated in the SCN as jointly and severally payable shall be taken to be the tax dues payable by you.

Q.26 What is the coverage of SCNs under the Scheme with respect to main noticee vis-à-vis co-noticee particularly when the tax amount is paid?
Ans. In case of a SCN issued to an assesse demanding duty and also proposing penal action against him as well as separate penal action against the co-noticee/s specified therein, if the main noticee has settled the tax dues, the co-noticee/s can opt for the scheme for the waiver of penalty.

Q.27 What is the scope of coverage of periodical SCNs under the scheme?
Ans. Any SCN whether main or periodical, issued and where the final hearing has not taken place on or before 30.06.2019 is eligible under the Scheme.

Q.28 What are the benefits available under the Scheme?
Ans. The various benefits available under the Scheme are:
Total waiver of interest, penalty and fine in all cases
Immunity from prosecution
In cases pending in adjudication or appeal, a relief of 70% from the duty demand if it is ? 50 Lakh or less and 50%, if it is more than ? 50 Lakh.The same relief is available for cases under investigation and audit where the duty involved is quantified on or before 30th June, 2019.
In case of an amount in arrears, the relief is 60% of the confirmed duty amount if the same is ? 50 Lakh or less and it is 40% in other cases.
In cases of voluntary disclosure, the declarant will have to pay full amount of disclosed duty.

Q.29 Shall the pre deposit paid at any stage of appellate proceedings and deposit paid during enquiry, investigation or audit be taken into account for calculating relief under the scheme?
Ans. Any amount paid as pre-deposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit, shall be deducted while issuing the statement indicating the amount payable by the declarant.

Q.30 How the declaration made by the declarant under the Scheme would be verified?
Ans. The declaration made under section 125 except when it relates to a case of voluntary disclosure of an amount of duty shall be verified by the Designated Committee based on the particulars furnished by the declarant as well as the records available with the department.

Q.31 Whether the declarant will be given an opportunity of being heard or not?
Ans. Yes, as per section 127(3), after the issue of the estimate under sub-section (2), the Designated Committee shall give an opportunity of being heard to the declarant, if he so desires, in case of a disagreement.

Q.32 What will be procedure and time period of payment to be made by the declarant?
Ans. The declarant shall pay electronically withina period of 30 days of the statement issued by the Designated Committee, the amount payable as indicated therein.

Q.33 What procedure will be followed for withdrawal of appeals where the person has filed a declaration under the Scheme?
Ans. Where the declarant has filed an appeal or reference or a reply to the SCN against any order or notice giving rise to the tax dues, before the appellate forum, other than the Supreme Court or the High Court, then, such appeal or reference or reply shall be deemed to have been withdrawn. In case of a writ petition or appeal or reference before any High Court or the Supreme Court, the declarant shall file an application before such High Court or the Supreme Court for withdrawing such writ petition, appeal or reference and after withdrawal of such writ petition, appeal or reference with the leave of the Court, he shall furnish proof of such withdrawal to the Designated Committee.

Q.34 Whether any certificate will be provided to declarant as proof to payment of dues?
Ans. Yes, on payment of the amount indicated in the statement and production of proof of withdrawal of appeal, wherever applicable, the Designated Committee shall issue a discharge certificate in electronic form, within 30 days of the said payment and production of proof, whichever is later.

Q.35 Whether a calculation error in statement may be rectified or not?
Ans. Yes, within 30 days of the date of issue of a statement indicating the amount payable by the declarant, the Designated Committee may modify its order only to correct an arithmetical error or clerical error, which is apparent on the face of record, on such error being pointed out by the declarant or suo-motu.

Q.36 What will be the benefits of discharge certificate issued under the scheme?
Ans. Every discharge certificate issued under section 127 with respect to the amount payable under this Scheme shall be conclusive as to the matter and time period stated therein, and (a) the declarant shall not be liable to pay any further duty, interest, or penalty with respect to the matter and time period covered in the declaration; (b) the declarant shall not be liable to be prosecuted under the indirect tax enactment with respect to the matter and time period covered in the declaration; and (c) no matter and time period covered by such declaration shall be reopened in any other proceeding under the indirect tax enactment.

Q.37 Can I take input tax credit for any amount paid under the Scheme.
Ans. No.

Q.38 Can I pay any amount under the Scheme through the input tax credit account under the indirect tax enactment or any other Act?
Ans. No.

Q.39 Can I take a refund of an amount deposited under the Scheme?
Ans. No.

Q.40 In cases where pre-deposit or other deposit already paid exceeds the amount payable as indicated in the statement of the designated committee, the difference shall be refunded or not?
Ans. No, it shall not be refunded.

Q.41 Is there any benefit, concession or immunity on the declarant in any proceedings other than those in relation to the matter and time period to which the declaration has been made?
Ans. No, as per section 131, nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in relation to the matter and time period to which the declaration has been made.

Q.42 Whether the discharge certificate under the scheme would serve as immunity against issuance of any further SCN (i) for the same matter for a subsequent time period; or (ii) for a different matter for the same time period?
Ans. No, as per section 129 (2)(b), the issue of the discharge certificate with respect to a matter for a time period shall not preclude the issue of a SCN,(i) for the same matter for a subsequent time period; or (ii) for a different matter for the same time period.

Q.43 What action would be taken against a declarant who makes false voluntary disclosure under the scheme?
Ans. As per section 129(c), in such cases of voluntary disclosure, where any material particular furnished in the declaration is subsequently found to be false, within a period of one year of issue of the discharge certificate, it shall be presumed as if the declaration was never made and proceedings under the applicable indirect tax enactment shall be instituted.
 

The common presumption of tax payers is that amount received from life insurance policies on maturity are tax free. However, this is actually subject to certain conditions and also some exceptions. 

Section 10(10)D of the Income Tax Act, 1961 

As per Section 10(10D) of the Income Tax Act, 1961 the amount received from life insurance policies (including bonus) is exempt from tax, except following receipts:

a)    Any sum received under sub-section (3) of section 80DD; or

b)    Any sum received under a Keyman insurance policy; or

c)    Any sum received in respect of policies issued 

(i) On or after 1.4.2003 but on or before 31.3.2012 if the premium payable in any financial year exceeds 20% of the actual sum assured.

(ii) On or after 1.4.2012, if the premium payable in any financial year exceeds 10% of the actual sum assured
. 
d)    Any sum received in respect of policies issued on life of *specified persons on or after 01-04-2013, if the premium payable in any year exceeds 15% of the actual sum assured.

*For this purpose, specified persons means any person who is-

(i)    A person with disability or severe disability specified under section 80U; or
(ii)    Suffering from disease or ailment as specified in the rule made under section 80DDB.

Following point should be noted in this regard:                            

1.    Exemption is available only in respect of amount received from life insurance policy.

2.    Exemption under section 10(10D) is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.

3.    Amount received in case of death of the person, where his nominees receive the policy proceeds the same shall be tax free in the hands of the nominee(s) even if premium paid in any year crossed the prescribed percentage (10%, 15% or 20%) of sum assured. 

Is TDS applicable to payment of life insurance policy proceed?
 
As per Section 194DA of the Income Tax Act,1961,any sum received by a resident Indian insurer under life insurance policy shall be subject to TDS @ 1% under following circumstances:

•    If the said sum is not exempted under section 10(10D).
•    If policy amount is taxable and does not exceeds Rs.1,00,000.

If insurer does not provide PAN then TDS rate will be be 20% instead of 1% in cases where TDS is applicable.
 

The common presumption of tax payers is that amount received from life insurance policies on maturity are tax free. However, this is actually subject to certain conditions and also some exceptions. 

Section 10(10)D of the Income Tax Act, 1961 

As per Section 10(10D) of the Income Tax Act, 1961 the amount received from life insurance policies (including bonus) is exempt from tax, except following receipts:

a)    Any sum received under sub-section (3) of section 80DD; or

b)    Any sum received under a Keyman insurance policy; or

c)    Any sum received in respect of policies issued 

(i) On or after 1.4.2003 but on or before 31.3.2012 if the premium payable in any financial year exceeds 20% of the actual sum assured.

(ii) On or after 1.4.2012, if the premium payable in any financial year exceeds 10% of the actual sum assured
. 
d)    Any sum received in respect of policies issued on life of *specified persons on or after 01-04-2013, if the premium payable in any year exceeds 15% of the actual sum assured.

*For this purpose, specified persons means any person who is-

(i)    A person with disability or severe disability specified under section 80U; or
(ii)    Suffering from disease or ailment as specified in the rule made under section 80DDB.

Following point should be noted in this regard:                            

1.    Exemption is available only in respect of amount received from life insurance policy.

2.    Exemption under section 10(10D) is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.

3.    Amount received in case of death of the person, where his nominees receive the policy proceeds the same shall be tax free in the hands of the nominee(s) even if premium paid in any year crossed the prescribed percentage (10%, 15% or 20%) of sum assured. 

Is TDS applicable to payment of life insurance policy proceed?
 
As per Section 194DA of the Income Tax Act,1961,any sum received by a resident Indian insurer under life insurance policy shall be subject to TDS @ 1% under following circumstances:

•    If the said sum is not exempted under section 10(10D).
•    If policy amount is taxable and does not exceeds Rs.1,00,000.

If insurer does not provide PAN then TDS rate will be be 20% instead of 1% in cases where TDS is applicable.
 

The common presumption of tax payers is that amount received from life insurance policies on maturity are tax free. However, this is actually subject to certain conditions and also some exceptions. Section 10(10)D of the Income Tax Act, 1961 As per Section 10(10D) of the Income Tax Act, 1961 the amount received from life insurance policies (including bonus) is exempt from tax, except following receipts: a) Any sum received under sub-section (3) of section 80DD; or b) Any sum received under a Keyman insurance policy; or c) Any sum received in respect of policies issued (i) On or after 1.4.2003 but on or before 31.3.2012 if the premium payable in any financial year exceeds 20% of the actual sum assured. (ii) On or after 1.4.2012, if the premium payable in any financial year exceeds 10% of the actual sum assured . d) Any sum received in respect of policies issued on life of *specified persons on or after 01-04-2013, if the premium payable in any year exceeds 15% of the actual sum assured. *For this purpose, specified persons means any person who is- (i) A person with disability or severe disability specified under section 80U; or (ii) Suffering from disease or ailment as specified in the rule made under section 80DDB. Following point should be noted in this regard: 1. Exemption is available only in respect of amount received from life insurance policy. 2. Exemption under section 10(10D) is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003. 3. Amount received in case of death of the person, where his nominees receive the policy proceeds the same shall be tax free in the hands of the nominee(s) even if premium paid in any year crossed the prescribed percentage (10%, 15% or 20%) of sum assured. Is TDS applicable to payment of life insurance policy proceed? As per Section 194DA of the Income Tax Act,1961,any sum received by a resident Indian insurer under life insurance policy shall be subject to TDS @ 1% under following circumstances: • If the said sum is not exempted under section 10(10D). • If policy amount is taxable and does not exceeds Rs.1,00,000. If insurer does not provide PAN then TDS rate will be be 20% instead of 1% in cases where TDS is applicable.

The common presumption of tax payers is that amount received from life insurance policies on maturity are tax free. However, this is actually subject to certain conditions and also some exceptions.

Section 10(10)D of the Income Tax Act, 1961

As per Section 10(10D) of the Income Tax Act, 1961 the amount received from life insurance policies (including bonus) is exempt from tax, except following receipts:

a) Any sum received under sub-section (3) of section 80DD; or

b) Any sum received under a Keyman insurance policy; or

c) Any sum received in respect of policies issued

(i) On or after 1.4.2003 but on or before 31.3.2012 if the premium payable in any financial year exceeds 20% of the actual sum assured.

(ii) On or after 1.4.2012, if the premium payable in any financial year exceeds 10% of the actual sum assured .

d) Any sum received in respect of policies issued on life of *specified persons on or after 01-04-2013, if the premium payable in any year exceeds 15% of the actual sum assured.

*For this purpose, specified persons means any person who is-

(i) A person with disability or severe disability specified under section 80U; or

(ii) Suffering from disease or ailment as specified in the rule made under section 80DDB.

Following point should be noted in this regard:

1. Exemption is available only in respect of amount received from life insurance policy.

2. Exemption under section 10(10D) is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.

3. Amount received in case of death of the person, where his nominees receive the policy proceeds the same shall be tax free in the hands of the nominee(s) even if premium paid in any year crossed the prescribed percentage (10%, 15% or 20%) of sum assured.

Is TDS applicable to payment of life insurance policy proceed?

As per Section 194DA of the Income Tax Act,1961,any sum received by a resident Indian insurer under life insurance policy shall be subject to TDS @ 1% under following circumstances:

• If the said sum is not exempted under section 10(10D).

• If policy amount is taxable and does not exceeds Rs.1,00,000. If insurer does not provide PAN then TDS rate will be be 20% instead of 1% in cases where TDS is applicable.

The common presumption of taxpayers is that amount received from life insurance policies on maturity are tax-free. However, this is actually subject to certain conditions and also some exceptions. Section 10(10)D of the Income Tax Act, 1961  As per Section 10(10D) of the Income Tax Act, 1961 the amount received from life insurance policies (including bonus) is exempt from tax, except following receipts:

(a) Any sum received under sub-section (3) of section 80DD; or

(b) Any sum received under a Keyman insurance policy; or

(c) Any sum received in respect of policies issued

1. On or after 1.4.2003 but on or before 31.3.2012 if the premium payable in any financial year exceeds 20% of the actual sum assured.
2. On or after 1.4.2012, if the premium payable in any financial year exceeds 10% of the actual sum assured. 

(d) Any sum received in respect of policies issued on the life of *specified persons on or after 01-04-2013, if the premium payable in any year exceeds 15% of the actual sum assured.

For this purpose, specified persons mean any person who is-
(i) A person with a disability or severe disability specified under section 80U; or
(ii) Suffering from disease or ailment as specified in the rule made under section 80DDB.

The following point should be noted in this regard:
1. The exemption is available only in respect of the amount received from a life insurance policy.
2. Exemption under section 10(10D)? is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.
3. Amount received in case of death of the person, where his nominees receive the policy proceeds the same shall be tax-free in the hands of the nominee(s) even if the premium paid in any year crossed the prescribed percentage (10%, 15% or 20%) of sum assured.