MCA Budget 2021 proposal | Random e-scrutiny of Corporate filings
As per the Speech of the Finance minister, MCA during the coming fiscal 2021-22, we will be launching data analytics, artificial intelligence, machine learning-driven MCA21 Version 3.0. This Version 3.0 will have additional modules for e-scrutiny, e-Adjudication, e-Consultation, and Compliance Management.
As per MCA secretary Rajesh Verma, “There will be stratified random sampling of the returns. We are deciding the percentage of returns that will be taken up for electronic scrutiny”.
Version 3 of MCA-21, which was introduced in the Budget 2021 had the following proposals:
- System of pink flags, which is able to embody frequent resignation by auditors or administrators
- System to track firms with a low paid-up capital however excessive turnover or excessive degree of related-party transactions.
- The new digital module will instantly ship out an alert to firms in the event that they miss the deadline for submitting returns or different compliance.
- Similarly, non-filers can be tracked and, at first, prodded to file, all utilizing digital means, Verma stated. Risk-profiling can be half of the identical train.
Some other steps Taken in Budget 2021:
- Decriminalization of the Limited Liability Partnership (LLP) Act, 2008.
- Revision of the definition of Small Companies under the Companies Act, 2013
- by increasing their thresholds for Paid-up capital from “not exceeding Rs. 50 Lakh” to “not exceeding Rs. 2 Crore” and
- turnover from “not exceeding Rs. 2 Crore” to “not exceeding Rs. 20 Crore”.
- reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days and also allow Non-Resident Indians (NRIs) to incorporate OPCs in India.