Skip to main content

Disclosures may be linked to returns seen on black funds

By
In the second round of clarifications on the unaccounted money law next week, the government is likely to ask those holding such funds to make disclosures based on their income expectations from foreign bank accounts more than 10 years old, in case of unavailability of records.
This will be part of about two dozen frequently asked questions ( FAQs) the Department of Revenue will issue on the Undisclosed Foreign Income and Assets Act, popularly known as the black money Act, as well as on a three- month compliance window under the law.
“We are almost ready with the second set of FAQs and will be releasing that within the next four- five days. We were delayed, as we will be addressing more queries that came up based on an interaction session in Mumbai on Wednesday,” said a government official.
Many people have enquired about the unavailability of old records with the foreign banks. On this, the official said, “ On the unavailability of old information, we cannot do anything much on that. We will be asking people to make disclosures based on the expectation of income in case of unavailability of records older than 10 years… Based on the extent of their disclosures, they will be given relief.” On whether income will be considered undisclosed if tax liability was outside India, the tax department will likely clarify that such income will not be considered undisclosed.
Another issue to be clarified is that regarding the place of effective management.
The government will clarify if the president or chief executive of the company concerned is in India and whether the Act will apply to that person or not.
Even as there is only a month left for the compliance window to shut, just one disclosure of Rs.70- 80 crore has been made so far. The government expects disclosures regarding unaccounted foreign money to rise with the release of the FAQs. The three- month window closes on September 30.
Business Standard, New Delhi, 28th August 2015

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more