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Showing posts from July 7, 2015

Depositors get some protection if bank fails

Deposits up to Rs.1 lakh are insured. Read on for ways to raise this cover Bank fixed deposits are among the safest of savings instruments. The principal and interest are guaranteed and depositors know exactly how much return they can expect at maturity. But, what if the bank goes bankrupt? Or it merged with another bank? What happens to your deposits in that case? The latest Financial Stability Report ( FSR) of the Reserve Bank of India raises concerns about the soundness of public sector banks due to their high level of non- performing assets ( NPAs). “The decline in their ( PSBs’) soundness ( measured in terms of CRAR, the capital to risk weighted assets ratio) by 1.8 percentage points between March 2011 and March 2015 was the ( highest), followed by foreign banks at 1.5 percentage points and PVBs ( private banks) at 1.1 percentage points,” the report said. The level of stressed assets was highest for PSBs at 13.5 per cent of total advances as of this March, while the net NPA ratio in…

PF Withdrawal May be Capped at 75%

FOR SECURITY SAKE Move to retain the worker in PF net and ensure that the money saved is used only in case of dire need The government is planning to put a cap on premature withdrawal of provident fund (PF) money.The move is aimed at ensuring social security for workers in old age.
The Employees' Provident Fund Organisation (EPFO) has proposed that an employee be allowed to withdraw only 75% of the overall kitty, instead of 100% as permitted under the existing Employees' Provident Funds Scheme, 1952, in case of resignation from a job or for any other use before retirement. The change, once implemented, will impact working people who tend to withdraw PF money between jobs or those planning to use it for either buying a house or for paying medical bills or for children's higher education or weddings. Pre-mature withdrawal before retirement on these counts as well would also be restricted to 75% of the overall amount. “The provision of 100% withdrawal at any time is being misused…

Sebi has power to regulate GDRs SC

The Supreme Court said on Monday that capital market regulator Securities and Exchange Board of India (Sebi) has the power to probe Global Depository Receipts (GDRs) sold by Indian companies, backed by local shares, to foreign investors and listed on overseas exchanges. A bench comprising justices F.M.I. Kalifulla and S.K. Singh favoured the minority view held by presiding officer J.P. Devadhar in a 30 September 2013 ruling by the Securities Appellate Tribunal (SAT). The bench set aside the majority ruling by SAT. The court has now sent the case back to SAT to be dealt with in the next three months. Mint has not seen a copy of the verdict, which was not uploaded on the court website in time for print. SAT had ruled that regulation of GDRs is outside the purview of Sebi. The regulator managed to get a stay on SAT’s order by the Supreme Court. The case pertains to GDR issuances by a merchant banking firm, Pan Asia Advisors Ltd, in 2009. In each of these issuances, large-scale on-market and …

Defective income tax returns

Once you file your income tax return, it is checked, assessed and processed by the income tax department. It matches the information that the assessee provides—income from different sources, tax deducted at source, self-assessment tax paid, among others—with data available to the department, and then intimates the assessee accordingly. If the information provided by an assessee in her return matches with what the tax department has, a final intimation is sent (under Section 143(1) of the Income-tax Act, 1961). It contains details of return filed by the assessee and the information available with the tax authority. But if there is a mistake or some information is missing, you may get a notification, which would be under Section 139(9) of the Act. This means that the return filed is defective.
Here’s what a defective return means and what an assessee should do in case she receives such an intimation. WHEN IS A RETURN DEFECTIVE? An income tax return will be considered defective if you provi…

Updates for Week ended 04-07-2015

1TOMORROW (30-06-15) is LAST DATE for banks to file Return for interest upto Rs.10000 without TDS for Mar 2015 quarter in Form No. 26QAA.
2Secretarial standards SS-1(Meeting of BODs) & SS-2(General Meetings) shall become mandatory from 1st July,2015 .
3TODAY (30-06-15) is LAST DATE for banks to file Return for interest upto Rs.10000 without TDS for Mar 2015 quarter in Form No. 26QAA.
4Extension to 31.08.15 of last date to file DP-1 (online submission of Dealer profile).Notification dated 30.06.15.
5CBDT notifies 30.09.15 as last date to make a declaration for undisclosed asset located outside India under the compliance provisions of the Black Money Act.
6CBDT notifies 31.12.15 as last date to pay tax & penalty in respect of undisclosed foreign assets under Black Money Act.Press release of 01.07.15.