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Showing posts from February 26, 2016

RBI eases NPA redressal norms

In a bid to make revival of bad loans easier for banks, the Reserve Bank of India on Thursday revised the guidelines for Strategic Debt Restructuring (SDR) and Joint Lenders’ Forum (JLF). Banks should consider using SDRs only in cases where change in ownership is likely to improve the economic value of the stressed asset and the prospects of recovering dues. RBI also said banks going in for SDR should make provisions to the tune of 15% of the loan’s value, to tide over possible erosion in the value of the equity they acquire in lieu of debt and residual loans. It reduced the minimum percentage of shareholding to be initially divested by the lenders to 26% of the shares of the company and not necessarily 51%. This will give banks the option of exiting their remaining holdings gradually as the company turns around, keeping the ‘right of first refusal’ for the subsequent divestment of their remaining stake with the new promoter. To ease participation of lenders under JLF, the proportion of …

Govt hospitals ease labour norms

It’s just got easier for women to face childbirth. A woman from the family can now accompany them in the labour room in government hospitals. In hospitals where privacy protocols are followed, even the husband can be with the woman, essentially to provide the emotional support. The directive by the Union ministry of health and family welfare doesn’t allow relatives, particularly men, inside the labour room. In a release issued on Thursday, the ministry said the innovative move was aimed at reducing maternal mortality ratio (MMR) and infant mortality ratio (IMR). “While several measures have been taken up by the ministry over the years aimed in reduction in MMR and IMR, this step signifies India’s commitment under sustainable development goals to further accelerate initiatives with specific focus on quality parameters of the interventions,” said JP Nadda, health minister. While pregnant women may rejoice at the idea, gynaecologists in government hospitals see it as trouble in the making. “W…

Finmin Seeks Expert Views on Impact of STT Removal

Govt plans to stretch period for applicability of long-term capital gains tax to three years  The Finance Ministry has sought suggestions from leading tax experts and market participants on the implications of scrapping security transaction tax (STT)--a levy on transactions done on stock exchanges. Tax consultants said the government wants to understand the impact of doing away with STT as it mulls stretching the pe riod for applicability of longterm capital gains tax from one year to three years. STT is collected by the broker in addition to the brokerage soon after a trade is completed. A section of the market--shortterm traders and arbitrageurs--have been asking for a removal of STT because it squeezed their margins. The government in the budget of 2013-14 cut STT on equities and mutual fund units. In the last few days, top tax experts have been sounded out by the Finance Ministry on the matter. “There have been various representations to the government on various aspects of capital …

Draconian 66A may be Back in a Softer Form

Move follows fears expressed by security officials; raises hackles of civil society, industry The government is ready with what it believes is the draft of a fool-proof replacement for a portion of the Information Technology Act which was trashed by the Supreme Court about a year ago as vague, unconstitutional and violative of the freedom of speech. Spurred by the country's police and intelligence agencies, which claim that they are struggling to deal with cases where social media is being used to undermine peace and national security, the government is poised to revive Section 66A of the IT law in a new avatar, which claims to be milder and more specific, according to people aware of the plan. A government committee has recommended fresh provisions to be included in the IT law through an amendment, and it has already drafted the clause aimed at filling the vacuum left by Section 66A. The clause is being vetted by the home ministry. Once this is done, the communications and IT minist…

Sebi notifies norms for mutual funds

Simplifying norms for domestic funds to manage offshore pooled assets, the capital market regulator Securities and Exchange Board of India (Sebi) has dropped the ‘20-25 rule’, which required a minimum of 20 investors and a cap of 25 per cent on investment by an individual, for funds from low-risk foreign investors. According to the existing norms, a fund manager managing a domestic scheme is allowed to manage an offshore fund, subject to three specific conditions. The first requires the investment objective and asset allocation of the domestic scheme and of the offshore fund to be the same. The second condition requires at least 70 per cent of the portfolio to be replicated across both the domestic scheme and offshore fund. ALSO READ: Mutual funds' holding in BSE 500 stocks at over four-year high

The third condition, being considered most stringent by the industry, requires the offshore fund should be broad-based with at least 20 investors with no single investor holding more than 25 p… News.... News...

1.Rail Budget 2016 : No hikes in fare; Sub-quota of 33% for women; increased quota of lower berths for senior citizens & women; enhanced capacity of eticketing system.
2.Service charge, user charge, convenience fee paid by gateways & vendors on online or card payments will be waived once steps approved by the Cabinet.
3.TP: Turnover is a relevant factor to consider comparability. [CIT vs. Pentair Water India Pvt. Ltd (Bombay High Court)].
4.Mere change in head of income not attracts concealment penalty. [CIT vs. Shri. Hiralal Doshi (Bombay High Court)].
5.Section 12AA Deemed registration effective after 6 month from application. [CIT vs. Society for the Promn. Of Edn (Supreme Court) Civil Appeal No. 1478 of 2016].
6.Section 154 : AO cannot refuse rectification for mistake attributed to assessee. [ACIT vs Rupam Impex (ITAT Ahmedabad)].

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