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Under fire from trade unions, Employees' Provident Fund Organisation (EPFO) has decided to change the new rules that restrict employees from withdrawing their entire provident fund (PF) balance till the age of 58. The EPFO has brought in norms that exclude subscribers falling in certain categories. According to amended norms, a subscriber can withdraw his or her entire savings for housing purpose, treatment of himself/herself or family members suffering from TB (tuberculosis), leprosy, paralysis, cancer or undergoing heart operation, marriage of children as well as professional education (medical, engineering, dental) of children. Further, the rules have been relaxed for a member who joins an establishment under the control of the central or state governments and becomes a member of old-age pension schemes framed by the central or state governments. The fresh amendment will come into effect from August 1. According to a February notification, EPFO subscribers can withdraw t...

To make it easier for investors to get dividend and redemption payments on a fast-track basis, Sebi (Securities and Exchange Board of India) on Monday proposed new norms to allow depositories to distribute all securities market-related cash benefits. A final decision on the issue will be made after taking into consideration the views of all stakeholders. The regulator has sought public comments till May 5. The move will help bring Indian markets on a par with most of the developed markets where depositories usually distribute cash benefits to the investors. Currently, depositories only handle non-cash benefits like bonus and rights shares issued by the companies, while cash benefits are handled outside the depository system. Depositories provide details of shareholders and bondholders including name, address and bank details to the respective issuer companies which, in turn, arrange for distribution of cash benefits. This leads to some delay in the distribution of cash benefi...

The Reserve Bank of India (RBI) has amended rules, giving lenders leeway in making provisions. The move is aimed at easing the burden of banks to provision for frauds. While computing the provisioning requirement, banks can adjust financial collateral eligible under Basel-III norms available for accounts declared as fraud account, RBI said in a communication to banks. Under normal circumstances, banks should make provision immediately when a fraud is detected. This provision should be for the entire amount due to it or amount for which the bank is liable (in case of deposit accounts). But, banks can spread them over a maximum of four quarters, commencing from the quarter in which the fraud has been detected, to smoothen the effect of such provisioning on quarterly profit and loss, RBI added. Where the provisioning spills over more than one financial year (subject to four quarters), banks should debit "other reserves" by the amount remaining un-provided at the end of t...

The government on Monday released draft rules allowing companies to claim credit for taxes paid abroad. The Central Board of Direct Taxes (CBDT) has said that tax credit will be available to entities paying taxes in any country, including those with which India has Double Taxation Avoidance Agreement (DTAA). At present, such a facility is not available under the Income Tax Act. “The credit for foreign tax shall be available against the amount of tax, surcharge and cess payable under the Act, but not in respect of any sum payable by way of interest, fee or penalty,” says the draft of the simplified Foreign Tax Credit (FTC) rules. CBDT will accept stakeholders’ comments on the proposed norms till May 2. At the moment, many Indian companies with foreign income end up paying taxes in both the countries for the same income and face difficulties to avail credit for such double taxation. The introduction of such rules was one of the key recommendations of the Tax Administration Refo...

About 350 companies having a net worth upwards of Rs 500 crore in the BSE 500 universe will adopt Indian Accounting Standards (Ind AS) from this financial year. Some of these companies were following the Indian Generally Accepted Accounting Principles till now. Ind AS is similar to International Financial Reporting Standards. The norms will impact the net worth, return ratios and earnings of Indian companies. This is because it brings about a significant change in the accounting of mergers and acquisitions (M&As), revenue recognition, employee stock options (ESOPs), foreign currency transactions, treatment of redeemable preference shares as debt versus equity earlier, among others. Banking and telecom will see the highest impact of this transition. Cement and capital goods will be the least hit, estimate analysts at Motilal Oswal Securities. “Migrating to Ind AS will require corporates to prepare an opening balance sheet on the transition day, recognising assets and liabiliti...

Seeks to sign more advance pricing agreements this fiscal in a move aimed at progressive taxation policy; CBDT signs a record 55 advance pricing agreements in 2015-16 In a move towards a more progressive taxation policy the revenue officials have set an aggressive target of resolving about 100 transfer pricing issues by signing advance pricing agreements (APAs) with multinationals this fiscal, people close to the development said. The government, through the Central Bureau of Direct Taxes (CBDT), had signed a record 55 APAs with multinationals in 201516. In all, the Indian government has signed 64 APAs, including 62 in the last two years. Now the government is getting more ambitious and officials are confident about achieving the target. “We are already working on about 175 cases (APAs), and the target is achievable,“ said a person close to the development. “Also, the officers who are dealing with the issue have now got fair amount of ex perience and work would be faster going ...

www.caonline.in News... 1.Amendment to SCPT Act, PT Act, Entry Tax Act, MVAT Act L.A. Bill, 2016 2.CBDT draft rules for grant of foreign tax credit u/s. 90/90A/ 91: F.No. 142/24/2015-TPL. 3.Transfer Pricing:Unrelated internal comparable supersedes external comparable.[Intergarden (India) P. Ltd. vs. ACIT (ITAT Bangalore)]. 4.Sec.69/69A: Addition cannot be challenged on mere denial of transaction. [Hassan Ali Khan vs. DCIT (ITAT Mumbai)]. 5.Service of notice via speed post without delivery proof is invalid. [Hindustan Institute of Aeronautics vs. C.C.E. & S.T]. 6.Due to changes in Annexure 2A and 2B, DVAT department has not released its offline block till date. Accordingly it is assured that due date shall be extended. For more News Like us on https://www.facebook.com/caonlineofficial Or Subscribe on mail visit : www.caonline.in