Skip to main content


Showing posts from June 27, 2016

Sept 30 last date to set up rainwater harvesting system

The Delhi Jal Board (DJB) extended the deadline given to property owners to install rainwater harvesting (RWH) systems from June 30 to September 30. DJB officials say they want to make sure that the policy takes off not just on paper but in reality. “The deadline was tight and almost impossible to meet. We can’t ensure that everyone has a rainwater harvesting pit by force. People have to be mobilised. Penalising them will not help and hence the extension,” says DJB CEO, Keshav Chandra. For over a decade, policy makers in Delhi have tried to encourage rainwater harvesting. Policies have made the construction of RWH pits mandatory in buildings constructed on an area of more than 100 metre square. But the ground reality hasn’t changed. For around five years now, Delhi has only 500 approved RWH structures. The new dispensation wants to change this. How successful they are remains to be seen. For starters, the gover nment is looking at institutions instead of individual households. “We want ever…

Avail I- T declaration window or face consequences, PM warns tax assessees

Prime Minister Narendra Modi on Sunday advised tax defaulters to avail of the benefits of the Income Declaration Scheme or face prosecution, which the government will start after the window expires on September 30. In his radio programme ‘Mann ki Baat’, he said no questions would be asked about the source of undisclosed income or assets if the declaration was made voluntarily under the scheme that began this month. “ This is the last chance to avoid problems that will follow after the window of opportunity closes,” Modi said. By paying a penalty, those having undisclosed money can free themselves from various kinds of burden. He said evading taxes had become a part of the behaviour for many in the past because of high tax rates. “ Old habits die hard, despite the fact that it is quite easier now for taxpayers to connect with the government. I want to request you that we lose happiness by circumventing rules. Any small person can be after us. Why should we allow that? Why should we not gi…

Bracing up for Brexit impact

It will be business as usual over the next two years as the United Kingdom negotiates the terms of its retreat from the European Union. In this interim period the UK will remain subject to EU law and European Commission decisions. However, in a parallel track running over the same period the UK will start making a new legal and regulatory regime applicable in the postBrexit era. As Rabindra Jhunjhunwala, partner, Khaitan & Co, puts it, a lot will be left to speculation as no member state has left the EU before. “ There is no precedent and the rules of exit are very brief,” Jhunjhunwala said. Here are some key FAQs and insights from legal experts on how corporate India could prepare itself for the uncertain times ahead. What impact will Brexit have on existing and new contracts? Currently a contractual provision stipulating English law as the governing law of the contract also includes applicable EU law. PostBrexit, that may not be the case. On the face of it there may not be asignifica…

Digital banking 2.0

From using Aadhaar cards for withdrawals to mobile- only solutions, new offerings by banks are changing the way you transact Download the wallet app, enter Aadhaar and PAN number for KYC ( Know- your- Customer), visit a CafĂ© Coffee Day outlet for biometric verification and your bank account with Singapore- based DBS Bank will be up and running. This mobile- based bank’s customer support uses artificial intelligence. A bot answers questions. About 90 per cent customer queries are standard which don’t need human interference. The customer can also choose to chat with an executive. As it is mobile- only, the bank doesn’t provide acheque book. But, customers do get adebit card. “ Being relatively new in the market, we don’t have legacy systems. The bank could therefore start from scratch and deploy newer systems and processes,” says a DBS spokesperson. If 2015 was a year of banking apps, 2016 could well be one where banks look at innovative ideas to smoothen the banking procedures and transact…

Audit giants see dominance waning

India’s audit landscape is undergoing aquiet change as the new rules for time- based rotation of auditors gather pace. Early audit changes this year indicate the larger entities, such as Deloitte’s network, could face some pressure on their dominance. And, those lower down the order could gain ground. Leading firms are looking at increasing the focus on quality and are exploring new opportunities, such as private equity- backed ones in the unlisted space. Smaller entities such as Walker Chandiok, part of the Grant Thornton network, have ramped up their staff strength to handle new clients. Close to 400 companies listed on the National Stock Exchange (NSE) have already changed auditors over the past three years, with clients changing hands among top audit firms. There is also pressure on pricing as the war for market share begins to intensify among top audit firms. This has resulted in a spike in demand for experienced auditors, with joining remuneration seeing 20- 30 per cent jumps. The …

GAAR not to apply on income from investments before April 1

To clear the air on retrospective applicability of the stringent anti- avoidance GAAR rule, the I- T department has said the same will not apply to income from transfer of investments before April 1, 2017. General Anti- Avoidance Rule ( GAAR), which will kick in from April 1 next year, contains provisions to prospectively tax overseas deals involving local assets and are aimed at minimising tax avoidance and evasion by entities based in tax havens. The amendments carried out in the Income Tax Rules state that Rule 10U( 1)( d) has been amended to provide that GAAR will not apply to income earned/ received by any person from transfer of investments made before April 1, 2017. Earlier, this date was August 30, 2010. Further, Rule 10U( 2) has been amended to provide that GAAR will apply to any arrangement, irrespective of the date it has been entered into, if tax benefit is obtained on or after April 1, 2017. Earlier, this date was April 1, 2015. The industry has been demanding that GAAR pro… News... News...
1. Earning of profit from an incidental activity does not affect charitable status via {DIT vs M/s Lala Lajpatrai Memorial Trust (Bombay High Court)}
2. Demolition/Redevelopment not amounts to transfer, so no withdrawal of 54F via {Shri Dilip Manhar Parekh Vs The Dy. CIT}
3. No addition for mere non-reconciliation of Professional fees with AIR details via {CIT vs. Shri S. Ganesh}
4. Reopening invalid if AO records satisfaction in mechanical manner & without application of mind via {M/S Banke Bihari Properties Pvt. Ltd Vs ITO (ITAT New Delhi)}
5. No TDS on commission paid outside India for services received outside India by Non-Residents via {DCIT vs. M/s Sess Resources Ltd. (ITAT Panaji)}