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Showing posts from December 24, 2016

RBI says ban on Rs 1000, Rs 500 notes proposed hours before telecast of PM’s speech

Reserve Bank of India. In response to a RTI query by HT, the central bank said the central board of directors recommended ban on rs 1000 and 500 notes at its meeting in New Delhi on November 8, hours before PM Modi announced the step on TV. (AFP File Photo )

The government and the RBI have kept the consultation process that led to the decision to demonetise 86% of India’s cash in circulation a closely-guarded secret. Both, however, have insisted that the demonetisation plan had been under discussion for long and consultations were being held.

Economic affairs secretary Shaktikanta Das told reporters on November 8 that there was “no need to go into the process which led to this decision. I think what we should be focusing on is the outcome and the decision itself”.

The government’s shock move has led to a severe cash crunch, forcing millions of people to line up at banks and ATM kiosks for more than a month. Cash withdrawals have been restricted, but most banks are unable to provide even …

Report cash receipt over Rs 2 lakh in single transaction: CBDT

NEW DELHI: The Income Tax department today clarified that businesses and traders receiving cash exceeding Rs 2 lakh in any single transaction for sale of goods and services are required to report it to the authorities.

The clarification on the reporting guidelines under Rule 114E of Income Tax Rules, 1962, which came into force from April this year, has come amid doubts being expressed in certain quarters about reporting of cash transactions that aggregate to Rs 2 lakh.

"The norms of aggregation contained in sub-rule 3 of Rule 114E have been amended vide CBDT notification dated October 6, 2016, clearly indicating that the said transactions did not require aggregation and the reporting requirement under SFT for this purpose is on receipt of cash payment exceeding rupees two lakh for sale of goods or services per transaction," the CBDT said in a statement.

Rule 114E of Income-Tax Rules, 1962, for furnishing Statement of Financial Transactions (SFT) came into force with effect fro…

New passport rule: Aadhaar can now be used as date of birth proof

The government on Friday announced that Aadhaar and e-Aadhaar card could be used as proof of date of birth (DOB) while applying for passports.

In order to streamline, liberalise and ease the process of issue of passport, the ministry has taken a number of steps in the realm of passport policy, expected to benefit the citizens of India applying for a passport, said Minister of State for External Affairs V K Singh.

In case of proof of DOB, while filing the application, it has now been decided that all applicants of passports can submit any one of the documents transfer/school leaving/matriculation certificate, PAN card, Aadhaar card/e-Aadhaar having the DOB of applicant, copy of the extract of the service record of the applicant, driving licence, Election Photo Identity Card (EPIC) or LIC policy bond.

Birth Certificate issued by the Registrar of Births & Deaths or the Municipal Corporation or any other prescribed authority whosoever has been empowered under the Registration of Birth &a…

GST Council keeps dual control for next time

The tricky issues of division of administrative turf over assessees between the Centre and states — which can make or break the roll-out of the goods and services tax (GST) on April 1 — was not taken up by the GST Council during its two-day meeting that ended Friday. All other provisions of the draft model GST Bill and compensation Bill were cleared.

The next meeting of the Council, on January 3 and 4, will try to resolve the issue of dividing the administrative powers between the Centre and states, but signals given by state governments on Friday suggest that it would be a difficult task. 

The meeting will also take up the Integrated GST (IGST) Bill.

“That leaves us with the very important work of IGST law and cross-empowerment,” Union Finance Minister Arun Jaitley told reporters after the meeting on Friday.

A state finance minister said states were clear there should be no dual control over assessees with up to Rs 1.5 crore annual turnover. This means that states want sole control ti…