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Showing posts from June 7, 2017

Daily Update 07-June-2017

*Good Morning Everyone*
*Have a Good Day to all of you*
*Daily Update*

Economic Times
•Paytm's Vijay Shekhar Sharma enters Delhi's posh Lutyens' zone with Rs 82-cr home buy
•NPCI may ask banks not to charge for payments via UPI
•Coca-Cola plans to launch frozen desserts in India
•Indian aviation sector to get $25 billion investment by 2027
•Aditya Birla Group to elevate D Muthukumaran as corporate strategy head

Business Standard
•Alphabet shares touch $1,000, reflects bullishness in tech giants
•3% GST opens room for cheap import of gold jewellery from FTA countries
•Ministries get 60 days to decide on FDI plans
•Doha flights get longer as Indian carriers skip UAE; take Pak, Iran routes
•IMD sticks to normal monsoon forecast at 98% of long period average
•Morgan Stanley sees Sensex rising to 34,000 by June 2018 - Upbeat earnings outlook, strong economic growth cited as reasons for the prediction
•Adani’s Australia coal mine project gets final approval

One Nation, One Tax Dept: I-T Takes Cue from GST

I-T dept may bring in jurisdiction-free assessment, where a taxpayer in one circle could be assessed by an officer in another circle, curbing corruption and speeding up processing

The one-nation, onetax principle that underlines the goods and services tax (GST), set to be rolled out on July 1, could be adopted in a much more broader sense by the income tax department through a path-breaking initiative on jurisdiction-free as sessment.

This would mean that a taxpayer in Mumbai could be assessed by an income tax officer located in Patna, a significant leap toward eradicating corruption by reducing the need for face-to-face contact between citizens and tax officials to the absolute minimum besides speeding up processing.

The move, which will require a change in the income tax law, would also end the relevance of various geographic divisions in the form of wards and circles with the whole country becoming one jurisdiction. This, it is hoped, will put an end to a system in which bribery is s…

Genuine Transactions Won't Get Caught In Tax Tangle

Foreign direct investments into India, employee stock options, and transfer of shares through gifts and offmarket transactions recognised by the central bank, the market regulator, top courts or tribunals will not attract the capital gains tax even if no securities transaction tax (STT) had been paid, putting at rest the lingering concerns over the likely tax incidence on genuine deals.

The Central Board of Direct Taxes (CBDT) announced the final rules for the levy of capital gains tax on certain equity investments where no STT was paid, enabling a separation of genuine transactions that have been recognized by the regulators, a high court, the Supreme Court, or the National Company Law Appellate Tribunal. The notification is significant as it puts an end to the uncertainty that arose after a change in the law in the FY18 budget.

The CBDT had earlier said in the draft notification that the rule, introduced in the budget, would allow the imposition of capital gains tax on the acquisit…

EPFO extends deadline for submitting Aadhaar to June 30

The Employees´ Provident Fund Organisation (EPFO) has extended the deadline for submitting Aadhaar number to June 30 for its over 40 million members.However, the deadline for submission of Aadhaar number would be September 30, 2017, for the northeastern states."All field offices are directed to ensure that Aadhaar Number is furnished by the employer in respect of all new members who join the Employees Pension Scheme, 1995, with effect from July 1, 2017, except North East states where it would be applicable from October 1, 2017

Business Standard New delhi, 07th June 2017

Insolvency code could take time to resolve cases

When the Centre constituted the insolvency and bankruptcy board, the intention was timely restructuring of a company’s finances. Six months since the initial cases were filed, some corporates have willingly chosen the code, while others have resisted the proceedings.

The Insolvency and Bankruptcy Board of India (IBBI) chairman M S Sahoo, in a recent interaction with Business Standard, said the Insolvency and Bankruptcy Code (IBC) would only be successful in the long run. Sahoo said, “I don’t expect many cases to successfully complete resolution within 180 days right in the beginning. It will take time. In the long run, things will stabilise.”

On the right track

“Synergy Doo ray, one of the earliest companies that went in for insolvency is right on track. The company has a resolution prepared,” according to insolvency professional Mamta Binani. Binani, who is working on a number of insolvency cases, is of the opinion that banks are absorbing the code slowly. “Banks are being cautious whi…

ESOPs, M&As out of capital gains tax net

The Central Board of Direct Taxes (CBDT) has provided relief for genuine transactions through which shares were acquired without paying the securities transaction tax (STT).

According to final regulations released on Tuesday, the board provided exemptions for employee stock options (ESOPs) and duly approved mergers and acquisitions (M&As). It also kept shares acquired under the foreign direct investment (FDI) policy out of the ambit of rules on curbing tax evasion through investments in penny stocks.

The tax authority also exempted institutional investors and scheduled banks.The exemption is only for institutions registered as qualified institutional buyers with the Securities and Exchange Board of India (Sebi).

The exemption to banks is aimed at keeping shares acquired through debtequity conversion underaloan restructuring out of the purview of the rules.Only three scenarios will attract capital gains if shares were acquired without paying the STT. The first scenario is when listed…

Govt to sharpen plan for naming & shaming tax defaulters

The tax department is looking at expanding the scope of naming and shaming of defaulters by sharing detailed data with banks, financial institutions and credit rating agencies, among others.

The move is being mulled as part of a broader strategy aimed at arrears recovery and litigation management.In the absence of tax amnesty or income disclosure schemes, which provided a buffer to the government last year, the Centre might have to rely on arrears recovery to meet tax collection target this fiscal year.

A committee has been constituted to recommend measures for expeditious recovery of tax arrears, currently at more than Rs 10 lakh crore. The report would be submitted to the chairman of Central Board of Direct Taxes (CBDT) by July 15.

“Various measures are being considered to recover outstanding dues, and widening the scope of naming and shaming is one such means being explored. The focus this year is going to be on arrears recovery and litigation management,” said a government official.