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 RBI increases bond investment limit for foreign portfolio investors Net increase in government bonds will be Rs 592 billion in two years The Reserve Bank of India (RBI) on Friday increased the bond investment limit for foreign portfolio investors (FPI) by a percentage point in two phases — a move that will allow foreigners about Rs 1.4 trillion of extra play in Indian bonds by the end of FY20. “The limit for FPI investment in central government securities (G-secs) would be increased by 0.5 per cent to 5.5 per cent of outstanding stock of securities in 2018-19 and 6 per cent of outstanding stock of securities in 2019-20,” the RBI said. Net increase in government bonds will be Rs 592 billion in two years. Corporate bonds would see their limits go up by Rs 447.8 billion by the end of FY20. At the end of December, FPIs held about 4.5 per cent in outstanding government bonds, but that limit was to increase to 5 per cent by March. Now, the central bank has increased it by a full...

  Industry and tax experts seek one tax on capital gains in listed funds Consultants PwC India recommended levying either securities transaction tax (STT) or capital gains tax on listed securities, instead of levying both  Industry and tax experts have pitched for a single levy on capital gains of listed securities, besides a reduction in the equalisation levy and abolition of minimum alternate tax (MAT), to a high-level panel looking into the overhaul of the 60-year-old income tax law The government had set up a committee under Central Board of Direct Taxes (CBDT) member Arbind Modi to look into the income tax systems in various countries and global best practices, among others. The panel is drafting the New Direct Tax Legislation and is likely to submit its report by May 31. It is also expected to revisit the income tax slabs, while widening the tax base. Consultants PwC India recommended levying either securities transaction tax (STT) or capital gains tax on listed ...

  Sebi to take action against 14,720 entities for ‘non-genuine trades’ Sebi begins adjudication proceedings against 567 entities involved in ‘non-genuine trades’ through illiquid stock options segment in the first phase The Securities and Exchange Board of India (Sebi) has decided to take appropriate regulatory action against more than 14,700 entities in a phased manner for executing “non-genuine trades” through illiquid stock option segment. Adjudication proceedings have been initiated against 567 entities involved in such trades in the first phase. The markets regulator came across violations by 14,720 entities while it was probing 59 entities in a case related to alleged trading irregularities in stock options segment of the BSE. The 59 entities were probed to check whether they violated norms pertaining to fraudulent trade activities during the period from 1 April 2014 to 31 March 2015. Later, the scope of investigation was expanded to cover all the entities that had indu...

Don't deal with entities related to Bitcoins, RBI tells banks and NBFCs The RBI has repeatedly cautioned users, holders and traders of virtual currencies, including bitcoins The Reserve Bank of India (RBI) on Friday asked banks, non-banking financial companies (NBFCs) and payment service providers to disassociate themselves from entities dealing with virtual currencies, including bitcoins, with immediate effect. The notification comes a day after the central bank in a 'Statement on Developmental and Regulatory Policies' warned of risks associated with virtual currencies. The RBI has repeatedly cautioned users, holders and traders of virtual currencies, including bitcoins. The services flagged by the RBI include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, among others. In This Budget speech on February 1, Finance Minister Arun Jaitley had said cryptocurrencies were not legal and af...

Changes you need to know for I-T returns When you file your income tax (I-T) returns in July, you will have to fill details such as allowances that are not exempt, value of perks, and profits in lieu of salary in the new I-T return forms notified for the assessment year 2018-19. A one-page simplified ITR Form-1 (Sahaj) can be filed by an individual who is a resident having income up to Rs 50 lakh and who is receiving income from salary, one house property and other income (interest, etc), the I-T department said. The detailed break-up of salary was not part of ITR forms last year but has been added this year. Similar details have to provided for income from house property. Gender mention requirement has been removed from ITR-1. Non-resident individuals cannot use ITR-1 to file returns and will have to use ITR-2 or -3, depending on their nature of income in India. Tax experts said this could raise their compliance costs. The ITR-1 form is similar to the one for the previous assess...