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Showing posts from September 18, 2018

Overseas investors buying rupee bonds will get tax exemption on interest income: CBDT

Overseas investors buying rupee bonds issued by Indian entities will not need to pay tax on their interest income, the government said on Monday, as it attempts to encourage capital inflows and support the rupee. The Central Board of Direct Taxes (CBDT), the apex direct tax body, said in a statement that interest payable to a nonresident or a foreign company regarding offshore rupee bonds issued from Monday till 31 March 2019 will be exempt from tax, and hence, no tax will be deducted on interest payment at source. The CBDT statement said legislative changes will be proposed in due course. NTPC Ltd and Housing Development Finance Corp Ltd have sold rupee bonds to raise funds from abroad. It helps the borrower avoid currency risks which are borne by the investor. The ongoing rupee depreciation has hurt industries using high quantities of imported raw materials. The domestic price of auto fuel, which is linked to international dollar price of the commodity, has also risen in recent month…

KYC norms: Directors protest disqualification, seek time to finish process

Company directors who have not authenticated themselves have written to the secretary to the Ministry of Corporate Affairs (MCA), seeking more time to complete the process. They said the MCA 21 site was not working and because of that they could not complete their know your customer (KYC) norms. The MCA is deactivating the registrations of 2 million directors because they did not update their KYCs. In 60 days, 1.2 million directors have completed their KYCs. The remaining will be disqualified unless they update their KYC and pay a penalty to the ministry. There were 3.2 million active director identification numbers (DINs) with the Registrar of Companies. The ministry is planning to track down each director who has not completed his or her KYC. Stating that the ministry will not extend the time to update KYC, sources said it was the directors’ fault and not the ministry’s. “If they have not done it, they deserve to pay a fine,” an official said, adding the system had the capacity to ha…