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The Prime Minister’s Office ( PMO) is monitoring the response to the four- month domestic black money disclosure scheme, reviewing weekly reports sent by the finance ministry. “Prime Minister Narendra Modi is personally monitoring the ( response to) the domestic black money scheme, with weekly reports being sent to the PMO,” said a finance ministry official. The department of revenue is sending progress reports on declarations received and outreach measures to popularise the Income Declaration Scheme- 2016. According to a finance ministry official, the declarations have indicated the scheme has seen a better response than the one for black money stashed abroad announced last year. The department, however, refused to divulge the number of declarations made so far. “This is the first month and many declarations have already come in, unlike in the case of foreign black money last year when most declarations came in during the last month. But that was also because the number was sm...

Moody's Investors Service has said the relaxation in foreign investment rules is credit positive for India and illustrates that the government's reform agenda remains on track. The US-based rating agency has a positive outlook on India's investment grade Baa3 rating. The government announced FDI reforms earlier this month, bringing more ndustries under automatic approval, raised sector caps for some sectors such as airlines and relaxed local sourcing requirements for single-brand retail. “The announcement ..demonstrates a continuation of reform momentum and paves the way for private nvestment and a boost in productivity,“ the agency said on Monday. It said higher FDI nflows will help support India's external financing needs at a time when portfolio flows have moderated. “Net FDI inflows have increased over the past two years, reaching record highs in the fiscal year that ended 31 March 2016 of $36.0 billion from $24.2 billion on average during the preceding three fisc...

Officials say few willing to declare wealth, Modi's warning may work Tax evaders and avoiders may not bite the bait of Prime Minister Narendra Modi's latest amnesty scheme and officials and consultants estimate the mopup to be only about Rs.1,000 crore, against Rs.33,339 crore declared re, against ` way back in 1997. While there is no official figure released by the government, some tax officers in the know estimated only about Rs. 1,000 crore are likely to be declared. The current scheme caters only to domestic black money and is set to attract a tax rate of 45%. Tax amnesty schemes tend to be fallow ground except when announced at long intervals. India has had 12 amnesty schemes since 1951, four of them since the economy was opened up in 1991. The 2015 scheme by the government had about 638 declarants and revenue of around Rs. 3,770 crore. While the 1997 one was had a revenue of about ` . 9,584 crore from about 4,76,133 declarants. ET spoke to income-tax officers ...

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 househol...

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...

Subramanian said on Sunday that the Goods and Services collection efforts. He also termed the proposed tax system – along with strategic disinvestment and twin balance sheets – as governments major pending agenda. He was speaking at an international conference. Business Standard New Delhi, 27th June 2016

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 n...

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 Café 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 procedu...

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 jum...

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 G...

www.caonline.in 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)}