CA Online

The government is planning to make Aadhaar number mandatory for filing of income tax(I-T)returns from the next financialy ear and link all bank accounts to the uniqueidentity number by the end of this financial year. Sources in the government said the work on both fronts was moving steadily and relevant amendments to the Income Tax Act,1961,in this Budget are under‘ active discussion’ to ensure mandatory link age of tax returns to Aadhaar numbers.At the same time,the Aadhaar-based authentication of beneficiariesis to b e mademandatory for delivery of subsidised grain under the public distribution system(PDS). The decision for both these was taken in May at a meeting held at the Prime Minister’sOffice (PMO).It was at this meeting that the government also decided to link Aadhaar to delivery of big social schemes of the central government. In its May meeting,the PMO decided “Aadhaar numbers of individuals and office be arersofentitiesshouldbe obtainedinI-Treturns,starting assessmenty...

There is a possibility that the General Anti-Avoidance Rules (GAAR,ontaxes)and the tax treaties signed by the government with those of Mauritius,Singapore and Cyprus,and even othernations suchasNetherlands,couldbeovertakenbyanotherevent. These could,say experts ,be partially or fully over ridden by the Multilateral Instrument (MLI) to implement tax treaty related measures for preventing Base Erosion and Profit Sharing (BEPS). BEPS is a tax avoidance strategy used by multinational companies— profits are shifted from jurisdictions that have high taxes to those with low or no taxes.The Organisation for Economic Cooperation and Development (OECD)grouping of countries had developed the MLI to tackle such issues.A little over 100 countries had adopted the MLI by November 2016.It will be signedby themthisJuneandislikelytobe implementedbyIndiainApril2018 or2019. The MLI and related BEPS measures will be implemented through amendments in the IncomeTax(I-T) Act.“MLI islikely to override t...

The Securities and Exchange Board of India (Sebi) is considering a plea by the stock exchanges to allow trading of their own shares under the ‘permitted-to-trade’ category. If allowed, shares of BSE will trade on the BSE. Similarly, shares of the National Stock Exchange (NSE) will be allowed to trade on its own platform. “Sebi and exchange officials met last week to discuss the issue. The regulator is consulting more participants and legal experts,” said a source. Sebi, BSE and NSE declined to comment. An exchange may allow trading in any company, even if not listed with it, under the permitted to trade mechanism. For instance, the Multi Commodity Exchange of India is exclusively listed on BSE but its shares also trade on the NSE under this segment. Sebi’s regulations don’t allow exchanges self-listing and self-trading. “The market regulator has taken a firm stand on not allowing self-listing. However, it is studying the risks in allowing self-trading,” said a regulatory offici...

If you are planning to buy a second-hand vehicle, here’s a tip: Transfer the old insurance policy in your name or buy a new one immediately. This is the first step you should take to ensure that the vehicle is covered. This can be done even if the vehicle is not transferred in your name. All you need is a proof — receipt from the regional transport office (RTO) —that your application for transfer of registration certificate is in process. Recently, the Pune district consumer forum ruled that an insurance company can reject a claim if the new owner of a car had not transferred the old policy in his name. A Pune-resident purchased aused car that met with an accident two months later. While the vehicle was registered in his name, he had not transferred the old insurance policy nor bought a new one. He approached the authorised centre, which quoted ~1.44 lakh for repairs. But when he lodged aclaim with the insurer (Bajaj Allianz GIC), the claim was rejected. The new owner approached th...

Apple will increase prices of applications on its App Store in the country,by upto 33 percent,with the government introducing a 14.5 percent service tax and the falling value of the rupee. An app costing $0.99 (aboutRs.68)on the App Store in the US will now cost Rs.80 in India as opposed to Rs.60 earlier.The move is part of a global change in prices of apps, an exercise Apple engages in periodically. Apple communicated the changes in pricing to developers and was reported by digital media outlet Mac Rumors. The government introduced a service tax of 14 percent and levy of 0.5percent from December1 last year on all services sold digitally.This equalisation levy was introduced as part of a global move by nations to tax digital goods sold from outside a country.It is now popularly known as “GoogleTax”. “Price tiers on the App Store are set internationally on the basis of several factors, including currency exchange rates,business practices,taxes,and the cost of doing business.These fa...

Foreign portfolio investors (FPI) can now breathe easy with the Income Tax (I-T) Department on Tuesday putting in abeyance its controversial circular on taxing India-dedicated funds. Experts said clarity was necessary on the issue at the earliest so that FPIs were certain. They expect the finance ministry to amend the law in the Budget to put an end to the controversy. The circular, in the form of frequently asked questions (FAQs), had spooked the markets when it was issued last month. It also gave rise to fears of retrospective taxation as the principal amendment to the Income Tax Act on indirect transfers was such in nature. These provisions were first introduced in 2012, with retrospective effect, after the government failed in levying a tax on the British telecom giant Vodafone Group Plc’s purchase of Hutchison Whampoa’s India telecommunications business. The Central Board of Direct Taxes (CBDT) and the capital markets division of the finance ministry have received a number...

New Delhi: The new division of administrative control between the centre and the states under the goods and services tax (GST) will ensure that at least 1.4-1.5 million taxpayers remain under the purview of the Central Board of Excise and Customs (CBEC) in the new indirect tax regime. However, CBEC is likely  to lose a substantial portion of its service tax assessees, an issue that is causing angst among officials. After states demanded a larger pool of  taxpayers to administer in the initial round of negotiations in the GST council, the CBEC was threatened with redundancy leading to a prolonged face-off with states.  18th JANUARY 2017,MINT, NEW-DELHI

Mumbai: The Securities and Exchange Board of India is planning a makeover for stock trading rules and some of the key norms governing stock exchanges,  clearing corporations and market intermediaries such as brokers and depository participants. About a month ago, Sebi commenced a study of markets, trading behaviour, functioning of intermediaries and the ability of institutions such as exchanges and clearing corporations to handle increased  market activity, two people familiar with the development said. They said the regulator is revamping norms to strengthen its scrutiny of defaulters, enhance transparency in dealings and mitigate liquidity risks arising out of increasing algorithmic trading. One of Sebi’s top priorities is to  tighten surveillance and risk management norms for stock exchanges so that they are able to collect more elaborate data on trading, price movements  and dealings between market participants. 18th JANUARY 2017,MINT, NEW-DELHI

Finance minister Arun Jaitley is likely to significantly increase public investment in infrastructure in his upcoming budget, offering fiscal stimulus to boost economic growth at a time when private investment shows no signs of a pick-up. There is near unanimity that the economy needs to be spurred through higher public investment, unlike last year when there was a significant divergence of opinion over the need for fiscal stimulus, said an official with knowledge of the thinking within the government. The official requested anonymity. Last year, chief economic adviser in the finance ministry Arvind Subramanian advocated a stimulus, but the minister decided to stick to the  fiscal deficit target of 3.5% of gross domestic product (GDP), fearing a backlash from investors and rating agencies. “Different schools of thought have argued either in favour of fisaverage cal consolidation and stability or for a less aggressive consolidation  and for boosting growth. I have weighed the ...

Govt had to give an option to domestic black money holders to declare their unaccounted wealth. In a minor relaxation to IDS tax payment rules, the Income Tax Department has said disclosures under the scheme will be considered valid even if the tax amount has been realised by December 5. The first instalment of taxes was to be paid by November 30. The government had come out with a 4-month long Income Disclosure Scheme, which closed on September 30, 2016, to give an option to domestic black money holders to declare their unaccounted wealth and come clean by paying 45 per cent tax and penalty. In an instruction to principal commissioners, the income tax department has asked them to condone the delay in payment of first  instalment which has arisen due to "genuine technical difficulties". "CBDT hereby directs... To accept the request for condonation of delay in payment of tax payable under the scheme in cases where payment has been made through cheque, RTGS, electronic tr...

CBDT circular had raised multiple taxation concerns Foreign portfolio investors (FPI) can now breathe easy with the Income Tax (I-T) Department on Tuesday putting in abeyance  its controversial circular on taxing India-dedicated funds. Experts said clarity was necessary on the issue at the earliest so that FPIs were certain. They expect the finance ministry  to amend the law in the Budget to put an end to the controversy. The circular, in the form of frequently asked questions (FAQs), had spooked the markets when it was issued last month.  It also gave rise to fears of retrospective taxation as the principal amendment to the Income Tax Act on indirect transfers was such in nature.  These provisions were first introduced in 2012, with retrospective effect, after the government failed in levying a tax on  the British telecom giant Vodafone Group Plc’s purchase of Hutchison Whampoa’s India telecommunications business. The Central Board of Direct Taxes (CBDT) and t...