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Despite Supreme Court order, Aadhaar still mandatory for filing I-T returns Income tax rules still maintain that income tax returns cannot be e-filed without quoting an Aadhaar number despite the March 13 Supreme Court order directing the government should not make it mandatory to quote the 12-digit number till the final verdict. The income tax website still bars taxpayers from filing returns without an Aadhaar number in spite of a Supreme Court order indefinitely extending the deadline for mandatory linking of the unique identity number. With only 10 days left for filing income tax returns for financial years 2015-16 and 2016-17, individual taxpayers who haven’t filed their returns for the two years and have not enrolled for Aadhaar are unsure if they can file their returns at all. Income tax rules still maintain that returns cannot be e-filed without quoting an Aadhaar number despite the March 13 SC order directing the government should not make it mandatory to quote Aadhaar ...

Cabinet approves Modicare with budgetary support of Rs 160 bn for 2 years Also gives nod for National Health Mission to complement insurance scheme The Cabinet has approved the Ayushman Bharat or National Health Protection Scheme (NHPS, also referred to as ModiCare), with budgetary support of Rs 160 billion for 2018-19 and 2019-20. Proposed to be portable across India, the scheme is intended to provide health care for at least 40 per cent of the population or 107.4 million households (500 million people). Each family will be entitled to health cover up to Rs 500,000 a year. The Cabinet also gave a nod to continuing the National Health Mission (NHM) till 2019-20, for a cost of Rs 852 billion. NHM provides free services to those below the poverty line and will complement the NHPS, said officials. NHPS will replace the Rashtriya Swasthya Bima Yojana (RSBY), where the annual health cover is up to Rs 30,000. To bring down costs, state governments will calculate package rates for t...

Sebi may impose trading curbs on cos undergoing insolvency proceedings The announcement will likely be made at Sebi's board meeting next week The Securities and Exchange Board of India (Sebi) may impose trading restrictions on shares of companies that are undergoing insolvency proceedings. The move, which is also a demand by industry players, is aimed at reducing volatility in stock prices and curbing manipulation or misuse of price-sensitive information. Sources said the market regulator would lay down a compliance framework for listed companies undergoing insolvency resolution. The announcement will likely be made at Sebi’s board meeting next week. The Sebi board may also announce more checks and balances on algorithmic (algo) trading, reduction of mutual fund costs and changes in buyback and takeover regulations. Sebi is likely to propose new rules for fiduciaries, such as lawyers and chartered accountants, dealing in the securities market but who are not registered wi...

India set to pitch for global framework to tax digital companies The panel under BEPS - Taskforce on Digital Taxation - is expected to come up with a final report by 2020 After global recognition to its equalisation levy on online advertisements from Facebook, Google or Netflix imposed two years ago, India is set to pitch for an international tax measure to tax these companies that earn revenues from a large user base in the country. The framework, technically called the multilateral instrument to implement tax-related measures (MLI) to prevent base erosion and profit shifting (BEPS), will avoid the need to amend individual bilateral treaties. In an interim report - Tax challenges Arising from Digitalisation - released last week, the Organisation for Economic Co-operation and Development (OECD) suggested the use of interim measures like equalisation levy by countries to tax these companies till a long-term multilateral solution is reached. There was, however, no consensus on ...

 Rupee slips 3 paise to 4-month low of 65.20 ahead of key US Fed meet Foreign investors, however, put in Rs 3.44 billion on net basis in the domestic stock markets The rupee slipped by 3 paise to finish at a four-month low of 65.20 against the US currency on Tuesday on some dollar buying by importers and banks ahead of the US Federal Reserve's key policy meet. The home currency opened at 65.2150 and touched a low of 65.2450, before ending at 65.20, down 0.05 per cent from Monday's close of 65.17. Meanwhile, the 30-share BSE Sensex rebounded by 73.64 points or 0.22 per cent at 32,996.76. The greenback's gains against major global currencies ahead of the US Federal Reserve's key policy meet that kicks off later in the day, in which it is expected to hike interest rates, weighed on the domestic unit, dealers said. The rupee started on a negative note at the Interbank Foreign Exchange (forex) market and remained under pressure for the better part of the session on...

Government extends facility of fixed term employment for all sectors  The government has extended the facility of hiring workers on fixed term employment to all sectors for improving the ease of doing business for players intending to hire people for completing specified projects, tasks or orders. This facility was available only for the apparel manufacturing sector as per the Industrial Establishment (Standing Order) 1946. As per a notification issued by the labour ministry to amend the Order, words "fixed term employment in apparel manufacturing sector" will be replaced by "fixed term employment" meaning that facility would be available for all sectors. In his Budget speech earlier last month, Finance Ministry Arun Jaitley had said, "the facility of fixed term employment will be extended to all sectors". The fixed term employment was introduced in apparel manufacturing sector in Industrial Employment (Standing Order ) Act in October, 2016. The con...

Sebi liberalises spread margin benefit in commodity futures contracts Currently, margin benefit of 75 per cent in initial margins is given in spread trading The Securities and Exchange Board of India (Sebi) has liberalised spread margin benefit in commodity futures contracts.So far, only calendar spreads or spreads consisting of two contract variants have the same underlying commodity.Sebi has now allowed spread contracts across futures contracts in a commodity complex or inter-commodity spreads, with margin benefits from July. Currently, margin benefit of 75 per cent in initial margins is given in spread trading.From July, the benefit in initial margins for such spreads will be permitted when each individual contract in the spread is from the first three expiring contracts.Normally calendar spread takes place in near-month and far-month contracts.Usually, carry traders and financiers trade in spread contracts. The difference in prices of two contracts gives them returns when...

India's CAD likely at 1.7% this fiscal: Report India's current account deficit is expected to be around 1.7 per cent of GDP in this financial year, largely owing to higher oil prices, says a report. With the December quarter current account deficit worsening to 2 per cent of GDP, Bank of America Merrill Lynch (BofAML) raised its current account deficit (CAD) forecast for this financial year and for the next fiscal. The global financial services major has raised its CAD forecast by 10 bps to 1.7 per cent of GDP in 2017-18 and by 20 bps to 1.9 per cent of GDP in 2018-19. According to data released by the Reserve Bank on Friday, the CAD rose to 2 per cent of the GDP at USD 13.5 billion in the December quarter, up from USD 8 billion or 1.4 per cent in the year-ago period, on the back of higher trade deficit. On a cumulative basis, CAD more than doubled to 1.9 per cent of GDP in the April-December 2017 period. The Business Standard, New Delhi, 20th March 2018

Manufacturing sales improve in Q3, profit subdued: RBI  The country's manufacturing sector witnessed an improvement in sales growth in the third quarter this fiscal on annual basis, though net profit has remained subdued due to lack of support from other income, says a RBI data on performance of private corporate sector.  The RBI data released today said the information technology (IT) sector recorded a modest improvement in sales growth, although lower than a year ago.  The services (non-IT) sector showed signs of revival as reflected by positive sales growth, it added.  This data is based on abridged financial results of 2,705 listed non-government non-financial (NGNF) companies for third quarter of 2017-18.  As per the data, sales of manufacturing companies increased by 14 per cent in the October-December quarter of 2017-18 compared to similar period of the previous fiscal.  The net profit of the manufacturing companies declined by 2.4 per cent i...

SEBI exempts govt from open offers for 6 PSBs post capital infusion Sebi has given exemption from open offer requirements with respect to six lenders—PNB, Canara Bank, Syndicate Bank, Vijaya Bank, Bank of Baroda and Union Bank of India Markets regulator Securities and Exchange Board of India (Sebi) on Monday exempted the central government from making an open offer for the shareholders of Punjab National Bank (PNB), Canara Bank and four other state-owned lenders following capital infusion. The exemption has been given with regard to Syndicate Bank, Vijaya Bank, Bank of Baroda and Union Bank of India also. Following capital infusion in these listed public sector banks, the government’s respective stakes would rise in them. Under Sebi norms, an entity whose shareholding in a listed company goes beyond a particular threshold, then it has to make an open offer. Sebi has given exemption from open offer requirements with respect to the six lenders through six separate but similarly-w...

CBEC to verify GST transitional credit claims of 50,000 taxpayers  In order to check "frivolous and fraudulent" tax credit claims by businesses, the CBEC has decided to verify demands of top 50,000 tax payers claiming maximum GST transitional credit, starting with those where the quantum exceeds Rs 25 lakh.  The verification of "unreasonable" transitional credit claims would be conducted in four phases, a source said, adding that credit verification will remain one of the focus areas in 2018-19.  As part of transition to GST last July, taxpayers were allowed to file Form TRAN-1 and avail tax credit on the basis of closing balance of the credit declared in the last return under the pre-Goods and Services Tax regime.  In order to check "frivolous and fraudulent" transitional credit claims, the CBEC has shared with field offices the list of 50,000 taxpayers whose claims would be further scrutinised.  It is suspected that some of these businesses might...