CA Online

RBI restricts withdrawal limits on Jan Dhan accounts to Rs 10,000; cites ‘farmer protection’ The Reserve Bank of India has put withdrawal limits on bank accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) which are funded through deposits of Specified Bank Notes (SBNs) after November 9. The notification issued by RBI stated that the limits are being imposed to protect “innocent farmers from activities of money launders and legal consequences under the Benami Property Transaction & Money Laundering laws”. As per the notification, banks can allow fully KYC compliant account holders to withdraw only Rs 10,000 in a month. However, the bank managers can also allow withdrawal of more than Rs 10,000 within ‘current applicable limits’ after ‘ascertaining the genuineness of such withdrawals’. On the other hand, non KYC compliant account holders are entitled to withdraw only half the amount, ie Rs 5,000, in a month within the ceiling of Rs 10,000. After the central government annou...

Kolkata: Our Bureau Feedback sought on consumer problems in case of termination of telecom services The telecom regulator has floated a new discussion paper seeking clarity on issues faced by consumers, typically, when operators need to switch off networks due to changes in licencing rules, discontinuation of a particular mobile technology or even the advent of spectrum trading. In a consultation paper issued Wednesday, the Telecom Regulatory Authority of India (Trai) has sought views from stakeholders on whether the notice period to subscribers in case of a services closure needs to be enhanced from 30 days to 60 days to give customers enough time to use up their talktime balance. It has also sought views on whether a telco needs to give such 60 days advance notice to customers, the telecom department (DoT) and Trai if it is selling airwaves in a particular circle and shutting down operations. The regulator has also sought industry feedback on whether a telco migrating customers to a...

NEW DELHI: The financial systems of the country have to be made Aadhaar-enabled to make the transition to a digital economy. This is one of the decisions taken by a group of ministers which is charting out a strategy for digital payments. The Aadhaar link should be made even at the existing Point of Sale (PoS) level and at the internet banking level to “formalise cashless banking in the country,” it was felt The group, led by minister for Electronics and IT, Ravi Shankar Prasad, which met for the second time in a week, also suggested that public sector banks should make the initial push towards digitalisation. One government official who attended the meeting said the idea was to make bankers focus more on digital payment modes instead of across the counter mode of operations. Aadhaar is being pushed because it doesn’t require people to remember their PINs or password, which can be an issue with the poor and the illiterate. Through Aadhaar, only biometric based authentication is needed...

Taxmen seized 55% more cash and jewellery during April-October 2016, compared to the same period last year, while income-tax raids increased by 46% during the period, a top officer in the tax department told HT. (PTI) Taxmen seized 55% more cash and jewellery during April-October 2016, compared to the same period last year, while income-tax raids increased by 46% during the period, a top officer in the tax department told HT on the condition of anonymity . The result: R7,700 crore worth of black money has been unearthed since April, against R5,030 crore during the whole of 2015-16. The surge is mainly because of the government’s stepped-up efforts to contain black money, sources said. “Given the government’s schemes for disclosing black money, the tax department wants more people to use them. Increased vigil will ensure more people opt for the black money disclosure schemes,” said the official quoted above. Bengaluru tops the list of cities, where black money has been unearthed (R1,85...

With insolvency professional agencies getting registered, the Insolvency and Bankruptcy Code will become operational from tomorrow. The Code will help quicker resolution of cases and unlock value of assets, Mamta Binani, President, ICSI, the apex body of company secretaries, told reporters here today. "The entire Insolvency and Bankruptcy Code will be functional from tomorrow," she said. Both ICSI (Institute of Company Secretaries of India) and ICAI (Institute of Chartered Accountants of India) have registered not-for-profit companies under the Code to act as insolvency professional agencies. The Insolvency and Bankruptcy Board of India (IBBI) has been set up under the Code that seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner. 1ST DECEMBER 2016, THE BUSINESS STANDARD , NEW-DELHI

Amended law provides those with unaccounted cash or deposits of cancelled .? 500 and .? 1,000 notes to pay 50% tax; plan to use funds from deposit scheme for pro-poor programmes New Delhi: The Lok Sabha on Tuesday passed the Taxation Laws (second) Amendment Bill, which provides another chance for people with unaccounted cash to come clean. The Taxation Laws (Second Amendment) Bill, 2016 was passed by a voice vote in a complete din without any debate. The amended law provides those with unaccounted cash or deposits of cancelled 500 and 1,000 notes to pay 50% tax and come clean, or else, if caught, face a much harsher penalty and possible prosecution. A quarter of the amount declared will be locked up for four years in interest free deposits, leaving such declarant with only 25% of funds for immediate use. Finance minister Arun Jaitley said the government had made these changes after it was seen that people were trying to launder the demonetised currency. “It was seen after November 8 t...

Limited personnel at the income tax department might compel them to focus on big fish than small depositors The tax department will go after 'big fish' in probing deposits made in demonetised Rs 500 and Rs 1,000 notes but also intend to investigate  small deposits, including Jan-Dhan accounts, if the probe into big tax evaders gives clues for irregularities in these accounts.   “If our investigation team cracks down on a person using, say 20 accounts to convert his black money, we will investigate all those accounts involved, irrespective of whether they have Rs 40,000 deposited in Jan-Dhan or Rs 1 lakh in other accounts,” said an official. He added that enquiries are already on in full swing.   However, limited personnel at the income tax department might compel them to focus on big fish than small depositors. Notices might be sent only after January 2018, as tax returns are filed by July and assessments happen after six months, since these accounts would come up for sc...

The first instalment of tax payment from those who have availed of the Income Declaration Scheme (IDS) 2016 stood at Rs 3,500 crore as on Monday November 28. This, according to officials, could swell to Rs 7,500 crore by Wednesday November 30, the last date.   The exchequer is expected to get Rs 30,000 crore from declarations worth Rs 65,250 crore under IDS in three instalments. Of this, Rs 15,000 crore would come in the current financial year through two instalments of Rs 7,500 crore each. “People will pay up as IDS is much more lucrative than the new disclosure ... 30TH NOVEMBER, 2016, THE BUSINESS STANDARD, NEW DELHI  

CAs not sure if individuals declaring unaccounted money will get immunity from reassessment as these provisions are not covered in the Bill Chartered accountants (CAs) have been flooded with calls after the government declared another voluntary income disclosure scheme for unaccounted money. The topmost concern of individuals is whether depositing unaccounted money in their bank accounts could also lead to the income tax department opening up previous years’ returns for reassessment. Revenue Secretary Hasmukh Adhia has said that the disclosures will enjoy immunity from wealth tax, civil and other taxation laws, but there will be no immunity from foreign exchange violations, narcotics and black money laws.  30TH NOVEMBER, 2016, THE BUSINESS STANDARD, NEW DELHI

Markets regulator Sebi today issued a new framework for functioning of stock exchanges and clearing corporations that are setting up their operations in international financial services centres (IFSCs). The Securities and Exchange Board of India (Sebi) said all categories of exchange-traded products currently available for trading in stock exchanges will be eligible for trading in bourses operating in IFSCs. However, this is subject to prior approval of the market watchdog. Only non-agri commodity derivatives will be eligible for trading. Masala bonds too qualify provided such bonds are listed. These exchange-traded products and masala bonds should be compliant with IOSCO (International Organization of Securities Commissions) and FATF (Financial Action Task Force) norms. Sebi, in March 2015, had issued a detailed set of guidelines for establishing IFSCs as part of its efforts for setting up financial hubs in the country. The first such centre has been set up in Gujarat's GIFT City...

Revenue Secy said I-T Dept wouldn't ask for source of funds deposited in banks from Nov 10, if entire income is declared and 50% taxes are paid  The government on Monday unveiled yet another disclosure scheme for deposits made till December 30 and proposed amendments in the Income-Tax Act, proposing harsher penalty for evaders.  Finance Minister Arun Jaitley introduced a Bill to this effect in Parliament on Monday. This is the third income disclosure scheme introduced by the Bharatiya Janata Party (BJP) government in the past two years.  The latest disclosure scheme - Pradhan Mantri Garib Kalyan Yojana - will allow those depositing money in banned Rs 500 and Rs 1,000 notes to enjoy immunity from certain taxation laws by paying a 50% tax on the undisclosed income. However, the declarants will have to deposit a fourth of the undisclosed income with a four-year lock-in.  “The scheme will be notified after the Bill is passed by Parliament. A fourth of the total declared...