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Empowering AIFs can bring capital for start- ups and have positive spillover effects on economy, say investors The Alternative Investment Funds ( AIF) sector, comprising private equity ( PE) and venture capital ( VC) entities, is expecting Budget 2016 to align the tax rate for listed and unlisted market transactions. Currently, capital gains tax on investments in publicly listed companies are treated as long- term capital gains ( LTCG) and taxed at zero per cent if held for over a year, and as short- term capital gains and taxed at 15 per cent if held for less than a year. However, in an unlisted company (or start- up), while investments for over three years are considered longterm and attract a tax of 20 per cent, investments of less than three years fall under short- term capital gains and are taxed at 33 per cent. This, the AIF sector says, acts as a deterrent to investing in riskier assets. According to Saurabh Srivastava, co- founder, Indian Angel Network, investments by

Service levy, surcharge waiver approved Service charge, user charge and convenience fee paid by gateways and vendors on online or card payments would be waived once steps approved by the Cabinet on Wednesday come into effect. Also, above a threshold, one has to make payment online or through cards. The move would discourage cash payment and help tax authorities get leads on evasion. The Cabinet approved various steps in this regard to be taken in a year to two years to boost these payments. Service charge is currently levied by payment gateways and paid to the government. The vendor using a payment gateway also pays aconvenience charge. On credit cards, it is 1- 2.5 per cent. The move will help the government in carrying out its financial inclusion programmes digitally. “ It will help reduce transaction cost and encourage electronic mode of payment, facilitating the financial inclusion agenda of the government,” said Kalpesh Mehta, partner, Deloitte Haskins & Sells. The

Days ahead of the Budget, finance minister Arun Jaitley on Wednesday said that India needed competitive tax rates to become an attractive manufacturing hub that will help create jobs and boost economic growth. "In order to keep manufacturing competitive, we have to keep our rates competitive and, therefore, have to occasionally vary those rates...," Jaitley said at the Investiture Ceremony 2016 and Annual Central Excise Custom Day Function. Manufacturing is not only an extremely important activity but it is one activity with its spiral effect on the economy which also creates the largest volumes of job, and a tax on that manufacturing adds to the government revenue, he added. He said the revenue was the lifeline of governance and if governments have no adequate revenue, it becomes almost impossible for the government to function. The corporate tax may see a small reduction from the current 30 per cent rate as the finance minister moves to reduce it to 25 per cent ov

Goods and Services Tax (GST) can bring a huge relief for ecommerce companies in the country, Internet and Mobile Association of India (IAMAI) has said in a representation to the government. IAMAI said that various states levy different taxes on sellers on ecommerce marketplaces ­ many of whom are micro, small and medium businesses scattered across India ­ which are difficult to comply with and the industry is seeking a common rate and some clarity on taxation in order to boom. Subho Ray , president of IAMAI, said that while the large ecommerce companies in the country may have the wherewithal to deal with such issues, the smaller players who are still trying to find their feet in the market do not. “Right now we have 5-6 states troubling the industry , if the GST doesn't get passed in Parliament, we will have issues with all 2829 states,“ he said. Ray said that only two to three large ecommerce players may be able to survive in such a situation. Vijay Shekhar Sharma, CEO

get NPS-like treatment; Additional deduction of 50k under 80CCD Contributions to the Atal Pension Yojana (APY) will now be eligible for the same tax benefits as the National Pension System (NPS), according to a circular released by the Income Tax department. The tax benefits include the additional deduction of Rs. 50,000 under section 80CCD(1) introduced in last year's Budget. The APY is open to Indians aged between 18 and 40 years and has a minimum tenure of 20 years. Nearly 20 lakh subscribers have joined the scheme since its launch in June 2015.The APY replaced the NPS Lite or Swavalamban scheme, which got about 45 lakh subscribers in the past six years. The biggest draw of the APY is that the government will contribute 50% of the contribution made by the investor for a period of five years. But this benefit will only go to subscrib ers who put in less than Rs 1,000 a year and those who join the scheme before March 31, 2016. Those with taxable income are also not eligible.

www.caonline.in News... 1.NICASA of NIRC of ICAI is organising Seminar on 28/2/2016 at ICAI, Vishwas Nagar, Delhi for CPT CA Students on How to face Exam and Amendments from 10AM-1PM and Service Tax for all Students from 2PM-5PM. No Fee. 2.NIRC of ICAI is organising a Discussion on Union Budget on 1/3/2016 By CA Amarjeet Chopra Ji (Hon'ble Past President), CA(Dr) Girish Ahuja ji CA Atul Gupta Ji, CCM and CA Ashok Batra ji at Satya Sai Audi at 10AM. No Fee. Free Budget Copy. 3.Union Bank invites applications from CA eligible/interested firms/companies for empanelment as Concurrent Auditors for F.Y. 2016-17. 4.Get ICAI Now Mobile App for latest ICAI Updates - Available on Android, iOS, Windows and Blackberry 10. To download please visit http://www.icai.org/mobile 5.MCA invites comments on draft Companies (Incorporation) second Amendment Rules, 2016 & Companies (Authorized to Register) Amendment Rules, 2016 till 2 Mar 2016. 6.MCA invites comments on Draft Companies (Cost R

Capital markets regulator to decide on brokers suspected of selling NSEL contracts as investment vehicles The capital markets regulator will seek a report from Mumbai police’s economic offences wing (EOW) to decide whether it needs to act against brokers who may have engaged in mis-selling contracts in the National Spot Exchange Ltd (NSEL) scam, two persons familiar with the development said. After procuring a report from the police wing, the Securities and Exchange Board of India (Sebi) will examine whether some brokers indeed violated regulations, the two persons said on condition of anonymity. Some brokers are suspected to have sold NSEL contracts as investment vehicles. Around 200 brokers are alleged to have sold NSEL products by promising an assured return to investors. Trading was halted on NSEL in July 2013 after a Rs.5,574 crore settlement scam surfaced at the commodities bourse, which is 99.99% owned by Financial Technologies India Ltd (FTIL). This month, the ministr