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Don’t forget to include interest earned on investments and also declare those exempt from tax You open a recurring deposit in your child’s name and invest Rs.5,000 every month. If the interest earned on it is not declared while filing tax returns, the authorities can send you a notice, as it would amount to tax evasion. Thats because the interest earned by a child below 18 years is clubbed with the income of the parent. There are several such instances when individuals don’t declare their income or assets because they do not realise these items are taxable. Another example: interest earned on the cash in your savings bank SB account. In a financial year, if a person receives over Rs.10,000 in interest in the SB account, he needs to pay tax on it. “Many people don’t include the interest earned on company deposits, fixed deposits, and postal saving schemes, as tax is deducted at source on these investments. However, they are supposed to declare and pay the applicable on it,” says

The government has reduced the stipulated period for settlement of various claims like provident fund withdrawal, pension and insurance by the retirement fund body, Employees’ Provident Fund Organisation, to 20 days from the existing 30 days. Business Standard, New Delhi, 16th July 2015

With relevant electronic forms still not ready, the corporate affairs ministry has given more time to companies for filing financial statements and annual returns under provisions of the new companies law. Now, firms can make such filings without any additional fee till October 31. Business Standard, New Delhi, 16th July 2015

The Cabinet is likely to consider a proposal on Thursday to merge limits of foreign direct and portfolio investments into composite caps to make foreign investment regime easier. The department of industrial policy and promotion (DIPP) had prepared a Cabinet note proposing a combined cap in most sectors where foreign direct investment (FDI) is allowed or where foreign institutional investors (FII) have a separate limit. Composite caps have been suggested for sectors like agriculture, tea plantations, petroleum and natural gas, manufacturing, airports, real estate, telecommunications, mining, non-banking financial companies and pharmaceuticals. In some sectors where only FDI and FII investments are allowed now, the department has proposed investments by non-resident Indians and foreign venture capital firms as well. These include up to 100 per cent foreign investment in asset reconstruction companies, 74 per cent in private banking, 20 per cent in public-sector banks and 49 per

This could help bypass central legislation and break the land Bill deadlock Ten big states, most of those ruled by the Bharatiya Janata Party (BJP) and its alliance partners, on Wednesday sought to unshackle themselves from the logjam over amendments to the contentious land acquisition Bill, 2013, by proposing to bring their own laws for boosting infrastructure development. At a NITI Aayog meeting to discuss the land Bill ( the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Bill, 2015), which Prime Minister Narendra Modi chaired, several chief ministers stressed that land was  needed  for development and to create  jobs . The PM told the meeting that politics over the Bill was stalling rural development. He said the government would not compromise the country’s development but will keep farmers’ interest in mind. For this, it would consider all suggestions. Several state governments proposed they could enact their own land laws

Hindu migrants from across the border may soon get banking & property rights “We have a responsibility toward Hindus who are harassed and suffer in other countries ...India is the only place for them“ -that was prime ministerial candidate Narendra Modi making a strong campaign pitch. Now, Prime Minister Narendra Modi's government is working to make good that promise. Hindu migrants from Pakistan here on longterm visas may soon be allowed to open bank accounts and buy residential properties -measures that go a long way in integrating them with the economic system, even without Indian citizenship. If this becomes policy, Hindu migrants will be able to open bank accounts on the basis of their visa and residential permits issued by the Foreigner Registration Office (FRO) or the Foreigner Regional Registration Office (FRRO). The Modi government has been active on granting citizenship to Hindus from Pakistan (and Afghanistan as well). As ET had reported on May 21, in one year

The common man may be under the impression that service charges collected by restaurants and hotels go to the government kitty. To set the record straight, the finance ministry on Tuesday explicitly stated that the 'service charges' collected by these eateries is retained by these entities only and should not be confused with the 'service tax'. According to the government, some restaurants, hotels and eateries - besides charging for the food and beverages - are also charging 'service charges' in their bills. "Some of the consumers have a misapprehension that these 'service charges' are being collected by the restaurant on behalf of the Government as tax," the ministry said in a statement. The ministry reiterated that the service tax paid to air-conditioned or centrally heated eating joint is not 14 per cent but 5.6 per cent. It is so because there is 60 per cent abatement. The ministry had earlier clarified that the eateries not havin