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The government plans to change the Reserve Bank of India (RBI) Act before the end of the fiscal year so it can set up a new committee to direct the country’s monetary policy, retiring finance secretary Rajiv Mehrishi said. The committee would comprise of appointees from the government, the Reserve Bank of India (RBI), and independent members appointed by the government, but any changes have to be approved by Parliament. “An attempt will be made in December. If it cannot be done by December, then of course by February,” Mehrishi said in an interview, just before his last day in the job. On Monday, Prime Minister Narendra Modi appointed Mehrishi as the top official of India’s home ministry for a two-year period. The central bank and finance ministry have been trying to resolve differences over the panel’s composition — chiefly over the balance of between government and RBI appointees. The government last month signalled a willingness to retreat from a blueprint that would have

Swiss and other Eu ropean banks have asked Indian customers to avail the ongoing one time compliance window granted by the tax department for disclosure of foreign assets. The call has been made in the wake of the final month's deadline to declare and pay tax on assets abroad beginning on Tuesday. A source here told IANS on Monday that Swiss and Britain-based banks are asking Indian customers to provide fresh undertakings that all taxes have been paid on funds deposited by them in respective bank accounts. The Economic Times, New Delhi, 1st Sept. 2015

But, do it soon to minimise the interest levied on liability dues The August 31 deadline for filing income tax returns ( I- T) just has got over. Although filing returns on time has its advantages, the government allows individuals to file I- T returns by up to two financial years. For income earned in 2014- 15, the first deadline is usually July 31. This year it was extended to August 31, as new income tax returns ( ITR) forms were notified late. The second due date is March 2016 and if a person misses that, he or she can even file until March 2017. But every time a taxpayer misses a deadline, he or she loses certain benefits and has to pay interest and, in some cases, a penalty. If you couldn’t file your returns by August 31, experts say you should start the process right away and try to get done with it by the month- end. The department levies one per cent interest each month on the liability. This means, if you file it before September 30, you will only have to pay one per

Event Date Act Applicable Form Obligation 6-Sep-2015 Service Tax Challan No.GAR-7 E-Payment of Service Tax for Aug by Cos 7-Sep-2015 Income Tax Form No.15G, 15H,27C Submission of Forms received in Aug  to IT Commissioner 7-Sep-2015 Income Tax Challan No.ITNS-281 Payment of TDS/TCS deducted/collected in Aug 10-Sep-2015 Excise ER-1 Return for Non SSI assessees for Aug 10-Sep-2015 Excise ER-2 Return for EOUs for Aug 10-Sep-2015 Excise ER-6 Return by units paying duty >  1 crore (CENVAT + PLA) for Aug 12-Sep-2015 D-VAT BE - 2 Advance information for 2nd fortnight of Sep of functions with booking cost > Rs 1 lakh in Banquet Halls,hotels etc. 15-Sep-2015 D-VAT DVAT-20 E-payment DVAT TDS for  Aug 15-Sep-2015 Income Tax Challan No.ITNS-280 Payment of Advance Income Tax : Companies(45%), & Others : (30%) 15-Sep-2015 Providend Fund Electronic Challan cum Return (ECR) E-Payment of PF for Aug ( Cheque to be cleared by 20th) 21-Sep-2015 ESI ESI Challan E-Payment of ESI of Aug

Based on goods and services tax rate and its implementation, some essential items may become cheaper The goods and services tax (GST) is being talked about as the single most powerful tax reform that India will see. The objective is to end the regime of multiple taxes on goods and services and bring them under one rate. The system will change from the current production-based taxation to being consumption-based. Along with bringing about a semblance of uniformity in taxes across states, this is expected to increase efficiency and compliance in the system. A recent note from HSBC Global Research stated that although the growth impact of GST on the economy is difficult to quantify, a positive impact of 100-150 basis points (bps) can be considered assuming an “ideal” GST. One basis point is one-hundredth of a percentage point. The report added that not including goods like petroleum, electricity and alcohol can blunt this range by at least 20 bps. Nevertheless, it is expected that

The Reserve Bank of India ( RBI) has doubled the limit for cash withdrawal at point- of- sale ( POS) in Tier III to VI centres from Rs.1000 to Rs.2000 a day. This will be available for debit cards and open system prepaid cards issued only by banks. RBI said the enhanced amount will add to customer convenience and aid re- cycling of cash in these centres. Business Standard, New Delhi, 28th August 2015

Even before the new land acquisition law comes out of the tumult of political and social justice issues, the Supreme Court has discovered a few legal faultlines in the proposed Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. So there is still time to hear the call of the court in its recent judgment in the case, Soorajmull vs state of Bihar. The case involved a 1981 land acquisition, which was repeatedly notified under the infamous “ urgency” provision but allowed to lapse. The court ruled that the state had denied the land owner “ just and fair compensation for the land from which he was dispossessed well over three decades ago.” So the acquisition was struck down under the new law. On the 2013 law, the court observed that there seemed to an “ unexplained inconsistency between Section 24( 1)( a), which allows an acquisition to stand despite a failure to pass an award while only requiring the compensation to be determined an