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The Securities and Exchange Board of India (Sebi) has asked the commodity market advisory committee headed by Ramesh Chand, agriculture expert and full-time member of Niti Aayog, to recommend measures to increase hedgers' participation in commodity derivatives. Hedging is the core function of the commodity derivatives market and trading and speculation are permitted with regulations only to provide liquidity. When the Forward Markets Commission was regulating commodity derivatives, it allowed margin relaxations for hedging. Sebi, with more powers and resources at its disposal, has asked the committee to take a holistic view on rules to make hedging easy. Hedging is low in commodity derivatives, especially in farm commodities, because the market lacks depth. When banks and other financial players are permitted in commodities and new instruments are allowed, hedging is expected to increase. Sebi has given priority to hedging without waiting for new products and participants

The Reserve Bank of India (RBI) on Wednesday said it is fully prepared to contain market volatility as well as address liquidity needs when foreign currency non-resident (banks) deposits start maturing in September this year. Banks had raised nearly $34 billion between September and November 2013, out of which $27 billion was through FCNR (B) deposits maturing mostly in three years. Banks, then, swapped those dollars with the RBI. The central bank thereafter readied itself by buying forwards dollar. The swaps and the forwards will take care of the dollar requirement and should be neutral for the reserves. However, banks should witness deposit base depletion and some rupee liquidity will be strained. RBI in its first bi-monthly monetary policy had said it was prepared for those. On Tuesday, RBI reiterated that and said it would take “all necessary measures to even out the resultant rupee liquidity gaps through use of appropriate instruments”. Assuring the market that the swaps

The Department of Post will launch its payments bank by Ja nuary next year and top manage ment of the new-age venture would be in-place by July, a senior official said on Wednesday. The Department of Post along with 10 other entities, received in-principle approval from the Reserve Bank to launch payments banks in August last year. The 'in-principle' approval is valid for a period of 18 months. “We (India Post Payments Bank) hope to hit streets by year-end or January because time for us is also very tight. Out of 18 months, we have have lost six months,“ India Post Member for Banking and HRD, MS Ramanujan said. The Economic Times New Delhi,14th April 2016

Introduction of goods and services tax (GST) will help settle the issue of double taxation on some transactions like in case of software, a top finance ministry official said. “On the issue of double taxation on some transactions like software, it is true that there are disputes on the issue pending in various courts and forums, but I sincerely hope that will settle only after the introduction of GST,“ said Sanjay Gupta, Commissioner of Service Tax, Delhi ­ IV, while inaugurating an Assocham national seminar on service tax and Cenvat credit. The Economic Times New Delhi,14th April 2016

You can carry forward losses and revise the returns umpteen times in case of mistakes With the income tax department allowing ample time for filing returns, many taxpayers take it easy. For the income earned in the past financial year (FY16), a taxpayer can file returns up to March 2018. However, sticking to the first deadline of July 31 has its benefits. Say, you make a mistake while filing returns — it can be a wrong computation or incorrect bank account details. If you file returns on time, the income tax (I-T) department will allow you to revise it as many times as you wish until the end of the assessment year. In case of belated filing, the taxpayer loses this advantage. “Not being able to revise returns can lead to problems. For example, in case of wrong computation, the department can send a notice. Incorrect bank account details can delay refunds,” says Vikram Ramchand, founder, Makemyreturns.com. Missing the first deadline also means that the taxpayer cannot carry fo

www.caonline.in News... 1.No TDS on payment to non-resident which is not taxable in India. [Sesa Resources Ltd. vs. DCIT/Union of India (Bombay HC)]. 2.Assessment of holding company with notice to subsidiary is invalid. [Techpac Holdings Ltd. vs. DCIT (Bombay HC)]. 3.CBEC has decided to move to SC to vacate the stay granted by the Gujarat, Delhi and more recently Calcutta HCs on levy of service tax on legal services provided by senior advocates to other advocates and law firms. 4.All domestic e-sellers who supply goods and services to foreign buyers would be classified as exporters. It will allow them to claim benefits under the Merchandise Exports from India Scheme which provides financial incentives. 5.MCA has notified new version of e-forms: DIR-12, INC-22 and MGT-7 with effect from 12th April, 2016. For more News Like us on https://www.facebook.com/caonlineofficial Or Subscribe on mail visit : www.caonline.in

The pension regulator has urged for more tax parity between the National Pension System (NPS) and other pension schemes. “This tax exemption of up to 40% of the retirement corpus is a very big step that the government has taken and which brings us closer to EPF (employee provident fund) and other pension products,“ Pension Fund Regulatory and Development Authority Chairman Hemant Contractor said. “So, it is a welcome move ... Hopefully ... we should see some parity between the other pension schemes.“ FM Arun Jaitley in the 2016-17 budget announced that withdrawal of up to 40% of the corpus at the time of retirement will be made tax exempt in the case of NPS. Contractor said under the NPS scheme, there has been higher growth from the voluntary or nongovernment sector. At present, the total subscriber base under NPS is 1.18 crore and the fund under management is `. 1.15 lakh crore. Contractor said the launch of the eNPS online platform to open new accounts and make contribution