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People with annual income of over Rs. 50 lakh will have to disclose the acquisition cost of all assets like land, building and ewellery in the Income-Tax return forms for assessment year 2016-17. The luxury items to be disclosed will also include utensils, apparels and furnitures studded with precious stones and ornaments made of gold, silver, platinum or any other precious metal or alloy. “The amount in respect of assets to be reported will be the cost price of such assets to the assessee,“ the CBDT has said while issuing instructions on the new ITR forms. The Economic Times New Delhi,05th May 2016

To ensure the “highest degree of safety“, Sebi on Wednesday asked clearing corporations to invest their money broadly in fixed deposits, government securities and liquid schemes of debt mutual funds. The market regulator has issued the circular in this regard after taking into consideration the recommendations made by an expert panel on issues pertaining to investment policy of clearing corporation. Clearing houses are associated with an exchange to handle the confirmation, settlement and delivery of transactions, fulfilling the main obligation of ensuring transactions in a prompt and efficient manner. While framing the `investment policy', the clearing corporations will have to consider highest degree of safety and least market risk, Securities and Exchange Board of India (Sebi) said. The investments need to be broadly in fixed deposits, central government securities and liquid schemes of debt mutual funds. These fixed deposits should be made with banks having a net wo

Must for Builders and Developers: After section 80-IB of the Income-tax Act, section 80-IBA shall be inserted with effect from the 1st day of April, 2017. The section was inserted by Finance Act, 2016. Where the gross total income of an assessee includes any profits and gains derived from the business of developing and building housing projects, there shall, subject to the provisions of this section, be allowed, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business. Approval of Project between : 01/06/2016 to 31/03/2019 Project Should be Completed within 3 Year of Approval. If approval for more than 1 time than 3 year from first approval.Project was deemed to be Completed when a certificate of completion of project as a whole is obtained in writing from the competent authority. Where a residential unit in the housing project is allotted to an individual, no other residential unit in the housing project shall be allotted to the i

Country's top auditor, Comptroller and Auditor General of India (CAG), has pointed out that 24 central public sector enterprises (CPSEs) did not issue bonus shares despite having free reserves in excess of their paid up capital. The CAG observations come at a time when the government is looking to push CPSEs to either achieve their capital expenditure plans failing which they may need to either give out special dividends or go for buybacks. This could raise the pressure on these companies to productively deploy their cash. ET had reported last week that government is looking at buybacks by state run companies to meet its ambitious disinvestment target of Rs. 56,500 crore. In its audit report, the CAG has noted that in case of eight CPSEs, managements are yet to amend Articles of Association to provide for buyback of shares. The report further notes that 10 CPSEs which includes MMTC Ltd, NMDC Ltd and Bharat Electronic Ltd did not formulate their investment policy for investi

Rs. 1.73 lakh crore of public sector bank money stuck in top 100 non- performing accounts as of Dec 2015 There were 7,686 wilful defaulters owing ? 66,190 crore to stateowned banks as of December 2015, Jayant Sinha, minister of state for finance, told Rajya Sabha on Tuesday. Sinha also said that the total outstanding amount in top 100 nonperforming accounts ( NPAs) with public sector banks ( PSBs) was Rs. 1.73 lakh crore as of December 2015. Sinha said the number of wilful defaulters of PSBs rose from 5,554 to 7,686 in three years to December 2015 while the amount involved more than doubled to Rs. 66,190 crore from Rs. 27,749 crore. “ The total exposure of top 50 defaulters of PSBs as of December 2015 was Rs.1,21,832 crore,” he said in a written reply in the Upper House. In another reply, Sinha said there were 1,365 borrower accounts having outstanding of Rs. 500 crore and more at the end of December 2015. He said government has taken specific measures to address issues in sector

The Reserve Bank of India ( RBI) is looking to put in place a regulatory framework to check fraudulent electronic transactions. This is expected to fix the liability issues arising out of such transactions, the government informed Parliament on Tuesday. The Banking Codes and Standards Board of India had in 2014 come out with a recommendation to limit the customer’s liabilities in such cases, Minister of State for Finance Jayant Sinha said in the Rajya Sabha. Noting that 87 per cent of the transactions in the economy are still in cash, Sinha said the government underlined the governments commitment to encouraging cashless financial transactions. “ So much of cash transaction is not good. This increases the cost of handling besides causing inconvenience.” RBI in its Payment System Vision Document 2012- 15 for ushering in a cashless economy suggested drawing up of a policy framework to establish the roles and responsibilities of banks and customers in electronic transactions to

The income- tax department has brought out anew form making it mandatory for salaried taxpayers to furnish proof of travel for claiming tax deduction on LTA or LTC. The Central Board of Direct Taxes ( CBDT) has brought in a Form 12BB form requiring employees to furnish to their employers with evidence in relation to house rent allowance ( HRA) if it exceeds Rs. 1 lakh in an assessment year. The details to be furnished include name, address and PAN of landlord where the aggregate rent paid exceeds Rs.1 lakh, according to a CBDT order. For claiming deduction of interest on home loan, the name, address and PAN of lender will have to be furnished. Business Standard New Delhi,4th May 2016