CA Online

The first instalment of tax payment from those who have availed of the Income Declaration Scheme (IDS) 2016 stood at Rs 3,500 crore as on Monday November 28. This, according to officials, could swell to Rs 7,500 crore by Wednesday November 30, the last date.   The exchequer is expected to get Rs 30,000 crore from declarations worth Rs 65,250 crore under IDS in three instalments. Of this, Rs 15,000 crore would come in the current financial year through two instalments of Rs 7,500 crore each. “People will pay up as IDS is much more lucrative than the new disclosure ... 30TH NOVEMBER, 2016, THE BUSINESS STANDARD, NEW DELHI  

CAs not sure if individuals declaring unaccounted money will get immunity from reassessment as these provisions are not covered in the Bill Chartered accountants (CAs) have been flooded with calls after the government declared another voluntary income disclosure scheme for unaccounted money. The topmost concern of individuals is whether depositing unaccounted money in their bank accounts could also lead to the income tax department opening up previous years’ returns for reassessment. Revenue Secretary Hasmukh Adhia has said that the disclosures will enjoy immunity from wealth tax, civil and other taxation laws, but there will be no immunity from foreign exchange violations, narcotics and black money laws.  30TH NOVEMBER, 2016, THE BUSINESS STANDARD, NEW DELHI

Markets regulator Sebi today issued a new framework for functioning of stock exchanges and clearing corporations that are setting up their operations in international financial services centres (IFSCs). The Securities and Exchange Board of India (Sebi) said all categories of exchange-traded products currently available for trading in stock exchanges will be eligible for trading in bourses operating in IFSCs. However, this is subject to prior approval of the market watchdog. Only non-agri commodity derivatives will be eligible for trading. Masala bonds too qualify provided such bonds are listed. These exchange-traded products and masala bonds should be compliant with IOSCO (International Organization of Securities Commissions) and FATF (Financial Action Task Force) norms. Sebi, in March 2015, had issued a detailed set of guidelines for establishing IFSCs as part of its efforts for setting up financial hubs in the country. The first such centre has been set up in Gujarat's GIFT City

Revenue Secy said I-T Dept wouldn't ask for source of funds deposited in banks from Nov 10, if entire income is declared and 50% taxes are paid  The government on Monday unveiled yet another disclosure scheme for deposits made till December 30 and proposed amendments in the Income-Tax Act, proposing harsher penalty for evaders.  Finance Minister Arun Jaitley introduced a Bill to this effect in Parliament on Monday. This is the third income disclosure scheme introduced by the Bharatiya Janata Party (BJP) government in the past two years.  The latest disclosure scheme - Pradhan Mantri Garib Kalyan Yojana - will allow those depositing money in banned Rs 500 and Rs 1,000 notes to enjoy immunity from certain taxation laws by paying a 50% tax on the undisclosed income. However, the declarants will have to deposit a fourth of the undisclosed income with a four-year lock-in.  “The scheme will be notified after the Bill is passed by Parliament. A fourth of the total declared amount will ha

Scrambling to manage liquidity, lenders want compensation to tide over the crisis  Upset by the Reserve Bank of India’s (RBI) decision to charge the entire deposits that banks collected between September 16 and November 11 as a reserve requirement, bankers have said they would not be able to cut lending rates as much as was expected of them. Banks would now be scrambling to manage enough liquidity for their healthy functioning even as the general public continues to pour in deposits of old high-value notes and the restriction of cash withdrawal prevents adequate outflow of the money deposited. In a surprise announcement on Friday, RBI had said an incremental cash reserve ratio (CRR) of 100% would need to be maintained on deposits collected during the period mentioned above. Under normal circumstances, CRR is only four% of deposits. Banks don’t earn any interest on CRR. Sensing a liquidity shortage, RBI on Monday conducted an unprecedented level of liquidity infusion to the tune of Rs

Pay 30% tax, 33% cess & 10% penalty to come clean, else brace for 85% penal charge Trump Alleges That ‘Millions of People’ Voted Illegally New Delhi: The government is providing yet another opportunity for people with black money to come clean at a total cost of 50% and having a quarter of their unaccounted wealth locked up for four years, warning that they’ll be slapped with a penal 85% charge if they don’t take advantage of this and get caught subsequently. Income-tax law amendments have been moved to enable the window, which will involve the establishment of the Pradhan Mantri Garib Kalyan Yojana, 2016, and allowing declarants to keep the source of funds deposited in banks from November 10 a secret if they use the option. PM Narendra Modi had announced the demonetisation of .? 500 and .? 1,000 notes on November 8 as part of a campaign against black money, counterfeiting, corruption and terror financing. Banks started accepting deposits in old notes from November 10. “Tax depart

NEW DELHI: Ecommerce players such as Amazon and Flipkart will be required not just to collect tax at source but also register in each state under the proposed goods and services tax (GST) regime as both the central and state laws provide for the levy.  The latest draft of the law has kept out service aggregators from its purview but seeks to cover certain notified services where the liability to pay GST shall be shifted from the actual service provider to the electronic commerce operator. According to the draft law, an ecommerce operator is required to tax collect at source (TCS) 1% of the net amount collected on behalf of the supplier of the good.  This would mean that for compliance, an ecommerce operator would be required to register in each state from where the supply is being made, including the supply of services, and deduct the tax under the respective GST laws in each state.  Not just this, the supplier would also be required to register under the GST laws in that state irresp