CA Online

Operation Clean Money 2.0: PAN to be key in communication with depositors, high-value buyers The Central Board of Direct Taxes (CBDT) is developing a dedicated portal for the investigation of those identified to have made deposits or large purchases not in line with declared income as a follow-up to Operation Clean Money, which was launched in the wake of demonetisation to crack down on black money. The proposal figured in discus sions at a recent review meeting of the revenue department with Prime Minister Narendra Modi. “We are working on a dedicated portal,“ a top government official aware of the deliberations told ET. “This will be for those identified as part of Operation Clean Money .“ The portal will facilitate communication between individuals and tax authorities by way of the per manent account number (PAN).The department is looking to keep the process as non-intrusive as possible with an emphasis on e-assessment to keep human interaction to the minimum. The second phase o

Revenue Secretary Hasmukh Adhia is hopeful of a smooth transition to the Goods and Services Tax (GST) regime and says it would help local firms become more competitive, besides stream lining taxation for all business activities.“GST is a multipoint tax on value addition with seamless input tax credit,” he said. Adhia´s comments came amid calls from some experts andasection of business to defer the GST rollout to September October instead from July 1. Business Standard New Delhi, 08th May 2017

The government on Friday notified changes to the Banking Regulation Act, giving the RBI broad powers to deal with specific bad-loan cases as it tries to speed up resolution of Rs 9.64 trillion of stressed assets clogging the Indian banking system.Experts cautioned that this was just the first step in the process of putting the onus on the central bank to reduce the mountain of bad loans.The move could pose potential conflict-of-interest issues for the regulator,they said. The ordinance, which was approved by the President late on Thursday, also gives the government powers to authorise RBI to invoke the insolvency and Bankruptcy Code against defaulters. Separately, it also empowered the central banks on its own to settle bad loans with defaulters, and to form oversight commitees deal with the issue. The new rules are applicable with immediate effect and the centre has already issue a "general instruction" to RBI to take action, finance minister Arun Jaitley said. Business

The revenue department on Friday proposed to levy capital gains tax on unquoted shares at “fair market value” in place of the current practice of charging it on the basis value entered in the books of a firm.The Finance Act, 2017, passed by the Parliament has insertedanew section in the Income Tax Act (effective from April next year) for valuation of unquoted shares on fair market value for computing capital gains tax. Unquoted shares are those which are not traded on recognised stock exchanges.In pursuance of the amendment in the Finance Act, the Central Board of Direct Taxes (CBDT) on Friday released draft rules and invited comments from the stakeholders by May 19. "The valuation norms for unquoted shares is proposed to be changed radically," said Abhishek Goenka, partner and leader at tax consultancy firm PwC. Business Standard New Delhi, 06th May 2017

´ State-level check posts, which collect taxes on movement of goods, will not be required under the goods and services tax (GST) regime that will take effect from . July 1, although excise collection points may remain as they relate to taxation on alcohol, Revenue Secretary Hasmukh Adhia said on Friday.The rates will be common under GST and for the movement of goods in or outside a state, there is no need to check whether goods have moved physically out of the state or not, he said. Petroleum and alcohol products are not to be covered under the new indirect tax regime until the GST Council decides to imposearate on them. Business Standard New Delhi, 06th May 2017

The Indian economy will grow eight per cent in the next financial year as the full year impact of the goods and service tax (GST) will be seen by that time, Economic Affairs Secretary Shaktikanta Das (pictured) said. The eight per cent growth rate in FY19 will compare to a projected 7.5 per cent gross domestic product expansion in the current financial year and 7.1 per cent of 201617. Speaking on the sidelines of the Asian Development Bank´s 50th annual meeting, Das said, while the government continues to step up on reform measures, the country´s largest ever demonetisation of currency notes led to widening of the tax base and curbing of a parallel shadow economy."Impact of demonetisation was very very transient and has not spilled over to the current financial year...After demonetisation, the rates have come down, there is scope for further transmission of rates.I would expect that to happen.We see signs of revival in credit cycle," he added.The rupee has been Asia´s bes

The Reserve Bank of India (RBI) has issued new guidelines to quicken stressed asset resolutions through the joint lender forums (JLFs) comprising creditors to borrowers who are in default. RBI said it was exercising new powers conferred on it by the Banking Regulation Ordinance that was passed on Friday. The central bank slashed the minimum votes required in a JLF to reach a decision. It said decisions agreed to by 60% of creditors by value and 50% by number would be the basis for deciding a corrective action plan. Earlier, JLF decisions required the assent of 60% by number of creditors and 75% by value to achieve resolution. The JLF framework was introduced in 2014 to resolve stressed assets quickly. The large composition of the committees acted as an impediment because lenders found it difficult to arrive at a consensus. There have also been instances of a few banks striking private deals with borrowers even as they participated in a JLF. Despite disincentives such as a