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Regulator Sebi is mulling tightening its investigation and enforcement mechanism to check misuse of stock market platform for generating "bogus" long-term capital gains to launder black money. The markets watchdog has also come across cases wherein fraudulent tax benefits have been claimed through trades in some blue-chip stocks, as against the common perception of only penny stocks being used as vehicles for such frauds, a top official said. While the rules provide exemption from long-term capital gains through stock market trades, the government in this years Budget, announced steps to limit such benefits only to "genuine trades" as part of a concerted effort to clamp down on tax evasion through "sham transactions". The regulator is now looking at further steps to ensure such benefits are available to genuine investors only as they are aimed at encouraging long-term investment culture in the country, the official said, while adding that some changes

Finance Minister Arun Jaitley on Sunday said the ministry is debating two innovative suggestions made by the latest Economic Survey— Universal Basic Income (UBI) and creation of bad bank —to deal with the unacceptable levels of bad loans.He, however, said the idea of UBI does not seem to beafeasible policy option at this point of time given the “political limitations”. While inaugurating the oneweek teachers´ workshop at the Indian Institute of Technology (IIT), Delhi, the Finance Minister also emphasised policy makers to continuously upgrade their knowledge on different subjects. “I think it´s equally meant for policy makers because they should also be acquainted with the facts for informed policy making,” he noted.On innovative ideas of the Survey, he said it remainsachallenge on how to allocate subsidies inatargeted manner. “This year also it (survey) initiated a very important idea as to how do we subsidise… substitute the entire set of subsidies...we want to replace it by a Un

Say it is difficult to differentiate between speculative and hedged positions Overseas investors have written to the Securities and Exchange Board of India (Sebi), opposing the proposed curbs on participatory notes (p-notes), or offshore derivatives instruments (ODIs). In a discussion paper floated last month, the market regulator proposed to bar p-notes from taking speculative positions in the derivatives market. Also, the papertalks about levying fees of $1,000 per ODI per subscriber every three years. Sebi has suggested that ODI issuers be given time till December 31, 2020, to wind down any outstanding derivatives exposure taken for a purpose other than hedging. FPIs have told the regulator that it would be difficult for issuers to discern between speculative and hedging positions of individual investors, and to ascertain the exact number of open positions held by investors without any underlying. On the other hand, most investors would be reluctant to disclose their trade posit

Telecom rates unchanged; meeting on June 18 to discuss residual issues With two weeks to go for the goods and services tax (GST) roll-out, the GST Council on Sunday reduced the rates for 66 items and expanded the scope of the composition scheme for the benefit of small traders, manufacturers, and restaurateurs. The composition scheme is a presumptive taxation scheme allowing small traders, manufacturers and restaurants to paya15 per cent GST rate on sales without tax credits.Insulin, pickles, printers, agarbattis,school bags, and cashew nuts are among the 66. Those were among 133 items whose rates were reviewed following industry representation. However, the GST rates for telecom services, marbles, granite, spectacles, among others, were retained, which drew flak from the respective sectors.Union Finance Minister Arun Jaitley, who is the head of the Council, said in certain cases the rate fitment committee went beyond the equalisation principle of maintaining the current tax incide

*Good Morning Everyone* *Have a Good Day to all of you* *Daily Update* *07-June-2017* Economic Times • Paytm's Vijay Shekhar Sharma enters Delhi's posh Lutyens' zone with Rs 82-cr home buy • NPCI may ask banks not to charge for payments via UPI • Coca-Cola plans to launch frozen desserts in India • Indian aviation sector to get $25 billion investment by 2027 • Aditya Birla Group to elevate D Muthukumaran as corporate strategy head Business Standard • Alphabet shares touch $1,000, reflects bullishness in tech giants • 3% GST opens room for cheap import of gold jewellery from FTA countries • Ministries get 60 days to decide on FDI plans • Doha flights get longer as Indian carriers skip UAE; take Pak, Iran routes • IMD sticks to normal monsoon forecast at 98% of long period average Mint • Morgan Stanley sees Sensex rising to 34,000 by June 2018 - Upbeat earnings outlook, strong economic growth cited as reasons for the prediction • Adani’s Austr

I-T dept may bring in jurisdiction-free assessment, where a taxpayer in one circle could be assessed by an officer in another circle, curbing corruption and speeding up processing The one-nation, onetax principle that underlines the goods and services tax (GST), set to be rolled out on July 1, could be adopted in a much more broader sense by the income tax department through a path-breaking initiative on jurisdiction-free as sessment. This would mean that a taxpayer in Mumbai could be assessed by an income tax officer located in Patna, a significant leap toward eradicating corruption by reducing the need for face-to-face contact between citizens and tax officials to the absolute minimum besides speeding up processing. The move, which will require a change in the income tax law, would also end the relevance of various geographic divisions in the form of wards and circles with the whole country becoming one jurisdiction. This, it is hoped, will put an end to a system in which bribery

Foreign direct investments into India, employee stock options, and transfer of shares through gifts and offmarket transactions recognised by the central bank, the market regulator, top courts or tribunals will not attract the capital gains tax even if no securities transaction tax (STT) had been paid, putting at rest the lingering concerns over the likely tax incidence on genuine deals. The Central Board of Direct Taxes (CBDT) announced the final rules for the levy of capital gains tax on certain equity investments where no STT was paid, enabling a separation of genuine transactions that have been recognized by the regulators, a high court, the Supreme Court, or the National Company Law Appellate Tribunal. The notification is significant as it puts an end to the uncertainty that arose after a change in the law in the FY18 budget. The CBDT had earlier said in the draft notification that the rule, introduced in the budget, would allow the imposition of capital gains tax on the ac