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Sebi proposes Aadhaar-based identification for investors

Sebi proposes Aadhaar-based identification for investors The Securities and Exchange Board of India (Sebi) is planning identification of stock market investors  through their Aadhaar numbers. In its annual report for 2016-17 released on Monday, Chairman Ajay  Tyagi said “Sebi will continue to strengthen market supervision through various steps such as  Aadhaar-based identification of investors, effective market surveillance and monitoring of compliances  by regulated entities.” The move is in line with the government agenda of making Aadhaar mandatory for opening bank accounts,  filing tax returns as well as for any financial transaction of ~50,000 and above. The government in  Budget 2017-18 has already mandated linking of the Aadhaar number with the Permanent Account Number  (PAN) to avoid creation of multiple accounts for evasion of taxes. In the annual report, Sebi said it was working on linking Aadhaar with individual demat accounts.  “Sebi will try to enhance market int

Note ban raised tax base: PM

Note ban raised tax base: PM Haryana Chief Minister Manohar Lal Khattar honours freedom fighters´ family members atafunction at Tau  Devi Lal Stadium to celebrate 71st Independence Day, in Gurugram on Tuesday PHOTO: PTI Tamil Nadu  Chief Minister EdappadiKPalaniswami inspects the guard of honour during the 71st Independence Day  function at Fort St George in Chennai on Tuesday PHOTO: PTI West Bengal Chief Minister Mamata Banerjee  at the Independence Day function at Red Road in Kolkata on Tuesday. The Business Standard, New Delhi, 16th August 2017

PAN deactivation jolt for tax evaders in stock market

PAN deactivation jolt for tax evaders in stock market Of the 1.1 million permanent account numbers (PAN) that the government deactivated last month,  income-tax (I-T) sources say a majority were duplicates and were being used to open share-trading and  demat accounts, transact on the stock markets, and operate in shell firms. The I-T department has discovered one individual could have five to seven PAN cards, each with a  slightly different spelling of the holder’s name. According to I-T officials, such people, who have been identified as small- and medium-sized stock  brokers, sub-brokers and their clients, have evaded taxes. They could have evaded so by using one card for filing tax returns, and others for investing in  financial instruments or making high-value transactions, said a senior tax official. High-value transactions of more than Rs 50,000 and above require PAN details. During demonetisation,  PAN was required to be quoted in the case of cash deposits of more th

Inflationary pressure back after GST roll-out

Inflationary pressure back after GST roll-out Amid concerns over deflationary impulses expressed in the second volume of the Economic Survey 2016- 17, the retail inflation rate rose to a three-month high of 2.36 per cent in July, against the record  low of 1.5 per cent in June due to the impact of the goods and services tax (GST) rates for some  services and the revision in house rent allowance (HRA) for central government employees. However, as the Survey had pointed out, food prices continued to fall, though at a lower rate at 0.3  per cent in July, compared to the 2.1 per cent in June. In the remaining months of the current financial year (FY18), economists expect the retail inflation  rate to rise, which might discourage the Monetary Policy Committee (MPC) from cutting rates further,  despite the Survey recommending monetary easing.  However, the wholesale food inflation rate was 2.1 per cent in July, against a fall of 3.5 per cent in  June and 2.1 per cent in May. Sinc

over 9.3 crore PANs linked with Aadhaar: I-T department

over 9.3 crore PANs linked with Aadhaar: I-T department More than 9.3 crore Permanent Account Numbers (PAN) have been linked with Aadhaar, a senior Income Tax  Department officer said . Of the total PAN-Aadhaar seeding, which is nearly 30 per cent of about 30 crore PAN card holders,  about three crore linkages were done in June and July. "By August 5, which was the last date for filing Income Tax Returns (ITRs), over 9.3 crore PAN-Aadhaar  linkages have been registered by the I-T department," he said. According to the officer, the tally is expected to grow as the Central Board of Direct Taxes (CBDT),  the policy-making body of the department, has already extended the last date for linking the two  unique numbers till August 31. The government had made the PAN-Aadhaar linking mandatory for filing ITR and obtaining a new Permanent  Account Number (PAN) from July 1. The CBDT has said that for the purpose of e-filing of returns (by August 5), it would be sufficient to

Unmasking Shell Companies

Unmasking Shell Companies Legal experts say a stricter definition of ‘beneficial interest in a share’ under company law and strengthening of the monitoring mechanism of listed entities may help  prevent abuse of shell companies Two recent events, though unrelated, could have a wide-ranging impact on the abuse of shell companies for money laundering and tax evasion. The first is a provision in  the Companies (Amendment) Bill, 2017, that was recently cleared by the Lok Sabha. It proposes to define, for the first time, the term “beneficial interest in a share”.  It further makes it mandatory to maintain a register of persons with a significant beneficial interest in a company. The other event is the Securities and Exchange  Board of India (Sebi) setting up a committee on “fair market conduct” to suggest measures to improve surveillance of the markets. “The Companies (Amendment) Bill, 2017, gives an extremely wide and inclusive definition of ‘beneficial interest in a share’ that

Importer has ‘no-fault’ liability to pay

Importer has ‘no-fault’ liability to pay The Supreme Court has ruled that a port trust can demand demurrage and other charges from the importer  even if the entity was unable to clear goods for no fault or negligence on its part. Even if the  Customs authorities had detained the goods, which action was later found to be illegal, the charge  must be paid. The court stated so while setting aside the judgment of the Bombay High Court in the  case, Mumbai Port Trust vs Shri Lakshmi Steels. The court said neither can any shipping line involved  in such an instance be burdened with the detention charge, nor the Customs department. The judgment  explained: “The Customs authorities can be directed to pay the demurrage/detention charges only when  it has proved that their action is absolutely mala fide or is such a gross abuse of power that the  officials should be asked to compensate the importer for the extra burden which he has to bear. Even  if an importer feels that it has been unjustl