CA Online

Bad loans menace: Over three dozen CAs under Reserve Bank lens  With the RBI cracking the whip on bad loans menace, more than three dozen chartered accountants are under the scanner for allegedly conniving with promoters in defaulting as well as restructuring the stressed assets, sources said.  At a time when more number of companies with stressed assets are coming under the Insolvency and Bankruptcy Code, the central bank is also looking at the role of various key personnel associated with such entities.  Sources said the Reserve Bank of India (RBI) is looking into the role of around 35 to 40 chartered accountants in loan defaults by various companies.  The regulator is looking to ascertain whether these chartered accountants helped the entities in any illegal manner causing deliberate defaults and subsequently assisting them in restructuring the dud assets, they added.  Responses to queries sent to the chartered accountants' apex ICAI on the issue were awaited.  The Insti

Black money SIT reviews use of cryptocurrencies; directs clampdown The RBI had come out with three specific warnings to discourage the public from investing in the virtual currencies The Special Investigation Team (SIT) on black money has asked probe agencies to check and curb the use of cryptocurrencies as it reviewed their operation and circulation in the country and links to shady offshore transactions. Officials said the SIT recently held a meeting in the national capital during which it was briefed about the overall scenario of the operations of this virtual currency in the country. The SIT, official sources said, called cryprocurrencies like bitcoins "illegal" and asked probe agencies such as the Income Tax Department, the Enforcement Directorate (ED) and the Narcotics Control Bureau (NCB) to detect and stop their usage and check transactions being done over the Internet, including those with cross-border ramifications. The panel, they said, would also prepare a

CBI, Indian Revenue Services officers at loggerheads over fraud tax refunds The probe initiated by the Central Bureau of Investigation (CBI) into the fraudulent tax refunds case has not gone down well with the Indian Revenue Services (IRS) officers. In a resolution passed against the central agency, IRS officers called the allegation against the tax sleuths baseless and demoralising. In an unprecedented move, the income-tax sleuths, particularly those in Bengaluru, assembled last week to discuss the CBI’s first information report. The CBI FIR was registered against Income-tax officers at the Central Processing Cell (CPC) for processing revised returns based on fake documents and subsequently issuing huge refunds. Revenue officers believe the move has resulted in mistrust regarding integrity and transparency of processes and procedures at CPC. At the meeting which was called on April 3, after some of their colleagues were booked by CBI for causing losses to the exchequer, the re

 RBI increases bond investment limit for foreign portfolio investors Net increase in government bonds will be Rs 592 billion in two years The Reserve Bank of India (RBI) on Friday increased the bond investment limit for foreign portfolio investors (FPI) by a percentage point in two phases — a move that will allow foreigners about Rs 1.4 trillion of extra play in Indian bonds by the end of FY20. “The limit for FPI investment in central government securities (G-secs) would be increased by 0.5 per cent to 5.5 per cent of outstanding stock of securities in 2018-19 and 6 per cent of outstanding stock of securities in 2019-20,” the RBI said. Net increase in government bonds will be Rs 592 billion in two years. Corporate bonds would see their limits go up by Rs 447.8 billion by the end of FY20. At the end of December, FPIs held about 4.5 per cent in outstanding government bonds, but that limit was to increase to 5 per cent by March. Now, the central bank has increased it by a full per

  Industry and tax experts seek one tax on capital gains in listed funds Consultants PwC India recommended levying either securities transaction tax (STT) or capital gains tax on listed securities, instead of levying both  Industry and tax experts have pitched for a single levy on capital gains of listed securities, besides a reduction in the equalisation levy and abolition of minimum alternate tax (MAT), to a high-level panel looking into the overhaul of the 60-year-old income tax law The government had set up a committee under Central Board of Direct Taxes (CBDT) member Arbind Modi to look into the income tax systems in various countries and global best practices, among others. The panel is drafting the New Direct Tax Legislation and is likely to submit its report by May 31. It is also expected to revisit the income tax slabs, while widening the tax base. Consultants PwC India recommended levying either securities transaction tax (STT) or capital gains tax on listed securitie

  Sebi to take action against 14,720 entities for ‘non-genuine trades’ Sebi begins adjudication proceedings against 567 entities involved in ‘non-genuine trades’ through illiquid stock options segment in the first phase The Securities and Exchange Board of India (Sebi) has decided to take appropriate regulatory action against more than 14,700 entities in a phased manner for executing “non-genuine trades” through illiquid stock option segment. Adjudication proceedings have been initiated against 567 entities involved in such trades in the first phase. The markets regulator came across violations by 14,720 entities while it was probing 59 entities in a case related to alleged trading irregularities in stock options segment of the BSE. The 59 entities were probed to check whether they violated norms pertaining to fraudulent trade activities during the period from 1 April 2014 to 31 March 2015. Later, the scope of investigation was expanded to cover all the entities that had indulged

Don't deal with entities related to Bitcoins, RBI tells banks and NBFCs The RBI has repeatedly cautioned users, holders and traders of virtual currencies, including bitcoins The Reserve Bank of India (RBI) on Friday asked banks, non-banking financial companies (NBFCs) and payment service providers to disassociate themselves from entities dealing with virtual currencies, including bitcoins, with immediate effect. The notification comes a day after the central bank in a 'Statement on Developmental and Regulatory Policies' warned of risks associated with virtual currencies. The RBI has repeatedly cautioned users, holders and traders of virtual currencies, including bitcoins. The services flagged by the RBI include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, among others. In This Budget speech on February 1, Finance Minister Arun Jaitley had said cryptocurrencies were not legal and af