Mumbai, April 6, 2017
There is no ban on giving loans, but it would cost higher provisions for the bank
Effective April 1, banks have to set aside higher provisions for loans given to highly indebted companies, the system-wide limit for which is set at Rs 25,000 crore for the financial year 2017-18.
Banks are not comfortable with this move, and some of them have asked the Reserve Bank of India (RBI) to go easy on the provisioning part.
New Delhi, April 5, 2017
The Comptroller & Auditor General (CAG) has found several lapses in implementation of corporate governance norms by central PSUs, including absence of woman directors.
The CAG’s compliance audit report for the year ended March 31, 2016 tabled in Parliament today revealed that in as many as 16 central public sector enterprises, non-executive directors constituted less than 50 per cent of the total board strength.
New Delhi, April 5, 2017
Non-residents need not quote Aadhaar number in their income tax returns otherwise
Non-residents need not quote Aadhaar number in their income tax returns and for applying to permanent account numbers (PAN), the Income Tax Department clarified on Wednesday. This, however, may increase trouble for some of the assessees who have left the country.
In terms of Aadhaar Act, 2016, those who have stayed in India for more than 182 days (almost six months) in a year preceding to application for Aadhaar are considered non-residents.
New Delhi, April 05, 2017
I-T department could now ask for supporting documents to prove that you are a genuine tenant
If you have been producing fake rent receipts to lessen your tax burden there is a bad news for you now.
You may no longer be able to claim income tax deductions for house rent allowance (HRA) by fabricating fake bills. The income tax department may now ask for proof from the tax payer showing that he is a genuine tenant.
Apr 4th 2017
A new report published by the Center for Audit Quality (CAQ) essentially is a primer on how to prevent financial reporting fraud and stay out of trouble when handling the most complicated accounting issues. Except that the target audience should certainly know how to stay out of trouble, right? But knowing and doing are two different things.
Addressing Challenges for Highly Subjective and Complex Accounting Areas offers findings and recommendations gleaned from workshops hosted by the Anti-Fraud Collaboration, whose members include the CAQ, Financial Executives International, National Association of Corporate Directors, and the Institute of Internal Auditors.
New Delhi, April 4, 2017
If dealers want to claim input tax credit, they will have to get themselves registered with GSTN
The revenue department has extended by a month till April-end the enrolment of dealers with GSTN, the IT backbone for the new set-up, as so far only 60 per cent of the existing assessees are done with the switchover.
Revenue Secretary Hasmukh Adhia reviewed the IT preparedness of the Goods and Services Tax Network (GSTN) last week and progress in registration of 80 lakh excise, service tax and VAT assessees with the portal.
New Delhi, April 3, 2017
Draft to include purchase of shares of delisted firms, acquisition of shares of listed firm infrequently traded
The Central Board of Direct Taxes (CBDT) has specified a list of equity share sale transactions that will have to comply with the new Budget provision and pay long-term capital gains tax if securities transaction tax was not paid.
These include purchase of shares of a listed company that are not frequently traded through preferential issue, transaction for purchase of listed equity share in a company is not entered through a recognised stock exchange and acquisition of shares of a company during the period it was delisted from recognised stock exchanges.
New Delhi, April 3, 2017
This is as part of its initiative to minimise human interface between the assessee and the Assessing Officer (AO) thereby reducing complaints of harassment and corruption.
All Income Tax department-related proceedings between the taxpayer and the taxman from the new fiscal will be conducted online, the CBDT today declared. This is as part of its initiative to minimise human interface between the assessee and the Assessing Officer (AO) thereby reducing complaints of harassment and corruption. A new link or window called ‘e-proceeding’ will soon be introduced on the e-filing website of the department, which is used by taxpayers to file their Income Tax Returns (ITRs) at present.
New Delhi, April 1, 2017
President Pranab Mukherjee has given his assent to the Finance Bill 2017 to give effect to provisions like bar on cash transactions above Rs 2 lakh and compulsory quoting of Aadhaar for filing tax returns. “The President was kind enough to give his assent to the Finance Bill before he left for official visit to Assam yesterday,” Revenue Secretary Hasmukh Adhia told PTI here.
With this, the provisions of the Finance Bill come into effect from today, he said. This is the first-time ever the annual Budget together with taxation proposals have come into effect from the first day of the financial year. Scrapping a colonial-era tradition of presenting the Budget at the end of February, Finance Minister Arun Jaitley had for the first time in the history of independent India presented the annual accounts on February 1.
March 30, 2017
In a renewed effort to make auditor disciplinary hearings conducted by the Public Company Accounting Oversight Board (PCAOB) public, Sen. Jack Reed (D-RI) and Sen. Chuck Grassley (R-IA) reintroduced the PCAOB Enforcement Transparency Act on March 13.
The legislation, SB 610, currently is in the Senate Banking, Housing, and Urban Affairs Committee.
March 30, 2017
The Financial Accounting Standards Board has released an accounting standards update that changes the treatment of the amortization of premiums for purchased callable debt securities, shortening the amortization period for the premium to the earliest call date.
When a callable debt security is bought at a premium, the premium is usually amortized to the maturity date, even if the holder is sure the call will be exercised. Then when the call is exercised, the unamortized premium is recorded as a loss in earnings.