Reference: Central Board of Direct Taxes
Update:
Exemption to Mysore Palace Board
The Central Government makes amends in the third paragraph of the notification no. S.O.1537(E) and hereby states that the said notification shall be applied for the period from 01-06-2011 to 31-03-2012 in the assessment year of 2012-2013 and also from the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, 2017-2018, 2018-2019 and shall apply with respect to the assessment years 2019-2020, 2020-2021, 2021-2022, 2022-2023, and 2023-2024.
Implication:
It is certified that no persons interest is adversely affected by giving retrospective effect to this notification from 9th April, 2019.
Update:
After Rajasthan HC, Bombay HC allows deduction for \’education cess\’ and sec. 40(a)(ii) is inapplicable
Bombay HC holds that Education Cess and Higher and Secondary Education Cess is allowable as a deduction. It clarifies that no reference to any \’cess\’ was made by the legislature in Sec.40(a)(ii) of the IT Bill 1961 as it was omitted while enacting the Act pursuant to recommendation made by Select Committee and hence there does not arise question of reintroducing the same in Sec.40(a)(ii) of IT Act. It agrees with Rajasthan HC decision in case of Chambhal Fertilizers & Chemicals Ltd and states that even though cess may be collected as part of income tax, it does not render \’cess\’, either rate or tax and thus cannot be deducted.
Reference: Central Board of Indirect Taxes & Customs
Update:
Amendments in Notification No. 11/2017-Customs (N.T./CAA/DRI) and Notification No. 18/2018-Customs (N.T./CAA/DRI)
In the Notification No. 11/2017-Customs (N.T./CAA/DRI), against serial number 3, in column 3 for the words, “C. No. VIII/ICD/6/TKD/SIIB-Exp/DRI-SCN/13/16 and C. No. VIII/6/ICD/PPG/SIIB/GDM/27/2016 read with corrigendum, \”C. No. VIII/ICD/6/TKD/SIIB-Exp/DRI-SCN/13/16 dated 30.03.2016 read with Addendum dated 22.10.2019” and “C. No. VIII/6/ICD/PPG/SIIB/GDM/27/2016 dated 31.03.2016 read with corrigendum dated 06.04.2016 and read with Addendum dated 30.07.2019” respectively shall be substituted.
Reference : Reserve Bank of India
Update:
Reserve Bank appoints additional directors on the board of Yes Bank Ltd
RBI appointed Shri R Gandhi and Shri Ananth Narayan Gopalkrishnan as additional directors of the board of Yes Bank Ltd.
Implication:
These directors are appointed w.e.f March 26, 2020 for a period of 2 years.
Update:
RBI Announces OMO Purchase of Government of India Dated Securities
On a reiew of the current liquidity and financial conditions, the RBI has decided to conduct purchase of Government securities under Open Market Operations for an aggregate amount of Rs 30,000/- Crores in 2 tranches of Rs. 15,000/- Crores each in the month of March 2020.
Implication:
Eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10.30 a.m. and 12.00 noon on March 24, 2020.
Update:
Extension of Directions- Punjab and Maharashtra Co-operative Bank Limited, Mumbai, Maharashtra
RBI had issued to the Punjab and Maharashtra Cooperative Bank Limited, Mumbai, Maharashtra, the validity of directions for close of business which was last extended upto November 5, 2019. RBI has further extended the validity of directions for a period of three months from March 23, 2020 to June 22, 2020.
Implication:
The said bank will have to follow the directions issued by the RBI for further period of three months i.e., till 22.06.2020.
Update:
Large Exposures Framework
RBI has made amends in the guidelines in para 7.3 of said circular. Any Credit Risk Mitigation (CRM) instrument (e.g. SBLC/BG from Head Office/other overseas branch) from which CRM benefits like shifting of exposure/ risk weights etc. are not derived, may not be counted as an exposure on the CRM provider.
Implication:
It has been decided that non-centrally cleared derivatives exposures will be outside the purview of exposure limits till April 01, 2021.
Update:
Priority Sector Lending – Lending by banks to NBFCs for On-Lending
RBI has extended the priority sector classification for bank loans to NBFCs for on-lending for FY 2020-21 up to an overall limit of 5% of individual bank\’s total priority sector lending.
Implication:
Existing loans disbursed under the on-lending model will continue to be classified under Priority Sector till the date of repayment/maturity.
Update:
Extension of Directions- Shri Anand Co-operative Bank Ltd. Chinchawad, Pune, Maharashtra
RBI had issued to the Shri Anand Co-operative Bank Ltd. Chinchawad, Pune, Maharashtra, the validity of directions for close of business which was last extended upto March 24, 2020. RBI has further extended the validity of directions for a period period of six months from March 25, 2020 to September 24, 2020.
Implication:
The said bank will have to follow the directions issued by the RBI for further period of six months i.e, till 24.09.2020.
Reference: Ministry of Corporate Affairs
Update:
Declaration of dividend in the matter of M/s Mysore Acetate and Chemicals Co Limited
MCA has notified that dividend at the rate of 100 paise in a rupee against the admitted amount along with interest at 4% per annum amounting to Rs. 21,54,41,000/- from the date of winding up i.e., 07.11.2013 up to 02.12.2019 has been declared.
Implication:
The amount shall be payable through RTGS/NEFT upon furnishing duly filled up and signed prescribed Bio-Data on or after the 23rd day of March, 2020 upto 22nd September, 2020.
Update:
Preventive measures to contain the spread of COVID19
In order to contain the spread of COVID-19 (Coronavirus), it has been decided in public interest that only fifty percent of Group B and C employees of the Ministry of Corporate Affairs shall attend office every day. The officials who are working from home on a particular day as per the roster drawn up should be available on telephone and electronic means of communication at all times. Further, the working hours for all employees who attend office on a particular day should be staggered. It is suggested that three grows of employees may be formed and asked to attend office as per the following timings:-
(a) 9 AM to 5:30 PM
(b) 9:30AM to 6 PM
(c) 10 AM to 6:30 PM
Implication:
The system will be effective from 20 March, 2020 and shall remain so till 4 April, 2020.
Update:
Clarification on spending of CSR funds for COVID-19
MCA has clarified that spending of CSR funds for COVID-19 is an eligible CSR activity and such funds may be spent for activities related to COVID-19 under item nos. (i) and (xii) of Schedule VII relating to promotion of health care including preventing health care and sanitation and disaster management.
Implication:
Items in Schedule VII are broad based and may be interpreted liberally for this purpose.
Reference: Institute of Chartered Accountants in India
Update:
Preventive measures to be taken to contain the spread of Novel Coronavirus (COVID-19)
ICAI decided to maintain social distancing by restricting all possible movements on the employees including those engaged in branches and regional councils on Pan India basis by allowing them to work from home till 31st March, 2020.
Implication:
Employees shall remain available over phone and electronic means of communication during this period in view of these special circumstances and any non-compliance of same would be viewed seriously.
Reference: Securities and Exchange Board of India
Update:
Regulatory measures taken by SEBI in view of ongoing market volatility
Stock markets have been quite volatile owinng to concerns relating to COVID-19 pandemic and hence taking note of the continued abnormally high volatility in the market, SEBI discussed with the Stock Exchanges, Clearing Corporations and Depositories appropriate measures that may be taken in these circumstances. Keeping in view the objective of ensuring orderly trading and settlement, effective risk management, price discovery and maintenance of market integrity, measures as per Annexure A have been taken.
Implication:
These measures will kick-in w.e.f. the beginning of trading on March 23, 2020 and will be in effect for a period of one month.
Update:
Monetary penalty on M/s Dev Commodity Brokers Private Limited
M/s Dev Commodity Brokers Private Limited (Noticee) has carried out alleged reversal of trades in illiquid stock options at BSE limited with same entities on the same day. It was alleged that these reversal of trades of the Noticee were non-genuine in nature and have created false and misleading appearance of trading in terms of artificial volumes in the stock options segment of BSE hereby violating the provisions of Regulation 3(a),(b),(c),(d) and 4(1), 4(2) (a) of SEBI PFUTP Regulations.
Hence, SEBI imposed a monetary penalty of Rs. 7,60,000/- on the Noticee for violating the said provisions.
Implication:
The Noticee shall remit / pay the said total amount of penalty within 45 days of receipt of this order.
Update:
Monetary penalty on Shri Sumesh Parasrampuria
Shri Sumesh Parasrampuria (“Noticee”) had sold shares of MCX and had failed to make necessary disclosures under the SEBI (Prevention of Insider Trading) Regulations, 1992 (“PIT Regulations”). Thus, the Noticee by failing to take pre-clearance for trading of his father violated Code of Conduct of MCX read with Regulation 12(1) of PIT Regulations.
Hence, SEBI imposed a monetary penalty of Rs. 5,00,000/- on the Noticee for violating the said provisions.
Implication:
The Noticee shall remit / pay the said total amount of penalty within 45 days of receipt of this order.
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