Reference: Reserve Bank of India
Update:
RBI enhances withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd to Rs. 40,000:
The Reserve Bank of India, after reviewing the bank’s liquidity position and its ability to pay its depositors has decided to further enhance the limit for withdrawal to
Rs. 40,000/-, inclusive of Rs. 25,000 allowed earlier.
Implication:
With the above relaxation, about 77% of the depositors of the bank will be able to withdraw their entire account balance.
Update:
Lending by banks to InvITs:
Banks will now be allowed to lend to InvITs or Infrastructure Investment Funds, however, the sanctioning of these loans would be subject to tighter parameters of scrutiny such as having board-approved policies on exposures, compliance with prescribed leverage ratios and tighter underwriting norms for SPV linked funds.
Implication:
The Audit Committee of the Board of banks shall review the compliance to the above conditions on a half yearly basis
Update:
Monetary penalty on Syndicate Bank:
The Reserve Bank of India has imposed, a monetary penalty of Rs. 75 lakh on Syndicate Bank for non-compliance with the directions issued by RBI on
(i) Frauds Classification and Reporting and
(ii) Housing Sector: Innovative Housing Loan Products – Upfront disbursal of housing loans.
Implication:
The bank will comply with the directions issued by RBI to avoid further penalty
Update:
Monetary penalty on The Lakshmi Vilas Bank Ltd:
The Reserve Bank of India has, imposed monetary penalty of Rs. 1 crore on The Lakshmi Vilas Bank Ltd. for non-compliance with certain provisions of directions issued by RBI on “Income Recognition and Asset Classification (IRAC) norms”.
Implication:
The bank will comply with the directions issued by RBI to avoid further penalty
Reference: Central Board of Indirect Taxes and Customs
Update:
CBIC launches scheme to attract investment and support Make in India programme:
Central Board of Indirect Taxes and Customs has launched a revamped and streamlined programme to attract investments into India and strengthen Make in India through manufacture and other operations under bond scheme, under Customs Act, 1962. The main features of the scheme are as below –
A single application cum approval form prescribed for uniformity of practice. The jurisdictional Commissioner of Customs will function as a single point of approval to set up and oversee the operations of such units.
No geographical limitation on where such units can be set up.
The unit can import goods (both inputs and capital goods) under a customs duty deferment program. The duties are fully remitted if the processed goods are exported.
There will be no interest liability and units will benefit through improved liquidity.
GST compliant goods can be procured from the domestic market for use in manufacture and other operations in a section 65 unit.
A single digital account has been prescribed for ease of doing business and easy compliance.
The scheme would also enable efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market.
Reference: Central Board of Direct Taxes
Update:
Income Tax Department conducts searches on coaching institutes in Namakkal, Tamil Nadu:
The Income Tax Department, conducted a search action on 11th October, 2019 in the case of a business group based in Namakkal, Tamil Nadu. The group is mainly into running of educational institutions, and coaching institutes for competitive exams like NEET, etc. The group comprises several partnership firms and a trust controlled by a closely knit group of individuals. The search action covered 17 premises including residential premises of the group\’s promoters. The premises are located in Namakkal, Perundurai, Karur and Chennai in Tamil Nadu.
The search was undertaken on the basis of intelligence that the group was indulging in substantial tax evasion by suppression of fee receipts received from students. The modus operandi was to receive part of the fees in cash and such cash receipts were invariably not entered in the regular books of accounts. Instead, such receipts were maintained in separate set of accounts. Incriminating evidence of such suppression of receipts has been found during the search in the form of accounts maintained in diaries, in electronic storage devices and also in the form of huge sums of unaccounted cash. It was found that cash was kept in lockers in banks in the names of employees who acted as benami or name lenders.
Reference: Institute of Chartered Accountants of India
Update:
ICAI Invites Suggestions for Pre-Budget Memorandum-2020:
The Direct Taxes Committee, GST & Indirect Taxes Committee and Committee on International Taxation of ICAI are in the process of identifying issues for inclusion in the Pre-Budget Memoranda – 2020 to be submitted to the Ministry of Finance or respective State Ministry.
Implication:
Suggestions may be submitted latest by 20th October, 2019.
Reference: Insurance Regulatory and Development Authority of India
Update:
Preparation of Financial Statements by Life Insurers:
IRDAI has issued direction on Preparation of Financial statements by Life Insurers. In order to bring further uniformity, comparability and fair presentation of financial position in the Financial Statements filed by the insurers IRDAI has issued directions containing Presentation of Excess of Expenses of Management (EoM), Deviation from prescribed Formats and Rewards and Remuneration to Agents/Brokers/Other intermediaries.
Implication:
All insurers to follow the directions for compliance in preparation of financial statements of FY 2019-20 and onwards
