Reference: Reserve Bank of India
Update:
Reserve Bank Enhances withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd to Rs. 25,000:
The Reserve Bank of India again reviewed the bank’s liquidity position and, with a view to reducing the hardship of the depositors, has decided to further enhance the limit for withdrawal to Rs. 25000.
Implication:
With the above relaxation, more than 70% of the depositors of the bank will be able to withdraw their entire account balance.
Update:
RBI clarifies on the safety and stability of the Indian banking system:
There are rumours in some locations about certain banks including cooperative banks, resulting in anxiety among the depositors. RBI would like to assure the general public that Indian banking system is safe and stable and there is no need to panic on the basis of such rumours.
Update:
Reserve Bank of India imposes penalty on United Overseas Bank Limited:
RBI has imposed monetary penalty of Rs. One crore on United Overseas Bank Limited for its failure to comply with the provisions of section 10B of the Banking Regulation Act, 1949.
Implication:
The bank will comply with the provisions of the Act to avoid further penalty
Reference: Central Board of Indirect Taxes and Customs
Update:
CBIC has amended notification No. 19/2019- Customs, dated the 6th July, 2019 to exempt from IGST on specified defence goods, to give effect to the recommendations of the GST Council in its 37th meeting dated 20.09.2019.
Implication:
IGST exempted on specified defence goods w.e.f. 1st October, 2019
Update:
CBIC has exempted the Light Combat Aircraft Programme of the Ministry of Defence till 03.12.2021.
Implication:
Nothing contained in this exemption shall have effect on or after the 4
th day of December, 2021
Update:
Rate of Exchange of Foreign Currencies:
CBIC has determines the rate of exchange of conversion of each of the foreign currencies, into Indian currency or vice versa for the purpose of the said section, relating to imported and export goods.
READ HERE the Rates of Exchanges
Implication:
The rate shall be effective from 4th October, 2019.
Reference: Central Board of Direct Taxes
Update:
Genuineness of loss couldn\’t be doubted just because assessee sold mutual funds immediately after earning dividend
Agencies Rajasthan (P.) Ltd. v. ITO – [2019] 109 taxmann.com 139 (Jaipur – Trib.)
Assessee had taken loan from IIFL. Out of loan amount, it purchased certain units of mutual funds of from JMF-MF and earned dividend of certain amount on same. Soon after earning dividend, a redemption took place wherein assessee had suffered loss of Rs. 24.04 crores. This loss was set off against capital gain earned by assessee during year from sale of immovable property.
Assessee had also claimed dividend income to be exempt under section 10(33). AO observed that assessee had concocted a story in connivance with JMF-MF and IIFL and attempted to prepare a colourable device just to set off capital gain earned on sale of immovable property and also by claiming exemption on dividend earned.
The Jaipur ITAT held that loan taken by assessee from IIFL was paid through bank and that assessee had also filed repayment schedule of IIFL. Assessee had also filed copy of statement issued by JMF-MF in which purchase of mutual fund was clearly shown.
Further, there was no loss to revenue insofar as JMF-MF had already paid dividend distribution tax on declaration of such dividend. That apart, assessee had also paid STT on those transactions as was evident from statement of JMF-MF on subjected transaction. There was no iota of evidence brought by revenue on record to prove that IIFL had indulged in providing bogus capital gain/losses etc. Thus, disallowance of assessee\’s genuine claim of loss incurred on redemption of mutual funds was unjustified.
Update:
CBDT inks the 300th Advance Pricing Agreement:
The Central Board of Direct Taxes (CBDT) has signed the 300th Advance Pricing Agreement during the month of September, 2019. This is a significant landmark of India’s APA Programme, which is currently in its seventh year. Three APAs were entered into in September, 2019 (2 Unilateral and 1 Bilateral APA), which has taken the total number of APAs signed by CBDT to 300. During the ongoing fiscal, the total number of APAs entered into has gone up to 29 (27 Unilateral and 2 Bilateral APAs). The Bilateral APA signed in September, 2019 pertains to United Kingdom.
Implication:
The APA Scheme continues to make good progress in providing tax certainty
to MNEs. It reflects the Government’s commitment towards fostering a nonadversarial tax regime.
Update:
Income-tax (10th Amendment) Rules, 2019:
As per the rule ‘Credit for TDS shall be given to the person from whose account tax is deducted and paid to the Central Government account for the assessment year relevant to the previous year in which such tax deduction is made.
Implication:
Section 194N TDS Credit to be available in year of deduction
Update:
Clarifications in respect of option exercised under section 115BAA of the Income Tax Act, 1961 inserted through The Taxation Laws (Amendment) Ordinance. 20 19:
CBDT clarifies that set-off of accumulated MAT credit and brought forward losses on account of additional depreciation shall not be allowed for companies opting for lower tax rate under newly inserted Sec. 115BAA.
States that “as there is no time line within which the option u/s. 115BAA can be exercised, it may be noted that a domestic company” having MAT credit and brought forward losses on account of additional depreciation may, if it so desires, exercise the option after utilizing MAT credit/ set off of losses so accumulated.
Update:
DIN system of CBDT launched:
The Documentation Identification Number (DIN) system of Central Board of Direct Taxes (CBDT) has come into existence from todaywiththe generation of about 17,500 communications with DIN on the very first day. This path breaking DIN system has been created as per the direction of Finance Minister Ms. Nirmala Sitharaman and from now onwards every CBDT communication will have to have a documentation identification number.
Implication:
Any communication issued manually under exceptional circumstances would have to be uploaded and regularised on the system portal within 15 days of its issuance.
Reference: Securities and Exchange board of India
Update:
Sebi Imposes Rs 41 Lakh Penalty on 41 Entities for Fraudulent Trading Activities:
SEBI has imposed a penalties totaling Ra. 41 lakhs on 41 entities for Fraudulent Trading in shares in the shares of Channel Guide (India) Ltd, which is now known as Iris Mediaworks Ltd. A detailed probe into the movement of shares of the company found that 41 entities entered into various trades in nature of synchronized trades, reversal trades and off-market transactions which created false and misleading appearance of trading.
Reference: Fraud
Update:
PMC case: ICAI to check role of auditors:
ICAI has sought information from RBI and other authorities on the PMC bank crises to check whether any auditor was involved in the alleged financial irregularities at the lender.
Taking note of the “enormity of the matter” the ICAI said it has triggered its disciplinary mechanism and has written to the bank as well as regulatory agencies concerned.
Reference: General
Update:
No change in small savings rates for Oct-Dec quarter:
Based on the recommendations of the Shyamala Gopinath panel, interest rates on 12 small savings schemes are reviewed before the end of every quarter. The government has decided not to change interest rates on small saving schemes such as National Saving Schemes (NSS), Public Provident Fund (PPF) and Kisan Vikas Patra (KVP) for the quarter beginning October 1.
Implication:
Interest rate on small saving schemes will for the quarter beginning from 1st October shall be same as previous quarter.
