Jun 30, 2011

ATM WILL CHARGE MORE FROM TODAY

9:53 PM 0
ATM WILL CHARGE MORE FROM TODAY
Using ATM of other bank will charge more from today, 1 july 2011 as the banks will charge minimum of 20 rupees per non financial transaction like balance enquiry and change the PIN. The new rule will come into effect from today when the free transaction to the other bank ATM are limited to five.

Jun 29, 2011

HOW TO BE SAFE FROM INCOME TAX SCRUTINY

7:20 PM 0
HOW TO BE SAFE FROM INCOME TAX SCRUTINY
Everybody has the fear of income tax scrutiny. The main reason is that the income tax return comes into the scrutiny by random search. So anybody can be the victim. These are the points which can safe you from harassment and time consuming process as well as expensive in the money matter. These transaction should be reported when filling returns.

RBI TAKES SOME STEPS TO RATION OVERSEAS DIRECT INVESTMENT EASY

6:53 PM 0
RBI TAKES SOME STEPS TO RATION OVERSEAS DIRECT INVESTMENT EASY
Reserve Bank of India takes some steps to rationalize overseas direct investment. RBI issued a circular no 73 dated 29-06-2011 about the overseas direct investment. In this move transferring the money in India becomes more easy and hassle free. Some other steps are also taken which are as under.

RBI/2010-11/584
A.P. (DIR Series) Circular No. 73
June 29, 2011
To
All Category-I Authorised Dealer Banks
Madam/Sir,
Overseas Direct Investment- Liberalisation/ Rationalisation
Attention of the Authorised Dealer (AD - Category I) banks is invited to the Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004] (the Notification), as amended from time to time, and the following circulars issued thereunder:
With a view to restating the various provisions relating to transfer by way of sales of a joint venture or wholly owned subsidiary (JV or WOS) outside India with and without write off, the existing guidelines are consolidated as indicated below:
2. Transfer by way of sale of shares of a JV / WOS
An Indian Party, without prior approval of the Reserve Bank, may transfer by way of sale to another Indian Party which complies with the provisions of Regulation 6 of FEMA Notification 120/RB-2004 dated July 7, 2004 or to a person resident outside India, any share or security held by it in a JV or WOS outside India subject to the following conditions:
  1. the sale does not result in any write off of the investment made.
  2. the sale is to be effected through a stock exchange where the shares of the overseas JV/ WOS are listed;
  3. if the shares are not listed on the stock exchange and the shares are disinvested by a private arrangement, the share price is not less than the value certified by a Chartered Accountant / Certified Public Accountant as the fair value of the shares based on the latest audited financial statements of the JV / WOS;
  4. the Indian Party does not have any outstanding dues by way of dividend, technical know-how fees, royalty, consultancy, commission or other entitlements and / or export proceeds from the JV or WOS;
  5. the overseas concern has been in operation for at least one full year and the Annual Performance Report together with the audited accounts for that year has been submitted to the Reserve Bank;
  6. the Indian party is not under investigation by  CBI / DoE/ SEBI / IRDA or any other regulatory authority in India.
3. Transfer by way of sale of shares of a JV / WOS involving write off of the investment
(a) Indian Parties may disinvest without prior approval of the Reserve Bank, in the under noted cases where the amount repatriated on disinvestment is less than the amount of the original investment:
  1. in cases where the JV / WOS is listed in the overseas stock exchange;
  2. in cases where the Indian Party  is listed on a stock exchange in India and has a net worth of not less than Rs.100 crore;
  3. where the Indian Party  is an unlisted company and the investment in the overseas venture does not exceed USD 10 million and
  4. where the Indian Party is a listed company with net worth of less than Rs.100 crore but investment in an overseas JV/WOS does not exceed USD 10 million.
(b) Such disinvestments shall be subject to the conditions listed at items (ii) to (vi) of paragraph 2 above.
4. The Indian Party is required to submit details of such disinvestment through its designated AD category-I bank within 30 days from the date of disinvestment.
5. An Indian Party, which does not satisfy the conditions stated above for undertaking any disinvestment in its JV/WOS abroad, shall have to apply to the Reserve Bank for prior permission.
6. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Any Foreign Security), Regulations, 2004 are being issued separately.
7. AD - Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
8. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(Dr. Sujatha Elizabeth Prasad)
Chief General Manager
Tags-overseas direct investment,rationalize of overseas direct investment,rbi circular about foreign direct investment,rbi circular no 73,circular no 73 rbi,foreign direct investment in india,rules of foreign investment in india

Jun 28, 2011

FOREIGNERS CAN ALSO INVEST IN DOMESTIC MUTUAL FUNDS NOW

7:11 PM 0
FOREIGNERS CAN ALSO INVEST IN DOMESTIC MUTUAL FUNDS NOW
In a step to increase liquidity and the money in domestic mutual fund market as well as in the share market, finance ministry takes the step to allow foreigners to invest in the domestic mutual funds. 

Jun 27, 2011

FORM 16A IS MANDATORY FOR CORPORATES AND BANKS TO DOWNLOAD FROM TIN WEBSITE

6:34 PM 0
FORM 16A IS MANDATORY FOR CORPORATES AND BANKS TO DOWNLOAD FROM TIN WEBSITE
Now one can download form 16a from tin.nsdl website. Even for corporates and for banks, its mandatory to download form 16a from tin website and give it to the dedutee. There is a simple procedure to download form 16a from website. One need to register his TAN number first on the website and then only can download the forms.

Jun 26, 2011

PUBLIC PROVIDENT FUND CLARIFICATION ABOUT PAYMENT OF INTEREST IN HUF ACCOUNTS

2:01 PM 0
PUBLIC PROVIDENT FUND CLARIFICATION ABOUT PAYMENT OF INTEREST IN HUF ACCOUNTS
Public provident fund in regard of Reserve Bank of India has made a clarification about payment of interest in HUF account. PPF HUF account are closed in 2005 and are only open to individual. But there was some puff about the opened account which are tend to mature. So this clarification is made which is as under.

INDIA SIGN DTAA WITH SINGAPORE

1:55 PM 0
INDIA SIGN DTAA WITH SINGAPORE
India has signed DTAA Double taxation avoidance agreement with Singapore. Double tax aviod agreement is the deal between two countries by which the tax payer need to pay income tax to one country of which it dues, and by showing the certificates of income tax paid, the second country can not ask to repay the income tax. Some transactions are like this in which one works part time to different country or work in home country to the foreign country. In such cases the Double taxation avoid agreement works.

Jun 25, 2011

INCOME TAX NEW LAW FOR TRANSFERRING MONEY ABROAD

10:37 PM 0
INCOME TAX NEW LAW FOR TRANSFERRING MONEY ABROAD
Income tax department has issued some new guidelines for transferring money outside india. The new law is constituted for stopping the black money and recovery the money from abroad.
A Committee has been constituted to examine ways to strengthen laws to curb generation of black-money in India, its illegal transfer abroad and its recovery. The Committee is calling for feedback from all the stakeholders on this issue through 

Jun 24, 2011

HOW TO DOWNLOAD FORM 16A FVU FREE

10:04 PM 0
HOW TO DOWNLOAD FORM 16A FVU FREE
As you know the creation of Form 16a is free as well as it's mandatory for the banks as well as company for create the Form 16a from the tin.nsdl website. But the procedure for creating form 16a from tin website is complex and one can't do it easily. So there is complete procedure for creating form 16a from tin.nsdl website with pictures so one can easily do it. Full procedure is as below

Jun 23, 2011

INCOME TAX NOTIFICATION ABOUT NO RETURN BELOW 5 LAKH INCOME

11:00 PM 0
INCOME TAX NOTIFICATION ABOUT NO RETURN BELOW 5 LAKH INCOME
As you know income tax department has notified that salaried person whose income below 5 lakhs need not to file income tax. Form 16 will be treated as the income tax return for the person whose income is from salary and not income from other sources. This was only the circulations and not in notification and not in written. Income tax department issued a press release on 23 June 2011 about the income tax return to the salaried person whose income is below 5 lakhs from salary income. Full press release is as under.

HOW TO GET CUSTOM HOUSE AGENT LICENSE

10:49 PM 0
HOW TO GET CUSTOM HOUSE AGENT LICENSE
Custom department has given a circular about custom house agent license. How to get the license and all about the formalities. Custom Department has issued a circular no. 25/2011 about the custom house agent license. All the formalities and the circular of the custom department is as under.

Jun 22, 2011

EXCISE CLARIFICATION ON BRANDED READYMADE GARMENTS

3:05 PM 0
EXCISE CLARIFICATION ON BRANDED READYMADE GARMENTS
Central excise department has issued clarification on the excise duty on readymade branded garments. In this annual budget finance minister imposes excise duty on branded readymade garments. But there was so much confusion and protests against the excise duty on branded readymade garments. So central excise issued a circular number 947 dated 21-06-2011 regarding clarification on it which is as under.

Jun 21, 2011

ADVANCE TAX CALCULATOR FOR FINANCIAL YEAR 2011-12

10:31 PM
ADVANCE TAX CALCULATOR FOR FINANCIAL YEAR 2011-12
As you know the finance minister has changed somehow the income tax slabs for the financial year 2011-12 and the assessment year 2012-12. So with these changes, advance tax liability has also changed for the financial year 2011-12. For this financial year the income tax slabs are as under.

Jun 20, 2011

SECTION 9 OF INCOME TAX ACT

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SECTION 9 OF INCOME TAX ACT
Section 9 of income tax act relates to income deemed to arise or eared in India. Some income has confusion either this income arises or accrues in India or not. Incomes which come under section 9 of income tax act deemed that these incomes arise in India and income tax will be applicable to them. The following income is deemed under section 9 of income tax act as arise in India. Section 9 tells that income deemed to arise in India if any income arise or accure in India directly or indirectly by

Jun 19, 2011

RUPAY CARD IS STARTING IN INDIA FROM TODAY 20-06-2011

8:40 PM 0
Rupay card, the Indian invention to give competition to multinationals visa and mastercard, is launching in India on Monday, 20-6-2011. Rupay card is the alternative of visa and mastercard which will work all over India to withdraw cash from any ATM or do shopping.

LONG AND SHORT TERM CAPITAL GAINS

12:47 PM 0
LONG AND SHORT TERM CAPITAL GAINS
Basically, capital gains tax is applicable on sale of capital assets such as property, gold, shares, mutual fund (MF) units, bonds and debentures. Depending upon the holding period, these assets are classified as long-term or shortterm. The latter are those that are typically held for less three years or lesser. By corollary, assets held for more than three years are termed as long-term.

Jun 18, 2011

ADVANCE TAX FIGURE JUMPS 77% FOR QUARTER 1

8:09 PM 1
ADVANCE TAX FIGURE JUMPS 77% FOR QUARTER 1
Advance tax figure rose to 77% for the quarter 1 of 2011 compare to the figure of quarter 1 of 2010. Advance tax figure for thye quarter 1 of 2011 is 30399 crore compare to 17194 crore of one year ago.

Banks May Have Two Insurance Partners

2:34 PM 0
Banks May Have Two Insurance Partners
Banks may have two insurance partners in the segment of life,non life or health insurance. To increase the number of insurance, government is planning to free the banks, for having only one partner for insurance. Currently Indian Banks can tie up with only one insurance company, so to increase the insurance all over the worls, government is planning to increase the number of insurance company as partners. Moreover, almost all the big banks are having there own insurance company like SBI LIFE, ICICI LOMBARD, HDFC Insurance etc. So if they can tie up with more insurance company, business will trend to grow.

SEBI ASKS PROMOTERS OF THE LISTED COMPANIES TO DEMATERIALISE SHARES

2:24 PM 0
SEBI ASKS PROMOTERS OF THE LISTED COMPANIES TO DEMATERIALISE SHARES
Stock and exchange board of India asks the promoters of the listed firms to convert their holding of the shares in demat form. Promoters of around 50% listed company still hold the shares in physical form out of which almost 650 promoters of the firms holds entire holding in physical form.

Jun 17, 2011

INCOME TAX CHALLAN 280,281,282,283 EXCEL SOFTWARE DOWNLOAD

10:37 PM 0
I have got some very good format excel based tax challan no. 280,281,282 and 283 which is very vital for filing the income tax as well as other details. The use of these challans is as follows
Challan 280- To deposit self assessment tax, advance tax and tax demand on regular assessment etc.
Challan 281- to deposit TDS (Tax deducted at source)

Jun 16, 2011

HOW TO REGISTER THE TAN NUMBER

10:11 PM 0
HOW TO REGISTER THE TAN NUMBER
Registration of TAN number is going neccessary day by day. One can't see the details of tax deposited without TAN registration. Even now a days tin.nsdl has giving options that without registration of TAN number, one can not use the latest utilities. For example, tin.nsdl has recently launched RPU 2.5 but one can not use it without registration of TAN number. So this is the presentation with pictures as how to register the TAN number on tin.nsdl website.

RBI INCREASES THE REPO RATE BY 25 BASIS POINTS

7:02 PM 0
RBI INCREASES THE REPO RATE BY 25 BASIS POINTS
Reserve Bank of India has increased the repo rate by 25 basis points. RBI presenting the mid quarter monetary policy review on 16-06-2011 and increases the repo rate by 25 basis points. Now the repo rate is 7.5% for dealers as well as for banks.
Tags-rbi monetary policy,monetary policy,repo rate,current repo rate,increase in repo rate

Jun 15, 2011

BANGKOK DUBAI AND SINGAPORE RETURN TICKETS AT Rs. 10000

2:50 PM 0
BANGKOK DUBAI AND SINGAPORE RETURN TICKETS AT Rs. 10000
Good news for the person who wants to go abroad but have limited budget. Low cost airlines Indigo Airlines will start its international destination from September. From the starting of september indigo airlines will start its operation to Bangkok, Singapore and Dubai.

Jun 14, 2011

New RPU 2.5 for TDS/TCS Statement

7:21 PM 0
New RPU 2.5 for TDS/TCS Statement
Tin.nsdl has launched the latest new version of return preparation utility 2.5. This is the latest RPU 2.5 for preparation and correction of TDS/TCS statement files from 2006-07 onwards. This RPU is the latest version bt tin.nsdl but it will work when TAN is registered. So registration of TAN number becomes important from here.

How To Set up E-TDS RPU 2.5 GUIDE

12:56 PM 0
How To Set up E-TDS RPU 2.5 GUIDE
As you know tin.nsdl has launched a new RPU version 2.5 for preparation of e-tds/tcs statements regular and correction. But it's confusing as how to set up the new rpu 2.5. this is the complete guide of how to use the latest rpu 2.5.

Jun 13, 2011

Political Parties will be Assessed Under Charity Law by Income Tax

6:41 PM 0
Political Parties will be Assessed Under Charity Law by Income Tax
FACED with the challenge of curbing black money in electoral process, the Income Tax (I-T) department has now proposed assessment of the income of political parties under the provisions of “charity” law instead of the present system of doing so under a special clause.

Destination Banks Will Also Get Commission on NEFT and RTGS

6:33 PM 0
Destination Banks Will Also Get Commission on NEFT and RTGS
Reserve Bank of India has decided that the bank which receives RTGS and NEFT will also get compensated. In this regard RBI has issued a circular 559 dated 02-06-2011 that destination bank will also get the commission for thae electronic money transfer. The features of this system are as under.
1- Originating bank will pay to the destination bank and not the customer.
2- The commission will be very low around 25 paisa per transaction.
3- The collection or the payment will be monthly basis.
4- This will be applicable from July 1 2011.

How To Open NRO Account With Banks

6:21 PM 0
How To Open NRO Account With Banks
Reserve Bank of India has issued guidelines of opening NRO account to banks. In this guidelines RBI tells the banks about the documents as well as the requirement for opening the NRO account. Vide the circular number 70 dated 9-6-2011 Reserve Bank of India guides as under.

Jun 12, 2011

New Tax Code to Bring Back Black Money

6:27 PM 0
New Tax Code to Bring Back Black Money
Indian Government is planning to implement a new tax code to bring back black money to India. There are so much protest about black money, so income tax department is seriously planning to implement this new tax code which will be very harsh for the tax evaders. Direct Tax Code will be implement from 1 April 2012 and government is planning to edit some rules in it for the persons who have the black money in foreign accounts.

Jun 11, 2011

Export of River Sand to Maldives

6:19 PM 0
Export of River Sand to Maldives
Director General of foreign Trade department has issued a notification no. 55 dated 07-06-2011 about export of river sand to maldives. Full notification is as under.

Jun 10, 2011

Smart Card Manufacturing Exempts From Excise

6:37 PM 0
Smart Card Manufacturing Exempts From Excise
Excise Department has exempted smart card manufacturing from central excise. Excise department has issued a circular regarding this exemption. Excise Department issued notification no. 14 dated 3 june 2011 said that

Jun 8, 2011

Now Beer Bottle in Plastic to Save Environment

2:23 PM 0
Now Beer Bottle in Plastic to Save Environment
We often use plastic(PET) bottle of coke,pepsi or mineral water. Now beer would also come in PET bottle to save the environment. In first glance, it seems strange,but true. Beer manufacturing companies start packing the beer bottle in plastic which is PET bottle same as mineral water. Beer generally comes in two types of packing either glass bottle or can. But it harms a lot to environment as recycling of both these two is not possible.

Jun 7, 2011

Income Tax Net Collection for April and May

12:53 PM 0
Income Tax Net Collection for April and May
Income tax department issued data for net collection of income tax of the first two months of the current financial year 2011-12. The direct tax collection for the month April and May is as under.

Jun 3, 2011

HOW TO COMPLAINT OF LISTED COMPANIES TO SEBI

9:29 PM 0
HOW TO COMPLAINT OF LISTED COMPANIES TO SEBI
SEBI has started new system for tackle the investor complaints of listed companies. SEBI named it SCORES. Stock and Exchange Board of India issued a circulation about SCORES and the main features of this new system which solves the investor problem of listed companies. According to SEBI, this new system is totally electronic and one can complaint online to any listed company to SEBI with this system. The sailent features of this new system as well as the circular is as under.

RBI ASKS PRIVATE SECTOR AND FOREIGN BANKS TO APPOINT INTERNAL VIGILANCE

9:19 PM 0
RBI ASKS PRIVATE SECTOR AND FOREIGN BANKS TO APPOINT INTERNAL VIGILANCE
After appointing internal vigilance to tackle and solve problems of fraud in banks, into the public sector banks. RBI on 2-6-2011 issue guidelines to private and foreign banks to appoint internal vigilance in its all the branches to minimize the cases of fraud. Reserve Bank of India issue a circular no. 554 dated 2-6-2011 regarding this announcement

Financing of Self Help Group by Urban Co-Operative Banks

9:08 PM 0
Financing of Self Help Group by Urban Co-Operative Banks
RBI under a circular no 556 dated 02-06-2011 allowed co-operative banks to finance self help group and joint liability group. Reserve Bank of India issued a circular regarding this announcement which is as under.

Jun 2, 2011

SEBI Introduces Liquidity Enhancement Scheme for Equity Derivatives

6:21 PM 0
SEBI Introduces Liquidity Enhancement Scheme for Equity Derivatives
Stock and Exchange Board of India has introduces liquidity enhancement scheme for illiquid equity derivatives. SEBI with a circular no. 5 dated 2-6-2011 introduces this scheme for the securities which are illiquid and need liquidity to flow and do better in the stock market. The LES(liquid enhancement scheme) is introduced with some rules which are as follows with the circular of SEBI.

Credit Suisse AG and Sberbank Included in Second Schedule by RBI

6:14 PM 0
Credit Suisse AG and Sberbank Included in Second Schedule by RBI
Reserve Bank of India has included two new banks in the second schedule of RBI. The two new names are as under.
1- Credit Suisse A.G.
2- Sberbank
Reserve Bank of India included these two banks in second schedule with the circular no. 552 and 553 dated 01-06-2011.

India Sign DTAA with Mozambique

6:09 PM 0
India Sign DTAA with Mozambique
India has signed DTAA Double taxation avoidance agreement with Mozambique. Double tax aviod agreement is the deal between two countries by which the tax payer need to pay income tax to one country of which it dues, and by showing the certificates of income tax paid, the second country can not ask to repay the income tax. Some transactions are like this in which one works part time to different country or work in home country to the foreign country. In such cases the Double taxation avoid agreement works.

Jun 1, 2011

Overseas Direct Investment Becomes More Easy

5:37 PM 0
Overseas Direct Investment Becomes More Easy
Due to increase trend of investment abroad, Reserve Bank of India makes some steps to make investment abroad more rationalize and liberalize. RBI issued a circular no. 69 dated 27-05-2011 regarding making investment in abroad more easy. The steps are as follows.
- Performance gurantee issued by Indian party now only need 50% of the amount of performance gurantee for computing financial commitment which was 100% earlier.
- Share need to be 51% in the foreign investment to take loan etc.
Full circular and the steps are as under.