January 08 , 2023.
Implementation of Indian Accounting Standards (Ind AS)
Excerps from RBI Circular To address the prudential concerns arising from continued recognition of unrealised income, it has been decided that ARCs preparing their financial statements as per Ind AS, shall reduce the following amounts from their net owned funds while calculating the Capital Adequacy Ratio and the amount available for payment of dividend: (a) Management fee recognised during the planning period1 that remains unrealised beyond 180 days from the date of expiry of the planning period. (b) Management fee recognised after the expiry of the planning period that remains unrealised beyond 180 days of such recognition. (c) Any unrealised management fees, notwithstanding the period for which it has remained unrealised, where the net asset value of the Security Receipts has fallen below 50 per cent of the face value
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Date:April 20,2023.
Clarification regarding deduction of TDS under section 192 read with sub-section (IA) of section 115BAC of the Income-tax Act, 1961 - reg.
We are reproducing the clarifications :
- F. No.370142/06/2023-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (TPL Division)
- Sub: Clarification regarding deduction of TDS under section 192 read with sub-section (IA) of section 115BAC of the Income-tax Act, 1961 - reg.
- Vide Finance Act, 2023, sub-section (lA) has been inserted in section 115BAC ofthe Income-tax Act, 1961 ( the Act) to provide for a new tax regime with effect from the assessment year beginning on or after the 1st day of April, 2024. This regime applies to an individual or Hindu undivided family or association of persons [other than a cooperative society] or body of individuals, whether incorporated or not, or an artificial juridical person. Under this new regime, the income-tax in respect of the total income of the person shall be computed at the rates provided in sub-section (1A) of section 115BAC, subject to certain conditions, including the condition that the person does not avail of specified exemptions and deductions.
- 2. The above mentioned new tax regime is the default tax regime applicable to all persons mentioned above. However, under sub-section (6) of section 115BAC of the Act, a person may exercise an option to opt out ofthis tax regime. A person not having income from business or profession can exercise this option every year.
- 3. Representations have been received expressing concerns regarding tax to be deducted at source (TDS) on salary income of a person under section 192 of the Act as the deductor, being an employer, would not know if the person, being an employee, would opt out from taxation under sub-section (1A) ofsection 115BAC ofthe Act or not.
- 4. In order to avoid the genuine hardship in such cases, the Board, in exercise of powers conferred under section 119 of the Act, hereby directs that a deductor, being an employer, shall seek information from each of its employees having income under section 192 of the Act regarding their intended tax regime and each such employee shall intimate the same to the deductor, being his employer, regarding his intended tax regime for each year and upon intimation, the deductor shall compute his total income, and deduct tax at source thereon according to the option exercised. Circular No. 04 of 2023 th Dated: 5 April, 2023
- 5. If intimation is not made by the employee, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Accordingly, in such a case, the employer shall deduct tax at source, on income under section 192 of the Act, in accordance with the rates provided under sub-section (lA) of section 115BAC of the Act.
- 6. It is also clarified that the intimation would not amount to exercising option in terms of sub-section (6) of section 115BAC of the Act and the person shall be required to do so separately in accordance with the provisions ofthe sub-section.
- 7. This circular is in supersession of Circular No. Cl of2020 dated 13.04.2020 and shall be applicable for TDS during the financial year 2023-24 and subsequent years.
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Date:April 20,2023.
Master Circular-Housing Finance
Excerpts from RBI Circular:
- This Master Circular consolidates instructions on the above matter issued up to March 31, 2023.
- While formulating their policies, banks have to take into account the following RBI guidelines and ensure that bank credit is used for production, constructions activities and not for activities connected with speculation in real estate.
- (A) ACQUISITION OF LAND
- Bank finance can be granted only for purchase of a plot, provided a declaration is obtained from the borrower that he intends to construct a house on the said plot, with the help of bank finance or otherwise, within such period as may be laid down by the banks themselves.
- (B) CONSTRUCTION OF BUILDING / READY-BUILT HOUSE
(i) Banks may grant loans to individuals for purchase/construction of dwelling unit per family and loans for repairs to the damaged dwelling units of families.
(ii) Banks may extend finance to a person who already owns a house in town/village where he resides, for buying/ constructing a second house in the same or other town/ village for the purpose of self-occupation.
(iii) Banks may extend finance for purchase of a house by a borrower who proposes to let it out on rental basis on account of his posting outside the headquarters or because he has been provided accommodation by his employer.
(iv) Banks may extend finance to a person who proposes to buy an old house where he is presently residing as a tenant.
(v) Banks may finance for construction meant for improving the conditions in slum areas for which credit may be extended directly to the slum-dwellers on the guarantee of the Government, or indirectly to them through the State Governments.
(vi) Banks may provide credit for slum improvement schemes to be implemented by Slum Clearance Boards and other public agencies.
(vii) Banks are advised to also adhere to the following conditions, in the light of the observations of Delhi High Court on unauthorized construction:
- (a) In cases where the applicant owns a plot/land and approaches the banks/FIs for a credit facility to construct a house, a copy of the sanctioned plan by competent authority in the name of a person applying for such credit facility must be obtained by the Banks/FIs before sanctioning the home loan.
- (b) An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be strictly as per the sanctioned plan and it shall be the sole responsibility of the executants to obtain completion certificate within 3 months of completion of construction, failing which the bank shall have the power and the authority to recall the entire loan with interest, costs and other usual bank charges.
- (c) An Architect appointed by the bank must also certify at various stages of construction of building that the construction of the building is strictly as per sanctioned plan and shall also certify at a particular point of time that the completion certificate of the building issued by the competent authority has been obtained.
- (d) In cases where the applicant approaches the bank/FIs for a credit facility to purchase a built up house/flat, it should be mandatory for him to declare by way of an affidavit-cum-undertaking that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and as far as possible has a completion certificate also.
- (e) An Architect appointed by the bank must also certify before disbursement of the loan that the built up property is strictly as per sanctioned plan and/or building bye-laws.
- (f) No loan should be given in respect of those properties which fall in the category of unauthorized colonies unless and until they have been regularized and development and other charges paid.
- (g) No loan should also be given in respect of properties meant for residential use but which the applicant intends to use for commercial purposes and declares so while applying for loan.
Read RBI Circular on Housing Finance
Date:April 09,2023.
Reserve Bank of India (Credit Card and Debit Card-Issuance and Conduct) Directions, 2022- effective from July 01, 2022
- (a) The provisions of these Directions relating to credit cards shall apply to every Scheduled Bank (excluding Payments Banks, State Co-operative Banks and District Central Co-operative Banks) and all Non-Banking Financial Companies (NBFCs) operating in India.
- (b) The provisions of these Directions relating to debit cards shall apply to every bank operating in India.
- (c) These directions cover the general and conduct regulations relating to credit, debit and co-branded cards which shall be read along with prudential, payment and technology & cyber security related directions applicable to credit, debit and co-branded cards, as issued by the Reserve Bank.
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Date:April 08,2023.
Master Direction on Counterfeit Notes, 2023 - Detection, Reporting and Monitoring
The Reserve Bank of India has, issued Master Direction incorporating and updating on Counterfeit Notes, Detection, Reporting and Monitoring
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Date:April 06,2023.
Monetary Policy Statement, April 06, 2023.
- RBI keeps policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50
- standing deposit facility (SDF) rate remains unchanged at 6.25 per cent
- marginal standing facility (MSF) rate and the Bank Rate at 6.75
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Date:March 29,2023.
Premature redemption under Sovereign Gold Bond (SGB) Scheme- Redemption Price for premature redemption due on March 29, 2023 (SGB 2016-II and 2016-17-Series II)
In terms of GOI Notifications F.No.4(19) - W&M/2014 dated March 04, 2016 (SGB 2016-II -Issue date March 29, 2016) and F.No.4(7) - W&M/2016 dated August 29, 2016 (SGB 2016-17 Series II -Issue date September 30, 2016) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the due date of premature redemption of the above two tranches shall be March 29, 2023 (March 30, 2023 being a holiday).
2. Further, the redemption price of SGB shall be based on simple average of closing price of gold of 999 purity, of the week (Monday-Friday) preceding the date of redemption, as published by the India Bullion and Jewellers Association Ltd. (IBJA). Accordingly, the redemption price for premature redemption due on March 29, 2023 (March 30, 2023 being a holiday) shall be ₹5921/- (Rupees Five thousand nine hundred and twenty-one only) per unit of SGB based on the simple average of closing gold price for the week March 20-24, 2023.
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Date:March 10,2023.
Digital Payments Awareness Week
Address by Governor, Shri Shaktikanta Das, Reserve Bank of India - March 06, 2023 - Digital Payments Awareness Week (March 6-12, 2023) Launch of Mission ‘Har Payment Digital’, Mumbai
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Date:February 28,2023.
Disclosures of Common Interest RTI .
The Reserve Bank of India receives requests for information under the Right to Information Act, 2005. Some information furnished by the Chief Public Information Officer in response requests, would be of interest to the members of the public. Such information is furnished in this Disclosure Log.
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July 16 , 2022.
Additional arrangement for invoicing, payment, and settlement of exports / imports in INR- Excerpts:
- Invoicing: All exports and imports under this arrangement may be denominated and invoiced in Rupee (INR).
- Exchange rate between the currencies of the two trading partner countries may be market determined.
- The settlement of trade transactions under this arrangement shall take place in INR in accordance with the procedure laid down in Para 3 of this circular.
- AD banks in India have been permitted to open Rupee Vostro Accounts
- Indian exporters may receive advance payment against exports from overseas importers in Indian rupees through the above Rupee Payment Mechanism
- Issue of Bank Guarantee for trade transactions, undertaken through this arrangement, is permitted subject to adherence to provisions of FEMA
- The balance in Special Vostro Accounts can be used for:
Payments for projects and investments.
Export/Import advance flow management
Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision.
Click to read RBI Circular -International Trade Settlement in Indian Rupees (INR)
July 16 , 2022.
Additional arrangement for invoicing, payment, and settlement of exports / imports in INR- Excerpts:
- Invoicing: All exports and imports under this arrangement may be denominated and invoiced in Rupee (INR).
- Exchange rate between the currencies of the two trading partner countries may be market determined.
- The settlement of trade transactions under this arrangement shall take place in INR in accordance with the procedure laid down in Para 3 of this circular.
- AD banks in India have been permitted to open Rupee Vostro Accounts
- Indian exporters may receive advance payment against exports from overseas importers in Indian rupees through the above Rupee Payment Mechanism
- Issue of Bank Guarantee for trade transactions, undertaken through this arrangement, is permitted subject to adherence to provisions of FEMA
- The balance in Special Vostro Accounts can be used for:
Payments for projects and investments.
Export/Import advance flow management
Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision.
Click to read RBI Circular -International Trade Settlement in Indian Rupees (INR)
Income Tax Calculator FY 2022-23.
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Income Tax Calculator FY 2021-22.
Before filing income tax returns, know your tax liability under " NEW AND OLD TAX REGIME" and choose the one favorable to you.