All communication of tax scrutiny to be via e-mail from FY17

by | posted in: Corporate Updates, Income Tax,e-Filing- Individuals, Firms, Companies | 0

The I-T department in the recent times has taken a host of initiatives to reduce human interface between tax official and assessees and make the tax system non-adversarial

 

The income tax department is planning to carry out all communication related to the scrutiny of returns through e-mails from the next fiscal to reduce harassment of tax payers by eliminating interface between assessees and taxmen.

 

The I-T department, on a pilot basis, has already started scrutiny of returns through e-mails in 5 metropolitan cities- Delhi, Mumbai, Bengaluru, Ahmedabad and Chennai regions.

 

“We are working on a software so that all scrutiny communications can be stored in a specified server. Once it is ready, we will shift to e-environment as far as scrutiny, and all communications in this regard are concerned,” a top revenue department official told PTI.

 

The official further said that moving to e-scrutiny would help in combating corruption, as it would reduce the interface between assessee and tax officials. Also, he added that all the communication records with regard to scrutiny would be stored in one place and can be verified whenever needed.

 

“There has been an encouraging response to the pilot project undertaken by the tax department. From next fiscal we want to make all scrutiny communication through emails,” the official said.

 

The Central Board of Direct Taxes (CBDT) has already asked the officials to initiate the concept of using emails for corresponding with taxpayers.

 

The I-T department in the recent times has taken a host of initiatives to reduce human interface between tax official and assessees and make the tax system non-adversarial. These include directing field offices to raise only specific queries in income tax assessment cases picked up for scrutiny. It also directed expeditious completion of those scrutiny cases where income concealed is up to Rs.5 lakh.

 

The department had also stipulated that appeals before I-T commissioner should be filed in electronic format by those assessees who e-file their returns.

 

Source: http://www.livemint.com/Politics/q7dtcfDoj7LMFeJkTG1VRK/All-communication-of-tax-scrutiny-to-be-via-email-from-FY17.html

Rs 8K cr credit guarantee funds for MUDRA, Stand Up India

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The Union Cabinet on Wednesday approved the setting up of two credit guarantee funds to facilitate loans to micro and small entrepreneurs through MUDRA (Micro Units Development Refinance Agency) and the Stand Up India scheme. The corpus of credit guarantee fund for MUDRA will be Rs 3,000 crore and for Stand Up India Rs 5,000 crore. Finance minister Arun Jaitley said these schemes will improve funding to micro and small entrepreneurs and help boost economic activity.

 

Under MUDRA, the agency refinances loans up to Rs 10 lakh to micro and small units, and has so far disbursed loans worth Rs 72,000 crore to 1.73 crore beneficiaries. MUDRA was launched in April last year.

 

The Stand Up India scheme seeks to provide refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs 10,000 crore.

 

The Stand Up India scheme is distinct as its objective is to help entrepreneurs from scheduled castes, scheduled tribes and women entrepreneurs.

 

Each branch of all banks, including private banks, will fund at least two entrepreneurs in the SC/ST category and one in women category, Jaitley said. The government aims to refinance loans of 2.5 lakh borrowers in 36 months under Stand Up India. The credit guarantee fee under both the funds will be paid by the banks and not passed on to the borrowers, banking secretary Anjuly Chib Duggal said.

 

She said the National Credit Guarantee Trustee Company Ltd (NCGTC) would be the trustee for both the credit guarantee funds of MUDRA as well as Stand Up India.

 

The Stand Up India scheme will handhold borrowers both at the pre-loan stage and during operations. “This would include increasing their familiarity with factoring services, registration with online platforms and e-market places as well as sessions on best practices and problem solving,” the government said in a statement. Under the scheme, the margin money would be up to 25 per cent, while remaining would be funded by the bank.

 

The credit guarantee fund for MUDRA is expected to guarantee more than Rs 1 lakh crore worth of loans to micro and small units in the first instance, the government said. It will help in reducing risk taken by banks and financial institutions in case of default under the scheme. The government will provide guarantee on portfolio basis to maximum extent of 50 per cent of the amount in default in portfolio.

 

The Cabinet also approved conversion of MUDRA Ltd, currently a non banking finance company, into a bank called MUDRA-SIDBI Bank, a wholly owned subsidiary of SIDBI.

Source: http://indianexpress.com/article/business/business-others/rs-8k-cr-credit-guarantee-funds-for-mudra-stand-up-india/

E-Commerce Industry to Cross $38 Billion Mark in India

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India’s e-commerce market is likely to touch $38-billion-mark in 2016, a 67 per cent jump over the $23 billion revenue it clocked last year, according to the Associated Chambers of Commerce and Industry (Assocham).

“Increasing internet and mobile penetration, growing acceptability of online payments and favourable demographics has provided the e-commerce sector in India the unique opportunity to companies connect with their customers,” according to the Assocham’s latest report.

Buying trends during 2015 have witnessed a significant upward movement due to aggressive online discounts. India’s e-commerce market was worth about $3.8 billion in 2009, it went up to $17 billion in 2014 and to $23 billion in 2015 and is expected to touch $38-billion mark by 2016, said D.S. Rawat, Secretary General, Assocham.

Mobile commerce

Mobile commerce (m-commerce) is growing rapidly as a stable and secure supplement to the e-commerce industry. Shopping online through smart phones is proving to be a game changer and industry leaders believe that m-commerce could contribute up to 70 per cent of their total revenues, according to the report.

Mumbaikars had left behind all other cities in India shopping online in 2015. While Delhi residents rank second, Ahemdabad came third, Bangalore fourth and Kolkata fifth in their preference for online shopping in 2015.

“The customer is connected 24×7 through their smart phones, tablets and other mobile devices which is leading to a gradual evolution of e-commerce into mobile commerce and there is an issue of convenience which also leads to impulsive buying,” Mr Rawat said. The browsing trends, which have broadly shifted from the desktop to mobile devices in India, online shopping is also expected to follow suit, as one out of three customers currently makes transactions through mobiles in Tier-1 and Tier-2 cities. In 2015, 78 per cent of shopping queries were made through mobile devices, compared to 46 per cent in 2013, said Mr. Rawat.

The highest growth rate was seen in the apparel segment, almost 69.5 per cent over last year followed by electronic items by 62 per cent, baby care products at 53 per cent, beauty and personal care products at 52 per cent and home furnishings at 49 per cent. The most important contributing factor to the rapid growth of digital commerce in India is the increase in the use of smartphones. Mobiles and mobile accessories have taken up the maximum share of the digital commerce market in India, according to the paper.
Online shoppers

Almost 45 per cent of online shoppers reportedly preferred cash on delivery mode of payment over credit cards (16 per cent) and debit cards (21 per cent).

Only ten per cent opted for internet banking and a scanty seven per cent preferred cash cards, mobile wallets and other such modes of payment.

As per the findings, many small companies have also established online stores for group buying, which enable customers to obtain goods at a discount so long as a certain number of people make the purchases.

Shopping centres, whole sale markets and supermarkets should create their online stores to reduce costs and develop product-tracking systems, Mr Rawat said.

Among the age segments, the 18-25 years age group was the fastest growing age segment online with user growth being contributed by both male and female segments, it was said in the paper.

The survey highlights that three per cent of regular shoppers are in 18-25 age group, 52 per cent in 26-35, eight per cent in 36-45 and two per cent in the age group of 45-60.

Sixty-five per cent of online shoppers are male with females constituting 35 per cent. The products that were sold most in 2015 were mobile phones, iPad and accessories, MP3 players, digital cameras and jewellery, among others.

As per the study, there would be more than a five to seven-fold increase in revenue generated through e-commerce compared to last year with all branded apparel, accessories, jewellery, gifts, footwear available at a cheaper rates and being delivered at the doorstep. The most popular among the e-commerce websites — Snapdeal, Myntra, Flipkart, Amazon, Jabong and others — have been doling out massive price cuts or discounts on purchase of popular brands of apparels, footwear, electronic goods, coinciding with the year end.

According to the report, the one of the driving factors for the online shopping is the age profile of the consumers who are young, between 15-35 years. This segment is quite net savvy and enjoys doing new type of shopping experience, virtually from their desk top in office, lap tops at home or even Android-based phones.

Source: http://www.thehindu.com/business/ecommerce-industry-to-cross-38-billion-this-year-assocham/article8058892.ece

SEBI puts in place new form for ASBA

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With a checklist regime kicking in for initial public offerings (IPOs), capital markets regulator the Securities and Exchange Board of India (SEBI), has put in place a new form for ASBA (Application Supported by Blocked Amount) facility.

ASBA facility has become mandatory for all categories of investors applying for a public issue for making payment from Friday. The facility allows the bid amount to remain in the applicants account till the time the shares are finally allotted.

In a circular, SEBI said that the application form for ASBA would be printed in a booklet form of A4 size paper.

Besides, SEBI has prescribed white colour form for Resident Indian, NRIs applying on a non repatriation basis and blue colour form for NRIs, Foreign Venture Capital Investor, Foreign Institutional Investors, their Sub-Accounts (other than sub-accounts which are foreign corporates or foreign individuals bidding under the QIB Portion), on a repatriation basis.

It further said that top of the application form will have a coloured identifier strap incorporating the name of the issuer, ISIN (An International Securities Identification Number) and type of form (Repatriation, Non- Repatriation). Besides, the main application should have information about eight digit application number, PAN number, bidders depository account details, investor category, among others.

A confirmation by the applicant (on behalf of joint bidders) that he/she has read, understood and agrees to such confirmations is also required.

The regulator said that application should also highlight about different category of investors (retail, non-institutional and QIBs), number of equity shares (reservation if applicable), percentage of issue available for allotment, basis of allocation in case of over-subscription, mode of allotment and terms of payment.

The new circular will be applicable for all public issues opening on or after January 1, 2016, SEBI said.

The regulator, in August, had made ASBA facility mandatory for all categories of investors applying for a public issue.

In order to enhance the points for submission of applications, SEBI had also allowed Registrar and Share Transfer Agents (RTAs) and Depository Participants (DPs) to accept application forms (both physical as well as online) and make bids on the stock exchange platform.

This will be over and above the stock brokers and banks where such facilities are presently available. The number of bank branches with ASBA facility has now increased to about 95,500, from 9,800 when this facility was introduced.

Source: http://www.thehindu.com/business/Industry/new-form-for-asba-in-place/article8055065.ece

SEBI to allow soon mutual funds sale on e-commerce platforms

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SEBI Chairman, U K Sinha said sale of mutual funds on e-commerce platforms could become effective in a month, a move which will help deepen the respective market. He said sale of mutual funds on e-commerce platforms could become effective in a month, a move which will help deepen the respective market. The markets regulator has set up a committee under Infosys co-founder Nandan Nilekani to deliberate ways in which electronic means can be used better for sale of mutual funds (MF).

The committee is also working to make sale of mutual funds possible on e-commerce platforms, the SEBI Chairman said. “My guess is that in the next one month, this will be done (permitting sale of mutual funds on e-commerce websites),” he said while speaking to media on the sidelines of the launch of Bandhan Bank’s 600th branch.

According to Sinha, mutual fund growth in the country has been “very good” and that an ever-growing number of consumers flock to e-commerce websites for shopping. “However, electronic means are not used as well as they should have been and the growth is not happening using such means. We have some experts deliberating on how the electronic means can be used better,” Sinha said.

Targeting the young and educated people with high salaries and disposable income, Sinha said, the move would help them invest easily. “If these people are doing e-shopping, and they know financial markets, then they should also invest in MFs and that is the direction in which we are thinking,” the SEBI Chairman said.

On listing of start-ups, Sinha said it will take its own time. “Important thing to note is that the regulations are in place. If there is a company under pressure, there is alternative before the company to raise(funds),” Sinha noted, adding that the markets regulator was in dialogue with start-ups related to the issue.

Sinha also noted that some start-ups have raised issues concerning taxation but the same is beyond the jurisdiction of SEBI. On initial public offers (IPOs), the SEBI chief said that the pipeline by companies for the coming year is “very healthy”. “You might have noticed that the time taken by SEBI in providing its observations, has come down substantially. Earlier, matters went up to one year, now it is three months on an average for IPOs.”

Sinha noted that SEBI had allowed Rs 60,000 crore worth of IPOs in 2013-14, but the promoters had decided to withdraw the offers implying lack of desire to make investments. “In 2014-15 we saw around Rs 9,500 crore worth of IPOs and this year already Rs 18,000 crore has been garnered through IPOs, while the pipeline going forward is very healthy”, Sinha said.

Source: http://yourstory.com/2015/12/sebi-mutual-funds-e-commerce/

FDI flow in to India grows by 35% in last 17 months

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Foreign direct investment into India has grown by 35 per cent in the last 17 months even as across the world it has fallen by 16 per cent, a top Union government official said today.

“FDI in India has grown by 35 per cent at a point of time when FDI across the world has fallen by 16 per cent,” Department of Industrial Policy and Promotion Secretary Amitabh Kant told reporters here.

He said ‘Make in India’ was launched in end-September last year and since then FDI has grown by 40 per cent as compared to the previous year, “but if you look at the last seventeen months of this government FDI has grown by 35 per cent as compared to the previous seventeen months.”

FDI has come into manufacturing, consumer goods, logistics and food processing sectors, he added.

Kant was today given additional charge of the post of CEO, NITI Aayog, consequent to the completion of tenure of Sindhushree Khullar.

Asked about the additional charge, he said “…I have not yet taken over.”

On startups, Kant said, “there is a huge energy, vitality and dynamism amongst startups in India and we need to carry this forward from digital startups to manufacturing startups, to startups in agriculture and social innovation areas, and from tier one to tier two and three cities.”

“The Prime Minister will be launching the Startup India movement on January 16 in New Delhi, we are inviting all the startups from Bengaluru to participate in this.”

“On that day we will link up all the IITs, IIMs, NITs and central universities for viewing of the startup India discussions from morning to evening,” he added.

He also said to provide a major impetus to the sector the Prime Minister will unveil the action plan for startups on that day.

On the economy, Kant said India is growing at 7.4 per cent and “it is an oasis of growth in the midst of a very balanced economic landscape across the world.”

“Challenge for India is to grow at 9-10 per cent over a long period of time over the next three decades or more,” he said.

“If India has to grow at 9-10 per cent India must become a very easy and simple place for people to do business….; It has to grow rapidly in manufacturing sector,” he added.

While speaking about the Make in India initiative of the government, Kant said Make in India week is being organised from February 13 to 18 in Mumbai, where about hundred countries are participating from across the world. Also, Asia business forum will be held during this event.

Stating that government is taking a series of measures to make India a very easy and a very simple place to do business, he said, “We have created an e-biz platform with Infosys where we have put twenty government services online with one single point of payment….”

“Our objective is that in the long run there should be only one identification number for the businessmen. The company identification, the labour identification and others should all get merged into one identification and there should be just one single form…..” he added.

Speaking about competition among states in ease of doing business, Kant said last year we had ranked the states on hundred points, this year we are doing it on 340 points.

“We expect Karnataka to do extremely well this year and take action on all 340 points and prove its position; Karnataka must come in top three,” he added.

 

Source: http://www.business-standard.com/article/pti-stories/fdi-flow-grows-by-35-in-last-17-months-official-115122900639_1.html