TAXES
20:37
Showing posts with label TAXES. Show all posts
Showing posts with label TAXES. Show all posts
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Sunday, 8 October 2017
TAXES
10:15
Sovereign Gold Bond Scheme
Sovereign Gold Bond Scheme
RBI/2017-18/71
IDMD.CDD.No.929/14.04.050/2017-18
October 06, 2017
The Chairman & Managing Director
All Scheduled Commercial Banks,
(Excluding RRBs)
Designated Post Offices
Stock Holding Corporation of India Ltd.(SHCIL)
National Stock Exchange of India Ltd. & Bombay Stock Exchange Ltd.
Dear Sir/Madam,
Sovereign Gold Bond Scheme
Government of India has vide its Notification F.No. 4(25)-B/(W&M)/2017 dated October 06, 2017 announced that the Sovereign Gold Bond Scheme. Under the scheme SGBs (The Bonds) will be issued in a series of weekly issuances which will be open for subscription from Monday to Wednesday of every week starting from October 09, 2017. The Government of India may, with prior notice, close the Scheme before the specified period. The terms and conditions of the issuance of the Bonds shall be as follows:
1. Eligibility for Investment:
The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. The bond may also be held by a Trust, Charitable Institution and University. “Person resident in India” is defined under section 2(v) read with section 2(u) of the Foreign Exchange Management Act, 1999
2. Form of Security
The Bonds shall be issued in the form of Government of India Stock in accordance with section 3 of the Government Securities Act, 2006. The investors will be issued a Holding Certificate (Form C). The Bonds shall be eligible for conversion into de-mat form.
3. Date of Issue
The bond shall be issued on the first business day of next week for the applications received during a given week.
4. Calendar of Issuance:
The Sovereign Gold Bonds will be issued every week from October 2017 to December 2017 as per the calendar specified below:
S.No Period of Subscription Date of issuance
1. October 09-11, 2017 October 16, 2017
2. October 16-18, 2017 October 23, 2017
3. October 23-25, 2017 October 30, 2017
4. October 30-November 01, 2017 November 06, 2017
5. November 06-08, 2017 November 13, 2017
6. November 13-15, 2017 November 20, 2017
7. November 20-22, 2017 November 27, 2017
8. November 27-29, 2017 December 04, 2017
9. December 04-06, 2017 December 11, 2017
10. December 11-13, 2017 December 18, 2017
11. December 18-20, 2017 December 26, 2017
12. December 26-27, 2017 January 01, 2017
5. Denomination
The Bonds shall be denominated in units of one gram of gold and multiples thereof. Minimum investment in the Bonds shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March), provided that
annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market; and
the ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.
6. Issue Price
Price of the Bonds shall be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewelers Association Limited for the last three business days of the week preceding the subscription period. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online and the payment against the application is paid through digital mode.
7. Interest
The Bonds shall bear interest at the rate of 2.50 percent (fixed rate) per annum on the amount of initial investment. Interest shall be paid in half-yearly rests and the last interest shall be payable on maturity along with the principal.
8. Receiving Offices
Scheduled Commercial Banks (excluding RRBs), designated Post Offices (as may be notified), Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. are authorized to receive applications for the Bonds either directly or through agents.
9. Payment Options
Payment shall be accepted in Indian Rupees through cash up to a maximum of ₹ 20,000/- or Demand Drafts or Cheque or Electronic banking. Where payment is made through cheque or demand draft, the same shall be drawn in favour of receiving office.
10. Redemption
i) The Bonds shall be repayable on the expiration of eight years from the date of issue of Gold bonds. Pre-mature redemption of the Bond is permitted from fifth year of the date of issue on the interest payment dates.
ii) The redemption price shall be fixed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited. The receiving office shall inform the investor of the date of maturity of the Gold Bond one month before its maturity.
11. Repayment
RBI/depository shall inform the investor of the date of maturity of the Bond one month before its maturity.
12. Eligibility for Statutory Liquidity Ratio (SLR)
The holding of these Bonds by banks as collateral shall be counted towards Statutory Liquidity Ratio holding.
13. Loan against Bonds
The Bonds may be used as collateral for loans. The Loan to Value ratio will be as applicable to ordinary gold loan mandated by the RBI from time to time. The lien on the Bonds shall be marked in the depository by the authorized banks.
14. Tax Treatment
Interest on the Bonds shall be taxable as per the provisions of the Income-tax Act, 1961. The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond
15. Applications
Subscription for the Bonds may be made in the prescribed application form (Form ‘A’) or in any other form as near as thereto stating clearly the grams of gold and the full name and address of the applicant. The receiving office shall issue an acknowledgment receipt in Form ‘B’ to the applicant.
16. Nomination
Nomination and its cancellation shall be made in Form ‘D’ and Form ‘E’, respectively, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated December 1, 2007.
17. Transferability
The Bonds shall be transferable by execution of an Instrument of transfer as in Form ‘F’, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated December 1, 2007.
18. Tradability of bonds
The Bonds shall be eligible for trading from such date as may be notified by the Reserve Bank of India.
19. Commission for distribution
Commission for distribution shall be paid at the rate of rupee one per hundred of the total subscription received by the receiving offices on the applications received and receiving offices shall share at least 50% of the commission so received with the agents or sub-agents for the business procured through them.
20. All other terms and conditions specified in the notification of Government of India in the Ministry of Finance (Department of Economic Affairs) vide number F. No.4(13) W&M/2008, dated 8th October 2008 shall apply to the Bonds.
21. Operational guidelines relating to Sovereign Gold Bonds are issued vide circular IDMD.CDD.No.927/14.04.050/2017-18 dated October 06, 2017.
Yours faithfully,
(Shyni Sunil)
Deputy General Manager
Encls.: As above.
Friday, 28 April 2017
TAXES
07:40
Issue of Pension Payment by Banks: New Checklist for audit of Systems and Controls for conduct of government banking
Issue of Pension Payment by Banks: New Checklist for audit of Systems and Controls for conduct of government banking
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2016-17/271
DGBA.GAD.No.2646/31.02.007/2016-17
April 7, 2017
All Agency Banks
Dear Sir/Madam,
Systems and Controls for conduct of government banking
Please refer to our Master Circulars DGBA.GAD.No.2/31.12.010/2015-16 dated July 1, 2015 on Conduct of Government Business by Agency Banks – Payment of Agency Commission and DGBA.GAD.No.H-1/31.05.001/2015-16 dated July 1, 2015 on Disbursement of Government Pension by Agency Banks that, inter alia, deal with Systems and Controls in agency banks for conduct of government banking.
In addition to existing instructions, agency banks may ensure that internal/concurrent audit at bank branches verifies whether government business is being conducted as per rules and regulations prescribed by government/RBI. Accordingly, the internal/concurrent audit at bank branches may also examine, among other things, various aspects of government banking such as agency commission claims and pension payments. A checklist may be provided to the inspecting officers/auditors, which may at a minimum include the items given in the Annex. Accordingly, Annex 2 of the Master Circular DGBA.GAD.No.H-1/31.05.001/2015-16 on Disbursement of Government Pension by Agency Banks dated July 1, 2015 stands withdrawn.
Yours faithfully,
(D. J. Babu)
Deputy General Manager
Annex
Checklist relating to government business for internal / concurrent audit
Part B: Pension related issues
Internal inspections should assess branch performance in servicing pensioner customers. In this regard, the following may be ensured:
A specific questionnaire covering all aspects of pension payment may be devised for use during inspection of pension paying branches.
Inspecting officers may also, during inspections, call up pensioners at random and enquire about their satisfaction with pension-related services.
A detailed check-list relating to pension payments/government business may be given by banks to internal auditors/inspectors in order to adhere to the recommendations of the Prabhakar Rao Committee, constituted by the Government of India, relating to pension payments/government business.
These include the following:
(a) Whether there is delay in payment of pension, revision of pension, revision in dearness relief etc.
(b) Whether the branch manager has structured interaction with a cross section of pensioners serviced at the branch on quarterly basis, where the number of pensioners of all governments and departments exceeds a fixed number, say, 100 or 200.
(c) Whether nominations have been obtained for all pension accounts.
(d) Whether pension accounts have been converted into joint accounts wherever applicable.
(e) Whether the bank branch has an effective complaint redressal mechanism and the complaints of pensioners are attended promptly and their grievances redressed expeditiously.
(f) Whether the pension is credited to pensioner’s account during the last four working days of the month except for the month of March for which pension is to be credited on or after first working day of April.
(g) Whether the pension paying branch obtains Life Certificate/ Non-employment certificate/ Employment Certificate from the pensioners in the month of November every year.
(h) Whether pension paying branches deduct income tax at source from pension payments wherever applicable.
(i) Whether paper tokens in acknowledgement of cheques presented are invariably given by the tax collecting branches.
(j) Whether the challans are stamped giving bank’s BSR code and Challan Identification Number (CIN) clearly.
(k) Whether the stamped challans are kept in the custody of bank’s staff and handed over to the concerned tax payer only on production of the paper token.
(Source :http://ex-servicemenwelfare.blogspot.in/)
Sunday, 23 April 2017
TAXES
08:07
PUNJAB NATIONAL BANK EMPLOYEES HOUSING LOAN AND CAR LOAN AMENDMENT CHART
PUNJAB NATIONAL BANK EMPLOYEES HOUSING LOAN AND CAR LOAN AMENDMENT CHART
Source:PNB UNION w.b,PNB UNION w.b
Monday, 3 April 2017
TAXES
07:56
Recent Dividends Declared for all types of Schemes
Recent Dividends Declared for all types of Schemes
Recent Dividends Mutual fund dividends are declared for all type of schemes, whether it is debt mutual funds or whether it is equity mutual funds. So, if you are a buyer of units of mutual fund schemes, the first thing that you should be doing is checking the dividends. We prrovide a comprehensive and a detailed list of daily dividends declared by mutual funds.
Importance of checking mutual fund recent dividends
Mutual funds declare dividends from time to time. It becomes important to check the list of forthcoming mutual funds dividend, so you do not miss on the payout. Remember, that such dividends declared by mutual funds are tax free in the hands of the investors. If you go for the growth plan under the schemes, you do not get tax benefits as there is a capital gains tax that is available. So, be careful when you choose your mutual fund scheme. Remember, that it is also important to check the upcoming mutual funds dividend also because there is a possibility of you missing the same and buying the units when the scheme has gone ex dividend. There is something called a record date, that you should keep in mind, before you buy a unit. If the record date is over, then you would not receive your dividends. So, that is one the most important dates that you need to keep in mind, before you invest.
So, how often do mutual funds declare dividends?
It really depends on the type of scheme. If you have opted for a regular dividend plan like monthly, then you would have to go with a debt plan, as the dividends here are more assured. On the other hand, if you go with the growth plan, then you need to think of more of a long term. Most plans often you have both options, and it is purely your choice, which to take and which to skip. Do not forget to remember the tax liability that could arise in each case. Equity schemes, debt schemes and also the balanced funds declare regular dividends and you can check either of these, before deciding to invest in one scheme or the other.
How to calculate returns from recent mutual fund dividends?
It is always difficult to know the returns from mutual fund dividends. However, you should know the same, because you may need to compare, if the mutual fund dividend is better than the returns one gets from bank deposits. So, let us say that you do a simple working. Say, you bought a debt fund with yearly dividend distribution. You calculate and see if the amount of dividend received after one year is also equal to the amount of yields is higher than bank deposits. If the yield is higher, you are better placed when compared to banks. Also, you must noted the tax liability that could arise in the case of both. Mutual fund dividends are more tax efficient than banks, especially the dividends from equity mutual funds. Bank deposits are not tax free at all and hence are a bad proposition. The returns from these are also not very encouraging, which is why the mutual fund dividends is the best proposition that you can have. Also, do not go for the growth option, but, the dividend option of mutual funds. When buying also make sure that you compare and study the recent dividend of mutual funds to avoid, buying ones that have not yielded the best returns over a period of time. We suggest that you look for ones that have a good track record.
Mutual funds that declare dividends in India
There are a host of mutual funds that declare dividends in India. Among these are some of the biggset mutual funds, including name like HDFC Mutual Fund, Reliance Mutual Fund and ICICI Prudential Mutual Fund. You need to regularly receive your dividends mutual fund units, your must examine, the frequency with which these mutual funds declare their dividends. Some of then to not declare so often, and it largely depends on the scheme that you have chosen. You can choose dividends in a wide variety of ways, including the yearly, monthly and the quarterly dividends payment. You can choose the one that suits you the best and act accordingly. One thing that we must state is that dividends are tax free and hence only opt for them and not for the growth mutual funds.
Source:URL
Friday, 17 March 2017
TAXES
08:40
VAT in UAE: What you need to know
VAT in UAE: What you need to know
Dubai: In 2018, consumers in UAE are expected to pay a 5 per cent value-added tax when purchasing most goods and services.
The six states in the Gulf Cooperation Council (GCC) region have agreed to implement VAT, which will generate $25 billion (Dh91.8 billion) in tax proceeds every year.
The new tax policy’s go-live date is only less than a year away, yet many questions still hang in the air. Gulf News collates information from various sources, to answer some of these queries.
Although the roll-out of the new tax policy is months away, many questions still hang in the air
Will I pay VAT every time I purchase something at the grocery?
No. There will be a number of items in your shopping cart that will be VAT-exempt. Younis Al Khouri, undersecretary at the Ministry of Finance, has said that GCC states had already agreed to exempt about 94 food products, as well as the healthcare and education sectors. That means your grocery, hospital or school bills will most likely remain unchanged, unless there are price hikes. A new law, however, has yet to be released to specify which items are non-taxable.
When I buy electronics, clothes, home furnishings and other non-essentials, shall I expect to pay more once VAT is implemented?
Yes. Since VAT is going to be levied on non-essentials, expect to pay a tax when buying electronic items, home appliances and other big-ticket goods. If you want to own a brand-new mobile phone that costs Dh2,600, for instance, prepare to pay an extra Dh130. “There would be definitely an additional payment on non-essentials,” said Rakesh Pardasani, partner at RSM. “In some cases for white goods, manufacturers may absorb some of the 5 per cent, to keep their products competitive but yes, the end consumer can expect to pay more.
How about buying airline tickets, will it also be taxable?
Since the VAT law is not out yet, there is no definitive answer to this. But judging by the VAT implementation in other countries, there is a likelihood that the price of airfares won’t go up because of VAT. “We will have to wait and see, but if we look at examples in other countries, for instance in the UK as well as in Singapore (where VAT is called GST), passenger transport carries VAT at zero percent. So, it is expected that air tickets in the UAE may be carrying similar VAT rate of zero percent,” said Pardasani.
Will the 5 per cent VAT increase the cost of living in UAE?
The cost of living will likely go up slightly for a lot of people, but this will all depend on the individual’s buying preferences and lifestyle. If you keep on taking home things that are taxable and maintain an expensive lifestyle, expect your outgoings to increase. “If you ask me, I don’t think 5 per cent will break the bank,” said Pardasani, when asked whether VAT will make dining at restaurants costlier. “If one is to spend mainly on items which are not attracted by VAT, then the cost of living of the individual is unlikely to have any significant increase,” according to the Emirates Chartered Accountants Group.
Will tourists also pay VAT?
Yes. Tourism spending is a major source of revenue for the UAE and goods purchased by visitors will not be exempted at the point of sale. Anyone buying perfumes, make-up, luxury bags and big-ticket items in the UAE can expect to pay an additional 5 per cent of the sale price. The Ministry of Economy, however, assured that the tax rate is “deliberately low so that VAT is a limited burden on all consumers.” It also remains to be seen if tourists will be given the option to obtain a tax refund at some point, as observed in other countries.
What other taxes is the UAE considering?
The UAE is not discounting the possibility of collecting other forms of tax. “As per global best practice, the UAE is exploring other tax options as well. However, these are still being analysed and it is unlikely that they will be introduced in the near future. The UAE is not currently considering personal income taxes, however,” said the Ministry of Finance.
Will businesses be penalised if they don’t collect VAT?
Businesses are encouraged to implement the new tax system, but the Ministry of Finance said that the government is currently in the process of defining the exact fees and penalties for non-compliance.
When will registration for VAT begin?
If the initial date for the VAT roll-out is followed, businesses can probably start registering for VAT from 1st October 2017. As announced recently, the registration will be open three months before the go-live date. Companies will have the option to register online.
How often are companies required to file VAT returns?
For most businesses, VAT returns should be filed every three months. Filing of returns can also be done online using the government’s eServices.
What should businesses do to prepare for VAT?
According to the Ministry of Finance, businesses may need to change their core operations, financial management and book-keeping, technology and human resource mix in order to prepare for VAT. “It is essential that businesses try to understand the implications of VAT now and once the legislation is issued, make every effort to align their business model to government reporting and compliance requirements.” Businesses are also strongly advised to ensure that in all the commercial contracts they enter into, they include a clause that spells out that the VAT burden can be passed on to the consumer.
“Once the law is out, businesses would first have to figure out whether their products/services are taxable or not and if yes, they would have to ensure that their billing or invoicing process is capable of adding a VAT charge to all taxable products. The easiest way to do this is to alter your IT systems to automatically calculate and add VAT to the invoices,” said Pardasani.
Should companies start hiring VAT professionals?
Hiring new staff that will enable businesses prepare for and implement the new tax policy should be done at this point in time. “Companies should have started to think about the additional resources they would need to ensure VAT compliance. Depending on how tedious / frequent the process is, companies would need resources based on the complexity of their operations. But one thing to bear in mind is that VAT is not only a finance issue,” said Pardasani. “It flows through all operational departments of the company. This is because wherever a company acquires products or services, it may pay VAT and it would need to capture all the documentation relating to VAT paid, in order to claim refunds.”
Source:Gulf News
Friday, 10 March 2017
TAXES
22:57
IRDAI CERTIFIED MORE FOREIGN RE-INSURERS
IRDAI CERTIFIED MORE FOREIGN RE-INSURERS
Seven foreign Re-insurers to set up branches in India
The Insurance Regulatory and Development Authority of India (IRDAI) has issued Certificate of Registration to Seven foreign Re-insurers to set up branches in India. The details are as follows:
1)MunchenerRuckversicherungs-GesellschaftAktiengesellschaft.
2)Swiss Reinsurance Company Ltd.
3) SCOR SE – India Branch
4) Hannover Ruck SE
5) RGA Life Reinsurance Company of Canada
6) Lloyd’s India Reinsurance Branch
7) XL Insurance Company SE, India Reinsurance Branch.
Government through the Insurance Laws (Amendment) Act, 2015, has allowed foreign re-insurers to open their branches in India.
As of now, GIC Re is the only re-insurer fully operational in India. Recently, IRDAI has issued Certificate of Registration to another reinsurance company “ITI Reinsurance Ltd.” to transact reinsurance business in India.
Government has no such proposal under consideration at present to reduce the taxes on the petrol and diesel.
This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
Tuesday, 28 February 2017
TAXES
07:39
Sovereign Gold Bond Scheme 2016 -17 - Series IV - Issue Price
Sovereign Gold Bond Scheme 2016 -17 - Series IV - Issue Price
Date : Feb 23, 2017
Sovereign Gold Bond Scheme 2016 -17 - Series IV - Issue Price
In terms of Government of India notification F. No. 4(16)-W&M/2016 and RBI circular IDMD.CDD.No.2187/14.04.050/2016-17 dated February 23, 2017, the Sovereign Gold Bond Scheme 2016-17, Series IV will be opened for subscription for the period from February 27, 2017 to March 03, 2017. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the week preceding the subscription period, i.e. February 20-23, 2017 (February 24, 2017, being holiday on account of Maha Shivratri), works out to ₹ 2943/- per gram. Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of ₹ 50 per gram on the nominal value of the Sovereign Gold Bond. Hence, the issue price of Gold Bond for this tranche has been fixed at ₹ 2893 /- (Rupees Two Thousand Eight Hundred Ninety Three only) per gram of gold.
Ajit Prasad
Assistant Adviser
Press Release : 2016-2017/2283
Source:RBI
Source:RBI
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Date : Feb 23, 2017
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Sovereign Gold Bond Scheme 2016 -17 –
Series IV
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Source:RBI
