Small savings schemes interest rates hiked for April-June 2023 quarter Small savings schemes interest rates have been hiked by 10-70 basis points for the latest quarter. But the interest rate on PPF has been left unchanged at 7.1% . MAULIK MADHU MARCH 31, 2023 / 07:08 PM IST money control

 

                    Hike in interest rates on small savings schemes.

Bringing cheer to investors, the government raised interest rates across all small savings schemes except the post office savings deposit and the Public Provident Fund (PPF) for the April-June 2023 quarter. The rates were announced this evening.

Most significantly, the interest rate on the National Savings Certificate (NSC) has been hiked from 7 percent for the January – March 2023 quarter to 7.7 percent for the April – June 2023 quarter.

Interest rates on all post office term deposits (with maturities of 1,2,3 and 5 years) have been raised by 10 to 50 basis points. One basis point is one-hundredth of a percentage point. The sharpest hike has been introduced for the 5-year post office term deposit – from 7 percent for the January – March 2023 quarter to 7.5 percent for the April-June 2023 quarter. The Sukanya Samriddhi Account Scheme too will enjoy a higher rate of interest – up from the existing 7.6 percent to 8 percent .

The interest rate on the Senior Citizen Savings Scheme has been raised by 20 basis points from 8 percent for the January-March 2023 quarter to 8.2 percent for the April-June 2023 quarter.

To benefit senior citizens, the Finance Minister raised the maximum deposit limit for this scheme from Rs. 15 lakh to Rs. 30 lakh in Budget 2023. For the Monthly Income Account Scheme, the interest rate has been hiked by 30 basis points from 7.1 percent to 7.4 percent . The maximum deposit limit for this scheme too was raised in the budget - from Rs 4.5 lakh to Rs 9 lakh for single accounts and from Rs 9 lakh to Rs 15 lakh for joint accounts.

However, the interest rate on PPF has been left unchanged at 7.1 percent and that on the post office savings deposit at 4 percent.

Commenting on the latest small savings schemes quarterly rate review, Aditi Nayar, Chief Economist and Head - Research and Outreach ICRA said, “As expected, small savings interest rates have been hiked by 10-70 basis points across various instruments. This should help to garner steady deposits in the coming quarter, in light of the expected rate hike from the RBI Monetary Policy Committee in April 2023, which would subsequently get transmitted to bank deposit rates.”

The interest rates on these schemes are reviewed every quarter. In the last quarterly review on December 30, 2022, the interest rates on many of these schemes were hiked by as much as 20 – 110 basis points (applicable for the January-March 2023 quarter). This had been preceded by a modest hike across a few schemes in the September 29, 2022 review.

The small savings schemes are popular as a low-risk investment option given their government backing. The money garnered under these schemes is used by the central government to finance its fiscal deficit.

MAULIK MADHU

Important points or check list for GST compliances for the year end closing - Financial year 2022-2023 by Rajeev Jain Tax Management India.com

 

Important points or check list for GST compliances for the year end closing - Financial year 2022-2023

By: Rajeev Jain March 28, 2023 All Articles by: Rajeev Jain       View Profile

Contents Compliances under the GST now are requiring a very higher level of attention. Taxpayers have to ensure their vendors compliances also apart from their own compliances, for which implementation of information technology, keep updating themselves, implementation of good internal controls, training to indirect taxes team on regular basis and introduction of SOPs with respect to indirect taxes must be necessary. Some of the compliances required before the closing of financial year 2022-2023 are given below. This will also helpful and useful during preparation of annual return GSTR 9 & 9C. Further GST returns for a Financial Year can be amended with below corrections or deletions or modification latest by 30th November 2023, i. e. GST returns for the month of October 2023. S. No. Compliance check - Particulars Yes/No   File application for / renewal of LUT for FY 2023-24.     Any person who wishes to opt for composition scheme for financial year 2023-24 should file form CMP-02 on the common portal on or before 31st March 2023.     A registered person who has opted for composition scheme for FY 2022-23 should file FORM GSTR-4 on or before 30th April 2023.     Time limits to apply for QRMP scheme to opt-in or opt-out by 30th April 2023.     Exports proceeds e-BRC receipt within 9 months can be verified. If not eligibility of 'zero-rated supply' may be questionable.     Filing of application for refund claims. Time limit to be considered for the purpose of filing of refund application in view of Supreme Court decision on extension of time limit.     Track status of goods sent on job work or goods sent on approval whether all the goods have been received back within the due time period. If not received in time, invoice must be raised appropriately.     Verify year-end accrual/provision entries for transactions with related parties and evaluate the GST implications.     From 01.04.2021, HSN 6 digit level is mandatory where turnover is more than Rs. 5 Cr. Ensure correctness and display in tax invoice.     Obtaining GST registration in other States where supplies are made. Compliance with concept of fixed establishment, supply, etc.     Documentation of notices, letter cover, replies and responses, whether through mail  or RPAD in a separate correspondence file.     Reconciliations of Outward supplies as per books and GST returns (Books vs GSTR-1 vs GSTR-3B). Any amendments are required, if any to be made in the GST returns can be corrected.     Rate wise reconciliations - Books Vs GSTR-1 including tax under RCM as per books vs GSTR-3B for RCM.     Reconciliation of balance of credit and cash ledger as per GST portal with balance appearing in books.     Reconciliation of GSTR 2B Vs ITC Register as per books     Reconciliation of RCM paid matches with RCM ITC claimed, other than ineligible ITC.     Reconciliation of turnover and taxes HSN consolidated thru GSTR-1 Vs Books value.     E-Way bill reconciliation with GSTR-1. In case EWB not required against supply can be specifically re-confirmed.     Books inventory Vs physical inventory – evaluate whether any ITC reversal to be required, or may indicate accounting lapse and missed out ITC.     Reconciliation of E-Invoices issued during the year viz a viz tax invoices generated.     Verification, if any of GST Debit Note or  Credit Notes to be issued for any value short/excess charged or any sales returns by the customer. Also verify discounts with the relevant agreements to be provided in the books and requirement to issue Credit Notes.     Verification towards compliance of section 18 (6) for transfers/sale of Plant & Machinery. Double ensure valuation in case of related party transactions.     Review of tax utilization entries passed in books of accounts vis a vis electronic liability ledger as per portal.     Review of creditors/debtors ageing report - Tax implication on customers/vendors, i.e., their ITC would not be eligible until payment and MSME non-compliance.     Amendments to GSTR-1 - Changing the outward supplies from B2C to B2B or the type of tax - Passing on the credit to the customers before time limit. Standard instruction can be issued that ‘changes not accepted beyond FY end’.     Ensure tax liability against receipt of advances (towards services) and adjustment thereof to derive at unadjusted advances.     Cross charge to distinct person and related parties for supply of common services.     Verify CGST/SGST paid instead of IGST and vice-versa. Understand if sec 77 (CGST Act) / sec 19 (IGST Act) would be applicable. However there will be no interest implication.     Check and verify other income, whether liable/not liable under GST. Tax position to be clear.     To verify that ITC with respect to Credit notes, if any issued would be considered as reversed.     To verify whether ITC has been reversed on entries passed due to writing off inventories, assets, theft, samples, destruction, obsolete, etc.     Rule 37 - Check for ITC reversal required on account of non-payment within 180 days or reclaim of any ITC in respect of supplies for which payment has been made. [Recently clarified ITC reversal in table 4B]     Check timing of availment of input tax credit on receipt of goods or service or both, Section 16, RCM credits, credit on advances ineligible etc.     Expense for which ITC not accounted, can be identified through GSTR 2B.     Accounting of input tax credit where details are not reflecting in GSTR 2B. Create Deferred Input Tax Credit account and re-evaluate before October of coming year. Also consider charge to vendor and passing of as expenses.     Rule 42 - Impact of annualized ITC reversal in case of exempted as well as taxable supplies to be considered. Re-computation is needed. Recently it has clarified that duty scrips not be considered as exempt supply for such computation including Rule 43.     Rule 43 - Computation for capital goods as per formula. If performed like Rule 42 impact to be analysed.     To verify the correctness of accounting treatment of capital assets prior to closure of books, in order to optimize input tax credits. Example Building Vs Plant & Machinery, Motor Vehicles eligibility; civil works with respect to plant & machinery Vs other civil works, etc.      Check if any reversal required against purchased goods rejected and returned or other credits to the expense ledgers. Also ensure the impact of the same has been considered in GST returns.     Verify compliance with ISD provisions. Where not done, whether cross charge can be complied to ensure procedural lapse only can be examined.     Check Input Tax Credit (CGST/SGST) availed as IGST or vice-versa.     Credit availed in a different GSTIN of the same assessee (PAN).     Eligibility of ITC: Re-verify ITC masters and conditions used for classification.     Vendor’s credit note reflected in GSTR 2B requiring reversal of Input tax credits. Although such tracking and verification is little harder.     Import of goods: BOE Vs ICEGATE Vs GSTR 2B: Check periodically to ensure no entry is missed out.       Check accounting of entries passed for transactions covered under reverse charge. Some systems do not allow compound entry in direct expenses e.g., Freight RCM.     Check and ensure RCM liability on foreign associated enterprises based on provision entry done in the books.     Analyze GST provisions by verifying expenses, such as Freight & transportation Payments. Recently FCM @ 5% allowed, Residential dwelling by commercial entities w.e.f 18.7.22, Advocate Payments - Legal Expenses, Security services (not applicable when provider is body corporate), Renting of motor vehicle from non-body corporates (Refer sl. 15 in GST Circular 177/09/2022 for clarity), Import of services (with or without consideration) (useful sources - Form 27Q & Form 15CA/CB), Sponsorship/Advertisement & marketing Fees & licences to various Governments (by CG/SG/LA only, various exemptions available in NN 12/2017-CTR).     Analyze GST on Section 9(4) expenses - Real estate sector only.   The author can be reached at "rajiv@rajivudai.com".   By: Rajeev Jain - March 28, 2023

HOW MANY OF YOU KNOW THAT PARTITION OF INDIA WAS DONE HOW MANY TIMES BY THE BRITISH RULE

 *Q: Partition of India was done how many times ?*

*Answer- SEVEN times in 61 years by the British rule.*

*Afghanistan was separated from India in 1876,*

*Nepal in 1904,*

*Bhutan in 1906,* 

*Tibet in 1907,* 

*Sri Lanka in 1935,* 

*Myanmar (Burma) in 1937* 

*and...* 

*Pakistan in 1947.*

*India's Partition of Akhanda Bharat*

Unbroken India extended from the Himalayas to the Indian Ocean and from Iran to Indonesia. India’s area in 1857 was 83 lakh square kilometers, which is currently 33 lakh square kilometers. From 1857 to 1947, India was fragmented many times by external powers. Afghanistan was separated from India in 1876, Nepal in 1904, Bhutan in 1906, Tibet in 1907, Sri Lanka in 1935, Myanmar in 1937 and Pakistan in 1947.

*Sri Lanka*

The British separated Sri Lanka from India in 1935. The old name of Sri Lanka was Sinhaldeep. The name Sinhaldeep was later renamed Ceylon. Sri Lanka’s name was Tamraparni during the reign of Emperor Ashoka. Mahendra, son of Emperor Ashoka and daughter Sanghamitra went to Sri Lanka to propagate Buddhism. Sri Lanka is a part of united India.

*Afghanistan*

The ancient name of Afghanistan was Upganasthan and Kandahar’s was Gandhara. Afghanistan was a Shaivite country. The Gandhara described in the Mahabharata is in Afghanistan from where the Kauravas’ mother was Gandhari and maternal uncle Shakuni. The description of Kandahar i.e. Gandhara is found till the reign of Shah Jahan. It was a part of India. In 1876 Gandamak treaty was signed between Russia and Britain. After the treaty, Afghanistan was accepted as a separate country.

*Myanmar (Burma)*

The ancient name of Myanmar (Burma) was Brahmadesh. In 1937, the recognition of a separate country to Myanmar i.e. Burma was given by the British. In ancient times, the Hindu king Anandavrata ruled here.

*Nepal*

Nepal was known as Deodhar in ancient times. Lord Buddha was born in Lumbini and mother Sita was born in Janakpur which is in Nepal today. Nepal was made a separate country in 1904 by the British. Nepal was called the Hindu nation of Nepal. Nepal was made a separate country in 1904 by the British. Nepal was called as Hindu Rashtra Nepal. Until a few years ago, the king of Nepal was called Nepal Naresh. Nepal has 81 percent Hindus and 9% Buddhists. Nepal was an integral part of India during the reigns of Emperor Ashoka and Samudragupta. In 1951, Maharaja Tribhuvan Singh of Nepal appealed to the then Prime Minister of India, Pandit Jawaharlal Nehru to merge Nepal with India, but Jawaharlal Nehru rejected the proposal.

*Thailand*

Thailand was known as Syam until 1939. The major cities were Ayodhya, Shri Vijay etc. The construction of Buddhist temples in Syam began in the third century. Even today many Shiva temples are there in this country. The capital of Thailand Bangkok also has hundreds of Hindu temples.

*Cambodia*

Cambodia is derived from the Sanskrit name Kamboj, was part of unbroken India. The Kaundinya dynasty of Indian origin ruled here from the first century itself. People here used to worship Shiva, Vishnu and Buddha. The national language was Sanskrit. Even today in Cambodia, the names of Indian months such as Chet, Visakh, Asadha are used. The world famous Ankorwat temple is dedicated to Lord Vishnu, which was built by the Hindu king Suryadev Varman. The walls of the temple have paintings related to the Ramayana and the Mahabharata. The ancient name of Ankorwat is Yashodharpur.

*Vietnam*

The ancient name of Vietnam is Champadesh and its principal cities were Indrapur, Amravati and Vijay. Many Shiva, Lakshmi, Parvati and Saraswati temples will still be found here. Shivling was also worshiped here. The people were called Cham who were originally Shaivites.

*Malaysia*

The ancient name of Malaysia was Malay Desh which is a Sanskrit word which means the land of mountains. Malaysia is also described in Ramayana and Raghuvansham. Shaivism was practiced in Malay. Goddess Durga and Lord Ganesha were worshiped. The main script here was Brahmi and Sanskrit was the main language.

*Indonesia*

The ancient name of Indonesia is Dipantar Bharat which is also mentioned in the Puranas. Deepantar Bharat means the ocean across India. It was the kingdom of Hindu kings. The largest Shiva temple was in the island of Java. The temples were mainly carved with Lord Rama and Lord Krishna. The Bhuvanakosh is the oldest book containing 525 verses of Sanskrit.

The names or motos of the leading institutions of Indonesia are still in Sanskrit :

Indonesian Police Academy – Dharma Bijaksana Kshatriya

Indonesia National Armed Forces – Tri Dharma Ek Karma

Indonesia Airlines – Garun Airlines

Indonesia Ministry of Home Affairs – Charak Bhuvan

Indonesia Ministry of Finance – Nagar Dhan Raksha

Indonesia Supreme Court – Dharma Yukti

*Tibet*

The ancient name of Tibet was Trivishtam which was divided into two parts. One part was given to China and the other to Lama after an agreement between the Chinese and the British in 1907. In 1954, India’s Prime Minister Jawaharlal Nehru accepted Tibet as part of China to show his solidarity to Chinese people.

*Bhutan*

Bhutan was separated from India by the British in 1906 and recognized as a separate country. Bhutan is derived from the Sanskrit word Bhu Utthan which means high ground.

*Pakistan*

There was partition of India on August 14, 1947 by the British and Pakistan came into existence as East Pakistan and West Pakistan. Mohammad Ali Jinnah had been demanding a separate country on the basis of religion since 1940 which later became Pakistan. In 1971 with the cooperation of India Pakistan was divided again and Bangladesh came into existence. Pakistan and Bangladesh are parts of India.

CBDT EXTENDS THE DATE OF LINKING PAN WITH AADHAR TILL 30TH JUNE 2023

 CBDT has extended the deadline to link PAN with Aadhaar for the fifth time on Tuesday.

Date for linking PAN and Aadhaar has been extended to 30th June 2023 with fee Rs 1000

After 30^th June 2023: Non-filing of return will attract a penalty up to Rs 10,000

Link to check whether your PAN is Link with Aadhar :https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar

Consequences of Non-Linking of PAN with Aadhar:

“Inoperative” PAN – If a person fails to link Aadhar with PAN then such PAN is marked as inoperative/Invalid after June 30, 2023.

Other Penalties & consequences- 

Once PAN become inoperative/invalid person will become liable under various other provisions of Act as below:

·         Non filing Return of Income-Taxpayers will not be allowed to furnish the return of income before linking. Non-filing of return will attract a penalty up to Rs 10,000/- U/s 234F of Income Tax Act 1961.

·         Non-Compliance of Section 139A– It is mandatory to quote PAN for certain financial transactions as per section 139A.

·         If the PAN is not linked it will become inoperative/invalid and this would result in non-compliance with the provisions of Section 139A which would attract a penalty up to Rs 10,000/- u/s 272B.

·         Interest for late filing of Return of Income – Taxpayers will not be allowed to furnish the return of income before linking. Defaults in furnishing return will attract interest u/s 234A, 234B, and 234C.

·         Higher TDS – TDS would be deducted at a higher rate if the PAN is not furnished by the payee U/s 206AA of the Income Tax Act.

·         Higher TCS –  TCS would be collected at a higher rate U/s 206CC if the PAN is not furnished Can Inoperative

PAN become again Operative? YES. The PAN can be made operative by linking it with Aadhaar on payment of prescribed fee /penalty. PAN will again become operative from the date of linking/intimation of the Aadhaar Number. But the penalty/fees u/s 234H shall be levied when the person will link/intimate the Aadhar after it becomes inoperative

Following categories are exempted from Aadhaar-PAN linking

(i) NRIs

(ii) Not a citizen of India

(iii) age > 80 years as on date

(iv) state of residence is ASSAM, MEGHALAYA or JAMMU & KASHMIR

SEBI takes 16 major decisions in board meet: Key takeaways for Dalal Street :-ET March 29,2023

 In its board meeting today, the Securities and Exchange Board of India (SEBI) took a slew of decisions aimed at safeguarding the interests of investors as well as strengthening the market infrastructure to deal with dislocations.

While elaborating on the decisions taken by the regulator in a press conference, SEBI Chairperson Madhabi Puri Buch also responded to questions raised on the Adani Group issue.

Here are the major takeaways for Dalal Street from the announcements by SEBI:

Adani Issue

Buch said it would not be appropriate to comment on a single entity especially when the matter is subjudice, and that it will submit an investigation report on the issues surrounding the group to the Supreme Court.

Disclosure Norms

* SEBI is introducing a quantitative threshold for determining ‘materiality’ of events or information.

* Within 30 minutes of the board meeting, a listed entity must disclose “material information” from the meeting, and all the material information within 12 hours.

* With effect from October 1, 2023, the top 100 listed companies by market capitalization must provide clarification and confirmation on market rumours. For the top 250 listed entities, the rule will be applicable from April 1, 2024.

* Periodic approval of shareholders required for any director serving on the board of a listed entity in order to do away with the practice of permanent board seats.

* Companies must fill up the vacancy of directors, compliance officer, chief executive officer and chief financial officer within a period of 3 months from the date of such vacancy

Mutual Funds

* SEBI to amend mutual fund regulations to provide clarity on the roles and responsibilities of Trustees and board of asset management companies.

* SEBI allows private equity funds as sponsors of mutual funds. This is aimed at giving greater flexibility to the industry and enabling a diverse set of entities to become sponsors of MFs

Corporate Debt Market

* SEBI to set up “Corporate Debt Market Development Fund” (CDMDF) to act as a “backstop” facility to purchase investment grade corporate debt securities in times of stress

* CDMDF, based on a guarantee to be provided by National Credit Guarantee Trust Company (NCGTC), may raise funds to purchase corporate debt securities during market dislocation.

* SEBI has also extended the period of compliance for Large Corporates to raise 25% of their incremental borrowings through the debt market to a contiguous block of 3 years instead of the current 2 years

* SEBI has extended the ‘comply or explain’ period for High Value Debt Listed Entities (HVDLEs) with respect to corporate governance norms till March 31, 2024.

ESG disclosures, ratings, investments

* On Environment Social and Governance (ESG) disclosures, SEBI has mandated introduction of BRSR (Business Responsibility and Sustainability Report) Core to enhance the reliability of disclosures.

*. The BRSR will contain a limited set of Key Performance Indicators (KPIs), for which listed entities will be required to obtain “reasonable assurance”.

* ESG Rating Providers (ERPs) will be required to consider India/emerging market parameters in ESG ratings considering that emerging markets have a different set of environmental and social challenges

* ESG schemes will be required to invest at least 65% of AUM in listed entities, where assurance on BRSR Core is undertaken.

Stock Broker Regulations

* Introduction of a framework to provide for an institutional mechanism for prevention and detection of fraud or market abuse by stock brokers

* The approved amendments will come into effect from October 1, 2023.

Regulatory Framework for Index Providers

* SEBI to regulate Index Providers to foster transparency and accountability in governance and administration of financial benchmarks in the securities market

* Providers of all indices that are used in India, including MSCI, will fall under SEBI norms.

Alternative Investment Funds

* SEBI will provide guidance to Alternative Investment Funds (AIFs) towards a consistent and standardised approach for valuation of their investment portfolios.

* To protect investors against operational risks and fraud, SEBI has mandated AIFs to dematerialise all units for all new schemes and existing schemes with a corpus of more than Rs 500 crore by October 31

* Existing schemes of AIFs with corpus less than Rs 500 crore shall dematerialise their units by April 30, 2024.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Read more at:
https://economictimes.indiatimes.com/markets/stocks/news/sebi-takes-16-major-decisions-in-board-meet-key-takeaways-for-dalal-street/articleshow/99095396.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

H-1B visa-holders' spouses can work in US, says judge :-ET March 29,2023

 

Big technology companies won a major court victory in Washington, where a judge dismissed a suit challenging the rights of highly skilled H-1B visa holders’ spouses to work in the US. US District Judge Tanya Chutkan on Tuesday issued a decision upholding the Obama-era rule under which the U.S. Department of Homeland Security has issued H-4 visas to the spouses of hundreds of thousands of H-1B workers in the US, 70% of whom hold science and engineering jobs in the tech sector.

Amazon.com Inc., Apple Inc., Google, Microsoft Corp. were among the companies who urged the judge to let the rule stand.

The ability of H-1B holders’ spouses to also get jobs in the US has been a major attraction for highly skilled foreign workers, the tech companies have argued.

In her ruling, Chutkan rejected arguments by Save Jobs USA, a group representing Southern California Edison computer professionals who said they had been replaced by H-1B visa-holders. Save Jobs had claimed Homeland Security wasn’t legally permitted to put the rule in place and sought to eliminate work authorizations for more than 90,000 new H-4 visa holders.

Read more at:
https://economictimes.indiatimes.com/nri/work/h-1b-visa-holders-spouses-can-work-in-us-says-judge/articleshow/99097066.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst