- INCOME TAX DEPARTMENT MAY SEEK FIRST RIGHT ON RECOVERY OF DUES UNDER IBC: At present the recovery of tax dues is possible only after payment to financial creditors under the Insolvency and Bankruptcy Code (IBC). The Income Tax Department is likely to request the Ministry of Corporate Affairs under which the IBC falls, to intervene so that the tax dues get a higher priority over the dues of the Financial Creditors.
- E-FILING OF INCOME TAX RETURNS RISES BY 65%: As per the data released by Central Board of Direct Taxes (CBDT), there is a robust growth in taxpayers filing e-returns as it has grown by 65% between April-September as compared to the e-returns filed during the same period last year. The e-returns are being filed even after the deadline for filing income tax returns ended on August 31ST. Moreover, the average tax paid by an individual filer has touched a little over Rs.35,000/-.
- RBI ALLOWS BANKS FOR FIRE AUDIT OF CURRENCY CHESTS BY APPROVED AGENCIES: Reserve bank of India has relaxed the norms for Fire Audit of Currency Chests by allowing banks to get the fire audit done from approved agencies in case of shortage of staff at District Fire Offices. Banks maintaining currency chests are required to get fire audit done once in every two years. Since RBI has been receiving various references from banks about non-availability of staff in State/District Fire Departments for getting the periodical fire audit done, RBI in its recent notification, has allowed banks to get the fire audit done by agencies approved by the respective State/District Fire departments.
- GOVERNMENT EXPECTS NPA RECOVERIES TO CROSS 1.80 TRILLION IN FINANCIAL YEAR 2019: Due to the positive impact of the newly introduced Insolvency and Bankruptcy Code (IBC), the government expects the recoveries of Non-Performing Asset (NPAs) or the bad loans to exceed Rs 1.80 trillion target set for the current financial year 2019. Some big accounts are in the process of getting resolved while some more are lined up for resolution under IBC.
- RBI GIVES LICENCE TO KIRLOSKAR CAPITAL: At a time when the whole of Non-Banking Financial sector is going through lot of liquidity crunch and crisis of confidence, Reserve bank of India has given license to Kirloskar capital for its lending business. Kirloskar Oil Engines Ltd Executive Chairman Mr. Atul Kirloskar has said that they are venturing in to this lending activity as they are seeing a lot of opportunities in financial services and are willing to commit Rs. 1,000 crores of capital over the next three years. The initial focus will be on lending to small and Medium sized enterprises. Kirloskar Group has more than 30,000 retailers and about 1,000 dealers who will be leveraged especially for SME loans.
- IDFC BANK SELLS Rs. 2,400 CRORE NPAs TO EDELWEISS ASSET RECONSTRUCTION COMPANY: IDFC Bank has sold more than Rs. 2,400 crores of Non-Performing Assets to Edelweiss Asset Reconstruction Company for Rs. 622.6 crore, a loss of 75% on the exposure. IDFC Bank has done this as it intends to clean up its books ahead of the pending merger with Non-Banking Finance Company—Capital First.
- RBI AUTONOMY ESSENTIAL, NURTURED BY GOVERNMENT SAYS FINANCE MINISTRY: Amid reports of mounting tension between RBI and the government, the Finance Ministry has said the government respects and nurtures the autonomy of Reserve Bank of India and has been holding extensive consultations with it on many issues and the autonomy of RBI within the framework of RBI Act is essential in their functioning and have to be guided in the interest of the Public and Indian Economy. The statement by the government however did not mention of the reason of the government citing never-before-used power of issuing directions to RBI Governor to seek a resolution regarding the differences with the Central Bank. The government has sent at least 3 letters on different issues under Section 7(1) of RBI Act that gives the government powers to issue any direction to the Central bank Governor on matters of public interest.
This post first appeared on IMPACT OF DEMONITIZATION OF CURRENCY IN INDIA IN 2016, please read the originial post: here
