ED raids offices of 34 chartered accountants in New Delhi

Image result for CAThe Enforcement Directorate (ED) is carrying out a first-of-its-kind raids in New Delhi on the offices of professionals like chartered accountants and company secretaries for allegedly providing a legitimate cover to shell companies.

Image result for cs logoThe CAs and CSs are accused of helping shell companies convert black money in to white. They allegedly help shell companies by providing a legal framework for the paper companies. The raids follow notices that were earlier issued.

On Wedesnday, the ED was raiding the offices of 34 CAs in the Jain brothers case who were arrested last month in action against shell by the ED.

According to a report by PTI, the agency had arrested Surendra Kumar Jain and Virendra Jain and were later sent to 10 days custody after being produced in front of a court.

The ED, at the time said in a statement that “the modus operandi of Jain brothers was to launder the unaccounted money through the process of palcement of funds, layering of transactions and teh final integration of laundering money into the banking channel camouflaged as legitimate share premium transactions.

“Funds were brought in by the mediators on behalf of the beneficiaries through the mediators. Jain Brothers were providing accommodation entries by accepting funds from their beneficiaries through mediators and converting the same into share premium transactions in the beneficiary company. In this process Jain Brothers earned money as a certain percentage of the unaccounted money converted into share premium,” it added.

The ED also said, “during probe of some other firms ‘controlled’ by these brothers, it has emerged that during a “short period of three months between the opening and closing of the accounts of these companies, there was credit and debit summations to the tune of Rs 8,000 crore.”

List of valid e-wallets and pre-paid cards Banks

List of banks permitted to issue pre-paid cards in India as on March 03, 2017
S No. Name of the Banks
1 Airtel Payments Bank Ltd.
2 Allahabad Bank
3 American Express Banking Corporation
4 Andhra Bank
5 Au Small Finance Bank Limited
6 Axis Bank Limited
7 Bank of Baroda
8 Bank of India
9 Bank of Maharashtra
10 Barclays Bank PLC
11 Canara Bank
12 Central Bank of India
13 Citi Bank N.A.
14 City Union Bank Ltd.
15 Corporation Bank
16 DBS Bank Ltd.
17 Dena Bank
18 DCB Bank Ltd.
19 Equitas Small Finance Bank Limited
20 First Rand Bank
21 HDFC Bank Limited
22 ICICI Bank Limited
23 IDBI Bank Ltd.
24 Indian Bank
25 Indian Overseas Bank
26 IndusInd Bank Limited
27 Karnataka Bank Ltd.
28 Karur Vysya Bank Ltd.
29 Kotak Mahindra Bank Ltd.
30 Lakshmi Vilas Bank Ltd.
31 Oriental Bank of Commerce
32 Paytm Payments Bank Limited
33 Punjab National Bank
34 Punjab & Sind Bank
35 South Indian Bank Ltd.
36 Standard Chartered Bank
37 State Bank of Bikaner & Jaipur
38 State Bank of Hyderabad
39 State Bank of India
40 State Bank of Mysore
41 State Bank of Patiala
42 State Bank of Travancore
43 Syndicate Bank
44 Tamilnad Mercantile Bank Ltd.
45 The Dhanlaxmi Bank Limited
46 The Federal Bank Limited
47 The New India Co-operative Bank Ltd
48 The Ratnakar Bank Ltd.
49 UCO Bank
50 Union Bank of India
51 Vijaya Bank
52 Yes Bank Ltd.

Enhancement of withdrawal limits from ATMs and Current Accounts

RBI/2016-17/213 DCM (Plg) No.2559/10.27.00/2016-17

January 16, 2017

The Chairman / Managing Director / Chief Executive Officer, Public Sector Banks / Private Sector Banks / Foreign Banks / Regional Rural Banks / Urban Co-operative Banks /
State Co-operative Banks /District Central Co-operative Banks

Dear Sir,

Enhancement of withdrawal limits from ATMs and Current Accounts

Please refer to our circulars DCM (Plg) No. 1274, 1317, 1437 and 2142/10.27.00/2016-17 dated November 14, 21 and 28 and December 30, 2016, respectively, on the above subject.

2. On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same, with immediate effect as under:

(i) The limit on withdrawals from ATMs has been enhanced from the current limit of ₹ 4,500/- to ₹ 10,000/- per day per card (It will be operative within the existing overall weekly limit).

(ii) The limit on withdrawal from current accounts has been enhanced from the current limit of ₹ 50,000/- per week to ₹ 1,00,000/- per week and it extends to overdraft and cash credit accounts also.

3. There are no changes in the other conditions. The relaxations as provided in our circular dated November 28, 2016 will continue.

4. Please acknowledge receipt.

Yours faithfully,

(P Vijaya Kumar)
Chief General Manager

Aadhaar Payment App -Government Initiative

The government is coming up with an ‘Aadhaar Payment App’ that could silence digital payments critics. The new app would do away with plastic cards and the point of sale machines once believed to be essential for a less cash society.Related image

The app would eliminate the fee payments for service providers like card companies such as Mastercard or Visa, which has been a stumbling block in merchants switching to digital payments making it affordable to even merchants in remote villages. All that it needs is an Android phone with the merchant.

Merchants need to download the Aadhaarcashless merchant app on their smartphones connected to a biometric reader, which is currently available for Rs 2,000. The customer will then feed his or her Aadhar number into the app, select the bank through which the transaction will take place, and the biometric scan will work as a password for the transaction to be authenticated. “This app can be used by a person to make payments without any phone,” Unique Identification Authority of India (UIDAI) CEO Ajay Bhushan Pandey told ET. “Almost 40 crore Aadhaar numbers already stand linked to bank accounts – that is half the adults in India. The aim is to link all Aadhaar numbers with bank accounts by March, 2017.”

Furthermore, the lack of connectivity made it impossible for millions of merchants in the hinterland to adapt the card payment methods. There are over 15 lakh such machines for a population of 125 crore and nearly 5 crore merchants. If the 1.5 lakh bank branches in the country register even 20-25 merchants in their vicinity, it could boom.

Interest Subvention Scheme for Short Term Crop Loans during the year 2016-17

FIDD.No.FSD.BC. 19/05.04.02/2016-17

December 26, 2016

The Chairman / Managing Director
All Public & Private Sector Scheduled Commercial Banks

Dear Sir/Madam

Interest Subvention Scheme for Short Term Crop Loans during the year 2016-17- Grant of grace period of 60 days beyond due date

As you are aware the Government of India (GoI) has been implementing the Interest Subvention Scheme (the Scheme) since 2006-07. In terms of the extant Scheme for the year 2016-17 besides subvention of 2% per annum, an additional interest subvention of 3% is also provided to prompt payee farmers from the date of disbursement of the crop loan upto the actual date of repayment by farmers or upto the due date fixed by banks for repayment of crop loans whichever is earlier subject to a maximum period of one year from the date of disbursement. This benefit does not accrue to those farmers who repay after one year of availing such loans.

2. In view of the constraints faced by farmers for timely repayment of loan dues on account of withdrawal of legal tender status of Specified Bank Notes (SBNs) and the subsequent notification No. DBR.No.BP.BC.37/21.04.048/2016-17 dated November 21, 2016 issued by RBI, it has been decided by the GoI to provide an additional grace period of 60 days for prompt repayment incentive of 3% to those farmers whose crop loan dues are falling due between 1st November, 2016 and 31st December, 2016 if such farmers repay the same within 60 days from the above period. As regards asset classification and other prudential norms are concerned, the extant RBI guidelines, including the circular dated November 21, 2016 will continue to apply.

3. Banks may give adequate publicity to the above so that the farmers can avail the benefits.

4. Banks may consider the above while submitting their one-time consolidated 3% additional subvention claims pertaining to the disbursements made during the entire year 2016-17.

Yours faithfully,

(Uma Shankar)
Chief General Manager

Taxation Laws (Second Amendment) Act, 2016

The Taxation Laws (Second Amendment) Act, 2016 has come into force on 15th December, 2016. The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (the Scheme) introduced vide the said Act shall commence on 17th December, 2016 and shall remain open for declarations up to 31st March, 2017. The rules in this regard have been notified vide Notification No.116 dated 16th December, 2016 and have been placed in public domain. A separate notification has been issued for Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 by Department of Economic Affairs.

Click here to read full notification. | THE TAXATION LAWS (SECOND AMENDMENT) ACT, 2016

6% Profit assumed for Income Tax Calculation For Small Traders

Finance minister Arun Jaitley on Tuesday (20.12.2016) said the government’s decision to tweak the presumptive income norms would reduce the tax liability by up to 30 per cent for those small traders opting for digital transactions.

Key Points

  • Small traders and businessmen, with turnover of up to Rs 2 crore can now save tax if they choose to go digital.
  • It would also achieve the government’s mission of moving towards a less cash economy
  • The decision has been taken to incentive’s small traders/businesses to proactively accept payments by digital means.

Income TaxHe said in the Budget for 2016-17, small traders and businessmen, with turnover of up to Rs 2 crore who did not maintain proper accounts, were presumed to have earned 8 per cent income or profit for tax purposes. But if they use digital mode of payments, their income will now be presumed to be 6 per cent of the turnover and not 8 per cent.

Under the existing Section 44AD of the Income-Tax Act, 1961, in case of certain assessees (an individual, HUF or a partnership firm other than LLP) carrying on any business having a turnover of Rs 2 crore or less, the profit is deemed to be 8 per cent of the total turnover for taxation.