Declaration of Black Money by Tax Payers



Declaration of Black Money by Tax Payers

There is no official estimation of percentage of black money held in India in cash.

In the last financial year (2015-16) 648 disclosures involving undisclosed foreign assets worth Rs.4164 crore were made in the one-time three months’ compliance window ending 30th September 2015, under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The amount collected by way of tax and penalty in such cases was about Rs.2476 crore.


            The Government has taken several measures to effectively tackle the issue of black money, particularly black money stashed away abroad. Such measures include policy-level initiatives, effective enforcement actions on the ground, putting in place robust legislative and administrative frameworks, systems and processes with due focus on capacity building and integration and mining of information through increasing use of information technology. Recent major initiatives in this regard include:

(i) Constitution of the Special Investigation Team (SIT) on Black Money under Chairmanship and Vice-Chairmanship of two former Judges of Hon’ble Supreme Court,

(ii)  Constitution of  Multi-Agency Group (MAG) consisting of officers of Central Board of Direct Taxes (CBDT), Reserve Bank of India (RBI), Enforcement Directorate (ED) and Financial Intelligence Unit (FIU) for investigation of recent revelations in Panama paper leaks,

(iii) Proactive engagement with foreign governments to facilitate and enhance the exchange of information under Double Taxation Avoidance Agreements (DTAAs)/Tax Information Exchange Agreements (TIEAs)/Multilateral Conventions and furthering global efforts to combat tax evasion/black money, inter alia, by joining the Multilateral Competent Authority Agreement in respect of Automatic Exchange of Information (AEOI) and having information sharing arrangement with USA under its Foreign Account Tax Compliance Act (FATCA),

(iv)  Enactment of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015’ to specifically and more effectively deal with the issue of black money stashed away abroad,

(v)  Enabling attachment and confiscation of property equivalent in value held within the country where the property/proceeds of crime is taken or held outside the country by amending the Prevention of Money-laundering Act, 2002 through the Finance Act, 2015,

(vi)  According high priority to the cases involving black money stashed away abroad for investigation and other follow-up actions including prosecutions in appropriate cases.

 ******
Deposits made in Jan Dhan bank accounts after the demonetisation of currency in Nov. 2016

Following demonetization of specified bank notes on 8th November 2016, the Income Tax Department (ITD) has collected information of cash deposits in bank accounts, including Jan Dhan accounts. Such information has been compared with the profile of the persons based upon the information available in the data base of ITD. Based upon the analysis more than 5100 notices for verification of cash deposits in banks during the period from 9th November, 2016 to 10th January, 2017 including those in dormant and Jan Dhan accounts, have been issued. More than 1,100 search & seizure and survey actions have also been conducted, which led to seizure of valuables of more than Rs. 610 crore including cash of Rs. 513 crore. New currency of more than Rs 110 crore is part of the cash seizure. The undisclosed income detected in these actions (as on 10th January 2017) was more than Rs. 5,400 crore. Appropriate cases have been referred to Enforcement Directorate and CBI for necessary action.

A number of other measures have also been taken under ‘Operation Clean Money’ initiated by the ITD on 31st January 2017. Such measures include collection of information on cash transactions, collation and analysis of such information, extensive use of information technology and data analytic tools for identification of high risk cases, expeditious verification of suspect cases and enforcement action in appropriate cases, which include searches, surveys, enquiries, assessment of income, levy of taxes, penalties, etc. and filing of prosecution complaints in criminal courts, wherever applicable.

*****
Monitoring system in NSE and BSE trading

As per the information provided by Securities and Exchange Board of India (SEBI), the total number of investor account with both the depositories viz. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), as on 31st December, 2016, is 2,70,55,717 with a demat custody value of Rs. 2,82,81,225 crores. (one person can open multiple demat accounts).



            Further, the total annual turnover at National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for the Financial Year 2016-17 stood at Rs. 39,75,484 crores and Rs. 6,34,934 crores respectively (upto 27th January, 2017). As on 27th January, 2017, the total Market Capitalisation at NSE and BSE is Rs. 1,11,84,067 crores and Rs. 1,13,87,346 crores respectively.



            There are a number of provisions in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) pertaining to submission of financial results so as to ensure that companies submit accurate financial information. These include submission of the financial results by listed companies in the prescribed formats to ensure uniformity in disclosures, certifying that the financial results do not contain any false or misleading information, timely submission of the audit reports to the stock exchange(s) by certified auditor alongwith a statement on the impact of any Audit Qualifications raised by the Auditors on financial results, preparation of financial results as per Generally Accepted Accounting Principles, etc.



            Government, SEBI and Stock Exchanges maintain constant vigil in the market, and in case of any abnormality, take appropriate action against the concerned entities. In order to enable investors to make well-informed investment decisions, various comprehensive disclosure requirements on a continuous basis have been prescribed under Listing Regulations to ensure timely, adequate and accurate disclosure of information to the investors. Certain disciplinary actions have also been prescribed under Listing Regulations for violation of these provisions including imposition of fines and freezing of promoter holdings. Further, SEBI conducts investor education and awareness activities across the country, to enable investors take informed investment decisions.

*****
Promotion of MSME Sector



The details of Gross Non-Performing Assets (GNPAs) and GNPA ratio to large industries and Corporate Sector and MSE Sector during the last fifteen years is as per details given below.



Year Ended
NPA in MSME (Priority Sector Only)
NPA Ratio
NPA in Large Industries
NPA Ratio
2002
22,392
18.25
14,587
13.63
2003
18,163
13.47
23,986
11.83
2004
19,022
11.30
15,920
9.03
2005
16,471
6.43
12,859
4.80
2006
10,956
5.94
9,676
2.81
2007
8,893
3.47
7,138
1.74
2008
8,633
2.52
6,336
1.14
2009
10,896
3.14
9,437
1.21
2010
15,629
3.36
14,058
1.51
2011
19,480
3.32
16,631
1.43
2012
25,991
3.22
27,678
1.94
2013
36,046
4.40
55,587
3.10
2014
48,338
4.71
99,475
4.80
2015
61,914
5.28
1,27,305
5.64
2016
1,22,667
8.77
3,03,898
11.75
  Source: RBI
Further, the following measures has been taken by Government /RBI to enhance credit flow to the  Micro, Small and Medium Enterprises (MSME) sector:



i) Under Priority Sector Lending (PSL) a target of 7.5 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Scheduled Commercial Banks (SCBs) for lending to Micro Enterprises.



ii) Computation of working capital requirements of MSE units to be done by banks on the basis of simplified method of minimum 20% of the projected annual turnover of the unit for borrowal limits up to Rs.5 crore.



iii) A Standing Advisory Committee has been constituted by the Reserve Bank of India, with Deputy Governor as Chairman, officials of Ministry of Micro, Small and Medium Enterprises, Banks and Associations as members to discuss issues concerning of Micro, Small and Medium Enterprises.



iv) Public Sector Banks were advised in August, 2005 to operationalise at least one specialized MSE branch in every district and centre having a cluster of MSE enterprises. As on March 31, 2016, there were 2864 specialised MSE branches.



v) SCBs have been mandated not to accept collateral security in the case of loans upto Rs.10 lakh extended to units in the MSE sector. Banks have also been advised to strongly encourage their branch level functionaries to avail of the Credit Guarantee cover, including making performance in this regard a criterion in the evaluation of their field staff.



vi) In terms of the recommendations of the Prime Minister’s Task Force on Micro, Small and Medium Enterprises (MSMEs) constituted by the Government of India, all Scheduled Commercial Banks (SCBs) have been advised on June 29, 2010 as under:



i)   Achieve a 20 per cent year-on-year growth in credit to micro and small enterprises to ensure enhanced credit flow;

ii)   Allocate 60% of the MSE advances to the micro enterprises and

iii)  Achieve a 10% annual growth in number of micro enterprise accounts.

vii) Banks have been advised that they should mandatorily acknowledge all loan applications, submitted manually or online, by their MSME borrowers and ensure that a running serial number is recorded on the application form as well as on the acknowledgement receipt. Banks are further encouraged to start Central Registration of loan applications.

viii) The Banking Codes and Standard Board of India (BCSBI) formulated a Code of Bank's Commitment to Micro and Small Enterprises in 2008. The new code 2015 has reduced the time frame for disposal of loan applications.

ix) In order to solve the problem of delayed payment to MSMEs, RBI has come out with the guidelines for setting up and operating the Trade Receivables Discounting System (TReDS). The scheme is for setting up and operating the institutional mechanism to facilitate the financing of trade receivables of micro, small and medium enterprises (MSMEs) from corporate and other buyers, including government departments and public sector undertakings (PSUs) through multiple financiers.

x) All Scheduled Commercial Banks (excluding RRBs) have been advised in April 2014 that they should take into account the incentives available to them in the form of the credit guarantee cover of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and the zero risk weight for capital adequacy purpose for the portion of the loan guaranteed by the CGTMSE and provide differential interest rate for such MSE borrowers, than the other borrowers.

The Government has taken sector specific measures (Infrastructure, Power, Road, textiles, Steel etc.) where incidence of NPA is high to alleviate the existing stress in these sectors. The Insolvency and Bankruptcy code (IBC) has been enacted and Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and The Recovery of Debts due to Banks and Financial Institutions (RDDBFI) Act have been amended to improve resolution/recovery of bank loans. Six new Debt Recovery Tribunals (DRTs) have been established for improving recovery.

Further, RBI has taken a number of measures to improve the situation viz.  Corporate Debt Restructuring (CDR), Formation of Joint Lenders’ Forum (JLF), Flexible Structuring for long term project loans to Infrastructure and Core industries (5/25 Scheme), Strategic Debt Restructuring Scheme (SDR) and Sustainable Structuring of Stressed Assets (S4A).

********
Cess Collected For Swachh Bharat Abhiyan

    Total amount collected from Swachh Bharat Cess during 2015-16 and 2016-17 (April to December) [provisional figure was Rs.3925.74 Crore and Rs.7919.80 Crore respectively.

The following schemes were provided funds from Rashtriya Swachhata Kosh during 2015-16:
 (Rs. in crore)
 
Schemes

Actuals 2015-16
RE 2016-17
(i) Swachh Bharat Mission (Rural)
2400.00
10000.00
(ii) Swachh Bharat Mission (Urban)
159.42
2300.00
Total
2559.42
12300.00

Funds collected under the Cess are utilised for construction of individual household latrines, Community Sanitary Complexes, Solid and Liquid Waste Management, Information Education & Communication and Administrative expenses under Swachh Bharat Mission (Gramin).



            The funds released for projects under Swachh Bharat Mission Urban (SBM-Urban) are utilised for Individual Household Latrines, Community Toilet and Solid Waste Management. The levy will continue till repealed.

****
Gross Capital Formation for India



            The World Bank Group in its Report ‘South Asia Economic Focus Fall 2016’ titled ‘Investment Reality Check’ has indicated that in terms of annual growth rates, the Gross Capital Formation for India has not shown a steady trend.



            According to the World Bank Group, the drivers of this performance are the following global and domestic factors:-



• Global factors



(i)                 excess capacity globally as growth post the Financial crisis has disappointed; and

(ii)               increased uncertainty globally,especially with respect to the global trade outlook.



• Domestic factors



(i)                 deleveraging of Indian corporate,especially in the infrastructure and transport sectors;

(ii)               (ii) delayed impact of structural reforms such as improvement of ease of doing business,implementation of GST, and crowding-in by public investments; and

(iii)             (iii) difficulty in land acquisition.



            The Government has taken various initiatives to strengthen investment and economic growth which, inter alia, include; fillip to manufacturing and infrastructure through fiscal incentives and concrete measures for transport, power, and other urban and rural infrastructure; reforms and liberalization of foreign direct investment in major sectors; measures to debottleneck the supply of key raw materials etc. Initiatives like Digital India, Make in India and Start-up India have been launched to boost entrepreneurship. The efforts to simplify business and investment-related clearances and fast-track governance reforms have helped India to improve its status as an investment destination. In addition, many other initiatives like launching of Micro Units Development and Refinance Agency Ltd. and “Stand up India Scheme” to promote entrepreneurship among SC/ST and women entrepreneurs have been also launched. The implementation of scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector that aims to make Indian capital goods industry globally competitive will help reviving the capital goods sector, and thereby investment. The National Policy on Capital Goods Sector, approved by the Cabinet in May 2016, that envisages making India one of the top capital goods producing nations of the world by increasing production, raising exports and improving technology to advanced levels is also likely to strengthen domestic investment.



            The Government has also announced various measures in the Budget 2017-18 to promote growth and investment (Gross Capital Formation) which, inter alia, include push to infrastructure development by giving infrastructure status to affordable housing, higher allocation to highway construction, focus on coastal connectivity and taking up second phase of Solar Park. The other measures that can have a positive bearing on investment include: lower income tax for companies with annual turnover up to Rs 50 crore; allowing carry-forward of MAT credit up to a period of 15 years instead of 10 years at present; further measures to improve the ease of doing business; and, major push to digital economy.

 *******
ATM operational by PSUs

The ATM network is 100% interoperable. The number of ATMs of the Public Sector Banks are given in Table below. As per notification dated 14.8.2014 issued by the Reserve Bank of India the number of free transactions (financial and non-financial) on ATMs is:

(i)  3 in case of OFF-US ATMs in metro cities

(ii) 5 in case of OFF-US ATMs in non-metro areas and

(iii) 5 in case of ON-US ATMs

OFF-US transactions are those where customer of one bank uses the ATM of another bank.

ON-US transactions are those where customer uses his / her own bank’s ATM.

Table showing the bank wise number of ATMs deployed
Sr. No.

Bank Name
ATMs

On-site
Off-site
Total


1
2
 3

1
ALLAHABAD BANK
806
415
1221

2
ANDHRA BANK
3000
803
3803

3
BANK OF BARODA
6257
4206
10463

4
BANK OF INDIA
3436
4365
7801

5
BANK OF MAHARASHTRA
1286
585
1871

6
CANARA BANK
5277
4833
10110

7
CENTRAL BANK OF INDIA
3521
1813
5334

8
CORPORATION BANK
2287
855
3142

9
DENA BANK
1276
233
1509

10
INDIAN BANK
2548
728
3276

11
INDIAN OVERSEAS BANK
2721
987
3708

12
ORIENTAL BANK OF COMMERCE
2276
326
2602

13
PUNJAB AND SIND BANK
1058
223
1281

14
PUNJAB NATIONAL BANK
5213
4634
9847

15
SYNDICATE BANK
3415
393
3808

16
UCO BANK
2100
571
2671

17
UNION BANK OF INDIA
4411
2919
7330

18
UNITED BANK OF INDIA
1019
1140
2159

19
VIJAYA BANK
1463
322
1785

20
IDBI LTD
1756
1653
3409

21
STATE BANK OF BIKANER AND JAIPUR
1220
811
2031

22
STATE BANK OF HYDERABAD
1814
566
2380

23
STATE BANK OF INDIA
23307
26732
50039

24
STATE BANK OF MYSORE
1096
330
1426

25
STATE BANK OF PATIALA
1181
344
1525

26
STATE BANK OF TRAVANCORE
1136
600
1736


Grand Total
84880
61387
146267


Source: Reserve Bank of India, ATM & Card Statistics for October, 2016
Note: Out of the total ATMs deployed by State Bank of India, 156 ATMs are deployed overseas.
  1. Number of ATM deployed on site by the bank.
  2. Number of ATM deployed off site by the bank
************

Tax evading notices by Directorate of Revenue Intelligence (DRI)

The details of show cause notices issued to various firms by the Directorate of Revenue Intelligence (DRI) for evading taxes are as under.

Year
2013-14
2014-15
2015-16
2016-17 (upto December, 2016)
No. of Show Cause Notices issued
862
629
492
478

The follow up action includes conclusion of proceedings under Section 28 (5) of Customs Act, 1962, settlement by Settlement Commission, or adjudication and recovery. The following amounts have been recovered in the past three years:

Year
2013-14
2014-15
2015-16
2016-17 (upto December, 2016)
Amount recovered (Rs. In Crore)
792.74
679.31
871.27
555.95

Details of the amount involved in the Show Cause Notices are given as under:

Year
2013-14
2014-15
2015-16
2016-17 (upto December, 2016)
Amount of Duty involved (Rs. In Crore)
2735.87
2370.03
2588.96
1945.88

 ********
Goods and Services Tax Council (GST Council)

The Government is not thinking to hike service tax if GST roll out is delayed. The Government is taking steps to expedite the GST and to take the concerns of the States on board.

Goods and Services Tax Council (GST Council) has been constituted on 15.09.2016 under Article 279A of the Constitution. The GST Council consists of the Union Finance Minister, the Union Minister of State in charge of Revenue or Finance and the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government. The GST Council is presently deliberating on various issues entrusted to it. The GST Council has held nine meetings so far and has made recommendations with respect to thresholds, tax rates, GST Rules, treatment of existing tax incentives, Draft GST Compensation Law and Model GST Law for implementation of GST. All the decisions taken by the Council so far have been based on consensus. The Government is making concerted efforts in the form of IT readiness, rigorous consultations, workshops and training sessions for the industry and traders, and all other stake holders involved.

******
Involvement of bank officials in money laundering during post monetization

Enforcement Directorate has intimated that bank employees have been found indulging in money laundering and other unfair practices during the phase of demonetisation and that the investigations have been initiated under the provisions of Prevention of Money Laundering Act (PMLA), 2002 against certain bank officials of various banks during post demonetization. The act provides for attachment of property as well as prosecution of the accused involved in money laundering.

            Further, as part of their staff accountability mechanisms, on the basis of prima facie involvement in irregularities relating to demonetisation, Public Sector Banks (PSBs) are so far reported to have placed 156 officials under suspension and to have  transferred 41 officials.  PSBs are also reported to have filed 26 cases with Police/CBI wherever criminal cases are involved.  In respect of Private Sector Banks, Reserve Bank of India (RBI) has informed that 11 employees have been placed under suspension where bank employees have been found involved in ‘irregular exchange of transaction’ of Specified Bank Note (SBN) during the phase of demonetization.  RBI has further informed that the banks have initiated internal investigation and complaints have been filed with police/CBI.

Whenever a complaint against a bank official(s) is received and any irregularities are found or observed on the part of Banks’ official (s), the Banks initiate action as per their extant rules and commensurate punishment is awarded to the delinquent employees based on the seriousness of the wrongdoings as per Bank’s disciplinary rules.

*******
 Central Board of Direct Taxes (CBDT) signs four more unilateral Advance Pricing Agreements (APAs)

The Central Board of Direct Taxes (CBDT),Department of Revenue, Ministry of Finance has entered into four more unilateral Advance Pricing Agreements (APAs) yesterday.

The four APAs signed pertain to the Manufacturing, Financial and Information Technology sectors of the economy. The international transactions covered in these agreements include Contract Manufacturing, IT Enabled Services and Software Development Services.

With this, the total number of APAs entered into by the CBDT has reached 130. This includes 8 bilateral APAs and 122 Unilateral APAs. In the current financial year, a total of 66 APAs (5 bilateral APAs and 61 unilateral APAs) have already been entered into. The CBDT expects more APAs to be concluded and signed before the end of the current fiscal.

The APA Scheme was introduced in the Income-tax Act in 2012 and the “Rollback” provisions were introduced in 2014. The scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the prices of international transactions in advance. Since its inception, the APA scheme has evinced a lot of interest from taxpayers and that has resulted in more than 700 applications (both unilateral and bilateral) being filed so far in about five years.

The progress of the APA Scheme strengthens the Government’s resolve of fostering a non-adversarial tax regime. The Indian APA program has been appreciated nationally and internationally for being able to address complex transfer pricing issues in a fair and transparent manner.

*****
Protection of consumer’s interests in digital mode of payment

Instructions have been issued on Merchant Discount Rate (MDR) Structure on June 28, 2012 capping the MDR @ 0.75% for payment made through debit cards upto Rs. 2000/- and @ not exceeding 1 % for transaction value above Rs. 2000/-. Further, in order to facilitate wider acceptance of card payments, following temporary measures have been introduced for the period from Jan 1, 2017 applicable till March 31, 2017:

i. For transactions upto Rs. 1000/- MDR shall be capped at 0.25% of the transaction value.

ii. For transactions above Rs. 1000/- and upto Rs. 2000/-, MDR shall be capped at 0.5% of the transaction value.

Reserve Bank of India has been continuously striving to promote electronic transactions by making it safe, secure accessible and efficient. Toward this end, a number of measures have been taken on “Security and Risk Mitigation Measures for Securing Electronic Payment Transactions” which can broadly be put in to 4 categories.

  i.Securing Card Present Transactions
 ii.Securing Card not Present Transactions/On line card not present transactions.
iii. Securing Payments through Internet banking /Electronic Payments-RBI has required banks to introduce additional measures to secure electronic mode of payments like RTGS, NEFT and IMPS.
iv. On line alerts for all type of card transactions – RBI instructed banks to send on line alerts to customers for all type of card transactions

Hon’ble Finance Minister in Budget Speech 2017-18 has proposed to create a Payments Regulatory Board in the Reserve Bank of India by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems. Necessary amendments are proposed to this effect in the Finance Bill 2017.

*****
Conversion of Kisan Credit Cards into Rupay Cards

Under revised Kisan Credit Card (KCC) Scheme issued by Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD), withdrawal through ATM/Debit Cards has been allowed as one of the delivery channels for the drawal of the drawing limit for the current season/year. The Government has been closely monitoring the progress of conversion of Kisan Credit Cards (KCCs) to RuPay ATM cum Debit Kisan Credit Cards (RKCCs). The Government has now decided that NABARD will coordinate the conversion of operative/live KCCs into RKCCs by Cooperative Banks and Regional Rural Banks (RRBs) in a mission mode. Conversion of KCCs into RKCCs will facilitate the farmers in undertaking financial transactions on digital platform. The use of RKCCs may increase the frequency of funds accessed by the farmer as there will be ease in withdrawing cash as and when required. This periodic withdrawal of small amounts will help in reducing the interest burden on the farmers and enable them to access credit as per their needs.

******
Demonetisation of old 500 and 1000 rupee notes

The matter to demonetise currency was under discussion and consultation with RBI for several months preceding 8th November, 2016.  The Government in a letter dated 7th November, 2016 requested RBI to consider cancellation of legal tender character of Rs. 500 and Rs. 1000 denomination with the objective to eliminate black money and to curb the infusion and circulation of Fake Indian Currency Notes (FICN).  The Central Board of the Reserve Bank in its meeting held on November 8, 2016 deliberated in detail a proposal for withdrawal of legal tender status of banknotes in the denomination of Rs. 500 and Rs. 1000 of existing and any older series in circulation and after due examination recommended withdrawal of legal tender status of such notes.  The legal tender character of banknotes of the Specified Bank Notes in the denominations of Rs. 500 and Rs. 1000 in circulation as on the 8th November, 2016 was cancelled by the Central Government, on the recommendation of the Central Board of RBI, with effect from the expiry of the 8th November, 2016 in exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), with the objective to eliminate black money and to curb the infusion and circulation of Fake Indian Currency Notes (FICN).



A recent study by the Indian Statistical Institute in 2016, commissioned by Ministry of Home Affairs (MHA), has estimated a steady infusion of FICN into the economy.  Reports have stated that the objective of infusing FICN into India is a combination of various factors that include destabilising the Indian economy, funding terrorists with the proceeds of FICN trade and using existing FICN network for subversive activities such as espionage, smuggling of arms and other contrabands into India.  These activities pose threat to the territorial integrity and financial stability of the country.  The Special Investigation Team (SIT)’s fifth report, mentions that large amount of unaccounted wealth is stored and used in the form of cash and also there have been huge cash recoveries by law-enforcement agencies, from time to time.



The White Paper on Black Money by the Department of Revenue in 2012 mentions that cash has always been a facilitator of black money since transactions made in cash do not leave any audit trail.  It also quotes the estimates made by the World bank in July, 2010 wherein the size of the shadow economy for India has been estimated at 20.7% of the GDP in 1999 and rising to 23.2% in 2007.



A parallel shadow economy corrodes and eats into the vitals of the country’s economy.  It generates inflation which adversely affects the poor and the middle classes more than others.  It deprives Government of its legitimate revenue which could have been otherwise used for welfare and development activities.  Black Money funds terror, terrorist and terrorist operations from within and across border of the country.



            Specified Bank Notes (SBNs) of Rs. 500 and Rs. 1000 returned to currency chests of Reserve Bank of India (RBI) as on December 10, 2016 amounted to Rs. 12.44 lakh crores.  Reports have been submitted by bank to Reserve Bank of India (RBI) regarding the amount deposited in the banks as on December 30, 2016. 

**********
Speedy Recovery of Non-Performing Assets (NPAs) of Public Sector Banks (PSBs)



Non-Performing Assets (NPAs) of Public Sector Banks (PSBs) as on September, 2016 stands at Rs.5,89,502 Crore (11.82%).



During FY 2015 and FY 2016 PSBs made total NPA recoveries of Rs.42,542 Crore and Rs.39,986 Crore, respectively. The bank-wise details of recovery of NPAs due to actual recoveries in the PSBs during the last two years as per Table below. Based on above data it is observed that PSBs recorded only a moderate decline of Rs. 2,556 Crore in NPA recoveries.



The Government has taken sector specific measures (Infrastructure, Power, Road, textiles, Steel etc.) where incidence of NPA is high. The Insolvency and Bankruptcy code (IBC) has been enacted and Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and The Recovery of Debts due to Banks and Financial Institutions (RDDBFI) Act have been amended to improve resolution/recovery of bank loans. Six new Debt Recovery Tribunals (DRTs) have been established for improving recovery. RBI has provided a number of tools in this regard- Corporate Debt Restructuring (CDR), Formation of Joint Lenders’ Forum (JLF), Flexible Structuring for long term project loans to Infrastructure and Core industries (5/25 Scheme), Strategic Debt Restructuring Scheme (SDR) and Sustainable Structuring of Stressed Assets (S4A).
 

ANNEX
NPA REDUCTION DATA FOR PUBLIC SECTOR BANKS
(Rs. In Crore)
Bank Name
Total reduction in NPAs- due to actual recoveries during the FY

2015
2016
Allahabad Bank
827
2,465
Andhra Bank
1,156
729
Bank of Baroda
1,295
1,347
Bank of India
2,798
3,153
Bank of Maharashtra
430
645
Bharatiya Mahila Bank Ltd.
-
-
Canara Bank
1,871
1,260
Central Bank of India
3,430
3,087
Corporation Bank
318
477
Dena Bank
595
728
IDBI Bank Limited
1,149
840
Indian Bank
525
513
Indian Overseas Bank
2,342
1,784
Oriental Bank of Commerce
1,010
1,149
Punjab & Sind Bank
190
217
Punjab National Bank
4,220
6,001
Syndicate Bank
1,071
1,248
UCO Bank
1,629
1,369
Union Bank of India
1,125
844
United Bank of India
1,237
1,095
Vijaya Bank
646
288
Nationalised Banks
27,864
29,239
State Bank of Bikaner & Jaipur
575
756
State Bank of Hyderabad
1,981
2,503
State Bank of India
8,500
4,119
State Bank of Mysore
1,014
490
State Bank of Patiala
1,411
1,405
State Bank of Travancore
1,197
1,474
SBI Group
14,678
10,747
Public Sector Banks
42,542
39,986
Source: RBI


********
Amendment in Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016; Government decides to allow declarants to make deposits on one or more occasions in the PMGKDS, 2016

The Government of India, in consultation with the Reserve Bank of India (RBI), had notified Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 vide Notification No. S.O.4061(E) dated December 16, 2016. The deposit under this Scheme shall be made by any person who declared undisclosed income under Pradhan Mantri Garib Kalyan Yojana, 2016. The deposit sum, which shall not be less than twenty-five per cent of the declared undisclosed income, can be deposited at the authorized banks (as notified by Government of India) from December 17, 2016 (Saturday) to March 31, 2017 (Friday).



In this connection, the Government of India has decided to allow declarants to make deposits on one or more occasions in the PMGKDS, 2016. Accordingly, para 4(4) of the notification stands amended as under:



“4. Subscription and Mode of investment in the Bonds Ledger Account- (4), the deposit to be made under sub-section (1) of Section 199F under this Scheme can be made, on one or more occasions. The deposits shall be made before filing declaration under sub-section (1) of section 199C.”

*****
CBDT issues Certificates of appreciation to nearly 3.74 lakh tax payers for their contribution towards Nation building

In continuation of the initiative of the Government to acknowledge the contribution of tax payers by paying taxes towards nation building and promptness in filing of Income Tax Returns, CBDT has issued the third round of Certificates to nearly 3.74 Lakh tax payers. With this, the total number of certificates issued by CBDT now stands at approximately 23 Lakh.



Individual tax payers may take note that such certificates of appreciation are only sent by e-mail in various categories on the basis of the taxes paid by them for the Assessment Year 2016-17, where taxes have been paid in full,  tax payers have no outstanding tax liabilities, the return is e-filed within the prescribed due date and verified through Digital Signature or Electronic Verification Code (EVC) or submission of signed ITR-V to CPC Bangalore. The categories for individual taxpayers are:



   i.            Platinum -Taxpayers who have contributed Rs 1 Crore and above as tax

 ii.            Gold      -Taxpayers who have contributed between Rs 50 Lakh and Rs 1 Crore as tax

iii.            Silver     -Taxpayers who have contributed between Rs 10Lakh and Rs50 Lakh as tax

iv.            Bronze   -Taxpayers who have contributed between Rs 1Lakh and Rs10 Lakh as tax

Taxpayers are advised to verify  and  update  their  email  address  and  mobile  number  on  the  e-filing website to receive electronic communication. It may be noted that taxpayers can provide upto two email and two mobile numbers in their profile. Therefore, it is strongly advised that taxpayers should provide their personal and regularly used Email and Mobile number as their primary email.



The CBDT urges taxpayers to e-file their returns in time and verify their return by submitting the Electronic Verification Code online or sending their ITR-V within the 120 day period so that they can be also acknowledged for their contribution.

No comments

Powered by Blogger.