DISA AT Exam Form for June 10 Exams

Highlights
Exam Date : 26-Jun-2010
Last Date : 10-Jun-2010
Exam Fees : Rs.1000 / Rs.1100 (Form downloaded)


Link : http://docs.google.com/fileview?id=0B-0hzoMM8_XZY2RhYzQwN2YtM2QwYi00ZDdhLTk3YzctMjY4Y2Q5YjQzYTA2&hl=en

Source / Direct Link : http://www.icai.org/resource_file/19236announ10433.pdf

RESIDENTIAL SEMINAR at KUMARAKOM

  RESIDENTIAL SEMINAR at WATERSCAPES, Kumarakom North, Kottayam-686 563, Kerala from 25th June 2010 to 27th June 2010

CPE 8 HOURS
Registration fees; (The Package)
Member : Rs.4,750/-
Spouse : Rs.4,250/- (Children above 12years)
Children (above 6years upto 12 Years) : Rs.2,750/-
Children (below 6years) : FREE

Transport from Madurai will be arranged on cost sharing basis on request.
There are limited cottages at waterscapes hence "First Come First Serve Basis" allotment will be done.
Speakers and Topics will be informed later.
Draw your local cheque / DD in favour of "MBSIRC OF ICAI" payable at Madurai and send to

Madurai Branch of SIRC of ICAI,
ICAI Bhawan, Old Natham Road,
Opp. Balamandiram School,
Visalakshipuram,
Madurai - 625014,
Phone 0452-2640968

Please pay the registration fees at the earliest at our Branch to ensure your registration.

We welcome you to enjoy the back waters with your families.
KTDC Waterscapes Kumarakom http://www.waterscapeskumarakom.com/

with regards

CA.T.Thavamani
Chairman - MBSIRC

IT dept cautions public against fraudulent e-mails

Publication: Economic Times Delhi; Date: May 8, 2010

NEW DELHI:

The Income Tax Department has cautioned the public against fraudulent e-mails which ask for their credit card details on the pretext of refunding excess income tax, the government said in the Lok Sabha on Friday. “The department has clarified that it does not send e-mails regarding refunds. The general public has, therefore, been cautioned not to respond to such mails regarding refunds and if they do so, it would be at their risk and responsibilities,” Minister of State for Finance S S Palanimanickam said in a written reply.

He further said that an advisory was issued in the print media and on the national website of the Income Tax Department to caution tax payers against such e-mails and the Department of Information Technology has been asked to take appropriate action in all such cases.

In a separate reply, Palanimanickam said that the I-T Dept has cancelled 10.43 lakh duplicate PANs during the last three years.

Source Link :

http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRELzIwMTAvMDUvMDgjQXIwMDkwNA==&Mode=HTML&Locale=english-skin-custom

IPCC Coaching Classes at Madurai

IPCC Coaching Classes starts from 10-May-2010 at Branch premises.

Details of IPCC Coaching Classes:
-------------------------------------------------
Time : 7 a.m to 9 a.m.
Fees Structure : Group I -Rs.3,500/-
Group II -Rs.2,500/-
Both Group -Rs.5,750/-
Each Paper-Rs.1,000/-

With regards,
CA G.SELVAKUMAR
SICASA Chairman - MBSIRC of ICAI

Multipurpose Empanelment Application Form for the year 2010-11

Multipurpose Empanelment Application Form for the year 2010-11 would be hosted on www.meficai.org as per following schedule:

Hosting of on line MEF application form for the year 2010-11 on the website http://www.meficai.org/
1st May, 2010
Last date of submission of the MEF form for the year 2010-11 :
15th June, 2010 (05.30 PM)
Last date of receipt of duly signed declaration:
30th June, 2010

Furnishing PAN compulsory Under TNVAT Rules

The Government of Tamil Nadu has issued Notification No.SRO.A-13(a)/2010 GO.Ms.No.50 dated 19.04.2010 amending Rule 4 of the TNVAT Rules.

As per the amendment every registered dealer whose certification of registration under TNVAT is in force is required to furnish the permanent account number (PAN) along with the proof of the same to the registering authority within 3 months from the date of coming into force of this Rule.

Know your Customer (KYC) guidelines - accounts of proprietary concerns

 

 

Date: Mar 26, 2010

Know your Customer (KYC) guidelines - accounts of proprietary concerns

RBI/2009-10/362

DBOD.AML.BC.No.80/14.01.001/2009-10

March 26, 2010

The Chairmen and Chief Executive Officers

All Scheduled Commercial Banks excluding RRBs/

All India Financial Institutions/Local Area Banks

Dear Sir,

Know your Customer (KYC) guidelines - accounts of proprietary concerns

A reference is invited to Para 2.4(a) of the Master Circular on KYC/AML/CFT/Obligation of banks under Prevention of Money laundering Act (PMLA), 2002 issued to banks vide DBOD.AML.BC.No.2/14.01.001/2009-10 dated July 1, 2009. It has been advised to banks that internal guidelines for customer identification procedure of legal entities may be framed by them based on their experience of dealing with such entities, normal bankers’ prudence and the legal requirements as per established practices. If the bank decides to accept such accounts in terms of the Customer Acceptance Policy, the bank should take reasonable measures to identify the beneficial owner(s) and verify his/her/their identity in a manner so that it is satisfied that it knows who the beneficial owner(s) is/are

2. For sake of clarity, in case of accounts of proprietorship concerns, it has been decided to lay down criteria for the customer identification procedure for account opening by proprietary concerns. Accordingly, apart from following the extant guidelines on customer identification procedure as applicable to the proprietor, banks / financial institutions should call for and verify the following documents before opening of accounts in the name of a proprietary concern:

i) Proof of the name, address and activity of the concern, like registration certificate (in the case of a registered concern), certificate/licence issued by the Municipal authorities under Shop & Establishment Act, sales and income tax returns, CST/VAT certificate, certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities, Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, etc.

ii) Any two of the above documents would suffice. These documents should be in the name of the proprietary concern.

4. These guidelines will apply to all new customers, while in case of accounts of existing customers, the above formalities should be completed in a time bound manner and should be completed before December 31, 2010.

5. Please acknowledge receipt.

Yours faithfully,

(Vinay Baijal)

Chief General Manager

Clarification regarding allowing losses on account of forex derivatives

Instruction No. 03/2010, dated 23-3-2010

1.Foreign Exchange derivative transactions entered into by the corporate sector in India have witnessed a substantial growth in recent years. This combined with extreme volatility in the foreign exchange market in the last financial year is reported to have resulted in substantial losses to an assessee on account of trading in forex-derivatives. A large number of assesses are said to be reporting such losses on 'marked to market' basis either suo motu or in compliance of the Accounting Standard or advisory circular issued by the Institute of Chartered Accountants. The issue whether such losses on account of forex-derivatives can be allowed against the taxable income of an assessee has been considered by the Board. In this connection, I am directed to say that the Assessing Officers may follow the guidelines given below:

'Marked to Market Losses':

2. "Marked to Market" is in substance a methodology of assigning value to a position held in a financial instrument based on its market price on the closing day of the accounting or reporting record. Essentially, 'Marked to Market' is a concept under which financial instruments are valued at market rate so as to report their actual value on the reporting date. This is required from the point of view of transparent accounting practices for the benefit of the shareholders of the company and its other stakeholders. Where companies make such an adjustment through their Trading or Profit/Loss Account, they book a corresponding loss (i.e the difference between the purchase price and the value as on the valuation date) in their accounts. This loss is a notional loss as no sale/conclusion/settlement of contract has taken place and the asset continues to be owned by the company.

A 'Marked to Market' loss may be given different accounting treatment by different assesses. Some may reflect such loss as a balance sheet item without making any corresponding adjustment in the Profit and Loss Account. Other may book the loss in the Profit and Loss Account which may result in the reduction of book profit. In cases where no sale or settlement has actually taken place and the loss on Marked to Market basis has resulted in reduction of book profits, such a notional loss would be contingent in nature and cannot be allowed to be set off against the taxable income. The same should therefore be added back for the purpose of computing the taxable income of an assessee.

3. Treatment of loss from actual transactions in forex-derivatives

In a case where a loss on a forex-derivative transaction arises on actual settlement / conclusion of contract and is not a notional or marked to market book entry, a further question will arise as to whether such a loss is on account of a speculative transaction as contemplated in Section 43(5) of the Income tax Act. For determining whether loss from a transaction in respect of a forex-derivative is a speculation loss or not, the Assessing Officers may refer to Proviso (d) below sub-section (5) of Section 43 inserted by the Finance Act, 2005, with effect from 1.4.2006. It lays down that any 'eligible transaction' in respect of trading in derivatives referred to in clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956, that has been carried out in a recognized stock exchange shall not be treated as a speculative transaction. Further, an 'eligible transaction' for this purpose would be one that fulfils the conditions laid down in Explanation to Section 43(5)(d). Any loss in a speculative transaction can be set off only against profit from speculative transactions.

As the revenue implications of such transaction are large, the Assessing Officers need to examine the statements of accounts and the notes to accounts with a view to find out any reference to any loss on account of forex-derivatives. In some cases, these losses may be camouflaged under the 'financial charges' 'foreign exchange loss' or some similar head which may make it difficult to detect them. In such cases, the Assessing Officers should make a specific query asking the assessee to give a break up of any 'Marked to Market' loss on a forex-derivatives included in the Profit and Loss Account and examine whether such transactions are 'eligible transaction' in terms of Sec.43(5)(d). An adjustment to the taxable income may therefore be made, if necessary, keeping in view the provisions of law referred to above.

Processing of returns of A.Y. 2008-09 - Steps to clear the backlog

Instruction No. 1/2010, dated 25-2-2010

i) In all the returns filed in ITR-1 and ITR-2 for the A.Y. 2008-09, where the aggregate TDS claim does not exceed Rs four lakh and where the refund computed does not exceed Rs.25,000; the TDS claim of the tax payer concerned should be accepted at the time of processing of return.

ii) In all the returns filed in forms other than ITR-1 and ITR-2 for the A. Y. 2008-09, where the aggregate TDS claim does not exceed Rs four lakh and the refund computed does not exceed Rs.25,000, and there is

70% matching of TDS amount claimed, the TDS claim of the tax payer concerned should be accepted at the time of processing of return.

iii) In all remaining cases, TDS credit shall be given after due verification.

The issue of processing of I.T. returns for the A.Y. 2008-09 and giving credit for TDS has recently been considered by the Board and following decisions have been taken, in order to clear the backlog of returns pending for processing:

Lessons from the NTPC Fiasco

The failure of the NTPC issue holds some useful lessons for the future of public sector issues.

Now that the dust has settled on the government's NTPC follow-on public offer (FPO) fiasco, it's interesting to note that by any sensible measure, the issue was undersubscribed by at least 50 per cent. Going by reports, it seems that about Rs 4,700 crore, out of the Rs 8,300 crore, of subscription was from the State Bank of India (SBI) and Life Insurance Corporation (LIC), and possibly other public sector banks and insurers. Now, the government can pretend whatever it wants to, but everyone knows that the issue was a complete failure and the fig leaf of success was orchestrated by getting the SBI and LIC to subscribe to the NTPC FPO.

It's interesting to note that if these events had happened in a private business group, then it would probably have crossed the borderline of legality. Here's the story: A business group needed to make good heavy losses it had suffered, so it decided to sell its stake in another, unrelated group business. The issue collapsed. It provoked negligible response among the retail public and even the companies' own employees. So the promoters of the group forced a bank and an insurance company they controlled to subscribe to the issue. Basically, this sham FPO amounted to transferring assets from the bank and the insurance company to an unrelated activity owned by the promoters.

I don't know about you, but I would say that this course of action followed by the promoters crossed the borderline of not only ethics, but is probably illegal. The clinching argument (one that demonstrates the promoter’s greed beyond all doubt) would be that the bank and the insurance company were the highest bidders in the issue, and bid several percentage points higher than the ruling market price and the other bidders. Had this been a private business group, then the promoters should rightfully have been behind bars by now. The Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority (IRDA) and various other entities that regulate the players in this drama would have been asking some tough questions from the promoters and their advisors.

There are more ways in which the government's attitude resembles that of an unscrupulous promoter. The way the issue was priced showed that greed got the better of common sense. The entire focus was on squeezing the most money possible out of the investors' pockets. Forgotten were all those grand statements about the public sector being owned by the public. Funnily, even as the issue was open, one heard officials floating conspiracy theories about how bear cartels had hammered the price down from Rs 230 to Rs 200 and how they should be investigated. In reality, the stock had spent most of the previous six months at around 200. Briefly, in December, someone, probably the government's hired bulls, jacked it up to 230, or 240, but failed to sustain it there. Again, these are tactics that would do a shady private promoter proud.

Going forward, it should be clear to anyone who is applying any thought to the issue that unless the disinvestment program is done in a very different spirit, it is going to be an year-long fiasco. As it would deserve to be.

New Income Tax Return Forms for Assessment Year 2010-11.

CBDT notifies New Income Tax Return Forms for the Assessment Year 2010-11.
ITR 2,3,4,5,6,7 and ITR-V, Acknowledgement

Source Link :
http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/itr62Form1-8(New2010-11).htm

New Income Tax Return Form SARAL II for Assessment Year 2010-11.

CBDT notifies New Income Tax Return Form SARAL II (ITR 1) for Assessment Year 2010-11 for Individuals having income from Salary/Pension/Income from One House Property (Excluding loss brought forward from previous years) / Income from Other Sources (Excluding winning from Lottery and Income from Race Horses). CBDT also notifies Income Tax Return Verification Form ITR-V for Assessment Year 2010-11 for SARAL II (ITR-1) ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature.

NOTIFICATION:
http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=NOTF&schT=&csId=db162fbb-0555-4653-9e67-c818dd522568&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

ITR1:
http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/PDF/Ay2010-11/SARAL-II-ITR-1.pdf

ITR V:
http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/PDF/Ay2010-11/ITR-V.pdf