Banking
'No need of reporting fixed deposits in pre-existing accounts'
New Delhi : The Indian government clarified on Friday that the implementation of the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) will not entail reporting of all fixed deposits and auto sweep facilities in pre-existing savings bank accounts.
 
"During stakeholders consultations, representatives of financial institutions informed that in such cases, no additional documentation is obtained for these fixed deposits accounts as they are intrinsically related to existing saving bank account and all KYC documents are available for the existing saving bank account," the Central Board of Direct Taxes said on their website.
 
As per the order, fixed deposits in savings accounts opened before June 30, 2014 and December 31, 2015 will not have to be reported for FATCA and CRS, respectively.
 
The guidelines also said that for the upcoming reporting in March 2015 and May 2016, all reporting has to be done in Indian currency. For the reporting in 2017, Form 61B and Schema will be suitably modified to include a field for capturing the type of currency.
 
India and the US signed an inter-governmental agreement to implement FATCA in July 2015, towards greater transparency between the two countries on tax matters.
 
The decision will enable the government to receive information from the US and from other jurisdictions with which India has entered into agreements for Automatic Exchange of Financial Account Information (AEOI) as per CRS about assets of Indians held abroad including through entities in which Indians are beneficial owners.
 
These steps are designed to help the government curb tax evasion and deal with the problems of black money.
 
The measures will also result in financial institutions in India being FATCA complaint and they will not be required to enter into separate agreements with the US to avoid 30 percent withholding on their US source of income.
 
Till now, the Automatic Exchange of Financial Account Information protocols as per common reporting standards have been signed by 52 countries.
 
The Indian government has taken a leading role in international fora towards building a consensus among major economies that the problem of offshore tax evasion and flow of illicit money can be addressed only by free flow of financial account information to be exchanged among countries on an automatic basis.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Haryana tense, army deployed in eight districts
Rohtak/Chandigarh : The situation in Haryana continued to remain tense on Saturday due to ongoing agitation carried out by Jat protesters, with army personnel deployed in eight districts.
 
Soldiers were airlifted earlier on Saturday to the violence-hit Rohtak town after the protesters dug up roads to block the entry of the military.
 
The agitation began as Jats are demanding reservation for the community in government jobs and educational institutions. 
 
Looting and arson continued in the town through Friday night with unruly mobs targeting malls, shops and other buildings and many of them were set on fire.
 
Indian Air Force helicopters did several sorties to transport soldiers into some parts of Rohtak town. 
 
"Around 20-30 troops were being brought into Rohtak town by choppers. They will be deployed in areas which are under siege of the Jat protesters," a senior officer told IANS.
 
Authorities in Rohtak asked people not to venture out of their houses after 9.30 a.m. as the army prepared for a flag march.
 
The army staged a flag-march in Bhiwani town. Officials said that the situation was under control.
 
Reports said that national highway No. 1 (NH-1) was blocked by protesters in Sonipat district, 50 km from Delhi. The Delhi-Ambala railway track remained blocked since Friday evening. Hundreds of passengers were stranded as railway authorities cancelled several trains on the route.
 
Nearly 550 trains were either cancelled or diverted since the agitation began a week ago.
 
On Friday, the agitation that started a week ago, got even worse and resulted in the death of three people and dozens, including security personnel, were injured.
 
The mob also attacked the office of the Rohtak range inspector general of police (IGP) and set the house of Finance Minister Abhimanyu on fire.
 
Jat leader Hawa Singh Sangwan said that the youth have taken over the agitation. 
 
"They do not have any organised leader and hence the violence is happening. Some mischievous elements have infiltrated the mobs," he said.
 
Authorities have also blocked internet and SMS services in the affected districts.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Kalikho Pul is new Arunachal Pradesh CM
Guwahati : Dissident Congress lawmaker Kalikho Pul was on Friday was sworn in as the new chief Minister of Arunachal Pradesh, which has been under Presidents' Rule since January 25 following political instability.
 
Arunachal Pradesh Governor Jyoti Prasad Rajkhowa swore him the oath of office and secrecy at a beief function organised at the Raj Bhavan in the hilly state around 9.30 p.m. 
 
The development came after President Pranab Mukherjee earlier in the day approved the recommendation of the union cabinet for revocation of the President's Rule.
 
BJP leader Tapir Gaon said that only Pul, who was elected as leader of the house by 31 legislators, took oath of office and secrecy. 
 
The new chief minister will induct his ministers at a later date. 
 
The BJP said it will lend support to the new government from outside only and will not be its part.
 
The Supreme court on Thursday paved the way for the formation of the new government by disposing of Congress leader Nabam Tuki's plea for an interim direction that his party be allowed to go for a floor test in the house and vacated its earlier order for maintenance of status quo.
 
On Monday, Pul and another 31 MLAs, including 18 Congress legislators, 11 of BJP and two Independents, met the governor and submitted a memorandum to stake claim to form the government.
 
The legislators reaffirmed their support to Pul to head the council of ministers and that he may be sworn in at the end of the President's Rule Arunachal Pradesh.
 
Political situation in the north-eastern state turned volatile after the governor advanced an assembly session from January 2016 to December 2015. 
 
While the then chief minister Nabam Tuki and his supporters boycotted the session, the dissident Congress and BJP legislators, and two Independents, took part in the session held first at a community hall and then at a hotel. 
 
The legislators impeached Speaker Nabam Rebia by a voice vote and moved a no- confidence motion against the chief minister, forcing both to move the Guwahati High Court and subsequently the Supreme Court.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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