Some significant changes proposed in existing laws in new Bills (IPC, CrPC, Evidence Act) which makes it worth it !!

-Separate provision for Mob Lynching, punishable with 7 years or life imprisonment or the death penalty;

-Formal provision for ‘Zero FIR’- this will enable citizens to lodge an FIR with any police station, no matter their jurisdiction;

-Zero FIR must be sent over to the concerned Police Station having jurisdiction in the alleged crime within 15 days after registration;

-‘ Deemed Sanction’ to prosecute civil servants, and police officers accused of criminal offences in case the authority fails to respond within 120 days of application;

-Digitization of complete process starting from registration of FIR to maintenance of Case Diary to filing of Charge sheet and delivery of Judgment;

-Complete trial, including Cross-examination, to be facilitated via Video conferencing;

-Videography while recording statement of victims of sexual crimes mandatory;

-Punishment for all types of Gang Rape- 20 yrs or life imprisonment;

-Punishment for Rape of minor- death penalty;

-Charge sheet to be mandatorily filed within 90 days of FIR; Court may extend such time by further 90 days, taking the total maximum period for winding up investigation to 180 days;

-Courts to finish framing of charges within 60 days of receiving charge sheet;

-Judgment to be mandatorily delivered within 30 days after conclusion of hearing;

-Judgment to be mandatorily made available online within 7 days of pronouncement;

-Videography mandatory during Search & Seizure;

-Forensic Teams to mandatorily visit crime scenes for offences involving punishment of more than 7 years;

-Deployment of Mobile FSLs at the district level;

-No case punishable with 7 years or more shall be withdrawn without providing the opportunity of hearing to the victim;

-Scope of Summary Trials expanded to offences punishable up to 3 years (will reduce 40% cases in Sessions courts);

-Separate, harsh punishment for organized crimes;

-Separate provisions penalizing rape of women under the false pretext of marriage, job, etc.;

-Separate provision for ‘Chain Snatching’ and similar miscreant activities;

-Punishment of the death penalty can at max be commuted to a life term, punishment of a life term may at max be commuted to 7 years imprisonment and punishment of 7 years may be commuted to 3 years imprisonment and no less;

-Videography of vehicles seized for involvement in any offence mandatory, whereafter a certified copy will be submitted to the Court to enable disposal of the seized vehicle during the pendency of the trial.

India ranked 5th in GDP. Singapore is ranked 30th.So is India richer than Singapore.?

Here is a quick backstory:-

India is projected to become a 5 Trillion$ economy by 2024.

We will be the 3rd largest economy by then.

By 2047, we will be a 40 Trillion$ economy.
And, by this point, we will be a developed economy.

This is a matter of great celebration. NO DOUBT.
And, we should be proud.

Having said this, if you look around, you will find that India ranks 158/212 on GDP/Capita. No one seems to even talk about this number (like ever..!).

This means that while India is growing GDP-wise, an ‘average’ Indian is still quite poor.

The question comes WHY?

[1] Our GDP comes from domestic consumption, not exports. For decades we have run, a trade deficit, not a trade surplus (i.e we import more and export less)

[2] Singapore on the other hand, runs a trade surplus. In 2021 for example, they had a trade surplus of 126Billion$, which is almost 32% of their GDP.

[3] Interestingly, Japan, Germany, and China (three countries which are ahead of us in terms of GDP), all run trade surplus (generally)

The US is the only exception that runs a trade deficit (like India). But, they are a special case as they hold the reserve currency.

They can print their fake money and buy real goods from the world to the extent they want. And, still not cause a panic.

So to a the long-story-short, I don’t know if India is richer than Singapore.

Maybe it is, maybe it is not.

Logically speaking, I don’t know if a country can truly become rich without running a trade surplus.

Even if we look at history, this holds For 1700 years, India controlled 25-33% of worth world’s wealth.

Even during this phase, India was a net exporter of finished goods.

Point is: Economics is complex. And, I am giving you all this info, so that you can understand the picture more holistically.

India’s Debt Market Gets A Buyer Of Last Resort

Earlier this year SEBI devised a new fund to rescue non-AAA rated debt in times of market dislocation. It will be launched by Finance Minister Nirmala Sitharaman tomorrow.

The Corporate Debt Market Development Fund will be funded by debt mutual funds and guaranteed by the government.

Key Highlights

▪ Government notifies Guarantee Scheme for Corporate Debt.

▪ To provide guarantee cover against debt raised by Corporate Debt Market Development Fund.

▪ CDMDF will invest in corporate debt securities at times of market dislocation.

▪ Guarantee shall not exceed Rs. 30,000 crore.

▪ All debt-oriented mutual fund schemes to contribute 25 bps of assets under management.

▪ Asset management companies of these schemes to make a one-time contribution of 2 bps of AUM.

▪ These contributions to be held in the form of investment in units of CDMDF.

▪ In times of market dislocation, CDMDF can leverage corpus up to 10 times from banks or bond market or repo market, subject to maximum guarantee of Rs. 30,000 crore.

▪ This enlarged corpus can be used to purchase and hold eligible corporate debt securities of investment grade with residual maturity not exceeding 5 years.

▪ CDMDF will offload a large part of its holdings within a reasonable time of 3 months from the end of market dislocation period.

**Corporate Debt Market Development Fund – CDMDF

Consequences for Late Filing of Income Tax return after the Due Date

1) Penalty:
The maximum penalty of Rs 5000 is levied if you file your ITR after the due date i.e. after 31st July and before 31st December.

However there is a relief for small taxpayers, If their total income does not exceed Rs 5 Lakh, the minimum penalty levied for delay will be Rs 1000.

2) Interest on Unpaid Taxes:

Apart from the Penalty, interest will be charged under Section 234A at 1% per month or part thereof on tax due until the payment of taxes.
It is important to note that you cannot file ITR unless you pay taxes. The interest calculation under the said section will start from the date falling immediately after the due date.

3) Unable to Set Off losses:

Losses incurred are not allowed to be carried forward to subsequent years. You cannot set off these losses against future gains if the return has not been filed within the due date. However, if there are any losses under House Property, carry forward is permitted

4) Delayed Refunds:

In case you’re entitled to receive a refund from the government for excess taxes paid, you must file the returns before the due date to receive your refund at the earliest.

5) Prosecution & imprisonment:

If a taxpayer fails to file their income tax return, they will receive a notice from the Income Tax Department under Section 142(1), 148, or 153A. Failure to file even after receiving these notices can result in prosecution under Section 276CC of the Income Tax Act for tax evasion.

The penalties for tax evasion exceeding ₹25 lakh include a penalty for not filing an ITR and imprisonment of at least 6 months, which may extend to 7 years. For other cases, the prescribed penalty is imposed along with imprisonment of at least 3 months, which can be extended up to two years.

It’s always better not to wait for the last day to file Tax Returns as Income Tax Portal works slowly due to heavy traffic. Last year 72 lakhs returns were filed on the last day i.e. 31 July. Let us see if the record is broken and it may cross 1 crore this year.

Did 13.5 crore Indians really exit “poverty” in 5 yrs as some of the reporting around Niti Aayog data suggests ?

Did 13.5 crore Indians really exit “poverty” in 5 yrs as some of the reporting around Niti Aayog data suggests ?

No — and this needs some unpacking.

Things we need to know:

1. This has nothing to do with any “resilience” of India’s poor during the pandemic because the data is based on NFHS 2019-21, for which survey fieldwork was completed in 22 of the 36 states/UTs by Feb 2020.

2. It’s ‘multidimensional’ poverty (more on that in my explainer today), NOT poverty.

It’s only a *complement* to poverty data, as Niti Aayog itself says.

3. Poverty remains a monetary measure, on which we lack official data since 2011-12.

4. No index is perfect: the selection, definition, weighting of criteria can always be debated.

Yet, indices can help — as long as (and only if !) we know what they mean and what they don’t.
The data is about ‘multidimensional poverty’ — a mix of 12 indicators across health, education and living standards.

MDP is a global measure used by UNDP since 2010, and Niti Aayog created an Indian version (with tweaks, hence not comparable) in 2021.

10 Mistakes Taxpayer make while filing Income Tax Returns

1. Wrong ITR

Selecting the wrong ITR may lead to notices and later revision. Many Salaried file ITR 1, however, they are liable to file ITR 2

2. Not claiming Interest Deductions

Few Miss to claim 80TTA and 80TTB deductions

3. Two salaries- Disclose only 1

In a few cases when you have received a salary from more than one employee, you need to disclose all your salary income

4. Forget to disclose Shareholding/Directorship Pvt. Ltd

Holding Shares in Private Limited or Directorship needs to be Disclosed

5. Not disclosing foreign A/C shares etc.

Disclosure of foreign assets in ITR is mandatory for resident taxpayers who own specified foreign assets

6. Not checking AIS/TIS Reconciliation

A few times Income as per AIS / TIS income additional details are not checked and updated

7. Not claiming Senior citizen Medical expense

Senior Citizens who do not have Mediclaim Insurance can claim a 50k deduction on expenditure incurred on Medical Treatment

8. Deduction not claimed in Form 16 can be claimed while ITR filing

80C, 80D to 80U can be claimed. HRA can be Claimed but LTA cannot. Be sure of what can be claimed and what cannot

9. Not verifying ITR-30 days

ITR uploaded but not Verified within 30 days makes it Invalid

10. Maintain documents and evidence-10 years

Its good practice to maintain all exemption and deductions claimed documents as evidence for 10 years

Recommendations of 50th meeting of GST Council

GST Council recommends Casino, Horse Racing and Online gaming to be taxed at the uniform rate of 28% on full face value.

Everyone worried about 28% GST on online Gaming & Gambling.But compensation cess (over and above GST) on Multi utility vehicles equaled with SUV’s and XUV’s.Previously it was 20%.

GST Council recommends notification of GST Appellate Tribunal by the Centre with effect from 01.08.2023.

GST Council recommends exemption of cancer-related drugs, medicines for rare diseases and food products for special medical purposes from GST tax.

Recommends bringing down rates from 18 percent to 5 percent on 4 items – Uncooked, unfried & extruded snack palettes, fish soluble paste, LD slag to be at par with blast furnace slag, and imitation zari thread.

GST Council also recommends several measures for streamlining compliances in GST.

Transporters will not be required to file declaration for paying GST under forward charge every year.

No RCM on services supplied by a director of a company to the company in his private or personal capacity such as supplying services by way of renting of immovable property to the company

Relief for taxpayers,

Govt extended the special procedure regarding mismatch in ITC availed in GSTR-3B and 2A for two more years i.e 2019-20 and 2020-21.

Amnesty schemes notified vide notifications dated 31.03.2023 regarding non-filers of FORM GSTR-4, FORM GSTR-9 & FORM GSTR-10 returns, revocation of cancellation of registration extended till 31.08.2023.

To do away with the requirement that the physical verification of business premises is to be conducted in the presence of the applicant.

To provide for physical verification in high risk cases even where Aadhaar has been authenticated.

System-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that made available in FORM GSTR-2B.

Supply of food and beverages in cinema halls is taxable at 5%

Relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23

No GSTR-9 for turnover upto 2 crores.

Input Services Distributor (ISD) mechanism is not mandatory for distribution of input tax credit of common input services procured from third parties to the distinct persons as per the present provisions of GST law. Amendment may be made in GST law to make ISD mechanism mandatory prospectively.

Detailed Circular to be issued to provide clarity on liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period.

Refund of accumulated input tax credit (ITC) to be restricted to ITC appearing in FORM GSTR-2B.

Only Name of state on tax invoice, not the name and full address of the recipient, in cases of supply of taxable services by or through an ECO.

MPs/MLAs Say They Don’t Need To Pay Tax Or Have No Income

24% India’s MPs/MLAs Say They Don’t Need To Pay Tax Or Have No Income

Only quarter of 4,848 MPs/MLAs declare income more than Rs 10 lakh, means 75% of MPs and MLAs nationwide declared annual incomes less than Rs 10 lakh

Around 35% of lawmakers said their annual income is less than Rs 2.5 lakh

40% have declared annual income between Rs 2.5 lakh and Rs 10 lakh.

As many as 1,141 (24%) MPs and MLAs claimed exemption from income tax or have no income at all.

Highlights of weak correlation existed between the assets and incomes of MPs and MLAs.

1) 38% (912 of 2,410) legislators with assets more than Rs 2 crore declared family incomes of less than Rs 10 lakh.

2) Of 1,079 lawmakers with assets in the range of Rs 2 crore and Rs 5 crore, only 44% (474) declared incomes more than Rs 10 lakh.

3) 22% (255 of 1,651) with assets between Rs 2 crore and Rs 10 crore declared incomes less than Rs 2.5 lakh.

4) 41% (891 of 2,155) with assets between Rs 2 crore and Rs 30 crore declared incomes less than Rs 10 lakh.

5) Of 156 lawmakers with household assets more than Rs 50 crore, 10 declared incomes less than Rs 10 lakh.

6) Of 75 legislators with assets more than Rs 100 crore, four reported incomes less than Rs 2.5 lakh.

7) 7% (106 out of 1,470) with assets less than Rs 1 crore declared annual incomes more than Rs 10 lakh.

8) As many as 2,410 elected representatives (MPs/MLAs) declared household assets of more than Rs 2 crore, of which 912 (out of 2410, 38%) disclosed family incomes less than Rs 10 lakh.

Source: India Spend 2017-18 Data

Credit Card Network Portability is Here

RBI’s latest circular will allow customers to change the card network (e.g. RuPay, Visa, Mastercard, etc.) on their prepaid, debit and credit cards.

Let’s understand how card networks work

If you want to send money to someone, you need to have their details and then transfer money to their account.

But what if you want to pay someone you don’t know?

Maybe to pay for clothes at a shop.

You may not always have their bank details.

This is where card networks come in.

Card networks onboard these merchants on their network and you can pay using this network.

If you swipe your Visa card at a merchant’s POS machine, you are using the Visa network.

The merchant is charged an interchange fee/merchant discount rate for this.

This fee is divided between Visa (card network), the acquiring bank which operates the merchant’s POS machine and the bank which issued the card.

There are 5 card networks in India right now – Visa, MasterCard, Rupay, American Express and Diner’s Club.

The problem is that most banks don’t like to issue RuPay cards because they don’t make as much money on them.

Rupay debit cards have a 0% MDR. And even for credit cards, the fees are lower for the Rupay network.

There is less of an incentive for banks. And lower revenues mean lower rewards on cards.

So whenever your bank offers you a credit card, the default network is rarely Rupay, except for some public sector banks.

And even if you want to switch your network to Rupay, banks may insist on physical visits or say that it is not possible.

Some issuers may also have exclusive tie-ups with card networks. All this restricts consumer choice.

In this draft circular, RBI has proposed that

a) No exclusive tie-ups between issuers and networks.
b) Card issuers will have to issue cards on more than 1 network.
c) Customers should get the option to choose their preferred card network.

This can be at the time of issue or even afterwards.

This would allow customers more choice and freedom over their card networks.

b) and c) would be applicable from 1st October, 2023.

For the others, comments have been invited. Further developments awaited.

Do you think this will improve consumer choice, or is it just a move to promote RuPay ?

An explainer on Time-of-Day electricity tariff

Central Government Amends Electricity (Rights of Consumers) Rules, 2020 by Introducing Time of Day (ToD) Tariff and Simplification of Smart Metering rules

Power Tariff to be 20% less during Solar Hours, 10%-20% Higher during Peak Hours; Consumers to benefit from effective utilization of ToD provision.

Introduction of Time of Day (ToD) Tariff : Rather than being charged for electricity at the same rate at all times of the day, the price you pay for electricity will vary according to the time of day.

Under the ToD Tariff system, Tariff during solar hours (duration of eight hours in a day as specified by the State Electricity Regulatory Commission) of the day shall be 10%-20% less than the normal tariff, while the tariff during peak hours will be 10 to 20 percent higher.
ToD tariff would be applicable for Commercial and Industrial consumers having Maximum demand of 10 KW and above, from 1st April, 2024 and for all other consumers except agricultural consumers, latest from 1st April, 2025. Time of Day tariff shall be made effective immediately after installation of smart meters, for the consumers with smart meters.

“The TOD tariffs comprising separate tariffs for peak hours, Solar hours and normal hours, send price signals to consumers to manage their load according to the Tariff. With awareness and effective utilization of ToD tariff mechanism, consumers can reduce their electricity bills. Since solar power is cheaper, the tariff during the solar hours will be less, so the consumer benefits. During non solar hours thermal and hydro power as well as gas based capacity is used – their costs are higher than that of solar power – this will be reflected in Time of Day Tariff. Now consumers can plan their consumption in order to reduce their power costs – planning more activities during solar hours when power costs are less.”

NBFC sector is waiting for the HDFC twin merger.

The reasons are self-serving..!

Over the past five years, banks’ exposure to the NBFC sector has increased to ~4x (from ₹3.5 lakh crores to ₹13.5 lakh crores).

Note that this does not include banks’ investment in NBFC securitisation transactions, NCDs, commercial paper, co-lending arrangements, etc.

Other channels of funding for NBFCs have also slowed down recently.

Typically, all banks have sector level limits, so exposure to any particular sector is limited.

Many banks have reached their NBFC sector limits due to this increase in exposure.

As a result, NBFCs are facing problems in getting incremental funding from the banks.

Post the Franklin fiasco, debt mutual funds have become much more conservative. Their exposure to the NBFC sector has reduced by 33% in the past five years.

NBFCs had raised almost ₹1 lakh crores of funds from High-net worth individuals via Market linked debentures.

This year’s budget removed the product’s taxation arbitrage, thereby killing that funding channel.

Taxation on Foreign investors investing in NCDs issued by Indian companies was also increased this year.

The concessional tax rate of 5% on external commercial borrowing is also set to go away by the end of June 2023.

How does the HDFC twin merger help.?

The Banking sector’s exposure to HDFC Ltd is ₹1.5 lakh crores. While HDFC Ltd is an NBFC, after the merger, only a single banking entity (HDFC Bank) will remain.That exposure will no longer be counted towards the NBFC sector exposure and will free almost ₹1.5 lakh crores of limits.

Banks can utilise these limits for lending to other NBFCs bringing much needed liquidity to the sector.

How much Gold Jewellery and Ornaments you can hold legally without proof ?

As per many High Court Judgements, & CBDT Instruction No 1916,

Married Women – 500 grams
Unmarried Women – 250 grams
Male Member – 100 grams

For example, in a family consisting of a Father, Mother, Married Son & his Wife and unmarried Daughter, total 5 members can hold
2 Married Women – 500 *2 = 1000 gms
2 Male Members – 100*2 =200 gms
1 Unmarried Woman = 250*1 =250 gms
Total = 1450 gms of Gold Jewellery

The CBDT guidelines in Instruction No 1916 define the limits for Search operation and seizure and not for assessment, however, various High Court rulings considering Indian Traditions and Customs are of the opinion that such holding found in possession will not be questioned for its source and acquisition.

The quantities specified in the instruction are to be treated as reasonable and therefore explained and should not be the subject matter of additions during assessments

As per Hindu Tradition, gold is given as streedhan or inherited via Will or else received as gift during marriage or other occasions as customary practice since time immemorial. Many times the invoice or proof of buying is not available. In such cases, the limits as mentioned above can be assumed as reasonable as per Hindu traditions and the status of the family.

Note the above limits are applicable only for Gold Jewellery in the form of ornaments and not for Gold coins or bars.

Further, there is no ceiling or limit upto which you can own Gold Jewellery and Ornaments or Gold Coins or Bars provided it is acquired from the explained source of income and inheritance (Eg proof like bills and Will), meaning legitimate holding of Gold to any extent is permissible and protected.

Monthly Economic Review,March 2023

IMF forecasts elevated inflation and financial tightening to weigh on global economic activity until end of 2024.

A moderation in trade deficit and resilient service exports present prospects of narrower Current Account deficit in Q4 of FY23.

India’s recent engagements with the UAE, the UK, and Australia and launch of a new Foreign Trade Policy expected to increase global market share of the country’s exports.

Sequential growth of CPI-core in March 2023 weakest since June 2022, likely due to beginning of the pass-through of declining WPI inflation in consumer goods prices.

Easing international commodity prices, promptness of measures taken by the government, and monetary tightening by the RBI helped to rein in domestic inflation.

Inflation expectations of households and businesses anchoring with softening inflationary pressures.

Amidst global tightening of monetary policy, overarching supervision and regulatory actions to ensure financial stability in the Indian banking sector.

Growth in FY24 is likely to be underpinned by even more robust stability in the macroeconomic variables.

Increased focus on capex coupled with strong revenue generation improved States’ finances.

After SVB bank-US,turbulence shifted to European bank Credit Suisee

Credit Suisse is in crisis.

SVB turmoil is yet to resolve

What went wrong ? So, so much.

The Credit Suisse crisis demonstrates yet again the extreme fragility of the global financial system, caused by decades of central bank madness, with endless QE distorting financial markets & the real economy beyond recognition, causing massive inequality & other social ills.

This hyper-financialized regime of debt-driven “growth” cannot be sustained. The problem today is that global policymakers, particularly central bankers in the developed world, know no other playbook than yet more QE and curing extreme debt with yet more debt and bailouts.

Inflation is the inevitable consequence, and as long as inflation was confined to asset markets (stocks, bonds, real estate) it all seemed to work. We have now reached a point where the real economic distortions of decades of ultra-easy money have led to the loss of productivity.

At this point, repeating their old playbook of yet more QE & endless bailouts can only lead to an hyper-inflationary endgame. That is why I focus on basics: grow more food, build lower cost housing, affordable education & healthcare & importantly, learn to live well on less.

Back to Basics: that summarizes my approach on how to cope with the impending economic dislocations central bankers have all but ensured for the world.

Dollar denominated debt is a recipe for an eventual death spiral. We must avoid at all costs.

Decentralized Gold holdings across Indian households is truly a remarkable feature that makes us our economy very resilient to what is about to come as West debases its FX further.

Silicon Valley Bank Shut Down: Biggest Banking Failures Since 2008

The second bank to collapse in a week in the US
Will this have a contagion risk?

An overview..what happened at SVB, the problems in the US & will it affect the Indian Banking system?

In the last three months, a raft of systemic failures has hit the US economy.

As the interest rates rose failures of,
FTX
Silvergate -A US Bank dealing in crypto

And now Silicon Valley Bank-a Bank that funded start-ups in the silicon valley.

What has happened?

On Wednesday, Silicon Valley Bank was seeking to raise some funds.

Within 48 hours, a panic induced by the very venture capital community that SVB had served and nurtured ended the bank’s 40-year run.

There was a Bank run and regulators seized the Bank.

“The precipitous deposit withdrawal has caused the Bank to be incapable of paying its obligations as they come due,” the California financial regulator stated.

“The bank is now insolvent.”

Why did the Bank become insolvent?

The crux of the problems started when the US Fed dramatically started to raise Interest rates from 0% to about 5% in a matter of 6 months.

The most aggressive rate hiking campaign in four decades.

SVB was one of the most prominent lenders in the world of technology start-ups,

Most of the deposits of 175 Billion came from startups!

As the interest rates continued to move up.

Start-ups found it hard to raise funds from VC.
chilly environment for IPOs and private fundraising caused problems for the start-ups to survive.

This meant the start-ups wanted to get back the deposits they had parked with SVB.

Had to sell US treasury at a Loss:-

In 2020 and 2021 SVB saw a huge influx of deposits.

So where could they park the money?
So they invested this money in Mortgage Based Securities (MBS).
Which matures typically in 10+ years. They got 1.5%.

Bond prices are inversely proportional to Interest rates.When Interest rates move up.Bond prices fall.

As Fed started a crazy interest rate hike cycle.
The bond value of the bonds that SVB held with a duration of 3.6 years started to fall.

At the same time, the start-ups who were starved for cash wanted to withdraw the deposits.

So SVB found itself short on capital.

So what could it do?

SVB started liquidating its Bond portfolio at a loss.

It sold $21B of the portfolio at about a $1.8B Loss.

As if this was not enough.

The Bank said it would require Equity Capital to shore up capital requirements.

It proposed $ 1.25 billion of Equity Shares be issued.

Selling the US treasury binds at a loss
Raising Capital in a hurry

This meant that there was a panic from the depositors and there was a run on the Bank.

This forced the California Authorities to take action.

Thanks to the bank run that ended in SVB’s seizure, those who remained with SVB face an uncertain timeline for retrieving the money.
Insured deposits will be available by Monday
Lion’s share of deposits held by SVB were uninsured, it’s unclear when they will be freed up.

Did the Bank insiders know about the problems?

Silicon Valley Bank CEO, CFO and CMO sold +$4.4MM in stock over the last 2 weeks.

This even as the bank released a mid-quarter update that things were fine.

How is the Indian Banking system Shaping up?

The Indian Banking system is as strong as ever-

We are in a credit upcycle:

NPA is low
Provisioning is less
Credit growth is strong
Banks have absorbed the losses that come from interest hikes without much problem

The RBI has learnt from the recent Yes Bank and DHFL failures to strengthen monitoring systems for all Banks.

Most Banks were faced to raise capital during Covid-19 and face no challenges on the capital side of it.

The Banking system is as resilient as ever.!

Conclusion:-

SVB, failure where the system failed to estimate the risks associated with High-interest rates.
As Interest rates continue to be high in the US more such accidents can happen.
India on the other hand has had its own share of banking failures since 2018.
The RBI has learnt its lessons from the Bank failures and has put measures in place that have made sure financial stability is not at risk for the Indian Banking system.

Compiled By: shailesh

ITR filing :An understanding of AIS, TIS, and 26AS

Taxpayers before filing your Tax Returns, you should know what is AIS, TIS, and 26AS, along with the difference between them and what to do in case of discrepancies.

The AIS is a detailed statement that lists all of your financial transactions for a given financial year like interest, dividends, stock trades, mutual fund activities, international remittance details, etc. A taxpayer can download data in formats of PDF, JSON, and CSV.

The objectives of AIS are:
• Display complete information to the taxpayer with a facility to capture online feedback
• Promote voluntary compliance and enable seamless prefilling of return
• Deter non-compliance

The information shown on AIS is divided into two parts-
Part-A: General Information
It displays general information, including PAN, Masked Aadhar Number, Name of the Taxpayer, Date of Birth/ Incorporation/ Formation, mobile number, e-mail address, and address of Taxpayer.

PART- B: TDS/TCS Information
TDS / TCS deducted
SFT Information: Statement of Financial Transaction Code and Information
Payment of Taxes: Details of Taxes paid
Demand and Refund

You will be shown various details within the Taxpayer Information Summary such as,
• Information Category
• Processed Value
• Derived Value

Further, within an Information Category following information is shown:
• Part through which information received
• Information Description
• Information Source
• Amount Description
• Amount (Reported, Processed, Derived)

Taxpayer Information Summary (TIS) is information category-wise aggregated information summary for a taxpayer. It shows the processed value and derived value under each information category (e.g. Salary, Interest, Dividend, etc.)

Difference Between AIS And Form 26AS:
At present, Form 26AS primarily displays property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year.

Elsewhere, AIS is a much more detailed comprehensive statement.

In Case You Have An Error In AIS
To submit the feedback in the AIS section, the AIS Consolidated Feedback file (ACF) gives the taxpayers a facility to view all their AIS feedback

Click on the relevant information category, and choose the button ‘Optional’ to submit the feedback.

Do note that the information in the AIS will be displayed only after the reporting entities furnish the information to the I-T department. There may also be instances when the data of a particular period is not updated.

Taxpayer Should Refer To AIS At The Time of Filing of ITR ?

Form 26AS vs AIS, the taxpayer can rely on the information displayed in Form 26AS for the return filing, or actual detail as per transaction in the bank which is true and correct.

Revise Returns if later found AIS information.

If you have already filed your ITR and then found additional information in the AIS, you can file a revised return based on the information displayed in the AIS.

THE SYSTEM IS THE PROBLEM

Synopsis: Inflation, Food Price, Fuel Price, Basically all Price

☑ No of our political leaders have said that we are suffering from inflation but so it’s the rest of the world. It’s not true, there are a couple of countries in the world that have inflation as high as we do but most of the world has lower inflation. Some countries have inflation below 2% while ours is above 6%. Among the countries would you be interested to know have below 2% rate of inflation are China & Japan. So don’t tell us we can’t manage it. It’s all about leadership.RBI can’t manage it though that’s the job of RBI.

☯ what is this all about?

We are told by business and remember it’s business that raises the price. Workers don’t have control over the price, employers do. Employers who are 1% of the population have the power to raise that the other 99% have to pay without having any role in deciding why they are. There is nothing Democratic about inflation. The only thing they make, call a Democratic because most of the masses suffer from it. Employers can raise the price to offset the extra price burden they face. The workers are never in a comfortable position.
That’s why today the inflation is 6% and what about rate of increase in wages,not even close to inflation.

☯ Explanation employers gives us.

1) Supply Chain Disruptions

2) Inherit Risks- like War, Flood, Drought, Pandemic, Epidemic, etc.

It’s the job of the capitalist to anticipate and manage the risk they should have mastered. In every business school curriculum one of the justifications for capitalist is. Why they deserves big salaries and profits the company generates because they have to manage risk.

Well guess what !

If the inflation is caused by supply chain disruptions or uneven demand/market fluctuations means they are not managing risk. Every capitalist knows that the supplies can be interrupted rains can do that, civil unrest can do that, and an accident can do that. You are supposed to have back plans. You are supposed to have buffer stock so that can keep delivery even when there are disruptions. They are raising prices because it enhances their profits.No risk is going up.

☯ RBI’s way of curbing inflation

The inflation is now attended by raising interest rates.

When you raise interest rates you are hoarding borrowers and who are borrowers..?
Everybody who borrows to buy a – home, car, credit card or for education, and so on. Raising interest rates lacks borrowers. That’s masses of we people.CEOs don’t worry about rising interest rates because they are earning a handsome salary and they have job security too. But if masses of people respond to rising interest rates by cutting expenditure that will destroy many businesses. The inflation destroyed jobs and now rising interest rates destroying jobs. This is the way inflation is managed.

This is an economic system that tells us that it can only solve a particular way and we have to notice that the mass of the people is on the short end of the stick. You can call economic policy all you want but you know what it is. It’s class warfare. The warfare of 1% who are dumping their problems on 99%.

Let the Voters 🗳️ Be Aware

Welfare Schemes influences India’s elections.

Do they aid development..?

Handouts containing subsidize policies are thrown around in an attempt to attract votes, but do they come at the opportunity cost of long-term investment in public goods or basic entitlement of citizens.

Are the political parties are legally bound to fulfill their Manifesto/Campaigning promises..?

No political party is addressing concerned basic issues with Health, Education, Poverty eradication, Social Security, Natural Justice, Corruption, etc & concrete viable policy initiatives for them.

The manifesto consists of freebies which is sweet poison for voters & promises which is not going to be true.- (parties are not accountable for this)

Campaigning is going on the basis of blame game & historical events which are not going to change the aforementioned issues.

It is the election of the largest 🇮🇳 democracy.

The Journey Begins

Thanks for joining me!

Good company in a journey makes the way seem shorter. — Izaak Walton

post