E India CA

Professional Updates for Chartered Accountants

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‘Please take it’: Vijay Mallya offers to ‘repay 100%’ to banks

Businessman Vijay Mallya, undergoing extradition trial in a UK court over fraud and money laundering charges by Indian authorities, has offered to pay back “100% of the principal amount” owed to banks. In a series of tweets, Mallya, said: “I am offering to pay 100% back. I humbly request the banks and government to take it.” ...

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Govt can’t take away RBI reserves without amending RBI Act

The government cannot force the central bank to part with its reserves without an amendment to the Reserve Bank of India Act, 1934, a person aware of the matter said. Under Section 47 of the RBI Act, only surplus profits can be transferred, and transferring reserves will require an amendment to the Act. Section 47 says that “aft...

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Dividend up to 10 lakh from shares exempt

To claim Foreign Tax Credit, you must submit a statement of foreign income and tax deducted on income, in Form 67 Say person A is in Germany from December to March. He earned money in Germany in the form of salary. Now he has ₹16 lakh as his total income in Germany after conversion, according to RBI rates, out of which ₹4 lakh i...

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RBI Vs Government: Protecting Depositors, Taxpayers Is Public Interest, Says Central Bank

Amid speculation that the government may have invoked a hitherto unused section to overrule the Reserve Bank of India (RBI) on the pretext of "public interest", the central bank has shot back with its own definition of "public interest". Reserve Bank Deputy Governor N.S. Vishwanathan, in a recent speech, said when a bank is trying t...

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RBI vs Government: Not the last word

News reports on Wednesday suggested that the government has invoked Section 7 of the Reserve Bank of India (RBI) Act, 1934, and RBI governor Urjit Patel could be on his way out. The finance ministry did well to put out a statement to control the damage, at least for now. It is unlikely that the rift has ended; we are yet to see t...

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Opinion | The ball was always in the government’s court

Amid speculation that Reserve Bank of India (RBI) governor Urjit Patel might quit, the government did well on Wednesday to issue a statement, highlighting that the autonomy of the central bank is essential. This should help defuse tension, at least for now. Uncertainty in the market went up with reports that the government had invok...

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Banks Allowed To Lend More To Some Non-Banking Financial Companies

The limit has been raised from 10 per cent and is effective up to December 31, RBI said.The central bank on Friday increased lenders' single borrower exposure limit for non-banking financial companies (NBFCs) which do not finance infrastructure, to 15 per cent of capital funds. The limit has been raised from 10 per cent and is e...

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The history of the contentious ‘RBI Act Section 7’

No government has so far invoked Section 7 of the RBI in the Reserve Bank of India’s 83-year history Section 7 (1) of The Reserve Bank of India Act, 1934, became a contentious issue after the tension between the central bank and government turned into a public spat over the last few days. No government has so far invoked this ...