Month: May 2020

Explained: What’s behind latest India-China border tension

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tensions along the China-India border high in the Himalayas have flared again in recent weeks.

Indian officials say the latest row began in early May, when Chinese soldiers entered the Indian-controlled territory of Ladakh at three different points, erecting tents and guard posts. They said the Chinese soldiers ignored repeated verbal warnings to depart, triggering shouting matches, stone-throwing and fistfights. China has sought to downplay the confrontation while providing little information.

A look at the history and current relations between the two countries and how events may develop:

Brawling troops

Over recent weeks, thousands of soldiers from the two countries have been facing off just a few hundred meters from each other in Ladakh’s Galwan Valley. China has objected to India building a road through the valley connecting the region to an airstrip, possibly sparking its move to assert control over territory along the border that is not clearly defined in places.

Analyst Chris Biggers said that a Chinese airport nearby has steadily expanded its military use over the past year with the deployment of a surface-to-air missile battery and four fighter jets. He said recent satellite imagery of Ngari Günsa shows workers constructing a taxiway, parking ramps and “quick reaction alert aprons” but falling short of adding a second runway.

While a brawl between Chinese and Indian troops has been captured on video, Chinese foreign ministry spokesperson Zhao Lijian said Wednesday that the border situation was “generally stable and controllable.”

The sides were communicating through both their front-line military units and their respective embassies to “properly resolve relevant issues through dialogue and consultation,” Zhao said at a daily ministry news briefing in Beijing.

India and China engaged in a similar standoff for 73 days at Doklam, at the other end of their disputed border, in 2017, when Indian troops were mobilized to counter what was seen as moves by the Chinese side to expand its presence along the border with Bhutan. The situation was later defused through diplomatic channels.

War and peace between two Asian giants

The sides established diplomatic relations in 1950, but a 1962 border war between them set back ties for decades.

In all, China claims some 90,000 square kilometers (35,000 square miles) of territory in India’s northeast, including the Indian state of Arunachal Pradesh with its traditionally Buddhist population. India says China occupies 38,000 square kilometers (15,000 square miles) of its territory in the Aksai Chin Plateau in the western Himalayas, including part of the Ladakh region.

Relations are also strained by India’s hosting of the exiled Tibetan spiritual leader, the Dalai Lama, who fled his homeland in 1959 during an aborted uprising against Chinese rule. The Dalai Lama established a self-declared government-in-exile in the northern Indian town of Dharmsala, where thousands of Tibetans have settled.

Efforts for a resolution

In 1993, the two countries signed an agreement on the “Maintenance of Peace and Tranquility” along what is known as the Line of Actual Control along their border.

But they are nowhere near to settling their dispute despite more than 20 rounds of talks along with multiple meetings between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping.

Beijing’s support for Pakistan on the issue of Kashmir is also a major cause of concern for India. China has built a road through Pakistani-controlled Kashmir and is blocking India’s entry into the Nuclear Suppliers Group by insisting on Pakistan’s simultaneous entry.

India’s refusal to participate in Xi’s signature foreign policy initiative, the multibillion-dollar Belt and Road Initiative, hasn’t gone down well with China, while Beijing has paid only lip service to New Delhi’s aspirations to join the UN Security Council as a permanent member.

Economic rivalry amid growing trade

Despite the sporadic border clashes, economic ties between the two have expanded in the past decade, with China exercising a large trade surplus.

More than 100 Chinese companies, many of them state-owned, have established offices or operations in India, according to India’s External Affairs Ministry. Chinese firms including Xiaomi, Huawei, Vivo and Oppo occupy nearly 60 percent of India’s mobile phone market, while India’s major exports to China lean toward cotton, copper and gemstones.

Trade volume rose to more than $95 billion in 2018, and passed $53 billion in the first half of 2019, with almost $43 billion of that being Chinese exports to India. The imbalance has contributed to a push by India to capitalise on China’s rising costs and deteriorating ties with the United States and European nations to become a replacement home for large multinationals.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

UP issues lockdown extension rules; malls, restaurants to open from June 8

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The UP government on Sunday issued guidelines for the lockdown extension, allowing malls and restaurants to open from June 8.

It also said there would be no ban on interstate and intra-state movement by persons or goods.

At the same time, the order said there will be a ban on the movement of people from the containment areas in Delhi to the NCR areas of Gautam Buddh Nagar and Ghaziabad.

Below are the highlights.

Stage 1

Shopping Malls, Restaurants & Hospitality to be allowed from June 8th; Separate Guidelines to be issued

Stage 2

Proposed to open Educational Institutions from July 2020; Separate Guidelines to be issued

Stage

Prohibited till further Notice: Metro, International air services, Cinema halls, Gym, Swimming pools , Theatre, bars

Delhi to Gautam Buddha Nagar, Ghaziabad

– Restrictions to continue for residents of Delhi Containment Zones
– District Administrations to release separate guidelines on Movement of People from Delhi

Night Curfew

9 pm to 5 am

Containment Zones

Urban:

Single Case – An area of 250 metre/ locality whichever is smaller
Multiple cases – An area of 500 metres, 250 meters buffer zone

Residential Societies

Cases in one floor: The specific residential Tower will be sealed
Multiple Cases in Society: All Residential Towers to be sealed

Workplaces

Workplace to be sealed for 25 hrs for sanitisation when +ve case detected

Cost of sanitisation of workplace to be borne by Tenant

Multi-Storied buildings:
Cases in a single floor: Specific floor to be sealed
Cases in multiple floors: Full building/tower to be sealed

Rural
Single Case: Specific area within the village
Multiple Cases : Entire Village, Neighbouring villages to be buffer zones

Only essential services, health workers allowed in containment zones

Public Parks allowed between 5 am to 8 am and 5 pm to 8 pm

UP Govt / Private / City buses allowed but no standing allowed

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Karnataka allows intra-state movement, will issue separate orders for incoming inter-state travel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Karnataka issued guidelines for reopening of the lockdown starting June 1, but said the Department of Health and Family Welfare will issue separate orders for inter-state travel to the state.

Karnataka said on Sunday that movement by passenger trains and Shramik special trains and domestic passenger air travel will continue to be regulated as per the standard operating procedure issued.

Karnataka will allow places of worship, hotels and restaurants, and shopping malls to open in the state starting June 8, in keeping with the Ministry of Home Affairs guidelines.

The MHA in its guidelines had said there will be no restrictions on inter-state and intra-state movement of persons and goods. However, the central government has let states regulate movement of people based on public health, but has asked that states should give ‘wide publicity in advance’ if there are restriction placed.

Karnataka has over recent weeks frequently changed its stance on inter-state travel. The state had on May 19 said it would ban travel from states with high-prevalence of COVID-19 cases, such as Maharashtra, Tamil Nadu and Gujarat.

However, when domestic flights resumed on May 25, Karnataka allowed flights into the state, but mandated institutional quarantine for passengers coming from six states – Maharashtra, Delhi, Tamil Nadu, Rajasthan, Gujarat and Madhya Pradesh.

Later in the week, the state government said it was requesting the Ministry of Civil Aviation to reduce flights to Karnataka. This came after temporary confusion on whether the state was banning flights from a few states.

Karnataka saw its highest single day spike in cases with 299 positive cases recorded on Sunday. Over 80% of the cases were among those who had returned from Maharashtra.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Low pressure area formed over Arabian Sea likely to intensify into cyclonic storm; to move towards Maharashtra, Gujarat by June 3

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A low-pressure area is formed into the Arabian sea which might develop into a cyclonic storm and could move towards the coasts of Maharashtra and Gujarat by June 3, a Met statement said on Sunday.

“A low-pressure area has formed over the southeast and adjoining east-central the Arabian Sea and Lakshadweep area with associated cyclonic circulation extending up to mid-troposphericlevels,” the regional Meteorological Centre, Mumbai, said in a tweet.

If the storm does get classified as a cyclone it will be named Nisarga as per IMD’s new list of upcoming cyclones in the Indian Ocean.

The met department said the low-pressure area might turn into a depression and then into a cyclonic storm, which is “very likely to move nearly northwards and reach north Maharashtra and Gujarat coasts by June 3”.

“It is very likely to concentrate into a depression over east-central and adjoining southeast Arabian Sea during the next 24 hours,” it said.

The arrival date for monsoon in Kerala is around June 1 every year and in Maharashtra around June 10.

On Saturday, a private forecasting agency claimed that monsoon has already hit Kerala, but the assertions were quickly rebutted by the Ministry of Earth Sciences.

“The news about monsoon onset over Kerala in Social Media is not correct. Monsoon has not arrived over Kerala. The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge a”Stephen Hawking,” said Madhavan Rajeevan, Secretary, Ministry of Earth Sciences.

Kuldeep Srivastava, the head of IMD’s Regional Weather Forecasting Centre said that the formation of a low-pressure system in the Arabian Sea and its movement towards the Gujarat coast will bring moisture to Delhi-NCR and northwest India from June 3.

Two storms are forming over the Arabian Sea, one lies off the African coast and is likely to move over Oman and Yemen, while the other is placed close to India.

The development comes almost ten days after ‘Amphan’ pummeled four districts of Bengal in the fiercest cyclone in the region in a century, that left 86 people dead and rendered ten million people homeless.

(With inputs from PTI & IANS)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Is ‘digital lending’ an opportunity for NBFC?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Authored by Veena Sivaramakrishnan and Utkarsh Bandhu

With the mantra of “financial inclusion”, credit reach to the vast Indian population has been an economic concern and financial institutions have viewed this untapped market as a potential growth opportunity.

As last mile outreach is a challenge, better internet connectivity and access to financing at the fingertips of a smartphone plays a huge role. NBFCs have been at the forefront of this revolution and are either “digital” or have tied up with various digital platforms in order to connect with potential market participants.

This has also garnered interest on account of COVID -19 pandemic.

On June 24, 2020, the Reserve Bank of India (“RBI”) issued a notification dealing with loans sourced by banks and NBFCs over digital platforms. RBI has considered the existing practice of an outsourcing arrangement and mandated that to the role that is played by the digital platform and the NBFCs.

The notification reiterates the principles of privity between the NBFC and the borrower within the existing regulatory framework and the need for “best practices” in the digital lending world.

Road ahead

The crucial change on account of digital lending is the ease in the operational processes. Gone are the days of lengthy loan agreements, executing each page, multiple visits to lenders, etc. Loan at fingertips started with catering to borrowers looking for small loans, but once the processes are set up, the quantum will be immaterial. It is widely believed that digital lending platforms have the potential to change the landscape of retail lending in the days to come.

While there are platforms which provide the “matchmaking” facility for a NBFC and a Borrower, RBI as it regulates the NBFCs as a lender, has reiterated that the guidelines on outsourcing of financial services, continues to apply for digital lending. The NBFC continues to be ultimately responsible for the activities which are outsourced by it.

Key Parameters

NBFCs using digital lending platforms need to be mindful of the following:

• Disclose if it has its own digital platform or if it has a third party digital platform (if latter, it needs to be specified that the platform is not the lender);
• Even if the third party digital platform is an “aggregator”, the NBFC and the digital platform must execute an outsourcing arrangement;
• Adherence to Fair Practices Code is critical;
• NBFCs should own the loan documentation and vet the same (not outsource it);
• NBFCs should own the information relating to the financing extended by it to the borrower on the platform and ensure that there is no misrepresentation/ miscommunication;
• As confidentiality of the customer information is a major concern, the outsourcing arrangement must specifically provide protection to customer data, even post termination of the arrangement; and
• Recovery is an inherent part of lending and NBFCs which use the digital platform and its outreach for recovery must have code of conduct for operations of recovery agent.

Third party digital platforms – Caution

• NBFCs are ultimately “only” responsible for the “activities outsourced” to digital platforms.
• Some of the factors which the third party digital platforms must note include:
• There should be no miscommunication or misrepresentation in relation to the loan, specifically the rate of interest and reset or the role of the platform itself.
• Digital platforms must bear in mind that lending is a regulated activity in India and carrying on or even representing that they are carrying on such activity, without disclosing the role of the NBFC, could lead to contravention of RBI norms and may attract penal action;
• If the digital platform has a tie up with more than one NBFC, then the products being extended by a relevant NBFC must be clearly specified;
• In case of algorithms being used for selecting the right lender for a particular Borrower, transparency is the key. The say that a borrower has in selecting the lender (and vice versa) must be clear; and
• If the digital platforms are further outsourcing their services, it should be ensured that such sub delegation is not restricted and an agreement is executed on similar terms.

The development in the digital lending space is rapid and many new players are being innovative and making a mark in this sector. While focusing on technological advancement for better customer convenience and experience, ensuring compliance with regulations and laws at the onset would be critical to ensure sustainable growth.

Veena Sivaramakrishnan is Partner and Utkarsh Bandhu is Principal Associate, Shardul Amarchand Mangaldas & Co. Views are personal

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Maharashtra Lockdown 5.0 Guidelines: What’s allowed, what’s not

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Maharashtra government today issued the lockdown extension guidelines while offering significant relaxations in non-municipal areas and allowing a phased restart in municipal areas.

Activities will continue to remain severely restricted in containment zones. “The containment zone will be residential colony, mohall a, slum, building, group of buildings, lane, ward, police station area, villages, small cluster of villages etc. Anything larger than this (eg. Whole taluka/ Whole Municipal Corporation etc.) can be declared as containment zone only after consultation with Chief Secretary,” the government said.

Municipal areas include the Municipal Corporations of MMR Region including MCGM, Municipal Corporations of Pune, Solapur, Aurangabad, Malegaon, Nashik, Dhule, Jalgaon, Akola, Amravati and Nagpur.

Here’s a ready reckoner of what’s allowed and what’s not as issued by the Maharashtra government.

The following activities will continue to remain prohibited across the state: Schools, colleges, educational, training, coaching institutions, international air travel of passengers, metro rail, cinema halls, gymnasiums, swimming pools, entertainment parks, theatres, bars and auditoriums, assembly halls and similar places. Social, political, sports/entertainment, academic/cultural, religious functions and large congregations. Religious places/places of worship for public. Barber shops, spas, saloons, beauty parlours. shopping malls, hotels, restaurants and other hospitality services.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Yes Bank dispute: Madhu Kapur & family give up promoter status, Rana Kapoor next?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Its curtains down for the longstanding Kapoor versus Kapur dispute at Yes Bank. Madhu Kapur and family have now relinquished their status as promoters of the bank, less than three months into the bank’s bailout.

Yes Bank on Saturday informed exchanges that it “received a letter dated May 28, 2020 (Received on May 29, 2020) from (i) Mrs. Madhu Ashok Kapur; (ii) Mrs. Shagun Kapur Gogia; (iii) Mr. Gaurav Ashok Kapur; and (iv) Mags Finvest Private Limited [collectively referred to as “Madhu Kapur Group”] consenting to reclassify their shareholding in the Bank as ‘non-promoter shareholders’ (i.e. public shareholders).”

The Bank said it would take further necessary action to give effect to the above.

The family collectively holds a 1.42 percent stake in the bank, as per the latest shareholding data. Madhu Kapur and family held a 1.12 percent stake in Yes Bank, and their family-controlled entity Mags Finvest Private Limited held another 0.30 percent stake as of March 31, 2020. Rana Kapoor, on the other hand, sold most of his stake in the bank to repay debts, and now holds only 900 shares. The same Kapoor had once famously claimed that his shares in the bank were like “diamonds”, and he would hold onto them forever.

The notification did not mention the status of Rana Kapoor, founder and co-promoter of the 16-year old bank.

When asked the reason for this dramatic change in the promoters’ position, a senior official of Yes Bank clarified to CNBC-TV18 “Once the government-approved reconstruction scheme for Yes Bank was implemented, then there is no promoter. De-classification in a sense has been done by the government through their reconstruction scheme. Since Madhu Kapur family sent the bank this letter, we disclosed it on exchanges as part of SEBI’s LODR (Listing Obligations and Disclosure Requirements).” This person added, “It could be their (Madhu Kapur family) interpretation of the law, maybe that’s why this consent letter was sent. There’s nothing else to read into this.”

CNBC-TV18 also contacted Shagun Gogia, former board member of Yes Bank, and co-promoter Madhu Kapur’s daughter about this move.

Gogia told CNBC-TV18, “The bank approached us to ask if we would consider giving our consent for being de-classified as promoter…The bank is looking to raise capital, and the new investors have to be given full disclosure on promoters. So therefore the bank requested us to help to make the capital raising process simpler, and we said sure whatever is in the interest of the bank.” She also clarified that she no longer holds a board position at Yes Bank since the board was reconstituted and remains a non-promoter public shareholder.

After Madhu Kapur, Rana Kapoor is also expected to be de-classified as a promoter of the bank. “Whether Rana Kapoor gives his consent or not, he can no longer remain a promoter,” said the Yes Bank official quoted earlier on the condition of anonymity.

Rana Kapoor, currently facing ED investigations for alleged money laundering, and the late Ashok Kapur co-founded Yes Bank in 2004. Insiders say Rana Kapoor had slowly but surely side-lined Ashok Kapur’s role at the bank over the years and taken up the key responsibilities himself. After the death of Ashok Kapur in the 26/11 terror attacks on Mumbai, the dispute between the two families became public.

Rana Kapoor refused to concede to Madhu Kapur’s demand that her family is represented on the bank’s board. This led to Madhu Kapur taking her brother-in-law, Rana Kapoor​, to Bombay High Court over the matter in 2013. A long courtroom battle ensued. In 2019, by when Rana Kapoor was removed from the CEO position by the regulator, the two finally reached a settlement, and Kapur’s daughter Shagun Gogia was given a board seat.

The bank is now being helmed by its third Chief Executive Officer in less than two years. While the reconstruction is complete, the problems are far from over. Yes Bank is now looking to raise almost Rs 15,000 crores to clean up its books, strengthen its weak balance sheet.  With Madhu Kapur & family giving up their promoter status, and a similar fate awaiting Rana Kapoor, at least the Kapoor-Kapur era is well and truly behind.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Maharashtra govt implements odd-even scheme for shops as it issues guidelines to ease lockdown

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Maharashtra government on Sunday issued guidelines for the fifth phase of the coronavirus-forced lockdown in the state. The state will see a graded easing from lockdown, with the first phase beginning June 3.

The night curfew that restricts movement for non-essential activities from 9 pm until 5 am remains in place.

Persons above the age of 65, people with co-morbidities, pregnant women and children below the age of 10 years have been advised to stay indoors, except for availing essential services or for medical reasons.

The state government in an order titled “Mission Begin Again,” has allowed shops to open albeit with conditions from the second phase. Commercial establishments on one side of the road will be allowed to operate on even dates, while those on the other side will be allowed to open on odd days from 9 am to 5 pm, subject to conditions.

Activities permitted after the first phase of the easing of lockdown, beginning June 3

1. Outdoor physical activity allowed — Individual physical exercises like cycling, jogging, running, walking on public open places. No indoor areas to be used for such activities.

2. Self employed electricians, plumbers, pest-control and technicians with social distancing norms and usage of masks and sanitization.

3. Garages to mend vehicles and workshops with prior appointments.

4. All Government offices (excluding emergency, health and Medical, treasuries, disaster management, police, NIC, food & Civil Supply, FCI, N.Y.K., municipal services) with 15 percent staff.

Activities allowed after phase 2, beginning June 5

All markets, market areas & shops, except malls and market complexes, are allowed.

Shops allowed to function on PI-P2 basis (shops on one side of the road/lane/passage to be opened on odd dates while shops on the other side on even dates) from 9 am to 5 pm with conditions.

Vehicles allowed only for essential movement on 1+2 travel concept.

Taxi, cab aggregators, autorickshaws, 2 and 4 wheelers.

Activities allowed after phase 3, beginning June 8

All private offices can operate with 10 percent staff.

All activities that are not specifically mentioned are permitted.

Intra-district bus service allowed with 50 percent passengers.

Activities not allowed

1. Schools, colleges, educational, training, coaching institutions etc.

2. International air travel of passengers, except as permitted by the union home ministry.

3. Metro rail.

4. Passenger movement by trains and domestic air travel unless specifically allowed through separate orders and standard operating procedure (SOP).

5. Cinema halls, gymnasiums, swimming pools, entertainment parks, theatres, bars and auditoriums, assembly halls and similar places.

6. Social, political, sports, entertainment, academic, cultural, religious functions and large congregations.

7. Religious places/places of worship for public.

8. Barber shops, spas, salons, beauty parlours.

9. Shopping malls, hotels, restaurants and other hospitality services.

The fifth phase of the nationwide lockdown begins from June 1 and will remain in effect until June 30. The lockdown in the country began on March 25 for an initial 21 days but has been extended several times since. However, the strict measures during the first two phases of the lockdown were subsequently eased.

The total number of COVID-19 cases in the country has reached  1,82,143, with 5,164 people succumbing to the disease so far.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

New ITR forms notified: Tax dept seeks more details of expenditures, gives relief for those with income up to Rs 5 lakh

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The central board of direct taxes under the aegis of finance ministry late on Saturday notified ITR forms for financial year 2019-20 (assessment year 2020-21), bringing in some key changes.

In the notification, the finance ministry issued ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4 (Sugam), ITR 5, ITR 6, ITR 7 and ITR V forms, as per the rule changes in the Income Tax Rules 2020.

The Central Board of Direct Taxation (CBDT) had earlier notified ITR1 & ITR4 forms but they were withdrawn.

This time some of the key changes notified in the forms includes declaration from taxpayers in detail if they have paid over Rs 1 lakh in electricity bills in a year, deposited Rs 1 crore in bank account and if incurred Rs 2 lakh expense on foreign travel, in forms Sahaj ITR-1, Form ITR-2, Form ITR-3 and Form Sugam (ITR-4).

Taxpayers have also been given a dedicated column to declare their expenditures/income/ investments/donations made between April 2020 till June 2020, for which they can claim I-T benefits.

However, these benefits or declarations can be claimed only once, thus, I-T department has left it open for the taxpayers to either claim/declare this for FY20 or for FY21.

“This column was a much needed clarity, which was awaited from the income tax department. The move comes after government had announced that taxpayers can claim their investments/donations and other such expenditures made between April 2020 till June 2020 while filing their income tax returns for last financial year,” said Mukesh Patel, independent tax expert and member of task force on simplification of direct tax legislation formed by the finance ministry.

“It seems that government will yet again come up with another such column while notifying ITR forms next year, asking taxpayers to clarify whether they claimed these expenses in last financial year or not,” Patel added.

Finance minister Nirmala Sitharaman had earlier extended various deadlines under income tax provisions by a quarter from March 31, to June 30, giving regulatory relief to taxpayers to make investments, payments or donations for claiming exemptions and deductions, besides the roll over benefit of capital gains during the lockdown period.

The due date of all income tax returns for FY20 has been extended to November 30 from July 31 and October 31. The tax audit deadline has also been extended by a month to October 31.

The central government had also extended the deadline for receiving Form 16 from June 20, 2020 to June 30, 2020 via an ordinance dated March 31, 2020.

Another key change notified in tax return forms is the rebate for those who have taxable income up to Rs 5 lakh announced by then finance minister Piyush Goyal as part of his interim budget speech in February 2019.

Other changes which have also kicked in through these forms are the deduction for interest paid on affordable housing loan/ purchase of Electric Vehicle, inter-changeability of PAN and Aadhaar, reporting by certain high spenders etc, which will be there for the taxpayers.

Calling the timely notification of the forma a welcome move Amarpal Chadha, Tax Partner & India Mobility Leader, EY India said: “Pursuant to the extension of tax return filing deadline to November 30, 2020, the CBDT has taken necessary steps to timely notify income tax return forms for the tax year 2019-20. To give relaxations due to COVID, CBDT had allowed claiming of investments made during the period April 2020 to June 2020 against income of tax year 2019-20.

“There were certain doubts on the modality to claim deduction for such investments. The notified forms provide for required mechanism to claim such deductions. Also, the new forms are enabled to capture Budget 2019 amendments such as deduction for interest paid on affordable housing loan/ purchase of electric vehicle, inter-changeability of PAN and Aadhaar, reporting by certain high spenders etc.”

According to Archit Gupta, founder and CEO of Cleartax, the forms have brought in a breather for both tax practitioners and taxpayers as these forms have brought a lot of clarity.

“Taxpayers are likely to face practical difficulties with reporting amounts with respect to foreign travel and electricity consumption. Detailed instructions on ITR forms are awaited to understand how these amounts must be calculated,” said Gupta.

Kapil Rana, chairman and founder of tax solutions provider firm HostBooks Limited, said: “There are few major changes incorporated in the Income Tax Return forms released by the government. In ITR-1, Government employees have been bifurcated in State, Central Government and a new type as ‘NA added to the list.

“A New Schedule “Schedule DA” has been added in relation to the investment deposited/payment made during April 2020 till June ,2020. In ITR-4, PAN number is made optional if Aadhar number is provided; in section 44AD, one new clause added as the electronic mode in addition to electronic clearance and reduced the presumptive income from 8 percent to 6 percent.

“In section 44AE for presumptive income from goods carriages, the celling of maximum row is removed and a new validation number of vehicles should not exceed 10 vehicles at any time during the year is added. It shows the intention that the government is putting all efforts to curb the tax leakages and also allowing law-abiding taxpayers to take benefit of the spent and investments made during the difficult time even if they are done after the completion of the assessment year.

“This also shows the intention to make the process simple and smoother.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Didn’t recommend 11-digit numbering scheme for mobile phones, TRAI clarifies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Telecom Regulatory Authority of India (TRAI) on Sunday clarified that it has not recommended 11-digit numbering scheme for mobile phones. It was earlier reported that the telecom regulator had suggested expanding the current 10-digit numbering scheme to 11.

“The Telecom Regulatory Authority of India (TRAI) released its recommendations on ‘Ensuring Adequate Numbering Resources for Fixed Line and Mobile Services’ on 29^th May 2020. A press release was also issued on the same day,” TRAI said in a press release on Sunday.

It continued: “In this regard, it is observed that some media houses have reported that TRAI has recommended 11-digit numbering scheme for mobile services. It is a complete misinterpretation of the aforesaid recommendations. TRAI has not recommended 11-digit numbering scheme for mobile phones.”

The press release went on state to that TRAI has “categorically rejected shifting to an 11-digit numbering plan.”

However, the regulator has recommended prefixing 0 while making a call from a fixed line number to mobile number.

Regarding the suggestion of the 0 prefix, TRAI reasoned: “The introduction of a dialling prefix for a particular type of call is not akin to increasing the number of digits in the telephone number. This change in dialling pattern will generate 2,544 million additional numbering resources for mobile services to cater to the future requirements.”

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow