Month: July 2023

ESPN layoffs 20 employees including commentators

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

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ESPN laid off 20 employees on Friday according to the Washington Post which included on-camera positions. The network’s top NBA colour commentator, former coach Jeff Van Gundy and reporter Suzy Kolber were amongst those who were laid off.

ESPN president Jimmy Pitaro had announced on April 24 about the sports news network’s plan of slashing an unspecified number of employees which would will primarily affect management positions,  according to the Sports Business Journal.

This announcement comes two days after the National Geographic magazine laid off its remaining staff writers. This round of layoffs were the fourth since 2015 and the second in the last nine months.

As many as 19 writers lost their jobs on Wednesday, in a move by the parent company Walt Disney. It had notified them in April that the layoffs were coming, as per The Washington Post. Disney also removed six top editors in a revamp of the magazine’s editorial operations.

ALSO READ: Explained: The format of the world’s first and largest official franchise chess league

Disney also got rid of six top editors in a revamp of the magazine’s editorial operations. It has also been reported that National Geographic will now approach freelancers for writing articles or the few editors left on board.

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

Indians need to declare foreign remittances till Oct 1, false info can attract action

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

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Indians sending forex abroad or availing overseas tour packages between April 1, 2023, and October 1, 2023, will need to make a declaration to the government through their forex dealers, according to a circular issued by the government on June 30. The declarations will cover the amount of foreign remittances done by them before October 1.

“Since the facility to provide real time update of remittance under LRS by remitter is still under development by the RBl, it is clarified that the details of earlier remittances under LRS by the remitter during the financial year may be taken by the authorised dealer through an undertaking at the time of remittance,” the circular said.

The government will also hold the forex spender liable for misreporting or incorrect submissions. “…for any false information in the undertaking, appropriate action may be taken against the remitter under the Act,” the government circular says.

The circular also clarifies if the forex or the authorised dealer as the case maybe, “correctly collects the tax at source based on information given in this undertaking, he will not be treated as “assessee in default”.

In other words, both the remitter as well as the authorised dealers are accountable for correct submission of remittance amounts incurred in 2023-2024 and appropriate tax collected at source.

The circular also says tour operators will have to follow a similar methodology of taking an undertaking from the buyer of overseas tour programme package.

The government has also amended FEMA rules to exclude use of international credits cards while outside India.

Also read: FAQ on TCS on foreign remittance: LRS limit for overseas spend, applicability for different purposes and more

“Nothing contained in rule 5 shall apply to the use of International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India,” a notification by the government of India said.

These moves from the government come days after it announced that the higher rate of tax collected at source (TCS) for foreign remittances would be levied from October 1, 2023 as against April 1, 2023 as announced in the Budget.

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

Aadhaar-PAN linking deadline ends, but tax dept to consider cases where penalty paid but seeding not done

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

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The income tax department on Friday issued a clarification on Aadhaar-Permanent Account Number (PAN) linking. According to this, individuals who have paid their penalty for linking the two and consent has been received but linking is not done till June 30, 2023, then such cases will be considered by the income tax department before making the PAN inoperative.

It is important to note that if PAN is not linked by Aadhaar by June 30, 2023, then PAN will become inoperative. This would mean that an individual will not have a valid PAN wherever quoting of same is mandatory.

The tax department further mentioned that instances have come to notice where PAN holders have faced difficulty in downloading the challan after payment of fee for Aadhaar-PAN linking.

“In this regard, it is to be informed that status of challan payment may be checked in ‘e-pay tax’ tab of portal after login. If a payment is successful, then PAN holder can proceed to link PAN with Aadhaar,” it said on its official Twitter handle.

It must be noted that the income tax law to link Aadhaar and PAN came into effect from July 1, 2017. Since then the deadline to link the two has been extended many times, the last of which ended on June 30.

As of now, it is understood that if both are not seeded, PAN would become inoperative from July 1, 2023. As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar.

Users should note that while income tax returns can be filed even without linking the two, the department does not process the returns until PAN and Aadhaar are linked. This will also lead to an individual’s KYC being incomplete as a PAN card is one of the necessary documents required for the completion of KYC. This will, in turn, impact one’s bank account savings.

Additionally, if the individual earns interest on savings above Rs 10,000, then the tax deducted at source (TDS) rate levied will be 20 percent as TDS levied on a bank account without a PAN card is doubled.

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

TCS on foreign remittance new FAQ: LRS limit for overseas spend, applicability for different purposes and more

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

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The government on Friday issued a circular to remove the difficulty in the implementation of changes relating to Tax Collection at Source (TCS) on Liberalised Remittance Scheme (LRS) and on the purchase of overseas tour program packages. This came two days after Finance Ministry deferred the implementation of higher TCS rate of 20 percent on expenditures made under LRS and overseas tour packages till September 30. The new rates will come into effect from October 1.

Additionally, the use of international credit cards while abroad has been excluded from LRS and will not be subject to TCS.

Also read: Indians need to declare foreign remittances till Oct 1, false info can attract action

Under LRS, an individual can remit up to $250,000 in a financial year. One can remit money overseas for expenses such as travel, business trips, going abroad for employment, medical purpose, education, gift or donation, emigration, maintenance of close relatives, and any other current account transactions (CAT) as per Rule 5 of the Foreign Exchange Management (CAT) Rules, 2000.

With so many circulars in place, there has been confusion regarding the exact implementation of new LRS and TCS rules. Clarifying those, the government has released a new FAQ with details. Let’s look at these:

[faq][ques]Whether payment through overseas credit card would be counted in LRS?[/ques][ans] The classification of use of international credit card while being overseas, as LRS is postponed. Therefore, no TCS shall be applicable on expenditure through international credit card while being overseas till further order. The declaration and tax do not apply to money spent abroad via credit cards[/ans][/faq]

[faq][ques]Whether the threshold of Rs 7 lakh for TCS become applicable on LRS, applies separately for various purposes like education, health treatment and others?[/ques][ans] The threshold of Rs 7 lakh for LRS is combined threshold for applicability of the TCS on LRS irrespective of the purpose of the remittance. TCS is not required if the amount or aggregate of the amounts being remitted by a buyer is less than Rs 7 lakh in a financial year. The amendment by the Finance Act, 2023 has only restricted it to education and medical treatment purpose. Now, after press release, old position has been restored and the threshold continues to apply for Rs 7 lakh in a financial year, irrespective of the purpose.[/ans][/faq]

[faq][ques] Since there are different TCS rates on LRS for the first six months and next six months of the financial year 2023-24, whether the threshold of Rs 7 lakh, for the TCS to become applicable on LRS, applies separately for each six months?[/ques][ans] No. The threshold of Rs 7 lakh, for the TCS to become applicable on LRS, applies for the full financial year. lf this threshold has already been exhausted; all subsequent remittances under LRS, whether in the first half or in the second half, would be liable for TCS at applicable rate.[/ans][/faq]

[faq][ques]Whether the threshold of Rs 7 lakh, for TCS to become applicable on LRS, applies separately for each remittance through different authorised dealers? If not, how will authorised dealer know about the earlier remittances by that remitter through some other authorised dealer?[/ques][ans]TCS is not required if the amount or aggregate of amounts being remitted by a buyer is less than Rs 7 lakh in a financial year. Since the facility to provide real time update of remittance under LRS by remitter is still under development by the RBl, it is clarified that the details of earlier remittances under LRS by the remitter during the financial year may be taken by the authorised dealer through an undertaking at the time of remittance. lf the authorised dealer correctly collects the tax at source based on information given in this undertaking, he/she will not be treated as “assessee in default”. However, for any false information in the undertaking, appropriate action may be taken against the remitter under the Act.[/ans][/faq]

[faq][ques]There is threshold of Rs 7 lakh for remittance under LRS for TCS to become applicable while there is another threshold of Rs 7 lakh for purchase of overseas tour programme package where reduced rate of 5 percent TCS applies. Whether these two thresholds apply independently?[/ques][ans]Yes, these two thresholds apply independently. For LRS, the threshold of Rs 7 lakh applies to make TCS applicable. For purchase of overseas tour programme package, the threshold of Rs 7 lakh applies to determine the applicable TCS rate as 5 percent or 20 percent.[/ans][/faq]

[faq][ques]A resident individual spends Rs 3 lakh for purchase of overseas tour programme package from a foreign tour operator and remits money which is classified under LRS. There is no other remittance under LRS or purchase of overseas tour programme during the financial year. Whether TCS is applicable?[/ques][ans]In case of purchase of overseas tour programme package which is classified under LRS, TCS provision for purchase of overseas tour programme package shall apply and not TCS provisions for remittance under LRS. Since for purchase of overseas tour programme package, the threshold of Rs 7 lakh for applicability of TCS does not apply, TCS is applicable and tax is required to be collected by the seller. In this case, the tax shall be required to be collected at 5 percent since the total amount spent on purchase of overseas tour programme package during the financial year is less than Rs 7 lakh. The TCS should be made by the seller.[/ans][/faq]

[faq][ques]There are different rates for remittance under LRS for medical treatment/education purposes and for other purposes. What is the scope of remittance under LRS for medical treatment and education purposes?[/ques][ans]As per the clarification by the RBI, remittance for the purposes of medical treatment shall include, (i) remittance for purchase of tickets of the person to be treated medically overseas (and his attendant) for commuting between India and the overseas destination; (ii) his medical expense; and (iii) other day to day expenses required for such purpose. In case of education, remittance for the purpose of education shall include, (i) remittance for purchase of tickets of the person undertaking study overseas for commuting between India and the overseas destination; (ii) the tuition and other fees to be paid to the educational institute; and (iii) other day to day expenses required for undertaking such study.[/ans][/faq]

[faq][ques]Whether purchase of international travel ticket or hotel accommodation on standalone basis is purchase of overseas tour programme package?[/ques][ans]The term ‘overseas tour programme package’ is defined as to mean any tour package which offers visit to a country or countries or territory or territories outside India and includes expenses for travel or hotel stay or boarding or lodging or any other expenditure of similar nature or in relation thereto. It is clarified that purchase of only international travel ticket or purchase of only hotel accommodation, by in itself is not covered within the definition of ‘overseas tour programme package’. To qualify as ‘overseas tour program package’, the package should include at least two of the following : (i) international travel ticket, (ii) hotel accommodation (with or without food)/boarding/lodging, (iii) any other expenditure of similar nature or in relation thereto.[/ans][/faq]

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