[aaykarbhavan] Business standard updates

FinMin proposes uniform duty on securities transactions

VRISHTI BENIWAL New Delhi, 12 April The finance ministry has proposed uniform stamp duty rates on transactions of securities across states. For this, it has prepared a draft Bill to amend the Indian Stamp Act, 1989. In the draft, the ministry, for example, has suggested a stamp duty rate of 0.0001 per cent of the value of transaction on the sale of currency derivatives through off- market transactions. For futures and options in the commodity exchanges, it proposed a stamp duty at the rate of 0.003 per cent. Currently, Maharashtra levies 0.0001 per cent on most transactions, while many states don't levy any stamp duty on these deals. The draft provides for payment of the duty by the seller of the security through a new system, where exchanges will collect the duty and pass it on to state governments, thereby reducing their administrative costs. "It proposes a new system of levy and collection of stamp duty on transactions related to securities by exchanges by deducting the same from the trading member's account at the time of settlement of transactions," said a finance ministry official. Currently, state government machinery collects the duty and not exchanges. In some states, the buyer pays the duty, while in some others the seller. An amendment has also been proposed to bring clarity about the value of transaction of stock and marketable securities on which stamp duty is to be charged instead of the average price or value on the day of the transaction. The draft has proposed deleting some sections, which have become obsolete and bring new definitions, introduce e- stamping, amend and enlarge the list of instruments to be stamped with adhesive stamp, pay duty on immovable property transactions on market value among others. There are modifications of provisions relating to special economic zones ( SEZs) to plug chance of duty evasion by developers, when they execute instruments not related to land. Besides, there is a provision for a review of stamp duty on instruments of mining lease, where proper discovery of price or value has not been made to prevent the loss of revenue to states within 10 years from the date of execution of such an instrument. A provision has been made to check undue advantage of different rates of stamp duty in different states. If an instrument has been produced in a state with a higher duty, the person responsible for paying the stamp duty will have to pay the differential. As per the draft Bill, authorities will have power to open books for inspection, call for information, enter premises, inspect, seize and impound documents, and make rules. The finance ministry has invited feedback on the draft Bill which may be tabled in Parliament by the next government as a consensus has been reached with states on these issues. While many states have adopted the Indian Stamps Act, certain states have their own standalone stamp laws. These states will have the right to continue with the existing system and collect more than the rates proposed by the Centre, but the finance ministry is confident that most states would adopt the model law as it was expected to result in buoyancy in revenues due to a wider tax base. "Generally states should adopt the proposed new Act. There is no reason for states not to adopt the Act," Mehul Modi, senior director Deloitte India said. NEW REGULATIONS |Stamp Duty Act of 1989 is likely to be amended |FinMin prepares draft for new Bill |Proposes uniform stamp duty rates on transactions in securities |It would be a kind of model law; states will have discretion to adopt it

 

Your tax papers are an identity thief's dream   ONLINE FRAUD Sensitive information such as PAN data can be misused to claim a fraudulent tax refund or obtain a credit card or a loan   MOHAN JAYARAMAN Identity thefts can happen in numerous ways, ranging from simple to sophisticated techniques. Phishers can send emails or text messages asking you to update your information by directing you to afalse website that remarkably resembles the legitimate site. Lesser sophisticated techniques include posing as bank representatives, stealing wallets, rummaging through dustbins, etc. Tax- related identity theft is an ongoing problem. This is the time of the year when there is abundant personal and financial data circulating in the form of photocopies and over the Internet. If criminals intercept just one 16A form — or if they dupe someone into providing that information —they gain enough information that can be used for identity theft. Avantika Sharma filed her returns online in the last week of February. She received a notification that two tax refunds were filed under her name. After making enquiries, she found that her PAN card number was stolen in a data breach and all her personal data was used to file a false tax return. Sharma's case is not an isolated incident. The threat of identity theft leaves you with more to worry about than whether or not you have filed your return on time. While the thought of someone messing with your personal information is unsettling enough, most people are not aware that a thief may use sensitive information, such as a PAN number, to claim a fraudulent tax refund, open fraudulent credit cards/ loans or commit other criminal acts. Following a few simple steps can go a long way to help safeguard your identity during tax time. [1]Keep a regular tab on your form 26AS as this is a consolidated record of all the tax payments and receipts. Any irregular change in the same not tallying with expected tax deductions or receipts needs to be noted. If there is a suspicion of identity theft the same needs to be reported to the income tax department immediately. [1]Place tax documents in a secure location, such as a safe or a locking file cabinet, and store them there until needed to prepare tax forms. Do not leave them in a car or other easily accessible places. [1]Use a secure delivery method to deliver your documents. Avoid using apublic wi- fi network to e- file taxes. Public wi- fi networks are especially vulnerable as these are not secured or encrypted networks and sophisticated fraudsters can always infiltrate the same without difficulty. [1]Some tax apps require users to take photos of form 16A. Be sure to delete images after use and passwordprotect your smartphone at all times. [1]Do not follow links in emails or text messages that falsely claim to be from the income tax department. Always type ' incometaxindia. gov. in' directly into a browser to avoid spurious links. [1]Keep operating systems and all computer protection software up to date to avoid phishing. Remember to wipe your hard drive clean before disposing your old computer/ laptop. [1]Don't leave photocopies of your PAN lying around. It is not only the actual PAN card that can be used for identity theft but also photocopies which are typically submitted while opening bank accounts, obtaining a new credit card etc. [1]Provide PAN details to authorised people and only when needed [1]Don't give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with. A fraudster can eventually use tax- related information such as the PAN number in opening bank accounts or getting a line of credit. A very valuable instrument that can be used to detect any such event is your Credit Information Report. This report can be obtained from any established credit bureau. Key points to look for in your credit report are: [1]Credit cards and other loan accounts and compare it with known liabilities. [1]Past enquiries section of the credit report which indicates if someone is attempting to obtain new loans using your identity. [1]Verify if the PAN and other details quoted in the report against each loan account are accurate. Inaccuracies in the same especially against an unknown loan account can be indicative of fraud. [1]Any major, unexpected changes in your scores could signal identity theft. If you know your personal information has been compromised, you can report it immediately, thus averting identity fraud. Using this tool judiciously can save you time and money in the long run. The author is Managing Director, Experian Credit Information Company of India and Country Manager, Experian India  This is the time of the year when there is abundant personal and financial data circulating in the form of photocopies and over the Internet. If criminals intercept Form 16A or dupe someone into providing the data, they gain enough information that can be used for identity theft THINKSTOCK   inance ministry warns of risk to online I- T accounts  While identity theft of any kind is worrisome, it is even more so in the light of the finance ministry admitting that some online I- T accounts had been accessed by unauthorised persons. In a warning issued last week, the ministry said that details of some taxpayers who had filed returns online had been obtained by outsiders ( not from the I- T department), the passwords reset and accounts accessed. The ministry is looking into it and taking measures to prevent it. Now it is mandatory for those with incomes of ₹ 10 lakh and above to file I- T returns online. This has definitely made life easier. We can file returns sitting in the comforts of our houses or offices. No longer do we have to wait in the long queues to submit the returns. Even if we are late the returns at the last minute (which is the case with many of us) we can do it very easily. But with identity theft a real threat, taxpayers must exercise caution while doing so.

 

--

 

CS A Rengarajan

9381011200

CS Benevolent Fund is a collective effort towards extending the much needed financial support to the community of Company Secretaries in times of distress  Let us lend support and join for noble cause.

SHARING KNOWLEDGE SKY IS THE LIMIT

This mail and its attachments (if any) are confidential information intended for persons to whom the email is planned for delivery by the sender. If you have received this mail in error please notify the sender of the error by forwarding the email and its attachments (if any) and then deleting the mail received in error and the relevant email trail in this connection without making any copies or taking any prints.

__._,_.___

receive alert on mobile, subscribe to SMS Channel named "aaykarbhavan"
[COST FREE]
SEND "on aaykarbhavan" TO 9870807070 FROM YOUR MOBILE.

To receive the mails from this group send message to aaykarbhavan-subscribe@yahoogroups.com

Visit Your Group

• New Members 3

• Privacy • Unsubscribe • Terms of Use