Corporate Updates – 16-10-2015


RBI has made the changes in the Valuation Guidelines of Jewellery where Advance against Pledge of Gold ornaments / jewellery is extended by the cooperative banks. On a review, it has been decided that the cooperative banks may also use the historical spot gold price data of the preceding 30 days publicly disseminated by a Commodity Exchange regulated by the SEBI. Earlier, in order to standardize the valuation and make it more transparent to the borrower, gold jewellery accepted as security/ collateral will have to be valued at the average of closing price of 22 carat gold for the preceding 30 days as quoted by Indian Bullion and Jewellers Association Limited [Formerly known as Bombay Bullion Association Limited (BBA)].

CBDT – Income Tax:

CBDT with an intention to extent the benefits to the middle class has announced extension of certain benefits in respect of medical treatment under section 80DDB. This section allows a deduction for expenditure incurred on treatment of specified ailments. Taking the process forward, CBDT has amended the Rule 11DD through the Income Tax (15th Amendment) Rules, 2015 which shall come into force on the date of publication in the Official Gazette. The amended Rule relaxes the condition of obtaining the certificate for claiming expenditure under section 80DDB in respect of specified ailments from a specialist working in a Government hospital. As per amended Rule 11DD, the prescription can be issued by any specialist mentioned in the amended Rule. Henceforth, it will not be mandatory to obtain a certificate from a specialist working in a Government hospital.

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