Corporate Updates – 30-06-2016


RBI has issued Master Direction on Presentation, Disclosure and Reporting of Financial Statements of All India Financial Institutions (AIFI). These Directions provide for the format of the Balance Sheet And Profit & Loss Account and Preparation Of Consolidated Financial Statements to be adopted by AIFIs. Further, the directions also provide for specific disclosures to be made by AIFIs in the notes to accounts of the financial statements. RBI has clarified that with the issue of these directions, the instructions / guidelines contained in the circulars issued by the Reserve Bank listed in Annexure V of the directions stand repealed. These Directions shall be applicable to the AIFIs regulated by Reserve Bank of India viz. EXIM Bank, NABARD, NHB and SIDBI with effect from the quarter ended December 2016and shall come into effect on the day these are placed on the official website of the Reserve Bank of India.


CBDT vide Circular No. 24/2016 dated 27th of June, 2016 has issued clarifications on the Income Declaration Scheme, 2016 incorporated in the Finance Act, 2016. In a set of clarification issued on the Scheme, the CBDT has said that in case a declarant has made only part-payment of the tax, surcharge and penalty payable on undisclosed income declared under the scheme, the entire declaration will be deemed invalid and the declaration under the Scheme shall be valid only when the complete payment of tax, surcharge and penalty is made on or before 30-11-2016. Further it clarified that the scheme is valid for both resident and non-resident Indians. On whether a valuation report of an asset is mandatory, the CBDT clarified it is necessary for the declarant to obtain the valuation report but it is not mandatory for him to attach the same with the declaration made in Form-1. However, the tax officer may require the declarant to file the valuation report before issuing the acknowledgment in Form-2. In such a circumstance, it will be necessary for the declarant to make the report available to the officer concerned. Also, a person whose proceeding is pending before the Settlement Commission, is not eligible for the scheme in respect of assessment years for which proceeding is pending.

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