Page 13 - Banking Finance JANUARY 2017

ROUNDUP

Demonetisation equivalent of 'Financial Pokhran':
Airlines may delay UDAN
cess following demoneti- Gurumurthy
Demonetisation decision is the equivalent of 'Financial Pokhran', RSS ideologue
zation and legal uncer- S Gurumurthy said visualising a paradigm shift in economy
tainties that will begin a process of bringing down real estate prices
Airlines may delay the levy of a new and encourage transparency.
UDAN cess Terming the demonetisation a "Financial Pokhran",
on airfares, Gurumurthy said when people have excess cash there is
factoring in always an urge to buy things which are not necessary and
legal uncer- that leads to "irresponsible and heartless spending".
tainties and Demonetisation would bring about a huge change.
e x p ec ta - "Post Pokhran India is a paradigm shift and this 'Financial Pokhran' is also a para-
tions that passenger traffic would digm shift but it requires a very different mind to understand, articulate this and
decline following demonetisation of make people understand," he said.
high-value bank notes.
The estimated Rs 400 crore collected EPFO pensioners can submit 'life certificate' till Janu-
per year as a result of this scheme, ary 15
called UDAN, will be paid to airlines
Providing breather to its around 50 lakh pensioners amid difficulties being faced
that agree to fly to such locations.
in banks due to demonetisation, retirement fund body
After 36 months, the idle EPFO has extended the last date for submission of life
certificate till January 15. "Employees' Provident Fund
EPF account will turn 'in- Organisation (EPFO) has directed its over 120 field of-
operative' fices that the last date for submission of life certificate
In a significant development, the by pensioners is extended till January 15, 2017," a se-
labour minis- nior official said.
try has re- "The decision is in line with the central government's move to extend the date
laxed the for submission of life certificate till January 15, 2017," he said. As per the prac-
definition of tice, the EPFO pensioners are required to submit their life certificate by Novem-
'inoperative' ber. In case the pensioners don't submit their life certificate their pension is
em p l o yee stopped.
provident fund (EPF) accounts, which
do not earn any interest. Now, if an CBDT advises not to reopen past cases due to increase
EPF account lies idle for 36 months or in digital payment
more, it will not automatically be The Central Board of Direct Taxes (CBDT) has advised its assessing officers not to
treated as inoperative, but will con-
reopen past assessments in cases merely on the ground that current year's turn-
tinue to accrue interest.
over has increased due to increased use of digital means of payment.
This notification provides that an EPF In a circular issued to field formations, the CBDT has clarified that mere increase
account will be treated as operative
on termination of employment and in turnover due to use of digital means of payment in a particular year, cannot
be a sole reason to believe that income has escaped assessment in earlier years.
the EPF account holder will continue
to earn interest, unless the employee The CBDT has taken note of the recent demonetisation move encouraging digi-
concerned applies for withdrawal of tal mode of payments, consequent upon which an enhanced turnover of busi-
the accumulated balance in his EPF ness might get reflected in the books of accounts.
account or takes up another job in Reacting to the CBDT directive, Aseem Chawla, Managing Partner, ASC Legal, a
two months, with another employer law firm, said that the direction reaffirms the settled position of law that re-
who is covered by the EPF scheme. opening of cases ought not to be resorted upon mere suspicion only.

BANKING FINANCE | JANUARY | 2017 | 13

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