Page 16 - Banking Finance August 2022

ROUNDUP

The growth of new return filers peaked of tax at source at 10 per cent, by any to $101.1 billion, up 241.7 per cent in
in the year after demonetization, but person, providing any benefit or per- value, compared to the same period
fell sharply a year before covid. New quisite, exceeding Rs 20,000 in a year last year.
filers' growth stood at 17.7% in FY17, to a resident, arising from the business
19.79% in FY18 and 17.58% in FY19, or profession of such resident.
ONDC can become the
before it fell to 10.6% in FY20, 10.18%
In a recent set of guidelines on this is-
in FY21, and to 8% in FY22. However, next UPI, says IT Minister
sue, the Income Tax Department, said
direct tax collections have been robust Union IT minister Ashwini Vaishnaw
the payer/deductor need not check
over the last two years, growing exuded confidence that Open Network
the taxability of the sum in the hands
49.02% in FY22 to Rs. 14.09 trillion for Digital Commerce (ONDC) can be-
of the recipient and the nature of as-
from Rs. 9.45 trillion in FY21. A new come the next UPI, one of India's most
sets given as benefit or perquisite is not
filer is defined as a person, who is not successful digital products. According
relevant. Even capital assets given as
included in the filer base at the start to Vaishnaw, ONDC can help entrepre-
benefit or perquisite are covered
of the year, but has filed a return dur- neurs who are into either e-com-
within the scope of Section 194R.
ing a fiscal year. merce, B2B or dealing directly with
This tax provision is likely to affect pro-
customers.
fessionals such as doctors, social media
CA Institute revises guid- "Can we expand ONDC to make it the
influencers, but experts say the rules
ance note on CARO 2020 won't change for salaried employees. next UPI? I request all of you to have
a serious look at it. We believe that
"It's applicable only for those doing
The CA Institute has come out with a
ONDC can be the next UPI. Just look
business and profession, not individuals
Revised Guidance Note for the Compa-
or salaried employees. Salaried em- how you can leverage it for your busi-
nies Auditors Report Order (CARO)
ployees are already covered under Sec- ness," said Vaishnaw. In April, the Cen-
2020, which placed more onus on
tion 192 of Income-tax Act, no change tre launched ONDC in five cities of
statutory auditors regarding fulfilling
in rules for them," said Neeraj Delhi NCR, Bengaluru, Bhopal, Shillong
their professional responsibilities.
Agarwala, partner, Nangia Andersen and Coimbatore in the pilot phase. It
The members of the Institute of Char-
India. is an initiative of the government to
tered Accountants of India (ICAI) are
promote an open platform for all as-
now required to go with the revised pects of the exchange of goods and
India's M&A deal value
Guidance Note while issuing their re-
services through electronic networks.
port on CARO for the financial state- more than doubled to
ments of Companies under the Compa-
$130.3 b in H1 2022 PM Modi launches two
nies Act 2013.
Merger & acquisition (M&A) activity new schemes for MSMEs
CARO 2020 is the overhauled auditor's
involving India hit an all-time high at
report to accompany companies' bal- Prime Minister Narendra Modi
$130.3 billion in the first half of 2022,
ance sheets for the financial year com- launched two schemes for supporting
more than double that in the first half
mencing on or after April 1, 2021 (FY micro, small and medium enterprises
of 2021, data with Refinitiv, an LSEG
21-22). (MSME) -'Raising and Accelerating
business, showed.
MSME Performance' (RAMP) and 'Ca-
This is the highest M&A value for a pacity Building of First-Time MSME
Capital assets given as
semiannual period since records began Exporters' (CBFTE).
benefits under Section (for Refinitiv) in 1980. The number of
Aimed at scaling up the implementa-
194R scope announced deals grew 30.3 per cent tion capacity and coverage of MSMEs,
year-on-year in H1 this year.
Pursuant to the Budget announce- with impact enhancement of existing
ment, the new income tax provision for Target India M&A totalled $122.6 bil- MSME schemes, RAMP will be imple-
TDS on benefits or perquisites, in cash lion, up 123.8 per cent from the same mented in collaboration with the
or kind, will be effective July 1. The period last year. Domestic M&A activ- World Bank with an investment of Rs.
new Section 194R requires deduction ity reached record levels, amounting 6,000 crore over five years.
16 | 2022 | AUGUST | BANKING FINANCE