Page 48 - Banking Finance April 2019

ARTICLE

to help banks regain health by
preserving capital.

RBI Dy. Governor, Dr Viral V Acharya
says, "Without the PCA imposition, some
banks would have incurred even higher
losses and required even more of
taxpayer money for recapitalization.
Imposition of PCA can thus be seen as
first, stabilizing the banks at risk, and
then, undertaking the deeper bank
reforms needed for long-term viability of
the business model of these banks. It is
important, therefore, that the PCA
framework to deal with financially weak
banks is persisted with." T

Centre lowers import duty on parts of electric vehicles
The government has lowered import duty on parts of electric vehicles. The duty changes, have been done with the
intent to promote domestic assembling of electric vehicles. The Centre lowered customs duty on import of parts and
components of such vehicles to 10-15 per cent. So far, vehicle parts and components imported for assembly in India
attract import duty of 15-30 per cent. The Central Board of Indirect Taxes and Customs (CBIC) has carved out a sepa-
rate category for parts and components of electric vehicle for which customs duty has been lowered to 10-15 per
cent. The CBIC said changes have been made in "public interest".
Further, the CBIC has removed customs duty exemption to battery packs for electric vehicles and also doubled the
duty on battery packs for mobile phones. Batteries for electrically operated vehicles, including two and three wheeled
electric motor vehicles will now be charged 5 per cent import duty from nil earlier. Customs duty on battery packs for
mobile phone has been doubled to 20 per cent.
Inputs or raw material used in manufacture of battery pack of cellular mobile phones are no more exempt, CBIC said.
Import duty on lithium ion cell for use in manufacture of battery pack of cellular mobile phone and power bank of
lithium ion will be 5 per cent.

PAN-Aadhaar linkage mandatory for filing I-T returns for AY 2019-20:SC
Linking Aadhaar with the Permanent Account Number (PAN) will be mandatory for filing Income Tax Return for the
assessment year 2019-20, the apex court has clarified in a ruling. With this, the court has turned the order given by
the Delhi High Court early last year.
"For the assessment year 2019-20, the Income Tax Return shall be filed in terms of the judgment passed by this Court,"
a Bench comprising Justice AK Sikri and Justice S Abdul Nazeer ruled in Special Leave Petition (Civil) involving Union of
India as petitioner and Shreya Sen & ANR as respondent. This means if PAN is not linked with Aadhaar, the tax return
will not be accepted. The Central Board of Direct Taxes (CBDT) has extended the date to link PAN with Aadhaar till
March 31, 2019.

The government had filed an SLP (Civil) in the apex court against the decision by the Delhi High Court last February.
The court had permitted the respondents herein to file the Income Tax Return for the Assessment Year 2018-19 with-
out linking of their Aadhaar and PAN numbers and it was also directed that the Income Tax Department would not
insist on producing their number of Aadhaar enrolment. The aforesaid order was passed by the High Court having
regard to the fact that the matter was pending consideration in this court.

48 | 2019 | APRIL | BANKING FINANCE