Page 16 - Banking Finance July 2020

ROUNDUP

analysis of all relevant issues and tak- Endeavour's been to fur- the special liquidity scheme for non-
ing the inputs of key stakeholders, the banking finance companies (NBFCS)
committee has submitted its report to ther simplify direct tax and housing finance companies (HFCS)
the Government of India on March 31, laws: FM announced under the AatmaNirbhar
2020 along with Draft Valuers Bill, The government's endeavour has been Bharat package. Further, 35 more ap-
2020, recommending to establish a to further simplify the direct tax laws plications have been received seeking
National Institute of Valuers," the min- and has brought in a major reform by financing up to Rs. 13,776 crore, which
istry said in a release on its website. giving option to taxpayers to opt for a are being processed.
new simpler tax regime, Finance Min-
Govt announces 2% inter- ister Nirmala Sitharaman said. She also NFRA bans another audi-
lauded the department for being re- tor in IL&FC case for five-
est subsidy for small bor- sponsive to the needs of the taxpayers

rowers during Covid time by relaxing compli- year
ance requirements and addressing li- The National Financial Reporting Au-
The government approved a 2 per quidity concerns. thority (NFRA) has slapped a five-year
cent interest subsidy scheme for Shishu ban on an auditor for alleged irregu-
loan account holders under the Mudra India to halt imports of larities in the audit of IL&FS Financial
Yojana to help small businesses tide Services (IFIN). Apart from the ban, a
over difficulties created by the 101 defence items fine of Rs. 5 lakh has been imposed on
lockdown following outbreak of India will ban the imports of 101 items Rukshad Daruvala. He is at least the
coronavirus disease. of military equipment in an effort to second auditor in the matter to be
boost indigenous production and im-
Under Shishu category, lenders provide barred by NFRA. But, ruling would not
collateral-free loans of up to Rs 50,000. prove self- reliance in weapons manu- come into force till July 31 due to a
facturing. Defense Minister Rajnath Delhi HC order passed in June.
The 2 per cent interest subvention is Singh said that the government is plan-
estimated cost of the exchequer ap- ning to progressively implement the Country of origin rules for
proximately Rs 1,542 crore, Informa- embargo on select military imports
tion and Broadcasting Minister Prakash between this year and 2024. The list e-com firms notified
Javadekar told reporters after the Cabi- hasn't been disclosed publicly. The government has notified new rules
net meeting. In May, India announced that global for e-commerce firms, including man-
companies could invest up to 74 per- datory display of 'country of origin' on
Govt gives more time for cent in the country's defense manufac- their products, and said any non-com-
filing tax returns turing units, up from 49 percent, with- pliance will attract penal action. The
out requiring any government ap- 'Consumer Protection (E-Com) Rules,
The government gave more time to proval, hoping that the new policy will 2020' were notified. The new rules will
individuals and businesses to meet vari- attract foreign companies with high- be applicable to all e-tailers registered
ous compliance requirements, includ- end technologies to set up their bases in India or abroad but offering goods
ing for filing tax returns, amid signs in the country in collaboration with to Indian consumers.
that the coronavirus pandemic will local industries. The government had
take time to subside. then announced that India will stop Shipping ministry waives
The finance ministry notified a fresh importing weapons that can be made waterway usage charges
due date for filing tax returns for FY19 domestically, in line with the vision to In a major move aimed at promoting
and gave more time for making invest- make the Indian economy selfreliant inland water transport, the govern-
ments to claim tax deductions for FY20 amid the coronavirus crisis. ment announced waiving waterway
and for linking permanent account usage charges. The decision is aimed
number (PAN) with Aadhaar. Govt sanctions Rs. 3,100 cr at increasing the inland waterway traf-
According to the notification, taxpayers for NBFC, HFC schemes fic to 110 million tonne (MT) in 2022-
will get one more month to file income The government has sanctioned Rs. 23 from 72 MT in 2019-20. "The Min-
tax returns for FY19 till end of July. 3,090 crore for five proposals under istry of Shipping has decided to waive

16 | 2020 | JULY | BANKING FINANCE