CBDT Doubles Exemption Limit Conveyance Allowance

Vide Notification No. 39/2015/F. No.142/02/2015-TPL, CBDT doubled conveyance allowance from Rs. 800 per month to Rs. 1600 per month for employees to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty.

The Exemption limit for person who is blind or orthopaedically handicapped with disability of lower extremities, the said limits is doubled from Rs. 1600 per month to Rs. 3200 per month.

The said notification can be downloaded by clicking here –> cbdt-doubles-exemption-limit-of-conveyance-allowance-revised-limit-notified

Companies (Auditor’s Report) Order 2015

Two days after ICAI Announcement on Applicability of CARO 2003 & Additional Reporting Under Companies Act 2013, Ministry of Corporate Affairs has notified Companies (Auditor’s Report) Order 2015.

The said Order can be downloaded by clicking here –>> Companies_Auditors_Report_Order_2015

ICAI Announcement on Applicability of CARO 2003 & Additional Reporting Under Companies Act 2013

ICAI in its Announcement said that the Companies Act, 1956 has ceased to have effect from 01st April, 2014. As a corollary, even the Companies (Auditor’s Report) Order, 2003 issued under section 227(4A) of the said Act also ceases to have effect from the said date.

Section 143(11) of the Companies Act, 2013 which came into force from 01st April, 2014 provides that “the Central Government may, in consultation with the National Financial Reporting Authority, by general or special order, direct, in respect of such class or description of companies, as may be specified in the order, that the auditor’s report shall also include a statement on such matters as may be specified therein.”

Accordingly, it may be noted that as when an Order is notified by the Central Government under section 143(11) of the Companies Act, 2013, the members would be required to report thereon as a part of their statutory audit reports.

Until the aforesaid Order is issued, no additional reporting under section 143(11) of the Companies Act, 2013 is required by the Auditors for the financial year 2014-15.

The ICAI Announcement can be downloaded by clicking here –> ICAI – Announcement on CARO Reporting

RBI notifies hike in FDI cap in insurance sector

The Reserve Bank of India (RBI) on Wednesday notified government’s decision to raise foreign direct investment (FDI) limit in the insurance sector to 49 per cent.

“The extant FDI policy for insurance sector has since been reviewed and further liberalised. Accordingly, with immediate effect, FDI in insurance sector shall be permitted up to 49 per cent subject to the revised conditions,” RBI said in a notification.

RBI has also included a new term ‘Other Insurance Intermediaries appointed under the provisions of Insurance Regulatory and Development Authority Act, 1999’ under the definition of ‘Insurance’.

The RBI notification follows Department of Industrial Policy and Promotion (DIPP), Commerce Ministry’s press note in March regarding operationalisation of increased FDI limit of up to 49 per cent in the insurance sector.

“…consolidated FDI policy, effective from April 17, 2014 is amended,” said the Press Note from the DIPP.

Press notes are official documents issued by DIPP through which new FDI policies or changes in existing ones come into effect.

As per the guidelines, FDI of up to 26 per cent come under automatic route and beyond 26 per cent and up to 49 per cent government approval is needed.

“An Indian insurance company shall ensure that its ownership and control remains at all times in the hands of resident Indian entities. Any increase of foreign investment of an Indian insurance company shall be in accordance with the pricing guidelines specified by Reserve Bank under the Foreign Exchange Management Act, 1999,” RBI added.

The FDI cap in the sector has been hiked to 49 per cent and that includes foreign investment in the forms of FPI, FII, QFI, FVCI, NRI and DR.

A foreign player can now invest in insurance company, insurance brokers, third party administrators, surveyors and loss assessors and other insurance intermediaries appointed under the provisions of IRDA Act 1999.

RBI/2014-15/545 A. P. (DIR Series) Circular No.94 can be downloaded by clicking here –>RBI Increases FDI in Insurance

Interest rate of Sukanaya Scheme and 5 Year Senior Citizen Saving Scheme increased by 0.1% w.e.f. April 1, 2015

Government of India increased the interest rate on Sukanaya Scheme & 5 year Senior Citizen Saving Scheme by 0.1% w.e.f. 01 April 2015.

 

Source: PRESS RELEASE, DATED 31-3-2015

The Press Release can be downloaded by clicking here –> Sukanya Samriddhi Scheme & Senior Citizen Saving Scheme