• CENTRAL BOARD OF DIRECT TAXES

Circular No. 02/2010 Dated. 29.01.2010 - Adjustment of "Advance Tax in respect of Fringe Benefits" for Assessment Year 2010-11 against "Advance Tax" - matter regarding.

Vide Finance (No. 2) Act, 2009, a new Section 115 WM was inserted to abolish the Fringe Benefit Tax (FBT) with effect from Assessment Year (A.Y.) 2010-11. However, during the current Financial Year 2009-10 some assessees have paid "advance tax in respect of fringe benefits" for Assessment Year 2010-11. In such cases, the CBDT has decided that any installment of "advance tax paid in respect of fringe benefits" for A.Y. 2010-11 shall be treated as Advance Tax paid by assessee concerned for A.Y. 2010-11. The assessee can adjust such sum against its advance tax obligation in respect of income for A.Y. 2010-11 or in case of loss etc claim such payment as refund as advance tax paid in A.Y. 2010-11.

Press Release From File No. 402/92/2006-MC (04 of 2010) Dated 20.01.2010 - New Provision relating to TDS under Income Tax Act, 1961 - Effective from 1st April 2010

A new provision relating to tax deduction at source (TDS) under the Income Tax Act, 1961 will become applicable with effect from 1st April 2010. Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available. The law will also apply to all non-residents in respect of payments / remittances liable to TDS. As per the new provisions, certificate for deduction at lower rate or no deduction shall not be given by the assessing officer under section 197, or declaration by deductee under section 197A for non-deduction of TDS on payments shall not be valid, unless the application bears PAN of the applicant / deductee.

Clarification From File No - 142/22/2009-TPL (Pt. II) Dated 20.01.2010 - CBDT Clarification on filing of Objections before Dispute Resolution Panel (DRP)

Section 144C was inserted in the Income-tax Act, 1961 vide Finance (No. 2) Act of 2009. It provides for constitution of a Dispute Resolution Panel (DRP) to decide cases of an eligible assessee as defined in sub-section (15) of section 144C of the Income-tax Act. Vide provisions of sub-section (2) to sub-section (5) of section 144C, a choice has been given to the assessee either to go before the DRP or to prefer the normal appellate channel. It is the choice of the assessee whether to file an objection before the Dispute Resolution panel against the draft assessment order or not to exercise this option and file an appeal later before CIT (Appeals) against the assessment order passed by the Assessing Officer.

• RESERVE BANK OF INDIA

Circular No. A.P. (DIR Series) Circular No.29 Dated 28.01.2010 - Exim Bank's Line of Credit of USD 40 million to the Government of the United Republic of Tanzania

Export-Import Bank of India (Exim Bank) has concluded an Agreement dated May 28, 2009 with the Government of the United Republic of Tanzania making available to the latter, a Line of Credit (LOC) of USD 40 million (USD forty million only) for financing eligible goods and services including consultancy services from India for the purpose of financing export of tractors, pumps and equipments. The Credit Agreement under the LOC is effective from January 11, 2010

Circular No. A.P. (DIR Series) Circular No. 27 Dated 19.01.2010 - The Currency Futures (Reserve Bank) (Amendment) Directions, 2010 - effective from January 19, 2010

Currently, persons resident in India are permitted only to trade in US Dollar (USD) - Indian Rupee (INR) currency futures contracts in recognized stock exchanges. In order to facilitate direct hedging of currency risk in other currency pairs as well, RBI has decided to permit the recognized stock exchanges to offer currency futures contracts in the currency pairs of Euro-INR, Japanese Yen (JPY)-INR and Pound Sterling (GBP)-INR, in addition to the USD-INR contracts, with immediate effect. Accordingly, Notification No.FED. 2 / ED (HRK)-2009 dated January 19, 2010 viz. Currency Futures (Reserve Bank) (Amendment) Directions, 2010, has been issued.

Press Release No. 2009-2010/1028 Dated 22.01.2010 - RBI announces rate of interest on FRB 2035

Reserve Bank of India has announced that the rate of interest on the Floating Rate Bonds, 2035 (FRB 2035) applicable for the period January 25, 2010 to January 24, 2015 shall be 7.17 per cent per annum. The FRB 2035 were issued on January 25, 2005 by the Government of India to the Reserve Bank of India on private placement basis against the transfer of subordinated debt of IDFC. The rate of interest of the bonds shall be reset by the Bank every five years at the prevailing 5 year yield on Government of India securities as on the last working day prior to commencement of each period of five years. Accordingly, the coupon of the FRB 2035 has been fixed on the basis of secondary market transactions in Government of India securities as on January 22, 2010.

• SECURITIES AND EXCHANGE BOARD OF INDIA

Secondary Market Department

Circular No. SEBI/MRD/ OIAE/ Dep/ Cir- 4/2010 Dated 29.01.2010  - SEBI circular on Disclosure of Investor Complaints And Arbitration Details on Depository website

In order to improve transparency in grievance redressal mechanism, SEBI has decided that Depositors shall henceforth disclose details of complaints lodged by Beneficiary Owners (BOs)/investors against Depository Participants (DPs) in their website. The aforesaid disclosure shall also include details pertaining to arbitration and penal action against the DPs.

Press Releases

Press Release No. 15/2010 Dated 21.01.2010 - SEBI signs Capital Market Collaborative Agreement with SC, Malaysia

The Securities and Exchange Board of India (SEBI) has signed a 'Capital Market Collaborative Agreement' (Agreement) with the Securities Commission of Malaysia in order to facilitate the development of deeper and broader capital markets, greater cross-border activities between the capital markets and to attain closer regulatory co-operation in a mutually beneficial manner. So far, SEBI has signed bilateral MoUs with 17 Jurisdictions and a Letter of Intent for mutual cooperation.

• INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Circular No. IRDA/F&I/CIR/F&A/012/01/2010 Dated 28.01.2010:- Circular on Public Disclosures by Insurers

The Authority had issued Public Disclosures to be made by Insurers w.e.f 31st March, 2010. Accordingly, Insurers shall make the stipulated disclosures in Newspapers as well as on their websites including Balance Sheet, Profit & Loss Account, Revenue Account and Key Analytical Ratios on an half yearly basis in prescribed forms.

• PRESS INFORMATION BUREAU

PIB Dated 28.01.2010 - Enactment of Clinical Establishments (Registration & Regulation Act) 2010

The Union Cabinet approved the proposal of the Ministry of Health & Family Welfare to the introduction of the 'Clinical Establishments (Registration and Regulation) Bill, 2010. The main purpose of the law is to provide a legislative framework for the registration and regulation of clinical establishments in the country and also seeks to improve the quality of health services through the National Council for Standards by prescribing minimum standards of facilities and services which may be provided by them. Initially the law, after enactment by Parliament, would come into effect in the States of Arunachal Pradesh, Himachal Pradesh, Mizoram, Sikkim and all Union Territories.

PIB Dated 28.01.2010 - New Initiative to Deliver Justice at Door Step- the Nyaya Panchayat Bill, 2009

The Ministry of Panchayati Raj has proposed a Nyaya Panchayats Bill 2009 to ensure participatory and people-oriented system of justice with greater scope for mediation, conciliation and compromise. Being closer to the people geographically and psychologically, the Nyaya Panchayats would be the ideal forum to save time, trouble and expenses of parties and witnesses and it would also reduce the workload of judiciary.