Parliamentary Watch

Steps Taken to Protect Bona Fide Commercial Decisions by Banks: FM

Finance Minister Nirmala Sitharaman said the government has taken various measures to protect bona fide commercial decisions by banks to alleviate the fear of any unwarranted hardships to decision-taking officials or senior executives of banks.

In a statement in Rajya Sabha, Sitharaman said these measures include amendments to prevention of corruption Act (PC Act), 1988 requiring prior permission before initiating investigations against a public servant, setting up of Advisory Board for Banking and financial Frauds of banks and financial frauds (ABBFF) for first level of examination of suspected frauds of banks and financial institutions in excess of Rs50 crore and finalization of consolidated Staff Accountability Framework.

Public sector banks (PSBs) have been advised to suitably revise their respective staff accountability policy and other relevant policies.as required, within this framework with approval of their respective boards, she said.

No Change in LTCG Tax on Equities, MFs

The government has ruled out any change in long-term capital gain (LTCG) tax on equity and mutual funds. Finance Minister Nirmala Sitharaman Tuesday informed the Rajya Sabha that the government will continue to levy the tax as there are no plans to alter the current tax structure.

In a reply to a question whether the government would increase the period of LTCG on mutual funds and equities from one year to two years and would abolish taxes on LTCG to boost sentiments, Minister of State for finance Pankaj Chaudhry said in a written reply: “There is no such proposal under consideration.”

Under the current provisions, all the capital gains over Rs1lakh will be charged at 10% tax rate without any inflation indexation benefit. However, the gains made on and before January 312018 will be exempt from this new rule.

Panama Papers: Rs20,353 crore Undisclosed Credits Detected

The government has said undisclosed credits amounting to Rs20353 crore have been detected with respect to 930 India-linked entities in panama and paradise paper Leaks.

Replying to a question in the Rajya Sabha, MoS for finance Pankaj Chaudhry said taxes collected so far amount to Rs153.88 crores in Panama and Paradise Paper Leaks.

“As on October 1, 2021, total undisclosed credits amounting to Rs20353 crore have been detected,” the Minister said in a written reply.

He said the tax department takes appropriate action in case of persons found to be involved in violation of provisions of various Acts administered by the I-T Department like the Income Tax Act, 1961, and Black Money (Undisclosed Foreign Income and Assets) and imposition of Tax Act,2015.

Circulation of Rs. 2K Notes Down

The number of Rs2000 currency notes in circulation has decreased to 223.3 crore pieces or 1.7% of total notes in circulation (NIC) in November this year, compared to 336.3 crore pieces in March 2018. Printing of bank notes to particular denominations is decided by the government in consultation with RBI, MoS for finance, Pankaj Chaudhry, said in a written reply in Rajya Sabha.

3.96 lakh COS Off Official Records

More than 3.96 lakh companies were removed from official records in the last five financial years after following the due process under the company’s law, according to official data. The corporate affairs Ministry, which is implementing the Companies Act,2013 struck off 12,892 companies from the official records in the last fiscal and 2933 in 2019-20.   

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