Railway Budget 2014-15: Highlights

Union Railway Minister D.V. Sadananda Gowda presented his maiden Railway Budget in Parliament on Tuesday. Here are the highlights of this Budget

ü No new increase in passenger fares and freight charges

ü Bullet train in Mumbai-Ahmedabad sector

ü Diamond quadrilateral for high speed trains

ü Plan to hike speed of trains to 160-200 km/hr in 9 sectors

ü Online booking to support 7,200 tickets per minute; to allow 1.2 lakh users log in simultaneously

ü Reservation system to be revamped, ticket-booking through mobile phones, post offices to be popularised

ü Online platform for unreserved tickets

ü Combo parking-platform tickets at stations

ü Women RPF Constables to escort ladies coaches; 4,000 women constables to be inducted

ü Retiring room facility to be extended to all stations

ü Battery operated cars for differently-abled and senior citizens at major stations

ü Feedback services through IVRS on quality of food

ü Food can be ordered through SMS, phone; Food courts at major stations

ü Cleanliness budget up by 40 per cent over last year

ü CCTVs to be used at stations for monitoring cleanliness

ü Setting up of corpus fund for stations’ upkeep; RO drinking water in some stations and trains

ü Automatic door closing in mainline and sub-urban coaches

ü 58 new trains and extension of 11; 864 additional EMUs to be introduced in Mumbai over 2 years

ü FDI in railway projects, except in operations

ü FDI, domestic investments in rail infrastructure

ü Office-on-Wheels: Internet & workstation facilities on select trains

ü WiFi in A1, A category stations and in select trains

ü Railways university for technical and non-technical subjects

ü Some stations to be developed to international standards through PPP model

ü Parcel traffic to be segregated to separate terminals to make passenger traffic unhindered

ü Loss per passenger per kilometre up from 10 per cent in 2000-01 to 23 per cent in 2012-13

ü Solar energy to be tapped at major stations

ü Highest ever plan outlay of Rs. 65,455 crore for 2014-15

ü Expenditure in 2014-15 pegged at Rs. 149,176 crore.

New Trains

Jansadharan Trains

i) Ahmedabad-Darbhanga Jansadharan Express via Surat

Ii Jaynagar-Mumbai Jansadharan Express

ii) Mumbai-Gorakhpur Jansadharan Express

iv) Saharasa-Anand Vihar Jansadharan Express via Motihari

v) Saharasa-Amritsar Jansadharan Express

Premium Trains

i) Mumbai Central-New Delhi Premium AC Express

ii) Shalimar-Chennai Premium AC Express

iii) Secunderabad-Hazrat Nizamuddin Premium AC Express 6

iv) Jaipur-Madurai Premium Express

v) Kamakhya-Bengaluru Premium Express

AC ExpressTrains

i) VijayawadaNewDelhiAPExpress (Daily)

ii) LokmanyaTilak(T)-Lucknow (Weekly)

iii) Nagpur-Pune (Weekly)

iv) Nagpur-Amritsar (Weekly)

v) Naharlagun-NewDelhi (Weekly)

vi) Nizamuddin-Pune (Weekly)

Express Trains

i) Ahmedabad-Patna Express (Weekly)via Varanasi

ii) Ahmedabad Chennai Express (Biweekly)via Vasai Road

iii) Bengaluru -Mangalore Express (Daily)

iv) Bengaluru -Shimoga Express (Biweekly)

v) Bandra(T)-Jaipur Express (Weekly) via Nagda, Kota

vi) Bidar-Mumbai Express (Weekly)

vii) Chhapra-Lucknow Express (Tri weekly) via Ballia, Ghazipur, Varanasi

viii) Ferozpur-Chandigarh Express (6 days a week)

ix) Guwahati-Naharlagun Intercity Express (Daily)

x) Guwahati-Murkongselek Intercity Express (Daily)

xi) Gorakhpur-Anand Vihar Express (Weekly)

xii) Hapa-Bilaspur Express (Weekly)via Nagpur

xiii) Hazur Saheb Nanded-Bikaner Express (Weekly)

xiv) Indore-Jammu Tawi Express (Weekly)

xv) Kamakhya-Katra Express (Weekly) via Darbhanga

xvi) Kanpur-Jammu Tawi Express (Biweekly)

xvii) Lokmanya Tilak(T)-Azamgarh Express (Weekly)

xviii) Mumbai_Kazipeth Express (Weekly) via Balharshah

xix) Mumbai-Palitana Express (Weekly)

xx) New Delhi Bhatinda Shatabdi Express (Biweekly)

xxi) New Delhi-Varanasi Express (Daily)

xxii) Paradeep-Howrah Express (Weekly)

xxiii) Paradeep-Visakhapatnam Express (Weekly)

xxiv) Rajkot-Rewa Express (Weekly)

xxv) Ramnagar-Agra Express (Weekly)

xxvi) Tatanagar Baiyyappanahali (Bengaluru) Express (Weekly)

xxvii) Visakhapatnam-Chennai Express (Weekly)

Passenger Trains

i) Bikaner-Rewari Passenger (Daily)

ii) Dharwad-Dandeli Passenger (Daily)via Alnavar

iii) Gorakhpur-Nautanwa Passenger (Daily)

iv) Guwahati-Mendipathar Passenger (Daily)

v) Hatia-Rourkela Passenger 7

vi) Byndoor-Kasaragod Passenger (Daily)

vii) Rangapara North-Rangiya Passenger (Daily)

viii) Yesvantpur-Tumkur Passenger (Daily)

MEMU services

i) Bengaluru-Ramanagaram 6 days a week (3 Pairs)

ii) Palwal-Delhi-Aligarh

DEMU services

i) Bengaluru-Neelmangala (Daily)

ii) Chhapra-Manduadih (6days a week) via Ballia

iii) Baramula-Banihal (Daily)

iv) Sambalpur-Rourkela (6 days a week)

v) Yesvantpur-Hosur (6 days a week)

The procedure for PAN allotment process will undergo a change w.e.f.03.02.2014

The procedure for PAN allotment process will undergo a change w.e.f.03.02.2014. From this date onwards, every PAN applicant has to submit self attested copies of 

   

    1.Proof of Identity (POI), 

    2.Proof of Address (POA) and 

    3.Date of Birth (DOB) documents

  

Further person is  also required to produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres. 

The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. 

Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.

The Fees has also been changed. Now the Fees for processing the a PAN application shall be Rs 105/- (inclusive of all taxes)


To Download official announcement :

                                                    

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Finally IPCC Results are going to be declared on 31th jan Around 4 p.m

Finally IPCC Results are going to be declared on 31th Around 4 p.m

To Download The official Notification :

                                                   

Get CA Inter / IPCC Nov 2013 Results by SMS:-

You can also get your CA IPCC result of Nov 2013 by SMS also.
For getting results through message students should type:

(i) for IPCC Nov 2013 result :

Type:
CAIPCE(Space)XXXXXX

(where XXXXXX is the six digit IPCE examination roll number of the candidate)
e.g. CAIPCE 002971
and send the message to 58888.

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All pre-2005 notes to go out of currency from March 31…

The Reserve Bank of India (RBI) on Wednesday announced it would withdraw all pre-2005 currency notes from the economic system come March 31 this year.
Here’s a quick FAQ to help you understand the issue: 

Q: Will my currency notes become invalid from April 1? 
A: Partly. While you cannot use them for your normal transactions, you will still be able to go to a bank and have them exchanged. 

Q: Till when can I have my notes exchanged at the bank? 
A: After July, persons seeking exchange of more than 10 pieces of Rs 500 and Rs 1,000 notes will have to furnish proof of identity and residence to the bank. 

Q: How can I tell whether a note is pre- or post-2005? 
A: All notes printed after 2005 have the year printed in the middle of the bottom row. Pre-2005 notes do not have this feature. 

Q: Why did RBI decide only on 2005 as the cutoff year? 
A: Notes issued since 2005 have a different design and colour and this will bring uniformity to the cash system. They also have more security features to tell apart from fakes such as added watermark, etc. These notes are thus better in fighting the counterfeit currency menace. 

Q: In what denominations do pre-2005 notes exist? 
A: Pre-2005 notes in all current denominations -- from Rs 5 to Rs 1,000 -- are in circulation.

Q: What will RBI do to the pre-2005 notes withdrawn from the system? 
A: Central banks typically destroy withdraw currency notes by shredding them. 

Q: What is the motive behind the RBI move? A: While the central bank has not given an explanation, it is said the move is fight the counterfeit-currencies issue as well as to flush out black money from before 2005 that could still be held in cash. 

Q: What is the average lifespan of currency notes? 
A: There is no official declaration on this. In the US, the estimated lifespan of a currency tender ranges from about six years for the USD 1 bill to 15 years for the USD 100 bill, according to the Federal Reserve website. 

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Another Shock By ICAI Regarding Exam Schedule Of May 2014 Exams

ICAI has released Notification regarding the Exam Schedule Of CA May 2014 Exams on 13/1/2014 . 


But Again ICAI Has removed the Notification in Its Website 

ICAI has removed Notification so there may be a Higher 

Possibility that Exams May be Postponed to June . 

Revised Exam Schedule of CA May 2014 Exams

     
                  

Time Table For May 2014 Examinations

Time Table For May 2014 Exams : 

   To View Full Notification : 

                                                   

Another Shock By ICAI Regarding May 2014 Exams

     
                  

What makes Mumbai Airport T2 terminal unique

Now the city of dreams will also boast of a dream airport terminal. Prime Minister Manmohan Singh inaugurated 
the new integrated terminal T2 at Mumbai's Chhatrapati Shivaji International Airport or the CSIA. After the privatisation of Mumbai airport was announced in 2006, it was handed over to a GVK-led consortium for upgrade and modernisation. The space-constrained airport had little air side space due to slum dwellings. 

It was a challenging project for GVK as it was one of the few live airports to undertake additional construction. It is difficult to engage in building work while airport operations continue. Built at an estimated project cost of Rs 12,500 crore, the rebuilt airport will shortly throw open its gates for domestic and international passengers. The terminal buildings are easily one of the swankiest in the country.

Here is why the T2  terminal is unique:

1. The terminal is a four storey building which will be able to handle a maximum of 40 million passengers annually. In a congested city with continous traffic snarls to avoid delays, passengers have access to the terminal through a dedicated elevated six lane expressway.

2. The airport sprawls over 42 lakh sq mtrs of terminal space.

3. Passengers complain about the endless walking involved at the new Delhi airport. At Mumbai airport, the 37 travelators, 48 escalators and 72 elevators will make movement convenient.

4. It has the country's tallest airport escalator at 11.6 meters.
 
5. Speedy check-ins and immigration will be a huge plus. There is about 50,000 sq meters of check-in space with 188 check-in counters, 60 immigration counters (for departing passengers) and 76 counters for incoming fliers.

6. The car park at the airport will be able to accommodate 5,200 cars at any point. The nine storey car park is one of the biggest in the country.

7. The car park is expertly camouflaged. Passengers only see the largest open garden in Mumbai.

8. A three kilometer long 'art walk' titled 'Jaya He' has been built inside the T2. It displays Indian art pieces between the 8th century and 19th century

9. The retail space at the airport is a shoppers delight spanning 21,000 sq meters. Formerly, the airport had only 5000 sq meters.

10. The terminal area will have 2300 CCTV cameras and a fire alarm system with 70,000 detection devices

11. The steel used for the two roofs of the terminal would have been enough to build two Eiffel Towers.

Mumbai airport's new terminal resembles a dancing peacock


Gallery : 

...

Soon, you will have to pay for transactions at your bank’s own ‪ATM‬ too…

Banks seek to cap free ATM use at 5 times per month

MUMBAI: Account holders may end up paying the price of additional security at ATMs in the form of fewer free transactions. The Indian Banks Association (IBA) has proposed that the mandatory five free transactions that banks are required to allow in a month include even the ones at the ATMs of an account-holder's bank.

The proposal comes in the wake of higher charges that banks foresee as they have been directed to provide guards at every ATM and also have electronic surveillance in the form of CCTVs. The instructions have come from state governments in the wake of a brutal attack at an unguarded ATM kiosk in Bangalore last year.

IBA has also supported an increase in charges that banks pay each other when their customers use third-party ATMs from Rs 15 to Rs 18. At present, most banks do not charge account holders if they use the bank's own ATMs. In addition, RBI norms require every bank to allow its customers access to third-party ATMs five times a month without any charge, subject to a maximum withdrawal of Rs 10,000. Some banks provide their customers more than the mandated number of free transactions but this varies from bank to bank.

Addressing reporters, IBA chief executive M V Tanksale said that the increase will not affect most account holders since it allows more than one transaction per week. "For balance enquiry, SMS is a much more convenient option," said Tanksale, adding that reducing the number of free transactions would ensure there is no overutilization of the ATM network.

According to Tanksale, the ATM network of banks is currently around 1.4 lakh and is expected to increase to around 2 lakh in six months. "The viability of this network depends on the migration of transactions from branches to ATMs," said Tanksale. He added that given the size of the network, any increase in costs would translate into an annual increase in cost of thousands of crores.

With ATM networks seeing explosive growth, the RBI has been taking measures to ensure that all constituents are covered. The central bank has said that a percentage of all new installations should be disabled friendly. "IBA has designed a logo to highlight ATMs that are accessible to the visually challenged. This way the public can direct the visually challenged to ATMs that they can use," said Tanksale.

The other problem is that with the sudden spike in installations in the last one year, the average transactions has dropped sharply. With the government proposing to transfer subsidies and other benefits directly to individual accounts, banks are expecting a surge in transactions.

In the early days of shared payment network, banks charged anywhere between Rs 20 to Rs 60 for use of third-party ATMs. Four years ago, RBI directed banks to waive all charges, but later relented and allowed banks to charge beyond five transactions a month. (TOI)

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‘Deposits’ are not ‘loans and advances’

A number of corporates have fraudulently raised money in the guise of 'deposits' thereby avoiding the taxation applicability. To curb such a practice, a retrospective amendment to Section 2 (22) (e) to the Income Tax Act can be expected to include 'deposits' within the purview of 'loans and advances'

One of the most frequently asked question in terms of corporate funding is whether‘deposits’ are synonymous to ‘loans and advances’ and can the same be used interchangeably? This debate intensified when reference were made to Sections 295 and 370 under the Companies Act, 1956 (Act, 1956) and Section 2 (22) (e) under the Income Tax Act, 1961 (IT Act).

The controversy surrounding Section 370 under the Act, 1956 was put to rest when theCompanies (Amendment) Act, 1988, amended the section to include ‘deposits’ within its ambit; however the definition under Section 295 (pertaining to ‘loans’ to directors) continued to be neglected. This Section has now been replaced by Section 185 of the Companies Act, 2013 which failed to learn a lesson from the Act, 1956 and continues to carry forward the faulty trend.

With regard to Section 2 (22) (e) of the IT Act, a recent judgment was passed by the Income Tax Appellate Tribunal, Kolkata, in the matter of IFB Agro Industries Ltd Vs. Joint Commissioner of Income-tax which deals with this very pertinent question.
 

Facts of the case

In the present case, IFB Agro Industries (Appellant) received inter-corporate deposit (ICD) to the tune Rs11.20 crore from IFB Automotive Pvt Ltd (IFB), which was treated as deemed dividend u/s 2 (22) (e) of the IT Act by the Revenue. The Appellant contended that since Section 2 (22) (e) of the IT Act applies to only ‘loans and advances’, the ICD, not being in the nature of loan, will not come within its purview.

The Income Tax Appellate Tribunal, taking into view the explanation of ‘deposit’ contained u/s 269T and 269SS of the IT Act, held that ‘deposit’ and ‘loans’ were indeed two different and distinct terms and that if a section recognises only the term ‘loan’ then a deposit received by an assessee cannot be treated as a 'loan' for that section. Relevant extract of the said Order is reproduced below:

“Admittedly, the provisions of section 2(22)(e) of the Act refers to only ‘loans’ and ‘advances’ it does not talk of a ‘deposit’. The fact that the term ‘deposit’ cannot mean a ‘loan’ and that the two terms ‘loan’ and the term ‘deposit’ are two different distinct terms is evident from the explanation to section 269T as also section 269SS of the Act where both the terms are used. Further, the second proviso to section 269SS of the Act recognises the term ‘loan’ taken or ‘deposit’ accepted. Once it is an accepted fact that the terms ‘loan’ and ‘deposit’ are two distinct terms which has distinct meaning then if only the term ‘loan’ is used in a particular section the deposit received by an assessee cannot be treated as a ‘loan’ for that section. Here, we may also mention that in section 269T of the Act, the term ‘deposit’ has been explained vide various circular issued by CBDT. Thus, the view taken by the Ld. CIT(A) that the Intercorporate deposit is similar to the loan would no longer have legs to stand.”

Reference to other judgments

5. In reaching to the aforementioned judgment, reliance was placed on a number of other case laws which proves to one’s satisfaction that the two terms are distinguishable. Reference was made to the landmark judgment in the Durga Prasad Mandelia and Others vs. Registrar of Companies, Maharashtra which settled all controversies by pointing out the distinction between ‘deposits’ and ‘loans’ in the context of Section 370 of the Act, 1956. It contended that though the two terms ‘deposit’ and ‘loans’ may not be mutually exclusive, the intensions and circumstances of both the parties must be considered in each case to come to a conclusion. It also stated that:

“In other words, the word "loan" in section 370 must now be construed as dealing with loans not amounting to deposit, because, otherwise, if deposit of moneys with corporate bodies were to be treated as loans, then deposits within scheduled banks would also fall within the ambit of section 370 of the Companies Act.”

It is post this judgment in the Durga Prasad Mandelia case, that Section 370 of the Act, 1956 was amended by the Companies (Amendment) Act, 1988, to include ‘deposits’ into its ambit, thereby, clearly indication the distinction between ‘deposits’ and ‘loans and advances’.

5. Another judgment referred to was in the case of Housing & Urban Development Corporation Limited vs Jt. CIT (2006), in which a similar view was held. Here, the Special Bench contended that:

“The two expressions loans and deposits are to be taken different and the distinction can be summed up by stating that in the case of loan, the needy person approaches the lender for obtaining the loan therefrom. The loan is clearly lent at the terms stated by the lender. In the case of deposit, however, the depositor goes to the depositee for investing his money primarily with the intention of earning interest.”

5. In the case of Bombay Oil Industries Ltd reported in (2009) 28 SOT 383 (Bom), it was held that inter-corporate deposits were different from loans and advances and the same would not come within the purview of deemed dividend. A similar view was held in the case of Bombay Steam Navigation Company (1953)(P) Limited vs. CIT, wherein it was held that though a loan of money results in a debt but every debt does not involve a loan.

From the above judgments it becomes clear that it is the intension between the parties which demarcates the difference between ‘deposits’ and ‘loans and advances’. Under ‘loans and advances’ it is the borrower who approaches the lender for borrowing money, however, to be termed as ‘deposit’ it is the person advancing the money, who approaches the borrower.
 

What is the entire controversy surrounding Section 2 (22) (e) of the Income Tax Act, 1961?

To analyze the outcome of above case law of IFB Agro Industries Ltd, it is pertinent to first understand the applicability of Section 2 (22) (e) of the IT Act in context of our discussion above.

Section 2 (22) (e) of the IT Act defines the term ‘dividend’ to include within its ambit, the amounts paid by private limited companies, by way of loans and advances, to its shareholders holding 10% or more of the voting power or to a concern in which such a shareholder is a member or partner and has substantial interest.

Thus in essence, any ‘advance or loan’ made by a private company –

1. to a shareholder holding 10% or more of the equity capital of the company; or

2. to any ‘concern’ in which a shareholder holding 10% of the equity capital of the company, is a member or partner and holds ‘substantial interest’,

shall be ‘deemed dividend’ for the purpose of the IT Act.

After having discussed what the section tells us, the one thing that comes to mind is why this section is so disputed?

The reason is the consequence of falling within the purview of this section. If an amount given to the aforementioned persons is treated as ‘loans’ for the purposes of this section, such amounts, being ‘deemed dividend’, will attract income tax liability under the head ‘Income from other sources’ as per Section 56 of the IT Act and accordingly will be taxed @30%.

It is for this very reason that companies avoided coming within the purview of this section, and accordingly, the dispute that arose here was whether amounts extended, as above, would tantamount to ‘loans and advances’ or shall be treated as ‘deposits’ and accordingly would fall outside the purview of this Section.

In the shade various judicial pronouncements in this regard, a number of corporates have fraudulently raised money in the guise of ‘deposits’ thereby avoiding the taxation applicability of this Section. To curb such a practice, a retrospective amendment to Section 2 (22) (e) to the IT Act can be expected to include ‘deposits’ within the purview of ‘loans and advances’, in line with the amendment made to Section 370 of the Companies Act, 1956.
 

Relevance under Section 185 of the Companies Act, 2013

Section 185 of the Companies Act, 2013 (‘Act, 2013’), now enforced, corresponds to Section 295 of the Act, 1956 (which now stands inoperative). Section 185 of the Act, 2013 repeats the same flaw of Section 295 of the Act, 1956, by giving no reference to the effect that loans include deposits, thereby continuing the confusion between the two.

Section 185 provides the following provision relating to ‘Loans to Directors’:

“Save as otherwise provided in this Act, no company shall, directly or indirectly, advance any loan, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person”

The Section lays down that no loans can be advanced by a company to any of its directors as also to any person in whom the director is interested. The term ‘any person in whom the director is interested’ has been defined in the Section to mean,inter alia, a company in which a director is a director/ holds 25% voting rights/ where the Board is accustomed to act in accordance with the directions or instructions of the director.

A lot of apprehension is being expressed in connection to this Section. The questions being raised includes whether ‘inter-corporate deposits’ given to companies in which such directors are interested would also come within the purview of this Section and accordingly not permitted?

As per this Section, granting of loans to ‘anybody corporate whose Board of Directors is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company’, is prohibited. Given the above, this becomes a very potent question considering that it is a very common practice to advance money to companies within the same group, being holding/ subsidiary/ associate companies.

In light of the analysis in the above sections, and the various case laws to support the view, ‘loans’ cannot mean to include ‘deposit’. In the absence of any clarification from the Ministry, ‘inter-corporate deposits’ to holding / subsidiary / associate companies will not attract the provisions of this Section and therefore will continue to hold good.

The discussions above proves, time and again, that ‘deposits’ are not ’loans and advances’ and the provisions governing ‘loans and advances’ only cannot said to apply to ‘deposits’ as well. This fact has been well settled in law.

Once the Act, 2013 is fully enforced, the governing sections for deposits would be Sections 73 – 76 and the Rules made thereunder. However, as in Companies (Acceptance of Deposit) Rules, 1975, the draft Companies (Acceptance of Deposit) Rules, 2013 provides that amounts received by a company from any other company do not fall within the meaning of ‘deposit’. Accordingly, the provisions pertaining to inter-corporate deposits will not apply to such amounts given.

Section 372A of the Act, 1956 and the corresponding Section 186 of the Act, 2013 also provides for only inter-corporate loans. Therefore, in the absence of any other applicable provisions, such inter-corporate deposits remain un-governed.

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