RBI
Reserve Bank India (RBI) has issued The Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016. The
provisions of these Directions shall apply to every co-operative Bank
licensed or permitted to carry on banking business in India by the
Reserve Bank of India. The direction requires a Co-operative Bank to pay
interest on deposits of money (other than current account deposits)
accepted by them or renewed by them in their Domestic, Ordinary
Non-Resident (NRO), Non-Resident (External) Accounts (NRE) and Foreign
Currency (Non-resident) Accounts (Banks) Scheme {FCNR(B)} deposit
accounton certain prescribed terms. The direction
prohibits the Co-operative banks to create any kind of lien, direct or
indirect, against NRE savings deposits. This Direction shall come into
effect from 12th May, 2016.
CBDT - DOUBLE TAXATION AGREEMENT
Protocol for amendment of Convention for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital gains between India and Mauritius has been signed between both the countries on 10th May, 2016. This
protocol enables India to levy Capital Gains Tax on alienation of
shares in Indian companies which will be acquired on or after 1 April 2017. The
Protocol contains a two-year transition period during which a reduced
tax rate would apply for capital gains. The reduced tax rate will be
limited to 50% of the domestic tax rate of India, subject to the
fulfillment of the conditions prescribed. The major impact of the
protocol is that, it will help to tackle the long pending issues of
treaty abuse and streamline the flow of investment and stimulate the
flow of exchange of information between India and Mauritius. It will
improve transparency in tax matters and will help curb tax evasion and
tax avoidance.
Thanks & Regards,
Meetesh Shiroya
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