Arun Jait­ley, Min­is­ter of Fi­nance

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The HUDCO Ini­tial Pub­lic Of­fer­ing (IPO) saw an ex­cep­tional level of in­ter­est and the Is­sue as a whole was over­sub­scribed by more than 79 times. Bids worth Rs. 97,000 crores were re­ceived for an is­sue size of Rs. 1,200 crores. This is the high­est level of over­sub­scrip­tion wit­nessed in a di­vest­ment by Gov­ern­ment of In­dia through IPO route. The HUDCO IPO is the first IPO by a Cen­tral Pub­lic Sec­tor En­ter­prise (CPSE) un­der dis­in­vest­ment since April 2012. The Qual­i­fied In­sti­tu­tional Buy­ers (QIB) cat­e­gory was sub­scribed more than 55 times with about 38% de­mand from For­eign In­sti­tu­tional In­vestors (FIIs). Non-in­sti­tu­tional cat­e­gory was sub­scribed more than 330 times. The re­tail cat­e­gory also saw a strong de­mand of more than 10 times. The IPO re­ceived more than 20 lakh ap­pli­ca­tions, which is the high­est num­ber of ap­pli­ca­tions re­ceived in an IPO post Se­cu­rity and Ex­change Board of In­dia (SEBI) mak­ing manda­tory use of Ap­pli­ca­tions Sup­ported by Blocked Amount (ASBA) mode for all cat­e­gories of in­vestors. The HUDCO IPO was open for sub­scrip­tion from 8th May to 11th May. The price band was fixed at Rs. 56 – Rs. 60 per eq­uity share of the face value of Rs.10, with a dis­count of Rs. 2 for re­tail in­vestors and the em­ploy­ees of the Com­pany. A to­tal of 20.4 crore shares were of­fered by Gov­ern­ment of In­dia in­clud­ing em­ployee reser­va­tion of 38.7 lakh shares and 50% of the net of­fer be­ing re­served for QIBs. The Com­mit­tee con­sti­tuted by the Fi­nance Min­is­ter to sug­gest the ar­eas in re­spect of which fur­ther In­come Com­pu­ta­tion and Dis­clo­sure Stan­dards (ICDS) may be no­ti­fied un­der the In­come Tax Act, 1961 (‘the Act’) has sug­gested the no­ti­fi­ca­tion of ICDS in re­spect of Real Es­tate Trans­ac­tions and sub­mit­ted the draft of the same. The draft ICDS sub­mit­ted by the com­mit­tee is based on the Guid­ance

Note is­sued on Real Es­tate Trans­ac­tions is­sued by In­sti­tute of Char­tered Ac­coun­tants of In­dia (ICAI). For the pur­poses of pro­vid­ing uni­for­mity and cer­tainty and har­mon­is­ing the same with pro­vi­sions of the Act, the com­mit­tee sug­gested cer­tain changes in draft ICDS. The draft ICDS on Real Es­tate Trans­ac­tions along with the sig­nif­i­cant changes sug­gested in ICDS vis-à-vis the Guid­ance Note is­sued by ICAI are up­loaded on the In­come-tax web­site at http://www.in­cometaxin­dia.gov. in. The Cen­tral Board of Direct Taxes (CBDT) in­vites com­ments from stake­hold­ers on the draft ICDS on Real Es­tate Trans­ac­tions, which may be sub­mit­ted to Di­rec­tor TPL-III by e-mail at dirtpl3@nic.in by 26th May, 2017. Sec­tion 145(2) of the In­come-tax Act, 1961 (‘the Act’) pro­vides that the Cen­tral Gov­ern­ment may no­tify In­come Com­pu­ta­tion and Dis­clo­sure Stan­dards (ICDS) for any class of as­sessees or for any class of in­come. Ac­cord­ingly, Cen­tral Gov­ern­ment no­ti­fied 10 ICDS vide No­ti­fi­ca­tion No. S.O. 3079 (E) dated 29th Septem­ber, 2016. Th­ese ICDS in­ter-alia con­tain pro­vi­sions re­lat­ing to val­u­a­tion of in­ven­tory; con­struc­tion con­tracts; ef­fects in changes of for­eign ex­change rates, bor­row­ing costs etc. Th­ese ICDS are ap­pli­ca­ble from as­sess­ment year 2017-18 (pre­vi­ous year 201617) in re­spect of spec­i­fied as­sessees for com­pu­ta­tion of in­come un­der the head “Prof­its and gains of busi­ness or pro­fes­sion” or “In­come from other sources”. The Fi­nance Min­is­ter had con­sti­tuted a Com­mit­tee com­pris­ing of ex­perts from ac­count­ing field, de­part­men­tal of­fi­cers and rep­re­sen­ta­tives from the In­sti­tute of Char­tered Ac­coun­tants of In­dia (ICAI) to sug­gest the ar­eas in re­spect of which fur­ther ICDS may be no­ti­fied un­der the Act. The In­come Tax (IT) Depart­ment has made it easy for tax­pay­ers to link their PAN with Aad­haar. Re­spond­ing to griev­ances of tax­pay­ers re­gard­ing dif­fi­cul­ties in link­ing PAN with Aad­haar as their names did not match in both sys­tems (e.g., names with ini­tials in one and ex­panded ini­tials in an­other), the IT Depart­ment has come out with a sim­ple so­lu­tion now.

Tax­pay­ers can go to http://www. in­cometaxin­di­ae­fil­ing.gov.in and click on the link on the Left Pane à Link Aad­haar, pro­vide PAN, Aad­haar num­ber and EN­TER NAME EX­ACTLY AS GIVEN IN AAD­HAAR CARD (avoid spell­ing mis­takes) and Sub­mit. Af­ter ver­i­fi­ca­tion from UIDAI, the link­ing will be con­firmed. In case of any mi­nor mis­match in Aad­haar name pro­vided by tax­payer when com­pared to the ac­tual data in Aad­haar, a One Time Pass­word (Aad­haar OTP) will be sent to the mo­bile reg­is­tered with Aad­haar. Tax­pay­ers should en­sure that the date of birth and gen­der in PAN and Aad­haar are ex­actly same. In a rare case where Aad­haar name is com­pletely dif­fer­ent from name in PAN, then the link­ing will fail and tax­payer will be prompted to change the name in ei­ther Aad­haar or in PAN data­base. There is no need to lo­gin or be reg­is­tered on E-fil­ing web­site. This fa­cil­ity can be used by any­one to link their Aad­haar with PAN. This fa­cil­ity is also avail­able af­ter lo­gin on the e-fil­ing web­site un­der Pro­file set­tings and choose Aad­haar link­ing. The de­tails as per PAN will be pre-pop­u­lated. En­ter Aad­haar num­ber

and EN­TER NAME EX­ACTLY AS GIVEN IN AAD­HAAR CARD (avoid spell­ing mis­takes) and Sub­mit. Tax­pay­ers are re­quested to use the sim­pli­fied process to com­plete the link­ing of Aad­haar with PAN im­me­di­ately. This will be use­ful for E-Ver­i­fi­ca­tion of In­come Tax re­turns us­ing OTP sent to their mo­bile reg­is­tered with Aad­haar. Dr. Has­mukh Ad­hia, Rev­enue Sec­re­tary, Gov­ern­ment of In­dia, ex­pressed his sat­is­fac­tion with the prepa­ra­tion for the roll-out of Goods and Ser­vices Tax (GST) from 1st July, 2017. He was hold­ing a de­tailed re­view of IT Pre­pared­ness for GST Sys­tem at the Goods and Ser­vices Tax Net­work (GSTN) of­fice in na­tional cap­i­tal yes­ter­day. The meet­ing was at­tended by Smt. Vanaja N. Sarna, Chair­per­son Cen­tral Board of Ex­cise and Cus­toms (CBEC), Shri Navin Ku­mar, Chair­man GSTN, Shri B. N. Sharma, Ad­di­tional Sec­re­tary Rev­enue, Shri S. Ramesh, Mem­ber CBEC, Shri Prakash Ku­mar, CEO GSTN, Shri Binod H. R., Ex­ec­u­tive Vice Pres­i­dent, In­fosys and Shri C. N. Raghu­pathi, In­fosys In­dia Busi­ness Unit Head. Dr. Ad­hia re­viewed GST Sys­tem pre­pared­ness of GSTN and CBEC. He was briefed about the soft­ware sys­tem be­ing de­vel­oped for GST, train­ing of tax of­fi­cials and out­reach pro­gram be­ing un­der­taken by Tax De­part­ments across the na­tion. Out of 62,937 tax of­fi­cials, 24,668 tax of­fi­cials have been given hands-on train­ing on the ap­pli­ca­tion soft­ware on live sys­tem while the re­main­ing of­fi­cials will be trained by 15th June, 2017. The train­ing is be­ing con­ducted on Reg­is­tra­tion, Re­turns and Pay­ment Mod­ules de­vel­oped by GSTN. GSTN is also con­duct­ing a pi­lot on GST Sys­tem Soft­ware from 2nd May to 16th May, 2017, where 3200 tax­pay­ers drawn from each State/UT and Cen­tre will be par­tic­i­pat­ing. The pi­lot cov­ers all the three mod­ules and is be­ing run to give the tax­pay­ers first hand op­por­tu­nity to work on the live sys­tem as the cre­ation of re­turn has be­come an in­ter­ac­tive process. This pi­lot will also give an op­por­tu­nity to test all the mod­ules by a large set of users in real life en­vi­ron­ment so that all pos­si­ble sce­nar­ios get tested. All stake­hold­ers in­volved in the GST Sys­tem from tax­payer to bank to RBI to ac­count­ing au­thor­i­ties are par­tic­i­pat­ing in this ex­er­cise which is like a re­hearsal for the real roll­out. The feed­back from the pi­lot will be used to fur­ther im­prove the GST Soft­ware. The mod­ules cov­ered un­der the pi­lot are: • Upload of in­voice data us­ing Off­line Tool, de­vel­oped by GSTN Cre­ation of Sup­ply Re­turn (GSTR-1) View­ing auto-gen­er­ated in­ward sup­ply (Pur­chase) Re­turn (GSTR2A) Edit­ing of GSTR-2A by pur­chaser to cre­ate fi­nal in­ward sup­ply re­turn (GSTR-2) View­ing and ac­cep­tance/ re­jec­tion of added in­voice data by pur­chaser (GSTR-1A) View­ing Sys­tem gen­er­ated GSTR-3, pay­ment of taxes us­ing net bank­ing and sub­mis­sion of GSTR-3. Cre­ation of bank scroll by Banks and RBI, Rec­on­cil­i­a­tion of pay­ment by Ac­count­ing Au­thor­i­ties with data re­ceived from Banks and RBI The Rev­enue Sec­re­tary Dr Ad­hia also re­viewed the progress on en­roll­ment of ex­ist­ing tax­pay­ers. As on 30th April 2017, when Phase-1 of en­roll­ment was closed, 60.5 lakh tax­pay­ers out of 84 lakh had en­rolled. The en­roll­ment win­dow will be re-opened for 15 days from 1st June,2017 to give an­other op­por­tu­nity to tax­pay­ers to en­roll.

Arun Jait­ley, Min­is­ter of Fi­nance

Dr. Has­mukh Ad­hia, Rev­enue Sec­re­tary, Gov­ern­ment of In­dia

Smt. Vanaja N. Sarna, Chair­per­son, CBEC

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