Tuesday, April 15, 2014

when Gift is taxable ? when gift is Exempted ?


When Gift is it taxable 

  • Gifts received by an individual or Hindu Undivided Family (HUF) are taxable as per the Income Tax Act, 1961 but there are a few exceptions as mentioned below. It is included under the head “Income from other sources” under Section 56(2)(viii) 
  • Gifts are taxable in the hands of recipient and there is no taxation for the donor. 

Cases for taxation 

  • Any cash gift (including gifts by cheque or drafts) received, exceeding Rs. 50,000/- 
  • Any movable property received without consideration or at a lesser consideration than its fair market value, the aggregate fair value of which is more than Rs.50,000/- 
  • Any immovable property received without consideration and its stamp duty value is more than Rs.50,000/- 
  • Any immovable property received for a consideration which is less than the stamp duty value of the property by an amount 
  • which is more than Rs. 50,000/-, the difference between the stamp duty value & the consideration shall be chargeable to tax 

Frequency 

  • In the case of immoveable property, a single transaction is considered for calculating the limit of Rs.50,000/- 
  • In other cases , all transaction in a financial year will be considered for calculation of the ceiling limit of Rs. 50,000/- 

Exempted Gifts 

The following receipts/gifts are exempted even if they are without or inadequate consideration - 

  1. From any relative; or 
  2. On the occasion of marriage of an individual; or 
  3. Under a will or by way of inheritance; or 
  4.  In contemplation of the death of the payer or donor, as the case may be; or 
  5.  From a local authority; or 
  6. From any fund, foundation, university, other educational institution, hospital, medical institution, any trust or institution referred to in Section 10 (23C) 


Note: 

  • Relative means spouse, brother or sister of assessee or spouse, brother or sister of either of the parents, any lineal ascendant or descendant of the assessee or spouse. 
  • For HUF relative means members of HUF
  • Property means immoveable property being land or building or both; shares & securities; jewellery; archeological collections; drawing, paintings, sculptures; any work of art and bullion. 
  • In few case clubbing provisions are also applicable so also read clubbing provision under Income Tax

Weapon of mass destruction called “as may be  prescribed”! read and get 25% off Companies Act 2013


Substantive law is the ‘legislated law’ that defines the principles for a particular enactment. This is done by State Assemblies for states and Parliament for the Country. Procedural law is the "machinery" for enforcing the principles set under Substantive law. “Act” is the substantive law. “Rules” made there under is the procedural law. 

Passing a new ‘Act’ or changing an existing ‘Act’ is a laborious process. However making Rules is an executive action by concerned department. Therefore it is relatively easy and less time consuming. While change in principles may be required rarely, change in the method of execution has to suit changing dynamic situations. 

Appreciating this fact, while legislating FEMA, a small set of principles only were enacted in the form of Substantive Law and concerned departments were empowered to make rules as may be appropriate to implement the principles set under FEMA. 
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This was highly appreciated and all stakeholders cherished such a move. Thereafter, many new Acts followed this route. Here and there some ill effects were observed where in the rules showed inconsistency with the substantive law. In some cases, concerned departments rectified the rules, while in some other cases rectification happened after courts ordered to do so. 

Under much awaited Companies Act, 2013 also serious effort was made to define principles only in the Act and almost every section of the Companies Act has created an enabling sentence for executive action “as may be prescribed”. It was expected that MCA is now empowered to play much better and dynamic role in responding to the needs of the corporate world and its stakeholders. 

But MCA using this power of making rules as a weapon of mass destruction was unexpected! 

Unfortunately this power used against the professionals who are supposed to be the corporate advisors and facilitators in implementing the new Companies Act, 2013. Irony? Much worse than that… 

Ensuring compliance with law is the fundamental duty of the executive wing of democracy. For this, ithas to make rules and put in the mechanism to oversee the Compliance across the territory.

Advising, monitoring, prosecuting and punishing deviation cannot be entirely done by the State, given with the huge number of businesses in the country. 

That was the reason why professional bodies like ICSI, ICAI and ICAI (Cost Accountants) were established under the Acts of Parliament. These bodies were given with the mandate of creating professionals across the country for advising on legal, financial and cost norms and laws in force from time to time. Recognitions were given under various statutes for these bodies as a facilitation.

However the way new rules concerning KMPs are framed in complete deviation with the draft rules and the
deceitful implementation of these rules ‐ are giving an impression that the executive wing is set to defeat the legislative intentions of the substantive law i.e. the Companies Act 2013 by using the enormous power delegated by the Act to the executive wing.

ICSI is not a private institute. It was formed under an Act of Parliament for enhancing corporate governance in the country. With that intention the appointment of Company Secretary and certain certifications were made mandatory. It has got a complimentary role to play with MCA. Making ICSI ineffective is clearly going against the legislative intent.

Normally, like in case of Service Tax/compulsory e filing of tax returns, new requirements are made mandatory for a smaller group of assesses/entities to start with and slowly it will be broad based. However in case of corporate governance it is going other way round. Initially the applicability was for a large section of corporate and slowly the scope is reduced to just 3% of the companies!

Every government department is making compliance more and more stringent and efficient. The Companies Act, 2013 also intended it to be so. It is evident from the fact that many concessions which existed for Private Companies are removed, punishments for non compliance was made very stringent and executive wing is empowered enormously for the proper administration of the Act.However, in contradiction, impact of these rules is cutting off the requirement of compliance officers itself from the corporate houses.

It is said that some of the officers of MCA were quoting the poor quality of CS certification as a reason for removing of certification requirement and secretarial audit requirement. This is like cutting the nose off for avoiding cold. We have been experiencing lots of problems because of high instability in the MCA e‐filing system. More than half of last year was eclipsed with inefficient running of MCA e‐filing system. That could be a good reason for  returning to physical filing mode. But, observe, no one demanded for that – everyone demanded restoring stability in MCA e‐filing system. Further it is matter of everyone’s knowledge that many corporate frauds go undiscovered because of audit inefficiencies.Whether anyone has demanded  removing audit requirement itself because of this inefficiency? When a problem is observed in a system, measures for rectification must be called for, not the removal of the system itself. 

MCA officials were heard saying that ‘they are not there to ensure job for anyone’. Who has asked for creation of ICSI? Who has asked for enhancement of corporate governance? Who mandated ICSI to propagate the course and develop Company Secretaries across the country? These are all in line with the legislative intent. A Government Department cannot go against the legislative intent and actions, jeopardizing the governance monitoring system as well as the lives of people who were developed for that purpose. If we see the statement with this context, we can only observe arrogance and not prudence. 

There was also a rumour about the unrest between MCA officials and ICSI Council causing this overnight change in the notification. We trust that both MCA officials and ICSI Council members have got maturity enough not to play around with law in retaliation with each other. Wisdom shall prevail. Any kind of conflict can be resolved if common good is kept in focus always. This is the duty of everyone, including ICSI Council and MCA.

There are other kind of rumours blaming lobbyists in the sister profession. However, in today’s world everyone understands that any new weapon invented or abetted will boomerang one day or the other.

Four and a half lakh people – members and students of ICSI ‐ can find alternate ways for leading their life. In India no one is depending up on the Government. It’s just a matter of time. However, the cost of losing a great system developed and managed with enormous commitment and sacrifices of thousands of individuals will be too huge. Rebuilding this system is a herculean task and loss to the nation. Better everyone concerned realize this soon.

By ICSI Mysore Chapter

Proposed New Roadmap for Implementation of Ind AS converged with IFRS


For convergence of Indian Accounting Standards with International Financial Reporting Standards (IFRSs), a Press Release (No.2/2010) laying down roadmap for application of converged Indian Accounting Standards (Ind AS) by companies (other than Banking companies, Insurance companies and Non-Banking Finance Companies) was issued on 22nd January, 2010. Further, a Press Release (No.3/2010) related to the roadmap for the application of the converged Indian Accounting Standards (Ind AS) by the Banking Companies, Insurance companies and Non- Banking Finance Companies was issued on 31st March, 2010. Subsequently, in response to the requests seeking clarifications on the roadmaps, a Press Release (No. 4/2010) containing a consolidated statement on clarification of roadmap was issued on May 04, 2010. However, the Ind AS placed on  the website of the MCA could not be implemented due to various reasons from 1st April, 2011 as per the aforesaid roadmaps issued.

A revised roadmap for implementation of Indian Accounting Standards (Ind AS)  finalised by the Council of the ICAI, at its last meeting, held on March 20-22, 2014, as follows, has been submitted to the Ministry of Corporate Affairs for its consideration: 


1. As stated in earlier roadmaps for achieving convergence, there shall be two separate sets of Accounting Standards notified under the Companies Act, 1956. First set would comprise the Indian Accounting Standards (Ind AS) converged with the IFRSs which shall be applicable for preparation of consolidated financial statements as defined in the Companies Act, 2013, of the specified class of companies. The second set would comprise the existing notified Accounting Standards (AS) and shall be applicable for preparation of individual financial statements of the companies preparing consolidated financial statements as per Ind AS and for financial statements of other companies.

2. The first set of Accounting Standards i.e. converged Indian Accounting Standards (Ind AS) shall be applied to the following specified class of companies for preparing their first Indian Accounting Standards (Ind AS) consolidated financial statements for the accounting period beginning on or after April 1, 2016, with comparatives for the year ending 31st March 2016 or thereafter:

  • (a) Whose equity and/or debt securities are listed or are in the process of listing on any stock exchange in India or outside India; or
  • (b) Companies other than those covered in (a) above, having net worth of Rs. 500 crore or more
  • (c) Holding, subsidiary, joint venture or associate companies of companies covered under (a) or (b) above.

3. Companies to which Indian Accounting Standards (Ind AS) are applicable shall prepare their first set of consolidated financial statements in accordance with the Indian Accounting Standards (Ind AS) effective at the end of its first Ind AS reporting period unless otherwise specified, i.e., companies preparing consolidated financial statements for the accounting period beginning on or after April 1, 2016 shall be required to apply the Ind AS effective for financial year ending on 31st March 2017.

4. Calculation of net worth 

For the purpose of calculation of qualifying net worth of companies, the following rules shall apply:

  • (a) The net worth shall be calculated as per the stand alone audited balance sheet of the company falling under any of the categories covered under 2 above as at 31st March 2014 or the first balance sheet for accounting periods which end after that date.
  • (b) The net worth shall be calculated as the paid-up Share Capital plus Reserves and Surplus less Revaluation Reserve.
  • (c) For companies which are not in existence on 31st March 2014 or an existing company meets the criteria for the first time after 31st March, 2014, the net worth shall be calculated on the basis of the first balance sheet ending after that date.

5. Voluntary Adoption

  • (a) Companies not mandatorily required to follow Indian Accounting Standards (Ind AS) shall have the option to apply the Indian Accounting Standards (Ind AS) voluntarily for their consolidated financial statements provided they prepare consolidated financial statements under the Indian Accounting Standards (Ind AS) consistently thereafter.
  • (b) The option to apply the Indian Accounting Standards (Ind AS) voluntarily, once exercised, therefore, shall be irrevocable. Such companies would not be required to prepare another consolidated financial statements in accordance with existing Accounting Standards (AS).


6. Discontinuing use of the first set of Accounting Standards (i.e. the Indian Accounting Standards)Once a company starts following the first set of Accounting Standards for consolidated financial statements, i.e., the Indian Accounting Standards (Ind AS) on the basis of the eligibility criteria, it shall be required to follow such Accounting standards for all the subsequent Consolidated Financial Statements even if any of the eligibility criteria does not subsequently apply to it.

7. The roadmap for banks, NBFCs and Insurance Companies will be decided in consultation with RBI and IRDA.

Sunday, April 13, 2014

Applicability of the Companies Act, 2013 to Auditor’s Report to FY 2014-15 and Onwards:Clarification


The Ministry of Corporate Affairs, on 26th March 2014 notified a majority of the remaining sections of the Companies Act, 2013, including sections 139 to 148, relating to audits and auditors. The Act was stated to be effective from 1st April, 2014.

Accordingly, queries are being raised by a number of members as to whether any auditor’s report of a company being signed on or after 01st April, 2014 would be in accordance with the requirements of section 143 of the Companies Act, 2013.

In this context, it may be noted that the Ministry of Corporate Affairs (MCA) has, on 04th April 2014, vide its General Circular No. 08/2014, clarified that the financial statements (and documents required to be attached thereto), auditor’s report and Board’s report in respect of financial years that commenced earlier than 01st April, 2014 shall be governed by the relevant provisions/Schedules/rules of the Companies Act 1956.

This MCA Circular can be seen at URL 


Therefore, it is clear from MCA’s aforesaid General Circular that the auditor’s report of a company pertaining to any financial year commencing on or before 31st march 2014, would be in accordance with the requirements of the Companies Act, 1956 even if that financial year ends after 01st April 2014. For example, where the financial year of a company is 01st January 2014 to 31st December 2014, the statutory auditor’s report signed therefor would be in accordance with the requirements of the Companies Act, 1956.

As a corollary to MCA’s General Circular, it appears that the provisions of the 2013 Act would apply only to the financial years commencing on or after 01st April 2014. Thus, for example, the statutory auditor’s report signed in respect of the financial year of the company ended 31st March 2015 would need to be issued in accordance with the provisions of the Companies Act, 2013.


Issued by Auditing & Assurance Standards Board Of ICAI

Saturday, April 12, 2014

Important points to file Form 24Q-TDS on Salary-Q4 TDS statements for FY 2013-14


As esteemed stakeholder of CPC(TDS), it may be noted that the due date for filing 24Q quarterly TDS statement for 4th quarter of FY 2013-14 is approaching fast. You are advised to file TDS statements well before due date (15th May, 2014).

It is also requested to refer to Circular 8 of 2013 dated October 10, 2013 in the context of Tax Deduction at Source on Salary Income for Computation of Income and Manner of deduction of tax at source.

In addition, please make note of the following key facts before filing the quarterly TDS statement:

Correct Reporting:

  • Cancellation of TDS statement and deductee row is no longer permissible. Accordingly, it is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS statement.
  • Validate PAN and name of fresh deductees from TRACES before quoting it in TDS statement. TAN-PAN Master can be downloaded from TRACES and be used to file statement to avoid quoting of incorrect and invalid PANs.
  • Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower rate on the basis of certificate issued by the Assessing Officer. Please raise Flag “A” in the statement for such instances.
  • TDS statement must be filed by quoting challan(s) validated by CSI (Challan Status Inquiry) File and using correct Challan Identification Number (CIN)/ Book-entry Identification Number(BIN).


Complete Reporting:
Message :One More information for all of You that TDSMAN software for etds returns is now available with discount for simpletaxindia readers and further you can also download trail version and file returns free for total 30 entries.


  • Please also complete Annexure II for all employees who work or have worked for any period of time during the current financial year, including Annexure I for TDS details. TDS Certificates will not be generated for deductees, for whom Annexure II has not been completed.
  • For employees who are employed with more than one employer/ different branch offices, during the financial year, employee should declare previous salary and TDS details, if any, with the current employer and the same should be considered by the current employer while deducting TDS on salary. If taxes have been deducted by previous employer(s)/ branch(es), CPC(TDS) will issue Form 16 Part A to respective employer(s)/ branch(es) during the Financial Year. Part B is to be issued by the employer(s)/ branch(es).
  • Completeness of statement will ensure that a C5, C3 or C9 correction can be avoided. It may be noted that CPC (TDS) does not encourage C9 corrections by addition of a new challan and underlying deductees.


Mandatory Downloading of TDS Certificates from TRACES:

  • On the basis of information submitted by the deductor, CPC(TDS) will issue TDS Certificates that can be correct depending on correct and complete reporting by deductors.
  • Your attention is invited to CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from TRACES.
  • Please note that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source.
  • You can refer to our e-Tutorial to download TDS Certificates.

Please submit the statement within due date to avoid Late filing fee, which, being statutory in nature, cannot be waived. It is therefore, suggested to take appropriate action with respect to the above while filing TDS statements.

Thursday, April 10, 2014

Important points for filing Q4 TDS statements for Financial Year 2013-14


CPC (TDS) is reaching out to you to ensure that the best practices are followed for filing of your Q4 TDS statements. The emphasis is on timely, correct and complete reporting for taxes deducted at source, to ensure that the deductees are able to correctly claim TDS Credits and for generating correct TDS Certificates. As the due date for filing quarterly TDS statement for 4th quarter is approaching close, you are requested to take note of following important information before submitting TDS statements.


  • In accordance with Central Government Account (Receipts and Payments) Rules, 1983, Government dues are deemed to have been paid on the date on which the cheque or draft tendered to the bank, was cleared and entered in the receipt scroll.
  • Rule 125 of Income Tax Rules, 1962 provisions for Electronic Payment of Tax by way of internet banking facility, for a Company and a Person to whom provisions of section 44AB of the Act are applicable.


Timely Filing:



Correct Reporting:

  • Please use your correct contact details, including Contact Number and email IDs in TDS Statements.
  • It is very important to report correct and valid particulars in respect to deductor and deductees. Please report the TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax correctly in the quarterly TDS statement.
  • Please make use of TAN-PAN Master from TRACES to Validate PAN and name of deductees before quoting it in TDS statement. Please note that there are restrictions for correction of PAN.
  • Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at Lower/Nil rate on the basis of certificate issued by the Assessing Officer. Please raise Flag “A”/ “B”, as appropriate, and quote valid and correct Certificate Numbers.
  • TDS statement must be filed by quoting challan(s) using correct Challan Identification Number (CIN), validated by CSI (Challan Status Inquiry) File and correct Book Identification Number (BIN), as appropriate.
  • Please maintain your correct Contact details in your Registration profile at TRACES.


Complete Reporting:

  • Please ensure completeness of your TDS statement by including all your deductees. Please note that the obligation to report each transaction correctly in the relevant quarter is on the deductor and non-compliance amounts to incorrect verification of completeness of TDS statement.
  • Completeness of statement will ensure that a C5, C3 or C9 correction can be avoided. It may be noted that CPC (TDS) does not encourage C9 corrections by addition of a new challan and underlying deductees.
  • Please also complete Annexure II (in case of 24Q) for all deductees employed for any period of time during the current financial year, including Annexure I for TDS details.


Downloading TDS Certificates from TRACES:

  • On the basis of information submitted by the deductor, CPC(TDS) will issue TDS Certificates that can be correct depending on correct and complete reporting by deductors.
  • Your attention is invited to CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from TRACES.
  • Please note that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source.

Changes In Public Provident Fund Scheme (PPF) scheme amendment rules 2014


NOTIFICATION NO. GSR 225(E) [F.NO.2/7/2012-NS-II]DATED 13-3-2014
In exercise of the powers conferred by section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby makes the following rules further to amend the Public Provident Fund Scheme 1968, namely:—
1. (1) These rules may be called the Public Provident Fund Scheme (Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In Public Provident Fund Scheme in paragraph 4, for sub-paragraph (1), (2), (3) and (4) the following shall be substituted, namely:—
"4. (1) Every individual desirous of subscribing to Fund under the Scheme for the first time either on his own or on behalf of a minor of whom he is the guardian shall apply to the Accounts Office in Form A form, together with the amount of initial subscription which shall be minimum of Rs.100.
(2) On receipt of an application under sub-paragraph (1), the Accounts Office shall open an account in the name of the subscriber and issue a passbook to him, wherein all amount of deposits, withdrawals, loans and repayment thereof together with interest due shall be entered over the signature of the Accounts Officer with the date stamp.
Provided that in case of Post Offices working on Core Banking solution platform, a statement of account shall be issued in place of passbook at the discretion of account holder.
(3) The subscriber shall deposit his subscription with the Accounts Office with challan in Form B, or as near thereto as possible and the counterfoil of the challan shall be returned to the depositor by the Accounts Office, duly evidenced by receipt. And in case of deposits made by cheque or draft or pay order, the Accounts Office may issue a paper token to the depositor pending realization of the proceeds.
(4) Every subscription shall be made in cash or crossed cheque or draft or pay order in favour of the Accounts Office at the place at which that office is situated.
Provided that where the Account office is working on Core Banking platform, every subscription shall be made either by cash, cheque, draft, pay orders or any electronic mode in any Account office working on Core Banking Solution Platform."

Date of Clearance of cheque shall be date of Deposit in Post office RD account


Post office recurring Deposit rules has been amended vide notification dated 13/03/2014.As per new rules Date of Clearance of cheque shall be treated  date of Deposit in Post office RD account .Further new rules has been framed for non deposit of instalments in RD account and regularisation of such irregular accounts.


POST OFFICE RECURRING DEPOSIT (AMENDMENT) RULES, 2014 - AMENDMENT IN RULE 6
NOTIFICATION NO. GSR 221(E) [F.NO.2/7/2012-NS-II]DATED 13-3-2014
In exercise of the powers conferred by Section 15 of the Government Savings Bank Act, 1873 (5 of 1873), the Central Government hereby makes the following rules further to amend the Post Office Recurring Deposit Rules, 1981, namely:—
1. (1) These rules may be called the Post Office Recurring Deposit (Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Post Office Recurring Deposit Rules, 1981,
(i) in rule 6, for sub-rule (4), the following sub-rule shall be substituted, namely:—
 "(4) Where a deposit is made by means of a cheque, pay order or demand draft, the date of its clearance into the Post Office Savings Bank shall be deemed to be the date of deposit."
(ii) in Rule 7, for sub-rule (2), the following sub-rule shall be substituted, namely:—sub-rule (2) of Rule 7 shall be substituted by the followings:—
 "(2) If there are more than four defaults, the account shall be treated as discontinued and revival of the account shall be permitted only within a period of two months from the month of fifth default and in case a depositor fails to deposit next monthly deposit within the time prescribed in sub-rule (3) of rule 6, a default fee at the rate of five paise for every five rupee per defaulted deposits shall also be paid along with regular monthly deposit.
 (3) An account, in which all defaulted deposits are deposited with prescribed default fee and prescribed time as specified in sub-rule (2) shall not be treated as discontinued:
 Provided that notwithstanding anything contained in sub-rule (1), sub-rule (2) in the case of personal of Defence Services (excluding Civilian Defence Employees).
(i) if there are not more than seven defaults in the monthly deposits, the depositor may, at his option, extend the maturity period of the account by as many months as the number of defaults and deposit the defaulted deposits during the extended period.
(ii) If there are more than seven defaults in the monthly deposits, the account shall be treated as discontinued and the revival of the account shall be permitted only within a period of two months from the month of eighth default, subject to payment of default fee and defaulted deposits."

E payment-ATM-E transfers allowed in CBS Branches of Post offices


Major changes has been made in POST office saving Bank accounts rules by ministry of Finance . Now you can deposit funds in post office saving account at any CBS branches of Post Branches.Further CBS branches can issue debit card or ATM card to the customers.

POST OFFICE SAVINGS BANK GENERAL (AMENDMENT) RULES, 2014 - AMENDMENT IN RULES 2, 4, 5, 6, 8 AND 15

NOTIFICATION NO. GSR 219(E) [F.NO.2/7/2012/NS-II], DATED 13-3-2014

In exercise of the powers conferred by section 15 of the Government Savings Bank Act, 1873 (5 of 1873), the Central Government hereby makes the following rules further to amend the Post Office Savings Bank General Rules, 1981, namely :—

1. (1) These rules may be called the Post Office Savings Bank General (Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Post Office Savings Bank General Rules, 1981, hereinafter referred to as the said rules in rule 2, after clause (v), the following clause shall be inserted, namely:—
(w) "Post Office with Core Banking Solution platform" means Post Office Savings Bank working on Core Banking Solution software.

3. In the said Rules, in rule 4, after sub-rule (4), the following sub-rule shall be inserted, namely:—

"(5) In case, of an account standing at any Post Office with Core Banking Solution platform, deposit may be made at any other post office with Core Banking Solution platform within the limits prescribed and by paying such fee as may be specified by the Central Government by notification in the official Gazette.

4. In the said rules, in rule 5, in sub-rule (1), after clause (e), the following clause shall be inserted, namely:—

"(i) (f) in the accounts standing in post offices with Core Banking Solution platform, the deposit may be made by any electronic mode."
(ii) for sub-rule (2), the following sub-rule shall be substituted namely:—

"(2) Each deposit shall be accompanied by a pay-in-slip provided that at any Post Office on Core Banking Solution platform, the deposit shall be accepted by any electronic mode."

5. In the said rules, in rule 6, sub-rule (3) shall be numbered as clause (i) thereof and after clause (i) as so numbered,
The following clause shall be inserted namely:—

"(ii) In case of an account standing at any post office with Core Banking Solution platform in place, the Post Office Savings Bank shall on the request from the depositor or otherwise may issue Automated Teller Machine or debit card to the savings account holder on payment of such fee as may be specified by the Central Government by notification in the official Gazette" and the account holder having account in Post Offices with Core Banking Solution Platform may also withdraw money by using any electronic mode."

6. In the said Rules, in rule 8 in sub-rule (i), the following provisos shall be inserted, namely:—

(i) "Provided that in post offices working on Core Banking Solution platform, a statement of account may be issued in lieu of passbook at the option of the customer on payment of such fees specified by the Central Government by notification in the official Gazette.
Provided further that balance and transactions shown in the Passbook or statement of account shall be for the information of the depositor."
(ii) for sub-rule (4), the following sub-rule shall be substituted, namely :—

"(4) The passbook shall ordinarily be presented for all withdrawals or deposits made at the counter and in case, deposits or withdrawals are made by using cheque or any electronic mode, the passbook, wherever issued, may be presented to the Post Office Savings Bank as soon as possible thereafter for bringing it up-to-date."

7. In the said rules, in rule 15, for clause (a), the following clause shall be substituted, namely:—

"(a) responsible to a depositor for any fraudulent withdrawal by a person obtaining possession of the passbook or Automated Teller Machine or Debit card or a cheque from the cheque book of the depositor or by using any electronic mode of withdrawal."

Wednesday, April 9, 2014

Post Office Time Deposit Accounts to be renewed automatically ,Interest to paid if withdrawn before one year


Two major changes has been made in Post office Time Deposit scheme.

First is that in CBS(core banking solution) post office branches ,if a Time deposit due for repayment ,but not withdrawn then it shall be automatically renewed from the date of maturity for a same period for which it was opened initially. Rate of interest as applicable on the date of renewal shall be allowed on renewed time deposit. The new rule shall be applicable only in the branches where core banking platform is installed.

Second  Major change is ,Interest payment of time deposit withdrawn  prematurely before the expiry of 1 year from date of deposit . On such withdrawn ,no interest is being paid earlier but after this amendment ,if customer withdraw deposit before the expiry of one year from date of deposit ,then post saving bank deposit interest shall be payable. 


POST OFFICE TIME DEPOSIT (AMENDMENT) RULES, 2014 - AMENDMENT IN RULE 6

NOTIFICATION NO. GSR 222(E) [F.NO.2/7/2012/NS-II], DATED 13-3-2014

In exercise of the powers conferral by Section 15 of the Government Savings Bank Act, 1873 (5 of 1873), the Central Government hereby makes the following rules further to amend the Post Office Time Deposit Rules, 1981, namely:—
1. (1) These rules may be called the Post Office Time Deposit (Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. In Post Office Time Deposit Rules, 1981—
(i) in Rule 6, sub-rule (3), after clause (b), the following clause shall be inserted, namely:—

"(c) where a deposit in an account standing at the post office working on Core Banking platform become due for repayment, the account shall be automatically renewed from the date of maturity for the same period for which it was opened initially and the deposit shall be eligible for rate of interest ' applicable on the date of renewal."

in rule 8,—
(a) clause (a) shall be omitted;
(b) for clause (aa), the following clause shall be substituted, namely:—
(aa) Where a deposit in 1-year, 2-year, 3-year or 5-year account is withdrawn prematurely before the expiry of 1 year from date of deposit, interest at the rate applicable to post office savings account from time to time shall be payable to the depositor."

HOW TO OPEN DOCX, XLSX, PPTX IN MS OFFICE 2003


For all those members who have MS Office 2003 or older versions:

Please follow below mentioned steps to make your current version (e.g. MS Office 2003) to be able to open all Office 2007 as well as 2010 versions with minor formatting and visual inabilities, (follow the Figures in the end for better understanding):

1. Open your Browser (e.g. Internet Explorer, Mozilla)

2. In the Address Bar paste this link:

http://www.microsoft.com/download/en/details.aspx?id=3 , this link to directly go the page.

(All the instructions are given on that page, still for your convenience: )

3. You’ll find a Download button, click on it.

4. A file named “FileFormatConverters.exe” will be downloaded. But before downloading it will take you to another page for confirmation, and there also you will get a link Start download, clicking on it might not be necessary.

5. In the small Download confirmation window click on Save, and the download will start.

6. After completion Double Click the file FileFormatConverters.exe and follow the steps (mostly “I accept”, Next, Yes), and you are done.

7. Now you will see that all the .docx, .xlsx and .pptx files will have an office Icon and double click any of them to open, edit and save. You will have minor problems if the files contain some special formatting, graphics and designs. But that won’t make the file hard to open.

By installing the Compatibility Pack you will be able to open, edit, and save files using the file formats in newer versions of Word, Excel, and PowerPoint.