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Economic Times
12-06-2025
- Business
- Economic Times
Finance Ministry eases rules for bonus share issue by companies in FDI-barred sectors
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The finance ministry has amended rules to allow Indian companies, engaged in sectors where the foreign direct investment (FDI) is barred, to issue bonus shares to their pre-existing non-resident the stakes of such shareholders must remain unchanged even after the bonus share issue, the ministry said while notifying the Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2025. The new rules take effect from June move, experts said, will allow the companies flexibility to go for equity restructuring and also improve capital management without breaching the extant FDI policy The notification comes after a similar relief was announced in the FDI policy in April by the Department for Promotion of Industry and Internal Trade (DPIIT) in ministry has now brought about the change by introducing a new sub-rule in the Foreign Exchange Management (Non-debt Instruments) Rules, notification also said any 'bonus shares issued to such shareholders prior to the date of commencement of this sub-rule shall be deemed to have been issued in accordance with the provisions of these rules' or some other related move is part of the broader government efforts to further liberalise the rules on equity investments to enable India to attract more foreign Jhunjhunwala, Sandeep Jhunjhunwala, partner at Nangia Andersen LLP, said the notification makes it clear that 'bonus issues done in the past would (also) get a retrospective benefit of this clarificatory amendment'.It also aims to remove any ambiguity over the retrospective application of such a relaxation introduced in the FDI policy by the DPIIT in April, he added. The ambiguity had arisen due to the fact that FDI rule changes are usually implemented secretary Ajay Seth had in February told ET that the finance ministry and the Reserve Bank of India were in talks to further ease foreign exchange rules, especially with regard to non-debt instruments, and update them to modern that sector-specific limits for FDI have already been substantially relaxed, the government is turning its attention to easing restrictive regulations to woo foreign investors amid global scaled a peak of almost $85 billion in FY22, total FDI inflows into India fell over two years to touch $71 billion in FY24. It again rebounded to $81 billion last fiscal.
Time of India
12-06-2025
- Business
- Time of India
Finance Ministry eases rules for bonus share issue by companies in FDI-barred sectors
The finance ministry has amended rules to allow Indian companies, engaged in sectors where the foreign direct investment (FDI) is barred, to issue bonus shares to their pre-existing non-resident shareholders. However, the stakes of such shareholders must remain unchanged even after the bonus share issue, the ministry said while notifying the Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2025. The new rules take effect from June 11. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dog licks arent kisses. Heres what your dog really means when it licks you. Novelodge Undo The move, experts said, will allow the companies flexibility to go for equity restructuring and also improve capital management without breaching the extant FDI policy . The notification comes after a similar relief was announced in the FDI policy in April by the Department for Promotion of Industry and Internal Trade (DPIIT) in April. The ministry has now brought about the change by introducing a new sub-rule in the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. Live Events The notification also said any 'bonus shares issued to such shareholders prior to the date of commencement of this sub-rule shall be deemed to have been issued in accordance with the provisions of these rules' or some other related regulations. The move is part of the broader government efforts to further liberalise the rules on equity investments to enable India to attract more foreign capital. Sandeep Jhunjhunwala, Sandeep Jhunjhunwala, partner at Nangia Andersen LLP, said the notification makes it clear that 'bonus issues done in the past would (also) get a retrospective benefit of this clarificatory amendment'. It also aims to remove any ambiguity over the retrospective application of such a relaxation introduced in the FDI policy by the DPIIT in April, he added. The ambiguity had arisen due to the fact that FDI rule changes are usually implemented prospectively. Finance secretary Ajay Seth had in February told ET that the finance ministry and the Reserve Bank of India were in talks to further ease foreign exchange rules, especially with regard to non-debt instruments, and update them to modern standards. Given that sector-specific limits for FDI have already been substantially relaxed, the government is turning its attention to easing restrictive regulations to woo foreign investors amid global headwinds. Having scaled a peak of almost $85 billion in FY22, total FDI inflows into India fell over two years to touch $71 billion in FY24. It again rebounded to $81 billion last fiscal.
Time of India
05-06-2025
- Business
- Time of India
Company board report to have details of sexual harassment complaints, compliance with maternity benefit rule
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The corporate affairs ministry on Thursday amended rules to stipulate that from next month, a listed company's board report will have to include details of the number of complaints of sexual harassment received and disposed of in a year, and its compliance with legal provisions relating to maternity move, experts said, will foster gender equality and justice at the workplace and help female a notification, the ministry said the board report will also have to flag the number of sexual harassment cases pending within the company for more than 90 on the issue of sexual harassment, the board report includes only a statement on the company's compliance with provisions of constituting an internal complaints committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, changes, part of the Companies (Accounts) Second Amendment Rules, 2025, will be effective from July 14, it board report is a comprehensive document that captures both financial and non-financial information, and aims to inform stakeholders about the overall financial position of the company and its operation and scope of business. This is usually prepared at the end of a fiscal board report contains details such as the company's steps for energy conservation, tech adoption and foreign exchange earnings and outgo. among other things. Sandeep Jhunjhunwala , partner at Nangia Andersen LLP, said the amendments 'demonstrate the importance laid by the regulators on safety, dignity and welfare of women at the workplace'.Such disclosures would 'foster a culture of increased compliance, thus compelling organisations to proactively uphold the ethical standards', he said, adding that it would 'reinforce the principle of substantive equality'.
New Indian Express
11-05-2025
- Business
- New Indian Express
Key changes in new ITR forms individual taxpayers should know about
The tax department has recently notified the Income Tax Return (ITR) forms for the Assessment Year 2025–26, which corresponds to the financial year 2024–25. While the forms largely retain their previous structure, some notable changes have been introduced, particularly concerning the reporting of long-term capital gains (LTCG) and the threshold for disclosing assets and liabilities. Individual taxpayers should familiarise themselves with these updates to ensure accurate and timely filing. ITR-1 (Sahaj): For salaried individuals The ITR-1, also known as 'Sahaj', is for resident individuals (other than not ordinarily resident) with a total income not exceeding Rs 50 lakh from salary or pension, one house property (excluding cases with brought-forward losses), and other sources such as interest. The new ITR-1 now also applies to individuals who earned up to Rs 1.25 lakh in the previous financial year from long-term capital gains (LTCG) through the sale of listed equity shares or equity-oriented mutual funds. Neeraj Agarwala, Partner at Nangia Andersen LLP, points out a significant relief for taxpayers with LTCG under Section 112A below Rs 1.25 lakh. Previously, they might have been required to file the more complex ITR-2. "This inconvenience is reduced with the new Form ITR-1 for AY 2025–26 incorporating a small section for reporting income in the nature of long-term capital gains on which tax is not payable by virtue of the exemption limit provided in Section 112A." However, he clarifies that if LTCG under Section 112A exceeds Rs 1.25 lakh, or if there are other types of capital gains (long-term or short-term), or carried forward/brought forward capital losses, individuals will still need to file ITR-2. ITR-4 (Sugam): For presumptive income ITR-4, or 'Sugam', is applicable to resident individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with total income up to Rs 50 lakh. They must have income from business or profession computed under the presumptive taxation schemes. Similar to ITR-1, Sandeep Jhunjhunwala, Tax Partner at Nangia Andersen LLP, notes that the new ITR-4 also allows for reporting of LTCG under Section 112A up to Rs 1.25 lakh. ITR-2: Detailed reporting for wider income sources ITR Form 2 is for individuals (both residents and non-residents) and HUFs with total income excluding income from business or profession, but including income from salary, multiple house properties, capital gains, and other sources. Sanjoli Maheshwari, Executive Director at Nangia Andersen India, highlights several key changes in ITR-2 for AY 2025–26: Separate reporting of capital gains : Taxpayers must now report capital gains separately for periods before and after 23 July 2024, aligning with amendments in the Finance Act, 2024, including revised tax rates and indexation rules. Reporting of unlisted bonds and debentures : Gains from these are to be reported as short-term or long-term capital gains based on the holding period. Buy-back proceeds as dividend income : Buy-back proceeds received on or after 1 October 2024 are to be reported as dividend income under 'Income from Other Sources'. However, a separate disclosure as 'Nil' consideration with the cost of acquisition is also required under 'Capital Gains' for potential set-off and carry forward of capital loss. Revised threshold for assets and liabilities disclosure: Individuals with total income exceeding Rs 1 crore (up from Rs 50 lakh previously) are now required to furnish details of their assets and liabilities. ITR-3: For business and profession income ITR-3 is applicable to individuals and HUFs earning income from business or profession. Deepak Kumar Jain, Founder and CEO of TaxManager, outlines key changes in ITR-3 for AY 2025–26:
The Hindu
30-04-2025
- Business
- The Hindu
Govt notifies ITR forms; individuals with LTCG up to ₹1.25 lakh can file ITR 1, 4
The government has notified Income Tax Return (ITR) forms 1 and 4 for Assessment Year (AY) 2025-26, simplifying the filing process for individuals earning salary or presumptive income who have long-term capital gains (LTCG) up to ₹1.25 lakh from listed equities. Previously required to file the more complex ITR-2, these taxpayers can now use the simpler ITR-1 (Sahaj) and ITR-4 (Sugam) forms, respectively. This change addresses a specific inconvenience highlighted by tax experts. Sandeep Jhunjhunwala, Tax Partner at Nangia Andersen LLP, explained that previously, 'salaried individuals having income under the head capital gains were required to file form ITR-2 even where the capital gains were exempt by virtue of the threshold limit prescribed under Section 112A, resulting in elaborate disclosure requirements.' The new ITR-1 and ITR-4 forms for AY 2025-26 incorporate a section for reporting LTCG exempt under Section 112A up to the ₹1.25 lakh limit. According to the Income Tax law referenced in the notification context, LTCG up to ₹1.25 lakh per annum from the sale of listed shares and mutual funds are exempt, with gains exceeding this threshold subject to a 12.5 per cent tax. However, Mr. Jhunjhunwala clarified that salaried individuals must still use Form ITR-2 if their LTCG under Section 112A exceeds ₹1.25 lakh, if they have other types of LTCG or short-term capital gains, or if they have capital losses to carry forward or bring forward. A similar simplification for reporting exempt LTCG (up to ₹1.25 lakh under Section 112A) has been incorporated into the new ITR-4 form for taxpayers using the presumptive taxation scheme. Experts lauded the simplification. EY India Tax Partner Samir Kanabar stated that allowing those with minimal LTCG to use ITR-1 or ITR-4 'reduces the burden of navigating more complex forms.' He added, 'This move reflects a clear shift towards enhancing taxpayer services... [it] is expected to encourage greater voluntary compliance, reduce filing-related stress, and make the system more user-friendly for small taxpayers.' AKM Global Partner-Tax Sandeep Sehgal echoed this, noting the change 'streamlines the tax filing process, making it more accessible and less burdensome... thereby encouraging timely and accurate compliance'. ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) cater to small and medium taxpayers with total annual income up to ₹50 lakh. Sahaj is for resident individuals with income from salary, one house property, other sources (like interest), and agricultural income up to ₹5,000. Sugam is for individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with income from business and profession under the presumptive scheme. ITR-2 is filed by individuals and HUFs without business or profession income. Beyond the LTCG change, the government has introduced other modifications. The forms now feature a drop-down menu in the utility for selecting deductions claimed under sections like 80C and 80GG. Additionally, assessees must furnish section-wise details regarding Tax Deducted at Source (TDS) deductions within the ITR. Consistent with last year, ITR-1 continues to seek details on expenditures exceeding ₹2 lakh on foreign travel and over ₹1 lakh on electricity consumption during the previous year. Regarding the timeline, the ITR forms are typically notified earlier, around February or March. The delay this year was attributed to Revenue Department officials being preoccupied with the new Income Tax Bill introduced in Parliament in February. Taxpayers can begin filing their returns for income earned in the 2024-25 financial year once the I-T department makes the filing utility available. The deadline for individuals not requiring an audit remains July 31.
