FAQ Released By RBI on PAYTM

PAYTM Payments Bank has been in news for quite some time now due to various reasons such as RBI Banning onboarding of new customers, RBI Banning PAYTM to operate its Payment Banking Business, ED summons etc. Recently RBI Governor has again shown no Interest in reconsidering their decision to stop PAYTM for operating its Payment Bank licence. Shares of Its Parent Company One 97 Communication is at all time low and various analyst are downgrading and cutting targets of PAYTM. Investors of PAYTM is suffering from anxiety as shares of the Company is down by more than 80%.

There is various rumours in the market regarding withdrawal of deposits, closing of the whole company, Money Laundering etc. PAYTM has also issued various clarification in its exchange filings to clear all these rumours but still more clarity was required by the Account holders of Paytm Payment Bank. 

The consumers of PAYTM has been facing various questions related to our deposits with PAYTM Bank and what will be effect of PAYTM accounts after 29th February 2024. To answer all our queries, yesterday on 16 Feb 2024 RBI has released a list of FAQs on Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024. 

Below is the link through which readers can directly read full text of FAQs from RBI website. 

https://www.rbi.org.in/Scripts/FAQView.aspx?Id=164

We have also attached all FAQs below:

Bank Accounts with Paytm Payments Bank

1. I have a savings or current account with Paytm Payments Bank. Can I continue to withdraw money from this account after March 15, 2024? Can I continue to use my debit card issued by Paytm Payments Bank?

Yes. You can continue to use, withdraw or transfer your funds from your account upto the available balance in your account.

Similarly, you can continue to use your debit card to withdraw or transfer funds upto the available balance in your account.

2. I have a savings bank or current account with Paytm Payments Bank. Can I deposit or transfer money into this account after March 15, 2024?

No. After March 15, 2024, you will not be able to deposit money into your account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited.

3. I am expecting a refund in my account with Paytm Payments Bank after March 15, 2024. Can this refund be credited into my account?

Yes. Refunds, cashbacks, sweep-in from partner banks or interest are permitted credits into your account even after March 15, 2024.

4. What will happen to the Deposits maintained with partner banks through ‘sweep in/out’ arrangements, after March 15, 2024?

The existing Deposits of Paytm Payments Bank customers maintained with partner banks can be brought back (sweep-in) to the accounts with Paytm Payments Bank, subject to the ceiling on balance prescribed for a Payments Bank (i.e. ₹2 lakh per individual customer at the end of day). Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024.

5. My salary is credited into my account with Paytm Payments Bank. Can I continue to receive my salary into this account?

No. After March 15, 2024, you will not be able to receive any such credits into your account with Paytm Payments Bank. It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience.

6. I receive a subsidy or certain direct benefit transfers linked to my Aadhar from the Government in my account with Paytm Payments Bank. Can I continue to receive it into this account?

No. After March 15, 2024, you will not be able to receive any such credit into your account with Paytm Payments Bank. Please arrange to change your linked account to another bank before March 15, 2024 to avoid any inconvenience or disruption.

7. My monthly electricity bill is paid automatically from my bank account with Paytm Bank Limited? Can this continue?

Withdrawal/debit mandates (such as National Automated Clearing House (NACH) mandates) will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.

8. My monthly OTT subscription is paid automatically through UPI from my bank account with Paytm Payments Bank? Can this continue?

Withdrawal/debit mandates through automatic UPI mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience or disruption, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.

9. The instalment (EMI) for my loan is automatically paid through my account with Paytm Payments Bank. Can this continue?

Auto debit mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience, it is suggested that you make alternative arrangements for setting up EMI payments through another bank before March 15, 2024.

10. The instalment (EMI) for my loan is automatically paid through my account with a bank other than Paytm Payments Bank. Can this continue?

Yes, EMIs registered with any bank other than Paytm Payments Bank can continue.

Paytm Payments Bank Wallet

11. I have a wallet with Paytm Payments Bank. Can I continue to use money from this wallet after March 15, 2024?

Yes. You can continue to use, withdraw or transfer to another wallet or bank account upto the balance available in the wallet. Minimum KYC wallets1 can, however, be used only for merchant payments.

12. I have a wallet with Paytm Payments Bank. Can I top-up or transfer money into this wallet after March 15, 2024? Can I receive money from any other person into this wallet after March 15, 2024?

No. After March 15, 2024 you will not be able to top-up or transfer money into the wallet or receive any credits, other than cashbacks, or refunds into this wallet.

13. I have a cashback due in my wallet with Paytm Payments Bank. Can I receive this cashback after March 15, 2024?

Yes. Refunds and cashbacks are allowed to be credited.

14. I have a wallet with Paytm Payments Bank. Can I close this wallet and have the balance transferred to my bank account with another bank?

Yes. You may approach Paytm Payments Bank or use its banking app to close your wallet and transfer the balance to an account maintained with another bank in the case of full KYC wallets. In the case of minimum KYC Wallets2, you may use the available balance or request for a refund.

FASTag issued by Paytm Payments Bank

(for more details on FASTag, you may visit website of IHMCL https://ihmcl.co.in)

15. I have a FASTag issued by Paytm Payments Bank. Can I continue to use it to pay toll after March 15, 2024?

Yes. You can continue to use your FASTag to pay toll upto the available balance. However, no further funding or top ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

16. I have a FASTag issued by Paytm Payments Bank. Can I recharge the balance after March 15, 2024?

No. After March 15, 2024 you will not be able to top-up or recharge your FASTag issued by Paytm Payments Bank. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

17. Can I transfer the balance from my old FASTag issued by Paytm Payments Bank to a new FASTag obtained from another Bank?

Credit balance transfer feature is not available in the FASTag product. Therefore, you will have to close your old FASTag issued by Paytm Payments Bank and request the bank for a refund.

National Common Mobility Card (NCMC) issued by Paytm Payments Bank

18. I have an NCMC card issued by Paytm Payments Bank. Can I continue to use it after March 15, 2024?

Yes. You can continue to use your NCMC card upto the available balance. However, you will not be able to load or top up funds into the card after March 15, 2024. In order to avoid inconvenience, it is suggested that you obtain an NCMC card issued by another bank or non-bank pre-paid instrument (PPI) issuer, before March 15, 2024.

19. I have an NCMC card issued by Paytm Payments Bank. Can I add to its balance through top-up, recharge, etc. after March 15, 2024?

No. After March 15, 2024 you will not be able to top-up or recharge your NCMC card issued by Paytm Payments Bank. In order to avoid inconvenience, it is suggested that you obtain an NCMC card issued by another bank or non-bank pre-paid instrument (PPI) issuer, before March 15, 2024.

20. Can I transfer the balance from my old NCMC card issued by Paytm Payments Bank to a new card obtained from another Bank?

Balance transfer feature is not available in the NCMC card. Therefore, you may use the card upto the available balance. In case you have some more balance which you have not been able to use, you may request Paytm Payments Bank for a refund.

Merchants using Paytm Payments Bank to receive payments

21. I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox or Paytm POS terminal, linked to another bank account (not with Paytm Payments Bank). Can I continue to use this set-up even after March 15, 2024?

Yes. If your receipt and transfer of funds is linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.

22. I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox, Paytm POS terminal linked to my bank account or wallet with Paytm Payments Bank. Can I continue to use this set-up even after March 15, 2024?

No. After March 15, 2024 you will not be able to receive any credit into your bank account or wallet with Paytm Payments Bank other than refunds, cashbacks, sweep-in from partner banks or interest. In order to avoid any inconvenience or disruption, it is suggested that you may obtain a fresh QR code linked to an account with another bank or wallet to receive payments. You may also change your bank account details (in which you receive payments) through your service provider.

Bharat Bill Payment System (BBPS)

23. Can I make payments through the Bharat Bill Payment System (BBPS) using my account with Paytm Payments Bank?

Yes. You can continue to make payments from your Paytm Payments Bank account through Bharat Bill Payment System upto the balance available in your account. Since you will not be able to credit any further funds into your accounts or wallets with Paytm Payments Bank after March 15, 2024, it is advised that you may make alternative arrangements with another bank account for BBPS before March 15, 2024.

Aadhar enabled Payment System (AePS)

24. Can I make withdrawals from my Paytm Payments Bank account with biometric authentication under Aadhar enabled Payment System?

Yes. You can continue to withdraw using the AePS authentication, upto the balance available in your account.

Money Transfer through UPI/ IMPS

25. Can I transfer my money into my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?

No. You cannot transfer the money into your Paytm Payments Bank account after March 15, 2024.

26. Can I withdraw my money from my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?

Yes. You can withdraw your money from Paytm Payments Bank account through UPI/ IMPS upto the balance available in your account.

Paytm Payments Bank Business Correspondent

27. I have an account with Paytm Payments Bank. Can the Paytm Payments Bank Business Correspondent (also referred to as Paytm Payments Bank Agent) help me in withdrawing funds from my account after March 15, 2024.

Yes. The Paytm Payments Bank Business Correspondent (Bank Agent) can help you to withdraw money from your bank account upto the balance available in your account.

Accounts frozen, lien marked etc.

28. What will happen to my Paytm Payments Bank account/wallet if there is a lien or freeze marked on the directions of Law Enforcement or judicial authorities?

Any lien or freeze (full or partial) marked as per the instructions of any law enforcement or judicial authorities on the account/wallet of a customer with Paytm Payments Bank will continue to be governed by the orders passed by such authorities.

29. What will happen to my Paytm Payments Bank account/ wallet if there is a lien or freeze marked on account of internal policies of Paytm Payments Bank?

The bank has been directed to allow withdrawal or transfer to another bank account of the customer, upto the available balance in the account / wallets.

Onboarding of new customers

30. What is the status of the Business restriction placed on Paytm Payments Bank vide RBI Press Release dated March 11, 2022?

The business restriction dated March 11, 2022, prohibiting Paytm Payments Bank from onboarding any new customers for any of its services continues to be in force. Hence, Paytm Payments Bank cannot onboard any new customers after March 11, 2022.

(updated as at February 16, 2024)

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1 As per extant directions, small pre-paid Instruments (PPI) are issued by banks and non-banks after obtaining minimum details of the PPI holder. They can be used only for purchase of goods and services. Funds transfer or cash withdrawal from such PPIs are not permitted.

2 As per extant directions, small pre-paid Instruments (PPI) are issued by banks and non-banks after obtaining minimum details of the PPI holder. They can be used only for purchase of goods and services. Funds transfer or cash withdrawal from such PPIs are not permitted.

DETAILS OF ECONOMIC PACKAGE 2020 PART-1

Finance Minister Nirmala Sitharama on 13.05.2020 shared the first part of the most awaited Economic Package for boosting the corona troubled economy of India which had provisions for MSME sector of the country

This has come after Honorable PM Narender Modi, a day earlier has announced that a economic package of approximately 20,00,000.00 crores will be announced by Finance Minister in coming 3-4 days.

The Finance Minister along with MoS Anurag Thakur said that the "ATMANIRBHAR BHARAT" will be based on 5 pillar- Economy, Infrastructure, System, Vibrant Demography and Demand. The focus will be on Land, Labour, Liquidy and Law.

The  first part of the package is mainly focused on MSME sector and has been divided into Six major steps:

1. Rs. 3 Lakh collateral free loans to MSMEs. In which emergency credit line to MSMEs from Banks and NBFC's upto 20% of entire outstanding credit. This steps will help 45 lakh units to resume their Business activity.

2. Rs. 20000 crores subordinate Debt for Stressed MSMEs. This will help 2 lakhs MSME's

3. Rs. 50000 crores equity infusion for MSME's through Fund of Funds. A corpus of Rs. 10000 crore for Viable MSME through Funds of Fund.

4. Defintion of MSME's has been changed to increase the base of MSME's in the country.

New Definition of MSME's

Classification		Micro		Small		Medium
Manufacturing & Services		Investment Less than 1 crore and Turnover Less than 5 crore		Investment Less than 10 crore and Turnover Less than 50 crore		Investment Less than 20 crore and Turnover Less than 100 crore

5. Global Government tender upto Rs. 200 crores to be discontinued.

6. E-Market Linkage for MSMEs to act as replacement for Trade Fair and Exhibition. Government will clear all the dues within next 45 days.


Announcement for Employees:

1. Government will contribute the EPF for next 3 months for Employer as well Employee share. This will provide liquidy relief of Rs. 2500 cr to 3.67 lakhs establishments and for 72.22 Lakh employees.

2. EPF rate decreased to 10% from past 12% for next three years for both Employer and Employee share. This will infuse 6750 crores to these institutions.


Announcment for NBFC/HFC/MFI

1. Government will infuse 30000 crore under Special Liquidity scheme into NBFC/HFC/MFI through Investment in Investment Grade Debt Paper.

2.  Rs. 45000 crore partial credit Guarantee Scheme for NBFC's. First 20% loss will be borne by the Guarantor i.e. Government of India.


DISCOMs

Rs. 90000 crores liquidity injection for DISCOMs on their due receivables to increase their cash flow.


INCOME TAX RELIEFS

We have complied all the detailed Income Tax reliefs provided in First part in our other post. You can read it here INCOME TAX RELIEF.
Brief reliefs are given below:

1. Due date for ITR extended to 30th November 2020 from 31st July 2020 and 31st October 2020.

2. Due date of Tax Audit increased to 31st October, 2020 from 30th September 2020.

3. Non Salaried TDS and TCS will be reduced by 25% on rates applicable for payments made from 14-05-2020 to 31.03.2021.

4 Vivad pe Vishwas Scheme to be extended till 31st December 2020.

5. Assessments that are getting barred on 30th September 2020 extended to 31st December 2020 and that getting barred on 31st March 2021 to 30th September 2021.


OTHER RELIEFS

1. Extension of works of Government contracts by Six months for pending contracts.
2. Partial release of Bank Grantees to the extent of work completed by the Contractors.
3.Extension of due dates of Registration and Completion of Real Estate Projects under RERA by 3 months.

10 Changes in Income Tax Return Forms for the Assessment Year 2015-2016

Recently Income Tax Department has issued new ITR forms for Assessment Year 2015-2016. These new forms are also available at efiling portal for Efiling Income Tax Returns. As the last dates for filing these forms are coming close, we have come with our Another list- 10 Changes in Income Tax Return for the Assessment Year 2015-2016.

Most of us rely on Income Tax Return preparation Softwares to Efile Income Tax Returns. We feed the details and software provide us with the Computation, missing data and errors in our XML file and we finalize our Income Tax Return. But have we ever wondered, if the rules used by the software companies are not correct. What will happen then? The answer is coming to us regularly these days in the form of Notice of Defective returns under section 139(9) or wrong processing of the returns under section 143(1). To save oneself and clients we should always look the manual copy of return before efiling it and also try to read the XML file (if possible). Here we are giving 10 things that has changed in ITR this assessment year and we should check it before filing the Income Tax Returns.

How to Claim Income Tax Refund of Earlier Years

In India, most of us still file Income Tax Returns just to claim refunds of Taxes which are deducted by the payer of our Income i.e. Banks, Governments, Insurance Companies etc or taxes paid extra by us either at the time of Self Assessment or Advance. These taxes are refunded after filing of Income Tax returns.Now most of us even being well educated forget to file the Income Tax return or we don't have knowledge of the process to get the Income Tax refund. Many of the cases are still pending and there are a lot of persons who have refund of Lakhs of rupees but are not being able to get the refund due to non filing of Income Tax returns.

Online Appointment of Checkers for May 2015 examinations

Institute of Chartered Accountants has started another Online initiative, now Checker for CA examinations will be appointed online and all Bill related work will be done online. Checker can visit the website http://checkers.icaiexam.icai.org/ and can accept the Appointment letters and Examiners can visit and know their checkers.

No more than 4 Banks for Concurrent Audit

The council of the Institute of Chartered Accountants of India, has decided to limit the number of Banks a Chartered Accountant can do Concurrent Audit of to 4. The council in its 342nd Council Meeting decided that 

"The Council decided to fix limit on concurrent audit of banks at 4 audits per member per year. Cooperative banks and RRBs were exempted from the limit. The above limit will come into effect from 1.1.2016."

Tax Amendments Proposed in Union Budget 2015-2016

Honorable Finance Minster Shri Arun Jately Ji, has given his Union Budgetary speech today for the budget of the year 2015-2016. You can get full Summarised updates from following link:
http://www.ngoandtaxconsultant.in/2015/02/unionbudget2015-2016.html


We are giving a comprehensive list of Amendments in Direct and Indirect Taxes proposed for the year 2015-2016.

DIRECT TAX

1. No Changes in Tax Slabs for Individual Assesses. Maximum no taxable income will be Rs. 444,200.00

2. Wealth Tax to be abolished.

3. To make up for loss due to removal of Wealth Tax. A special surcharge of 2 % on Super Rich is to be levied (Income above Rs. 1 crore).

4. Assets to be specified in Wealth Tax Return, is now to be specified in Income Tax return.

5. Corporate Tax to be reduced to 25% from earlier 30%. All the exemptions to be rationalized and removed in phase manner.

6. Exemption on Transport Allowances for Salaried class to be increased from Rs. 800 to Rs. 1600.

7. Deduction for health premium under section 80D to be increased from Rs. 15000 to Rs. 25000 and for senior citizen to Rs. 30000. For Super Senior Citizen the expenses upto Rs. 30000 will be allowed as deduction on medical expenses

8. Pension fund and New Pension fund deduction to be increased from Rs. 1.00 lakhs to Rs. 1.50 lakhs.

9. In case of serious diseases, the deduction of Rs. 60000 is raised to Rs. 80000

10. Income tax on Royalty for Technical Services reduced to 10%

11. 100% deduction on contirbution to Swach Bharat Abhiyaan and Clean Ganga Mission

12. Quoting of PAN number made necessary for purchase above Rs. 1.00 lakhs

13. Cash disallowance for purchase above Rs. 20000 of immovable property.

14. Rs. 50000 deduction under section 80CCD

15.Yoga to be charitable activity under Income Tax Act.

16. No DTC as Income Tax Act, has been modified to include most of the provision of DTC

17. GAAR will be defered by 2 years.

18. Manager of Off Shore Fund can open offices in India and laws will be ammended to provide them exemption as if they are not working from India.

19. Deduction under section 80U to be increased.

20. New Law on Black money to be intoduced. To have prosecution and penalty provision for Tax evasion.

INDIRECT TAX

1. Service Tax now increased to 14% instead of 12.36%

2. GST to be applied next year.

3. Service Tax exemption to Cold Storage for certain fruits.

4. Custom Duty to be reduced on 22 goods, to encourage Make in India mission.

5. Excise duty will be reduced to 6% on leather shoes

6. Excise duty rates to be reduced

7. Excise registration will now be online and will be provided in 2days. Excise return and docs to be filled digitally.

ICAI Presidents Message March 2015

Source- www.icai.in President's Message - March 2015

Dear Friends, Nothing can bring you peace but yourself. Nothing can bring you peace but the triumph of principles, writes Ralph W. Emerson. I too believe in the power of self andprinciples, which we respect and stand for in our life. For me, this is all the more important as I have been entrusted with the responsibility of a leader. I consider it an absolute honour to serve my profession while joining the strong lineage of its leadership. Albert Einstein quite beautifully links human endeavours and excellence: We have to do the best we can. This is our sacred human responsibility. And I promise to do justice to my responsibilities in that sense too. It is indeed a privilege to communicate as 63rd President of The Institute of Chartered Accountants of India and welcome and express my gratitude to all its stakeholders. I wish to record my gratitude to all my Council colleagues for demonstrating trust in my leadership-for my election as Vice-President in 2014 and now as President in 2015. I wish to thank my fraternity for extending their help and support on all coveted instances. I also wish to thank my predecessor-in-office CA. K. Raghu, who has guided and supported me during my tenure as Vice-President of the Institute. The Institute has certainly benefitted from his penchant for IT aspects of the profession. Associating with him has added to my professional understanding. I am fortunate to receive his continued support in our quest for holistic professional growth. I congratulate my Central Council colleague CA. M. Devaraja Reddy on his election as the new Vice-President of the Institute. I am sure, his rich professional experience including his recent stint as Chairman of the Board of Studies of the Institute, especially in conceptualising a new futuristic CA Curriculum, will help us. His contribution will certainly benefit the profession at large and also help me in executing my agenda of growth. Increased Share in Government’s Agenda It is satisfying that our nation has taken a serious note of our contribution and duly appreciated the same. Even the representatives from the Government have recognised that we are in sync with our times. I accept with pride that we constantly endeavour to become contemporary with training and technology. In fact, we work hard to constantly update both our curriculum and publications. We have been helping the Government to shift to that accrual system of accounting. Supporting the green initiatives, we have already started our journey towards a paperless system. With our financial expertise, we are helping the Government in performing its job better and thereby partnering in the nation-building process. This year, we plan to increase our engagement with standing committees of the Parliament by submitting more representations. Lok Sabha Speaker Appreciates ICAI Recently I had an opportunity to meet the Hon’ble Lok Sabha Speaker Smt. Sumitra Mahajan in Indore, the unanimously elected Speaker, who serves the Lok Sabha for the eighth term. Having interests in women’s welfare and social reforms, she was really happy to know that ICAI too has these welfare issues on its agenda. On behalf of the profession, I have assured her of our continued support. Expectations from Union Budget 2015-16 By the time my message reaches you, the Union Budget and the Rail Budget for 2015-16 would have been presented. Having high expectations from this Government’s first full Budget in the backdrop of our recovering economy, growing investor confidence and bringing inflation in control, I hope that both the Budgets will be rich on policy measures especially towards bettering the business environment and fiscal consolidation. A reform-oriented budget can really deliver the promised good days to our country. Implementation of Goods and Services Tax (GST) is recognised as the single biggest tax reform in the country. I feel proud that for the first time a member of our profession CA. Suresh Prabhu will present the highlyawaited Rail Budget. He has announced to leverage the IT measures in the railways. I am sure both these budgets will herald a new era in the Indian economy. International Conference Brings in Global Recognition It gives me immense pleasure to inform that the Institute recently organised a very successful three-day International Conference on Accountancy Profession: Building Global Competitiveness; Accelerating Growth in Bengaluru. This was inaugurated by the Union Railway Minister CA. Suresh Prabhu as Chief Guest along with the Guest of Honour Rajya Sabha MP CA. K. Rahman Khan. Eminent speakers on the occasion included Member of Parliament Dr. Kirit Somaiya, NACAS Chairman CA. Amarjit Chopra, SAFA President Mr. Arjuna Herath from Sri Lanka, ICA Australia CEO Mr. Lee White and CPA Ireland CEO Mr. Eamonn Siggins, among others. Around 2,300 national and international delegates participated in this Conference. On the sidelines, SAFA Board and Committees meetings were held along with the launch of SAFA House-SAFA's Knowledge and Training Centre. (A detailed report has been published in this Journal.) International accounting bodies have acclaimed our global presence and expressed their gratitude for our contribution at various international professional platforms. 65th Annual Function Held in New Delhi Recently, the 65th Annual Function of the Institute was organised in New Delhi which was inaugurated by the Chief Guest Union Minister of State (Independent Charge) for Power, Coal and New & Renewable Energy CA. Piyush Goyal. The Union Minister praised the Council for giving a dynamic shape to the profession, which has earned high regards for integrity and transparency. (A detailed report has been published in this Journal.) ICAI to Support Sanitation Audit In taking the mission Swachh Bharat Abhiyaan forward, public-sector undertakings governed by the Ministries of Power, Coal and New & Renewable Energy have decided to spend their corporate social responsibility (CSR) funds in constructing toilet complexes in schools which either have insufficient or no such facility at all. Union Minister CA. Piyush Goyal had requested the profession to take up the verification and audit of the amount spent as part of our own CSR on pro bono basis. Acting swiftly on his request, we have published an appeal/ notification for all practicing members asking them to communicate their interest for this audit by 28th February 2015. I personally urge upon my fraternity to participate wholeheartedly in this unique and responsible Abhiyaan. Let us commit ourselves to fulfilling our social responsibility. All Ind AS Converged with IFRS Notified-ICAI Plays a Key Role I am glad that the Ministry of Corporate Affairs of the Government of India has notified, dated 16th February 2015, all the Indian Accounting Standards (Ind AS) converged with IFRS by placing them on its website after formulation thereof by the ICAI and their review by the National Advisory Committee on Accounting Standards (NACAS). This marks an important milestone in the evolution of accounting standards in India by placing them almost at par with the globallyaccepted IFRS. Presently, there are only four compulsory carveouts from IFRS and going forward we hope that even these will be addressed, as we are in touch with the International Accounting Standards Board (IASB) in this regard. I am pleased to mention that in the past also, the ICAI along with a few other countries has been able to convince the IASB to change the IFRS. For instance, Ind AS 41, Agriculture, was not notified in 2011 since it was felt that the requirement to measure biological assets at fair value would not be appropriate particularly for those assets having life of more than one year and are maintained for its produce, such as, tea bushes. The ICAI, along with some other countries (e.g. Malaysia) took up this issue with the IASB and suggested that such biological assets termed as ‘bearer plants’ are more of the nature of plant and machinery and, therefore, should be accounted for in the same way. I am pleased to inform that the IASB, in 2014, amended IAS 41, Agriculture, to scope out the bearer plants from the standard and scope the same in IAS 16, Property, Plant and Equipment. Following these amendments in IAS 41 and IAS 16, the Ind ASs now notified include Ind AS 41, Agriculture. Another example is that, in 2011, IFRIC 15, Agreements for the Construction of Real Estate, was not considered for the purpose of notification and such agreements were scoped in Ind AS 11, Construction Contracts, so that the real estate industry may follow percentage of completion method. This issue was also taken up with the IASB along with various other countries. In this regard, the IASB also held an outreach meeting with the representatives of real-estate industry in India in 2012. Pursuant to such discussions, the IASB in its recently-issued IFRS 15, Revenue from Contracts with Customers, has addressed this issue. Accordingly, the Ind ASs now notified contain Ind AS 115 corresponding to IFRS 15 which addresses the concerns that were raised by the real estate industry with regard to IFRIC 15. I am confident that ICAI will continue to play an important role not only in formulating high-quality national Accounting Standards but would also play an equally significant role in the formulation of IFRS by sending inputs to IASB from time to time. I am happy to state that the Institute has completed the process of formulating the Indian Accounting Standards converged with IFRS in a time-bond manner. On 10th July 2014, the Union Minister of Finance in his maiden budget speech had mentioned that the Indian corporates will move towards the International Accounting Standards, on a voluntary basis, with effect from 1st April 2015 and on a mandatory basis from the year 2016 in a phased manner. I am happy to report that the Accounting Standard Board (ASB) of The Institute of Chartered Accountants of India undertook the herculean task of updating all the Ind ASs as notified in 2011 and also formulating the converged Indian Accounting Standards up to IFRS 15. The due process was rigorously followed and after extensive discussion and deliberations in the ASB and in the meetings of the Central Council, these Standards were finalised. Thereafter, they were given to the NACAS which generally accepted the recommendations of the Council of the Institute. With the hosting of all these standards on the website of the Ministry of Corporate Affairs, the entire process has been completed in record time of less than six months. This technical contribution of the Institute is a testimony of what the profession can collectively contribute towards the growth and progress of our country. Review of CA Education and Training Strengthening the CA education and training is numero uno on the Council agenda. I am happy to acknowledge that the Council has finalised the draft for New Scheme of Education and Training for Chartered Accountants as three-tier Scheme, i.e. Foundation, Intermediate and Final. This was launched formally for public comments at the 65th Annual Function through the hands of Union Minister CA. Piyush Goyal. In order to have structured inputs and wider participation, the draft Scheme has been hosted for public comments. One among Us Honoured with Padma Shri One of our highly respected members, CA. T. V. Mohandas Pai, who has an illustrious professional career, has been awarded Padma Shri this year. He is also one of the most generous members of the Institute, having contributed a sum of 50 lakh to the CA Benevolent Fund. I appreciate this fact and congratulate him from the core of my heart for making the profession proud. Scheme for Retrospective Restoration of Membership Welcomed In order to mitigate the hardships of our members whose names stand removed due to non-payment of membership fee, the Council has decided to give them an opportunity by way of the General Amnesty Scheme. This is a one-time dispensation for retrospective restoration of their membership. I sincerely request them not to lose this excellent opportunity to reconnect. Three New Committees Formed I am happy to inform you that we have formed three new committees in the Institute, i.e. Corporate Social Responsibility Committee, Management Committee and Career Counselling Committee, to advance the responsibility agenda from the perspectives of our society, members/students and employees of the Institute. ICAI Corporate Forum Awards in Mumbai In order to provide our members a platform to interact with Indian corporates, we recently organised the ICAI Corporate Forum in Mumbai comprising ICAI Awards and Corporate Conclave. At ICAI Awards, the Institute honoured the members for their contribution across Indian business sectors, corporate houses and MNCs. The Jury for the awards was headed by the Hero Group Executive Vice-Chairman & MD Shri Kamal Kant Munjal. Chief Guest for this Award function was Zee Entertainment Enterprises Ltd. Chairman Dr. Subhash Chandra. Corporate Conclave-In Pursuit of Excellence provided its 250-odd participants an opportunity to listen to eminent speakers and experts. ICAI CSR Awards in Mumbai I am happy to inform that ICAI CSR Awards 2014 were recently held in Mumbai to recognise corporate enterprises, not-for-profit organisations, individuals, etc., for their outstanding CSR contribution in the country. Awards were given in the fields of health, education, women empowerment, rural development, renewable energy and alleviation of poverty, to name a few. The Jury headed by CA. Keki Minoo Mistry, Vice-Chairman & CEO, HDFC Ltd., consisted of 11 responsible citizens of the country, including Shri Prakash Jha (film director) and our past-President CA. Uttam Prakash Agarwal. Most notably, the Jury decided suo moto to give the Best CSR Citizen Award to Mr. Azim Premji. ICAI Awards for Excellence in Financial Reporting ICAI Awards for Excellence in Financial Reporting were given away recently in Chennai. Rajya Sabha MP CA. K. Rahman Khan was the Chief Guest on the occasion. The award function was preceded by a technical workshop on Towards Excellence in Financial Reporting. The awardees of the competition were decided by a jury chaired by CA. K. Rahman Khan. The members of the Jury included IICA DG & CEO Dr. Bhaskar Chatterjee, NACAS Chairman CA. Amarjit Chopra, former CMD of Indian Overseas Bank Shri M. Narendra and former Deputy C&AG Shri A. K. Awasthi, among others. Articled Assistants’ Stipend Doubled I take pride that studying for CA qualification is very much affordable for all strata of our society. Students irrespective of their financial background become members of the Institute through their hard work and dedication. Students being the future of our profession have always been high on the Institute’s agenda. In a move to support them economically during their articleship, the Council has decided with immediate effect (i.e. 23rd January 2015) to double their stipend for all three years of articleship payable to articled assistants. Action Plan-Spearheading Professional Excellence

Past cannot be changed. It asks us to halt and review and then it inspires us to prepare and move ahead. Future though cannot be approached but must be welcomed. It gives us an opportunity to complete if we have left something unfinished. But we can always work on the present and mould that to our perspective. Nietzsche says: The future influences the present just as much as the past. So, an informed process based on the systematic study of past and future can help us change the present. Only then we can produce an effective Action Plan. Zig Ziggler adds another dimension-it is true that our children are our only hope for the future, but we are their only hope for their present as well as their future. Therefore, basically, we will have to work harder if we wish to secure a happy future for the generation next professionals. It is time to think beyond the basics and traditional functions, and explore new professional horizons. To spearhead growth and champion excellence in profession, this year we will focus on strengthening CA education and training. We will also consolidate our profession abroad by representing more on global platforms. We will empower our research and technology activities. I also believe that any institutional development will require its employees to be happy and satisfied. Therefore, we will focus on streamlining the HR practices of the Institute. Infrastructure will be on the agenda too, since academics cannot grow without that. I feel that ethics and integrity should continue to govern our profession. A robust disciplinary mechanism has to be in place to aid the Institute. Whatever we do in the country affects the country. Therefore, our commitment to the nation has to be very strong.

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Times are changing swiftly, so are the expectations from the profession. James Russell says: Each day the world is born anew for those who take it rightly. We have to accept the challenges. I am quite aware of the quantum of the task ahead. With the objective to achieve excellence and accomplish the vision, we will have to put our best foot forward. Helen Keller says: Alone we can do so little; together we can do so much. I too know that we will accomplish more with cooperation from all stakeholders including the employees of the Institute, who have constantly contributed to the profession in numerous capacities. While there are too many milestones to achieve, time is limited. Therefore a suitable Action Plan is an absolute requirement. Friends! It must be March now. Winter has lost its harshness and grey days are already over. It is time for optimism to return in life in the form of bright sunny days. Let us work hard to create a bright future for the coming generations of accountancy profession.

Best wishes,

CA. Manoj Fadnis President, ICAI New Delhi, February 21, 2015