MM TAX CLUB

The Reserve Bank of India (RBI), vide order dated January 12, 2024, has cancelled the license of “Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on January 12, 2024. Registrar of Cooperative Societies, Gujarat has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

The Reserve Bank cancelled the license of the bank as:

1. The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.

2. The bank has failed to comply with the requirements of Section 22(3)(a), 22 (3)(b), 22 (3)(c), 22 (3)(d) and 22 (3)(e) read with Section 56 of the Banking Regulation Act, 1949;

3. The continuance of the bank is prejudicial to the interests of its depositors;

4. The bank with its present financial position would be unable to pay its present depositors in full; and

5. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.

2. Consequent to the cancellation of its license “Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi” is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect.

3. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees Five Lakh only) from the Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of the DICGC Act, 1961. As per the data submitted by the bank 99.36% of the depositors are entitled to receive full amount of their deposits from DICGC. As on September 30, 2023, DICGC has sanctioned ₹24.58 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 based on the willingness received from the concerned depositors of the bank.

India Post Payments Bank & Hindustan Zinc sign an MoU to foster economic growth and bring financial inclusion in the lives of rural community beneficiaries under CSR program.

The collaboration will bridge the gap and ensure financial assistance for 3.5 Lakhs + beneficiaries covering SHG women, farmers, & youth thus ensuring easy access to opening bank accounts, access to pension products, long-term savings, and investment schemes, etc.

In a ground breaking alliance set to transform the financial landscape of rural Rajasthan, India Post Payments Bank (IPPB) & Hindustan Zinc Limited (HZL – a subsidiary of Vedanta Group) join forces to pioneer inclusive financial solutions. The collaboration will ensure in creating a lasting impact on the lives of community beneficiaries around Hindustan Zinc’s operational areas. The MoU between IPPB & HZL was signed by Shri Gursharan Rai Bansal – Chief Sales & Marketing Officer, IPPB and Shri Arun Misra – CEO, Hindustan Zinc.

“Joining hands with Hindustan Zinc Ltd. To provide financial inclusion services to its beneficiaries will help IPPB foray into the domain of serving population benefitted by the Corporate Social Responsibility (CSR) activities by prominent corporates in India. This alliance with HZL marks a very important milestone for us to expand our ambit of doorstep banking service delivery to the unserved and underserved people in this country,” said Shri Gursharan Rai Bansal, Chief Sales & Marketing Officer, IPPB.  

On the occasion, Shri Arun Misra, CEO, HiZL shared, “This transformative alliance with India Post Payments Bank reflects our dedication to empowering communities. By merging our strengths with IPPB, we aim to redefine financial inclusion and empower our community beneficiaries with access to advance financial services. This collaboration exemplifies our commitment to making a meaningful impact on lives, fostering economic resilience, and driving positive change in the communities we serve.”

The key services provided by the IPPB will ensure Financial Inclusion and ensure aid for opening bank accounts, access to pension products, long-term savings, and investment schemes. It will further aid in providing support and Empowering 3.5 Lakhs+ beneficiaries covering SHG women, farmers, and youth to become Individual Business Correspondents for various IPPB services.

It will additionally promote government social welfare Schemes through the IPPB banking channels and assisting beneficiaries in availing income-generating loans through IPPB’s lending partners.

With this collaboration IPPB, a public limited company under the Department of Posts, reinforce its commitment to reach out to the last mile with best-in-class digital banking services. The partnership also underscores Hindustan Zinc’s unwavering commitment to its social responsibility, contributing to the sustainable development of the regions it operates in, and solidifies its reputation as a leader in driving positive change.

The MoU signing event was conducted in the presence of dignitaries from both India Post Payments Bank & Hindustan Zinc including,  Shri Vishwanath Divya (AGM Marketing) & Ms Anupam Nidhi – Head CSR (HZL).

About India Post Payments Bank

India Post Payments Bank (IPPB) has been established under the Department of Posts, Ministry of Communication with 100% equity owned by Government of India. The IPPB was launched on September 1, 2018. The bank has been set up with the vision to build the most accessible, affordable and trusted bank for the common man in India. The fundamental mandate of India Post Payments Bank is to remove barriers for the unbanked & underbanked and reach the last mile leveraging the Postal network comprising ~1,65,000 Post Offices (~140,000 in rural areas) and ~3,00,000 Postal employees.

The IPPB’s reach and its operating model is built on the key pillars of India Stack – enabling Paperless, Cashless and Presence-less banking in a simple and secure manner at the customers’ doorstep, through a CBS-integrated smartphone and biometric device. Leveraging frugal innovation and with a high focus on ease of banking for the masses, IPPB delivers simple and affordable banking solutions through intuitive interfaces available in 13 languages to more than 8 Crore customers across 5.57 lakh villages & towns in India.

It is committed to provide a fillip to a less cash economy and contribute to the vision of Digital India. India will prosper when every citizen will have equal opportunity to become financially secure and empowered. Our motto stands true – Every customer is important, every transaction is significant and every deposit is valuable.

Reach us at:

www.ippbonline.com

marketing@ippbonline.in

Social Media Handles:

Twitter – https://twitter.com/IPPBOnline

Instagram – https://www.instagram.com/ippbonline

LinkedIn – https://www.linkedin.com/company/india-post-paymentsbank

Facebook – https://www.facebook.com/ippbonline

Koo – https://www.kooapp.com/profile/ippbonline

YouTube- https://www.youtube.com/@IndiaPostPaymentsBank

About Hindustan Zinc

Hindustan Zinc, a Vedanta Group company in Zinc-Lead and Silver business is world’s 2nd largest integrated Zinc producer and 5th largest Silver producer. The company governs about 80% of the growing Zinc market in India with its headquarters at Udaipur along with Zinc-Lead mines and smelting complexes spread across the state of Rajasthan.

Hindustan Zinc is self-sufficient in power with captive thermal power plants and has ventured into green energy by setting-up wind power plants. The company ranked highest in the S&P Global Corporate Sustainability Assessment in 2023 amongst Metals & Mining companies reflecting & reaffirming its constant commitment towards sustainable and responsible mining practices. Hindustan Zinc is a certified Water Positive company and is the only Indian company to be recognized at the S&P Global Platts Metal Award 2022 winning two prestigious awards for ‘Industry Leadership Award – Base, Precious & Specialty Metals’ Award and ‘Corporate Social Responsibility’ Award. Hindustan Zinc is also the only Indian company in Mining sector with validated & approved SBTi targets in alignment with 1.5 °C target.

The company takes pride in having some of the best-in-class people practices and employee-centric initiatives, which have certified Hindustan Zinc as – ‘Great Place to Work 2023’, ‘Company with Great Managers 2022’ by People Business and the ‘People-first HR Excellence Award’.

As a socially responsible corporate, Hindustan Zinc has been relentlessly working towards transforming lives of 1.7 million people in 237 villages in the states of Rajasthan and Uttarakhand with a spend base of INR 276.3 crores in FY23 for various community development initiatives and is amongst the Top 10 CSR Companies in India.

says Union Finance Minister Smt. Nirmala Sitharaman at the 10th Vibrant Gujarat Global Summit in Gandhinagar

The GIFT City is ideally poised to be the gateway for financial and investment hub and has an important role to play in fulfilling the vision for India to become developed nation by 2047, said Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman while addressing the seminar ‘GIFT City-An Aspiration of Modern India’, organised as part of the 10th Vibrant Gujarat Global Summit 2024, at Gandhinagar today.

The Union Finance Minister said Prime Minister Shri Narendra Modi had conceptualised the idea of GIFT City way back in 2007 when he was the Chief Minister of Gujarat and it has now expanded into becoming a major international financial hub.

Spelling out the vision of the Prime Minister in terms of green technology, Smt. Sitharaman said GIFT City should look at being a platform for green credits. It should also aim to build diverse fintech laboratory to achieve the target of India’s economy becoming $30 trillion by 2047, the Union Finance Minister added.

Listing out the growing presence of operations at International Financial Services Centres (IFSC), Smt. Sitharaman said there are now 3 exchanges including International Bullion Exchange, 25 banks, including 9 foreign banks, 26 aircraft lesser, 80 fund managers, 50 professional service providers and 40 fintech entities in the GIFT City.

The Union Finance Minister further said India should aim to become manufacturing hub for shipping and there are 8 ship leasing entities working in IFSC that would enable access to global finance. Retail participation in stock markets in India is another distinct feature of the financial sector reforms initiated by the government, Smt. Sitharaman added.

Describing GIFT City as a fusion of technology and financial world, the Union Finance Minister said there is a need to infuse the advantages of technology into financial services and GIFT City is designed to provide advantages to India’s entrepreneurs in accessing global finance. Smt. Sitharaman said most of the global financial hubs earlier looked at capital only but the GIFT City has the distinction of getting financial services infused with technology.

The Union Finance Minister said India is now driving the growth engine of the world and it can become the bridge between the developed Western world and the Global South and as India continues onwards to the path of financial prominence on the global stage, the people of India want to become innovators and entrepreneurs, and added that GIFT City can help in realising these aspirations.

The inaugural session of the seminar was attended by Shri Kanubhai Desai, Finance Minister of the Government of Gujarat, Shri Hasmukh Adhia, Chairman, GIFT City, Shri K. Rajaraman, Chairman, IFSCA, and Shri Tapan Ray, MD & CEO, GIFT City.

Gross Direct Tax collections at Rs. 17.18 lakh crore with Y-o-Y growth of 16.77%, as on 10th January, 2024

Direct Tax collection, Net of refunds stands at Rs. 14.70 lakh crore with Y-o-Y growth of 19.41%

Net Corporate Income Tax (CIT) grows at 12.37% and Net Personal Income Tax (PIT) grows 27.26% Y-o-Y respectively

Refunds worth Rs. 2.48 lakh crore issued during 1st April, 2023 to 10th January, 2024

The provisional figures of Direct Tax collections up to 10^th January, 2024 continue to register steady growth. Direct Tax collections up to 10^th January, 2024 show that gross collections are at Rs. 17.18 lakh crore which is 16.77% higher than the gross collections for the corresponding period of last year. Direct Tax collection, net of refunds, stands at Rs. 14.70 lakh crore which is 19.41% higher than the net collections for the corresponding period of last year. This collection is 80.61% of the total Budget Estimates of Direct Taxes for F.Y. 2023-24.

So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 8.32% while that for PIT is 26.11% (PIT only)/ 26.11% (PIT including STT). After adjustment of refunds, the net growth in CIT collections is 12.37% and that in PIT collections is 27.26% (PIT only)/ 27.22% (PIT including STT).

Refunds amounting to Rs. 2.48 lakh crore have been issued during 1^st April, 2023 to 10^th January, 2024

In 2023, DGGI detected 6,323 cases involving evasion of duty of Rs. 1,98,324 crore; 119% increase in detecting cases Year-on-Year

To check Input Tax Credit (ITC) frauds in 2023, DGGI's Special Drive against ITC fraudsters resulted in detection of 2,335 cases with Rs. 21,078 crore ITC frauds; showing increase 46% in detection Year-on-Year

During the year 2023, Directorate General of GST Intelligence (DGGI) which is the premier investigating agency for GST matters, continued its relentless pursuit to check evasion of GST across the country. It has unveiled significant GST evasion in diverse sectors like Online Gaming, Casinos, Insurance sector, Secondment (import of Manpower Services), Fake ITC among others.  Non-compliance in these sectors not only pose a threat to the fiscal stability but also involve potential social, financial as well as economic security implications.

The dedication and tireless efforts of DGGI have yielded notable results, with a significant increase in performance.

Overall Performance in Detection of Duty Evasion and Voluntary Payments: DGGI has achieved an increase in detection of cases of evasion and voluntary payments. In 2023, DGGI detected 6,323 cases involving evasion of duty of Rs. 1,98,324 crore with a voluntary payment of Rs. 28,362 crore. 140 masterminds involved in GST evasion were arrested.

This is a significant improvement as compared to the previous year i.e. 2022 wherein 4,273 cases were detected, amounting to duty of Rs. 90,499 crore, and voluntary payment of Rs. 22,459 crore and 97 arrests were made. There is 119% increase in the Year-on-Year amount of duty evasion detected by DGGI and 26% increase in the voluntarily payments made.

Performance in fake Input Tax Credit (ITC) cases: DGGI initiated a Special Drive against ITC fraudsters to plug the leakage in Government revenue and as a result, 2,335 cases with ITC fraud of Rs. 21,078 crore were detected, with a voluntary payment of Rs. 2,642 crore. 116 masterminds were arrested to check the menace of fake invoicing. This is a significant improvement in comparison to the previous year i.e. 2022 wherein 1,646 cases were detected, totaling Rs. 14,471 crore and a voluntary payment of Rs. 1,604 crore was made and 82 masterminds were arrested.

This shows 46% increase Year-on-Year in amounts of duty evasion detected and 65% increase of voluntarily payments made in fake invoicing cases.

DGGI’s performance underscores its dedication to upholding the principles of fairness, transparency, and compliance. DGGI remains committed to maintain the integrity of the GST system, as well as to ensure that business operations are conducted within the framework of GST Laws and Rules, and to provide a level playing field to the compliant businesses.