MM TAX CLUB

MINISTRY OF FINANCE

(Department of Economic Affairs)

(BUDGET DIVISION)

NOTIFICATION

New Delhi, the 12th August, 2022

Auction for Sale (issue/re-issue) of Government Security (GS)

—Government of India (GoI) hereby notifies sale (issue/re-issue) of the following Government Securities

GoI will have the option to retain additional subscription up to ` 2,000 crore against each security mentioned above. The sale will be subject to the terms and conditions spelt out in this notification (called „Specific Notification‟). The Securities will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 as per the terms and conditions specified in the General Notification F. No.4(2)– W&M/2018, dated March 27, 2018 issued by Government of India.

Allotment to Non-competitive Bidders

2. The Government Security up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

Place and date of auction

 3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on August 19, 2022. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on August 19, 2022. The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m.

When Issued Trading

4. The Securities will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

Date of issue and payment for the securities

5. The result of the auction shall be placed by the Reserve Bank of India on its website (www.rbi.org.in) on August 19, 2022.The payment by successful bidders will be on August 22, 2022 i.e. the date of issue/reissue. The payment for the securities will include accrued interest on the nominal value of the Securities allotted in the auction from the date of original issue / last coupon payment date to the date upto which accrued interest is due as mentioned in the table in para 6.

Payment of Interest and Re-payment of securities

6. Interest will accrue on the nominal value of the Securities from the date of original issue/last coupon payment and will be paid half yearly. The Securities will be repaid at par on date of maturity.

*The coupon rate for the security will be set at the cut-off yield to maturity rate decided in the auction. The interest will be payable half-yearly

  Annex

Scheme for Non-competitive Bidding Facility in the Auction of Government of India Dated Securities and Treasury Bills

1. Scope: With a view to encouraging wider participation and retail holding of Government securities, retail investors are allowed participation on “non-competitive” basis in select auctions of dated Government of India (GoI) securities and Treasury Bills.
2.  Definitions: For the purpose of this scheme, the terms shall bear the meaning assigned to them as under:

1. Retail investor is any person, including individuals, firms, companies, corporate bodies, institutions, provident funds, trusts, and any other entity as may be prescribed by RBI.
2. Aggregator/Facilitator‟ means a Scheduled Bank or Primary Dealer or Specified Stock Exchange or any other entity approved by RBI, permitted to aggregate the bids received from the investors and submit a single bid in the non-competitive segment of the primary auction
3. . „Specified stock exchange‟ means SEBI recognized Stock Exchange, which have received No Objection Certificate (NOC) from SEBI to act as aggregator/facilitator in the primary auction segment
4. . „Eligible Provident Funds‟ are those non-government provident funds governed by the Provident Funds Act, 1925 whose investment pattern is decided by the Government of India

3. Eligibility:

1. Participation on a non-competitive basis in the auctions will be open to a retail investor who:

1. Does not maintain current account (CA) or subsidiary General Ledger (SGL) account with the Reserve Bank of India; and
2. Submits the bid indirectly through an Aggregator/Facilitator permitted under the scheme; or
3. Maintains the „Retail Direct Gilt Account‟ (RDG Account) with RBI

Exceptions:

1. Regional Rural Banks (RRBs) and Cooperative Banks:

1. Regional Rural Banks (RRBs) and Cooperative Banks shall be covered under this Scheme only in the auctions of dated securities in view of their statutory obligations.
2. Since these banks maintain SGL account and current account with the Reserve Bank of India, they shall be eligible to submit their non-competitive bids directly

2. State Governments, eligible provident funds and Others:

1. State Governments, eligible provident funds in India, the Nepal Rashtra Bank, Royal Monetary Authority of Bhutan and any Person or Institution, specified by the Bank, with the approval of Government, shall be covered under this scheme only in the auctions of Treasury Bills.
2. These bids will be outside the notified amount.
3. There will not be any restriction on the maximum amount of bid for these entities
4. Quantum: Allocation of non-competitive bids from retail investors will be restricted to a maximum of five percent of the aggregate nominal amount of the issue within the notified amount as specified by the Government of India, or any other percentage determined by Reserve Bank of India.
5. Amount of Bid:

1. The minimum amount for bidding will be ₹10,000 (face value) and therefore in multiples in ₹10,000 as hitherto.
2. b. In the auctions of GoI dated securities, the retail investors can make a single bid for an amount not more than Rupees Two crore (face value) per security per auction.

VI. Other Operational Guidelines:

1. The retail investor desirous of participating in the auction under the Scheme would be required to maintain a depository account with any of the depositories or a gilt accoun5 under the constituent subsidiary general ledger (CSGL) account of Aggregator/Facilitator or „Retail Direct Gilt Account‟ (RDG Account) with RBI.
2. Under the Scheme, an investor can make only a single bid in an auction. An undertaking to the effect that the investor is making only a single bid will have to obtained and kept on record by the Aggregator/Facilitator

Submission of Bids:

3. Each Aggregator/Facilitator on the basis of firm orders received from their constituents with submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Except in extraordinary circumstances such as general failure of the Reserve Bank of India Core Banking Solution (E-Kuber) system, non-competitive bid in physical form will not be accepted

Allotment of Bids:

4. Allotment under the non-competitive segment to the Aggregator/Facilitator will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding. The securities will be issued to the Aggregator/Facilitator against payment on the date of issue irrespective of whether they have received payment from their clients
5.  In case the aggregate amount of bid is more than the reserved amount (5% of notified amount), pro rata allotment would be made. In case of partial allotments, it will be the responsibility of the Aggregator/Facilitator to appropriately allocate securities to their clients in a transparent manner
6.  In case the aggregate amount of bids is less than the reserved amount, the shortfall will be taken to competitive portion

Issue of Security:

7. Security would be issued only in SGL form by RBI. The Aggregator/Facilitator has to clearly indicate at the time of tendering the non-competitive bids the amounts (face value) to be credited to their main SGL or CSGL account.
8.  Delivery in physical form from the Main SGL account is permissible at the instance of the investor subsequently.
9. It will be the responsibility of the Aggregator/Facilitator to pass on the securities to their clients. Except in extraordinary circumstances, the transfer of securities to the client should be completed within five working days from the date of issue.

                Commission/Brokerage charged to Clients:

10. The Aggregator/Facilitator can recover up to six paise per ` 100 as brokerage/commission/ service charges for rendering this service to their clients. Such costs may be built into the sale price or recovered separately from the clients.
11.  In case, the securities are transferred subsequent to the issue date of the security, the consideration amount payable by the client to the Aggregator/Facilitator will include accrued interest from the date of issue.
12. Modalities for obtaining payment from clients towards cost of the securities, accrued interest, wherever applicable, and brokerage/commission/service charges may be worked out by the Aggregator/Facilitator as per agreement with the client
13.  It may be noted that no other costs, such as funding costs, should be built into the price or recovered from the client.

VII. Reporting Requirements:

                 Aggregators/Facilitators will be required to furnish information relating to operations under the Scheme to the Reserve Bank of India (Bank) as may be called for from time to time within the time frame prescribed by the Bank.

VIII.           The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered necessary, the Scheme will be modified.

This is indeed a special moment of outpouring of the collective expressions of love and connect for the motherland: Sh. G. Kishan Reddy

In a stupendous achievement, more than 5 crore Tiranga selfies have been uploaded on the Har Ghar Tiranga website.

As India embarks on it’s 76th year of Independence wrapping up the 75 week countdown to 15th August, 2022 was the Har Ghar Tiranga initiative of the Government driven by the nodal Ministry for Azadi Ka Amrit Mahotsav; the Ministry of Culture.

The initiative dedicated to fostering deeper personal connect with the Tiranga requested Indians everywhere to display the flag at home or their place of work as a commitment to the cause of nation building during Amrit Kaal (25 years from now to India@2047)

The Unique Identification Authority has enrolled more than 79 lakh children in the 0 - 5 age group during the first four months (April – July) of the current financial year.

This is part of a renewed effort to reach out to more children in the 0-5 age group under the Bal Aadhaar initiative and help parents and children avail multiple benefits. While 2.64 crore children in the 0-5 age group had Bal Aadhaar by the end of 31 March 2022, this number has increased to 3.43 crore by the end of July 2022.

Bal Aadhaar registration is progressing very well, with increased speed across the country. Enrolments of children in the 0-5 age group in states like Himachal Pradesh and Haryana have already covered more than 70% of the targeted age group. Registration of children (0-5 age group) has also done exceedingly well in several other states and UTs including Jammu and Kashmir, Mizoram, Delhi, Andhra Pradesh and Lakshadweep.

Over all, Aadhaar saturation at present is around 94%. Aadhaar saturation among adults is almost 100%. Aadhaar is now a catalyst of both, ease of living and ease of doing business.

UIDAI and its regional offices have been constantly encouraging residents to come forward and register their children under Bal Aadhaar initiative. Bal Aadhaar works as a facilitator in availing several welfare benefits, and also works as a digital photo identity for children right from birth.

Children in the age group of 0-5 years are issued Bal Aadhaar. Collection of biometric (finger prints and iris)  is a key feature in issuing Aadhaar as the same is required to establish uniqueness based on de-duplication of these biometrics. However, for Aadhaar enrolment of children in the age group of 0-5 years, these biometrics are not collected.

Aadhaar enrolment of children in the age group of 0-5 years are carried out based on facial image of the child, and biometric authentication of the parent/guardian (having a valid Aadhaar). A proof of relationship document (preferably birth certificate) is collected at the time of enrolment for Bal Aadhaar.

To differentiate the Bal Aadhaar from normal Aadhaar, it is issued in blue colour, with a remark that this is valid till the child attains the age of 5 years. On attaining the age of 5, the child is required to furnish his or her biometrics at an Aadhaar Seva Kendra to complete a process called mandatory biometric update (MBU).

The MBU process goes through a de-duplication process. After completion of this process, the child is issued a normal Aadhaar without any change in the Aadhaar number

MINISTRY OF FINANCE

(Department of Financial Services)

NOTIFICATION

New Delhi, the 10th August, 2022

Atal Pension Yojana.— In partial modification of Ministry of Finance, Department of Financial Services Notification No. 16/1/2015-PR dated 16th October, 2015 on Atal Pension Yojana, published in the Gazette of India, Extraordinary, Part I, Section 1, the following amendment are hereby made:--

I. In the said notification at the end of para 2 the following shall be inserted, namely:-

“Provided that from 1st October,2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY.

Explanation: For the purpose of this clause, the expression “income-tax payer” shall mean a person who is liable to pay income-tax in accordance with the Income Tax Act, 1961, as amended from time to time."

II. In the said notification, at the end of para 13, the following shall be inserted, namely:-

                “In case a subscriber, who joined on or after 1st October, 2022, is subsequently found to have been an income-tax payer on or before the date of application, the APY account shall be closed and the accumulated pension wealth till date would be given to the subscriber.”

Income Tax Department issued an Updated 14^th August 2022 saying;

Dear Taxpayers,

It may be noted that statement of donation in Form 10BD and certificate of donation in Form 10BE is only applicable to the fund or institutions approved under sub clause (iv) of clause (a) of sub section (2) of Section 80G i.e Category D – Donation entitled for 50% deduction without qualifying limit. In respect of donations which fall in any other category (excluding category D), the deduction under Section 80G of the Act shall be allowed to an assesse based on the claim made by him in his return of income E.g. Donations made to PMNRF and PM CARES Fund etc.