M H Finserve "Financial Advice Made Simple"

22/07/2020

To revive the economy that has taken a hit due to the coronavirus pandemic, the Reserve Bank of India (RBI) started lowering policy rates.

It has cut the repo rate by 40 basis points (bps) to 4 percent and reduced the reverse repo rate by 40 bps to 3.35 percent in its last monetary policy meeting. One basis point is one-hundredth of a percentage point.
Experts recommend investors to own a home as it helps one acquire a tangible asset that can appreciate over the long term. However, investors should be careful while purchasing real estate given that construction of several housing projects in India continue to be delayed or stalled for many years.

A home loan is probably the biggest loan that one takes. Not only in terms of the loan amount but also the tenure, which can spread over 15 years or more. The total amount that one pays can be double of what one borrowed. It is among the cheapest loans available and usually it is the only way a person can buy a house.
India's largest public sector lender State Bank of India (SBI) offers home loans starting at 6.95 percent, while other public sector banks have been offering loans as low as 6.7 percent.
Check out the lowest home loan interest rates of some key banks
Bank Interest rates:

Union Bank of India 6.7-7.15%
Bank of India 6.85- 7.85%
Bank of Baroda 6.85-8.35%
Central Bank of India 6.85-9.05%
Punjab & Sind Bank 6.9-7.25%
Canara Bank 6.9-8.90%
HDFC Bank 6.95-7.85%
ICICI Bank 6.95-8.05%
Punjab National Bank 7-7.6%
State Bank of India 7-7.85%
Indian Bank 7%
Indian Overseas Bank 7.05-7.3%
Bank of Maharashtra 7.05-8.45%
UCO Bank 7.15-10.45%
IDBI Bank 7.5-9%
Source: Bank websites

03/07/2020

24/06/2020

☝🏻 *CBDT* has issued a notification today further extending few of the time limits of compliances under Taxation & Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 as under:

👉 Due date for filing Income Tax Return for F.Y 2018-19 has been extended to 31st July, 2020

👉 Waiver of interest u/s 234A in cases where self assessment tax is upto Rs 1 lac

👉 Deductions under Ch-VIA like Sec 80C, 80D, 80G, etc can now be made upto 31st July, 2020

👉The date for furnishing of TDS/TCS statements for the quarter ending on 31st March, 2020 has been extended to 31st July, 2020

12/06/2020

12/06/2020

*GST Council Meeting Updates*

1️⃣ For all those who have no tax liability but have not filed GST returns for tax period July 2017 - Jan 2020 (prior to period), there shall be no late fee at all

2️⃣ For people who have tax liability, maximum late fee for non-filing of GSTR-3B returns for period Jul 2017 - Jan 2020 has been capped to ₹ 500
This will apply to all returns submitted during Jul 1, 2020 - Sep 30, 2020

3️⃣ For small tax payers whose aggregate turnover is up to ₹ 5 crore, the rate of interest for late furnishing of GST returns for Feb, Mar and April 2020, beyond July 6, 2020: the rate of interest is being reduced from 18% to 9%

4️⃣ Small tax payers whose aggregate turnover is up to ₹ 5 crore will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June and July 2020, by September 2020

5️⃣ Tax payers who could not get cancelled GST registrations restored in time are being given an opportunity to apply for revocation of cancellation of registration up to September 30, 2020
In all cases where registration has been cancelled till June 12, 2020

Source: Ministry of Finance - official Twitter channel

Notification shall be issued for implementing these decisions taken.

09/06/2020

The option to file Nil GSTR 3B return is available to regular/casual taxpayer/ SEZ units and developers.

Conditions:
- All previous GSTR 3B returns are filed and there is no pending tax, interest or late fee for previous tax periods.
- No data should be in saved stage for GSTR 3B on the Portal.

All the authorized representatives, for a particular GSTIN can file NIL GSTR 3B through SMS. If more than one authorized representative/ signatory have the same mobile number registered on the GST Portal, such SMS requests will not be accepted for filing NIL return. In such scenario, Authorized Signatory first need to update their mobile number on the GST Portal, through non-core amendment process, by giving unique mobile number for every authorized signatory for that requested GSTIN.

Taxpayer can file NIL GSTR 3B return through SMS for all GSTINs, for whom they are an Authorized Signatory, using same mobile number.

To file a Nil GSTR 3B return, SMS needs to be sent to 14409
NIL3BGSTIN i.e. NIL 3B 062020

01/06/2020

MSP hike, equity scheme for MSMEs and more: Key takeaways from Cabinet briefing
Among the key decisions, the Centre approved revision in the definition of MSMEs and cleared a credit scheme for street vendors.

Here are the key highlights from the announcement:
> The Centre approved revision in the definition of MSMEs.
> The Union Cabinet cleared a credit scheme for street vendors.
> Hike in the minimum support price (MSP) for 14 kharif crops by 50-83 percent over cost, was approved by the Cabinet.
> Distressed assets fund - Subordinate debt scheme for MSMEs
Guarantee for fund raising for revival: Government of India has said that it will provide guarantee coverage of up to 85 percent for loans of up to Rs 5 lakh, and 75 percent for loans beyond Rs 5 lakh to MSMEs for them to raise funds from financial institutions.

The Centre has said that the quasi-equity provision with the guarantee balances the risks and rewards between the lender (bank) and the customer in a situation where an outright loan is too risky, quasi-equity with guarantee will provide the requisite financing to the company.
Subordinate debt will be of substantial help in sustaining and reviving the MSMEs which have either become a non-performing assets (NPAs) or are on the brink of becoming an NPA.

Provision for sub debt will be of Rs 20,000 crore, which is likely to benefit two lakh MSMEs, according to the government.

Who can apply: Functioning MSMEs which are NPA or are stressed will be eligible; promoter(s) of such units can apply.

How to apply: Promoter(s) of MSMEs meeting the eligibility criteria may approach scheduled commercial banks to avail benefit under the scheme.

> Equity infusion for MSMEs through Fund of Funds
Growth funding to MSMEs through equity financing: The Government of India will support VC/PE firms in investing in commercially viable MSMEs in meeting their growth requirements.

The proposed fund of funds will encourage private sector investments in the MSME sector and leverage Rs 50,000 crore, according to the government.
Under the scheme, there would be a Mother Fund, where the Centre will be the anchor investor.
The Mother Fund can invest daughter funds which can deploy the investments in targeted MSMEs.
This will create a partnership with MSMEs in their growth journey and enable them to grow bigger and get listed on stock exchanges.
The scheme is expected to facilitate equity financing of Rs 50,000 crore in the MSME Sector, the Centre has said. All MSMEs are eligible to apply.

14/05/2020

Rs 2 lakh crore under KISAN Credit # Sitharaman LIVE |
Rs 2 lakh crore will be made available to 2.5 crore farmers giving them access to institutional credit. Fishermen and animal husbandry farmers will considered under this scheme. Will seek to enroll more farmers for KISAN cards so that they benefit: Sitharaman

13/05/2020

FM Sitharaman LIVE |

Next step for MSMEs, global tenders in government procurement will be disallowed for up to Rs 200 crore or less. This will allow MSMEs a chance to supply for these big projects. Small units can be part of government purchases and now Self-reliant India can Make in India: Sitharaman

13/05/2020

FM Sitharaman LIVE |

Rs 20,000 crore will be infused through subordinate debt for stressed MSMEs who have equity problems. This liquidity line will benefit 2 lakh MSMEs. All NPA' or stressed MSMEs are eligible for scheme. Government will provide Rs 4,000 crore to CGTMSE who will provide partial guarantee to banks who will then give benefit to stressed MSMEs: Sitharaman

13/05/2020

FM Sitharaman LIVE |

For standard MSMEs, collateral free automatic loans worth Rs 3 lakh crore will be provided. This is for 4 year tenure and is 100 percent guaranteed. No principal repayment for 12 months. This will last till October 21, 2020. It will benefit 45 lakh units, allowing them to resume activity and safeguarding jobs: Sitharaman