The Institute of Chartered Accountants of India · Certificate Interest on bank deposits of NRI...

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The Institute of Chartered Accountants of India(Set up by an Act of Parliament)

website: www.vijayawada-icai.orgE-mail: [email protected]

[email protected]: 0866 - 2576666, 2575505, 2575506

March & April, 2019VOL - III & IV

Dear Professional Colleagues,

VikarinamaUgadisubhakanshalu to all of you. By this time, you might be allottedbranches of Banks to carry out Statutory Audit and gearing up to commence theaudit. I wish you all the best for the Bank audits.

Members Activity

The month of March was marked with a buzz of activity at the branch. Members andstudents in good numbers (more than 100 for each program) attended seminars andprograms conducted on variedtopics.

On March 2ndPanel discussion on Banning of Unregulated Depositswas conducted.CA. A.S.R.S.S. SivaPrasad, CA. B.V.S LingaMurthy, CA.G.Gangadhar and CA.N.RaviKishore were the panel speakers.

Women's Day was celebrated on 8th March. Dr. T. Rajathi, Ayurvedic Doctor and Dr.Swapna Srinath, Ramesh Hospitals were the resource persons of the program andthey enlightened the gathering on Women Health.

Installation of new office bearer was done on 9th March.On the same day Seminar onBank Audit was conducted. CA. D. Prasanna Kumar, Central Council Member wasthe Chief Guest and CA. Naresh Gelly, SIRC memberwas the Guest of Honour for theprogram. CA. D. Premnath, CA. Venkata Ram and CA. Vijay Thotapalli dealt withvarious topics of Bank Audit.

Joint program with ISACA, Vijayawada Chapterwas organised on 15th March onthe topic - "Using of Data Analytics in IS Audit". Mr.Sridhar, CISA from Hyderabadspoke at the meeting. CA. Ramana Murthy, President, ISACA, Vijayawada Chapterand CA. KundaRamanarayanacoordinated the program.

CA. P.Sharath Kumar from Hyderabad shared his expertise on detection of frauds inthe CPE program on 28th March. The topic was "Detection of Frauds-Our Dutiesand Responsibilities in Bank Audit".

EDITORIAL BOARD

Editor : CA. N.Ravi Kishore

Members : Dr. CA. Y. Nagavalli, CA. K. PurnaChander Rao

OFFICE BEARERS

FOR THE YEAR 2019-2020

Dr. CA. YARABARLA NAGAVALLI

Chairperson(O) 2478158, Cell: 9966102729E-mail: [email protected]

CA. SREENIVASA RAO GODAVARTHI

Vice Chairman(O) 2473164, Cell : 93462 22567

E-mail: [email protected]

CA. K. PURNA CHANDER RAO

Secretary(O) 2578801/02, Cell : 99668 99553

E-mail : [email protected]

CA. GADDAM SRITHA SHIREEN

Treasurer(O) 2436905, Cell : 99128 98434


CA. NARENDRA BABU VEERLA

Chairman, SICASACell : 9440241600


CA. NITTA RAVI KISHORE

Managing Committee Member(O) 2423745, Cell: 9 44 00 92 595


CA. NETTEM SUNITHA

Managing Committee MemberCell : 9550359873


CA. TALAKAYALA CHINAMASTHAN

Secretary, SIRC of ICAI & Ex-Officio of Vijayawada BranchCell : 9849864289


Students ActivitiesOn 25th March, SICASA, has conducted acareer counselling program at KBN College, Vijayawada. 250 Degree students attendedthe program. CA. B.V.S. Linga Murthy coordinated the program. Secretary, CA. K.PurnaChanderRao and SICASA Chairman, CA.V.Narendra Babuexplained the students about the CA course and opportunities for CAs. Dr. K.Narayana Rao, Principal, KBNCollege facilitated the program.

One Day seminar on Bank Branch Audit was organised for Students on 21stMarch. Students in good numbers (180 students)attended the seminar. CA. Ch. Amar Sudheer, CA.Ch.Pramod, CA.N.Ravi Kishore and CA. P.V.Goda Devi dealt with various aspectsof Bank Audit. There was an overwhelming response and due to paucity of Seminar hall capacity the same seminar was conductedon the next day also with the same speakers. 100 students attended on that day.

On 29th March, a 2 hrs program on "MAT provisions relating to IND AS complaint Companies" by CA. K.Vamsi Krishna wasorganised. 50 students attended the program.

On behalf of Vijayawada Branch, the Managing Committee felicitated Honourable Minister for Railways and Coal, CA. PiyushGoyal on 26th March at Sesha Sai Kalyana Mandapam in a Public meeting.

On 26thMarchCA.RajeshSarma, Central Council Member (Northern Region) has visited our branch and interacted with the MCmembers and some of the Past Chairmen. CA. D Prasanna Kumar, Central Council Member (Southern Region) administered theoath of Managing Committee Members of the Branch on 9th March. We look forward for their support in the branch pursuits.

CA. Chinamasthan, Member SIRC was appointed as ex-officio of our Branch.He visited the branch on 23rd March and attended theManaging Committee Meeting.We look forward for his suggestions and guidance.

I am very happy to inform that our Past Chairman, CA Akkaiah Naidu has been Coopted as a Member of “Committee of InternalAudit Standards Board” of ICAI for the year 2019-20. I congratulate him on behalf of Vijayawada branch of SIRC Of ICAI

Certificate course on FAFD was conducted during 4thto 10thMarch.

Members are encouraged to contribute articles for the News Letter. Also, members are requested to volunteerto be resource personsand speakers at seminars conducted by the branch. Those interested in contributing articles to the newsletter or interested inspeaking at seminars may convey your interest to CA. N.Ravi Kishore, Convenor News Letter Committee and Programs Committee.

Updation of Member's DirectoryYour cooperationis sought for publishing the updated Member's Directory by sending your photograph, mail id and Mobilenumber to the branch mail id.

****I thank the Central Council Members and Regional CouncilMembers who visited Vijayawada Branch, for sparing their valuabletime. My sincere thanks to all the members and students for their active participation in the Programs.I thank all resource personsand speakers of various seminars conducted by the branch during the month of March. I appreciate the members who contributedarticles and contenttothis Newsletter.

With best regards

05/04/2019 (Dr. CA. Yarabarla Nagavalli)Vijayawada Chairperson

Forth coming events for members:

Course on Valuation of Securities and Financial Instruments in the 3rd or 4th week of April (Approval pending)

CPE programs in the 3rd and 4th week of April on

Money Laundering

TDS Provisions under Income Tax Act

Company Law Compliance

*********

Forth coming events for Students:

Programs on IBC,ICDS, Amendments to Direct and Indirect Taxes, Company Law Amendments.

Additional Mock Tests

Crash course in Auditing Standards, IND AS and others on demand

*******

Interaction with CA. Piyush Goyal, Hon’ble Minister of Railways and Coal, Govt. of India

CCM Visit our Branch

CCM Visiting the Branch

CA. E V Rama Krishna

[email protected]

Bank Fixed Deposits - TDS IssuesDeposits in the name of Registrar to the Court during pendency of litigationWhere one (or more) litigantsare directed by the court that a specified amount be deposited in the bank directly or throughthe court, the bank shall deduct tax at source on the interest accruing on such deposit as per provisions of sec 194A. TDScertificate (form 16A) shall be issued by the bank in the name of the depositor(s). Where more than one person has beendirected to deposit any specified amount, tax at source shall be deducted on proportionate interest accrued to each of therespective depositor (if it exceeds threshold limit) and TDS certificates shall be issued accordingly - Circular No.8/2011dated Oct 14, 2011.

However, once the court decides the ownership of money lying in fixed deposit, the provision of section 194A shall applyto recipient of the income-Circular No.23/2015 dated Oct 28, 2015.

For instance, in the course of appellate proceedings, the court directs an insurance company to make a term deposit of apart of compensation awarded by Motor Accidents Claims Tribunal. The credit of TDS on interest accruing on suchdeposit will be allowed to the insurance company which has made such deposit.

These provisions shall not be applicable in the following cases:F Any deposit in the bank held by or dealt by the court (or any other person appointed by the court) in the capacity of

administrator/receiver/any authority of similar nature

F Any deposit which has not been made by any specific depositor but has arisen due to attachment made by the court

F Cases of representative assessee within the meaning of section 160.

Fixed Deposit in the name of a MinorChildren, many a time, receive gifts from grandparents or relatives in the form of money. Parents often tend to invest themoney collected in fixed deposits to ensure they come handy when needed for the child. The interest income received bythe child or the minor from the fixed deposit is taxable. However, such interest income is clubbed in the hands of theparent. The PAN of the parent in whose hands the income is clubbed is considered for the purpose of generating TDSCertificate

Interest on bank deposits of NRIInterest earned on Non-Resident External (NRE) accounts and Foreign Currency Non-Resident (FCNR) accounts aretax free in India.

Hence, there would be no TDS. However, interest earned on the Non-Resident Ordinary Account (NRO) is taxable andwill be subject to a TDS u/s 195 of the Income Tax Act. TDS is to be deducted both on Savings account as well as TimeDeposits. There is threshold limit. Interest earned by resident individuals from bankdeposits is subject to TDS only overand above a limit of Rs 10,000. No such limit applies for NRIs.

Interest on bank deposits of senior citizensThe Central Board of Direct Taxes (CBDT) has issued a notification dated 6th December 2018 clarifying that no TDS isto be deducted by the banks if the interest income in a single financial year does not exceed Rs 50,000 forsenior citizens.

It has been brought to CBDT's notice that some banks are wrongly deducting TDS even when the interestincome does notexceed Rs 50,000 in case of senior citizens, said the notification. Consequently, CBDT issued the notificationstating thatno tax deduction at source under section 194A shall be made in the case of senior citizens where the amount of suchinterestincomes credited or paid during a financial year does not exceed fifty thousand rupees.

************

CA. Vanama Vijay Kumar

[email protected]

GST ON BANKING SECTOR

AP GST / VAT update by CA. A. Chinna Gangaiah

https://drive.google.com/open?id=1DWzKSszO_2GG4kA8tWoW8fw2Cxu9tKPE

Panel Discussion on the Banning of Unregulated Deposit Schemes Ordinance 2019

Women’s Day Celebrations Installation of New Office Bearers& Bank Branch Audit Seminar

Bank Branch Audit SeminarSpeaker : CA. D. Premnadh

Bank Branch Audit SeminarSpeaker : CA. T. Vijay

Bank Branch Audit SeminarSpeaker : CA. C. Venkat Ram

Seminar on Using Data Analytics in I.S. AuditSpeaker : Sri Sridhar

Bank Branch Audit for CA StudentsSpeaker : Ca. Ch. Amar Sudheer

Bank Branch Audit for CA StudentsSpeaker : Ca. Nitta Ravi Kishore

Bank Branch Audit for CA Students

Bank Branch Audit for CA StudentsSpeaker : CA. Ch. Pramodh

Bank Branch Audit for CA StudentsSpeaker : CA. P.V. Godadevi

Ex-Officio Member CA. T Chinna Mastan

Career Counselling Programme at K.B.N. College, Vijayawada

SICASA Seminar on MAT Provissions Relating toIND-AS Complaint Companies

By CA. K. Vamsi Krishna

CPE Seminar on Detection of Frauds in Bank Auditby CA. P. Sharath Kumar

Obituary

CA. M.V. Nagendra KumarM. NO: 023143

Machilipatnam 09.03.2019

May the Almighty of the Universe rest his soul in peace.

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