Current Affairs For Bank, IBPS Exams - 25June, 2015

Current Affairs for BANK, IBPS Exams

25 June 2015

::Business::

TDS on Provident Fund Withdrawal: 10 Things to Know

The income tax rules on provident fund withdrawal from Employees Provident Fund Organisation (EPFO) have changed from June 1, 2015.
With more than Rs. 6 lakh crore of assets from nearly 8 crore subscribers, the Employees Provident Fund Organisation (EPFO) is one of the world's largest retirement fund body.

1) Provident fund withdrawals before five years of completion of service will attract tax deducted at source (TDS) at 10 per cent.

2) If the accumulated provident fund balance is less than Rs.30,000, TDS would not be applicable.

3) TDS will be deducted at 34 per cent if subscriber fails to submit PAN.

4) Exemption from TDS has been given to subscribers with no taxable income, provided they submit the required forms.

5) Two avoid the levy of TDS, Form No. 15G (other than senior citizens) or 15H (for senior citizens) can be submitted, provided the provident fund amount payable is up to Rs.2,50,000 and Rs. 3,00,000 respectively.

6) Form No. 15G or 15H are self-declaration forms that can be furnished by individuals to state that their income is below the taxable limit.

7) TDS shall not be deducted in case of transfer of provident fund from one account to another.

8) TDS will not be applicable in case of "termination of service due to ill health of member, discontinuation / contraction of business by employer or other cause beyond the control of the member," the retirement fund body said.

9) In case of withdrawal after five years or more of continuous service, no TDS would be applicable.

10) For computing the period of continuous service, the period of previous employment can also be included, if the accumulated balance while at previous employer is transferred to provident fund of the new employ

DBS Bank,s covered bond program

Singapore's DBS Bank has set up a US$10 billion covered bond program – the first by a Singaporean bank.
Since 2013 the Monetary Authority of Singapore has allowed the country's banks to issue covered bonds worth up to four per cent of their total assets.
DBS said in a statement that the issue would allow it to "engage a fresh group of investors" and lower its cost of funds.
Moody's said in a note that the issue would give the bank a stable funding source that would ensure access to funds even in times of market disruption.

India banks' capital boost

State-owned banks in India might receive a collective balance sheet boost of US$3 billion this fiscal year and potentially US$6 billion more next year, as the government tries to recapitalise the sector to meet Basel III rules.
Reuters reports the planned capital injection is much higher than the Budget estimate of US$1.25 billion for this fiscal year.
Nevertheless, Morgan Stanley observed that rising bad debts – now heading towards six per cent – could require as much as US$15 billion across all state banks to be injected "urgently" to achieve a common equity tier 1 ratio of around ten per cent.
The British taxpayers' share of Lloyds Bank sits at 16.9 per cent, taking the total sum recovered to £11.5 billion. Reuters reports UKFI, which manages government's stakes in bailed-out banks, has extended a 'trading plan ' that will allow Morgan Stanley to sell Lloyds shares beyond the June 30 deadline until the end of the year. The retail sale could enable a full exit in the next year as shares have sold through the plan at an average of more than 80 pence, above the government's average 73.6 pence buy-in price.

::National::

Modi,s Smart cities dream

Prime Minister Narendra Modi announced on Thursday that the development of smart cities will hinge on a bottom-up rather than a top-down approach, as citizens and municipalities would be in charge.
"The city's vision towards its future development is necessary for any programme's success.
Otherwise it will get bogged down, where state-level departments and agencies are awaiting directions from the centre, while cities are awaiting a decision from the state governments," he said.
Smart City aspirants will be selected through a "City Challenge Competition" intended to link financing with the ability of the cities to perform to achieve the mission objectives.
Cities must qualify themselves through city-challenge criteria like sanitation, clean water, power, greenery quotient and ratio between revenue and expenditure on municipal salaries.
The government has approved the Smart Cities Mission under which 100 new smart cities, which would promote adoption of smart solutions for efficient use of available assets and enhance the quality of urban life, would be made.
Each selected city would get central assistance of Rs.100 crore per year for five years.