IRDAI defers Ind AS implementation for Insurance Sector

Background

Ministry of Corporate Affairs, had on March 30, 2016 notified the road map for implementation of Ind AS for banks, insurers and NBFCs from accounting period beginning 01st April 2018.

Insurers were required to implement Ind-AS 104, Insurance Contracts from April 2018 which is equivalent to IFRS 4. Since IFRS 4 has been replaced by IFRS 17 therefore the Insurance Regulatory and Development Authority of India (IRDAI)through its circular IRDA/F&A/CIR/ACTS/146/06/2017 dated 28.06.2017 approved the Regulatory override whereby the implementation of Ind AS in the Insurance Sector in India has been deferred for a period of two years and the same have to be implemented from accounting period beginning from 1st April, 2020.

Latest Development

The IRDAI through its circular IRDAI/F&A/CIR/ACTS/023/01/2020 dated 21.01.2020 stated that in the phase where insurance sector was preparing to implement Ind AS, it was noted that the International Accounting Standard Board (IASB) has taken a considered view to amend IFRS 17: Insurance Contracts, due to the concerns raised around accounting treatments, operational complexity and implementation challenges raised by various stakeholders. The IASB has indicated that it aims to issue final amendments in mid-2020.

For more detail, Click Here

DISCLAIMER:

The information contained herein is in summary form and is intended only for the person to whom it is sent. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of such information. Recipients should conduct and rely upon their own examination, investigation and analysis and are advised to seek their own professional advice. This document is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain or for any loss, howsoever caused or sustained, by the person who relies on it.

Posted in others |

Why Risk Advisory to Manage Business Risk is Important?

What is Risk Management?

Risk management is the process of identifying, assessing and controlling threats to an organization’s capital and earnings. The risks, could evolve from a various sources such as financial risk, legal risk, strategic risk, nature’s apathy, etc.The risk management strategies to reduce the risks, have become a top priority for companies.
Continue reading

Posted in Risk Advisory |

Central Board of Direct Taxes (CBDT) Issues Clarification On The Applicability Of TDS Provisions On Mutual Fund Dividend

Central Board of Direct Taxes vide Press Release dated 4th February, 2020 has clarified that under section 194K (proposed to be inserted vide Finance Bill, 2020), a Mutual fund shall be required to deduct TDS@10% only on dividend payment and no tax shall be required to be deducted by the Mutual Fund on income which is in the nature of capital gains. It is also mentioned in the Press release that necessary clarification, if required, shall be proposed in the relevant provision of the law.
For details, please refer the pdf attachment:  Press Release CBDT dated 04.02.2020 Read Here

Posted in Direct Tax |

Union Budget for the Financial Year 2020-2021

On 1st February 2020,  Hon’ble Finance Minister of India, Smt. Nirmala Sitharaman tabled the Union Budget for the Financial Year 2020-2021. A brief snapshot of the Union Budget prepared by Dewan P.N. Chopra & Co. is attached.

For more details Read Here

Posted in Regulatory |

Other electronic modes specified by CBDT

CBDT vide Notification No. 8/2020 dated 29.01.2020 has inserted Rule 6ABBA of IT Rules w.r.e.f 1st Sept 19 prescribing following “Other Electronic Modes” of payments/receipts for the purposes of Section 13A, 35AD, 40A(3) & (3A), 43, 43CA, 44AD, 50C, 56(2)(x), 80JJAA, 269SS, 269ST and 269T:

  • Credit Card;
  • Debit Card;
  • Net Banking;
  • IMPS
  • UPI;
  • RTGS;
  • NEFT; and
  • BHIM Aadhar Pay;

Also amended Rule 6DD to incorporate “Other Electronic Modes” specified in Rule 6ABBA. Moreover words “Exceeding Rs. 20,000” are also substituted with “Exceeding Rs. 10,000” to sync rule 6DD with Section 40A(3) & (3A) wherein the limit of cash expense was reduced to Rs. 10,000 earlier vide Finance Act, 2017;

For details, please refer Notification No. 8/2020 enclosed herewith. >> Click here <<

Posted in others |