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Tag: KPMG

  • Is the amount gifted by your accomplice taxable?

    I’ve an earnings of ₹12 lakh yearly, along with bonuses. My husband presents me ₹90,000 per 30 days. Will this amount be taxable in my account? If my husband reduces this amount to ₹50,000, will that in the reduction of my tax obligation?

    —Name withheld on request

    As per the provisions of the Income-tax Act, any sum of money or price of property acquired from ‘relative’ should not be thought-about as taxable every throughout the fingers of the donor and the recipient. The definition of the phrase ‘relative’ for the talked about aim consists of accomplice of the individual. Thus, any sum of money acquired by you out of your husband shall not be taxable for each you or your husband.

    It would possibly, nonetheless, be well-known that as per the provisions of Section 64 of the Act, any earnings that arises to the recipient accomplice from belongings gifted by the donor accomplice, might need to be clubbed with the earnings of the donor accomplice, subsequently these provisions might also be examined individually.

    I’ve a provident fund (PF) account for higher than 5 years. Is withdrawal of an amount above ₹50,000 from this account be taxable?

    —Sajeed Turki

    As per provisions of half 192A of the Income-tax Act, tax is required to be deducted at provide upon withdrawal of amassed stability attributable to an employee who has participated in a recognised employee provident fund (EPF), provided such withdrawal should not be exempt from tax as per the prescribed provisions and the mixture amount withdrawn is ₹50,000 or additional.

    Further, as per provisions of half 10(12) be taught with rule 8 of half A of the fourth schedule of the Act, stability to the employee’s credit score rating on the date of cessation of employment, is exempt from tax, if the employee has rendered regular service collectively together with his employer for a interval of 5 years or additional.

    It is assumed hat you’ve got rendered regular firms for a interval of 5 years or additional alongside along with your employers (to whom the Employees Provident Fund and Miscellaneous Provisions Act, 1952 applies) and have contributed in route of recognised EPF for a gentle interval of 5 years or additional. Thus, the amount so withdrawn could be exempt from tax to the extent talked about above and no TDS, or tax deducted at provide, ought to use on the equivalent.

    Please individually discover that any curiosity accrued from date of cessation of employment up to now of withdrawal would, nonetheless, be taxable. Also, any accumulations and curiosity thereon to the extent it pertains to employer contribution in additional of ₹7.5 lakh yearly or curiosity accrued to the extent it pertains to employee contributions in additional of ₹2.5 lakh yearly continues to be taxable.

    Parizad Sirwalla is affiliate and head, world mobility firms, tax, KPMG in India.

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  • Can I reinvest positive factors from property sale?

    I lately bought a home and made a capital acquire of ₹60 lakh. I don’t want to put money into a home property and want to save tax by investing in 54EC bonds. Can I make investments ₹50 lakh in such bonds and pay tax on the steadiness ₹10 lakh?

    —Anu

    We perceive that you simply intend to speculate the Long-Term Capital Gain (LTCG) from sale of home property (‘Original asset’), in long-term specified asset (being NHAI bonds, REC bonds, PFCL bonds, IRFCL bonds or another bonds as could also be specified by the central authorities) beneath part 54EC of the Income-tax Act, 1961, to say deduction towards such LTCG. In regard to the identical, following related provisions of the Act advantage consideration:

    Section 54EC of the Act supplies for exemption towards the capital acquire arising from the sale of a long-term capital asset (being land or constructing or each). This exemption is out there (topic to achievement of specified circumstances) the place the quantity of Capital Gain arising from sale of authentic asset is invested in long-term specified asset inside a interval of 6 months from the date of such switch.

    The most funding that may be made by a taxpayer in long-term specified asset for this objective is ₹50 lakh.

    The exemption might be obtainable in proportion to the Capital Gain invested. In case, the funding in long-term specified asset is lower than the LTCG (arising from the switch of the unique asset), a lot of the exemption shall be allowed proportionately, i.e., in identical proportion as the price of acquisition of the long-term specified asset bears to the entire of the LTCG.

    We perceive that you’ve earned LTCG of ₹60 lakh by sale of the unique asset. Accordingly, chances are you’ll make investments ₹50 lakh in long-term specified asset to say the exemption beneath part 54EC of the Act. An exemption of ₹50 lakh shall be allowed in the direction of such funding.

    The steadiness LTCG of ₹10 lakh shall be taxable as per provisions of part 112 of the Act at 20% (plus relevant surcharge and cess).

    In case the long run specified property are bought or transformed into cash inside 5 years of its acquisition as relevant, quantity of exemption shall be thought-about to be LTCG for the yr through which such sale / conversion is completed.

    Parizad Sirwalla is accomplice and head, world mobility providers, tax, KPMG in India.

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  • Do I must declare my US account in ITR?

    I labored for a number of years within the USA, the place my employer supplied the 401(ok) account. Now, I’m a resident Indian. However, I nonetheless preserve that account and need to know whether or not I’ve to declare this in my revenue tax returns (ITR)?

    —Name withheld on request

    Based on the restricted data supplied by you, it’s presumed that you’re an Indian citizen and qualify as Resident and Ordinarily Resident and thus you might be required to reveal the main points (in ITR-2) of all of your overseas belongings.

    Foreign Assets (‘FA’) schedule within the ITR kind seeks to include the main points of belongings which a taxpayer holds exterior India. In the absence of any particular tips qua asset, whether or not an asset is to be included or not will have to be evaluated foundation the character and vesting of the asset, wordings and outline within the schedule and the restricted directions/ tips on this regard.

    It is assumed that the 401(Okay) account is a private pension account within the US during which each the employer and worker contribute throughout the interval of service. It could be prudent to reveal the main points of the 401(Okay) account within the FA schedule.

    With respect to the particular part of the FA schedule below which it ought to be disclosed, it might rely on the precise nature of the 401K account, which can have to be evaluated. In case of the character of account doesn’t fall into any particular class, one might think about reporting it below the residual part D —’Any different Capital asset” (as per the ITR-2 kind relevant for monetary yr 2021-22).

    I had invested in an unsecured mounted deposit (FD) scheme of an organization. In 2018, the corporate stopped paying curiosity and didn’t return the principal quantity to depositors. After litigation below the Negotiable Instrument Act, the corporate agreed to pay me the principal with none curiosity for the interval of the unique deposit or the following default interval —all for a complete of about 4 years. Can I declare any profit as ‘long term capital loss’ for the interval during which I misplaced curiosity on my deposit quantity whereas submitting my revenue tax return? The settlement was made throughout the present monetary yr and the repayments are being made in month-to-month installments.

    —Name withheld on request

    Based on the knowledge supplied by you, it’s assumed that, as no curiosity was paid to you for the default interval, no corresponding revenue was additionally provided to tax by you. In such a case, this will likely solely be construed as non-realization of a possible revenue, which can nonetheless not be thought of as a loss for tax functions, regardless that it could be so in an financial sense. Also, such loss has not arisen from the switch of the mounted deposit, for the reason that principal quantity itself is being absolutely repaid to you. Hence, topic to a evaluate of the underlying deposit scheme and phrases of the negotiated settlement, a capital loss will not be out there on this case.

    Parizad Sirwalla is accomplice and head, world mobility providers, tax, KPMG in India.

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  • 46% CEOs globally job cuts, 39% freeze hiring: KPMG

    The Great resignation is cooling down, with 39 per cent of worldwide chief govt officers implementing a hiring freeze, and 46 per cent contemplating downsizing their workforce over the following six months, based on the KPMG 2022 CEO Outlook launched on Tuesday.

    The survey requested greater than 1,300 CEOs on the world’s largest companies about their methods and outlook, and included leaders from 11 key markets: India, China, US, UK, France, Germany, Italy, Japan, Canada, Australia and Spain. The three-year view, nonetheless, is extra optimistic, with solely 9 per cent anticipating an extra decreased headcount. The different excellent news is that greater than half the leaders anticipate a recession to be delicate and brief.

    A considerable quantity (14 per cent) of senior executives establish a recession among the many most urgent issues right this moment — up barely from early 2022 (9 per cent), whereas pandemic fatigue tops the listing (15 per cent).

    Over the following yr, greater than eight out of 10 (86 per cent) international CEOs anticipate a recession, with 71 per cent predicting it’ll affect firm earnings by as much as 10 per cent.

    A robust majority of senior executives consider a recession will disrupt anticipated progress (73 per cent). However, three-quarters have already taken precautionary steps.

    Despite the issues, senior executives additionally really feel markedly extra assured in regards to the resilience of the economic system over the following six months (73 per cent) than they did in February (60 per cent), when KPMG surveyed 500 CEOs for its CEO Outlook Pulse survey. Further, 71 per cent of leaders are assured in regards to the international economic system’s progress prospects over the following three years (up from 60 per cent in early 2022) and practically 9 in 10 (85 per cent) are assured about their organisation’s progress over the following three years. FE

  • Eyeing profitability: GIC Re appoints KPMG for overhaul

    State-owned listed reinsurer GIC Re has appointed worldwide guide KPMG to modernise its human assets (HR) and lay out digital methods for growing its expertise pool and manpower for quicker enterprise progress globally.

    On the opposite hand, indicating the potential for a future merger, 4 common insurers — New India Assurance, United India Insurance, National Insurance and Oriental Insurance — have determined to nominate a standard guide. GIC Re, one of many high 15 world reinsurers and third-largest Asian Reinsurer, is presently enterprise main revamp of its enterprise portfolios to offer main give attention to profitability. Of the 2 shortlisted consultants, PwC and KPMG, the latter was chosen on the idea of the general eligibility standards. KPMG will act as a guide of GIC Re for designing, implementing and supporting HR processes together with digital transformation. “Since we operate globally, we want to have an HR system that is more aligned to the global standards and help our business to grow. We are adopting global best practices in risk assessment and we would continue to pursue that path for up-skilling of our manpower,” GIC officers stated.

    GIC officers stated restructuring is underway when it comes to enterprise portfolio composition and attaining pricing adequacy on the contract degree.

    GIC Re suffered large underwriting losses within the wake of catastrophic occasions. This had hit the steadiness sheet arduous and ate away the funding earnings. After actualising the state of affairs, GIC Re has restructured completely different segments and curtailed few companies which generate losses, they stated. GIC’s fundamental goal is to take care of the solvency and management underwriting losses thereby enhancing score. It’s bringing underwriting self-discipline by means of threat modelling for satisfactory pricing and interplay with the worldwide experience.

    ExplainedKey targets

    GIC’s fundamental goal is to take care of the solvency and management underwriting losses thereby enhancing score. It’s bringing underwriting self-discipline by means of threat modelling for satisfactory pricing and interplay with the worldwide experience.

    Meanwhile, 4 common insurers have determined to nominate a standard guide for which GIPSA, the coordinating physique for the PSU common insurers, has referred to as for Request for Proposal (RFP) to restructure these organisations suitably and streamline their enterprise processes for profitability. As per the RFP, all of the 4 firms are calling for just one guide to put down uniform course of when it comes to human useful resource insurance policies and IT system. “Broadly, 80 per cent of the proposed assignment shall be allocated towards creating unified/common strategies/methodology and frameworks while 20 per cent of the proposed assignment will be allocated towards customising and rolling them out at individual company level,” the RFP stated.

    While the vast majority of the work is centered round a standard method for all of the 4 Insurers, the implementation will occur at particular person firm degree. Years again, these 4 PSU common insurers together with GIC Re had undertaken comparable workout routines however every of them had appointed separate consultants. While Boston Consulting Group (BCG) had bagged three of them, NIA, OIC and UII, PwC obtained the mandate for NIC.

    In FY22, the 4 insurers collectively have procured a complete premium of Rs 75,116 crore with a market share of round 34 per cent. The whole workers’ energy is round 44,743 unfold over 6,759 workplaces.

    Earlier, the federal government had shelved merger plans of three PSU common insurers OIC, NIC and UII in July 2020 after pursuing it over two years.

  • Accounting corporations KPMG and PwC to exit Russia

    Two of the Big Four accounting corporations KPMG and PricewaterhouseCoopers LLP (PwC) on Sunday stated they’ll not have a member agency in Russia because of the nation’s invasion of Ukraine.

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    The auditing and consultancy large KPMG stated its Russia and Belarus agency will depart the KPMG community, a transfer that may have an effect on over 4,500 companions and workers in Russia and Belarus.

    Separately, PwC agreed PwC Russia will depart its community. The agency has operated in Russia for greater than 30 years, and has 3,700 companions and workers there, it stated.

    “As a result of the Russian government’s invasion of Ukraine we have decided that, under the circumstances, PwC should not have a member firm in Russia and consequently PwC Russia will leave the Network,” PwC stated.

    Sanctions imposed by the U.Okay., EU and the U.S. on Russia are forcing corporations globally to think about whether or not they need to proceed working with Russian shoppers who’re state-owned.

    Earlier Sunday, Britain stated it’ll search to hurry up its sanctions course of on Monday through new laws designed to permit ministers to tighten restrictions on Russian companies and rich people.

  • BCCI to rope in KPMG for media rights bid course of

    The BCCI has employed accounting agency KPMG to recommendation them on the IPL media rights. It is learnt that this has been determined by Board secretary Jay Shah’s workplace.
    The BCCI, in response to an official, expects round Rs 30,000 crore from media rights for the subsequent five-year cycle from 2023-2027, whereas KPMG would information them on tender course of. The present IPL media rights with Star India, TV and digital, is price Rs 16,347.50 crore. The present deal expires subsequent yr.
    The IPL media rights tender is predicted to be put out quickly, though the BCCI for the time being is weighing up choices about whether or not to go for e-auction or select closed bid. The IPL governing council assembly on Sunday is about to make KPMG’s identify official.
    In its press launch after the IPL governing council assembly on September 28, the BCCI had acknowledged: “The IPL Media Rights tender for the cycle 2023-2027 will be released immediately after the appointment of two new IPL teams which is scheduled to be announced on 25th October 2021.”

    CVC to remain
    The BCCI can also be going to debate the report submitted by a committee that had appeared into CVC’s IPL franchise possession competence. The Indian Express understands that the committee has given the go-ahead to Irelia Company Pte. Ltd (CVC) to personal Ahmedabad franchise, one of many two new franchises within the event from subsequent yr onwards. CVC was the second-highest bidder when two new IPL groups had been auctioned in October, successful the rights to personal the Ahmedabad franchise for Rs 5,625 crore. Sanjiv Goenka’s RPSG Group bagged the Lucknow franchise for Rs 7,090 crore.

    A day after CVC was introduced because the profitable bidder for the Ahmedabad franchise, reviews emerged that it has hyperlinks with betting firms overseas. However, the committee has discovered no purpose to scrap CVC.CVC has two funds and whereas its European fund is linked to betting firms, the place sports activities betting is authorized, its Asian fund is claimed to be “clean”. The firm has invested into the IPL franchise possession from its Asian fund.

  • India’s on-line informal gaming section may attain Rs 169 billion over FY21-25: KPMG

    The on-line informal gaming section in India had an estimated worth of Rs 60 billion in FY21 and is projected to develop at a CAGR (Compound Annual Growth Rate) of 21 per cent over FY21-FY25 to achieve a measurement of Rs 169 billion, reveals KPMG’s ‘Beyond the tipping level – A primer on Casual gaming in India‘ report.
    The report additionally mentions that the web gaming section in India was estimated at Rs 136 billion in FY21 and is projected to develop at a CAGR of 21 per cent over FY21-FY25 to achieve a measurement of Rs 290 billion.
    The on-line informal gaming sub-segment accounts for roughly 44 per cent of the entire on-line gaming revenues. In phrases of customers, the web informal gaming sub-segment, at 420 million players in FY21 accounted for about 97 per cent of the entire players in India and is anticipated to keep up this share by FY25 going forward, provides the report.
    Key development components
    The key development components for the rise of the informal gaming sub-segment can quantity to various components. These embody macro components like rising smartphone and web penetration in India. As increasingly more individuals begin utilizing the web on cell units like their telephones and adopting digital alternate options, the gaming section continues to achieve increasingly more individuals.

    The report additionally reveals that the COVID-19 induced lockdown in 2020 was additionally a tipping level by way of on-line informal gaming consumption, attracting extra smartphone customers to video games.
    Challenges alongside the best way
    The report additionally mentions a couple of challenges the web gaming trade confronted via 2020. The low common income per paying consumer of on-line informal gaming in India is about $2 amongst the world’s lowest.
    This is because of the truth that India has the second-largest base of on-line informal players on the earth. This is owing to the considerably decrease penetration of consoles just like the Sony PlayStation or the Xbox sequence in India, which traditionally have instilled a tradition of paying for video games.

    Consumers may spend extra shifting ahead
    As Indians are regularly taking gaming extra significantly and as gaming turns into accessible to a wider viewers, client spends might go up within the years to come back. The report means that this spends might be led by in-app purchases, that supply gamers extra options, an ad-free expertise or unlockables like skins.