Salary & Pension hike, NGO’s Tax Penalty, Easing PAN for NRs – Weekly Digest #3

In the aftermath of Brexit, currencies took a harsh impact. Pound crashed to a 31 year low, stocks of European banks saw a fall of over 10%. Asian markets were relatively more resilient o the impact.
Tata Advanced Systems is tying up with Bell Helicopter to compete against Mahindra-Airbus combination in $2 billion worth contract. Tata seeks to remain the leader in the Indian Defence Aviation industry.

KP Singh and family to sell 40% stake in DLF Cyber City developers for Rs 12,000-13,000 crores and will use this fund to eliminate all the debts of DLF Ltd.
German audio products company Sennheiser are looking to open stores in India alongside carrying the functions of manufacturing and assembling.
India jumped from 54th rank to 35th rank in Global Logistics ratings, as issued by the World Bank.
CBDT has abolished higher rates for non-resident investors not providing PAN. Earlier this rate was 20%

The Government accepted the recommendations of the 7th Pay Commission, hiking the salaries and pensions of over one crore employees and retirees. Extra payout of Rs 1 lakh crore annually was approved.
Union Home Ministry has asked the NGOs to file their income tax returns or else they could be facing a Rs 10 lakh fine. Currently out of 29lakh registered NGOs, less than 10% furnish their annual returns.
As per Bharti Airtel’s chairman, Sunil Mittal, there will be a massive erosion of tariffs upon entering of Mukesh Ambani’s Reliance Jio in the telecom industry. He expects to see just four players in two years in the industry.
Indian corporates are backing Indian contingent for the Rio Olympics 2016 as Indian Olympics Association has already raised Rs 10 crore by the way of sponsorship. It further expects to raise Rs 5-10 crores.

ICICI bank has invoked the strategic debt reconstruction clause for Jaiprakash Associates Ltd. This could lead to the lenders cumulatively taking over the company.
Flipkart to merge its departments with an aim of cutting the cost. Other measures include minimal hiring and centralised purchases. This can save them up to 30& of the total costs.
Larsen & Turbo have been awarded the largest order for military equipment to the private sector by India.The order is for 100 mobile artillery guns, valued at Rs 4500 crores.
As per Swiss National Bank’s data, there has been a decline in Indian deposits up to 32%, indicating the effectiveness of efforts against black money.

Mahanagar Gas,promoted by GAIL, made a remarkable debut in the stock market. The share price reached Rs 540, as against the issue price of Rs 421, registering a premium of almost 30%
World Bank’s chief, Jim Yong Kim, said in a statement that India has recovered relatively well from the after-effects of Brexit.
India amends its tax treaty with Cyprus, allowing India to tax the profits made on the sale of investments in the country.
SBI sold its 5% stake in NSE to Mauritius-based Veracity Investments Ltd for Rs 911 crores.

Source: The Economic Times.