News | Tax

Tax tribunal rules in favour of actor who got Rs 30 lakh as ‘gift’ from father

The Mumbai bench of the Income Tax Appellate Tribunal, comprising accountant member S Rifaur Rahman and judicial member Ravish Sood, has ruled that...

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Income tax return deadline extended again to 31 December 2021

The central board of direct taxes (CBDT) has extended the date to file income tax return (ITR) for FY 2020-21 by three months to December 31, 2021...

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Provident Fund contributions liable to taxation to be segregated into separate account

The Government has issued rules for calculating taxable interest on contribution to provident fund beyond Rs 2.5 lakh per financial year, reports The...

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CBDT omits several forms, redundant rules from Income Tax Act

In an amendment to Income Tax Rules, 1961, the CBDT has dropped 24 rules and over 70 forms to clean up the statutory framework.

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CBDT relaxes e-filing of 15CA/15CB forms to 15 August

The income tax department has granted further relaxation in the electronic filing of forms 15CA and 15CB in view of difficulties reported by...

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Name in Foreign Account Does Not Mean Beneficial Ownership, rules Income Tax Tribunal

Mere mention of a person’s name in the account-opening form of an overseas bank does not mean that such an individual is the beneficial owner...

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TDS to be applicable on buyer-seller transactions above Rs 50 lakh starting 1 July

The Central Board of Direct Taxes (CBDT) clarified that a buyer would need to deduct tax at source at 0.1% of amount exceeding Rs 50 lakh when paid...

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Govt extends deadline to issue Form 16 to 31 July

The deadline to issue Form 16 has been extended to July 31, 2021 from the previous deadline of July 15, 2021, as per a press release issued today by...

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Cash deposits up to Rs 2.50 lakh by Housewife post-demonetisation will not attract tax scrutiny

Cash deposits of up to Rs 2.5 lakh by housewives post demonetisation will not come under I-T scrutiny as the Income Tax Appellate Tribunal (ITAT) has...

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CBDT extends IT-return deadline to 30 Sep from 31 July

The government has extended the due date for filing income tax returns for assessment year 2021-22 by two months, to September 30, 2021 from the...

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Changes in Our Business Model
 
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • The investools will have to be reworked and will offer model portfolios. We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
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Debashis Basu
Founder