• PRESS INFORMATION BUREAU

PIB Dated 11.12.2008 - Amendments to the Disability Laws

The Government has taken various steps like holding consultation meetings towards amending the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995. The suggestions received during the consultation meetings as well as provisions of the UN Convention on the Rights of Persons with Disabilities (UNCRPD) are being considered for amendment of the Act.

PIB Dated 12.12.2008- Agreement with Permanent Court of Arbitration to open its regional facility in India

The Government has signed an agreement with Permanent Court of Arbitration (PCA), the Hague to open its regional facility in New Delhi in India. The establishment of the Regional Facility would be beneficial to India as it would provide a forum for international arbitrations concerning disputes arising in the region, both in disputes between two States and in disputes between a State and non-State entity, such as foreign companies which have made investments in the region. Besides, the costs of international arbitration will be reduced which would also encourage more frequent recourse to arbitration as a means of settling disputes. It would also enable more legal experts from India to participate in arbitrations conducted under the auspices of the Regional Facility and to acquire expertise in this field which would also have beneficial effect on domestic arbitration.

PIB Dated 12.12.2008- Indian Succession Act - Proposal to omit of section 213

The Law Commission of India in its 209th Report (July 2008) on "Proposal for omission of section 213 from the Indian Succession Act, 1925" has recommended repealing of section 213 from the statute as there is discrimination in respect of wills made by Hindus, Buddhists, Sikhs, Jainas or Parsis, where the will is made within the territories of the ordinary original civil jurisdiction of the High Courts of Judicature at Calcutta, Madras and Bombay and where such wills are made outside those territories, in so far as they relate to immovable properties situated within those territories. Therefore, the Commission is of the opinion that section 213 of the Indian Succession Act, 1925 is liable to be struck down as being violative of Article 15 of the Constitution of India and has, accordingly, recommended to repeal section of 213.

PIB Dated 15.12.2008- Appointment of Judges to Higher Judiciary

The Government had introduced the Judges (Inquiry) bill, 2006 in the Parliament to set up a National Judicial Council to examine the complaints against the Judges for misbehaviour and incapacity and also to draw up a code of conduct. The said Bill was examined by the Department Related Parliamentary Standing Committee and its Report was examined. It has now been decided to withdraw this Bill of 2006 and introduce another Bill titled The Judges (Inquiry) Amendment Bill, 2008.

• RESERVE BANK OF INDIA

A. P. (DIR Series) Circular No. 40 Dated 10.12.2008 - Foreign Exchange Management Act, 1999 - Foreign Travel - Mode of payment in Rupees

RBI has decided that with a view to provide flexibility in the mode of payment against sale of foreign exchange, in addition to the payment by Rupees / through crossed cheque / Banker's cheque / Pay order / Demand draft, Authorised Dealers Category I & II and FFMCs may also accept the payments made by the traveller through debit cards / credit cards / prepaid cards for travel abroad (for private visit or for any other purpose) provided (i) KYC / AML guidelines are complied with, (ii) sale of foreign currency / issue of foreign currency travellers' cheques is within the limits (credit / prepaid cards) prescribed by the bank and (iii) the purchaser of foreign currency / foreign currency travellers' cheque and the credit / debit / prepaid card holder is one and the same person.

RBI DBOD Circular No. DBOD.Dir.(Exp).BC.No. 101 /04.02.01/2008-09 Dated 16.12.2008 - Rupee Export Credit Interest Rates

The Government of India has decided to extend Interest Subvention of 2 percentage points w.e.f. December 1, 2008 till March 31, 2009 on pre and post shipment rupee export credit, for certain employment oriented export sectors like Textiles (including Handloom), Handicrafts, Carpets, Leather, Gems and Jewellery, Marine Products, and Small & Medium Enterprises. Banks will now charge interest rate not exceeding BPLR minus 4.5 percentage points on pre-shipment credit up to 270 days and post-shipment credit up to 180 days on the outstanding amount for the period December 1, 2008 to March 31, 2009 to the above mentioned sectors.

• DIRECT TAXATION

CBDT Notification No. 107/2008 Dated 11.12.2008 -Income-tax (Tenth Amendment) Rules, 2008

The Central Board of Direct Taxes has introduced Income -tax (Tenth Amendment) Rules, 2008 to amend the Income -tax Rules, 1962 and it shall come into force with effect from 1st April, 2009. As per the amendment, in the Income -tax Rules, 1962, after rule 5E, Rule 5F has been inserted wherein for the purposes of clause ( iia ) of sub-section (1) of section 35, the prescribed authority shall be the Chief Commissioner of Income -tax having jurisdiction over the applicant. Further, in the Income -tax Rules, 1962, in Appendix II, after Form 3CF-II, "FORM NO. 3CF-III has been inserted.

CBDT Circular No. 11/2008 Dated 19.12.2008 -Definition of 'Charitable Purpose' Under Section 2(15) of The Income-Tax Act, 1961

Section 2(15) of the Income Tax Act, 1961 ('Act') defines "charitable purpose" to include relief of the poor, education, medical relief, and the advancement of any other object of general public utility. Section 2(15) was amended vide Finance Act, 2008 by adding a proviso wherein tax exemption is extended to only entities whose purpose is 'advancement of any other object of general public utility'. Hence, such entities will not be eligible for exemption under section 11 or under section 10(23C) of the Act if they carry on commercial activities.

CBDT Notification No. 111/2008 Dated 23.12.2008 - Income-Tax (Eleventh Amendment) Rules, 2008

The Central Board of Direct Taxes has amended Income -tax Rules, 1962 vide Income -tax (Eleventh Amendment) Rules, 2008 , which shall come into force from the date of its  publication in the Official Gazette. It substitutes Director of Income-tax (Central Information Branch) for Commissioner of Income-tax (Central Information Branch) where they occur, in rule 114E and Form No. 61A

• DIRECTORATE GENERAL OF FOREIGN TRADE

DGFT Policy Circular No. 49(RE-08)/2004-2009 Dated 22.12.2008 - Notification No. 63 (RE-2008) dated 21.11.2008 and No. 64 (RE- 2008) dated 24.11.2008 - transitional arrangements thereunder

DGFT clarifies that vide Notification No. 63 dated 21.11.2008 and No. 64 dated 24.11.2008, import of certain items have been restricted. However, vide these notifications, transitional arrangements available under Para 1.5 of FTP have not been stopped. Thus, the transitional arrangements in respect of items whose import has been restricted vide the said Notifications shall continue. Similarly, where the shipment has been made prior to the date of issue of these Notification(s), as per Para 9.11A of HBP- vI, those imports may also be allowed.