CBI arrests Two Income Tax Officers in a Bribery Case

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The Central Bureau of Investigation ( CBI ) has arrested two Income Tax Officers posted in Ward 7(1)(4) and Ward 7(1)(3) at Koramangala, Bangalore in a bribery case of Rs.14 lakh.
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A case was registered under section 120 B of IPC and 7 of PC Act, 1988 (as amended in 2018) on 03.04.2019 against an Income Tax Officer, Ward 7(1)(4), and another Income-Tax Officer, Ward 7 (1)(3), Koramangala, Bangalore on a complaint received from a Managing Director of a private company. It was alleged that the accused persons had demanded illegal gratification of Rs.14,00,000/- from the complainant for showing official favour in the matter of settling the issue pertaining to Income-Tax survey conducted at the office premises of the complainant on 06.03.2019 and had asked to deliver the above amount on the evening of 03.04.2019.
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CBI laid a trap and caught the Income Tax Officer, posted in Ward 7 (1)(4), Koramangala, Bangalore red-handed while accepting the bribe of Rs.14,00,000/- from the complainant for himself and for another Income Tax Officer. Searches were carried out at the residential and official premises of both the accused. Cash of Rs. 1.65 crore (approx.) and USD 1450 were recovered from the premises and locker of the Income Tax Officer posted in Ward 7(1)(4). Further, several incriminating documents relating to the case, property, investments and mobile phones, pen drives, etc. have been recovered during searches. During the investigation, the other Income Tax Officer posted in Ward 7(1)(3) was also arrested.
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The arrested accused are being produced today before the Competent Court at Bangalore

IT Dept unearths TDS Scam involving 3200 Crores: Mumbai based Companies and Individuals under Scanner

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The income tax department has unearthed a Rs 3,200 crore scam where 447 companies deducted tax from its employees but did not deposit with the government and diverted to further their business interests. In relation with this, proceedings have been initiated by the TDS wing of the income tax department against some entities and individuals in Mumbai. Warrant has been issued in some cases.
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Reportedly, according to an investigation between April 2017 and March 2018, 447 companies deducted tax from its employees but did not deposit the amount and diverted it to further their own business interests.
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As per the Income Tax Act, such offences would attract a minimum punishment of three months to a maximum of seven years of rigorous imprisonment plus fine. Prosecution is initiated under Section 276-B.
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However, sources in the I-T Deparment claims, “It is not a scam — but a very common verification survey details. Every year, its done. Quantum may vary from year to year. This is just like an employer deducts TDS on salary but does not deposit on time.”
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I-T has initiated recovery actions by attaching bank accounts besides movable and immovable assets, a source said. “In several of the cases, they diverted the money towards working capital. Some apologised and promised to pay while some said they could not pay because of adverse market conditions.
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In some cases, of the amount collected from the employees, 50% was deposited with the government and the balance misused by the employer,’’ an official explained.

Satyam case: Sebi bans PwC entities from auditing listed firms for two years

The order comes nine years after the scam at Satyam Computer Services came to light and after two failed attempts by PwC to settle the case through the consent mechanism.

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The order comes nine years after the scam at Satyam Computer Services came to light and after two failed attempts by PwC to settle the case through the consent mechanism.
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Finding PwC guilty in the Satyam scam, India’s capital markets regulator on Wednesday barred its network entities from issuing audit certificates to any listed company in India for two years.
SEBI also ordered the disgorgement of over Rs13 crore of wrongful gains from the auditing firm and its two erstwhile partners who worked on the IT company’s accounts. The order comes nine years after the scam at Satyam Computer Services came to light and after two failed attempts by PwC to settle the case through the consent mechanism.
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A 108-page order imposes a two-year ban on entities/ firms practicing as chartered accountants in India under the brand and banner of PW from directly or indirectly issuing any certificate of the audit of listed companies, compliance of obligations of listed companies and intermediaries registered with the regulator.
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Sebi noted that the order would not impact audit assignments relating to the fiscal year 2017-18 undertaken by the firms forming part of the PwC network. Besides, Price Waterhouse Bangalore and its two erstwhile partners—S. Gopalakrishnan and Srinivas Talluri—have been directed to jointly and severally disgorge the wrongful gains of “Rs13,09,01,664 with interest calculated at the rate of 12 per cent per annum from January 7, 2009 till the date of payment”. They have to pay the amount within 45 days.
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Further, Gopalakrishnan and Talluri have been restrained from directly or indirectly issuing any certificate of audit of listed companies, compliance of obligations of listed companies and intermediaries registered with Sebi for three years.
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After consent pleas were rejected, PwC had approached the Supreme Court challenging Sebi’s jurisdiction over auditors. The apex court had asked the regulator to expeditiously pass the order in the matter after giving due opportunity, including access to documents, to the parties concerned.
Sebi said the objective of insulating the securities market from such fraudulent accounting practices perpetrated by an international firm of repute will be ineffective if the directions do not bring within its sweep the brand name PwC. The network structure of operations adopted by the international accounting firm should not be used as a shield to avoid legal implications arising out of the certifications issued under the brand name of the network, the order said.
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“As we have said since 2009, there has been no intentional wrong doing by PW firms in the unprecedented management perpetrated fraud at Satyam, nor have we seen any material evidence to the contrary. We believe that the order is also not in line with the directions of the Bombay High Court order of 2011 and so we are confident of getting a stay before this order becomes effective,” PwC said in the statement.
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It also noted that the order relates to a fraud that took place nearly a decade ago in which it played no part and had no knowledge of. Further, the statement said that Price Waterhouse Network firms in India has learnt the lessons of Satyam and invested heavily over the last nine years in building a robust and high quality audit practice.

Actress Katrina Kaif wins a Tax Case from ITAT [Read Order]

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Mumbai bench of the Income Tax Appellate Tribunal, on Wednesday deleted income tax additions made against famous Bollywood actress Katrina Kaif under section 153 of the Income Tax Act.

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In the year 2011, a search conducted on the premises of the residence of the assessee resulted in recovery of certain documents on the basis of which, the department made some addition on account of undisclosed income arising out of appearance fee in ICC Awards function, unexplained expenditure etc.

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With regard to the allegation of appearance fee in ICC Awards function, assessee explained that she has neither appeared as a host in the said event nor received any cash from Matrix.

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The bench noted that apart from the seized document which is, according to the assessee, is a mere quotaion, there was no other evidence before the Assessing Officer to indicate that the assessee has received cash amount in question. Also, an Affidavit was also filed on behalf of Matrix categorically stating that no such cash payment of ` 2,50,000 was made to the assessee.

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Further, the passport submitted by the assessee clearly established the fact that neither she had travelled to Sidney in relevant period nor hosted the ICC event for which she was supposed to receive cash payment.

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While concluding, the bench observed that addition cannot be made simply relying upon a untested / unverified document and without any other corroborative evidence to demonstrate that the assessee has actually received cash payment for hosting an event in Sidney.

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DOWNLOAD the full text of the Order below.

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DOWNLOAD NOW

Open Letter to AAJ TAK on its sting Operation on 2 CAs

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Background :- On 14th Nov Aaj Tak conducted on two renowned Chartered Accountants, who are willing to convert Black money into white after taking 30-40% commission on this Issue a CA, Shaifaly Girdharwal wrote open letter to AAJ TAK  seeking apology for derogatory addressal  of CA Community.

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Here below is the complete open letter to AAJ TAK news channel :

Dear Aaj Tak Team,

You did a great job by conducting a successful sting operation of some CA’s converting the black money to white. But the painful thing was the word CA used so many times in a way as if the entire CA community is engaged in this black to white transaction. Let me make it clear when you use word CA , it means every CA. You can’t accuse every CA of money laundering. I am also a CA and I challenge you to prove that even a small percentage of CA’s are engaged in this kind of transaction. I would like to condemn this approach. How one or two or ten CA’s can represent the entire CA community? We spend half of our life in studies and analysing the provisions for its proper implementation. No change in any statute can survive without our support. CA is the name of proven integrity. In September every year when other people start shopping for Diwali we spend our entire night in office to complete the filing work of our clients as per the requirement of the Law.

Two of the ministers Mr. Suresh Prabhu and Mr. Piyush Goyal belong to CA community as you can vouch their efficiency in their respective ministries. Just because one or two or may be 10-20 are engaged in conversion of black money to white you have no rights to blame our entire community. I hereby seek your apology to entire CA community. Some of your media person also takes bribe. Greed, bribe are personal choices of any person. It is utterly wrong to connect it to their caste, creed, religion and profession. It is an insult to all hard working CA’s.

No corporate can work without the guidance and support of a CA. Even when government seek compliance of their statutes they also rely on the signature.

Do you know we are the only institution having such a strict code of conduct and our respected institute ICAI itself remove the members engaged in any misconduct?

Do you know we can’t even advertise or solicit any business?

Do you know when a CA resigns from any company; other member can’t accept that assignment without asking the reason for resignation of existing member?

Chartered Accountant & CA are not only mere words for us. We wear this two letter in our names. This is the respect we earn by hard work when we are students and even when we are qualified. You have no rights to raise finger on the credibility of our community. I would like to strongly ask you to offer an apology for this and rectify your news in a way without highlighting or targeting the word Chartered Accountant or CA.

Hope you will not make this a question of ego and power. But this is your chance to set an example for sincere reporting for yourself and other news media houses.

Revised CA Syllabus by ICAI in simple language

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So most AWAITED changes in CA Course is here and guess what foundation is back  and there are many more changes which I will cover in simple bullet points so here we go, some of the major changes are here

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Revised CA Syllabus by ICAI in simple language

1. No more CPT, CA Foundation is back and will replace CPT.
2. IT and OT will be replaced by ICITSS ( Integrated course on Information Technology and soft Skills)
3. Now you can do Articleship by clearing either group 1 or 2
4. Now foundation will be of 400 Marks ( 200 subjective and 200 objective )
5. Now there will be 8 subjects in IPCC Instead of 7 ( Costing will be of 100 marks alone and FM will be merged with business economic environment to bring a new subject.
6. Now you can attempt final exam only after completion of 3 years of articleship instead of 2.5 years.
7. Most dangerous subject ISCA will now cover only 50 subjects. It will get merged with Financial Market and capital markets.
8. Now it will take  4.5 to 5 years  to complete CA.

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Revised CA Syllabus by ICAI

These are the few Revised CA Syllabus by ICAI in simple language that are upfront, for more changes you can see the official notification regarding Revised CA Syllabus by ICAI here : CLICK HERE

FEMA UPDATES

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RBI today with a view to promoting the ease of reporting of transactions related to Foreign Direct Investment (FDI), under the aegis of the e-Biz project of the Government of India has enabled online filing of the following returns with the Reserve Bank of India viz.

- Advance Remittance Form (ARF) which is used by the companies to report the FDI inflows to RBI;

- FCGPR Form which a company submits to RBI for reporting the issue of eligible instruments to the overseas investor against the above mentioned FDI inflow; and

- FCTRS Form which is submitted to RBI for transfer of securities between resident and person outside India.

At present both the options, i.e. online filing and physical filing of abovementioned forms, are available to the users.

Based on the experience it has been decided that beginning February 8, 2016 the physical filing of forms ARF, FCGPR and FC-TRS will be discontinued and forms submitted in online mode only through e-Biz portal will be accepted.

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Please find below herewith link of the notification for your ready reference.

CLICK HERE

List of benefits announced for start up by prime minister Narendra modi.

Start up India and Stand up india is the terms used by our honourable prime minister mr. Narendra modi while announcing benefits to the start ups in India. On 16th jan,2016 Room was full with energy and passion giving push to the start up in India and spreading energy across india through live webcast of the event.

Here are some key points of PM’s Startup India campaign you must Know

1. Compliance regime based on self-certification. Labour laws – no inspection for 3 years

2. Startup India hub – single-point contact (‘friend, mentor, guide’)

3. Mobile app to be launched on April 1: registration of startup company in one day | Also portal for clearances, approvals and registrations

4. Fast-track mechanism for startup patent applications

5. Panel of legal facilitators for startups to file IP (patents, designs, trademarks) – costs borne by gov

6. 80% rebate on filing of patent applications by startups, as compared to other companies

7. Relaxed norms of public-procurement for startups. No requirement of turnover or experience, but no relaxation of quality

8. Faster exits for startups (Insolvency and Bankruptcy Bill), eg: wind up within 90 days

9. Fund of funds – initial corpus – INR 2,500 crore, later on 10,000 crore

10. Credit guarantee fund for startups

11. Tax exemption on capital gains

12. Tax exemption to startups for 3 years to promote growth

13. Atal Innovation Mission:sector-specific incubators, 500 tinkering labs, pre-incubation training,seed fund for high-growth; PPP model being considered for 35 new incubators; 31 innovation centres at national institutes, 7 new research parks like IIT-M. 5 new bio-clusters

14. Innovation Core Programs for school students in 5 lakh schools

15. Annual Incubator Grand Challenge to create world class incubators in India

16. National and International Startup Festivals to provide visibility

BEWARE OF ONLINE FRAUD EMAILS FOR INCOME TAX REFUNDS

BEWARE OF ONLINE FRAUD EMAILS FOR INCOME TAX REFUNDS USING INCOME TAX EFILLING DOMAIN.

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Dear All,

You may receive a mail from the mail id admin. rf06@incometaxindiaefiling.gov.in or a similar kind of suspicious mail id with the logo of income tax department.

The mail states that you have qualified for a refund of like as Rs. 25882.19 and further states that to receive the refund submit the refund request in the below link. Once you press the link, it asks for bank details. So please alert this type of fraud because first the refund is never in paise and income tax department has all the bank account details of you in which refund will be automatically transferred.

So please check the official site if there is any refund, submit request through the official site not from link. kindly update all your clients about it also.

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Do share with others and make all others aware of it

 

ALL YOU NEED TO KNOW ABOUT FDI IN INDIA

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Definition of Foreign Direct Investment(FDI)

Foreign Direct Investment (or FDI) is an investment made by a company or entity based in one country, into a company or entity based in another country. Further, Foreign direct investments differ from FIIs ( as portfolio flows), wherein foreign institutions invest in equities listed on a nation’s stock exchange . Entities making direct investments typically have a significant influence and control over the company into which the investment is made. Open & emerging economies with skilled workers and good growth prospects attract larger amounts of foreign direct investment. Example India has a sound knowledge of worker and big market for consumption of goods in the world that makes a good place to direct investment in the world.

The investing company can make his investment in the various mode of ways – either by setting up a subsidiary or associate company in the foreign country, by acquiring shares of an overseas company, or through amalgamation / merger or joint venture.

An example of foreign direct investment would be an American company taking a majority stake in a company in India. Another example would be a British company setting up a joint venture to develop a mineral deposit in Srilanka.

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ADVANTAGES OF FOREIGN DIRECT INVESTMENT

The party that makes the investment is also known as parent company and party invested is called foreign affiliate. Followings are the advantages of the FDI:-

1. In today’s completive market there are many industries that require their presence in the international markets to make sure that their sales and business goals will completely meet & their product would easily recognize in the global village.

2. There are also parent enterprise that provides foreign direct investment to obtain additional expertise, products and technology. As a foreign investor, you will get tax incentives that will be very useful in your chosen field of business enterprise.

3. The foreign direct investment has the ability to reduce the disparity between revenues and cost. In this way, most of the foreign country can be sure that the production costs are the same and can easily be sold.

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DISADVANTAGES OF FOREIGN DIRECT INVESTMENT

Even though, the foreign direct investment has excellent advantages, there are also disadvantages that we should take in to consideration.

1. Foreign direct investment is very risky since the political issues in several countries can instantly change due to their strategy for expansion, growth can be effected.

2. Investing in some of the foreign countries is more expensive compared to goods exportation?

3. There are also cases that political changes will lead to expropriation wherein it is a kind of scenario that the government will control your assets and property. Due to there would be impact on your profitability & stability.

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At the end, with foreign direct investment, we will completely realize the significance of global world. Further, we found that most of the business opportunities expanded to massive state and this is one of the reasons why we need to seek out for venture and foreign investors who will help us increase our capital budgets, technical expertise and improve our management practices so that we can crate our presence in the today’s competitive market.

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Hope you got much info About FDI keep Sharing with your friends !!!

ALL YOU NEED TO KNOW ABOUT MUDRA | DEFINITION | OBJECTIVES

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MICRO UNITS DEVELOPMENT AND REFINANCE AGENCY LTD (MUDRA)

Mudra was announced by the Finance Minister in his FY 15-16 Budget . On 8 April 2015, the pleasure moment came when The Prime Minister launched the Micro Units Development and Refinance Agency Ltd (MUDRA) with a corpus of Rs 20,000 crore and a credit guarantee corpus of Rs 3,000 crore.

As we know In India, most of the citizens especially in rural areas are not getting the benefit of formal banking system. Most of the individuals are still dependent on the local money lenders & the rates of the interest of their loans are very high. Therefore they never utilized the facility of insurance, loans and financials to grow and establish their micro business.

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PRINCIPLES OBJECTIVES OF MUDRA BANK

• Establish proper control for the lender & the borrower so that for the both parties the purpose for the transactions can be meet out.
• Providing finance & Credits to Micro Finance Institutions (MFI) so that they can lend the money to small business, Self-help groups (SHPs) & Individuals who do not have any source for the surviving.
• Implement a performance basis rating in the MFIs to evaluate which MFIs satisfy the meet of the borrower which will create competiveness among the MFIs for the benefit of the borrower.
• Provide a systematic & structured guideline or instructions to the borrower to direct him to follow right step for the business to avoid the business s failure.
• Establish a proper system to monitor the effective & efficient utilization for the distributed capital.
• Make a structure for the providing the benefit of the MUDRA Yojana to the last mile credit delivery system to small and micro businesses

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WHETHER THE MUDRA WILL BE SUCCESSFUL IN INDIA?

Yes it will definitely succeed. As we aware that majority of the Indians is poor and live in the rural areas. Most of them are not getting the basic facilities which are required for the living standards. Many people do not have employment so these are left to their own creativity to feed themselves and survive with no any experience, training & education. Now think if these enterprises provide some guidance, support, trainings & financial assistance, the potential to get an immediate jump in not only in GDP but also the poor citizen lives in the rural areas will live his life be an independent, employed & prosperity . At last, we can say MUDRA bank is in place for the benefit of the needy person for the survive. Hope you got much Idea about Mudra .

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Keep share views about Mudra below in comments.

TOP 10 SCAMS IN INDIA YOU MUST KNOW ABOUT

Scams in India

Hello Readers of CA Groups, Being finance and accounting professionals we all should know about the following facts. It is about Top 10 Scams in India You must Know About, that has affected the Indian economy. Must Read and share….. .

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1) INDIAN COAL ALLOCATION SCAM -YEAR: 2012 -SIZE: RS. 1.86L CRORE

This scam is in regards to Indian Government’s allocation of nation’s coal deposit to PSU’s and private companies. The scam happened under Manmohan Singh government and came out in 2012. The basic premise of this scam was that wrongful allocation of Coal deposits by Government without resorting to competitive bidding, which would have made huge amounts to the Government (to tune of 1.86 Lakh crore).

2) THE FODDER SCAM - YEAR: 1990S -SIZE: RS. 1,000 CRORE

Known as Bihar’s fodder scam of 1996, also recognized by the name of “Chara Ghotala,” as it is popularly known in the vernacular language. In this corruption scandal worth Rs.1000 crore, an unholy nexus was traced involved in fabrication of “vast herds of fictitious livestock” for which fodder, medicine and animal husbandry equipment was supposedly procured.

3) THE HAWALA SCANDAL -YEAR: 1990-91 – SIZE: RS. 100 CRORE

It involved payments allegedly received by country’s leading politicians through hawala brokers. From the list of those accused also included Lal Krishna Advani who was then the Leader of Opposition. Thus, for the first time in Indian politics, it gave a feeling of open loot all around the public, involving all the major political players being accused of having accepted bribes and also alleged connections about payments being channeled to Hizbul Mujahedeen militants in Kashmir.

4) COMMONWEALTH GAMES SCAM -YEAR: 2010 -SIZE: RS. 70,000 CRORE

Another feather in the cap of Indian scandal list is Commonwealth Games loot. It is estimated that out of Rs. 70000 crore spent on the Games , only half the said amount was spent on Indian sportspersons. The Central Vigilance Commission, involved in probing the alleged corruption in various Commonwealth Games-related projects, has found discrepancies in tenders – like payment to non-existent parties, will-ful delays in execution of contracts, over- inflated price and bungling in purchase of equipment through tendering – and misappropriation of funds.

5) BOFORS SCAM -YEAR: 1980S & 90S -SIZE: RS. 100 TO 200 CRORE

The Bofors scam was a major corruption scandal in India in the 1980s; when the then PM Rajiv Gandhi and several others including a powerful NRI family named the Hindujas, were accused of receiving kickbacks from Bofors AB for winning a bid to supply India’s 155 mm field howitzer. The Swedish State Radio had broadcast a startling report about an undercover operation carried out by Bofors, Sweden’s biggest arms manufacturer, whereby $16 million were allegedly paid to members of PM Rajiv Gandhi’s Congress. Most of all, the Bofors scam had a strong emotional appeal because it was a scam related to the defense services and India’s security interests.

6) HARSHAD MEHTA & KETAN PAREKH STOCK MARKET SCAM - YEAR: 1992 -SIZE: RS. 5000 CRORE (COMBINED)

Although not corruption scams, these have affected many people. There is no way that the investor community could forget the unfortunate Rs. 4000 crore Harshad Mehta scam and over Rs. 1000 crore Ketan Parekh scam which eroded the shareholders wealth in form of big market jolt.

7) 2G SPECTRUM SCAM - YEAR: 2008 -SIZE: RS. 1.76 L CRORE

It involved the process of allocating unified access service licenses. At the heart of this Rs.1.76-lakh crore worth of scam is the former Telecom minister A Raja – who according to the CAG, has evaded norms at every level as he carried out the dubious 2G license awards in 2008 at a throw-away price which were pegged at 2001 prices. In some respects, this remains the biggest scam in India if you consider the inflation. The 2G spectrum allocation happened 5 years earlier than Coal Scam which came out in 2012. The cases are still going on against many people including A. Raja, M. K. Kanimozhi and many telecommunication companies as well.

8) WAKF BOARD LAND SCAM -YEAR: 2012 - SIZE: RS. 1.5-2L CRORE

In March of 2012, Anwar Maniapddy, the chairman of Karnataka State Minorities Commission submitted a sensational report which alleged 27,000 acres of land, which was controlled by Karnataka Wakf Board had been allocated illegally or misappropriated. The value of land which was misappropriated was in tune of 1.5 to 2 lakh crore rupees. The land managed by Wakf board, a Muslim charitable trust, is typically donated to under-privileged and poor people of Muslim community. However, the report alleged that nearly 50 percent of the land owned by Wakf board was misappropriated by Politicians and Board members in conjunction with real estate mafia at fraction of actual land cost.

9) TELGI SCAM -YEAR: 2002 – SIZE: RS. 20,000 CRORE

Abdul Karim Telgi had mastered the art of forgery in printing duplicate stamp papers and sold them to banks and other institutions. The tentacles of the fake stamp and stamp paper case had penetrated 12 states and was estimated at a whooping Rs. 20000 crore plus. The Telgi clearly had a lot of support from government departments that were responsible for the production and sale of high security stamps.

10) SATYAM SCAM -YEAR: 2009 – SIZE: RS. 14,000 CRORE

Satyam is the biggest fraud in the corporate history to the tune of Rs. 14000 crore. The company’s disgraced former chairman Ramalinga Raju kept everyone in the dark for a decade by fudging the books of accounts for several years and inflating revenues and profit figures of Satyam. Finally, the company was taken over by the Tech Mahindra which has done wonderfully well to revive the brand Satyam.

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SO CAN WE LIVE IN A SCAM-FREE LIFE IN INDIA? Must Comment your Views …

Regards

CA GROUPS

KNOW THE CREDIT SCORES THROUGH CIBIL

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What is CIBIL?

Credit Information Bureau Limited is India’s first Credit Information Company, founded in August 2000, with its headquarters in Mumbai Maharashtra. It collects and maintains the records of the customers pertaining to their payments related to loans and credit cards. This information is submitted to CIBIL by various member banks and financial institutions by the way of monthly reports. By the help of this record, a credit score of a person is generated. This score, popularly known as CIBIL score is the evaluation of credit worthiness of a person. By the way of data available with it, a report known as Credit Information Report (CIR) is prepared by CIBIL which contains the details regarding all the loans of a person and the details of its repayments. CIBIL score is also a part of such report and finds its place on the very first page of the report.

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Uses of CIR

Credit Information report (CIR), also known as CIBIL report holds a lot of relevance and have now become a very useful tool for lenders in their decision making regarding whether or not to give a loan and the extent to which a loan can be given to a person based on its CIBIL score. Where CIBIL score is a parameter for judging the credit worthiness of a person, the CIR is a detailed description of the various past and present loans, whether running or closed and contains the following details-

1. Name of the Person
2. CIBIL score
3. Running loans from the member Institutions
4. Type of loan
5. Ownership, whether single or joint
6. Amount of loan taken
7. Balance unpaid
8. EMI of the loan
9. Details of EMI payments regarding time lags, if any
10. Whether the loan is closed or not
11. Details of the credit cards running
12. Credit limit of the card
13. Balance Amount Left that can be utilised
14. Whether or not closed

The report may or may not contain the name of the financial institution. Also, the delayed past due status may also be either in number of days or if not disclosed, it may be undisclosed. If the same is undisclosed it is shown by the way of (XXX) sign . Lending institution can hence make effective use of the information so available through CIBIL report and make a decision as to whether or not to sanction a loan.

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CIBIL Score

CIBIL TransUnion Score or a CIBIL score is a 3-digit number ranging from 300 to 900. It is the score for the credit worthiness of a person. In a nut-shell, higher the score, better it is. We can say that a person with a high CIBIL score is more likely to repay the EMI and be regular in his EMIs as compared to the person with a lower CIBIL score. Also, a person with a higher CIBIL score is likely to get the loans easily as compared to the one with a lower CIBIL score. Now big question that arises is that what will be the CIBIL score of a person who has had no credit history at all? What about a person who has neither taken a loan nor a credit card ? What about his CIBIL score? The CIBIL score of such person is (-1). Now, here CIBIL score is negative. This doesn’t mean that the person’s Credit worthiness is very bad, but it means that there is no available credit history of that person. As mentioned earlier, CIBIL score of the people with credit history would range between 300 and 900

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Tips for higher CIBIL Score

Now, since we know how important the CIR and CIBIL score is for the purpose of obtaining a loan, here are a few quick tricks to maintain a good CIBIL score.

1. Pay your EMI on time and ensure that your CIR does not show any delayed Past due (DPD)
2. Use your credit card wisely and pay on time
3. Avoid a lot of consumer loans, eg. Loan for buying a mobile phone. This will adversely affect your CIBIL score
4. Maintain a mix of Secured and unsecured loans. Secured loans, like a home loan has a positive impact on your CIBIL score whereas an unsecured loan such as an auto loan has a negative impact. Therefore restrict the composition of the unsecured loans to a maximum of 20% of your total loans.