ICAI KYC NORMS

December, 12th 2016

ANNOUNCEMENT OF KYC NORMS

All the members of Institute of Chartered Accountants of India (ICAI), who are in

practice, are hereby informed that the Council has formulated the Know Your Client

(KYC) norms at it's 356th Meeting held on 29th, 30th June and 1st July, 2016.

KNOW YOUR CLIENT (KYC) NORMS
The financial services industry globally is required to obtain information of their clients
and comply with KYC norms. Keeping in mind the highest standards of Chartered Accountancy profession in India, the Council of ICAI thought it necessary to issue such norms to be observed by the members of the profession who are in practice. In light of this background, the Council of ICAI approved the following KYC Norms which are mandatory in nature and shall apply in all assignments pertaining to attest functions.

INDIVIDUAL/ PROPRIETOR	GENERAL INFORMATION	ENGAGEMENT INFORMATION	REGULATORY INFORMATION
	NAME	TYPE OF ENGAGEMENT INFORMATION
	PAN/ADHAR
	BUSINESS DESCRIPTION
	COPY OF LAST AUDITED FINANCIAL STATEMENT
CORPORATE ENTITY	GENERAL INFORMATION	ENGAGEMENT INFORMATION	REGULATORY INFORMATION
	NAME & ADRESS OF ENTITY	TYPE OF ENGAGEMENT INFORMATION	COMPANY PAN NO
	BUSINESS DESCRIPTION		COMPANY IDENTIFICAITON NO
	COPY OF LAST AUDITED FINANCIAL STATEMENT		DIRECTOR'S NAME & ADDRESS
	NAME OF PARENT COMPANY IN CASE OF SUBSIDARY		DIRECTOR'S IDENTIFICATION NO
NON -CORPORATE ENTITY	GENERAL INFORMATION	ENGAGEMENT INFORMATION	REGULATORY INFORMATION
	NAME & ADRESS OF ENTITY BUSINESS DESCRIPTION COPY OF LAST AUDITED FINANCIAL STATEMENT NAME OF PARENT COMPANY IN CASE OF SUBSIDARY	TYPE OF ENGAGEMENT INFORMATION	FIRMS PAN NO PARTNER'S NAME & ADDRESS PARTNER'S PAN /ADHAR/DPIN NO

LTCG FOR NRI

Section - 112, Income-tax Act, 1961

 [Tax on long-term capital gains.

112. (1) Where the total income of an assessee includes any income, arising from the transfer of a long-term capital asset, which is chargeable under the head "Capital gains", the tax payable by the assessee on the total income shall be the aggregate of,—

(a) in the case of an individual or a Hindu undivided family, [being a resident,]—

(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been his total income ; and

(ii) the amount of income-tax calculated on such long-term capital gains at the rate of twenty per cent :

Provided that where the total income as reduced by such long-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such long-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such long-term capital gains shall be computed at the rate of twenty per cent ;

                                                                                                                      

(b) in the case of a non-resident (not being a company) or a foreign company,—

(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been its total income ; and

[(ii) the amount of income-tax calculated on long-term capital gains [except where such gain arises from transfer of capital asset referred to in sub-clause (iii)] at the rate of twenty per cent; and

(iii) the amount of income-tax on long-term capital gains arising from the transfer of a capital asset, being unlisted securities, calculated at the rate of ten per cent on the capital gains in respect of such asset as computed without giving effect to the first and second proviso to section 48;]]

Conclusion

Resident Indian and Resident HUF can adjust LTCG against the basic exemption limit.

A Non-Resident Individual or Non-Resident HUF cannot adjust LTCG against the basic exemption limit. Therefore, in the case of NRI even if the taxable income is NIL and he has booked long term capital gain against the capital asset. NRI has to pay LTCG tax at the rate depending on the asset class.