« Top Headlines » Open DEMAT Account in 24 hrs  The Government of India has strengthened MSME protection through strict payment rules, ensuring that Micro & Small Enterprises receive timely payments from buyers. Under the MSME Development Act (MSMED Act), 2006, buyers must make payments within:  ITR Refund Delays in India: Why They Happen & How to FastTrack Your Refund in 2025  ITR Refund Delay: From Bank Errors To Department Checks, 5 Big Reasons Your Refund Gets Stuck  Income Tax Slabs 2025: New Vs Old Regime; Which One Is Better For You For FY2025-26?  Seamless Integration: How Tally Prime Connects Businesses to the Digital Economy  Govt to notify new ITR forms, Income Tax Act 2025 rules by January 2026: CBDT chief  Digital Efficiency for MSMEs: The Tally Prime Advantage  5 Ways Tally Prime Reduces Cost and Boosts Productivity for Startups  Result of the Information Systems Audit [ISA] Assessment Test held on 8th November 2025 is likely to be declared on late evening (around 9 pm) of 16th November 2025.  Income Tax: What is revised I-T return which you can file till the end of the calendar year?  Creating Vouchers Directly from Bank Statements in Tally Prime A Complete Step-by-Step Guide «  Govt rejects States' demand for greater service tax share... Taxman hopes to recover Rs 11.7k cr arrears in FY07... » New a/c norm for staff benefit provisions spooks banks August, 18th 2006 Banks have sought the Reserve Bank of Indias (RBI) intervention for ensuring forbearance in adhering to the new accounting standard for making provisions for employee retirement benefits. The government is expected to notify in a month the revised accounting standard-15 (AS-15) for making provisions for employee retirement benefits by all large and medium companies. It will entail the need for making such provisions on the basis of acturial assumptions. Shortfalls in provisioning in past years based on acturial calculations will have to be fully adjusted in the current year (2006-07) against the opening balance of revenue reserves and surplus. As for banks, revenue reserves and surplus are considered for calculation of tier-I capital for capital adequacy purposes. The deduction of the entire shortfall from reserves and surplus will lead to a reduction in the core capital of banks and, ultimately, in their capital adequacy ratios. The Indian Banks Association (IBA) has written to the central bank urging it to take up the issue with the Institute of Chartered Accountants of India (ICAI) on a priority basis before the government notifies the accounting standard as required under the Companies Act, 1956. Kamlesh Vikamsey, former ICAI president, said, Public sector banks have already started making provisions for post-retirement benefits in the current financial year according to the revised standard. So, the issue relates to past provisions. When the revised norms are applied, banks will have to shell out more for past provisions. The revised standard prescribes that adjustment for difference should be made in one go. This amount will be charged to reserves and surplus, and that is a huge burden for public sector banks, which are a large workforce with pension facility. The IBA said, Banks are required to have a minimum capital adequacy ratio of 9 per cent. If the reserves get depleted on account of the proposed limited revision to AS-15, it will seriously impair capital adequacy ratios of banks. The impact will be more serious with banks implementing Basel-II norms by March 31, 2007. As pension is a long-term liability and is not vested in the employee unless he/ she puts in the required number of years of service, and as the quantum of pension is dependent on other factors, it is considered appropriate for a bank to provide for the liability during the working life of the employee, it stressed. With regard to the undue strain that the adoption of AS-15 in its present form will place on capital adequacy of banks, the IBA has suggested that banks should have the option to amortise the increase in liability over a period equal to the working life of the employee or at least over a period of five years from the date of adoption of the standard as was permitted by the international accounting standard-19 (IAS-19). The revision to AS-15 mandates that the difference between the transitional liability and the liability that would have been recognised at the same date as per the method of valuation hitherto followed should be adjusted immediately against the opening balance of revenue reserves and surplus.