Petrol, diesel to be costlier; tax on super-rich, gold imports

Agencies
July 5, 2019

New Delhi, Jul 5: Finance Minister Nirmala Sitharaman on Friday hiked tax on petrol and diesel, raised import duty on gold, levied additional surcharge on super rich and brought a tax on high value cash withdrawals as she sought to spur growth with reduction in corporate tax and sops to housing sector, startups and electric vehicles.

Presenting the maiden budget of Modi 2.0 government in Lok Sabha, Sitharaman, the first full-time woman Finance Minister, proposed measures to ease liquidity crisis facing shadow banking sector (NBFCs) and providing Rs 70,000 crore capital to public sector banks while seeking to raise additional resources through privatisation of some PSUs.

In relief to tax payers, she provided for an additional deduction of Rs 1.5 lakh on interest paid on loans borrowed up to March 31, 2020 on purchase of a house up to Rs 45 lakh.

Corporate tax on companies with turnover of up to Rs 400 crore has been slashed to 25 per cent from current 30 per cent. Presently, the lower tax rate is applicable on companies having a turnover of up to Rs 250 crore.

Sitharaman said the reduced tax rate would cover 99.3 per cent of corporates in the country.

To boost use of electric vehicles, an additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to purchase EVs has been proposed.

Also the government has asked the GST Council to reduce tax rate on EVs from 12 per cent to 5 per cent. Customs duty on certain parts of EVs has been reduced.

Addressing the angel tax issue faced by startups, she said startups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium.

A mechanism of e-verification will be put in place and with this, the funds raised by startups will not require any tax scrutiny.

She raised special additional excise duty and road cess on petrol and diesel by Re 1 per litre each, saying lower crude oil prices provide her with an opportunity to review taxes on the sector.

Also, customs duty on gold and precious metals was raised from 10 per cent to 12.5 per cent to mobilize resources.

Basic customs duty was raised on an array of products including tiles, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV camera.

Excise duty of Rs 5 per 1000 has been imposed on cigarettes of length exceeding 65 mm, while 0.5 per cent duty has been levied on chewing tobacco, zarda and tobacco extracts and essence.

"I propose to levy TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account," she said.

She also announced a surcharge on individuals having taxable income of Rs 2 crore to Rs 5 crore and for those above Rs 5 crore which will hike their effective tax rate by 3 per cent and 7 per cent respectively.

Sitharaman also proposed to made Aadhaar and PAN interchangeable for the purpose of filing Income Tax returns.

To boost FDI inflow into the country, the government will examine further liberalisation of sectoral investment caps in aviation, media, animation and insurance.

The Budget also proposed 100 per cent FDI in insurance intermediaries and easing of local sourcing norms for single brand retail.

She said measures are being worked out to ease filing returns and tax compliance. Taxpayers with an annual turnover of less than Rs 5 crore will have to file only quarterly returns, she said

To boost cash-less economy, she said business establishments with annual turnover of Rs 50 crore will have to use BHIM, UPI, Aadhaar Pay, NEFT, RTGS modes of payments with no charges or merchant discount rates will be imposed on customers or merchants.

RBI and banks will absorb these costs, she said.

The Securities Transaction Tax or STT is proposed to be restricted to the difference between settlement and strike price of options, she said.

She proposed an additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles.

This will lead to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the payer.

She said the government will spend Rs 100 lakh crores for infrastructure in next five years.

The disinvestment target for FY20 was raised to Rs 1.05 lakh crore from Rs 90,000 crore set in the interim budget and government will continue with disinvestment of PSUs in the non-financial space as well.

Regulation of housing finance companies has been moved to the Reserve Bank of India (RBI) from the NHB.

The government proposed to allocate Rs 70,000 crore for PSU Bank recapitalisation.

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News Network
April 9,2024

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The Delhi High Court rejected Chief Minister Arvind Kejriwal's plea challenging his arrest by the Enforcement Directorate (ED) and remand order passed by the trial court in connection with the excise policy case. The court delivered the verdict in the excise policy case on Tuesday.

In its order, the high court said the petition challenged the arrest and said it was in violation of Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA). "The court clarifies that the plea is not for bail but for declaring the arrest illegal," Bar and Bench reported while citing the court order.

The high court said the material collected by the ED “reveals Arvind Kejriwal conspired and was actively involved in use and concealment of proceeds of crime." 

“The ED case also reveals that he was involved in his personal capacity as well as convenor of AAP," the order said.

Kejriwal had earlier questioned the timing of the arrest that came just ahead of the Lok Sabha Elections 2024.  Reacting to this, the court said, “Petitioner has been arrested in money laundering case and court has to examine his arrest and remand as per law irrespective of timing of elections."

Reacting to Kejriwal's argument casting doubt on the statements of “approvers" in the excise policy case, the court said the statements of “Raghav Magunta and Sarath Reddy are approver statements which were recorded under the PMLA as well as Section 164 CrPC".

“To cast doubt on the manner of recording statement of approver would amount to casting aspersions on the court and judge," the order added. “The law of approver is over 100 years old and not one year old. It cannot be suggested that it was enacted to implicate the present petitioner (Kejriwal)," it added.

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News Network
April 15,2024

New Delhi: India is likely to experience above-normal cumulative rainfall in the 2024 monsoon season with La Nina conditions likely to set in by August-September, the IMD has said on Monday.

However, normal cumulative rainfall does not guarantee uniform temporal and spatial distribution of rain across the country, with climate change further increasing the variability of the rain-bearing system.

Climate scientists say the number of rainy days is declining while heavy rain events (more rain over a short period) are increasing, leading to frequent droughts and floods.

Based on data between 1951-2023, India experienced above-normal rainfall in the monsoon season on nine occasions when La Nina followed an El Nino event, India Meteorological Department chief Mrutyunjay Mohapatra told a press conference here.

Positive Indian Ocean Dipole conditions are predicted during the monsoon season. Also, the snow cover in the Northern Hemisphere is low. These conditions are favourable for the Indian southwest monsoon, he said.

Moderate El Nino conditions are prevailing at present. It is predicted to turn neutral by the time monsoon season commences. Thereafter, models suggest, La Lina conditions may set in by August-September, Mohapatra said.

India received "below-average" cumulative rainfall -- 820 mm compared to the long-period average of 868.6 mm -- in 2023, an El Nino year. Before 2023, India recorded "normal" and "above-normal" rainfall in the monsoon season for four years in a row.

El Nino conditions -- periodic warming of surface waters in the central Pacific Ocean -- are associated with weaker monsoon winds and drier conditions in India.

Three large-scale climatic phenomena are considered for forecasting monsoon season rainfall.

The first is El Nino, the second is the Indian Ocean Dipole (IOD), which occurs due to differential warming of the western and eastern sides of the equatorial Indian Ocean, and the third is the snow cover over the northern Himalayas and the Eurasian landmass, which also has an impact on the Indian monsoon through the differential heating of the landmass.

The southwest monsoon delivers about 70 percent of India's annual rainfall, which is critical for the agriculture sector. Agriculture accounts for about 14 percent of the country's GDP.

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News Network
April 7,2024

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Purulia: West Bengal Chief Minister Mamata Banerjee on Sunday alleged the central investigating agencies were asking TMC leaders to either join the BJP or face action.

Addressing an election rally in Purulia district, she alleged agencies such as the ED, CBI, NIA and the I-T Department were working as 'arms' of the BJP.

"Agencies such as the NIA, ED and CBI are being used to harass TMC leaders. They are carrying out raids without prior information, and barging into houses. What the women would do if someone entered their house when everyone was asleep in the dead of night?" she asked.

Banerjee was referring to Saturday's incident in Bhupatinagar where a team of the NIA was attacked by a mob when it went to arrest two accused in a blast case.

"The agencies are asking our leaders and activists to either join the BJP or face action," she alleged.

Asking people not to fall for any provocation, Banerjee alleged the BJP was fanning communal passions during Ram Navami.

The chief minister also accused the BJP-led government at the Centre of depriving West Bengal of funds for MGNREGA and PM-Awas schemes.

She said the state government will provide Rs 1.2 lakh for building houses for the poor.

"The EC will not give permission to us to give the money now. After the elections, we will construct the houses of the poor," she said.

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