Tag: Budget 2021

Trust between govt, industry critical to leverage opportunities created by COVID-19: FM Nirmala Sitharaman

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Finance Minister Nirmala Sitharaman on Monday said that the trust between government and industry is critical for leveraging the opportunities thrown up by the COVID-19 pandemic while assuring that the proposed DFI, the National Bank for Infrastructure Financing and Development (NaBFID), will become functional soon. This trust is also reflected in the government’s actions, she said while addressing members of industry chamber CII here.

Elaborating on the government’s strategy for handling the pandemic, the minister said that on one hand the focus is on ramping up vaccination as that was the biggest protection against the pandemic while on the other hand the government is working on ramping up health infrastructure, including in the tier 2 and tier 3 cities, by supporting the private sector. The Finance Minister expressed confidence that the announced disinvestment plan is on track.

Sitharaman in her 2021-22 Budget speech, had announced a big-ticket privatisation agenda, including privatisation of two public sector banks and one general insurance company. The Centre budgeted Rs 1.75 lakh crore from stake sale in public sector companies including the strategic sale of IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, among others.

She also assured that the Development Finance Institution (DFI) announced in the budget would be operational soon. Liquidity is no longer a major concern, and that the Bank-NBFC-MFI channel has been de-clogged and from October 15 there would be a special drive to reach out credit to those who need it, she said.

Parliament earlier this year passed a bill to set up a Rs 20,000 crore DFI with a view to mobilising Rs 111 lakh crore required for funding of the ambitious national infrastructure pipeline (NIP), which has over 7,000 greenfield and brownfield projects. There were at least three or four attempts in the past to have alternative investment funds (AIFs), but gradually either they changed their nature of the business or became reluctant to take the long-term risk.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Govt’s FY22 asset monetisation target stands at Rs 88,000 crore; Rs 1.5 lakh cr annual outlay

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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NITI Aayog CEO Amitabh Kant on Monday said that the government’s FY22 asset monetisation target stands at Rs 88,000 crore, while the annual outlay is Rs 1.5 lakh crore.

Kant said that projects have been identified to monetise assets over the next four years.

Meanwhile, Finance Minister Nirmala Sitharaman announced a Rs 6 lakh crore National Monetisation Plan for monetising infrastructure assets across sectors.

She also said the asset monetisation does not involve selling of land and it is about monetising brownfield assets.

Projects have been identified across sectors, with roads, railways and power being the top segments.

“NMP estimates aggregate monetisation potential of Rs 6 lakh crore through core assets of central government over the four-year period from FY 2022 to FY 2025,” she said. ”

Ownership of assets will remain with the government and there will be a mandatory hand-back.” Asset monetisation will unlock resources and lead to value unlocking, she said.

Union Budget 2021-22 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing. Towards this, the Budget provided for preparation of a ‘National Monetisation Pipeline’ of potential brownfield infrastructure assets. NITI Aayog in consultation with infra line ministries has prepared the report on NMP.

–With PTI inputs

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s how income tax rules will change from April 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2021, had announced a slew of income tax changes. These new rules are set to come into effect from April 1, 2021.

As Sandeep Sehgal, Director -Taxes and Regulatory, AKM Global, says, it must be noted that these are the proposed changes and they still have to be approved by the Parliament and will be considered passed once asserted by the President; though generally the bills get passed in original forms with some minor changes.

Here are key income tax changes that will come into effect from April 1:

EPF tax rules

In Budget 2021, it has been proposed that the interest on employee contribution towards provident fund is exempt up to the maximum of Rs 2.5 lakh, and any interest income from the contribution above the said limit will be taxable in the hands of the employee.

This provision will be applicable to the contribution made by the employee on or after April 1, 2021.

TDS at a higher rate

In order to make more people file income tax returns (ITR), the Finance Minister has proposed higher TDS (tax deducted at source) or TCS (tax collected at source) rates in Budget 2021.

According to Kapil Rana, Founder and Chairman, HostBooks Limited, to give effect to this, a new section of 206AB will be inserted in the Income Tax Act. As per the said section, if TDS/TCS of Rs 50,000 or more has been deducted/collected in case of any person for the past two years and such person has not filed return of income, the rate of TDS/TCS will be higher than the double of the specified rate or 5 percent.

Although this provision will not be applicable for the transactions where the full amount of tax is required to be deducted e.g. salary income, payment to a non-resident, lottery, etc.

“This provision will discourage the practice of not filing returns of income by the persons in whose case the substantial amount of tax has been deducted/collected. Although the implementation at the deductor level may be a challenge,” Rana opines.

Non-filing of an income tax return by persons having an age of above 75 

In order to reduce the compliance burden of senior citizen, it has been proposed in the Budget 2021 that an individual being a resident in India who is of the age of 75 years or above at any time during the previous year having income from pension and interest from any account maintained in the same specified bank in which he/she is receiving pension income are exempt from filing ITR.

Pre-filled ITR Forms

Pre-filled data means some of the required information is auto-populated from external sources in the ITR.

Currently, the information which is pre-filled in the ITR form are – personal information, bank details, details of allowable donation u/s 80G, details of salary income as per form 16, details of TDS, TCS and taxes paid as advance tax and self-assessment tax from Form 26AS.

In this Budget 2021, some more information is notified which will be pre-filled in income tax return i.e. details of capital gain arising from the sale of listed securities, details of dividend income and details of Interest income received from the bank or post office.

“This is a great move taken by the government in order to make tax system fast, hassle-free and accurate,” Rana stresses.

LTC cash scheme

For the FY 2020-21, it is proposed to provide tax exemption to an employee receiving a cash allowance in lieu of Leave Travel Concession (LTC) subject to incurring the specified expenditure.

Advance tax liability

Advance tax liability on dividend income will arise only after the declaration or payment of the dividend.

Belated returns and revised returns

The time limit to file the belated and revised return has been further shortened by 3 months. Hence, a return that could be filed belated or revised by March 31 of next year will need to be done by December 31 only, according to Sehgal of AKM Global.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PM Modi bets big on PLI schemes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Prime Minister addressed a webinar on the Production Linked Incentive (PLI) Scheme on March 5, as part of a series on the implementation of specific aspects of the Union Budget 2021.

It was a follow up to the announcement in the Budget about the PLI schemes introduced for 13 sectors with an aim for “our manufacturing companies to become part of an integral part of global supply chains, possess core competence and cutting-edge technology”

The Budget announced the government’s commitment of nearly Rs. 1.97 lakh crores over 5 years starting FY 2021-22. The Prime Minister’s participation in the webinar is an indication of the importance the government has placed on the PLI as the way forward for Atma Nirbarta, for “Make in India, Make for the World”

PLI as the name suggests proposes to extend incentives on incremental sales over the base year of FY 2019-20 for goods manufactured (as distinct from traded goods) in India. The incentive proposed ranges from 4-6 percent on such sales for a period of 5 years subsequent to the base year. The scheme is open to both Indian companies and foreign companies. Eligibility is subject to “achievement of a minimum threshold of cumulative incremental investment over a period of 4 years “

The scheme runs across key familiar sectors like electronic manufacturing, pharmaceuticals, telecom manufacturing, textiles and automobile manufacturing. It also extends to sectors in which India sees great potential, advanced chemistry cell (ACC) battery manufacturing, touted as representing “one of the great economic opportunities of the twenty-first century for several global growth sectors, such as consumer electronics, electric vehicles and renewable energy,” to, food products, white goods, high-efficiency solar PV modules, speciality steel, manufacturing medical devices to name a few.

Further within each one of these sectors, specific product lines have been identified. The range of these products shows keen thought going into identifying products so as to move away from the present “uncomfortable dependence” on China. Thus, products ranging from semiconductor Fab, laptop/notebooks, automobile components, active pharma ingredients, 4G,5G next-generation radio access network, technical textiles, ready to eat products, to air conditioners, LED, high strength steel, among others, have been identified. Each of these identified sectors has enormous domestic and export potential and more importantly, as the PM has stated in his speech, should have a “cascading effect on the country’s MSME ecosystem”.

The potential employment generation over the next few years from the PLI scheme would be an additional benefit. The PLI scheme is to be implemented by ministries/departments concerned within the prescribed financial limits. Final approvals for individual sectors are to be given by the Expenditure Finance Committee.

There is a lot that is good in the PLI scheme. Its emphasis on incentivising incremental manufacture should boost investment, spur exports, increase employment, generate more GST revenue which should set off the financial incentives being offered. Department for Promotion of Industry and Internal Trade (DPIIT) for instance has in the case of just white goods (AC’s & LED’s) projected the incentive to generate additional exports of Rs 64,000 crore, extra direct tax collection of Rs 11,300 crore and GST mop-up of Rs.38,000 crore over 5 years. These are impressive numbers. The PLI scheme has evinced global interest. Thus, major players like Samsung, Flex, Pegatron and Foxconn are all in touch with MeitY.

Having said that it is important that the incentives are temporary. As economists Ila Patnaik and Radhika Pandey have stated, the incentives should not slow down long-term growth. Further, they have pointed that sectors not covered under the PLI would be at a comparative disadvantage and that it is incumbent that the Government ensure that the overall business, policy and tax environments are made investment-friendly. It is imperative that the PLI incentives are accompanied by a stable tax regime and tax rates are rationalised. In this background, the proposal in the latest Budget to have a clear sunset clause for any increase in Customs duties is a step in the right direction. The PLI scheme with its emphasis on incentivising growth is a welcome step, unlike schemes that promote the industry to be small.

A grouse aired by the auto sector is that there is no incentive offered for investment perse. This is misplaced. There is nothing to bar an investment being made in specific areas identified under the New Manufacturing Policy (NMP)where infrastructure support is being made available by the State Governments. As the FAQ on PLI for large scale electronics manufacturing makes it clear, an investor will be eligible for more than one government scheme provided the criteria for each scheme are satisfied.

The performance parameters are undoubtedly stiff. As has been pointed out in the case of mobile phones (above Rs 15000 value) companies are expected to invest Rs 250 crore in the first year and show an incremental output of Rs 4000 crore to claim a benefit of 6%. It should however be noted that the benefit being on the incremental output is also substantial.  The PLI scheme expects companies to begin localisation within a certain timeframe to avail the incentives. Thus, in the IT sector, certain electronic components such as printed circuit boards (PCB’s) should be assembled locally in the second year either by the applicant company or through one of its vendors.

The PLI scheme is ambitious. Its success will depend entirely on the departments concerned nurturing the scheme, guiding the companies. sorting out red tape and being nimble to respond to industry concerns. Only then can the vision laid out by the PM in his speech of “every country importing from India and from each and every corner of the country” be realised.

(Views are personal)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Maharashtra budget 2021 highlights: Increase in liquor excise duty; concession on stamp duty for women

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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On International Women’s Day, the Maharashtra government presented its budget for 2021-22. The budget offered a per cent concession in stamp duty if a property is transferred only in a woman’s or women’s name, and proposed to increase state excise duty on liquor — 220 per cent of manufacturing cost or Rs 187 per litre, whichever is higher. This is expected to fetch an additional Rs 800 crore.

The budget was presented by Maharashtra deputy chief minister and finance minister Ajit Pawar. He also said that farmers in the state will be allowed to repay their farm loans with 0 per cent interest and the amount will be borne by the government.

He also said that there was a reduction of Rs 14,366 crore in the state’s share of tax received from the Central government this year. The budget had a revenue deficit Rs 10,226 crore. The revised revenue target was fixed at Rs 2,89,428 crore (versus Rs 3,47,457 crore).

Some of the other highlights of Pawar’s budget speech were:

• For infrastructure development, a provision of Rs 58,748 crore was made.
• Rs 8,420 crore allocated for the urban development department.
• Allocation for agriculture, animal husbandry and fisheries department is Rs 3,274 crore.
• Rs 2,000 crore allocated for strengthening Agricultural Produce Market Committees (APMC)s.
• For the solar pump scheme, an amount of Rs 1,500 crore to MSEDCL was allocated.
• Allocation of Rs 624 crore was made to strengthen 12 other dams
• In terms of health, an allocation of Rs 2,961 crore was made for public health.
• Medical education gets an allocation of Rs 1,517 crore.
• Rs 800 crore was allotted for upgrading district and primary health centres.
• The transport department gets Rs 2,570 crore.
• Mumbai-Goa coastal road gets Rs 9,773 crore.
• To modernise bus stops and depots, Rs 1,400 crore was allotted.
• For girl students to reach schools, 1,500 hybrid buses were allotted.
• In rural Maharashtra, girl students can travel free of cost on state-run buses.
• There will be electric vehicle charging stations on major highways.
• The government will set up dedicated cycle lanes on Western and Eastern Express highways.
• For Balasaheb Thackeray memorial at Shivaji Park, Rs 400 crore was allotted.
• Rs 3,210 crore was allotted for the development of Other Backward Classes.
• An amount of Rs 9,700 crore was set aside for the tribal department.
• Rs 2,270 crore budget provision was made for women and child development department.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government finalising roadmap for asset monetisation: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Amidst a series of meetings being held for faster implementation of Union Budget 2021 announcements, the government is also finalising a roadmap for core and non-core asset monetisation.

CNBC-TV18 has learned that discussion is underway on preferred models for monetisation, legal regulatory framework as well as governance ecosystem for public sector InvITs. The government is mulling Special Purpose Vehicle (SPV) structure for monetisation of non-core assets.

It also plans to address investors’ concerns with regards to privatisation and monetisation to ensure enough interest in the privatisation plan.

The government has identified 2000 acres of land as part of non-core assets for MTNL, BSNL, BEML, HMT in this current financial year. It expects to garner Rs 50,000 core from monetisation of land assets through redevelopment and sale. The plan is also to amend the Airport Authority of India Act to allow commercial use of its land.

Some amendment in the Stamp Duty Act, Income Tax Act is also expected to facilitate demerger of non-core assets of public sector undertakings.

Rs 17,000 crores is expected from monetisation of IOC, GAIL, and HPCL pipelines, Rs 1.68 lakh crores from power grid transmission network, InvIT for 5 power grid assets worth Rs 7,200 crores are at an advance stage, and over 30 shipping projects are identified for monetization between FY21 to FY24.

Transaction, structuring, and approvals of several privatization proposals like Air India, BPCL, SAIL, Pawan Hans are already underway at various levels.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PM Modi led industry feedback sessions for “prompt” implementation of Budget 2021 proposals

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Series of webinars are planned to formulate a strategy for prompt implementation of announcements made by the government in the budget 2021. The Department of economic affairs (DEA) is coordinating with line ministries and NITI Aayog for industry leaders’ webinars on various sectors.

The webinar will also be attended by Prime Minister Narendra Modi for industry feedback on sectoral announcements made under the budget. The government has so far held 7 webinars with the industry on sectors like divestment, defence, power, health, roads and agriculture.

The ministries after the webinars are preparing the outcome of these webinars along with budget implementation timelines. The next webinar is scheduled for higher education on March 3rd and on March 5th webinar will be on a production linked incentive scheme.

The prime minister will e-meet the industry leaders on March 5 for information sharing and brainstorming sessions on production-linked incentive schemes.

The government has approved PLI schemes for 10 sectors in a bid to boost manufacturing and reduce dependence on imports. The outlay for the PLI scheme stands at around 1.45 lakh crore.

Some of the key industry leaders expected to be part of the webinar include RC Bhargava of Maruti Suzuki, N Chandrasekaran of Tata group, Satish reddy of Dr Reddy’s, Pankaj Patel of ZydusCadilla, Samina Hameid of Cipla, R Mukundan of Tata Chemicals, Suresh Narain of Nestle and Dilip Gaur of Grasim Industries.

It will also include Pawan Goenka of M&M, Sajjan Jindal of JSW, Gopal Vittal of Airtel, Manish Sharma of Panasonic iIndia, Manoj Kohli of SoftBank India, Sunil Vachani of Dixon Technologies, Hemant malik of ITC, RS Sodhi of Amul amongst many others.

The idea is that the outcome of the Industry stakeholder consultation will be shared with the prime minister, prime minister’s office, Cabinet Secretary and related ministries will have to upload status of Budget Implementation to DEA’s e-Samiksha portal every month.

The budget implementation strategy will be reviewed by the PMO, cabinet secretary and senior secretaries panel from time to time.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s how govt’s investor charter will impact gold investments

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Authored by Mahendra Luniya

Budget plays a vital role in accelerating the economic growth of any country and the general public in India had many expectations from the FY 2021-22 budget as it was supposed to be the “Big Budget” after numerous mini-budgets announced in the previous calendar year to deal with the economic contraction brought about by the pandemic.

Much to the satisfaction of the people, the budget has come as a boon for gold investors.

The pandemic had left the economy unstable and every instability adds value to gold as investors shift to safer options to park their funds.

The Federal Reserve Bank has been printing currency ever since the pandemic hit, to provide a cushion to the steep fall in economic activity and to revive it. The total printing of $3 trillion dollars has generated liquidity, which has helped the economy but eventually has fuelled the inflation cycle, giving the gold the opportunity to shine. This is because inflation reduces the net return earned by investors in various asset classes & gold has always acted as a hedge towards inflation.

In line with the steps taken by the central bank of US, the government in India has come up with better steps such as allocating more funds towards Capital and developmental expenditure. This would drastically increase the public expenditure resulting in stimulating liquidity. The quantum of increased liquidity also stimulates the overall percentage allocation to gold in portfolios.

One of the budget measures, related to provident fund investment works to favor the long-term gold bull run. The step is taken to tax interest earned above Rs 2, 50,000 will target the higher income groups and automatically divert their fund allocation to other investment options. Provident fund was viewed as a safe investment option and gold matches the same requirement as well as investors would prefer Sovereign Gold Bonds, Exchange-traded funds and other digital gold options for more liquidity.

The specific gold-related measures in the budget include that the Gold exchange will from now be regulated by the Securities Exchange Board of India (SEBI) which is a historic step taken by the government that will boost the trade-in exchange as it will increase the faith of investors and also attract new investors towards the yellow metal.

Moreover, it has been seen that in recent times the common people have started to understand the concept of investing better. For example, nowadays if people want to take insurance they prefer term insurance over other endowment options, similarly, people have now understood that if they want to wear jewelry then they prefer physical gold. They have understood that buying jewelry as an investment is not a good option when other options like Sovereign Gold Bonds (SBGs) are available.

The buyer ends up paying around 10 percent more money when buying gold physically which includes making charges, indirect taxes, etc. This is the reason that the recent series of SGBs and Gold ETFs have outperformed drastically. Thus the recent measure regarding Gold exchange, which from now will be regulated by SEBI, will support the idea of investment in Digital gold. This measure is also welcomed by the Sarafa Association.

The second measure taken in the budget is the proposed reduction in the rate of customs duty which was paid for importing the metal from 12.5 percent to 10 percent. This would lead to lower import costs which will be passed on as lower rates and that will also stimulate the buying mindset in customers. Also as the customs duty was very high earlier, it led to malpractices such as smuggling, increasing the black market of the commodity. But the reduced rates will prove to be an incentive to undertake imports from the legal route. This will result in transparency and accountability strengthening the faith of the customers.

The sharp rise that the commodity experienced in the recent past made it seem overvalued to the retail customers squeezing the demand. The measures in the budget will help revive the love for gold that people had earlier suppressed. Moreover, the wedding season will kick off soon increasing the immediate demand for the commodity.

Considering the factors that we have elaborated above and the steps taken by the government through the budget, it is conclusive that the yellow metal is set to shine brighter and the returns thus generated will heavily outperform other asset classes.

Mahendra Luniya is Founder and CEO at Vighanaharta Gold Limited. Views are personal

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Govt may consider Oriental Insurance or United India for privatization

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government may consider privatising Oriental Insurance or the United India Insurance Co as their financial health has improved after a series of capital infusions, people aware of the development said.

To further strengthen their financial health, the government is expected to infuse Rs 3,000 crore in the public sector general insurance companies during the current quarter.

Both Oriental Insurance and the Chennai-based United India Insurance may be able to generate interest from the private sector because of their improved financials, sources said.

The process of choosing a suitable candidate for privatisation has just started and will take some time to decide, sources said while not ruling out the possibility for listed New India Assurance, where government stake stands at 85.44 per cent.

As per the plan, NITI Aayog will make recommendations to the government for privatisation and the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance will take the proposal to its logical conclusion.

Finance Minister Nirmala Sitharaman in her Budget 2021-22 had announced a big-ticket privatisation agenda including privatisation of two public sector banks and one general insurance company.

As part of the divestment strategy for the financial sector, the government has decided to go for a mega initial public offering (IPO) of Life Insurance Corporation of India (LIC) and residual stake sale in IDBI Bank during the financial year beginning April.

The government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions during 2021-22.

Last year, the Union Cabinet headed by Prime Minister Narendra Modi cleared a proposal to provide capital support to National Insurance, Oriental Insurance and United India Insurance.

The cabinet had also decided to increase the authorised share capital of National Insurance Company Limited (NICL) to Rs 7,500 crore and that of United India Insurance Company Limited (UIICL) and Oriental Insurance Company Limited (OICL) to Rs 5,000 crore each to give effect to the capital infusion decision.

At the same time, the Cabinet junked the earlier Budget proposal of merging NICL, OICL and UIICL.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Govt likely to take liberal view on taxability of NRIs who have overstayed beyond 182 days

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After Finance Minister Nirmala Sitharaman offered relief from double taxation to NRIs in Budget 2021, sources told CNBC-TV18 that the government is likely to take a liberal view on the taxability of NRIs who have overstayed beyond 182 days.

The government is likely to clarify on the taxability of NRIs who have overstayed beyond 182 days during the Finance Bill discussion, the sources noted, adding that NRIs who provide proof of paying taxes in the resident country are likely to be exempt from paying taxes in India.

The Supreme Court on February 10 had ordered CBDT to issue clarity on the NRI tax issue since the Budget 2021 didn’t clarify on status of taxing NRIs whose stay exceeded 182 days in FY21.

CBDT said that it will ensure that there is no double taxation for the NRIs.

The Budget 2021 proposed to provide relief from double taxation for non-resident Indians (NRIs) on money accrued in foreign retirement accounts by claiming relief on tax deducted on such money in India. Currently, there is a mismatch in the year of taxability of such funds in India and the respective foreign country.

Finance minister Nirmala Sitharaman mentioned in the budget speech that when NRIs return to India, they generally face issues concerning their accrued corpus in foreign retirement accounts. This is usually due to a mismatch in the timing of taxation of such income in the foreign country and India. They may also face difficulties in getting credit for Indian taxes in foreign jurisdictions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow