Tag: Ministry of Finance
Government appoints Dr V. Anantha Nageswaran as the Chief Economic Advisor: Min of Finance
Ministry of Finance:
The Government has appointed Dr V. Anantha Nageswaran as the Chief Economic Advisor and today, he has assumed charge.
Prior to this appointment, Dr. Nageswaran has worked as a writer, author, teacher and consultant.
He has taught at several business schools and institutes of management in India and in Singapore and has published extensively.
He was the Dean of the IFMR Graduate School of Business and a distinguished Visiting Professor of Economics at Krea University.
He has also been a part-time member of the Economic Advisory Council to the Prime Minister of India from 2019 to 2021.
He holds a Post-Graduate Diploma in Management from the Indian Institute of Management, Ahmedabad and a doctoral degree from the University of Massachusetts in Amherst.
India likely to have double digit growth in FY 21-22: Ministry of Finance
India likely to have double digit growth in FY21-22
India’s policy focused on both Supply & demand to ensure inflation under control. In contrast, post GFC, runaway inflation manifested because of the policy focused only on demand
Global inflation stems similarly from exclusive focus on demand in contrast to India, where the focus has been on both demand and supply
Fiscal focus on capital expenditures has ensured that capital expenditures in H1-FY22 have grown at 38.3% compared to H1-FY21 and 22.3% compared to H1-FY20.
This is partly also due to contribution to investment by the private sector
Macro-economic hysteresis unlikely because formal sector (more vulnerable because its production relies both on labour & capital) has emerged stronger post-Covid. While informal sector impacted more, hysteresis is unlikely because its production primarily relies on labour.
Financial sector has emerged stronger with better asset quality, greater provision coverage as the first line of defence against impending losses from bad loans, and greater capital adequacy as the second line of defence. This is crucial for investment going forward.
Unlike 2005-10 and 2010-15, manufacturing growth in India during 2015-19 has been higher than in China. This has come from the policy focus that has reduced power costs, logistics costs and a competitive tax environment compared to peer economies.
Excise duty on Petrol and Diesel to be reduced by Rs. 5 and Rs. 10 respectively from tomorrow
Ministry of Finance:
Government of India has taken a significant decision of reducing Central Excise Duty on Petrol & Diesel by Rs. 5 and Rs. 10 respectively from tomorrow.
Prices of petrol & diesel will thus come down accordingly.
The reduction in excise duty on diesel will be double that of petrol.
The Indian farmers have, through their hard work, kept the economic growth momentum going even during the lockdown phase and the massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season.
In recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol and diesel had increased in recent weeks exerting inflationary pressure.
The world has also seen shortages and increased prices of all forms of energy. The Government of India has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol and diesel are available adequately to meet our requirements.
Driven by the enterprising ability of India’s aspirational population, the Indian economy has witnessed a remarkable turnaround post the COVID-19 induced slowdown.
All sectors of the economy – be it manufacturing, services or agriculture – are experiencing significant upward economic activity.
To give a further fillip to the economy, the Government of India has decided to significantly reduce the excise duty on diesel and petrol.
The reduction in excise duty on Petrol and Diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes.
Today’s decision is expected to further spur the overall economic cycle.
States are also urged to commensurately reduce VAT on Petrol and diesel to give relief to consumers.
Bank Employees Family Pension to be increased to 30% of last pay drawn
Ministry of Finance:
In a bid to provide relief to families of bank employees, the Government has approved the Indian Banks’ Association’s (IBA) proposal to increase the family pension to 30% of last salary drawn.
This move would make family pension go up to as much as Rs 30,000 to Rs 35,000 per family of bank employees.
This was announced by the Secretary, Department of Financial Services, Ministry of Finance, at a press meet addressed by Finance Minister Smt. Nirmala Sitharaman in Mumbai today.
Secretary, DFS informed that, in continuation of the 11th bi-partite settlement on wage revision of public sector bank employees, which was signed by the IBA with the unions on November 11, 2020, there was a proposal for enhancement of family pension and also the employers’ contribution under the NPS.
This has been approved by the Finance Minister, he said. Shri Panda further said that “earlier the scheme had slabs of 15, 20 and 30 percent of the pay that a pensioner drew at that point of time. It was capped subject to a maximum of Rs 9,284/-.
That was a very paltry sum and Finance Minister Smt. Sitharaman was concerned and wanted that to be revised so that family members of bank employees get a decent amount to survive and sustain”.
The Government has also approved the proposal to increase employers contribution under the NPS to 14% from the existing 10%.
Thousands of families of PSU bank employees will be benefited by the enhanced Family Pension, while increase in employers contribution will provide increased financial security to the bank employees under the NPS.
Finance Minister, as part of her two day visit to Mumbai reviewed the performance of the public sector banks and launched EASE 4.0 reform agenda for smart banking.
The Central Govt extends certain timelines for compliances under Income Tax Act due to the pandemic
Ministry of Finance:
The Central Government, in continuation of its commitment to address the hardship being faced by various stakeholders on account of the severe Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act,1961 (hereinafter referred to as “the Act”) in the following cases, as under:
- The Statement of Financial Transactions(SFT) for the Financial Year 2020-21, required to be furnished on or before 31st May, 2021 under Rule 114E of the Income-tax Rules, 1962 (hereinafter referred to as “the Rules”) and various notifications issued thereunder, may be furnished on or before 30th June, 2021;
- The Statement of Reportable Account for the calendar year 2020, required to be furnished on or before 31st May, 2021 under Rule 114G of the Rules, may be furnished on or before 30th June, 2021;
- The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31st May, 2021 under Rule 31A of the Rules, may be furnished on or before 30th June, 2021;
- The Certificate of Tax Deducted at Source in Form No 16, required to be furnished to the employee by 15th June, 2021 under Rule 31 of the Rules, may be furnished on or before 15th July, 2021;
- The TDS/TCS Book Adjustment Statement in Form No 24Gfor the month of May 2021, required to be furnished on or before 15th June, 2021 under Rule 30 and Rule 37CA of the Rules, may be furnished on or before 30th June, 2021;
- The Statement of Deduction of Tax from contributions paid by the trustees of an approved superannuation fund for the Financial Year 2020-21, required to be sent on or before 31st May, 2021 under Rule 33 of the Rules, may be sent on or before 30th June, 2021;
- The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64D for the Previous Year 2020-21, required to be furnished on or before 15th June, 2021 under Rule 12CB of the Rules, may be furnished on or before 30th June, 2021;
- The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64C for the Previous Year 2020-21, required to be furnished on or before 30th June, 2021 under Rule 12CB of the Rules, may be furnished on or before 15th July, 2021;
- The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st July, 2021 under sub-section (1) of section 139 of the Act, is extended to 30th September, 2021;
- The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September, 2021, is extended to 31st October, 2021;
- The due date of furnishing report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21,which is 31st October, 2021, is extended to 30th November, 2021;
- The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October, 2021 under sub-section (1) of section 139 of the Act, is extended to 30th November, 2021;
- The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 30th November, 2021 under sub-section (1) of section 139 of the Act, is extended to 31st December, 2021;
- The due date offurnishing of belated/revised Return of Income for the Assessment Year 2021-22, which is 31st December, 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, is extended to 31st January, 2022.
It is clarified that the extension of the dates as referred to in clauses (ix), (xii) and (xiii) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds rupees one lakh.Further, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension ) provided in that Act, shall be deemed to be the advance tax.
No consignment of 3,000 Oxygen concentrators pending with Customs authorities: Finance Ministry
Ministry of Finance:
The matter regarding a consignment of 3,000 Oxygen Concentrators lying with Customs Authorities came up in the Delhi High Court and the same was clarified by the Government Counsel that presently no such consignment is pending with Custom Authorities.
However, the social media has been flooded with the news that 3,000 Oxygen Concentrators are lying with Customs.
We have again checked with our field formations and there is no such consignment lying with the Customs.
However, since a photograph has also been put on the twitter, if anybody has information as to where it is lying, the same may be informed to us and we will take immediate action.
Real GDP growth of 0.4 per cent in Q3 of 2020-21; Economy returns to the pre-pandemic times of positive growth rates: Ministry of Finance
Ministry of Finance:
2nd Advance Estimates of National Income 2020-21 and Estimates of Q3:
Real GDP growth of 0.4 per cent in Q3 of 2020-21;
Economy returns to the pre-pandemic times of positive growth rates
It is also a reflection of strengthening of V-shaped recovery starting in Q2 of 2020-21, after a large GDP contraction in Q1 due to a stringent lockdown imposed by Government relative to other countries.
The 2nd advance estimates the contraction of GDP at 8.0% in 2020-21.
While GFCF has improved from a contraction of 46.4 per cent in Q1 to a positive growth of 2.6 per cent in Q3, PFCE has recovered from a contraction of 26.2 per cent in Q1 to a much smaller contraction of 2.4 per cent in Q3.
The fiscal multipliers associated with Capex are at least 3-4 times larger than Government Final Consumption Expenditure (GFCE) as Capex induces much higher consumption spending than normal income transfers.
However, GFCE has played a critical role since April, 2020 as apart from supporting lives and livelihoods it provided the initial stimulus to the economy.
Real GVA in manufacturing has improved from a contraction of 35.9 per cent in Q1 to a positive growth of 1.6 per cent in Q3 while in construction the recovery has been from a contraction of 49.4 per cent in Q1 to a positive growth of 6.2 per cent in Q3.
Real GVA in Services has also improved from a contraction of 21.4 in Q1 to a negligible contraction of 1.0 percent in Q3 of 2020-21.
Real GVA in Agriculture continues to provide vital support to the economy having grown from 3.3 per cent in Q1 to 3.9 per cent in Q3.
Embargo lifted on grant of Government Business to Private Banks
Ministry of Finance via PIB India:
The Government has lifted the embargo on private sector banks (only a few were permitted earlier) for the conduct of Government-related banking transactions such as taxes and other revenue payment facilities, pension payments, small savings schemes, etc.
This step is expected to further enhance customer convenience, spur competition and higher efficiency in the standards of customer services.
Private sector banks, which are at the forefront of imbibing and implementing latest technology and innovation in banking, will now be equal partners in development of the Indian economy and in furthering the social sector initiatives of the Government.
With the lifting of the embargo, there is now no bar on RBI for authorization of private sector banks (in addition to public sector banks) for Government business, including Government agency business.
The Government has conveyed its decision to RBI.
The Income Tax Department today launched Faceless Income Tax Appeals
Ministry of Finance:
The Income Tax Department today launched Faceless Income Tax Appeals.
Under Faceless Appeals, all Income Tax appeals will be finalised in a faceless manner under the faceless ecosystem with the exception of appeals relating to serious frauds, major tax evasion, sensitive & search matters, International tax and Black Money Act.
There will be no physical interface between the taxpayers or their counsel/s and the Income Tax Department. The taxpayers can make submissions from the comfort of their home and save their time and resources.
The Faceless Appeals system will include allocation of cases through Data Analytics and AI under the dynamic jurisdiction with central issuance of notices which would be having Document Identification Number (DIN).
The Faceless Appeal will provide great convenience to taxpayers, ensure just & fair appeal orders & minimise any further litigation. The new system will also be instrumental in imparting greater efficiency, transparency & accountability in functioning of the I-T Dept.
Loans worth more than Rs 1 Lakh cr disbursed under ECLGS till mid August: Finance Ministry
Under the 100% Emergency Credit Line Guarantee Scheme -ECLGS – backed by a Government of India guarantee, Banks from Public & Private Sectors have sanctioned loans worth over Rs. 1.5 lakh crore as of 18th August, 2020, of which more than Rs 1 lakh crore has already been disbursed.
The ECLGS was announced by the Government as a part of Aatma Nirbhar Bharat Package, to mitigate the distress caused by lockdown due to COVID-19 by providing credit to different sectors, especially MSMEs.
Under the ECLGS, Public Sector Banks have sanctioned loans of Rs 76,044.44 crore, out of which Rs 56,483.41 crore has already been disbursed.
Whereas Private Sector Banks have sanctioned loans of Rs 74,715.02 crore out of which Rs 45,762.36 crore has already been disbursed.
The top lenders under the Scheme are
State Bank of India,
Canara Bank,
Punjab National Bank,
Bank of India,
Union Bank of India and
HDFC Bank Ltd.