Tag: union budget

Categories
Delhi News

Modi government focusing on creating India of the future: Anurag Thakur | India News

Modi government focusing on creating India of the future: Anurag Thakur | India News



Union information and broadcasting ministerAnurag Thakur speaks to TOI’s Swati Mathur on the Union Budget, opposition protests in Parliament, and why the government believes it must rein in online misinformation campaign. Excerpts from the interview:
The government has said it has presented a pro-poor Budget with a focus on an India of the future. What, according to you, are its highlights?
In the eight years of Modi government, we have made systems transparent and accountable and ensured last mile delivery. To this end 48 crore bank accounts were opened, 9.6 crore Ujjwala (gas) connections were given, and households were given electricity connections. Over three crore houses were built in last eight years and six crore water connections were handed out in two years. The Budget set aside Rs 10 lakh crore as capital expenditure, a 33% increase. Railway outlay grew nine-times from 2013-14 to Rs 2.4 lakh crore, highest-ever for it. Allocations for Pradhan Mantri Awas Yojana also rose 66% to Rs 79,000 crore. Put together, India is looking at a great railway network, house to every poor, and capital expenditure that will lead to greater job creation. Every sector has been taken care of. There are 80 lakh self-help groups, which translate to nine crore women, who will be further linked to the market and given more opportunities to become entrepreneurs.
By investing more during the last two years, we have seen greater job creation. EPFO numbers have doubled, more roads and rail lines are laid each day and infrastructure is getting better day by day. That is how more jobs are created and more investment is coming in. Average per-capita income doubled in eight years. A holistic approach has been taken to address rural and urban needs while keeping an eye on green economy, green investments and green jobs. The Modi government is focusing on India’s sustainable future and growth.
The government told opposition that it is willing to answer any questions on the controversy surrounding Adani. Will it allow the opposition’s demand for a joint parliamentary probe into public fund investments in Adani Group companies?
SBI, LIC, SEBI and RBI have each issued a statement on this issue. RBI has taken note of the situation and made a statement after checking facts from the banks concerned. Rather than making it a political issue, opposition should look at the facts. The Budget is a very important document for the entire nation and even more so for MPs, who are public representatives. I think the opposition should speak and debate on such issues rather than just trying to disrupt Parliament. They are free to raise issues and hold discussions during the Budget debate. I don’t know why they don’t want to.
As Union I&B minister you must be aware that media entry into Parliament has been severely curtailed over the last seven sessions, hampering work. These restrictions remain even though Covid-19 protocols are no longer being followed. What measures will you take to restore normalcy and help the media do its job?
This comes under the purview of the Speaker of the Lok Sabha. We will check with him. Work on the new Parliament is also under way.
The IT Rules of 2021 and the government’s decision to appoint PIB Fact Check as the arbiter of truth has led to concerns over press freedom and the ability to comment on or criticise the government. Why are the rules being implemented through executive orders rather than by bringing them to Parliament where they can be discussed threadbare? Why should government fact-check things that are written about it?
The concerns are unwarranted and ill founded. IT Rules are framed after due consultation with stakeholders and are very balanced. As for the PIB Fact Check, it is not new. It has been in operation since 2019 and done exemplary work in countering misinformation especially during the time of Covid-19 pandemic. No country can afford to allow an infodemic to spread. The government is duty bound to prevent both circulation and amplification of malicious disinformation.
Recently, you had to step in to address concerns raised by athletes related to Wrestling Federation of India. Would you say the issues have been settled for good?
Not really. A committee has been formed to look into the grievances. This is still work in progress and they will examine the allegations that have been levelled as well as delve deeper into the working of the Federation. They will try and bring more transparency and accountability into the system and fix things if anything is found wanting.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Union Budget: 10 things individual taxpayers should know


1. To provide relief to the middle class, FM has further reduced income-tax rates under the new regime and allowed standard deduction of 50,000. Taxpayers should note that the new regime will now be a default option unless they opt for the old tax regime.
2. Currently, taxpayers with income up to 5 lakh do not pay any income tax as there is a rebate available. Now this rebate will be available to those with income up to 7 lakh under the new tax regime. With standard deduction of 50,000 available on salary income under the new regime, there will be no tax for salaried individuals on income up to 7.5 lakh.

3. Surcharge for taxpayers with taxable income more than 5 crore has been reduced to 25% from 37% under the new tax regime. The highest tax rate for such taxpayers would now be 39% instead of 42.7% earlier.
4. Increase in tax-free leave encashment! Tax exemption ceiling on leave encashment received by nongovernment employees has been enhanced to 25 lakh from the current limit of 3 lakh. This would provide additional tax benefit to employees eligible for higher leave encashment at the time of retirement, whether on superannuation or otherwise.
5. Presumptive taxation scheme for specified professionals is presently applicable only where gross receipts are up to 50 lakh. As per the scheme, 50% of the gross receipts can be considered as taxable business profits. In order to further ease compliance and promote non-cash transactions, the scheme is now extended to such professionals earning gross receipts up to 75 lakh but only if their cash receipts are up to 5% of total receipts.
6. The conversion of gold to Electronic Gold Receipt and vice versa will not attract any capital gains tax. This will promote investments in electronic form of gold.
7. Capital gains tax deduction on purchase of new residential house restricted! Longterm capital gains arising on sale of an asset is exempt from tax if the capital gain/sale consideration is reinvested in a new residential house. Many HNIs were taking advantage of this exemption by purchasing very expensive residential houses. In order to prevent this, a cap of 10 crore has been introduced on calculating the exemption.

8. Sum received under a life insurance policy (including bonus on such policy) is exempt from tax if the premium amount does not exceed 10% of the actual capital sum assured in any year. This tax exemption will now not be available where the aggregate annual premium payable by the individual for life insurance policies issued on or after April 1, 2023 exceeds 5 lakh. Proceeds received on death of the insured person will continue to be tax exempt.
9. Foreign remittances and sale of overseas tour packages will have higher TCS rates! There is a requirement to collect tax at source (TCS) on certain foreign remittances and on sale of overseas tour packages. The current rate of 5% TCS on these remittances has been enhanced to 20%. Also, the limit of 7 lakh for TCS to be applicable on foreign remittances (other than for education and medical treatment) has been removed.
10. Game over! It is clarified that net winnings from any online gaming platform is taxable and subject to TDS. From July 1, 2023, the minimum threshold of 10,000 for deducting TDS does not apply to winnings from online games. This will result in transparency in taxation of online gaming.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Remittances high, low tax payment: Govt tighens net with TCS hike


To trace high-value spending and tax avoidance by high net-worth individuals, the government Wednesday announced a sharp hike in the tax collected at source  (TCS) rate — to 20 per cent from 5 per cent — on overseas tour packages and on certain remittances out of India under the liberalised remittance scheme (LRS).

This has been proposed with the exception of LRS remittances for education and medical treatment purposes.

Finance Secretary T V Somanathan said the measures have been taken based on information that people are making high-value remittances but their tax returns are not reflecting proportionate income tax payments. “It is our impression and there is enough information to indicate that there are quite a lot of people who are able to make these remittances but whose tax returns are disproportionately low compared to what they send as remittances. So that means if you don’t collect tax at source, then you have to take measures later to catch them. That is much more difficult. If you are able to make remittances to invest in a property in Manhattan, or a stock brokerage account in Dubai or if you are going to take a 30-day tour of the world, almost certainly your effective tax rate will be 20 per cent,” he said.

The Finance Bill, through the Budget 2023-24, amended Section 206C of the Income Tax Act levying a higher TCS on overseas tour programme packages. Also, 20 per cent TCS will be applicable on certain remittances without any threshold as against the current scenario of 5 per cent tax rate where funds in excess of Rs 7 lakh are sent out of India under the Liberalised Remittance Scheme of the RBI. The amendments will come into effect from July 1, 2023.

The government’s underlying view in taking these tax rationalisation measures in the Union Budget for 2023-24 for high net worth individuals has been to reduce ways for tax avoidance by such individuals. “If you look at high net worth individuals there are a number of tax avoidance removal measures in this Budget. You look at market-linked debentures, very high value insurance policies, marginal (tax) rate is coming down but some of the devices used predominantly by those in the highest tax rate are also being rationalised. So it’s not necessarily a net reduction, it’s a reduction from a high marginal rate inducing certain avoidance devices, to a lower rate with fewer opportunities to avoid,” Somanathan said.

In similar measures, the Budget for FY24 has also proposed that maturities of life insurance policies with an annual premium of Rs 5 lakh and above taken after April 2023 will now be taxed. The Budget for 2023-24 also proposed to cap deduction from capital gains on investment in the residential house to Rs 10 crore.

Amit Maheshwari, Tax Partner at AKM Global said, “TCS has been proposed on any foreign payment without any threshold. This would pose challenges for people intending to go for foreign travel and who wish to invest in overseas stocks as it will increase their immediate outlay.”

Nangia Andersen India Partner Amit Agrawal said the increase in TCS rate to 20 per cent is a big surprise, especially with the comfortable forex position. “The increase in TCS rates to 20 per cent for overseas travel perhaps underscores the government’s intention to restrict overseas travel spending by HNIs,” Agarwal said, adding that the step to increase TCS to 20 per cent for all remittances, other than travel and medical is likely to cause resentment and hardship amongst the middle class and HNIs.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Cost of war | The Indian Express


The macroeconomic environment has changed considerably from the time Finance Minister Nirmala Sitharaman presented the Union budget, and the RBI released its inflation forecast for the upcoming fiscal year. On Thursday, crude oil prices hovered around $120 a barrel for the first time in years. While prices have moderated mildly thereafter, for the Indian economy which imports around 80 per cent of its requirements, higher crude oil prices will have adverse consequences. Higher prices will impact growth, will be inflationary, and will exert upward pressure on the current account and fiscal deficit. Considering that crude oil prices are currently significantly higher than those factored in the Union budget and the RBI’s calculations, navigating this uncertain economic environment will require deft management by monetary and fiscal authorities.

Since November last year, when the price of the Indian crude oil basket stood at $80.64, oil marketing companies have refrained from revising pump prices, even though global prices have been on the rise. But, once the assembly elections are concluded, fuel prices at the pump are likely to be hiked. However, steep hikes will be needed — as per a report by ICICI securities, a Rs 12 per litre hike will be needed just to break even. This will be inflationary. Needless to say, fuel price hikes will upend the central bank’s optimistic assessment of the inflation trajectory. As per RBI’s recent assessment, inflation was expected to trend down from 5.7 per cent in the fourth quarter of 2021-22 to just under 5 per cent in the first half of 2022-23. This will complicate the choices before the monetary policy committee. Higher prices will also reduce discretionary spending by households. Governments may respond by lowering fuel taxes to absorb part of the burden. However, this will weigh down their revenues and spending. Thus, growth will thus take a hit. Higher oil prices will also push up imports, increasing the current account deficit at a time when global financial conditions are tightening. Recent data shows that the merchandise trade deficit has already widened to $21.2 billion in February, up from $17.9 billion, with much of the surge driven by oil. The rupee is already coming under pressure. This will only add to the inflationary pressures.

The indirect consequences of the deterioration in the economic environment are also beginning to show. There are reports that LIC’s initial public offering may be postponed to the next financial year due to prevailing market uncertainty. While the full effects of the oil price shock will be visible with a lag, when taken together with the third wave of the pandemic, it suggests further downside risks to economic growth in the fourth quarter, which as per the National Statistical Office’s latest estimate was already expected to slow down to 4.8 per cent from 5.4 per cent in the previous quarter.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Government And RBI In Complete Harmony On Cryptocurrency, Other Issues: Finance Minister


Government and RBI on same page on various issues including cryptocurrency, the finance minister said

Finance minister Nirmala Sitharaman on Monday said that there was complete harmony between her department and the Reserve Bank of India (RBI) on all matters including cryptocurrencies. She added that there is respect towards each other’s domain and priorities keeping national interest in mind.

She was addressing media persons after RBI’s board meeting.

“Not just on crypto, but on every other thing as well. I think there’s complete harmony with which we’re working, respecting each other’s domain and also knowing what we’ve to do with each other’s priorities and in the interest of the nation. There’s no turfing here,” Ms Sitharaman was quoted as saying by agencies.

RBI governor Shaktikanta Das on his part said that the issue of cryptocurrency was under discussion internally between the central bank and the government.

“Whatever points we have, we have discussed with the government. Beyond that I think I will not like to further elaborate,” Mr Das said.

Ms Sitharaman, while presenting the budget on February 1, had said that a digital currency will be issued by the central bank in the next fiscal, which will use the blockchain technology. The budget also proposed to amend the RBI Act to introduce the proposed central bank digital currency (CBDC), which will function simultaneously with the traditional banknotes.

Last week Mr Das had said that private cryptocurrencies were a threat to macroeconomy and financial stability, and would undermine the central bank’s ability to deal with challenges on the two fronts. In a message for investors, he had said such assets have no underlying whatsoever, “not even a tulip”.

Meanwhile the finance minister reacting on LIC’s draft red herring prospectus, said that there was “positive buzz in the air” about it. 

She said that a big decision like this is never a “knee-jerk reaction. It is done with consciousness… And I can see after the announcement, the reception, there is a buzz in the air”.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Magic (black) with numbers | The Indian Express


There was a time when Mr Narendra Modi — and on cue his Finance Minister — swore by the private sector. Like Agriculture and most of the Services, in industry too, Mr Modi’s preferred model was private sector-led growth. The State will step back and be content to be the regulator where regulation was necessary.

At some point of time, after demonetisation, Mr Modi appears to have changed his philosophy. As his faith in the private sector waned, he became a votary of the government-led model. With Budget 2022-23, the change is complete. This is a Budget driven by one engine: government capital expenditure. The rub, however, lies in the numbers.

Shifting Gears

The Finance Minister claimed that in 2021-22 the government had exceeded budgeted capital expenditure. As against a BE of Rs 5,54,236 crore, the RE number was Rs 6,02,711 crore. The surprise turned out to be unpleasant after one read the fine print. The latter amount included a sum of Rs 51,971 crore that was infused into Air India to repay past loans and liabilities before privatization! I did not know that repaying a loan would qualify as capital expenditure! Deducting this amount, the capital expenditure in 2021-22 was only Rs 5,50,840 crore — lower than the BE!

That is not surprising. The government’s capacity to spend money on the capital account is constrained by many factors: multiple levels of decision-making, huge paperwork, diffused accountability, and so on. These constraints will not go away because Mr Modi shifted gears.

There are more unpleasant surprises in the numbers. The Finance Minister generously announced that she will allow the states to borrow an additional sum of Rs 1,00,000 crore, interest free, if it was tied to capital expenditure. Soon it became clear that the states would borrow directly from the market and the Central government would bear only the interest. The nasty surprise was that the Finance Minister quietly tucked this sum into the 2022-23 BE of the Central government’s capital expenditure that printed at Rs 7,50,246 crore, and claimed that the Central government had enhanced its capital expenditure by 35 per cent over the previous year! By no stretch of argument would the additional borrowing by the state governments for their capital expenditure qualify to be Central government capital expenditure. This was deception of the worst kind. Deducting this amount, the Central government’s capital expenditure in 2022-23 BE would be only Rs 6,50,246 crore — a modest increase of Rs 1,00,000 crore over the true number of 2021-22 RE.

Losing Faith

The Modi government’s rhetoric of government capital expenditure-led growth is hyperbole. Further, the government does not have faith in the appetite of the private sector to invest more. The latter was exposed when the ambitious scheme to privatize public sector assets collapsed. Two years ago, the government decided to privatize BPCL, CCL and SCI. Last year, the government decided to privatize two public sector banks and one public sector insurance company. Also, last year, the Finance Minister announced a Grand Bargain Sale of monetizing public sector assets valued at Rs 6,00,000 crore. Not one of the proposals has seen the light of the day! The Railways invited bids to privatize 151 passenger trains on 109 routes — and got no bids! It was no surprise that against a disinvestment revenue target of
Rs 1,75,000 crore in 2021-22 BE, the government hopes to achieve Rs 78,000 crore — that is if the LIC IPO goes through before March 2022!

There are good reasons why the private sector is shying away from investment. The foremost reason is lack of demand. The capacity utilisation in many industries is around 50 per cent. Why would any one invest more when there is idle capacity? Besides, the business environment has become more difficult, not easier, and is filled with cronyism, suspicion and fear.

Ignoring Advice

Many economists have advised the following approach to pull the economy out of the current state of jobless and sluggish growth:

– Stimulate demand by putting more money in the hands of the poor and the middle class — transfer cash, cut indirect taxes:

– Revive the MSMEs that have shut down or have scaled down their business. Such revival will also bring back millions of jobs that were lost;

– Spend more on welfare. The excuse that “we don’t have enough money” will not wash because the top 10 per cent of the population has garnered 57 per cent of the national income and holds 77 per cent of the nation’s wealth. They must come forward and say, like the American billionaires, “tax us more”;

– Review the licence raj that has found its way back through multiple regulations and directions by the RBI, SEBI, the Income-Tax department, etc;

– Rein in the CBI, ED, SFIO and IT so far as businesses and banks are concerned.

I have no expectations that the government will listen to well-meaning advice. Leaving that aside, will the Finance Minister solve a puzzle that is troubling many economists. In 2022-23, will the nominal GDP grow by 11.1 per cent (as projected in the Budget papers) and the real GDP grow by 8 per cent (as predicted by the new CEO)? That would be heaven with inflation at only about 3 per cent!





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Opp tears into govt on lack of Budget focus on jobs; social, farm sectors


The Opposition on Monday slammed the government over rising unemployment in the country and the Budget allocating little for the farm sector or ordinary Indians.

Initiating the discussion on Budget 2022-23, Congress leader Shashi Tharoor said the Budget had betrayed hopes and aspirations of the people.

“The expectation was that the government would acknowledge the unprecedented levels of unemployment, which has left countless citizens, especially the young, with little prospect for a brighter tomorrow,” Tharoor said. “Admit that one-fifth of India’s population has plunged a staggering 53% in the last five years in their income.”

He said while the wealth of the richest 100 Indians has soared to Rs 57 lakh crore, 4.7 crore Indians have slipped to extreme poverty.

“Acknowledge,” he said, addressing the government, “that the Indian middle class has been left defenseless in the face of rising inflation, shrinking incomes and the consequent acceleration of household debt. Recognise the widespread distress and the anguish in the agrarian economy. Concede that all these misfortunes were avoidable misadventures of your style of governance. A style of governance that prioritises one-man rule over conversation, a style that demands conformity rather than seeking consensus.”

DMK’s Dayanidhi Maran called the Budget “anti-federal and anti-people”.

“This government is completely ignoring people’s welfare,” he said. More than 50% of the Budget estimate is going to be borrowed. So, basically you are going to sell and beg. Of the entire Budget, interest payment alone is Rs 9.7 lakh crore and capital expenditure is over Rs 7 lakh crore. Only Rs 3.36 lakh crore is left for development expenditure.”

He also accused the government of being biased against states not governed by BJP.

“You have done nothing for farmers,” Maran said. “You have not even broached the subject of MSP. MNREGA budget has been slashed by Rs 25,000 crore, even though demand for jobs rose due to the pandemic,” he said.

Calling the Budget “disappointing”, TMC’s Sudeep Bandopadhyay said it “contributes nothing to the common people”.

Tharoor said the Budget proposed creation of an “inadequate” 60 lakh jobs in five years, which is “a far cry from 2 crore jobs the government had promised in the equally illusory ‘acche din (good days, a reference to BJP’s earlier ad slogan)’.”.

He said there are reductions in budgeting for social welfare schemes, and significant cuts in schemes for crop insurance, minimum support price (MSP) and fertliser, which has left many farmers’ groups to term this as a “revenge Budget”.

The Congress leader also said there is no meaning of GDP growth unless one is concerned about public welfare. He tore into the government over rise in fuel and gas prices, besides rising food prices. He said corporate surcharge had been reduced from 12% to 7% but no tax relief was given to the middle class.

“Unemployment is pegged at 6.75 % as of January. This is welcome improvement from 7.9% in the previous month. It is still higher than the worst unemployment rate in the country in the past 45 years,” Tharoor said. “India’s unemployment rate has grown faster than Bangladesh and Vietnam.

“In the last two years 84% of households have suffered a loss of income, even as per capita income has fallen. The UPA pulled 27 crore Indians out of poverty, this government has pushed back 47 crore people into poverty.”

He also criticized the government over reduction in MGNREGA allocations. “The reduced MGNREGA allocation in the Budget blatantly ignores on-ground reality. Experts have consistently pointed out that MGNREGA needs Rs 1.34 lakh crore, but this government has allocated only Rs 73,000 crore. At the current allocation government will be able to provide just 16-20 days of work,” he said.

Tharoor said rising inequality threatens the social fabric of this country.

“We have already seen this during the railway recruitment exams, where 1.25 crore applied for 35,000 listed jobs,” the Thiruvananthapuram MP said. “This grave unemployment threatens to convert our demographic dividend into a demographic disaster. It required a sense of urgency and purpose from the government, which is missing in all this talk of ‘Amrit Kal’.”

Calling the Budget “long on promises but short on effect”, Trinamool’s Sudip Bandopadhyay said, “(There is) no sign of any overall reform. This is a sell-India budget: Air India, NILL, LIC — all sold. This government is in the mood to sell all PSUs. We totally oppose this idea.”

He said, “Unemployment has skyrocketed. Big industries cannot generate the kind of employment that MSMEs can. Government should focus on them.”

Raising the issue of state funding of elections, Bandopadhyay said, “What is the thinking of the government regarding state funding of elections? The Indrajit Gupta committee broadly placed that all recognised political parties will be extended support for their candidates to contest elections. It was an all-party resolution also. State funding of elections is a necessity at this time.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Union Budget 2022: Make life less taxing with these tips


NEW DELHI: Union Budget 2022-23 eased certain compliances for taxpayers. Even though there was no change in income tax slabs or standard deduction limit, the ease in compliance process and capping of surcharge at 15% on long-term capital gains (LTCG) have been welcomed by the industry.
Based on a trust-based governance mechanism, the Finance Bill has now allowed taxpayers to file an updated return within two years from the end of the relevant assessment year from three months at present. However, taxpayers do have to pay the price for omissions or mistakes in the form of additional tax.
Union Budget 2022: Complete coverage
Here are some tips that can help taxpayers:
1) Pay premium and save tax
The pandemic has taught us how important health insurance is. While you do have to pay those premiums, you can claim deduction of up to Rs 25,000 (Rs 50,000 for senior citizen) under section 80D for medical insurance paid for you and your family.
If you insure your parents, you get additional deduction of up to Rs 50,000 if they are 60 or above. No such deduction is allowed for parents-in-law yet.
If premium paid on your policy is providing cover for more than one year, the deduction shall be allowed on a proportionate basis.

2) Covid relief exempt
Any amount received by an individual from his/her employer or from any other person for treatment of any illness relating to Covid will not be taxable.
Also, any amount received by the family of an individual on his/her death due to illness related to Covid will not be taxable if such amount is received within 12 months of death (cap of 10L for payments received from persons other than employer)

3) EPF advance tax-free
Considering the need for funds in the pandemic, govt had said people can claim ‘non-refundable advance’ from PF account to the extent of basic wages & DA for 3 months or up to 75% of amount outstanding in account, whichever is less.

Employees’ Provident Fund Organisation has clarified that tax is not applicable on any advance (including Covid advance). But no notification has been issued.
As per general rule, PF withdrawal after completion of 5 years of continuous service may be considered as exempt subject to other conditions.

4) No returns for 75-plus
Resident senior citizens, aged 75 or above, earning only pension and bank interest income (from the same bank where pension is credited) are not required to file income tax return.
On the basis of the declaration submitted by such a taxpayer, bank has to compute taxable income and deduct tax thereon. Such relief is not available if the senior citizen has more than one bank account or has income other than pension and bank interest.
(With inputs from EY)





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

LIC IPO key: Divestment numbers missed, Budget dials down target


The government’s ambitious disinvestment agenda, flagged in the Budget announcement last year, has been scaled down.

While Finance Minister Nirmala Sitharaman had set a target of Rs 1.75 lakh crore through disinvestment in the Budget estimates in 2021-22, the target has now been revised to Rs 78,000 crore. And for the year 2022-23, she has set a softer target of Rs 65,000 crore.

Incidentally, Sitharaman did not use the word ‘privatisation’ in her speech this year, the hallmark of her Budget presentation last year — the Opposition has been targeting the government for selling what it says are established companies and businesses to the private sector.

Although a revised target of Rs 78,000 crore has been set for this financial year, a lot will depend on the proposed public issue of the Life Insurance Corporation, expected to hit the market by March.

In financial year 2020-21, the government had raised Rs 37,896 crore from disinvestment. In the current financial year, it has raised Rs 12,030 crore so far, according to official data.

The highest that the government has raised through disinvestment till date has been Rs 100,045 crore in 2017-18.

Privatisation and asset monetisation were the hallmark of last year’s Budget. While the government has been able to sell Air India and Neelachal Ispat Nigam Limited to the Tata Group and bring out a National Monetisation Pipeline, privatisation of state-owned banks is yet to gain momentum.

“Towards implementation of the new Public Sector Enterprise policy, the strategic transfer of ownership of Air India has been completed. The strategic partner for NINL (Neelachal Ispat Nigam Limited) has been selected. The public issue of the LIC is expected shortly. Others too are in the process for 2022-23,” Sitharaman said in her Budget speech Tuesday.

In the previous Budget, she had announced that the government would go for privatisation of two public sector banks. But till date, the “Draft Cabinet Note for amendments to relevant Acts are under inter-ministerial consultation,” Budget documents said.

The government said that improvement in the pace of economic recovery would provide new avenues for enhancing disinvestment receipts in the financial year.

The privatisation of two state-owned banks and downstream oil major BPCL is now expected to stretch into next year even as the Centre is racing against time to bring the LIC IPO before the end of this quarter.

While the enabling framework for privatisation of one of the four general insurance companies —a key Budget announcement — has been done with amendments to the General Insurance Business (Nationalisation) Act being cleared during the monsoon session of Parliament last year, the insurer targeted for the stake sale is yet to be finalised.

Markets participants expect the pending IDBI Bank stake sale also to spill over to next year.

The Banking Laws (Amendment) Bill, 2021, “regarding privatisation of two Public Sector Banks” was listed for introduction in the winter session of Parliament last year. But it was not taken up by the Cabinet, despite a draft being ready, a government official said. Opposition to privatisation by bank unions, pullback on the farm laws and the upcoming Assembly elections seem to have had a bearing on the timing of the privatisation of banks.

“…we propose to take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22. This would require legislative amendments and I propose to introduce the amendments in this Session itself,” Sitharaman had said in her Budget speech last year.

Other companies in line for privatisation include Shipping Corporation of India, BEML, Container Corporation of India and Pawan Hans. The government has received financial bids for Pawan Hans and Neelachal Ispat Nigam Limited, and the privatisation process has moved to the concluding stage.

The government had also put out a four-year National Monetisation Pipeline (NMP) worth an estimated Rs 6 lakh crore. Roads, railways and power sector assets will comprise over 66% of the total estimated value of the assets to be monetised, with the rest in sectors including telecom, mining, aviation, ports, natural gas and petroleum product pipelines, warehouses and stadiums.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Insurers Seek Higher 80C Investment Limit; Lower GST On Health Products


Currently, all financial purchases under the Section (80C) are capped at Rs 1,50,000.

Mumbai:

Insurance companies are seeking a separate deduction limit of Rs 1 lakh for insurance premium payment under Section 80C of the Income Tax Act in the upcoming Union Budget to bring in more people under the ambit of insurance.

The insurers also want reduction in the goods and services tax (GST) rate of 18 per cent currently applied on health insurance products to 5 per cent to make such products more affordable to common people.

Finance Minister Nirmala Sitharaman will present the Union Budget for 2022-23 on February 1.

“The industry has long pending expectations from the policy makers for incentivizing people to get life insurance by giving a separate deduction limit of minimum Rs 1 lakh for insurance premium payment under Section 80C,” Tarun Rustagi Chief Financial Officer Canara HSBC OBC Life Insurance said.

Life insurance is a long-term solution, unlike other financial products which have a shorter investment horizon and are covered under the 80C provision.

Currently, all financial purchases are clubbed under the same I-T deduction section (80C) capped at Rs 1,50,000.

“We expect the budget to consider creating a separate section for tax deduction on premium paid towards life insurance. This would enable a more logical segregation of customer’s funds into long-term and short-term kitties,” Edelweiss Tokio Life Insurance Executive Director Subhrajit Mukhopadhyay said.

Ageas Federal Life Insurance Managing Director and CEO Vighnesh Shahane said the Section 80 C is currently cluttered with several investment options such as Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS) and National Savings Certificate (NSC) amongst others.

“At least, a separate section for term policies would be helpful given the current scenario and the huge protection gap in the country,” Shahane said.

Future Generali India Life Insurance Senior VP and Head Products and Development Chinmay Bade said that life insurance is a proxy to social security in case of death of a person as well as survival and, therefore, the exemption limit of 1.5 lakh under Section 80C needs a revision.

As per IRDAI’s Annual Report-2020-21, insurance penetration in the country is at 4.2 per cent of the GDP vis-à-vis a global average of 7.4 per cent. As of March, 2021, the non-life insurance penetration stood at barely 1 per cent.

Liberty General Insurance CEO and Whole-Time Director Roopam Asthana said due to the uncertainty spurred by the Covid-19 pandemic, health insurance has become an everyday need in order to protect oneself from uncertainties and is more relevant than ever.

“Therefore, the government should consider a drastic reduction in the GST applicable on health insurance premiums which is currently charged at 18 per cent. This will encourage people to purchase health insurance and additional top-up plans to protect themselves from medical crises and emergencies,” Asthana noted.

Bajaj Allianz General Insurance Managing Director & CEO Tapan Singhel believes that the premium price over coverage plays a critical role in the purchasing decision for customers. With the 18 per cent GST applied to health insurance, the premium price goes up which becomes a deterrent in people opting for sufficient coverage, he noted.

According to Edelweiss General Insurance Executive Director & CEO Shanai Ghosh, protecting health is paramount and so health insurance should be viewed as an essential commodity.

“I would therefore request the Finance Minister to consider the reduction of GST for health insurance from the current 18 per cent to the lowest slab of 5 per cent. This move will also make health policies more affordable and push more and more people to buy a health cover,” Ghosh said.

Standalone health insurance player Niva Bupa Niva Bupa Health Insurance’s CEO and Managing Director (MD) Krishnan Ramachandran suggested that the government should consider doubling up the medical insurance limit under Section 80D to Rs 50,000 in light of higher medical expenses post COVID.

Echoing similar sentiments, Raheja QBE General Insurance MD and CEO Pankaj Arora said in order to encourage more people to purchase health insurance and to ensure that they purchase the appropriate quantity of coverage, section 80D income tax exemptions should be raised, ideally doubled.

As per Reliance General Insurance CEO Rakesh Jain, for the Union Budget 2022, the government should consider bringing healthcare facilities, such as diagnostic centers, specialty hospitals, wellness facilities, under the ‘infrastructure’ category.

“This will bring in funding from large institutions, including insurance companies that seek and have regulatory obligation of investments in ‘infrastructure assets’,” he said.

The insurance and healthcare sectors need to evolve together to boost access to quality and affordable healthcare to the masses, he said.

Willis Towers Watson’s Head (India) Rohit Jain said the insurance industry in India is recovering from a difficult year in which life and health insurance claims surged on account of the pandemic.

Understandably, the industry has been pressing for direct and indirect tax sops, primarily for cushioning from the pandemic impact, but also to improve penetration and increase the speed of insurance influence, he said.

“That said, it would be a tight rope walk for the government to maintain fiscal prudence by balancing these expectations with the general health of the exchequer, especially considering potential public health related expenditure in managing the pandemic itself,” Jain added.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)



Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here