July factory activity contracts to 9-yr low on confusion over GST implementation

July brought the biggest month-on-month decline since November 2008, just after the collapse of Lehman Brothers triggered a financial crisis

Factory activity plunged last month and had its deepest contraction in more than nine years after Prime Minister Narendra Modi's new tax policy severely hurt output and demand, a survey showed on Tuesday.

The Nikkei/IHS Markit Manufacturing Purchasing Managers' Index fell to 47.9 in July from June's 50.9, its first reading below the 50 mark that separates growth from contraction since December and its lowest reading since February 2009.

A Reuters poll predicted a modest July dip to 50.8. But July brought the biggest month-on-month decline since November 2008, just after the collapse of Lehman Brothers triggered a financial crisis and brought on a global recession.

An output sub-index fell to 46.3, its lowest since early 2009, from 51.7 in June, while contractions were reported across all major sub-indexes in the survey, including new orders, purchasing activity and employment.

"The introduction of the goods and services tax (GST) weighed heavily on the Indian manufacturing industry in July," said Pollyanna De Lima, economist at IHS Markit.

"New orders and output decreased for the first time since the demonetisation-related downturn."

On Nov. 8, Modi stunned the country by ordering the removal of 500-rupee and 1,000-rupee notes, which removed about 86 percent of the currency in circulation and put activity on the skids in a predominantly cash-reliant economy.

Another huge change in India has been implementation of a national GST, which took effect on July 1. While the near-term impact is expected to be negative, the economy should reap benefits in the medium to longer-term, many analysts say.

(Economy news)

In July, a lack of clarity among producers on the new tax system hurt output even though factories cuts prices for their goods.

Even though input costs rose, firms cut prices to try and stimulate weak demand, suggesting retail inflation - which fell to a five-year low in June - is likely to remain subdued in coming months, adding pressure on the Reserve Bank of India to cut rates on Wednesday.

"The weakening trend for demand, relatively muted cost inflationary pressures and discounted factory gate charges provide powerful tools for monetary policy easing," said De Lima.

Foodgrain output rose 5 times in 60 years but farmers are still distressed

52% of India's agricultural households are indebted; with an average outstanding loan of Rs 47,000

 

 

India’s foodgrain production rose five times over six decades, according to 2016 government data, the latest available. But with the average Indian farm half as large as it used to be 50 years ago and yields among the lowest in developing economies, both the agriculture sector and farmers have been driven to the brink, shows an IndiaSpend analysis.

Output of foodgrains in India increased from 50.82 million tonnes in 1950-51 to 252.22 million tonnes in 2015-16, according to the Agriculture Statistics At A Glance 2016 report. Yield increased as well, from 522 kg per hectare (ha) in 1950-51 to 2,056 kg/ha in 2015-16.

 Source: Agriculture Statistics At Glance 2016

Though it is the largest producer of pulses in the world, India’s pulses crop yield (659 kg/ha) was the lowest among BRICS countries in 2014.

Cereal yield in India was the second lowest in the BRICS list, above Russia (2,444 kg/ha), according to Food and Agriculture Organisation’s 2014 data, the latest available. China reported the highest yield of cereals (5,888 kg/ha) and pulses (1,725 kg/ha) among BRICS nations.

(economy news )

Why is India’s agriculture growth volatile?

India’s agriculture growth rate has been volatile, from 1.5% in 2012-13 to 5.6% in 2013-14, -0.2% in 2014-15 to 0.7% in 2015-16......

The primary reason, as we discussed, is that more than half of India’s farms still depend on the
monsoon, increasingly uncertain in an era of climate change. Climate change can impact crop yields, as well as the types of crops that can be grown in certain areas, by impacting agricultural inputs such as water for irrigation.
Yields in rainfed areas remain low, underscoring the importance of irrigation in the country. Similarly, rising temperatures are likely to worsen yield fluctuations of many crops, the agriculture report said.
Yield can be achieved by adopting non-conventional methods such as sprinkler, drip or micro-sprinkler irrigation, said the report.....

Average farm holding shrinks by half over 50 years
The size of the average farm holding in India declined from 2.28 hectares in 1970-71 to 1.15 hectares in 2010-11. These small and marginal l....(read more)

 

Bollywood actor Inder Kumar dies of cardiac arrest at 44

He has worked in more than 20 films

Bollywood actor Inder Kumar has passed away early Friday morning.

The 44-year-old actor suffered a heart attack at his residence in Four Bungalows, Andheri, Mumbai, at around 2 am.

He has worked in more than 20 films. Inder also shared the screen space with Salman Khan in movies like 'Wanted' and 'Tumko Na Bhool Payenge'.

The star was currently busy shooting for his upcoming movie 'Phat Paid Hai Yaar'.

The cremation will be held today evening at Yaari Road Shamshaan Bhoomi.

 

With own flag, Karnataka will be dutiful, but not silent, daughter of India

The demand for a flag follows a re-assertion of Kannada pride in the state in the last half decade

The current Karnataka State Anthem, Jaya Bharata Jananiya Tanujate written by KV Puttappa reads in translation as, “Victory to you Mother Karnataka, the daughter of Mother India! Hail the land of beautiful rivers and forests, hail the abode of saints!” 80-year-old Vasanthi Hegde, mother of one of the authors, remembers an earlier anthem from her schooldays which went "Udayavagali namma Cheluva Kannada Nadu", which loosely translates as "may our dear Kannada Land arise and dawn".

economy news

It took many years for that dawn to arrive. During British rule, areas that now comprise Karnataka were under 20 different administrative units. The princely state of Mysore, the Nizam's Hyderabad, the Bombay Presidency, and the Madras Presidency were among the prominent ones. The physical boundaries of the modern day Karnataka were created during the linguistic reorganization in 1956. However, the quest for building a common identity continued, even after unification.

ALSO READ: China And India File Rival Claims Over Tibetan Medicine

This was largely because people from the now merged areas, spoke different languages. Kannadigas in Hubli, that was earlier under the Bombay Presidency, also spoke Marathi. Urdu was often the dominant language in the Hyderabad region. Tuluvas in South Canara came from Madras Presidency which used Tamil as the main language. Further, Bangalore’s growing cosmopolitan posed a challenge to the Kannada language in the 1960s. Theatres patronized non-Kannada films.....(READ MORE)

 

One month of GST: Doing business more complicated than ever

Ambiguous rules, multi-rate sales tax have left firms confused on how to price their products

Tax crash course
New Delhi has launched an active outreach programme to educate companies and explain different provisions of the new tax. The exercise has also become a crash course for tax officials in the anomalies of the new tax structure.
Officials have discovered that holiday tour operators are charging the new tax not only for services provided in India but also for those offered abroad.
While vegetable seeds remain tax exempt, paddy, cereal and corn seeds now attract 5 per cent tax. This has hit sales at companies such as Monsanto, whose local seed merchants have no experience of paying tax.
"Our sales are getting hammered at a time when they would normally be booming," Arindam Lahiri, Monsanto's taxation lead in Asia & Africa, told Reuters. "This anomaly needs to be fixed urgently."
Revenue Secretary Hasmukh Adhia, overseeing the GST rollout, tweeted this week that nearly 8 million businesses were enrolled to pay the tax and the transition "is going on smoothly". He did not respond to a request for comment.
But for some companies, it has been anything but smooth...
(READ MORE)

Opposition to FM Jaitley: Scrapping Rs 2,000 note, bringing Rs 1,000 coin?

However, Jaitley did not respond even as the Opposition members insisted on clarification in RS

The Opposition in Rajya Sabha on Wednesday asked Finance Minister Arun Jaitley to clarify whether the government has decided to scrap the newly launched Rs 2,000 note and introduce a Rs 1,000 coin.

However, Jaitley, who was present in the House, did not respond even as the Opposition members insisted for clarification from him on the issue.(economy news)

Raising a point of order during the Zero Hour, Naresh Agrawal (Samajwadi Party) said: "The government has taken a decision to scrap Rs 2,000 note. The RBI (Reserve Bank) has been given order not to print the Rs 2,000 notes... If any policy decision been taken during the Parliament Session, the tradition is to announce it in the House."

So far, the RBI has printed 3.2 lakh crore pieces of Rs 2,000 notes. "And now it has stopped printing... RBI cannot bully. One note ban has been done, the second one is being planned. Let the Finance Minister say..," he said.

To this, Deputy chairman P J Kurien said, "that is RBI's action."

Agrawal then said that the earlier note ban decision was taken by the government and not the RBI. "The RBI board had opposed it but the government took the decision. The earlier decision (of demonetisation) was taken by the government, the second one is also from the government," he said.
Echoing his views, Leader of Opposition Ghulam Nabi Azad too sought clarification from the government on whether it was planning to introduce Rs 1,000 coins.

"Every day we read about a coin of [Rs] 1,000, 100 and 200. What is the actual status? Are we to go by what media is writing? The House is to be enlightened by the Finance Minister. What is the truth," he asked.

"Are we going to have [a] coin of Rs 1,000 coin. To carry coins, we have to purchase a bag? We must know. Our sisters have the purse. We shall also have to buy [a] purse just to carry the coins of Rs 1,000 (denomination)," he said and added that there was no politics in this issue.

Tiruchi Siva (Dravida Munnetra Kazhagam) said he cannot dispense with the media reports completely and sought clarification from the government on the issue.

Janata Dal (United) MP Sharad Yadav said the issue was serious as the rumours are strong, adding that the government should clarify and stop the rumours or else people will start returning Rs 2,000 notes.
 

Mr Gadkari, allowing driverless cars will generate more high-paying jobs

Autonomous vehicles are the logical next step for cab aggregators like Ola and Uber

economy news: Nagpur, the home town of Union Transport Minister Nitin Gadkari, is now a laboratory to test electric vehicles for public transport in India.

Cab aggregator Ola is testing a model that uses electric auto rickshaws, cars, and buses to make adoption of electric vehicles for mass transport viable. If the Nagpur experiment succeeds, Ola will execute the promise by its investor, Japanese internet firm Softbank, of running over a million electric vehicles across India. This vision requires massive investments in cars, buses, and the charging infrastructure. In addition, investments are also required in batteries, which India currently imports.

Both Ola and Uber have an asset-light model — they don't own the cars that run on their platforms. Instead, the cars are leased by the drivers, who repay the loans, spend on maintaining the cars, and then earn enough to fend for themselves. In scale, electric cars have better efficiency and are cheaper to run for more miles than fossil fuel-powered cars.

Till 2016, Ola and Uber splurged billions to woo thousands of drivers to their respective platforms. However, as the taps turned dry and investors pushed them towards profitability, they cut incentives for the drivers and increased prices. This move saw several thousand drivers and customers move away from the respective platforms. There are hundreds of cars on sale now as drivers are finding running on either platform unviable.

The country has seen a spate of protests from drivers seeking government intervention. In this context, Gadkari's statement that driverless cars will not be allowed in India in order to save jobs appears to be aimed at pacifying the unrest among drivers.

The electric cars vision is nice till Ola reaches a certain scale. Ola needs to make profits for itself and its investors. When the network effect comes into play, the winner dominates the market and the runner up becomes a distant second. Google and Facebook have become monopolies because of this network effect — the more users a company has, the harder it will get for rivals to compete with it.

So, after ensuring that there are thousands of electric vehicles on Indian roads and make it a habit for users to use their platform like they did for diesel run cars, their next logical move would be to look at autonomous vehicles.

(READ MORE)

Benami property: Aadhaar-PAN link opposed in name of privacy, says Jaitley

Arun Jaitley said, 'People should voluntarily made disclosures and come within the tax net'

Economy news : Finance Minister Arun Jaitley Monday said example needs to be set to create a deterrent ag the inst use of anonymous people to hide ill-gotten wealth, amid some politicians and their family members coming under the scanner for alleged benami deals.

Referring to opposition of PAN-Aadhaar linkage, he said it is an "effective anti-evasion measure" and will get rid of multiple PAN cards and mismatch in income and expenditure, but it is being opposed "in the name of privacy".

He also said that the government is using technology to reduce the interface between a tax department official and the taxpayer to not just cut compliance cost but also corruption and harassment.

Addressing tax officers at the Income Tax Day event here, he said that tax rates have to become more reasonable but for that to happen, the tax base has to be widened by including more people in the net.

"These days we are finding political leaders also resorted to (benami dealings)," he said, without naming anyone. "Therefore (we are) unearthing them."

He said the government has taken steps under the stringent Benami Transactions (Prohibition) Amendment Act, 2016 that provides for confiscating properties of those who use name of other people to convert unaccounted wealth into white.

"Unless we can set some examples, we set down right deterrent against such kind of practices" can this practice of benami properties end, he said.

Raids were conducted in recent weeks at various places including Delhi and Haryana over alleged Rs 1,000 crore benami land deals involving the RJD chief and his family.

Jaitley said that the situation where the compliant tax payer has to actually pay twice over -- once his own share of taxes and the second time a higher share to compensate the non-compliant, cannot be allowed.

"Our vision is: we will use technology, we will ensure that our procedure is simple, we will ensure that there is almost negligent interface between (tax) department and assessee, (and) we would like our rates to become even more reasonable, but to enable us to that we need to expand our base," he said.

People should voluntarily made disclosures and come within the tax net, he said.

India, on the one hand, boasts of being the fastest growing major economy in the world but on the other hand lacks in some of the essential expenditure, he said.

"A more empowered country will need to be a country which is empowered by honest and compliant taxpayers. The faster we can do it, the greater it will be in the larger interest of the country," he said. 

(READ MORE)

 

Harassed at workplace? Govt launches 'SHe-box' portal for sexual assaults

The sexual harassment electronic box will be made as 'interactive' as possible

 

The Women and Child Development ministry Monday launched an online platform to enable women employees of the central government to file complaints related to sexual harassment at the workplace.

"We are also going to soon conduct a national survey to assess the nature and magnitude of sexual harassment at the workplace," Union minister Maneka Gandhi said after launching the portal at her office here.

The WCD minister also instructed officials to make the 'SHe-box' (sexual harassment electronic box) as "interactive" as possible.

"To begin with, central government women employees can file complaints, but we are going to widen the ambit to include the private sector as well," she said.

"We just need to make a few changes in our online interface. Once it is done, employees from private companies would also be able to lodge complaints," Gandhi added.

The decision to host an online platform for sexual harassment cases was taken by the WCD ministry last October after the minister received complaints from women employees in various ministries.

The free JIO 4G feature phone is out and here are its key highlights

Prebooking starts from August 24 onwards, phone will go on sale starting September

 

 

Mukesh Ambani-backed Reliance Industries has launched the JioPhone for free during the 40th annual general meet that was held in Mumbai on July 21. The feature phone with smartphone alike features will go on testing beta phase starting August 15 and the preorder will begin starting August 24. The phone will go on sale in September to users who prebook the device. ( The details on how to pre-book with device have yet not been shared by RIL).

Even though the phone is effectively free, there is a catch in the form of one-time security deposit fee of Rs 1,500, which is refundable only after 36-months, that the user need to pay.

In a bid to bring the 50 crore feature phone customers of India on to Reliance Jio network, the company launched the phone with cost-effective tariff plans. Reliance Jio is offering free voice, data, Jio apps and SMS to its users at a monthly recharge of Rs 153. Jio will also offer a weekly Rs 54 plan valid for 7-days and Rs 24 plan valid for 2-days with the purchase of the phone. Both these plans come with free voice, data, apps and SMS.

ALSO READ: RIL AGM: Mukesh Ambani announces 1 bonus share for every 1 share held

The phone is the first long-term evolution (LTE) ready device that can play videos too using Reliance Jio apps. The phone is equipped with 22 Indian regional languages and can be operated using voice commands.

(read more)

Ram Nath Kovind leads, 'Not upset', says Meira Kumar : Presidential Election 2017 Results LIVE

Incumbent Pranab Mukherjee's term as President ends on July 25

The counting of votes is scheduled to begin at 11 am on Thursday, July 20, but it is believed that Kovind has an edge over Kumar. However, should he win, the margin of his victory will be interesting to note, given that there were reports of many instances where voters from Opposition parties also voting for Kovind in the election.

“The voting was close to 99 per cent. I think this would perhaps be the highest-ever percentage,” Anoop Mishra, Lok Sabha, secretary general and returning officer for the election, had said on Monday.

Mishra had said while the sanctioned strength of the Lok Sabha (LS) and the Rajya Sabha (RS) is 776 (543 and 233), 771 MPs were eligible to cast their votes. There are two vacancies each in the LS and the RS, while one BJP MP, Chhedi Paswan, did not have voting rights following a judicial pronouncement.

Of the total 771 MPs who are entitled to vote, 768, or 99.61 per cent, cast their votes. Likewise, of the 4,109 MLAs entitled to vote, 4,083 or 99.37 per cent cast their votes, officials said.

 

CATCH ALL THE LIVE UPDATES: Presidential Election 2017 Results

03:08 PM
The states where the counting has finished include Assam, Arunachal Pradesh, Andhra Pradesh, Bihar, Jammu and Kashmir, Haryana and Himachal Pradesh.
03:06 PM
Do you know why the ballot boxes are known as ‘Mr Ballot Box’?
This is because the boxes, which reached the parliament two days ago, are sent to Delhi via plane through a senior security official. The official, who is trusted to maintain the secrecy travels in Business class compartment along with the box, reorted ABP Live.

Here comes the catch: The ballot box has a seat reserved for itself next to the official carrying it. Therefore, as it is not transported as a cargo, it is known as ‘Mr Ballot Box.’
02:51 PM
Number of invalid votes: 21
02:51 PM
Total votes polled in favour of Ram Nath Kovind is 522 in value of 3,69,576
02:45 PM
In Bihar, it was a close fight with Kovind getting 22,490 and Meira Kumar 18,867.
02:44 PM
According to Lok Sabha Secretary General Anoop Mishra, the Returning Officer for the July 20 election, Kovind secured 60,683 value of votes after ballots from four states - Andhra Pradesh, Arunachal Pradesh, Assam and Bihar - were counted.
02:28 PM
I am not upset, why should I be upset? I am a fighter, I fought for the belief and faith of majority of my countrymen and women, says Meira Kumar who has not flared better than Kovind.
02:26 PM
In Andhra Pradesh and Sikkim, the Opposition's nominee receieved 0 votes, meanwhile, the NDA's canditate got 27,666 and 210 votes in the respective states.
02:23 PM
States where Ram Nath Kovind trumped over Meira Kumar: Uttar Pradesh, Maharashtra, Bihar, Madhya Pradesh, Tamil Nadu, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Odisha, Jharkhand, Assam, Haryana, Chattisgarh, Jammu & Kashmir, Uttarakhand, Goa, Manipur, Nagaland, Arunachal Pradesh, Sikkim
02:23 PM
States where Meira Kumar bagged more votes than Kovind: West Bengal, Karnataka, Kerala, Punjab, New Delhi, Himachal Pradesh, Meghalaya, Mizoram, Tripura, Puducherry
02:09 PM
Counting began at 11 am with the ballot box of Parliament House being opened first, followed by ballot boxes received from states in alphabetical order. (READ MORE)

Presidential election 2017 India: Kovind or Meira Kumar, who will be the next Rashtrapati?

Incumbent Pranab Mukherjee's term as President ends on July 25

Presidential election 2017 Results On July 17, of the total 4,880 valid voters — 4,109 members of legislative Assemblies (MLAs) and 771 elected members of Parliament (MPs) — 99.49 per cent cast their vote to elect the next President of India. In the fray were the National Democratic Alliance's (NDA's) candidate Ram Nath Kovind, and the Opposition candidate Meira Kumar.

The counting of votes is scheduled to begin at 11 am on Thursday, July 20, but it is believed that Kovind has an edge over Kumar. However, should he win, the margin of his victory will be interesting to note, given that there were reports of many instances where voters from Opposition parties also voting for Kovind in the election.

“The voting was close to 99 per cent. I think this would perhaps be the highest-ever percentage,” Anoop Mishra, Lok Sabha, secretary general and returning officer for the election, had said on Monday.

CATCH ALL THE LIVE UPDATES: 

11:21 AM
Result will be declared by 5 pm

11:20 AM
There will be eight rounds of counting, and announcements will be made after every round.

11:11 AM
Here are the visuals of counting of votes:



11:07 AM
Counting of votes for Presidential election 2017 has begun.

11:05 AM
Kovind’s sister-in-law Vidyavati has been fasting since 19 July for his victory. She is the wife of Shiv Balak, Kovind’s brother.

11:03 AM
Ram Nath Kovind is set to win the election by a 70 per cent margin

11:02 AM
Ballot boxes from 29 state capitals and the union territory of Puducherry have reached Parliament House amid tight security.

11:01 AM
Both Ram Nath Kovind and Kumar are from the Dalit community and have canvassed hard by visiting states to seek support of legislators.

10:58 AM
The candidate who secures at least one vote more than 50 per cent of the total votes will enter into the Rashtrapati Bhavan.

10:56 AM
President Pranab Mukherjee will demit the office on July 25.

(READ MORE)

All family members' Aadhaar to be linked with ration cards for PDS

Now, Aadhaar numbers of all members of a family and not just the head of a household will be linked

The Aadhaar numbers of all members of a family, not just the head of a household, willAadhar to be linked with their ration card  to ensure an unhindered supply of goods under the public distribution system (PDS), the Uttar Pradesh government informed the Allahabad High Court on Tuesday.(economy news)

The state government placed a copy of a circular, issued to the effect on July 17, before a division bench comprising Chief Justice D B Bhosale and Justice M K Gupta which was hearing a PIL filed by seven members of the Nagar Palika Parishad of Kandhla in the Shamli district.

The petitioners had moved the court contending that Aadhaar enabled PDS was introduced in the state last year wherein ration was to be distributed after scanning the thumb impression of the head of the household.

ALSO READ : Right To Privacy: 9-Judge Bench Will Decide On Aadhaar Issue Today

The petitioners had further contended that in many cases the head of the household happened to be an elderly person, physically incapable of visiting a PDS shop, and such a system deprived the concerned family of the benefits which was in violation of the Food Security Act.

The state government had, on July 11, sought time for taking "appropriate action in the matter".

It placed the circular, issued by principal secretary, civil supplies, to all district magistrates, before the court on Tuesday.

Expressing satisfaction with the move, the court disposed off the petition.

Privacy a fundamental right? Here are 5 concerns with Aadhaar

A centralised and inter-linked database like Aadhaar will lead to profiling and self-censorship

Privacy has been a key focus in the recent debate on Aadhaar. This is a very welcome development. Aadhar Privacy is being interpreted in different, equally valid, ways by different sets of people. But the differences in interpretations are not always obvious to those who participate in the discussions. For instance, when computer scientists use the word privacy, they tend to it interpret from a narrow ‘data security’ perspective, whereas the lawyers in the Supreme Court have been highlighting the civil liberties angle to it. This has resulted in groups talking past each other – the solutions that the computer scientists propose, for instance, (like stronger standards for data security, including encryption) are not satisfactory to those who highlight the civil liberties aspects of privacy. Constructive conversation on the issue requires a more elaborate look ate the different dimensions of privacy.

Five privacy concerns

Possibly the narrowest view of privacy is the technical ‘data security’ point of view. The focus there is on what data need to be secure (the Aadhaar number, demographic information or biometrics), whether data stored in the Classless Inter-Domain Routing is secure (such as the encryption standards or the probability of hacking) and what would the consequences of data breaches be (for instance, some people ask what is the harm if an Aadhaar number is publicly displayed). The response of the Unique Identification Authority of India (UIDAI) and others is that data are encrypted using the highest standards, that access is severely restricted, and that, in any case, there have been no security breaches so far.(economy news)

Experts, however, believe that for centralised databases the question is not whether it can be hacked, but when. For instance, Bruce Schneier told Pranav Dixit, “When this database is hacked – and it will be – it will be because someone breaches the computer security that protects the computers actually using the data.”

A related concern that has been highlighted is that even if data are secure, with Aadhaar-enabled Payments System (AePS), the Aadhaar project has created a vulnerability to identity fraud, even identity theft. The idea behind AePS is, as Prime Minister Narendra Modi put it, ‘Your thumbprint is your bank’. Fingerprint impressions, however, can be easily reproduced. For instance, recently Hindustan Times reported that 200 students in Mumbai replicated their fingerprints on a widely-used resin to fudge biometric attendance. Easy harvesting of biometrics traits and publicly-available Aadhaar numbers increase the risk of banking fraud. In the light of this emerging financial technology infrastructure which rides on Aadhaar and biometrics, the recent ‘Aadhaar leaks’ scandal (whereby Aadhaar numbers of lakhs of people were displayed on government portals) is significant. The emerging AePS architecture opens the door to identity theft. Even in the absence of data breaches, that is an alarming breach of privacy.

• Why is Aadhaar different?
• Aadhaar and the ‘personal data economy’
• Usual, inadequate responses

(read more)

Income inequality: In India, a CEO earns 416 times more than his employee

The seriousness of India's commitment to end income disparity has been ranked 132nd out of 152 nations

The seriousness of India's commitment to end income disparity has been ranked 132nd out of 152 nations owing to low spending on health and education, a crumbling tax system and wide gaps in gender pay.

Prepared by Development Finance International and Oxfam, the first index to measure the commitment of governments to reducing the gap between the rich and the poor is based on three main indicators — government action on social spending, tax and labour rights — areas critical to reducing the gap.

The report, the result of the investigation for a year, says that while countries such as Sweden, Chile, Namibia and Uruguay have taken strong steps to reduce inequality, countries such as India and Nigeria perform poorly overall. Among the rich countries, the United States earns a bad rating.

The World Bank predicts that by 2030, almost half a billion people will still be living in extreme poverty. Back in 2015, 193 governments promised to reduce inequality as part of the United Nations' Sustainable Development Goals (SDGs).(economy news)

The report raps India particularly hard on the knuckle but not before revealing that in the country, the chief executive officer (CEO) of a top information technology (IT) firm brings in a massive 416 times the salary of his company’s typical employee.

India managed to secure a lowly 149th position on the health, education and social protection spending indicator, ranking below nations like Yemen, Senegal, Congo and Serbia.

Oxfam calculates that if India were to reduce inequality by a third, more than 170 million people would no longer be poor. It also questioned the lack of a concerted effort by the government to tackle inequality.

India secured the 91st rank among nations on the progressive structure and incidence of tax indicator. "The tax structure looks reasonably progressive on paper, but in practice, much of the progressive tax is not collected," the report said.

While many countries are collecting very little tax overall, India collects just 16.7% of gross domestic product (GDP), while comparable economies such as Indonesia collects 11.9% and South Africa manages to collect over 27%....read full story 

A step-by-step guide for obtaining your GSTIN

The GST registration process has been reopened from June 25 and will continue for the next 3 months

Under the VAT and Service Tax regime, TIN number and Service Tax Registration Number were issued by the state and the Centre. However, under the Goods and Services Tax (GST) regime, all taxation will get consolidated into a single platform and taxpayers will be registered under a single authority. All the taxpayers who migrate and register under GST will receive a GSTIN — Goods and Service Tax Identification Number. Here is what the GSTIN format looks like-

Under the GST regime, every business providing goods and services with a turnover exceeding Rs 20 lakh is required to register as a normal taxpayer. This registration is important because only a registered business can avail benefits like the seamless flow of Input Tax Credit (ITC) on their raw material purchases.

The GST registration process has been reopened from June 25 and will continue for the next 3 months.(economy policy)

How to get a GSTIN

1. Log on to that GST online portal www.gst.gov.in

2. Go to 'Register Now' and fill in Part A of the application with your name, e-mail ID and mobile number

3. The portal will verify your details by sending an OTP to your mobile and email

4. Once the verification process is completed, you will receive the Application Reference Number (ARN) via mobile or email

5. Now you can fill Part B of the application using the ARN. The documents you will require in this step include:

• Photographs
• Constitution of taxpayer
• Proof(s) of place of business
• Bank account details
• Authorisation form

6. Fill in all the information and upload all the documents that are required in the application and submit the application using DSC or Aadhaar OTP..

(Also read the Advantages of getting a GSTIN & Penalties for not registering under GST)

Want to save on tax? Here are deductions you can use while filing ITR

You can legally reduce your taxable income with these common tax-saving deductions

Let’s be honest, if given a choice, none of us would like to pay tax on the income we earn. But we have to and we should, because income tax is an important source of revenue for the government. This revenue is used by the government to build the nation. India is a developing nation and very few Indians earn an income that can be taxed. This is why if you’re one of those who earn a taxable income, you should proudly and honestly pay income tax.(economy policy)

But having said that, there are certain ways by which you can legally reduce your taxable income that you should make use of. The government allows for certain tax-saving deductions that you can use to lower your taxable income. You can effectively use these deductions to pay less tax. The following table lists common tax-saving deductions and their limits.

Section	Deduction on	FY 2016-17
Section 80C	Investment in PPF Employee’s share of PF contribution NSCs Life Insurance Premium payment Children’s Tuition Fee Principal Repayment of home loan NPS Investment in Sukanya Samridhi Account ULIPS ELSS Sum paid to purchase deferred annuity Five-year deposit scheme Senior Citizens savings scheme Subscription to notified securities/notified deposits scheme Contribution to notified Pension Fund set up by Mutual Fund or UTI Subscription to Home Loan Account Scheme of the National Housing Bank Subscription to deposit scheme of a public sector or company engaged in providing housing finance Contribution to notified annuity Plan of LIC Subscription to equity shares/ debentures of an approved eligible issue Subscription to notified bonds of NABARD	Rs. 1,50,000
80CCD(1B)	Additional contribution to NPS	Rs. 50,000
80TTA(1)	Interest Income from Savings account	Maximum up to 10,000
80GG	For rent paid when HRA is not received from employer	Least of rent paid minus 10% of total income Rs. 5000/- per month 25% of total income
80E	Interest on education loan	Interest paid for a period of 8 years
80EE	Interest on home loan for first-time homeowners	Rs 50,000
80D	Medical Insurance – Self, spouse, children Medical Insurance – Parents more than 60 years old	Rs. 25,000 Rs. 30,000
80DD	Medical treatment for handicapped dependant or payment to specified scheme for maintenance of handicapped dependant Disability is 40% or more but less than 80% Disability is 80% or more	Rs. 75,000 Rs. 1,25,000
80DDB	Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD For less than 60 years old For more than 60 years old For more than 80 years old	Lower of Rs 40,000 or the amount actually paid Lower of Rs 60,000 or the amount actually paid Lower of Rs 80,000 or the amount actually paid

All of these deductions are popularly known as Section 80 deductions. A taxpayer can claim the deductions that are applicable to him or her. (read more)

Jan Dhan deposits touch Rs 64,564 cr; Rs 300 cr added during demonetisation

PSBs account for Rs 50,800 cr, rural banks for Rs 11,683 cr, private banks for Rs 2,080 cr

 

Deposits in Jan Dhan accounts have touched a new high of Rs 64,564 crore, of which over Rs 300 crore came in the first seven months of demonetisation, according to government data.

The Pradhan Mantri Jan-Dhan Yojana (PMJDY), Prime Minister Narendra Modi's pet scheme, aims at bringing hitherto unbanked areas and people under a formal banking system. Bank accounts can be opened with a zero balance under the PMJDY.

Finance ministry data, accessed through a Right to Information (RTI) application filed by a PTI correspondent, show that there were about 28.9 crore PMJDY accounts on June 14 this year.(economy policy)

Of these, 23.27 crore accounts were with public sector banks, 4.7 crore with regional rural banks and 92.7 lakh with private ones.

These accounts together have deposits of Rs 64,564 crore, the Finance Ministry data show. Public sector banks account for Rs 50,800 crore, regional rural banks for Rs 11,683.42 crore and private banks, Rs 2,080.62 crore.

On November 16, 2016, there were 25.58 crore PMJDY accounts with an aggregate deposit of Rs 64,252.15 crore, Minister of State for Finance Santosh Kumar Gangwar had told the Lok Sabha.

Thus, between November 16 last year and June 14 this year, Rs 311.93 crore had been added to Jan Dhan accounts.

The PM had on November 8 last year announced the demonetisation of 500-rupee and 1,000-rupee notes.

Following reports of alleged misuse of Jan Dhan accounts to convert black money into white after the note ban, the government had warned people that they would be penalised if they indulged in such activities.

In a press release issued on November 18, the government had said, "There are some reports received that some people are using other persons' bank accounts to convert their black money into new denomination notes."

This, it had said, had also been reported in Jan Dhan accounts.

The government had said such activities could attract penalty if it was established that the amount deposited in the account did not belong to the account holder.

"Also the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under the Income Tax Act," it had said.

Alongside other facilities, PMJDY accounts also allow an overdraft facility of up to Rs 5,000 in one account per household, preferably held by a woman member.

Aadhaar mandatory for school kids too! Visit your bank to speed up process

Govt has asked states to complete Aadhaar enrollment of school children by August 31

Centre has asked Karnataka and 15 other states to complete Aadhaar enrollment of school children by August 31 and submit the data to ensure serving of the mid-day meal to them "in a seamless manner." According to Deccan Herald, this comes as the Human Resource Development (HRD) Ministry observed that many of these 16 States were lagging far behind in completion of the task, with Nagaland having enrolled just 15 percent of 1,59,449 students to Aadhaar.

In Karnataka, only 70 percent of the total number of students have so far been enrolled to Aaadhar card. A total of 49,10,765 students enrolled in the Government schools in the State.

“The stipulated date for completing 100% Aadhaar enrollment is August 31, 2017. I earnestly suggest the Aadhaar enrollment campaign be given an added thrust by the Government of Karnataka in a time bound manner,” school education department secretary of the HRD Ministry Anil Swarup stated in his letter to Karnataka Chief Secretary Subhash C Khuntia.

As per date with the Ministry, just 23% of the total school students have been enrolled to Aaadhar in Andhra Pradesh, 26% in Uttar Pradesh, 28% Odisha, 42% in Rajasthan, 61% in Madhya Pradesh and 63% in Bihar.(economy news)

West Bengal Government has not shared any update on the Aadhaar enrollment of school students despite HRD Ministry's “repeated requests and reminders,” an official said.

Aadhaar enrolment centres at banks

To simplify the process, now, one out of 10 bank branches will have Aadhaar enrolment facility. The Unique Identification Authority of India (UIDAI) has asked private as well as public sector banks to set up Aadhaar enrolment facility in at least one out of 10 branches in the coming weeks, a top official has said.

Suitable changes have been made recently in Aadhaar regulations to facilitate this.

At present, there are 25,000 active enrolment centres across the country but they operate from their own premises. However, none of these centres are being operated from bank premises... read full story 

Lack of machines delayed counting of banned notes: RBI chief tells panel

Panel gives RBI Governor Urjit Patel 15 days to submit data on deposits of demonetised currency

Lack of adequate machines and related infra has delayed the counting of demonetised currency that has come back into the system, the Reserve Bank of India (RBI) Governor Urjit Patel is learnt to have told a parliamentary panel on Wednesday.

 

During the meeting that lasted more than three hours, Urjit Patel, according to sources said that the central bank is yet to arrive at the final figure since counting was still in progress.
The parliamentary standing committee on finance, that will table the report on demonetisation in the monsoon session starting July 17, gave the RBI chief 15 days time to submit data on deposits of invalidated Rs 500 and Rs 1,000 notes, besides counterfeit currency in circulation.
The RBI has cut staff holidays to complete the counting of currency which returned to the system after demonetisation, and has also ordered more machines to expedite the process, Patel told the panel, informed sources.
According to sources, the panel told Patel that since the RBI will have to close its accounts as on June 30 and prepare the balance sheet for 2016-17, it must be in a position to share the number.(economy news)
“While the governor shared some data, he did not give exact figures and said that they are still being counted,” said a source.
The RBI transfers its surplus to the Union government every year that ends on June 30.

The number's game
During the more than three-hour long meeting of the standing committee on finance, Patel took a lot of questions but members said he did not provide any “specific number” on the amount of money that came back to the system after November 8
In January too, the RBI governor had appeared before the committee and had told the members that he would submit a statement on the amount of money that came back into the system after demonetisation
Patel told the panel that the RBI has cut down on holidays to complete counting of the junked currency note and that its staff is working “round-the-clock” except on Sundays

Appearing before the panel for the second time, Patel was accompanied by three deputy RBI governors - B P Kanungo, S S Mundra and N S Vishwanathan...Read full story 

Sikkim standoff: China's economic stakes in India is no worry for Beijing

India may hold the promise of a big market for China, but that promise is yet to be fulfilled

 

The sikkim standoff between India and China over a border dispute in the Sikkim region has given rise to speculation over how the latter would respond to the situation. The Chinese leadership has ruled out any talks with India until the Indian troops vacate what it considers to be its territory. In response, the Indian foreign secretary has noted that differences should not become disputes between neighbours.

But the stalemate continues, bringing into sharp focus its impact particularly on China’s economic ties with India. On social media including many WhatsApp groups, a campaign is already on to show how Indians can respond to China by rejecting goods that are produced in that country and sold in India.(economy policy)

It is a campaign charged with nationalistic emotion. But how seriously can such a campaign really impact Chinese exports or investments? To assess that, it is important to look at some numbers on India’s trade with China and the flow of Chinese investments into India.

There is no doubt that Chinese direct investments in India have been rising steadily. From being the 37th largest foreign investor in India in 2011, it has now scaled up to the rank of the 17th largest foreign investor in 2017.

 INDIA-CHINA foreign trade

That appears to be a fast rise in the pecking order, but actually the size of total Chinese investments in India and the annual flows are very little, almost insignificant either as a share of India’s total foreign investment or as a per cent of China’s total investments abroad.

Consider the following numbers. Between April 2000 and March 2017, India received cumulative foreign investments of over $332 billion. Of this, however, China’s share is only $1.63 billion. In 2010-11, China invested only about $2 million in India. That year, India had received total foreign direct investments (FDI) of over $14 billion..

read full story

Free education, health card for women: National policy gets GoM nod

A Group of Ministers, headed by External Affairs Minister Sushma Swaraj, approved the draft

A Group of Ministers, headed by External Affairs Minister Sushma Swaraj, on Tuesday approved a draft national policy for women which proposes free education for girls from poor families and a health card for all women.(economy policy)

The draft National Policy for Women, 2017, also moots that a woman accused of a non-heinous crime, who has remained an under-trial for one-third of her jail time, should be given bail. The move is likely help poor women who are accused of petty crimes and can't afford a bail, a spokesperson of the women and child development ministry said.

The policy document will now be sent to the Cabinet for its nod.

"The Group of Ministers has approved the policy. Some changes were made in light of the deliberations over four meetings between March and June. In its fifth meeting today, the GoM adopted the policy document," the spokesperson said.

The GoM comprises minister from 11 ministers, including external affairs, women and child development, finance, agriculture, social justice, HRD and law.

The latest draft is a revised version of the document released in May last year.

GST: hotels, eateries overcharging you? How to get the math right

Food served at restaurants attract tax at two rates under GST - 12 per cent and 18 per cent

As consumers, we are hardly aware of the components included in the restaurant bills. Next time do check your bill to see if the proper GST or goods or services tax rate has been levied. The Central Board of Direct Taxes (CBDT) on Tuesday clarified on rates of GST for restaurants.(economy news)

Food served at restaurants attract tax at two rates under GST - 12 per cent and 18 per cent (including both CGST (Central GST) and SGST (State GST)) - depending on whether it is an AC restaurant or whether the restaurant has the licence to serve alcohol.

Understanding your restaurant bill

If you revisit your food bill from the pre-GST fine-dine experience, you’ll find Service Tax, Service Charge, VAT being added over and above the food value.

VAT: This was the tax charged on the food portion of your bill.

Service tax: This was the tax charged on the services provided by the restaurant.

Service Charge: This is a charge applied by the restaurants and not by the government. It is not mandatory to pay the service charge, as per government rules.

However, the rates under GST are vastly different than what you would find before the tax policy change. Let us look at these changed rates below.

GST Rates on Eating Out

* Non-AC roadside eateries (non-alcohol) will charge tax at 12%. This also includes your local delivery restaurants.

* AC restaurants (both those that serve alcohol and those that don’t) will charge tax at 18%

* Non-AC eateries serving alcohol will charge 18%.

* Pre-packed food: The rate of tax on a parcel of pre-packed and pre-cooked namkin sold from restaurants will attract tax at 12 per cent. Also, in case of food parcel cooked as per order, GST rates will be applicable according to service of such food in the restaurant.

* Restaurants up to an aggregate turnover of Rs 75 lakh that opt for the composition scheme will charge GST at the rate of 5 per cent.

* Potable alcohol does not come under GST.

*Upender Gupta, GST Commissioner, explained that if food bill in a restaurant is Rs 500, Rs 1,000 is the alcohol bill, then GST should be levied only on Rs 500

The tax department has reiterated that no restaurant can charge GST at 28 per cent.

The tax department has also clarified that "the actual GST incidence will be lesser due to increased availability of input tax credit." Many input credits which were hitherto not available would be available now to be utilised against GST liability, says Sandeep Sehgal, director-tax and regulatory at Ashok Maheshwary & Associates LLP. (Read more)

Cow protection organisations end up in govt net amid NGO crackdown

Nine gaushalas and over a hundred institutions with Muslim names issued show cause notice

The latest home ministry crackdown on non-compliant non-government organisations (NGOs) might have hit some holy cows. The list of some 5,922 units that have not filed their annual returns and have been served a show cause notice includes several institutions working for cow protection.(economy news)

Business Standard went through the list to find at least nine such NGOs that had "Gau" or "Cow" in their names. These nine NGOs are Shri Haryana Gaushala, Gauv Sevva Trust (Gst), Shri Gaushala Kathar Jungle, Ratanlal C Bafna Gau Seva Anusandhan Kendra, Shri Pinjara Pole Gaushala Sewa Trust, Shri Dayalu Gau jeav jan parmarthseva sansthan Kherapa, Shri Harihar Maharaj Kamdhenu Gaushevashram Dharmik Trust, Sri Panch Dev Mahamandir Gau Sewa Ashram Samiti, and Care For Cows Public Charitable Trust. The list could have other such organisations, without an express giveaway in their names, that are serving the cause of the bovine considered holy by a section of Hindus and the ruling Bharatiya Janata Party.

Protection of cows and creating gaushalas was part of the party’s manifesto in the recent Uttar Pradesh Assembly polls. The spurt in 'cow love' has fuelled the rise of vigilante groups indulging in lynchings across various parts of the country. Besides these, there were about a dozen organisations in the list whose names suggested that they worked in the area of animal welfare. Among minority institutions, over 100 organisations with Islamic or Arabic names have been issued the show cause notice. These included at least five institutions named after Dr Zakir Hussain... Read full story 

Auditors' to disclose property related transactions above Rs 20,000 to I-T

The move will increase transparency in financial dealings and help check tax evasion

Auditors will now have to disclose details of transactions exceeding Rs 20,000 in connection with immovable property in reports, which they file with the Income Tax (I-T) authorities on behalf of their clients.(Economic news) 

Under the Income Tax Act, professionals earning gross receipts of more than Rs 50 lakh and companies with a turnover of Rs one crore and above are required to get their accounts audited. The turnover limit for companies has been increased to Rs two crore from Assessment year 2018-19.

So far, auditors in their report had to mention details of loans, and repayment exceeding Rs 20,000 in the tax audit report filed along with Income Tax returns. Henceforth, all transactions exceeding Rs 20,000 relating to immovable property will have to be mentioned in a specified format in the report.

The move will increase transparency in financial dealings and help check tax evasion.

As per the notification by the Income tax department, auditors will have to furnish details of transactions regarding "each specified sum" exceeding Rs 20,000 from financial year 2016- 17. These would include money paid or received with regard to immovable property.

The auditor report will also have to specify details of the mode of payments whether account payee or bearer cheque, or through electronic system.

Through the notification, the tax department has revised the form 3CD for tax audit report under section 44AB of Income Tax Act.

The amended rules will come into effect from July 19, 2017 and will apply for assessment year 2017-18 for which the returns would be filed in the coming months.

Nangia & Co Associate Director Shalu Kedia said the notification mandates "enhanced reporting" as disclosure now needs to be given with bifurcation into -- all transactions, cheque, bank draft transactions, and cheque and bank draft transactions which are not account payee.

Before amendment, the disclosure requirement was to report whether or not transactions are through account payee cheque or bank draft, she said.

"By doing this, the tax department has ensured greater transparency in modes of transaction," Kedia said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)