CBSE won't conduct exams anymore

National Testing Agency to conduct entrance examinations from now

The Union Minister for Finance and Corporate Affairs, Arun Jaitley while presenting the Union Budget 2017  in Parliament on Wednesday said that the government proposes to establish a National Testing Agency as an autonomous and self-sustained premier testing organisation to conduct all entrance examinations for higher education institutions.

This would free CBSE, AICTE and other premier institutions from these administrative responsibilities so that they can focus more on academics.

He also said that the government proposes to leverage information technology and launch the SWAYAM platform with at least 350 online courses.

In his Budget Speech, the Finance Minister said this will enable students to virtually attend the courses taught by the best faculty; access high-quality reading resources, participate in discussion forums; take tests and earn academic grades. Access to SWAYAM would be widened by linkage with DTH channels, dedicated to education.

READ MORE...

Service tax rate left untouched; GST outreach programme to be launched

Currently, services are taxed at 14%. After cess, it works out to around 15%

On road to goods and service tax (GST), Finance Minister Arun Jaitley on Wednesday refrained from making any major changes in the indirect tax regime.

He did not go for the much-expected increase inservice tax rate to align with GST. Currently, services are taxed at 14%. After cess, it works out to around 15%.

He said the government would launch an outreach programme with industry from April 1, 2017. Though Jaitley did not give any date for the roll-out of the new regime, M S Mani, senior director, indirect tax, Deloitte Haskins & Sells LLP, said: “The reaffirmation of the Governments focus on GST was very reassuring and it now appears that the country is all set to move to GST from July 1.”

Mani said the absence of any major changes in excise and service tax confirms that we are "definitively moving" to GST from July 1, 2017. “The emphasis on GST groundwork already done in the FM’s speech including specific steps taken and proposed and the absence of any major changes in Excise and Service tax is a clear indication that we are going to seeGST in India from 1st July 2017”.

READ MORE>>>>

Only 'sher-o-shayari' in Budget, nothing for job creation, says Rahul

The Congress vice-president, however, supported the proposal on political funding

 

Slamming the Budget 2017 , Congress vice-president Rahul Gandhi on Wednesday said it lacked a clear vision and had nothing for farmers, youths and job creation.

"We were expecting fireworks, instead it was a damp squib.

"It is just 'sher-o shayari' in the budget. There is nothing for farmers and youth and nothing for job creation. There is no clear vision," the Congress vice-president said soon after Finance Minister Arun Jaitley presented the Budget for 2017-18 in Lok Sabha.

Highlighting the need for employment creation, Rahul said, "The main issue facing India today is the creation of jobs. How are you going to solve that problem? On that front there was nothing. No vision, no idea and for farmers absolutely there is nothing."

Rahul, however, supported the proposal on political funding.

"Whatever steps are to be taken to cleanse political funding, we will support it," he said.

Read Full Story <<<<

Budget relief to middle class, 5% income tax for Rs 2.5-5 lakh earners

 

The Budget2017 gave relief to on personal income tax front, mainly the salaried group in the middle class, by halving the tax to five per cent up to the income of Rs 5 lakh to ease the pains of demonetisation. However, those earning above Rs 50 lakh and up to Rs one crore will have to shell out additional 10 per cent surcharge.

The cut in the tax rate for the lowest slab will also save up to Rs 12,500 for incomes in other slabs, increasing disposable income of the middle class that can provide spur to the slowing down economic growth. The present super rich tax in the form of 15 per cent surcharge will remain for those earning income over Rs one crore. 

The finance minister also put more money in the hands of small and medium enterprises by reducing the corporate tax rate to 25 per cent from the current 30 per cent for annual turnover up to Rs 50 crore. Ninety six per cent of companies which file returns come under this category. 

Besides middle class and SMEs, the finance minister also addressed the concerns of foreign portfolio investors by exempting India-based funds them from the indirect transfer provisions. The government had put on hold the recent rules by the Central Board of direct taxes in this regard.

READ MORE ARTICLE

Budget 2017-18: Railway companies to be listed on stock market

Government to also identify other PSUs for listing soon

While presenting the Union Budget 2017-18 in Lok Sabha on Wednesday, the Union Finance Minister Arun Jaitley has said that the shares of Railway Public Sector Enterprises (PSEs) like IRCTC, IRFC and IRCON will be listed in stock exchanges.

The government will encourage strengthening the CPSEs through consolidation, mergers and acquisitions and soon create an integrated public sector ‘oil major’, he added.

Stating that the Pradhan Mantri Mudra Yojana (PMMY) has proved an overwhelming success in extending funds for the deprived sections, Jaitley doubled the budget target under the scheme to Rs 2.44 lakh crores.

Easing the stressed legacy accounts of banks, Jaitley earmarked Rs 10,000 crore for recapitalisation of banks during 2017-18 and assured need-based additional allocation.

Stating that the disinvestment policy announced in the last budget will continue, Jaitley further said that the government will put in place a revised mechanism and procedure to ensure time bound listing of identified CPSEs on stock exchanges. This will foster greater public accountability and unlock the true value of these companies, he added.

Jaitley said the CPSEs will be integrated across the value chain of an industry through consolidation, mergers and acquisitions. By these methods it will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders, he added. Possibilities of such restructuring are visible in the oil and gas sector.

The government proposes to create an integrated public sector ‘oil major’ which will be able to match the performance of international and domestic private sector oil and gas companies.

The Finance Minister said that the Exchange Trade Fund (ETF), comprising shares of ten CPSEs, has received overwhelming response in the recent Further Fund Offering (FFO). The government will continue to use ETF as a vehicle for further disinvestment of shares. Accordingly, a new ETF with diversified CPSE stocks and other Government holdings will be launched in 2017-18, he added.

READ FULL STORY:

BUDGET LIVE: Budget on schedule, Cabinet meeting to be held shortly

• 12:05 PM

  IRCTC will be listed on stock exchanges, says FM
  
  

  12:05 PM

  Railway CPSE's such as IRCTC, IRCON to be listed
  
  

• 12:05 PM

  FIPB to be abolished in 2017-18. What it means: Major reforms; removes big headache for foreign investors
  
  

• 12:03 PM

  Increasing India's strategic oil reserves was long-pending move, especially since crude oil prices hit $40/bbl in 2015.
  
  

  12:03 PM

  Railway lines of 3,500 km to be commissioned in 2017-18
  
  

• 12:03 PM

  Proposal: Railways to implement end-to-end connectivity for some commodities with the help of logistics firms. Impact: Logistics stocks rally; Allcargo Logistics, Gati, VRL Logistics up nearly 1%
  
  

  12:02 PM

• 12:02 PM

  Airport Operation Management for tier-II airports via PPP
  
  

• 12:02 PM

  Focus on Swachh Railways: All railway coaches will have bio-toilets by 2019, says Jaitley

BUDGET LIVE: Budget on schedule, Cabinet meeting to be held shortly

• 10:47 AM

  Saddened by E Ahamed ji's demise but Budget will be presented. We have to keep in mind that Budget is a constitutional obligation, will have to be presented: Sumitra Mahajan
  
  

• 10:46 AM

  Budget will be presented today, says Lok Sabha Speaker Sumitra Mahajan.

• 10:44 AM

  Arun Jaitley will present Budget 2017-18 at 11 am today
  
  

• 10:40 AM

  Hits & Misses: Five key capital market announcements from the previous Budget CLICK HERE FOR THE STORY
  
  

• 10:37 AM

  Hits & Misses: Five key capital market announcements from the previous Budget CLICK HERE FOR THE STORY
  
  

• 10:36 AM

  BUDGET EXPECTATION: On the tax revenue front, the government could provide some personal income tax relief to lower income brackets to compensate for the economic slowdown post demonetization, and could also reduce corporate tax rates. In the FY16 budget, the government had announced a lowering of the average corporate income tax rate to 25% from 30% over four years -- GOLDMAN SACHS

Stocks snap climb ahead of Economic Survey, Budget

The Sensex on Monday logged its first drop in five sessions, slipping 33 points, after investors took profit and adopted a cautious line ahead of the Economic Survey and the Union Budget 2017 amid weak global leads.

The Economic Survey is due to be released on Tuesday and the Budget on Wednesday.

Investors across the globe were spooked after US president Donald Trump imposed immigration curbs that sparked criticism, adding to fears that his 'America First' policy may prove destabilising for the world. This led to a lower closing in Asia and a muted opening in Europe, traders said.

The 30-share barometer opened a touch lower and settled down 32.9 points, or 0.12 per cent, at 27,849.56. The index had rallied 848 points in the past four sessions.The 50-share Nifty too dropped 8.5 points, or 0.1 per cent, at 8,632.7. Intra-day, it traded between 8,617.7 and 8,662.6.

"Pressure prevailed due to weak US Q4 gross domestic product data," said Vinod Nair, head of research, Geojit BNP Paribas Financial Services.

The uptrend in the previous four sessions was largely because of fresh foreign inflows, enthusiasm of domestic investors amid optimism on better-than-estimated earnings.Tata Motors took the biggest hit, plunging 2.18 per cent, followed by Tata Steel (1.56 per cent).

Oil and Natural Gas Corporation, State Bank of India, Hero MotoCorp, Bajaj Auto, NTPC, Tata Consultancy Services, Coal India, HDFC Bank, ITC, ICICI Bank, Mahindra and Mahindra, Maruti Suzuki, Hindustan Unilever Limited, Wipro, Adani Ports, and Axis Bank lost too.

Read Full Story:

Staffing industry seeks resolution of tax woes in Budget

Wants TDS to be cut from 10% to 2%, and applied on commission earned, not on gross invoice value.The staffing industry, representing companies such as Team Lease and Quess, wants finance minister Arun Jaitley to resolve the tax anomalies it faces, in the upcoming Budget 2017.

The Indian Staffing Federation says that its demand assumes significance since post-demonetisation it is the formal sector which will grow and the staffing industry will play a crucial role in that.

The industry represents contract hiring in organised industry done through tri-partite agreements -- between the company that is hiring, the person hired and the staffing industry.

The Federation said tax deducted at source (TDS) is imposed on the gross invoices received by its members from its client companies, whereas it should be on just the commission received by the staffing companies.

While this amount is adjusted later, it takes about a year to happen, creating cash flow problems for staffing companies, says Suchita Dutta, executive director of the Federation.

At the same time, the Federation said its members topped the list of India staffing firms, as per the recent report published by Staffing Industry Analysts. The report indicated that the Indian staffing industry was estimated to be worth Rs 27,000 crore in 2015 and is forecast to grow by 12 per cent in 2016 and 10 per cent in 2017.

READ MORE STORY :

Budget 2017: PM Narendra Modi looks forward to 'fruitful' session

Ahead of the budget session he urged all political parties will work together for people's benefit

Prime Minister Narendra Modi on Tuesday ahead of the Budget 2017 hoped that the current session will be "fruitful" and all political parties will work together for people's benefit.

"We had discussions with every political party individually and collectively. There should be productive and detailed discussion of the budget during the session," Modi said while addressing the media here.

"I urge all parties to help in smooth functioning of the session. I hope for fruitful discussions. We aim at positive and meaningful debates for public interest.

"I am hopeful all political parties will work together to move forward," he said.Modi also said: "This is the first time the budget is being presented on February 1."

"Everyone would remember that earlier budget used to take place at 5 pm. This practice was changed during former Prime Minister Atal Bihari Vajpayee's time," Modi said.

"Today (Tuesday) a new tradition will begin. The budget will incorporate the rail budget as well," he added.

READ MORE STORY<<<

Budget 2017: Post cash ban shock, Modi govt seeks to soothe voters

Finance Minister Arun Jaitley will present the most challenging budget of his tenure on Wednesday, as he seeks to appease voters still hurting from the radical monetary shock therapy that his government has administered.

The budget 2017 comes less than three months after Prime Minister Narendra Modi's bold and risky gamble to outlaw high-value old currency bills, which has slammed the brakes on Asia's third-largest economy and hit the poor particularly hard.

According to one survey, a third of people say their incomes have fallen, with nearly a tenth saying they are much worse off.

Judging how quickly the economy will recover is a tough call, making Jaitley's revenue projections a shot in the dark.

A delay in the launch of a new national sales tax has added to the uncertainty. The Goods and Services tax (GST) is expected to improve tax compliance and check evasion, but the union and state governments have yet to work out its details.

Officials say his fourth budget will likely offer modest tax concessions and ramp up spending to ease the pain caused by Modi's decision in November to scrap 86 percent of the currency in circulation in a bid to purge the cash-reliant economy of illicit "black money" and expose untaxed wealth.

Paying for those giveaways may require Jaitley to slow the pace of fiscal tightening, officials told Reuters.

As well as buoying consumer spending, which contributes nearly 60 percent to gross domestic product, sops to voters could also shore up the fortunes of Modi's nationalist party in five regional elections for which voting begins on Saturday.

The electoral outcome, particularly in the battleground state of Uttar Pradesh that is home to one in every six Indians, is being viewed by analysts as a mid-term "referendum" on Modi.

Read Full Story>>>

Budget 2017: Govt convenes all-party meet today, seeks Opposition's support

The government has convened an all-party meeting today ahead of the Budget 2017 Session of Parliament to seek opposition's support for the smooth conduct of proceedings in both the Houses.

Lok Sabha Speaker Sumitra Mahajan has also called a meeting of leaders of political parties in the House same evening.

The Budget Session will start from Tuesday with President Pranab Mukherjee's address to a joint sitting of the Lok Sabha and the Rajya Sabha.

The Economic Survey will also be presented on the first day of the session. General Budget will be presented on Wednesday.

The two Houses will have a month long recess from February 10 to March 8 to enable the Standing Committees to consider the Demands for Grants of Ministries and Departments and prepare their reports.

Read More Story : 

Measures expected from India's annual budget that could impact markets

Investors in India are bracing for higher taxes and less incentives from the government's annual Budget 2017 to be unveiled on February 1 as the focus shifts to wringing out revenues to finance giveaways and higher public investment to support the economy.

Below are the main elements expected in the measures that could impact markets?

Guidelines for General Anti-Avoidance Rules (GAAR)

- Government set to announce additional details behind GAAR, which will be implemented starting on April 2017.

- GAAR is meant to crack down on tax havens, making it harder to claim some tax exemptions.

- The government on Friday said GAAR would not apply for foreign investors based on a jurisdiction because of genuine commercial reasons and not just to benefit from exemptions under India's tax treaties with other countries.

- India also said investors who meet so-called limitation of benefits criteria for individual tax treaties would be exempt from GAAR.

- Limitation of benefits seeks to ensure foreign companies or investors based in countries with special tax treaties with India meet certain criteria such as minimum level of investment and a commercial presence in the relevant jurisdiction

READ MORE STORY<<<

FMCG companies pin hopes on growth oriented Budget 2017

After taking a demonetisation hit, FMCG companies are pinning hopes on a growth oriented Budget to see a revival in consumer confidence and create demand both in urban and rural markets.

"We are expecting a growth-oriented Budget with various stimuli to revive consumer confidence... Proactive reforms to stimulate demand by increasing the money in the hands of the emerging middle class and rural India, this will help bring FMCG growth back on track," Godrej Consumer Products Ltd Managing Director Vivek Gambhir told PTI.

Kolkata-based Emami too is expecting a growth oriented budget "to boost consumption, increase public investment, promote digitisation, broaden tax base and lead higher growth" and improvement of business sentiments.

"It Budget 2017 Date should aim at clarifying policies particularly with respect to GAAR, POEM, and GST etc. As with every other Budget, restraining deficits and delivering higher growth is going to be a great challenge," said Emami CFO & CEO Finance Strategy & Business Development N. H Bhansali.

He further said: "While tax rates are expected to reduce with increased basic exemption limits, but tax payer’s base is expected to broaden. Ease of doing business would be another focus area in currently subdued business environment. Agriculture, infrastructure and service sectors are also expected to get due attention and support."

Marico too is looking for a Budget in which the government would focus on boosting the rural sector and agricultural productivity besides providing benefits to the salaried taxpayers in order to increase disposable income in the urban markets, which would drive consumption.

Read More Source:

Budget 2017: Experts fear govt will take too many fiscal risks

India's finance minister is likely to borrow more than originally planned when he presents the Budget 2017 date on Feb. 1, senior aides and officials said, despite counting on revenues from a national sales tax whose launch date is still unknown.

Arun Jaitley is looking at how to fund giveaways to tax payers and higher public investment to help nurse Asia's third-largest economy back to health after the government's shock decision in November to abolish high-value banknotes.

That is raising concern among some economists and investors that the government will take too many fiscal risks.

Yet officials say that, given the choice, they would choose growth sustained by state investment over a fiscal straitjacket.

"Some degree of flexibility on fiscal discipline should not be seen as irresponsible fiscal management," one senior government official told Reuters, requesting anonymity due to the sensitivity of the matter.

Heroic assumptions

Consumption, Employment, Growth: Three-point agenda for Budget 2017

The Budget 2017 Date is not only being advanced by a month but also amalgamates the Railway budget with the Union Budget. Coming in the backdrop of impending election in the states of UP and Punjab and in the aftermath of demonetisation, we believe consumption, employment and growth could be key themes of the budget this year.

While demonetisation has made a bold start by channelizing the idle cash in the economy into the banking system, it needs to be followed through with measures to improve tax compliance and initiatives to boost the digital payment economy.

We believe it is an opportune time to boost consumption demand and business sentiment, which has shown some weakness following demonetisation. A hike in the personal tax limits can be a measure which helps towards this end. The government has rightly focused on boosting the low cost housing segment with interest subsidies and we believe that some tax exemptions on interest for home loans will provide greater thrust to this segment. This can also help in employment generation as the housing sector is one of the largest employment generators. 

In the past, the Government had spoken about its intention of bringing down corporate tax rates. This year, the corporate sector is expecting some relief from the budget on this front.

From the perspective of the Mutual Fund industry we believe demonetisation will accelerate the move from physical assets to financial assets. The mutual fund industry is ideally placed to channelize the savings of retail investors into the capital markets. Over the last few years there has been a welcome increase in the participation of investors into mutual funds, especially through SIPs. 

Indian retail investors have shown remarkable resilience in the last few years and have emerged as a good counter-balance to volatile FII flows into India’s capital markets. This nascent trend needs to be encouraged. We have seen good investor interest in Equity Linked Savings Schemes (ELSS), which qualify for tax benefits under Section 80 C of the Income Tax Act up to an investment limit of Rs 1.5 lakh in a financial year. However, a large number of investors are not able to take advantage of this, as ELSS competes with a number of other tax saving instruments within the 1.5 lac ceiling. Having an exclusive tax exemption for ELSS schemes will help broaden the investor base. 

READ FULL STORY<<<

Modi govt plans expansive budget despite growth, revenue worries

India's finance minister is likely to borrow more than originally planned when he presents the budget 2017 on Feb. 1, senior aides and officials said, despite counting on revenues from a national sales tax whose launch date is still unknown.

Arun Jaitley is looking at how to fund giveaways to taxpayers and higher public investment to help nurse Asia's third-largest economy back to health after the government's shock decision in November to abolish high-value banknotes.

That is raising concern among some economists and investors that the government will take too many fiscal risks. Yet officials say that, given the choice, they would choose growth sustained by state investment over a fiscal straitjacket.

"Some degree of flexibility on fiscal discipline should not be seen as irresponsible fiscal management," one senior government official told Reuters, requesting anonymity due to the sensitivity of the matter.

 A fiscal advisory panel, which includes central bank head Urjit Patel, has advocated widening the budget deficit to "slightly over" 3 percent of gross domestic product to free up funds for road, railway and irrigation projects.| READ MORE..

Budget 2017 Wishlist: Expectations from the agriculture sector

Industry size: All Categories: $236 billion ( Rs 1,600,000 cr)

Employment figure:  90 million person days 

Contribution to Gross Value Added (GVA): Agriculture contributes 15.4% of GVA

Key Issues or Areas of Concern

Budget 2017 | Infrastructure development initiatives for post-harvest products are in its preliminary phase. Post-harvest losses account for Rs 92,651 cr.

Instances of crop failure due to adverse climatic conditions is another major issue faced by the agricultural economy.

PMFBY (Pradhan Mantri Fasal Bima Yojana) has shown a good uptake from the farmers which minimises risk of crop failure through insurance but the overall loss still remains a big challenge. 

Large cultivable area still remains unirrigated, thereby limiting the per unit productivity of agricultural operations.

Industry demands  : Enhanced Public investment for creation of infrastructure for the development agriculture such as roads, markets, warehouses, etc.

Improving the productivity and quality of agricultural produce to bring Indian farmers at par with the global standards.

READ FULL STORY>>>

Budget 2017: Crisis and opportunities in education sector

The Budget 2017 is an opportunity for the government to concentrate on improving school education for over 260.5 million children who enrolled in elementary and secondary school in 2015-16–children who will form the core of India’s working-age population, one billion by 2030, the largest in the world.

“Business as usual” will not solve the problem, submitted Pratham, an education nonprofit, in a pre-budget consultation with India’s finance ministry. “Unless major shifts are undertaken on an urgent basis to build children’s foundational skills, we are losing huge opportunities each year for improving the life chances of an entire generation of children and youth in this country,” the consultation note added.

India Spend reached out to the education ministry for a comment on the 2017-18 budget, but we had not received a response at the time of publishing. (This story will be updated if and when the ministry responds.)

Read Full Story>>>

Note ban impact on gold buying will wane after Budget 2017: WGC

India's demonetisation drive has impacted gold demand in the short term but buying is showing signs of revival and post the presentation of the national Budget 2017 on February 1, the market will be back to normal, says the India chief of World Gold Council.

"In November and December (during the demonetisation drive) certainly there was some impact. But people have started buying again. We hope soon after the budget, buying will normalise," Somasundaram P.R., Managing Director, India, World Gold Council, told IANS in an interview.

He also said demonetisation will have a positive impact on the gold industry in the long run as it will curb grey market trades substantially. "Overall impact of demonetisation will be positive -- industry will come under organised business. Of course the transition will take some time," he said.

"Business during the demonetisation period was hurt as people were mostly busy exchanging old notes and genuine buyers stayed away, fearing they might come under the tax scanner."

READ FULL STORY