BUDGET SESSION : RAFALE JETS WILL STRENGTHEN OUR AIR FORCE, SAYS KOVIND

The Budget session is expected to be a stormy one, with Lok Sabha elections just around the corner. Catch LIVE updates on Budget 2019 session

Interim Budget 2019: The Budget session of Parliament began on Thursday, a day before the Interim Budget 2019 will be presented by Finance Minister Piyush Goyal.

With the Lok Sabha elections around the corner, this year’s Budget session is expected to be a stormy one. The Budget session began with President Ram Nath Kovind addressing a joint session of Parliament. The President said, “India was going through “uncertain times” ahead of the 2014 Lok Sabha polls and the Narendra Modi government after assuming power resolved to work towards a ‘New India’, giving hope to the people.”

He said the NDA government has been trying to pass the triple talaq bill to empower Muslim women so that they can live a life without fear. The government has been working to fulfil hopes and aspirations of all sections of people, he said. Highlighting the government’s achievements and various welfare schemes, Kovind said 21 crore poor people were covered under the PM’s life insurance scheme, while over 2 crore households got power connection as part of the PM’s Saubhagya scheme.

EVENT HIGHLIGHTS

• President Ram Nath Kovind leaves for Rashtrapati Bhawan.
• After decades, Indian Air Force will use ultramodern Rafale aircraft in coming months: Kovind
• President Ram Nath Kovind concludes his speech.
• President Kovind said, “6.8 crore Indians are filing income tax returns”
• Kovind says India is world’s second largest manufacturer of mobile phones
• Under Jan Dhan Yojana, 34 crore people have opened a bank account, said Kovind
• GST is a long-term policy and is a boon for the business sector. The taxpayers in the country trust this government: Kovin To enhance the opportunites for high-level professional education, govt is setting up news educational institutions

 Read full source: Budget Session 2019 

To bridge fiscal deficit, RBI likely to pay govt $5.8 bn interim dividend

The dividend could help Prime Minister Narendra Modi’s administration bridge a widening budget deficit following a drop in tax collections

Interim Budget 2019: The Reserve Bank of India (RBI), having changed management last month following a clash with the government, is likely to transfer an interim dividend of Rs 300-400 billion ($4.32 billion-$5.8 billion) to the government by March, according to three sources with direct knowledge of the matter.

The dividend could help Prime Minister Narendra Modi’s administration bridge a widening budget deficit following a drop in tax collections, and would come after the government pushed the RBI for the additional funds ahead of a national election due by May.

Read Source: Business Standard or BS

Former finance ministry official Shaktikanta Das was appointed as the new governor of the Reserve Bank of India (RBI), following resignation of Urjit Patel last month amid tensions over the dividend payout and other issues.The government and RBI have now appointed a panel to look into the issue around the sharing of the RBI’s reserves.

“We are absolutely sure that an interim dividend of more than 300 billion rupees would be paid before March end,” one of the sources told Reuters.The RBI did not respond to an email seeking comment, while the Finance Ministry declined to comment.

Keep Reading : Budget 2019

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...

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

Highlights of Jaitley's fiscally prudent Budget 2017

Here are the highlights of Jaitley's budget for the 2017/18 fiscal year that begins on April 1.

FISCAL DEFICIT

* The budget 2017 seeks to pursue prudent fiscal management to preserve financial stability.

*Fiscal deficit at 3.4% 

*Revenue deficit stands reduced to 2.1% in Fy18

GROWTH

* Jaitley says India seen as an engine of global growth

DEMONETISATION

* Demonetisation "a bold and decisive measure", will make GDP bigger and lead to higher tax revenues - finance minister

* Hit to economy from government decision to outlaw high-denomination notes will be "transient", effects of demonetisation not expected to spill over to next year

* Pace of remonetisation has picked up and will soon reach comfortable levels

* Surplus money in the banking system will lower borrowing costs, increase credit flow

INFLATION

*Consumer price index inflation is expected to remain within the central bank's mandated range of 2 to 6%

SPENDING

* India to spend more in rural areas, infrastructure and poverty alleviation

* The government will continue process of economic reforms for the benefit of poor

* Allocation under MNREGA increased to Rs 48,000 cr from Rs 38,500 cr; highest ever allocation

• AGRICULTURE
• Jobs
• Railway
• Tax
• Political Funding
• FINANCE MINISTER COMMENTS

READ FULL 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:

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 : 

Jaitley may cut taxes, lack of indirect-tax data may make it tough

Battling slump in demand after shock demonetisation, Finance Minister Arun Jaitley may look to spur consumption through lower taxes in next week's Budget 2017 Date , but he faces a peculiar situation as precise projections of indirect tax collection in 2017-18 are unavailable due to GST.

Finance Ministers usually weave around their welfare spending proposals based on projections of direct and indirect tax collections in the fiscal.

Projections of collection in direct taxes, made up of personal and corporate tax, would be available but with the rollout of Goods and Services Tax (GST) deferred till July 1, no reliable projection of indirect tax collection for 2017-18 fiscal is likely to be available, tax experts said.

The GST is also to subsume state VAT.                                                

And typically the Centre would account for roughly half of the total nationwide GST revenues after excise, service tax and VAT are subsumed and weave around its budget.

But this year is peculiar, experts say. "No reliable projection of the GST revenue is available because the GST Council is yet to decide which product or service will be taxed at what rate. In absence of that one cannot have a reliable projection of GST revenue collection," a tax expert said.

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<<<

Budget wish list: IT, ITes & e-commerce

Industry size

Approx: $143 bn (IT - ITeS) plus $17 bn (e-commerce)
Employment figure: Approx 3.9 million 
Contribution to GDP: About 9.3% 

Key issues or areas of concern for the sector

Budget 2017 Date| Global political uncertainty due to the recent developments in the US and UK could impact growth for the Indian IT sector as these are one of the largest markets for the Indian IT-ITeS companies. Given that emphasis could be to create jobs in the US could have negative influence on outsourcing of jobs from outside the US, which in turn could have implications on mobility of IT specialists

The new GST law poses multiple challenges for e-commerce firms, especially around compliance and related formalities, with e-commerce platform being liable to collect TCS (tax collected at source) on supply of goods and services by supplier.

Due to significant automation and changes in technology, employees are being re-skilled, and work culture is witnessing a major shift with enhanced focus on digital skills and just-in-time training.

Industry demands
Defer applicability of Place of Effective Management and clarify provisions around claim of foreign tax credit

Definition of Equalisation Levy is ambiguous and clarity is required. There is absence of clarity on availability of credit. Notification has to be issued to clarify that the levy is in nature of tax and eligible for credit.|READ MORE 

Sebi wishlist for Budget 2017: Here are the key points

Ahead of Union Budget 2017, the capital market regulator Securities and Exchange Board of India (Sebi) has sent its list of recommendations to the Finance Ministry. Sebi has asked the government to encourage stock trading and investments in mutual funds by easing tax rules. 

The regulator has also recommended lowering the securities transaction tax (STT) for tax trading and a slew of other measures, a report published in Economics Times said. 

Lower STT for trading 

After its introduction in 2004, STT was fully deductible against the income tax payable. But, after four years, an amendment was made to allow STT as a deductible business expenditure and the rebate under section 88E was also withdrawn. 

Now, Sebi has recommended lowering the STT for tax trading. 

Increase limit for tax-saving equity mutual fund 

For relief under Section 88E, Sebi has recommended an increase in the investment limit for tax-saving equity mutual fund schemes from Rs 1.5 lakh to Rs 2 lakh. 

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

Budget 2017 Wishlist: Expectations from the telecom sector

Industry size: Total mobile services market revenue in India is expected to touch $37 billion in 2017

Employment figure: About 4 million of direct and indirect employment in India 

Mobile industry contribution to GDP: About 6.5% to India’s GDP in 2015

Key issues or areas of concern for each sector | Budget 2017|

 On sale of recharge coupons/ pre-paid starter packs, the revenue on talk-time need to be deferred for tax purposes over the period of usage

IRU rights acquired, being in the nature of commercial rights, fall within the definition of “intangibles” and, therefore, should be eligible for depreciation for tax purposes. This aspect should be clarified without further delay to end related litigation

Industry asks

1.Clarification on treatment of distributor margins discount given by telecom operators and TDS rate on it to be minimised

2. Under the proposed GST regime, telcos will have significantly higher compliance costs due to multiple-state registrations. This additional burden on the sector should be minimised

>>> Click Here For Full Article <<<

Railways seeks gross budgetary support of Rs 50,000 cr for FY'18

The Ministry of Railways has sought gross budgetary support (GBS) of Rs 50,000 crore for 2017-18, though the Finance Ministry is likely to agree for only Rs 40,000-45,000 crore, a senior government official said.

"They (Railways) have sought Rs 50,000 crore as GBS, and I think they might get Rs 40,000-45,000 crore...In fact, the railways does not have the capacity to absorb more than Rs 30,000 crore," the official said.

Gross Budgetary Support (GBS) of Rs Rs 40,000 crore was announced in the 2015-16 Rail Budget 2017. However, the Finance Ministry for the current year had slashed it to Rs 28,000 crore, citing slow spending pace.

Ending 92-year-old tradition, the government on September 21 decided to merge rail budget with the general budget and agreed in-principle to advance the date of its presentation in Parliament on February 1.

The government has also decided to do away with the Plan/ Non-Plan expenditure classification in Budget 2017-18 and replace it with 'capital and receipt.