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India’s Textiles, Garment Sector Impacted Due To Bangladesh Unrest:…

10 August 2024
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New Delhi: Finance Minister Nirmala Sitharaman on Saturday said that there was some uncertainty in India’s textiles and garments sector following the political turmoil in Bangladesh but it was too early to say what the overall impact on the economy would be.

She said that Indian businessmen have made investments in Bangladesh in good faith and these resulted in increasing exports and creating more jobs in Bangladesh. “I hope these investments which have benefited Bangladesh remain safe,” she remarked.

India has a policy of allowing liberal imports from low-income countries and this has also helped to spur growth in the Bangladesh economy, she added. “I hope the new regime in Bangladesh will settle the problem sooner rather than later so that the people of Bangladesh and India can get back to their normal situation,” the Finance Minister said.

She also said that the External Affairs Minister has made a statement in Parliament that India has stepped up its security along the Bangladesh border. Prime Minister Narendra Modi had extended his best wishes to the newly sworn-in head of the Bangladesh interim government, Nobel laureate Professor Muhammad Yunus. PM Modi expressed hope for a swift return to normalcy and called for the protection of Hindus in Bangladesh.

PM Modi’s request came in the backdrop of media reports stating that Hindus and other minorities were being attacked in Bangladesh following the ouster of the Sheikh Hasina government in violent protests led by radical elements.

Several hundred Bangladeshi nationals, mostly Hindus, gathered at different points along India’s border with Bangladesh as they are trying to flee the strife-torn country. The BSF has tightened security along the border and has even resorted to forming a human shield to prevent Bangladesh nationals from entering the country. Several such incidents were reported from the India-Bangladesh border in West Bengal.

Meanwhile, newly-appointed Bangladesh foreign policy adviser Touhid Hossain said that Dhaka will maintain a balance in ties with big powers and establish good ties with all countries. Hossain has been a career diplomat and is a former Foreign Secretary of Bangladesh.

Science & Environment

Taxpayers Can Choose Between Old And New LTCG Regime:…

7 August 2024
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New Delhi: Finance Minister Nirmala Sithraman said in the Parliament on Wednesday that the primary aim of the Union Budget for 2024-25 is to simplify the tax regime and ensure equitable treatment of all asset classes, as she confirmed the relaxation of the real estate indexation rules.

Referring to the amendment to the long-term capital gains (LTCG) regime proposed on Tuesday, the Finance Minister said, “The new tax regime is simpler and gives more flexibility to the taxpayer. The old regime is still not dissolved. Individuals can choose between the two regimes.”

“This LTCG option on real estate is aimed at no additional tax burden for taxpayers. We have the courage of conviction to change. Amendments in the Budget are brought in even later so that they represent the common people’s aspirations. “The amendment gives a choice to the taxpayer to calculate and see what works better for them. The current amendment ensures that there will be no additional tax burden on the people,” she said.

“Under the current amendment, in the case of assets acquired before July 23, taxpayers can compute tax under the old scheme with indexation or new scheme and pay the lower tax. We have given an option,” the Finance Minister explained, adding, “The middle class has been in our mind. Removal of indexation in LTCG on real estate was not done due to revenue consideration but simplification.”

She said the middle class has benefited from various tax proposals in Budgets presented by the Modi government. The effective tax on annual income of Rs 15 lakh was reduced to 10 per cent in 2023, which was further reduced this year as well under the new I-T regime, Sitharaman pointed out.

She also said that the pending litigation and demands sorted under the ‘Vivad se Vishwas’ scheme helped the middle-class and small businesses. On the Customs side, the budget Bas taken several steps to boost domestic production and enhance export competitiveness, she said.

Customs duty reductions are aimed at lowering the cost of raw materials. Rate cuts have also been proposed for the labour-intensive industries, along with exemption and reduction on 27 critical minerals such as lithium, cobalt, and duty rate cuts for gold and silver, she added.

The Finance Minister also said that the rate cut in Customs duties on several inputs for leather and textiles is aimed at boosting employment and bringing down costs. There will be a comprehensive review of the rate structure in the next six months, the Finance Minister said.

She also said that the angel tax has come as a big relief for startups. Angel tax was introduced in 2012, but the UPA government did not remove it, she pointed out. “We have moved away from the days of tax terrorism,” Sitharaman said. She also said that till July 31 (2024-25 AY), as many as 5.2 crore taxpayers comprising 72.8 per cent of the total have moved to the new tax regime, reflecting the success of the system.

A record 7.28 crore income tax returns have been filed in 2024-25, which is 7.5 per cent higher as compared to the 6.77 crore filed last fiscal. As many as 58.57 lakh were first-time filers in 2024-25, indicating a widening of the tax base.

Science & Environment

Finance Bill 2024: FM Sitharaman Proposes Amendments to LTCG…

7 August 2024
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The Budget, presented on July 23, had proposed a lower 12.5 per cent rate of LTCG tax, down from 20 per cent, while doing away with the indexation benefit.

Replying to a debate on the Finance Bill, Finance Minister Nirmala Sitharaman said the rollover benefit will be available to taxpayers who buy new immovable property utilising the capital gains on the sale of old property.

Finance Minister Nirmala Sitharaman on Wednesday said the contentious LTCG tax proposal on real estate is being amended to give option to taxpayers to compute tax liability under the old system or at reduced rates without indexation, and pay the lower of the two.

Replying to a debate on the Finance Bill, Finance Minister Nirmala Sitharaman said the rollover benefit will be available to taxpayers who buy new immovable property utilising the capital gains on the sale of old property.

The Budget 2024-25 proposal to remove indexation benefit in calculation of long term capital gains on sale of immovable properties evoked sharp criticism from various corners, including opposition parties and tax professionals.

The Budget, presented on July 23, had proposed a lower 12.5 per cent rate of LTCG tax, down from 20 per cent, while doing away with the indexation benefit.

The major amendment in the Bill relates to restoration of indexation benefit on sale of properties bought prior to July 23, 2024. Now, individuals or HuFs who bought houses before July 23, 2024, can opt to pay LTCG tax under the new scheme at the rate of 12.5 per cent without indexation or claim the indexation benefit and pay 20 per cent tax.

Sitharaman said that the indexation benefit was proposed to be removed in the Budget to bring all asset classes under one rate and not to enhance revenue.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)

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Science & Environment

Life Insurance To Get Cheaper? Nitin Gadkari Writes To…

31 July 2024
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Union Minister Nitin Gadkari has reached out to Finance Minister Nirmala Sitharaman, urging the removal of GST on life and medical insurance premiums. This appeal follows after criticism of the Budget 2024 from various quarters.

Mr. Gadkari cited a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union in his letter. The Union raised significant concerns regarding the 18% GST imposed on life and medical insurance premiums.

GST on Life Insurance

Mr. Gadkari highlighted that imposing GST on life insurance premiums essentially means taxing the uncertainties of life. He stressed that individuals purchasing life insurance to protect their families should not be burdened with such a tax.

He also pointed out that the 18% GST on medical insurance premiums hampers the growth of this crucial sector. The high tax rate serves as a deterrent, discouraging people from purchasing necessary medical insurance.

“In view of the above, you are requested to consider the suggestion of Withdrawal of GST on Life and Medical Insurance Premium on priority as it becomes cumbersome for the senior citizens as per rules with due verification along with other relevant points raised,” Gadkari said in his letter to Ms Sitharaman.

The Union also raised other important issues, such as the differential treatment of savings through life insurance, the reintroduction of income tax deductions for health insurance premiums, and the consolidation of public sector general insurance companies.

Science & Environment

Budget 2024: 10 Thriving Economies That Don’t Levy Any…

25 July 2024
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Here are details on 10 such nations showcasing remarkable economic resilience.

The budget discourse is the issue of taxation, with public clamour for relief through tax cuts and exemptions.

Finance Minister Nirmala Sitharaman has unveiled the Union Budget 2024, sparking widespread discussion on its economic implications. The budget discourse is the issue of taxation, with public clamour for relief through tax cuts and exemptions. However, there exist several nations globally where governments do not levy any income tax on their citizens, yet their economies flourish robustly. Here are details on 10 such nations showcasing remarkable economic resilience:

United Arab Emirates (UAE)

Leading nation is the United Arab Emirates (UAE), notable for its absence of personal taxation. Instead, the government sustains itself through indirect taxes such as VAT and various duties. Fueled by robust sectors like oil and tourism, the UAE boasts a formidable economy.

Bahrain

Similar to Dubai, the government of Bahrain does not impose income tax on its citizens. Instead, it relies on indirect taxes to fund its expenditures. This system has fostered rapid growth in small businesses and startups, contributing to the overall improvement of Bahrain’s economy.

Kuwait

Kuwait, a tax-free country, does not levy income tax on its residents. With its economy predominantly reliant on oil revenues, the government foregoes the need for collecting taxes from its populace.

Saudi Arabia

Saudi Arabia does not impose income tax or direct taxes on its citizens. The country’s economy maintains a robust pace supported by its indirect tax system.

Bahamas

The economy of the Bahamas thrives on tourism, with the country refraining from collecting income tax from its residents. Each year, tourists from around the globe visit this destination, significantly bolstering its economic stability.

Brunei

As a nation with substantial oil reserves, the government of Brunei sees no need to impose taxes on its citizens.

Cayman Islands

Situated in North America, the Cayman Islands sustains its economy primarily through tourism, attracting visitors for its scenic beauty and holiday destinations. The government refrains from levying income tax on its residents.

Oman

Similar to Bahrain and Kuwait, Oman does not impose taxes on its citizens. The country sustains a robust economy through the sale of oil and gas.

Qatar

Like its Gulf neighbours, Qatar relies heavily on revenues from the oil industry. As a result, income tax is not levied on its populace. Despite its size, Qatar is wealthy due to its oil resources.

Monaco

Located in Europe, Monaco is a small yet economically strong country. It generates revenue primarily from tourism, allowing it to abstain from taxing its residents.

Science & Environment

Budget 2024: Finance Minister Announces TDS Framework Changes—Check How…

24 July 2024
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New Delhi: Finance Minister Nirmala Sitharaman has announced changes to the Tax Deducted at Source (TDS) framework which will affect salaried individuals. The changes will affect disposable income and make tax processes smoother. The Finance Minister explained that the Finance Bill aims to simplify the tax system for charities, adjust TDS rates, improve reassessment and search provisions and revise capital gains taxation.

Section 192 of the Act deals with tax deduction at source (TDS) on salary earnings. Nirmala Sitharaman announced that starting October 1, 2024, TDS deductions for salary earnings will be simplified which will allow all TCS and TDS deducted under various sections to be considered. This change aims to put more cash in the hands of salaried individuals.

Previously, tax was deducted on the sale of immovable properties except for agricultural land if the sale value exceeded Rs 50 lakh. However, the rules were unclear when there were multiple buyers or sellers. The new Finance Bill clarifies that the exemption applies only when the total sale value is less than Rs 50 lakh even if there are multiple sellers or buyers.

Lower TDS on Rent Payments

Currently, individuals or Hindu undivided families who pay rent over Rs 50,000 per month must deduct TDS at 5 per cent. The new Finance Bill proposes to reduce this TDS rate from 5 per cent to 2 per cent.

Adjusting TCS Collection for Minors

TCS collected in the name of a minor can only be claimed under the minor’s name. However, the funds allow for the adjustment of TCS credit in the minor’s name with the parents’ tax liability, but this can only be done when filing income tax returns.

Science & Environment

With Focus on Rooftop Solar & Energy Security, Budget…

24 July 2024
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With its focus on expanding rooftop solar, energy security, and climate-resilient agriculture, Budget 2024 has set India on the path to a sustainable economy, said experts, highlighting that it demonstrates the country’s commitment to climate action and clean energy.

“Energy transition is critical in the fight against climate change,” said finance minister Nirmala Sitharaman while presenting the Budget in Parliament on Tuesday.

The minister said the government’s renewable energy scheme, PM Surya Ghar Muft Bijli Yojana, has already received more than 1.28 crore registrations and 14 lakh applications. The scheme launched early this year aims to install rooftop solar plants over 1 crore households across the country. This also allows them to obtain free electricity for up to 300 units every month.

“The Budget reflects India’s commitment to sustainable development with significant allocations like ₹1.52 lakh crore for climate-resilient agriculture and initiatives for rooftop solar. The focus on critical minerals, a policy for pumped storage projects, and the decision to develop a policy document on energy transition pathways is laudable too. However, what remains to be seen is how the role of nuclear power in India’s energy mix takes shape,” said Aarti Khosla, Director, Climate Trends.

CLIMATE FINANCE & ENERGY TRANSITION

Experts also welcomed the government’s announcement for developing a taxonomy for climate finance, which had been a long-pending demand from investors and industry. This will enhance the availability of capital for climate adaptation, as well as mitigation. However, the statement lacks timelines not only for developing taxonomy but also for carbon pricing mechanisms and strategies for mobilizing climate finance for adaptation and mitigation efforts in vulnerable communities, pointed out experts.

Sitharaman announced that the government will bring out a policy document on the appropriate energy transition pathways, and formulate a roadmap for moving the “hard to abate” industries from “energy efficiency targets” to “emission targets”. A Pumped Storage Policy is also on the anvil to promote pumped storage projects for electricity storage and smooth integration of the growing share of renewable energy in the power mix.

CLIMATE-RESILIENT AGRICULTURE, GREEN ECONOMY

The Budget also announced a comprehensive review of the agriculture research setup to bring focus on raising productivity and developing climate-resilient varieties. Sitharaman said funding will be provided in challenge mode and domain experts both from the government and outside will oversee the conduct of the research. As many as 109 new high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers, she added.

Dr Arunabha Ghosh, CEO, Council on Energy, Environment and Water (CEEW), said the Budget addresses India’s clean energy ambitions and also outlines actions on water treatment, air quality, and recovery from riverine floods. The emphasis on flood mitigation in vulnerable states like Sikkim, Assam, Bihar, Uttarakhand, and Himachal Pradesh is a welcome step, he said. “Each of these provisions—from clean energy markets, to green industry, to quality of life—can benefit from a focus on loss prevention from climate events, promoting new business models for households and small industry, a circular economy of resources, and innovative financing beyond budgetary support,” added Ghosh.

CRITICAL MINERAL MISSION

Experts also welcomed the announcement of a Critical Mineral Mission and proposed to fully exempt customs duties on 25 critical minerals and reduce Basic Customs Duty (BCD) on two of them to provide a fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors.

“Critical minerals are building blocks for energy transition and for other strategic sectors such as electronics, defence, and telecommunications. Through this Budget announcement, India has also started to take action on its commitments for G20 last year to build reliable, diversified, sustainable, and responsible supply chains of critical minerals,” said Rishabh Jain, Senior Programme Lead, CEEW.

THUMBS-UP FROM WIND SECTOR

The Budget received a thumbs-up from the wind sector as well, whose representatives said the announcements align well with the priorities of the industry for the current fiscal year – including the creation of jobs and the growth of the manufacturing sector, in particular, MSMEs.

“The recent Budget demonstrates India’s global leadership in combating climate change by prioritizing the development of clean technologies and fostering a conducive environment for renewable energy investments. This will not only enhance India’s energy security but also expedite the energy transition with its forward-thinking approach,” said Girish Tanti, Chairman, Global Wind Energy Council, India.

Science & Environment

Budget 2024: Nirmala Sitharamans Budget Speech Durations Across Years

23 July 2024
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Budget 2024: Union Finance Minister Nirmala Sitharaman delivered her second shortest Union Budget speech on Tuesday which lasted just 1 hour 25 minutes. This marks a slight reduction from last year’s speech which ran for 1 hour and 27 minutes. Interestingly, Sitharaman also holds the record for delivering the longest Budget speech which stretched over 2 hours and 40 minutes in 2020.

In recent years, Finance Minister Nirmala Sitharaman’s budget speeches have varied in length. In 2023, her speech was 1 hour and 25 minutes long. The previous year, in 2022 it lasted 1 hour and 30 minutes. In 2021, her speech went on for 1 hour and 50 minutes. Back in 2019, it was the longest at 2 hours and 17 minutes.

Here is a breakdown of the durations of Nirmala Sitharaman’s Budget speeches over the years:

– In 2019, the speech lasted 2 hours and 17 minutes.

– In 2020, it extended to 2 hours and 40 minutes.

– By 2021, it shortened to 1 hour and 50 minutes.

– In 2022, it was 1 hour and 32 minutes long.

– In 2023, it lasted 1 hour and 27 minutes.

– On February 1, 2024, the speech was 56 minutes long.

– On July 23, 2024, it lasted 1 hour and 25 minutes.

Sitharaman announced Over Rs 3 lakh crore allocated for schemes benefiting women and girls, focusing on increasing workforce participation, establishing hostels, and creating women-specific skilling programs.

She also introduced a PM Package comprising five schemes aimed at boosting employment and skilling, with a substantial allocation of Rs 2 lakh crore, including Rs 1.48 lakh crore for education, employment, and skilling initiatives.

Science & Environment

Budget 2024: Jewellery to become cheaper as customs duty…

23 July 2024
by admin

There is exciting news for those planning to buy jewellery for weddings and other special occasions. One of the most significant announcements in the Union Budget 2024 is the reduction of customs duties on gold and silver, which is expected to help bring down the currently high prices of these precious metals.
Finance Minister Nirmala Sitharaman announced that the customs duties on gold and silver will be reduced from 15% to 6%.Additionally, the customs duty on platinum will be lowered to 6.4%.
Industry experts predict that this measure may lead to a short-term decrease in jewellery prices. However, they also caution that in the long run, it could potentially widen the trade deficit and further weaken the rupee.
Here are some industry reactions:
“The government’s move to reduce the custom duties from 15% to 6% on gold and silver and from 15.4% to 6.4% on platinum in order to enhance domestic value addition in gold and precious metal jewellery in the country, is commendable. This is going to benefit the sellers and the consumers equally. To promote the development of the diamond cutting and polishing industry, the finance minister has proposed safe harbour rates for foreign mining companies selling raw diamonds in the country and that again is a great move. The budget particularly focused on employment and skilling, which is the need of the hour. I appreciate the government’s initiative of employment-linked skilling through 5 schemes and initiatives as part of the PM’s package. Truly, the budget has many announcements for the youth and the women population. Creating more jobs is vital in unlocking the demographic dividend.” says Amarendran Vummidi, Managing Partner, Vummidi Bangaru Jewellers

Budget 2024: What’s Costlier & Cheaper | Gold, Silver, Mobile Phones & More | Full List

According to Amit Pratihari, MD, De Beers Forevermark, “The Gems and Jewellery sector has made significant contributions to India’s GDP, and we appreciate the announcements made in the Union Budget for this sector. The proposed reduction in customs duties to 6% on gold and silver, and 6.5% on platinum, will enhance sales by making these precious metals more affordable. The implementation of safe harbor rates for the diamond-cutting industry, for foreign mining companies selling rough diamonds in India, will stimulate growth, boost consumer spending, and increase global competitiveness. Furthermore, the reduction of TDS from 1% to 0.1% for e-commerce operators will substantially support the industry’s expansion. These new measures will not only strengthen the valued investment of Indian households in diamonds but also add to their emotional significance.”
Mr Gaurav Bhagat, Managing Director, Consortium Gifts says, “According to the 2024 budget, the import duties on gold and silver will decrease by 9%. This means that companies will likely pass these savings on to consumers. We can expect lower prices for gold, silver, and platinum jewelry, as well as watches and mobile phones. However, the overall impact on the lifestyle sector appears to be limited for now.” – Gaurav Bhagat, Managing Director, Consortium Gifts.

Science & Environment

Bomkai to Mangalagiri: Union Finance Minister Nirmala Sitharaman’s iconic…

23 July 2024
by admin

Through her sartorial choices, Sitharaman not only pays homage to her cultural heritage but also actively supports Indian artisans and weavers, showcasing their craftsmanship on a national platform.