Budget 2018-19

  So, if a person moves to India and becomes a resident Indian for tax purposes, they get taxed on any income they earn in these accounts The FM announced relief for non-resident Indians (NRIs) from double taxation. In the US, there are pension plans like 401K and Individual Retirement Accounts, which are not taxable unless the subscriber withdraws from them. However, any income earned in these accounts gets taxed in India. This is because according to the current provisions of the I-T Act, income is taxable on accrual basis. So, if a person moves to India and becomes a resident Indian for tax purposes, they get taxed on any income they earn in these accounts. “The mismatch in the timing of taxation and double taxation is sought to be addressed by prescribing I-T Rules such that there is relief from double taxation,” said Sonu Iyer, tax partner & national leader, People Advisory Services, EY India.

  A combination of stepped-up social spending – including on long-neglected healthcare – and a state-led infrastructure push will make the recovery both durable and inclusive Union Budget 2021:  India’s federal budget Monday will be a much tougher balancing act than New Delhi’s regular annual fiscal trapeze. For one thing, the pandemic has upset business-as-usual calculations of how much to spend, on what, and how to finance it. For another, an impatience to make up for lost time has to be weighed against a shrinking of policy space in emerging markets: A reprise of the 2013 global taper tantrum could compound the country’s considerable domestic challenges. On the first question — how much to spend — Finance Minister Nirmala Sitharaman must simply do a lot more. Even with some loosening of the purse strings in the final months of the fiscal year that will end in March, Moody’s Investors Service affiliate ICRA Ltd. expects annual government expenditure to have been broadly unch...

  India’s Finance Minister Nirmala Sitharaman has described her upcoming  Union budget  as unlike anything seen in the last 100 years India’s Finance Minister Nirmala Sitharaman has described her upcoming budget as unlike anything seen in the last 100 years. When she presents it on Feb. 1, Sitharaman will not only aim to repair battered government finances and ensure demand recovers in an economy facing its worst contraction since 1952, she must also revive declining revenue and restore millions of jobs lost during the pandemic. That will be crucial to boosting consumer sentiment in a country where local demand contributes nearly 60% of gross domestic product. “The virus has led to a demand shock and the budget might need to focus on that,” said Bank of America economist Indranil Sen Gupta, pointing to in-house surveys that showed 19% of respondents were laid off during the pandemic. Demand has to be created either through cutting taxes on fuels or providing income suppor...

A snapshot of the Union Budget 2018-19 expectations of Rita Singh, chairman & managing director of Mesco Steel, on key issues   Finance Minister Arun Jaitley will be presenting Union Budget 2018 in Parliament on February 1. While there are several expectations of key announcements for the economy and its various sectors, it remains to be soon whom the finance minister would oblige this time. Here is a snapshot of the Budget 2018 Expectations of Rita Singh, chairman & managing director of Mesco Steel, on key issues: 1. Reduction of import duty on Coking Coal a. Currently import duty on Coking Coal is 2.5% and many of the steel companies are dependent upon imported coking coal as the domestic quality is not suitable for the steel industry, due to higher ash content. b. The import duty to be levied should be NIL as this would in turn help the steel industry to reduce the raw material cost and would increase production c. During FY18 (April – ...

Budget 2018 - Mentioned below are the highlights of various Budget documents presented to Parliament by the Finance Minister other than his Budget Speech. Budget 2018-19 :  Common to all finance ministers is the briefcase that they carry to the Parliament and pose with on the day of the union budget 2018. In fact the word budget is derived from the French word 'bougette', which means a small bag. The practise is actually a colonial tradition which was started by William Ewart Gladstone, the Chancellor of the Exchequer of Great Britain in 1860 when he first carried a red briefcase or a budget box. British Chancellors hand over the same red box to their successors, a practise which is not followed in India. It is understood that the said briefcase contains the budget speech. But do you know what other budget documents are presented to Parliament on the day of the Budget? Mentioned below are the highlights of various Budget documents presented to Parliament by the Fina...

Nadda sought a 'bare minimum' budget of nearly $10 billion for 2018-19, which is 33% higher than last year Union budget 2018 India is poised to raise its public health spending by 11 per cent in the annual budget next month, after rejecting Health Minister JP Nadda's demand for a much bigger increase to ramp up disease control, according to government sources and documents. Nadda sought a "bare minimum" budget of nearly $10 billion for 2018-19, which is 33 per cent higher than last year, in a letter to the finance minister on Nov. 26, which Reuters has reviewed. Nadda argued the funds were needed for expanding vaccination coverage, free drugs distribution, and also to ward off a growing threat of non-communicable diseases, such as cancer and diabetes, which killed 6 million people in India in 2016. His request was not approved: the health budget is expected to rise by 11 per cent to $8.2 billion, three government officials told Reuters. They d...

Industry wants the government to focus on reducing timelines from project conception to completion Union budget 2018 It is believed that investment in India’s infrastructure industry would yield more impact if all related projects are planned and delivered on the same timeline. This is seen as key to the success particularly of industrial corridors and nodes being planned. Under the Sagarmala initiative, ports are now being integrated with roads, railways, and coastal industrial zones/SEZs. Dedicated freight corridors could be a key component, though there appears to be limited progress after the first two corridors. Business Standard and PwC look at the present situation of the infrastructure sector, key issues facing it, and what the industry wants from Finance Minister Arun Jaitley in the upcoming Union Budget 2018-19. Key issues facing the sector Integrated planning and delivery of projects Investments in infrastructure would yield more impact if all related pro...

While's India's economy may be growing at a fast pace, the story on the jobs creation front is just the opposite     Budget 2018-19 :  Before India goes to polls in General Elections 2019, the government is likely to provide India with its first National Employment Policy (NEP) to address the crucial issue of job creation. The policy, which may be announced in the upcoming Budget, will have a comprehensive roadmap outlined for all the employers and workers in a bid to create quality jobs across all sectors through economic, social and labour policy interventions. While's India's economy may be growing at a fast pace, the story on the jobs creation front is just the opposite. Hence, Narendra Modi-led BJP government will want to make an attempt to brighten the picture in the upcoming budget session. The National Employment Policy will include — Incentives for employers to create more jobs — Reforms to attract enterprises — Help for medium and small sca...

India's tourism sector grew over 1% in the six months ending September   Budget 2018-19 India is planning to cut taxes on travel and tourism in next month's federal budget and give more incentives to the Rs 13 trillion sector, government sources said, hoping to boost economic growth and create more jobs. The move could add to a domestic tourism boom in the world's second most populous nation, where low inflation and rising incomes are changing lifestyles and consumption patterns of an estimated 250 million middle-class Indians. With scores of destinations introduced on airline routes last year, air travel is also surging. India's tourism sector grew over 10 per cent in the six months ending September, compared to near 8 per cent in the year-ago period. According to an industry report, tourism employs 40 million people in India and could add 10 million jobs in a decade. "We'll announce measures in the budget to promote investment in the tourism sec...

As per existing regulations, if there are losses in a fund at the end of its life, the same cannot be passed onto its investors At a time when Finance Minister Arun Jaitley and his team would be getting set for Union Budget 2018-19 , the private equity industry is seeking a pass-through of losses at the fund level for Category 1 and Category 2 alternative investment funds (AIFs). According to the existing regulations, if there are losses in a fund at the end of its life, the same cannot be passed onto its investors. ‘‘This is a big issue with VC or infra funds. Over a fund life of eight-to-nine years, a fund may end up with one or two loss-making firms,” says Gopal Srinivasan, president, Indian Private Equity & Venture Capital Association. The regulations say that profits can be passed onto investors, but losses have to be kept at the fund level. Interestingly, Sebi’s original venture capital regulations of 1996 allowed this. These were replaced by Sebi’s AIF ...

One way the government could give job creation a boost is by tweaking taxation laws to provide companies an incentive for hiring Budget 2018 : Employment creation is one of Modi government's greatest difficulties, with the Opposition utilizing what it calls the administration's poor execution in such manner as a stick to beat the head administrator's financial strategies with. With Budget 2018 not as much as a month away, and with business age apparently being a key topic this year, one way the legislature could give work creation a lift is by tweaking tax collection laws to give organizations a motivator to procuring. India as of now gives tax breaks to boost work creation by organizations. Nonetheless, as per a Times of India report, certain lacunae in the tenets have kept many organizations, especially from the administrations part, from receiving the rewards of such motivators. In perspective of this, as per the national day by day, the administration c...

Amid confusing taxation rules, new legislature, capping and trust deficit, Union Budget 2018 can be pivotal in highlighting the importance of health and well-being for Indians “The best way to predict your future is to create it.” When Abraham Lincoln was saying these words, he used them to instil motivation, enthusiasm and new vigour in the American people. Today, many decades after and continents away, these lines seem apt for a year ahead in India. Budget 2018 Just as we dwell on the aspects that need to be set right this year – in the Budget 2018-19 and outside of it – we prepare our industry resolution to understand that our actions have impacts on generations to come. We as healthcare providers and as active participants in the story of ‘Evolving India’ have been entrusted to pay a pivotal role and we, through our small endeavours, may be playing a major role in the changing landscape of healthcare in our country. Just when we are battling taxation rules, new ...

Railways recently revised the criteria for making urban and suburban stations eligible for installation of escalators Indian union budget 2018-19 With the aim of providing better amenities, Railways will make a budget provision of Rs 34 billion for installing about 3,000 escalators and 1,000 lifts at all major urban and suburban stations across the country. This will facilitate smooth movement of passengers, including old and physically-challenged people. While 372 escalators are meant to cover all stations including Kandivali, Matunga, Bandra, Churchgate, Dadar, Elphinstone Road, Mahalakshmi and Jogeshwari in Mumbai, 2,589 escalators will be installed at stations on the rail network in the country. According to a railway ministry official who did not want to be named, Large-scale installation of escalators and lifts would lead to an economy of scale, with a reduction in cost. At present, an escalator costs around Rs 10 million and a lift about Rs 4 million. Railwa...

Business Standard explains the importance of Union Budget of India and the whole process of its making and passing in Parliament In a federal country like ours, the constitution of India demarcates the governance structure through a three-tier system – the Union government, state governments, and local governments. In the scheme of distribution of power among them, the central or Union government enjoys the highest position. Budget 2018-2019 Under Article 112 of the Constitution of India, the central government is constitutionally bound to lay down the ‘annual financial report’ of the country. This report is commonly known as the Union Budget of India. The Union Budget holds the same character as the budgets of other levels of government, except in the source of revenue and expenditure. The Union Budget comprises the most extensive account of the Indian government, and it can be considered the statement of the government’s income and expenditure. Presented in P...

All other factors being constant, this could take financial deficit to 3.4% of  GDP     Indian budget 2018 The government will reduce its additional borrowing to Rs 200 billion from the bond markets in the financial year 2017-18, from Rs 500 billion announced last month, Economic Affairs Secretary Subhash Garg said. This is primarily because the Reserve Bank of India will pay a higher-than-anticipated surplus to the Centre, and the dividend target from state-owned companies will also be met, senior government sources confirmed separately to Business Standard. While disinvestment target for the year is expected to overshoot the budgeted estimates by quite a margin, things seem to be looking up on the direct taxes front as well. There are still expectations of a shortfall in goods and service tax and spectrum sales. “Government has reassessed additional borrowing requirements taking note of revenue receipts and expenditure pattern. The requirement of ...

To provide relief to home buyers as well as encourage investment in under-construction properties The "Housing for All by 2022" mission has set the stage for a robust recovery in the residential property market. In the past two years, we have seen an unprecedented focus on reforms channelised through the Benami Transactions (Prohibition) Amendment Act 2016, demonetisation, Real Estate Regulatory Act (RERA) and the Goods and Services Tax (GST) regime. So, this time, the   Budget 2018-19   will be much more critical than ever. The provisions, if moved in positive directions, will have the power to continue the momentum and cement home buyers' confidence. While so many tough decisions have already been taken, it will be worthwhile to rationalise further the direct tax structures impacting home buyers. I believe that there is room for improvement in some of the prime income tax (IT) provisions meant to incentivise the home buyers. Deduction on home loan inte...

Corporate farming norms to be made more acceptable and balanced for both farmers and corporates   Union budget 2018 Key challenges Small landholding: Since the bulk of farmers have less than 2 hectares of land, there is a difficulty in getting the benefits of ‘economics of scale’ Limited access to technology and extension: Farmers still do not have access to better technology. Also, effective dissemination of information from lab to land remains a challenge Storage: We need to come a long way in terms of availability and access of agricultural storage facilities for farmers Price volatility: The agri sector faces the Cobweb phenomenon, so there always exists a need to ensure farmers get remunerative prices Market integration: Farmers need to be better connected to the end-consumer. The number of stakeholders across the value chain needs to be reduced Industry ask Better environment for start-ups in food and agri business Greater technological...

Aiming to boost the struggling agriculture and rural economy, and encourage clean energy, the Council is expected to rationalise rates  A fortnight ahead of the Union Budget, the Goods and Services Tax (GST) Council is likely to take up rationalisation of rates of about 70 items, of which at least 40 are services. Amendment in rules may also be taken up to simplify filing and plug some of the loopholes. A fitment committee of officers has made these recommendations to the Council, which will meet on Thursday. With the aim to boost struggling agriculture and rural economy, and encourage clean energy, the Council is expected to rationalise rates of agriculture implements and unconventional fuel buses. It is the last Council meeting before Finance Minister Arun Jaitley presents his last full Budget on 1 February, before general elections in 2019. “Around 40 to 50 services will be taken up for a rate revision in the Council meeting. These are services that were earlier exempt ...

Foodgrain production in 2016-17 is estimated at 276 million tonnes and in 2017-18 it is targeted at 275 million tonnes Budget 2018-19 : As Finance Minister Arun Jaitley gets down to finalise his Budget Speech, which many believe could be focused on the farm sector, the December data on consumer food price index (CFPI) and its wholesale price counterpart should offer some insight. The CFPI-based inflation for the month of December rose to 4.96 per cent year-on-year from 4.35 per cent in November. In contrast, the wholesale price index-based food inflation declined from 6.06 per cent in November to 4.72 per cent in December. As such, retail price food inflation has crossed past  wholesale price one for the first time in the recent months. Though this divergence in the movement of inflation isn’t uniform across all commodities in the group but the index numbers are a pointer to the fact that while farmers continue to reel under the impact of low rise in prices aggra...

PwC and Business Standard take a look at the key issues facing the power sector and the industry's expectations from Budget 2018 Worthy of attention ahead of Budget 2018 is the fact that the recent times have been very exciting for India’s power sector, especially with respect to the renewables segment. New generation capacity addition this year came predominantly from non-carbon sources – over 80% came from renewables, hydro and nuclear alone. Here are a snapshot of the power sector and its expectations from the Union Budget 2018-19: Key developments New generation capacity addition this year came predominantly from non-carbon sources (over 80% from renewables, hydro and nuclear). The main renewable energy sources, wind and solar, are now contracted solely viaauctions. This hasdelivered record low tariffs (Rs 2.44 per kWh for solar). A roadmap was announced to procureabout 110 Gw renewable energy,over coming months up to 2020. This pipeline of tenders ...