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Year End Review Highlights of the Achievements of the Ministry of Finance

Dated:- 19-12-2015 - During the current fiscal, Ministry of Finance has undertaken various initiatives and measures for enhancing the Revenue Collection ,easing and formulating the Taxation policy, Fiscal consolidation , improving the Economic Growth and there by contributing to the Nation building. The major highlights of the achievements of the Ministry are as follows: DEPARTMENT OF ECONOMIC AFFAIRS (DEA) During the current fiscal, Department of Economic Affairs (DEA), Ministry of Finance has .....

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rom 6.0 per cent in January 2015 to 1.7 per cent in October 2015. Inflation in Fuel& power stood at -16.3 per cent in October 2015 compared to -17.7 per cent in the previous month and -11.0 in January 2015. Inflation for Manufactured products decreased to -1.7 per cent in October 2015 as compared to 1.0 per cent in January 2015. Consumer Price Indices (CPIs): CPI-New Series inflation for 2014-15 declined to 5.9 per cent from 9.5 per cent in 2013-14, has remained below 5.5 per cent since Janu .....

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per cent respectively in September 2015 as compared to 6.2 per cent and 6.5 per cent in January 2015. Measures taken to control inflation The measures taken by the Government along with decline in global oil and commodity prices have contributed towards achieving low inflation. The measures taken by Government include, advising states to allow free movement of fruits and vegetables by delisting them from the APMC Act, banning of export of all pulses (except kabuli channa and organic pulses and .....

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e RBI. MONETARY POLICY During 2015, policy (Repo) rate has been cut by 125 basis points, signalling a period of easing of monetary policy. Taking into account the continuous decline in inflation and with a view to spur growth, the last cut in the policy rates by 50 basis points to 6.75 percent was undertaken by the RBI on September 29, 2015.Overall, the RBI stance continues to be accommodative. Government of India and RBI have signed a Monetary Policy Framework agreement in February 2015. The ob .....

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for setting up Payment Banks and Small Finance Banks to improve financial inclusion. RBI has accorded in principle approval to 11entities to form Payment Banks in August 2015 to 10 entities to form Small Finance Banks in September 2015. The minimum paid-up equity capital for Payments Banks shall be ₹ 100 crore, of which the promoter s contribution would be minimum 40 percent of paid-up equity capital for the first 5 years of commencement of the business. For recapitalizing the public secto .....

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: On the basis of best global practices, to separate the post of Chairman and Managing Director by prescribing that in the subsequent vacancies, CEO will get the designation of MD & CEO and there would be another person who would be appointed as non-Executive Chairman of PSBs. Government proposes to make available ₹ 70,000 crores out of budgetary allocations for bank capitalization in the next four years. De-stressing public sector banks by strengthening risk control measures and NPA d .....

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having a more predictable regime for investment by the foreign portfolio investors (FPI), RBI has set out the medium term framework (MTF) for FPI limits in debt securities. The limits for FPI investment in debt securities will henceforth be announced/ fixed in rupee terms. The limits for FPI investment in the central government securities will be increased in phases to 5 per cent of the outstanding stock by March 2018. In aggregate terms, this is expected to open up room for additional investme .....

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ged with Securities Exchange Board of India (SEBI) on September 28, 2015 with a view to strengthen the regulation of commodity forward markets. TAX-FREE BONDS Government of India has allowed the issuance of Tax-free bonds of ₹ 40000 crore during the Financial Year 2015-16, by Central Public Sector Enterprise (CPSE) such as National Highways Authority of India (NHAI), Indian Railways Finance Corporation (IRFC), Housing and Urban Development Corporation (HUDCO), Indian Renewable Energy Devel .....

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ith their respective Acts, and High Networth Individuals (HNIs).These Bonds are issued for ten (10) or fifteen (15) or twenty (20) years. Further details of terms & conditions of Tax Free Bonds for the FY 2015-16 can be accessible at: http://www.incometaxindia.gov.in/communications/notification/notification59_2015.pdf THE 11TH INDIA- SAUDI ARABIA JOINT COMMISSION The 11th India- Saudi Arabia Joint Commission Meeting (JCM) was held during 26-28th May, 2015 at New Delhi. A wide range of issues .....

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ure services. Several initiatives have been taken to create an enabling framework for PPPs: The appraisal mechanism for the PPP projects has been streamlined to ensure speedy appraisal of projects, eliminate delays, adopt international best practices and have uniformity in appraisal mechanism and guidelines. The Public Private Partnership Appraisal Committee (PPPAC) set up for the appraisal of PPP projects posed by Central Line Ministries and Departments has so far in 2015 approved 13 central pr .....

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ertaken through public private partnerships with a view to make them commercially viable. The Scheme provides total Viability Gap Funding up to twenty percent of the total project. The Government or statutory entity that owns the project may, if it so decides, provides additional grants out of its budget up to further twenty percent of the total project cost. Viability Gap Funding. During the current calendar year i.e. 2015, so far Empowered Institution has granted in-principle approval for 5 pr .....

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iative aims to develop a replicable model and related documents and demonstration of the model through a successful pilot transaction for an ULB. Guidelines for issuance of Municipal Bonds in India have been notified Knowledge Resources: As part of wide ranging efforts for knowledge dissemination on PPPs, DEA has developed tool kits and knowledge products for use of PPP practitioners. These include: Post Award Contract Management: Department of Economic Affairs (DEA) has developed Post-Award Con .....

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Guidance Material and the Online Toolkits will be available to users on the Department s website for PPPs, i.e., www.pppinindia.com. Framework for Renegotiation of PPP Contracts: A report on a suggested framework for renegotiation of PPP contracts has been developed, which focuses on changes that may need to be made in the contractual and institutional arrangement post award of the projects. Work on the identification of the legal clauses in the concession agreement is underway. The well researc .....

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Secretaries of concerned Departments and Chief Economic Adviser (CEA) as members, monitors macro prudential supervision of the economy including functioning of large financial conglomerates, and addresses inter-regulatory coordination and financial sector development issues, including issues relating to financial literacy and financial inclusion. From January 2015 to November, 2015 the Council had held two meetings on May 15, 2015 and 5th November, 2015. In these meetings, important issues conc .....

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y derivatives market. The FSDC Sub-committee set-up under the chairmanship of Governor, RBI met two times and deliberated on issues such as Account Aggregation for Financial Assets, global and domestic developments impinging on financial stability, Corporate Bond Market Development, Foreign Account Tax Compliance Act (FATCA), developing a comprehensive financial resolution regime etc. Various Technical Groups have been set-up under FSDC Sub-Committee such as Inter Regulatory Technical Group (IRT .....

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licy framework and (ii) regulation and supervision of NBFCs. ESTABLISHMENT OF NEW DEVELOPMENT BANK (NDB) New Development Bank has been established by BRICS countries in Shanghai, China. The Bank will mobilize resources for infrastructure and sustainable development projects in BRICS countries, other emerging economies and developing countries. It will complement the existing efforts of multilateral and regional financial institutions. Mr. K.V. Kamath, has taken over as the first President of the .....

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y effect, help BRICS countries forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability. It would also contribute to strengthening the global financial safety net and complement existing international arrangements as an additional line of defense. SAARC and SDF Meetings The 7th Meeting of SAARC Finance Ministers and Finance Secretaries were held on 19th and 20th of August, 2015. The Indian delegation for these Meetings were led by Shri Jayant Si .....

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ment Fund were held in April and August 2015 respectively. The Union Cabinet on 18th of November 2015 has approved the extension of the validity of the Framework on Currency Swap Arrangement for SAARC Member Countries with amendments for two more years up to November 2017. INTRODUCTION OF SCHEME TO SUPPORT COMPANIES BIDDING ABROAD Government of India has on 16th September, 2015 approved a scheme for providing a concessional financing scheme to support Indian companies bidding for strategically i .....

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cess of ratification of the Articles of Agreement is underway. G20 SUMMIT 2015 The G20 Summit 2015 was held on 15-16 November 2015 in Antalya, Turkey. Prime Minster led the Indian delegation. The Summit marks the culmination of a year long process of inter-governmental meetings led by the Finance Minister Arun Jaitley, Sherpa Dr Panagariya, and official representatives from Government of India. G20 focuses on issues of economic and financial cooperation. At this year s Summit in Antalya, Leaders .....

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olds and trusts and deploying it for productive use. The scheme was launched by the Prime Minister of India on 5th November, 2015. The scheme will benefit the manufacturers of gold jewellery who are largely small and medium scale enterprises, by making gold available to them. It will also benefit the common man by allowing him/her to earn interest on their holdings of gold. Introduction of Sovereign Gold Bond Scheme The scheme was announced in Budget 2015-16 with the view to provide a new financ .....

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in Budget 2015-16 with the view to promote indigenously minted national gold coins. The scheme is aligned with the Make in India programme of the Government. The scheme was launched by the Prime Minister of India on 5th November, 2015. CREATION OF NATIONAL INVESTMENT AND INFRASTRUCTURE FUND ( NIIF ) The Government of India has put investment in infrastructure as one of the core elements of its economic programme. The Union Finance Minister Shri Arun Jaitley made the announcement of setting-up of .....

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initial authorized corpus of NIIF would be ₹ 20,000 crore, which may be raised from time to time. Government s contribution/share in the corpus will be 49 per cent in each entity set up as an AIF and will neither be increased beyond, nor allowed to fall below 49%. The whole of 49 per cent would be contributed by Government directly. NIIF would solicit equity participation from strategic anchor partners. The contribution of Government of India to NIIF would enable it to be seen virtually as .....

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de funds to the NIIF. The NIIF will be established as a Trust/other legal entity from both the point of view of taxation and flexibility. To oversee the activities of the NIIF, it has been decided to constitute a Governing Council with the following composition:- (i) Finance Minister - Chairman (ii) Secretary, DEA - Member (iii) Secretary, Financial Services - Member (iv) Ms Arundhati Bhattacharya - Member (v) Shri Hemendra Kothari - Member (vi) Shri T.V. Mohandas Pai - Member The mandate of the .....

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e Minister to meet additional financial needs for large infrastructure projects which do not fall within the agreed priority areas under Indo-German Bilateral Development Cooperation. Following two projects have been approved/posed to German side for funding under ODA Plus : Chennai Water Production and Demand Management Programme at Nemmeli, Chennai - Euro 100 million Nagpur Metro Rail Project - Euro 500 million ONE WORLD WITHOUT HUNGER - A SPECIAL INITIATIVE launched by G/o Germany was approve .....

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on grant basis). SOLAR ENERGY PARTNERSHIP: A Memorandum of Understanding was facilitated and signed between MNRE and German government to support Solar Energy Partnership based concessional loans in the range of 1 billion euro over the next five years. LOAN/ AGREEMENT SIGNED DURING THE YEAR: Green Energy Corridors project in r/o Himachal Pradesh Power Transmission Corporation Limited (Euro 57 million)-Loan Agreement - with KfW (German Development Bank) Green Energy Corridors project in r/o APTR .....

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as committed EUR 1,490.60 million (approx. ₹ 11,000 crore) for bilateral Technical and Financial Cooperation for the period of 2015. French assistance would be around 250 million for this year. Extension of the Indian Development and Economic Assistance Scheme: The Government of India has been extending Lines of Credit to Africa and other developing countries since 2005-06. The scheme has been granted second extension for another five years i.e. from 2015-16 to 2019-20 with the approval of .....

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horized to accept any such proposal. It has also been decided to accept offers for bilateral assistance in the form of special loans in addition to the assistance on the normal route. Agreement on Urban Water, Sanitation and Hygiene (WASH): An agreement in this regard was signed between Department of Economic Affairs and U.S. Government (through USAID) on 30th September, 2015. Under this agreement, the Govt. of India and USAID will work together to share expertise, best practices, innovation and .....

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will work together to support financial inclusion through expanded payments acceptance networks and other efforts. Grant Agreements signed with U.S. Trade and Development Agency (USTDA): Following three (03) grant agreements were signed recently with USTDA:- (i) USTDA grant to Airports Authority of India to partially fund the technical assistance cost of goods and services required for a technical assistance on the Provision 2 Body Scanner System Pilot project in India. (ii) USTDA grant to part .....

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k and ADB during 2015. This includes IBRD loan of US$ 650 million negotiated with the World Bank for the third phase of the EDFC project. The total loan committed by the World Bank for the 3-phased EDFC project is US$ 2725 million. This project will augment freight carriage throughout the eastern dedicated freight corridor between Ludhiana and Kolkata. Another project negotiated and signed is the Tamil Nadu Road Sector Project for World Bank loan of US$ 300 million. Besides the Tamil Nadu Sustai .....

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project States, such as UP, MP, Jharkhand and Karnataka. (ii) The World Bank would provide financial assistance to Swachh Bharat Mission (Gramin) to the tune of US $ 1500 million. It would help the country in reducing open defecation in rural areas, achieving and sustaining Open defecation Free (ODF) status of villages, and enhancing access to solid and liquid based management. The project has been negotiated with the World Bank, and is likely to be implemented in a few months. There has been s .....

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OF REVENUE INDIRECT TAX COLLECTIONS In October 2015, indirect tax revenue (provisional) collections increased by 36.8% compared with collections made in October 2014. Cumulatively, during April-October 2015, indirect tax collections increased by 35.9% over the collections made during the same period last year, while, the target growth rate for 2015-16 is 18.8%. Overall, in monetary terms, the indirect tax revenue (provisional) collections increased to ₹ 3,82,860 crore during April-October .....

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crore in April-October 2015 and thereby registering an increase of 26.1 %. Collections on account of Customs increased from ₹ 1, 04,831 crore in April-October 2014 to ₹ 1, 22,448 crore in April-October 2015 and thereby registering an increase of 16.8 %. These collections continue to suggest a healthy growth in the underlying tax base Indirect Tax Collections: April to October 2015 (Rs. in crore) Tax head Target growth rate for 2015-16 (in %) Revenue: April-October 2013-14 2014-15 20 .....

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ity of life and public health through Swachh Bharat initiatives; and Stand alone proposals to maximise benefits to the economy. EASE OF DOING BUSINESS DIRECT TAXES Measures taken through Finance (No. 2) Act, 2014 Introduction of a Roll Back provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances. Introduction of range concept for deter .....

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tain areas where clarity in tax laws is required and based on their recommendation the Central Boards of Direct and Indirect Taxes would issue appropriate clarifications in a time bound manner, wherever considered necessary. Measures taken through Finance Bill, 2015 Section 9 of the Income-tax Act was amended by Finance Act, 2012 to clarify that if an asset, being a share of, or interest, in a company or an entity derives its value, directly or indirectly, substantially from an asset situated in .....

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sed from ₹ 5 crore to ₹ 20 crore. Safe harbour rules have been provided to cover state power utilities in respect of transaction related to supply, transmission, wheeling of electricity. Clarification with respect to the long pending demand relating to the period of stay for the purpose of deciding the residential status of seafarers, who are Indian Citizen, going on the international voyage, has been brought. Yoga has been included as a specific category of activity in the definitio .....

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on the same question of law year after year has been provided. The levy of Wealth-tax has been abolished with effect from 2016-17 (Assessment Year) for reducing the compliance burden on the tax payers. Non-adversarial tax regime The Central Board of Direct Taxes has issued detailed instructions to its field formations to ensure that the dignity of the taxpayers is respected while dealing with them, no frivolous demands are raised and no unnecessary litigation is continued. Issues relating to ta .....

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decided that with effect from 01.04.2001 the provisions of section 115JB shall not be applicable to a foreign company if - the foreign company is a resident of a country having DTAA with India and such foreign company does not have a permanent establishment within the definition of the term in the relevant DTAA, or the foreign company is a resident of a country which does not have a DTAA with India and such foreign company is not required to seek registration under section 592 of the Companies .....

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cise as well as in Service Tax to be granted with two working days. Verification of documents and premises to be carried out after the grant of the registration. Digital Signature and preserving records in electronic form: Legal provisions have been amended to prescribe that a manufacturer may use digital signature on invoices and may preserve records in electronic format. Further, a notification and an instruction has been issued to prescribe procedure, safeguards and conditions for using digit .....

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the payment of consideration to the service provider has been done away with. Time limit for taking CENVAT: Time limit for taking CENVAT credit of duty/tax paid on inputs and input services has been increased from six months to one year. Transfer/Sale/Re-Export Of Plant/Equipment By Projects Financed by UN etc.:-Plants& Equipment supplied / imported prior to 2008 for use in projects financed by the UN or an international organization could not be transferred / sold out /re-exported from the .....

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Wind Operated Electricity Generators (WOEG) are eligible for exemption from Central Excise duty. Point to taxation for reverse charge mechanism:-To bring certainty in the determination of point of taxation in case of reverse charge mechanism, it has been provided that point of taxation will be the payment date or three months from the date of invoice, whichever is earlier. Ensure certainty and uniformity in valuation of the goods for the purposes of levy of excise duty: All goods falling under .....

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e Retail Sale Price with an abatement of 35%. Such goods are also being included in the Third Schedule to the Central Excise Act, 1944. Simplification of processes for trade facilitation: 24X7 Customs clearance facility established in 17 airports and 18 seaports. Single Window Project -Online message exchange: Single Window provides a common platform to EXIM trade to meet requirements of all regulatory agencies (such as, Animal Quarantine, Plant Quarantine, Drug Controller, Textile Committee etc .....

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j. To facilitate trade and to simplify procedures, number of mandatory documents has been reduced to three, except for import and export of special nature under preferential agreements etc. Special Notified Zone for trading of rough diamonds: Consequent to Hon ble Prime Minister s announcement to make India into a hub for trading of rough diamonds, a Special Notified Zone was operationalised at Bharat Diamond Bourse at Mumbai. The procedure envisages major diamond mining companies bringing in ro .....

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' (ACP), digital signatures are mandatory with effect from 01.05.2015. Introduction of digital signature will maintain data integrity and reduce cost of compliance. Setting Up of Customs Clearance Facilitation Committee (CCFC): To ensure expeditious clearance of EXIM goods, a high level administrative Committee, i.e., 'Customs Clearance Facilitation Committee' (CCFC) has been put in place at every major Customs seaport and airport under the chairmanship of Chief Commissioner of Custo .....

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ress the issue relating to customs clearance and infrastructure impacting clearance of goods. Advance Passenger Information System (APIS) :-The Advance Passenger Information System (APIS) application was rolled out at 03 more international airport namely Calicut, Trivandrum and Trichy during the month of June, 2015. With this access to the application has now been made available at 12 international airports in the country. Precious Cargo Customs Clearance Centre (PCCCC):- This module was made op .....

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ing import or export. However, there shall be no lower limit for arrest and prosecution in cases of smuggling of fake Indian currency notes, arms, ammunition and explosives, and endangered species. Cenvat Credit Rules, 2004 have been amended so as to allow credit of Education Cess and Secondary and Higher Education Cess (subsumed under Service tax with effect from 1st June, 2015) paid on inputs/input services and capital goods to be utilized for payment of service tax in specified circumstances. .....

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to ₹ 1.5 lakh. This would encourage domestic investment in long term savings. Deduction limit on account of interest on loan in respect of self-occupied house property raised from ₹ 1.5 lakh to ₹ 2 lakh. This would reduce the burden for middle and lower middle class for whom housing continues to be an area of concern due to high cost of financing. Measures taken through Finance Act, 2015 With a view to encourage savings and to promote health care among individual taxpayers, a .....

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milar amount in case of a very senior citizen not eligible to take health insurance has been allowed. The limit of deduction in case of very senior citizens u/s 80DDB of the Income-tax Act on expenditure on account of specified diseases has been increased from ₹ 60,000/- to ₹ 80,000/-. Further, rule 11DD of the Income-tax Rules have been amended to relax the condition of obtaining the certificate for claiming expenditure under section 80DDB in respect of specified ailments from a spe .....

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on has been increased from ₹ 1 lakh to ₹ 1.25 lakh in case of severe disability. The limit of deduction u/s 80U of the Income-tax Act in case of a person with disability, has been increased from ₹ 50,000/- to ₹ 75,000/-. The limit of deduction has been increased from ₹ 1 lakh to ₹ 1.25 lakh in case of severe disability. The limit of deduction u/s 80CCC of the Income-tax Act on account of contribution to a pension fund of LIC or IRDA approved insurer has been i .....

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e assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at the place where he ordinarily resides, or to compensate him for the increased cost of living, as may be prescribed and to the extent as may be prescribed shall not be included in the total income of the assessee. Rule 2BB of the Income-tax Rules, 1962 prescribes such allowances. Rule 2BB was amended vide Notification No. S.O.1002 (E) dated 13th .....

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s duty was increased from ₹ 1600/- per month to ₹ 3200/- per month. The benefit of exemption up to 3200/- per month in respect of transport allowance has also been extended to an employee who is deaf and dumb to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty. The facility of filing self-declaration of non-deduction of tax by the recipients of taxable maturity proceeds of life insurance policy has been provided. Under the .....

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ed from molasses generated from cane crushed in the sugar season 2015-16 i.e. 1st October, 2015 onwards, for supply to the public sector oil marketing companies, namely, Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd. or Bharat Petroleum Corporation Ltd., for the purposes of blending with petrol. Also, input tax credit was allowed to manufacturers of such exempted ethanol. Basic customs duty was increased on crude edible oils (of vegetable origin) from 7.5% to 12.5% and refined .....

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D PUBLIC HEALTH THROUGH SWACHH BHARAT INITIATIVES Clean Energy Cess levied on coal, lignite and peat was increased from ₹ 100 per tonne to ₹ 200 per tonne. Concessional customs and excise duty rates on specified parts of Electrically Operated Vehicles and Hybrid Vehicles, available upto 31.03.2015, was extended upto 31.03.2016. Excise duty on sacks and bags of polymers of ethylene other than for industrial use was increased from 12% to 15%. An enabling provision was made to empower t .....

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ant operator for treatment of effluent was exempted. Measures to promote Public Health Excise duty on cigarettes was increased by 25% for cigarettes of length not exceeding 65 mm and by 15% for cigarettes of other lengths. Similar increases have been made on cigars, cheroots and cigarillos. Also, maximum speed of packing machine was specified as a factor relevant to production for determining excise duty payable under the Compounded Levy Scheme presently applicable to pan masala, gutkha and chew .....

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to banking in rural areas under thePradhanMantri Jan DhanYojana(PMJDY) Scheme, specified services provided by Business Facilitators/Business Correspondents with respect to a Basic Saving Bank Deposit (BSBD) Account covered by PradhanMantri Jan DhanYojana in a banking company s rural area branches has been exempted from Service Tax. In keeping with the declaration of 21 June as the International Day of Yoga by UN General Assembly, charitable activities relating to advancement of Yoga have been ex .....

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e tax of 14% on 70% of the gross value of service. Innovative Programmes Launched :The initiatives outlines in the preceding paragraphs are aimed at facilitating trade and achieving ease of doing business. Improvement of the facilitation measures is a continuous process, launched to help the trade to obtain optimum services of the Department with minimal human interface, without compromising the interest of revenue. MEASURES TAKEN FOR PROMOTION OF GROWTH, INVESTMENT, MANUFACTURING AND JOB CREATI .....

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er continues to be a major area of concern for the country, stability in the policy will help the investors to plan their investments better. Conducive tax regime has been provided for Infrastructure Investment Trusts and Real Estate Investment Trusts to be set up in accordance with regulations of the Securities and Exchange Board of India. This would facilitate growth in Infrastructure and construction sectors which have a significant role in the revival of the economy and generation of jobs. A .....

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06.2017 for a concessional tax rate of 5 percent on interest payments. Tax incentive extended to all types of bonds instead of only infrastructure bonds. Measures proposed through Finance Bill, 2015 With a view to streamline the taxation regime of Alternative Investment Funds (AIFs), pass through status to all the sub-categories of category-I and also to category-II AIFs governed by the regulations of Securities and Exchange Board of India (SEBI) has been provided. With a view to facilitate relo .....

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ies has been extended from 31.5.2015 to 30.06.2017. With a view to obviate the problems faced by small companies and to facilitate the inflow of technology, the rate of tax on royalty and fees for technical services has been reduced from 25% to 10%. With a view to facilitate generation of employment, the tax benefit in the form of 30 % deduction of additional wages for 3 years has been extended to every person (rather than to only a company) deriving profits from manufacture of goods in a factor .....

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(OLP) & Positive thermal co-efficient and Crank Shaft for compressor, for use in the manufacture of Refrigerator compressors. Zeolite, ceria zirconia compounds and cerium compounds for use in the manufacture of washcoats, which are further used in manufacture of catalytic converters. Anthraquinone for manufacture of hydrogen peroxide. Sulphuric acid for use in the manufacture of fertilizers. Parts and components of Digital Still Image Video Camera capable of recording video with minimum reso .....

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from 2.5% to Nil. Antimony metal, antimony waste and scrap from 5% to 2.5%. Specified components for use in the manufacture of specified CNC lathe machines and machining centres from 7.5% to 2.5%. Certain specified inputs for use in the manufacture of flexible medical video endoscopes from 5% to 2.5%. HDPE for use in the manufacture of telecommunication grade optical fibre cables from 7.5% to Nil. Black Light Unit Module for use in the manufacture of LCD/LED TV panels from 10% to Nil. Organic L .....

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the manufacture of Renewable Power System (RPS) Inverters to 5%, subject to certification by MNRE. Parts, components and accessories (falling under any Chapter) for use in the manufacture of tablet computers and their sub-parts for use in manufacture of parts, components and accessories are being fully exempted from BCD, CVD and SAD. Reduction in SAD to address the problem of CENVAT credit accumulation: All goods except populated PCBs, falling under any Chapter of the Customs Tariff, for use in .....

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ts including cellular phones is being changed from 1% without CENVAT credit or 6% with CENVAT credit to 1% without CENVAT credit or 12.5% with CENVAT credit. Excise duty structure of 2% without CENVAT credit or 12.5% with CENVAT credit is being prescribed for tablet computers. Basic Customs Duty on Digital Still Image Video Camera capable of recording video with minimum resolution of 800x600 pixels, at minimum 23 frames per second, for at least 30 minutes in a single sequence, using the maximum .....

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of integrated circuit (IC) modules for smart cards from 12% to 6%. Inputs for use in the manufacture of LED drivers and MCPCB for LED lights, fixtures and LED lamps from 12% to 6%. Mobiles handsets, including cellular phones from 1% without CENVAT credit or 6% with CENVAT credit to 1% without CENVAT credit or 12.5% with CENVAT credit. NCCD of 1% on mobile handsets including cellular phones remains unchanged. Tablet computers from 12% to 2% without CENVAT credit or 12.5% with CENVAT credit. Speci .....

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12.5% with CENVAT credit. Round copper wire and tin alloys for use in the manufacture of Solar PV ribbon for manufacture of solar PV cells to Nil subject to certification by Department of Electronics and Information Technology (DeitY). Miscellaneous: Excise duty on leather footwear (footwear with uppers made of leather of heading 4107 or 4112 to 4114) of Retail Sale Price of more than 1000 per pair from 12% to 6%. Excise duty levied on the value of duty paid on rails for manufacture of railway o .....

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additional resources to infrastructure, the effective rates of Additional Duty of Customs / Excise levied on Petrol and High Speed Diesel Oil [commonly known as Road Cess] have been increased from ₹ 2 per litre to ₹ 6 per litre. MEASURES TAKEN FOR SIMPLIFICATION OF PROCEDURES AND BETTER TAXPAYER SERVICES: Issue of PAN: PAN (Permanent Account Number) is a 10 digit alpha-numeric number allotted by the Income Tax Department to taxpayers and to the persons who apply for it under the Inc .....

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ccounts, obtaining registration for Service Tax, Sales Tax / VAT, Excise registration etc. PAN database has shown steady growth in tune with economic progress. The progressive number of PANs allotted till 31st March, 2015 is 22,32,47,190. During the current year (up to 31st March 2015) 1,86,04,948PANs have been allotted. E-Biz programme is a mission mode project of Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry to facilitate the investors by providing SIN .....

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and other Forms prescribed under the Income Tax over Internet directly by taxpayers and through e-return intermediaries (ERIs).The project also provides other web- enabled services to facilitate public private participation in the filing of returns. In Financial Year, 2014-15, 341.73 Lakh returns were received through e-filing, representing a growth of around 15.14% as compared to the last year. In F.Y.2015-16, 2.06 Crore returns have been received on the e-filing portal till 07.09.2015 registe .....

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o of Karnataka and Goa, at Bengaluru. CPC has processed in excess of 9.25 crore E- Returns till 31st March 2015 against the projected 2.7 crore e-filed returns that CPC was to process in the initial 5 years. CPC has processed 3.07 crore returns of income during Financial Year 2014-15 with a growth rate of 26%, over 2.44 crores processed during Financial Year 2013-14. CPC has achieved a peak processing capacity of 3.78 lakh returns per day. Refund Banker: The Refund Banker project has enabled sys .....

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9-760 is also available for tracking status of refunds issued through the scheme.There has been a steady increase in number and percentage of refunds issued through the scheme. During Financial Year, 2014- 2015, the percentage of refunds issued through the scheme was 99.84% of the total number of refunds issued all over India. E-Payment of taxes: The E-Payment project has enabled online payment of all direct taxes using net banking facility. The scheme provides for ease of payment anytime, anywh .....

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tively. Project Insight:The Income Tax Department has initiated Project Insight on Data Warehouse and Business Intelligence (DW&BI) platform to strengthen the non-intrusive information driven approach for improving compliance and effective utilization of information in all areas of tax administration. The Project will integrate enterprise data warehouse, data mining, web mining, predictive modelling, data exchange, master data management, centralized processing, compliance risk management an .....

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pplication(ITBA)_: Income Tax Business Application is the flagship project of the Department for automating all the processes of the Department in the foreseeable future. The project involves re-writing of the existing application, adding yet untouched processes and automating the Human Resource related aspects of the Department. The project is distinct in so far as a single vendor is responsible for hardware application as well as its performance and the performance is calibrated against strict .....

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per validation system. OLTAS project has been one of the landmark e-governance initiatives undertaken by the department. Under the project, all payments made in bank are uploaded on T+3 basis. Cash payment can be mapped with the bank and the assessee with PAN/TAN irrespective of the place of payment. A country wide network of 30 agency banks and their 13,000 branches including 3 private sector banks are authorized by the RBI for collecting direct tax payments under OLTAS. Project AST AST refers .....

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rns and maintenance of online registers as well as processing and post processing activities such as scrutiny, appeal effects, rectification and penalty proceedings are also done in AST. Non-filers Monitoring System (NMS) The Non-filers Monitoring System (NMS) was implemented as a pilot project to prioritize action on non-filers with potential tax liabilities. Data analysis was carried out to identify non-filers about whom specific information was available in AIR, CIB data and TDS/TCS Returns. .....

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the field units and all out efforts are underway to achieve the same. 26.59 lakh new taxpayers have been added upto 20th Sep 2015. National Website of the Income Tax Department http://incometaxindia.gov.in A major initiative to enhance taxpayer services was launched by the Income Tax Department with the unveiling of the new National Website (www.incometaxindia.gov.in). This website is a one-stop-shop for all taxpayers, prospective taxpayers, common citizens, tax professionals, non-residents and .....

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, exempted institutions. All Income Tax returns, forms and challans are available here for downloading in bilingual mode in an easily fillable format. Centralized Processing Cell-TDS (CPC-TDS) The Centralized Processing Cell for Tax Deduction at source (CPC-TDS) is a technology driven initiative of the Income Tax Department to put in place Non-Intrusive, Non-Adversarial TDS administration in the country. The robust technology platform has been leveraged to provide value added services to more th .....

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aster turnaround time besides ensuring seamless flow of data for tax credits. CPC-TDS introduces transparency in the processes through online display of information and provides an integrated platform for tax deductors, taxpayers and the officers of Income tax department. Centralized Processing Cell (TDS) provides a comprehensive solution to deductors through Tax Deduction, Reconciliation, Analysis and Correction Enabling System (TRACES) - India is one of the very few countries to put in place a .....

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rd to view mismatch related information and submit online response on the issue. The responses submitted online by the taxpayers will be processed and if the response and other information are found satisfactory as per automated closure rules, the issue will be closed. The taxpayer can check the updated status by logging in to the e-filing portal. E- verification of return of income: To facilitate the taxpayers and to provide end-to-end e-enabled services, a system of electronic verification of .....

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07.09.2015. Constitution of Committee to recommend measures for simplification of the Income Tax Act, 1961: A committee under Justice (Retd.) R.V. Easwar has been constituted to recommend measures for simplification of the Income-tax Act, 1961 with a view to reduce litigation and promote ease of doing business. The Government has accepted the report of Justice A.P. Shah Committee that Minimum Alternate Tax (MAT) is not applicable to Foreign Portfolio Investors (FPIs). Further it has also been de .....

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Amendment bill, 2014 in the LokSabha on 19.02.2014 to facilitate introduction of Goods and Services Tax in the country. This Bill has been passed by LokSabha on 06.05.2015. The proposed amendment in the Constitution will confer powers both to the Parliament and State legislatures to make laws for levying GST on the supply of goods and services in the same transaction. GST will simplify and harmonise the indirect tax regime in the country. GST will broaden the tax base, and result in better tax .....

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chieved successfullyThe Government proposes to roll out Goods and Services Tax (GST) in the country in the year 2016. STEPS TAKEN TO CURB BLACK MONEY: Constitution of Special Investigation Team(SIT) Constitution of a Special Investigation Team (SIT), in May 2014, with two former judges of the Hon'ble Supreme Court as Chairman and Vice-Chairman, inter alia, to deal with issues relating to black money stashed abroad; Introduction of Undisclosed Foreign Income and Assets(Imposition of Tax) Bill .....

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time compliance window under the Act. The salient features of the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 are as under:- Rate of tax and penalty - Undisclosed foreign income or assets shall be taxed at the flat rate of 30 percent without any exemption, deduction or set off of any carried forward losses. The penalty for non-disclosure of income or an asset located outside India will be equal to three times the amount of tax payable thereon, i.e., 90 percent of the un .....

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mprisonment for a term of six months to seven years. The same amount of penalty is prescribed for cases where although the assessee has filed a return of income, but he has not disclosed the foreign income and asset or has furnished inaccurate particulars of the same. The punishment for willful attempt to evade tax in relation to a foreign income or an asset located outside India will be rigorous imprisonment from three years to ten years. In addition, it will also entail a fine. Abetment or ind .....

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ided that failure to report bank accounts with a maximum balance of upto ₹ 5 lakh at any time during the year will not entail penalty or prosecution. One time compliance opportunity - The Black Money Act also provided a one-time compliance opportunity for a limited period (from 1st July, 2015 to 30th September, 2015) to persons who have any undisclosed foreign assets which have hitherto not been disclosed for the purposes of Income-tax. Such persons were allowed to file a declaration befor .....

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nt Bill, 2015 has been introduced in LokSabha to amend the Benami Transactions (Prohibition) Act(BTPA) 1988. The new amended law will enable confiscation of Benami property and provide for prosecution, thus blocking a major avenue for generation and holding of black money in the form of Benami property, especially in real estate. Prevention of Money Laundering Act(PMLA): The offence of concealment of income or evasion of tax in relation to a foreign asset will be made a predicate offence under t .....

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ome and Assets(Imposition of Tax) Bill, 2015 also proposes to amend Prevention of Money Laundering Act (PMLA), 2002 to include offence of tax evasion under the proposed legislation as a scheduled offence under PMLA. Section 132 of the Customs Act, 1962 has been included in Finance Bill, 2015 making false declaration as predicate offence. Thus, in keeping with the commitment of the government for focussed action on black money front, an unprecedented and multi-pronged attack has been launched to .....

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ct that if any foreign exchange, foreign security or any immovable property situated outside India is held in contravention of the provisions of this Act, then action may be taken for seizure and eventual confiscation of assets of equivalent value situated in India. These contraventions are also being made liable for levy of penalty and persecution with punishment of imprisonment upto five years. Automatic Exchange of Information(AEOI): Joining the global efforts to combat tax evasion, including .....

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ey within the country. The Finance Bill includes a proposal to amend the Income Tax Act to prohibit acceptance or payment of an advance of ₹ 20,000 or more in cash for purchase of immovable property. Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of ₹ 1 lakh. The third party reporting entities would be required to furnish information about foreign currency sales and cross border transactions. Provision is also being made to tackle splitting of rep .....

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n its pursuit of achieving the goal of Universal Financial Inclusion. The major achievements of the Department during the Current Fiscal are as follows : 1. PRADHAN MANTRI JAN DHAN YOJANA (PMJDY) : Mera Khata - Bhagya Vidhaata The biggest financial inclusion initiative in the world was announced by the Prime Minister on 15th August 2014 and Mega launch was done by him on 28th August 2014 across the country. This National Mission on Financial Inclusion has an ambitious objective of covering all h .....

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uilt accident insurance cover of ₹ 1 lakh . Achievements As on 11th November 2015, Banks have opened 19.21 Crore accounts under PMJDY with deposit of more than 26819 crores. Rupay cards issued to 16.51 Cr. customers. Two lakh accounts are opened per day As on13th November 2015 more than 45.98 lakhs accounts have been offered Overdraft facility. Out of these overdraft facility has been availed by 8.86 lacs account holders amounting to Rs. 124.95 Lacs. 1336 Claims of Life cover of ₹ 30 .....

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nsure universal banking access more than 1.26 lakh Bank Mitrs have been deployed with on- line devices capable of e-KYC based account opening and significant number with interoperable payment facility. Jan Dhan Yojana features in Guinness Book of World Records: Guinness World Records recognised the achievements made under PMJDY for opening 18,096,130 accounts by Banks in a week (from 23 to 29 August, 2014) as a part of Financial Inclusion Campaign. Payment of wages under MNREGA: More than Rs 427 .....

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OUNTS % OF ZERO-BALANCE-ACCOUNTS Public Sector Bank 8.39 6.80 15.20 13.46 7.03 21450.31 34.54 Regional Rural Bank 2.99 0.50 3.49 2.51 0.98 4683.38 32.09 Private Banks 0.44 0.29 0.73 0.64 0.23 1149.36 41.10 Total 11.82 7.60 19.41 16.61 8.24 27283.06 34.31 PRADHAN MANTRI MUDRA YOJANA (PMMY) : FUND THE UNFUNDED In the Union Budget 2015-16, the Finance Minister proposed to create a Micro Units Development Refinance Agency (MUDRA) Bank. Pradhan Mantri Mudra Yojana (PMMY) has been launched by the Prim .....

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upto ₹ 5.0 lakh - Kishore Loans above ₹ 5.0 lakh and upto ₹ 10 lakh - Tarun MUDRA Card is an innovative credit product wherein the borrower can avail of credit in a hassle free and flexible manner. Public Sector Banks have been allocated a total target of ₹ 70,000 crore, and private sector/ Foreign Banks a target of ₹ 30000 cr. The RRBs were given a target of ₹ 22000 crore. Altogether, the target for loan disbursement under PMMY for F.Y 2015-16 is fixed at 1, .....

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56 Cr. to ₹ 15704 Cr.) In the Tarun Loan category, disbursements have increased by 21% (from ₹ 7851 Cr. to ₹ 9501 Cr.) JAN DHAN SE JAN SURAKSHA ATAL PENSION YOJANA (APY) The Government of India has introduced a pension scheme called the Atal Pension Yojana (APY), with effect from 1st June, 2015, pursuant to the announcement in the Budget for 2015-16 on creating a universal social security system for all Indians, especially the poor, the under-privileged and the workers in the u .....

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ojana. Achievements: A total of 10.35 lakh subscribers have been enrolled under the Scheme as on 24.11.2015. 4. PRADHAN MANTRI SURAKSHA BIMA YOJANA (PMSBY) The Pradhan Mantri Suraksha BimaYojana (PMSBY) is a one year personal accident insurance scheme, annually renewable offering coverage of Rs. two lakh for death or permanent total disability and Rs. one lakh for permanent partial disability due to an accident. It is available to people in the age group of 18 to 70 years. - Subscription materia .....

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5. PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (PMJJBY) The Pradhan Mantri Jeevan Jyoti BimaYojana (PMJJBY) is a one year life insurance scheme, annually renewable offering coverage of Rs. two lakh for death due to any reason and is available to people in the age group of 18 to 50 years (life cover up to age 55 on payment of premium after enrolment up to age 50 years). - Subscription material made available in all regional languages. - An exclusive website www.jansuraksha.gov.in created by DFS with .....

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an annual plan basis. This often resulted in problems like delay in approaching the market, hammering of stocks, overhang, lack of flexibility in divestment of stocks, etc. 2014-15:With a view to address these problems, during last two quarter of 2014-15 a rolling plan approach was adopted with advance preparation/planning, fast tracking the approval process, maintaining secrecy so as to avoid hammering of stocks and concluding disinvestment of Government of India (GoI) shareholdings in CPSEs in .....

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ublic Sector Enterprises (CPSEs) and ₹ 28,500 crore from strategic disinvestment . Measures to accelerate the disinvestment process Keeping in view the budgeted target of disinvestment for 2015-16, the Department of Disinvestment (DoD) has taken further measures to accelerate the disinvestment process by taking the following measures : Replacing annual plan with rolling plans Creating a pipeline of proposals for CPSEs, which at present, are at different stages of approval. Fast tracking of .....

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quarters of 2015-16, which itself is a record achievement when compared with average number of less than 2 issues with an average amount ₹ 1,458 crore (approx.) raised over the same period between 2009-10 and 2014-15. This is not only the highest of the corresponding period of any year in the past, but is also higher than the average realization for the entire financial year between 2000-2014. Further, the Government disinvestment programme has done better than the private sector. Althoug .....

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14th) Finance Commission (FFC), the Annual Borrowing ceiling for States was fixed for the year 2015-16 at ₹ 3,78,903 crore as against the Annual Borrowing ceiling of ₹ 3,34,989 crore fixed for the States in 2014-15. Restricting the States to remain within Net Borrowing Ceiling (NBC) fixed by Ministry of Finance by allowing them to raise borrowings to the tune of ₹ 2,99,931 crore has resulted in net lower borrowings of ₹ 35,058 crore and consequently kept outstanding Debt/ .....

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ast movement. This will help the State to borrow at competitive interest rates from Market. Prior concurrence of D/o Expenditure by States for seeking external loan by multi-lateral agencies, have been dispensed with for improving ease of doing business. The States are required to remain within the borrowings ceiling fixed by the Ministry of Finance each year and also the fiscal deficits limits & debt to GSDP norms prescribed by Finance Commissions as incorporated in the FRBMA of States. In .....

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rance from debt sustainability angle. Finance Commission Award In order to rationalize public spending leading to improvement in fiscal performance of the States, Fourteenth Finance Commission (FFC) has continued the thrust given the earlier Commissions, worked out a fiscal roadmap for the States as follows: (i) Revenue Deficit - Zero (ii) Fiscal Deficit - 3% of GSDP, with additional flexibility of 0.5% on two counts of 0.25% of GSDP on meeting the criteria of IP/TRR ratio of 10% or less 0.25% o .....

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vertical tax devolution. Besides share of Central taxes, FFC has recommended grants-in-aid to cover Revenue Deficit of States, Local Body grants (both to rural and urban local bodies) and grants for augmenting the State s Disaster Response Fund (SDRF). Based on its recommendations the FFC, the estimated total increase (both from tax devolution and FFC grants together), in FFC transfers in 2015-16 from 2014-15 is estimated to be about 2.1 lakh crores. As per the recommendations of FFC, the States .....

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pected to add substantial spending capacity through States budgets and give fiscal autonomy to the States. A major step in the process has been achieved by transferring more resources to the States in the nature of untied funds so that States may make and implement schemes or programmes which are best suited to the local needs, requirements and aspirations of people. This will afford required flexibility to the States to address meaningfully the contextual needs and to develop as per their geniu .....

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10.12.2015) Resulting in biggest ever increase in devolution on account of State s share in sharable pool of Union taxes recommended by FFC from 2015-16, allows the States greater autonomy in designing and financing of schemes/projects . However, having considered considerable amount of committed spill over liabilities for projects sanctioned prior to implementation of 14th FFC award, assistance required in areas of critical nature, support for States covered under Re-organization Act, support .....

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7; 30,454 cr.) under this head during corresponding period in the last year. Total transfers (including loan) of ₹ 11,228 crore has been made to the States for EAPs in comparison to corresponding releases of ₹ 11,130 crore made during the last year. As far releases under Special Plan are concerned, an amount of ₹ 1368 crore has so far been released to the States for earmarked purposes. Besides, releases to the tune of ₹ 5499 crore stands released as against NDRF releases .....

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ways, Railways, Airports, Digital Bihar, Petroleum & Gas, Tourism. The projects approved under the package would be implemented by the respective line Ministry(s) in phased manner over a period of 2 to 5 years depending upon commencement of work. Taking into account financial and physical progress of the projects sanctioned under the package, necessary budget provisions for funding of the projects are to be made by the respective administrative Ministry(s). Besides, an amount of ₹ 40,6 .....

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opment, Sports, Agriculture and Food Processing, Tourism, Urban Development, Security and Welfare of displaced people, Pashmina Promotion Project, etc. DEVELOPMENT EXPENDITURE During the period from 1st January, 2015 to 30th November, 2015, the Expenditure Finance Committee (EFC) chaired by Secretary (Expenditure) recommended 53 Plan Investment proposals/Schemes of various Ministries/Departments costing ₹ 4,71,121.96 crore. Also during the period, Public Investment Board (PIB) chaired by S .....

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ntral PSUs on the recommendations of Bureau for Restructuring of Public Sector Enterprises (BRPSE). It is also actively involved in working out modalities for financial assistance to CPSEs, quantification of I&EBR generation for preparation of budget, finalizing modernization of Plants & Equipments to ensure more efficiency in production .It is also the Secretariat of National Clean Energy Fund, in respect of which, guidelines for appraisal/approval of the project have been issued. Issue .....

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is being analysed. The major recommendation of the report was as follows: Recommended Date of implementation: 01.01.2016 Minimum Pay: Based on the Aykroyd formula, the minimum pay in Government is recommended to be set at ₹18,000 per month. Maximum Pay: ₹2,25,000 per month for Apex Scale and ₹2,50,000 per month for Cabinet Secretary and others presently at the same pay level. Financial Implications: The total financial impact in the FY 2016-17 is likely to be ₹1,02,100 c .....

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scenario will be 23.55 percent. Within this, the increase in pay will be 16 percent, increase in allowances will be 63 percent, and increase in pension would be 24 percent.The total impact of the Commission s recommendations are expected to entail an increase of 0.65 percentage points in the ratio of expenditure on (Pay+Allowances+ Pension) to GDP compared to 0.77 percent in case of VI CPC.The full report is available in the website http://finmin.nic.in/ CENTRAL PENSION ACCOUNTING OFFICE (CPAO) .....

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considerable number of pensioners have got seeded their Aadhaar number with their bank accounts and they have been in a position to avail the facility of getting their life authenticated on line by using digital life certification in case they desired so. With the help of banks, media and Pensioners Association, pensioners have been pursued to provide their contact details while submitting Life Certificate for better service delivery to them. Life Certificate format for the pensioner has been mo .....

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provided to those pensioners who have provided their mobile numbers. As a result pensioner can easily track the movement of their pension case. This is in addition to already available facility on the website of CPAO (www.cpao.nic.in) to pensioner to track their pension processing status at CPAO by providing 12 digit PPO number. CPAO in now running fully functional grievance redressal mechanism and a pensioner can lodge grievance through telephone, website, e-mail, letters or visit. The queries .....

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by using login and password provided by CPAO has been given to pensioners. Consequently, they need not separately approach CPAO to provide a copy of their SSA issued to the bank. This facility ensures a digital presence of record for pensioner. With the implementation of e-scrolls, CPAO in now in a better Position to audit the monthly payments to pensioners. CPAO can also monitor the payment of first credit of new pension case. As against approved time schedule of 21 days, CPAO has issued Autho .....

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ctive decision support system, as part of the Digital India initiative of GoI. The latest enhancement in the functionalities of PFMS commenced in late 2014, wherein it has been envisaged that digitisation of accounts shall be achieved through PFMS and the additional functionalities would be built into PFMS in different stages. The enhanced application would cater to all Plan and Non Plan payments of Government of India, all tax and non-Tax receipts and also functions such as a comprehensive HRMI .....

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