Petrol, diesel to be costlier; tax on super-rich, gold imports

Agencies
July 5, 2019

New Delhi, Jul 5: Finance Minister Nirmala Sitharaman on Friday hiked tax on petrol and diesel, raised import duty on gold, levied additional surcharge on super rich and brought a tax on high value cash withdrawals as she sought to spur growth with reduction in corporate tax and sops to housing sector, startups and electric vehicles.

Presenting the maiden budget of Modi 2.0 government in Lok Sabha, Sitharaman, the first full-time woman Finance Minister, proposed measures to ease liquidity crisis facing shadow banking sector (NBFCs) and providing Rs 70,000 crore capital to public sector banks while seeking to raise additional resources through privatisation of some PSUs.

In relief to tax payers, she provided for an additional deduction of Rs 1.5 lakh on interest paid on loans borrowed up to March 31, 2020 on purchase of a house up to Rs 45 lakh.

Corporate tax on companies with turnover of up to Rs 400 crore has been slashed to 25 per cent from current 30 per cent. Presently, the lower tax rate is applicable on companies having a turnover of up to Rs 250 crore.

Sitharaman said the reduced tax rate would cover 99.3 per cent of corporates in the country.

To boost use of electric vehicles, an additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to purchase EVs has been proposed.

Also the government has asked the GST Council to reduce tax rate on EVs from 12 per cent to 5 per cent. Customs duty on certain parts of EVs has been reduced.

Addressing the angel tax issue faced by startups, she said startups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium.

A mechanism of e-verification will be put in place and with this, the funds raised by startups will not require any tax scrutiny.

She raised special additional excise duty and road cess on petrol and diesel by Re 1 per litre each, saying lower crude oil prices provide her with an opportunity to review taxes on the sector.

Also, customs duty on gold and precious metals was raised from 10 per cent to 12.5 per cent to mobilize resources.

Basic customs duty was raised on an array of products including tiles, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV camera.

Excise duty of Rs 5 per 1000 has been imposed on cigarettes of length exceeding 65 mm, while 0.5 per cent duty has been levied on chewing tobacco, zarda and tobacco extracts and essence.

"I propose to levy TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account," she said.

She also announced a surcharge on individuals having taxable income of Rs 2 crore to Rs 5 crore and for those above Rs 5 crore which will hike their effective tax rate by 3 per cent and 7 per cent respectively.

Sitharaman also proposed to made Aadhaar and PAN interchangeable for the purpose of filing Income Tax returns.

To boost FDI inflow into the country, the government will examine further liberalisation of sectoral investment caps in aviation, media, animation and insurance.

The Budget also proposed 100 per cent FDI in insurance intermediaries and easing of local sourcing norms for single brand retail.

She said measures are being worked out to ease filing returns and tax compliance. Taxpayers with an annual turnover of less than Rs 5 crore will have to file only quarterly returns, she said

To boost cash-less economy, she said business establishments with annual turnover of Rs 50 crore will have to use BHIM, UPI, Aadhaar Pay, NEFT, RTGS modes of payments with no charges or merchant discount rates will be imposed on customers or merchants.

RBI and banks will absorb these costs, she said.

The Securities Transaction Tax or STT is proposed to be restricted to the difference between settlement and strike price of options, she said.

She proposed an additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles.

This will lead to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the payer.

She said the government will spend Rs 100 lakh crores for infrastructure in next five years.

The disinvestment target for FY20 was raised to Rs 1.05 lakh crore from Rs 90,000 crore set in the interim budget and government will continue with disinvestment of PSUs in the non-financial space as well.

Regulation of housing finance companies has been moved to the Reserve Bank of India (RBI) from the NHB.

The government proposed to allocate Rs 70,000 crore for PSU Bank recapitalisation.

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News Network
June 8,2020

Panaji (Goa)/Bhopal (Madhya Pradesh), Bengaluru(Karnataka)/New Delhi [India], June 8 (ANI): With the government allowing the re-opening of restaurants and eateries from Monday, these establishments re-opened across several states on Monday including in Goa, Madhya Pradesh and Delhi, with necessary precautions in place amid COVID-19 crisis.

Restaurants reopened in Panaji today after relaxations in lockdown.

Speaking to ANI, Goa Hotel and Restaurant Association President, Gaurish Dhond said, "We expect that not more than 25 per cent of restaurants will reopen because our labour force is dependent upon migrant workers who have gone to their homes".

"Every guest will be checked with a thermal gun, we will provide them with a sanitizer and a digital menu most probably. We would like to request our customers to pay online. Residential hotels are also allowed to operate and guidelines have been issued for them," he added.

Bars are not allowed to operate, he added.

While religious places across the country were thrown open today, worship places continued to remain closed in Goa till June 30.

In Bhopal restaurants opened but with fewer customers venturing to eat outside.

Speaking to ANI, C Kumaran, Manager, India Coffee House, New Market said, "We will conduct a temperature check for customers at the entry point. Then the customers will have to wash and sanitize their hands only then they will be allowed to sit inside. Only two persons will be allowed to sit on a four-seat table."

"This restaurant has a seating capacity of around 120 persons which has now been reduced to 50. Even in the kitchen, staff capacity has been reduced to 50 per cent," he added.

Meanwhile, malls re-opened in Bengaluru today, people along with staff members were allowed to enter inside Garuda Mall while maintaining social distancing.

"As per government norms, we are following all the preventive measures. Staff and other people are being sanitized and then only allowed inside the mall. The mall has been deep cleaned. People entering the mall should have Aarogya Setu App installed in their mobile phones if not, they will be sent back," said John Joseph, Manager, Garuda Mall.

Restaurants re-opened in the national capital as Delhi CM Arvind Kejriwal announced yesterday that all restaurants and malls are allowed to resume operations from today.

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Agencies
June 9,2020

Srinagar, Jun 9: Suspended Jammu and Kashmir DSP Davinder Singh, who was nabbed while ferrying two Hizbul Mujahideen terrorists on the Srinagar-Jammu Highway, moved a Delhi court on Tuesday seeking interim bail.

Besides Singh, two other accused -- Syed Naveed Mushtaq and Imran Shafi Mir -- have also sought bail. The Special Cell of the Delhi Police is probing their role in the alleged planning of a terror attack.

The trio has sought bail asserting that there is no evidence to show that there was any conspiracy to commit an act that would threaten the sovereignty of the country. The court has listed the matter for hearing on Wednesday.

"The accused are wrongly and falsely implicated in the case. There is also no material to substantiate that the accused had the intention or conspired to carry out a terror strike," the plea stated.

Singh is currently under judicial custody at the Hira Nagar Jail in J&K till June 16. Besides Singh, three other accused -- Javed Iqbal, Syed Naveed Mushtaq and Imran Shafi Mir -- are also under custody.

Delhi Police's Special Cell had brought him from Hira Nagar Jail to the national capital in March for interrogation in another case.

The police had earlier told the court that Mushtaq, who was the commander of Hizbul Mujahiddeen in Shopian district, along with other militants were planning to execute a terror attack in Delhi and other parts of the country and targeted killings of protected persons.

In connection with this, the Delhi Police had filed an FIR which stated that the youth of Jammu and Kashmir and Punjab are being trained for carrying out terrorist activities. Singh was taken into custody under this FIR and was also interrogated regarding the Khalistan angle.

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News Network
May 21,2020

United Nations, May 21: At least 19 million children in parts of Bangladesh and India are at "imminent risk" from flash flooding and heavy rain as Cyclone Amphan makes landfall and the state of West Bengal is expected to take a direct hit from the powerful storm, the UN's children agency has warned.

The extremely severe cyclonic storm Amphan made a landfall at Digha in West Bengal and Bangladesh on Wednesday, leaving a trail of destruction. At least three persons were killed in India and seven in Bangladesh.

The UNICEF said that at least 19 million children in parts of Bangladesh and India are at “imminent risk from flash flooding, storm surges and heavy rain as Cyclone Amphan makes landfall.”

West Bengal, “home to more than 50 million people, including over 16 million children, is expected to take a direct hit from the powerful storm,” the UN agency said in a statement on Wednesday.

The UNICEF said it is also very concerned that the COVID-19 could deepen the humanitarian consequences of Cyclone Amphan in both the countries. Evacuees who have moved to crowded temporary shelters would be especially vulnerable to the spread of respiratory diseases like COVID-19, as well as other infections.

“We continue to monitor the situation closely,” said UNICEF Regional Director for South Asia Jean Gough.

“The safety of children and their families in the areas that will be impacted is a priority and it is good to see that the authorities have planned their urgent response factoring in the on-going COVID-19 pandemic.”

Across the region, the UNICEF is “working closely with the governments of Bangladesh and India and stands ready to support humanitarian operations to reach children and families affected by Cyclone Amphan.”

Based on the storm’s current trajectory, Cox’s Bazar in Bangladesh – now sheltering over 850,000 Rohingya refugees – is likely to experience high winds and heavy rains which may cause damage to homes and shelters in the refugee camps and Bangladeshi communities. This population is already highly vulnerable and cases of COVID-19 have recently been confirmed in the camps and host communities.

The UNICEF said it is working with the Deputy Commissioner’s Office in Cox’s Bazar, the Office of the Refugee Relief and Repatriation Commissioner, and humanitarian partners to help ensure Bangladeshi and Rohingya children and families remain protected.

These efforts include raising awareness among Rohingya and Bangladeshi communities on cyclone preparedness and prepositioning emergency life-saving water, sanitation, hygiene and medical supplies to meet immediate humanitarian needs.

Meanwhile, UN Secretary-General Antonio Guterres’ spokesperson Stephane Dujarric said at the daily press briefing that UN teams on the ground continue to work with the Government of Bangladesh to prepare and support those in need in the wake of the cyclone.

“Given the current pandemic, this support includes distributing personal protective equipment, disinfectants and other materials to evacuation shelters. To reduce the person-to-person contact during the delivery of aid, e-cash distributions will be used,” he said adding that the UN along with its partners is mobilising more than 1,700 mobile health teams and preparing for emergency food deliveries.

“The Super Cyclone is taking a westerly trajectory towards India, but nearly 8 million people in Bangladesh remain at risk,” he said adding that the Bangladesh government has evacuated more than 2 million people in high-risk areas. 

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