Narendra Modi fit to become prime minister, Sushma Swaraj says

New Delhi, 17: Tensions on the Indo-China border have spiked to the highest since 1962 after over 20 troops, including an Indian commanding officer, were killed in the face-off in Galwan valley that has seen a six-week long standoff underway with the Peoples Liberation Army.

The Army said that the soldiers – including the Commanding Officer of 16 Bihar regiment in charge of the area – died while a `de-escalation process’ was underway. Sources said that this death toll could rise up as some soldiers are currently not accounted for after PLA troops attacked with spiked sticks and stones in the Galwan valley.

Chinese side also has casualties but the number is still not known. The Indian death toll is perhaps the worst single day loss in decades and has come at a time when thousands of troops are forward deployed in Eastern Ladakh.

ET was the first to report on May 12 about a massive troop build up in the Galwan valley, which is an old flashpoint that had seen action in the 1962 war as well.

There have been reports of casualties on the Chinese side in the clash but numbers are currently not available. Worryingly, information from the ground suggests that several Indian soldiers, including four officers, are missing and could have been taken captive by a vastly larger Chinese force. Their status is still not known.

“During the de-escalation process underway in the Galwan Valley, a violent face-off took place yesterday night with casualties. The loss of lives on the Indian side includes an officer and two soldiers. Senior military officials of the two sides are currently meeting at the venue to defuse the situation,” an Indian Army statement reads.

The Ministry of External Affairs said that the clash occurred when the Chinese side violated the LAC. “On the late-evening and night of 15th June, 2020 a violent face-off happened as a result of an attempt by the Chinese side to unilaterally change the status quo there. Both sides suffered casualties that could have been avoided had the agreement at the higher level been scrupulously followed by the Chinese side,” a statement reads.

The loss of the Commanding Officer is especially devastating and he had been directly involved in de-escalation talks with the Chinese side, including one hours before the clash took place. Sources said that the talks on Monday morning had led to an agreement for Chinese forces to withdraw from Indian territory as part of the disengagement.

According to one version, the CO had gone to the standoff point with a party of 50 men to check if the Chinese had retreated as promised. As the Indian side proceeded to demolish and burn illegal Chinese structures on its side of the LAC, including an observation post constructed on the South bank of the river, a fresh stand off took place as a large force of Chinese troops returned back.

Sources said that a Chinese force in excess of 250 quickly assembled near Patrol Point 14 and were physically stopped by Indian soldiers from entering Indian territory. Soldiers from both sides did not use firearms but the Chinese soldiers carried spiked sticks to attack.

Given the terrain of the region, a part of the standoff and clash took place in the middle of the Galwan river that is currently flowing at full spate, leading to high casualties as injured soldiers got swept away. Indian soldiers have to cross the Galwan river at atleast five points to reach PP 14, which marks the LAC.

Chinese media reports on Tuesday quoted the spokesperson from its Western Theatre Command as laying claim over the Galwan valley region and blaming the Indian side for the clash. Reports quoted Col Zhang Shuili as saying that India has violated the consensus made during Army commander level talks.

As reported, Galwan river area has a painful history with China, with Peoples Liberation Army (PLA) soldiers surrounding a freshly set up Indian Army post in July 1962, in what would be one of the early triggers to the Sino-Indian war. At an Army post that was overrun at Galwan, 33 Indian soldiers were killed and several dozen taken captive in 1962.

In the past, the Doklam crisis in 2017 saw tensions building up along the Pangong Tso lake as well with soldiers engaging in a fight with sticks and stones. However, the Eastern Ladakh standoff is of a much more serious nature, with over 6000 Chinese troops lined up with tanks and artillery, faced off with a larger Indian forces. Troop build up has also been reported across the borders in Himachal Pradesh, Uttarakhand, Sikkim and Arunachal.

New Delhi, Jun 13: In a bid to provide relief to small businesses amid the coronavirus pandemic, the GST Council on Friday decided to halve the interest rate on late filing of GSTR-3B returns for the period of February, March and April 2020.

The interest rate on late return filing will be 9% from the usual 18% till September 30, 2020. The benefit will be available for small taxpayers with aggregate turnover of up to Rs 5 crore.

For the three months, small taxpayers will not be charged any interest till the notified dates for relief and thereafter 9% interest will be charged till September 30, a Finance Ministry statement said.

"For small taxpayers (aggregate turnover upto Rs 5 crore), for the supplies effected in the month of February, March and April 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6th July 2020) is reduced from 18 per cent per annum to 9 per cent per annum till 30.09.2020," said the statement.

The Council has also extended relief to small taxpayers for subsequent period of 2020 through waiver of late fees and interest if the returns in Form GSTR-3B for the supplies effected in the months of May, June and July are furnished by September 2020.

It has also decided to reduce the late fee on the filing of GSTR-3B returns for the period between July 2017 and January 2020. The late fee has been capped at Rs 500, but interest will be charged at the existing rate on the due tax liability.

Speaking to the media in New Delhi after a GST Council meet through videoconference, Union Finance Minister Nirmala Sitharaman said that those entities with no tax liability will not have to submit the late fee for the period.

For entities with tax liability but which have not filed returns or have filed returns late, the late fee has been capped at Rs 500 without interest. Interest will, however, be payable on the tax component at the applicable rate for delays.

To facilitate taxpayers who could not get their cancelled GST registrations restored in time, the Council has provided an opportunity for filing of application for revocation of cancellation of registration up to September 30, 2020, in all cases where registrations have been cancelled till June 12, 2020.

When it comes to the economy, dark days do loom large over India. May it be growth (lowest since 2008), inflation (highest in the last six years), or revenue collection (lowest in 10 years), the Indian economy is faltering. Hence, there is little leeway that can be assumed in the incumbent Union Budget 2020 (the first of the decade) if the economy needs to be boosted.

While presenting the decade's first Budget for India, finance minister Nirmala Sitharaman said on Saturday in Parliament:

Taxation

•             AADHAR based tax verification introduced

•             Review of customs duty exemptions in September 2020

•             GST refund process simplified

•             Electronic invoice implementation in phases

•             New digital scheme for tax litigation

•             PAN to be instantly allotted online against Aadhar

•             Vivaad se Vishwas Scheme: Defaulter to pay only disputed tax and no penalty or interest by 31 March 2020, post which additional amount can be paid till June 2020

•             Measure to promote affordable housing - tax holiday extended for developers

•             Concession on real estate transactions

•             Turnover threshold for audit raised to Rs 5 crore from 1 crore

•             Company audit requirements eased

•             Taxes on ESOPs (employee stock ownership) in start-ups deferred by 5 years

•             100% per cent tax exemption

•             Corporate Tax at 15%

•             Dividend Distribution Tax removed, dividend taxed only for recipients

•             No tax for 0-5 lakh

•             30% above 15 lakh

•             25% for income between Rs 12.5-15 lakh

•             20% for income between Rs 10-12.5 lakh

•             15% for income between Rs 7.5-10 lakh

•             10% for income between Rs 5-7.5 lakh, against the prevailing 20%

•             A new, optional simplified personal income tax regime for those not seeking exemptions

Major steps and initiatives taken by the government in finance

•             3.8 percent fiscal deficit estimated

•             GDP nominal growth expected at 10 per cent

•             Govt to sell part of holding LIC via IPO (initial public offering)- partial LIC disinvestment

•             Partial credit guarantee for NBFCs

•             New law for netting of financial contracts

•             Mechanism to end liquidity crisis

•             NRIs (non resident Indians) can invest in certain govt securities

Aspirational India: Caring society

•             App-based invoice financing loans for MSMEs

•             Amendment to Factoring Regulation Act to aid MSMEs

•             Pension Fund Regulatory and Development Authority (PFRDI) Act amendments

•             No criminal liabilities for civil acts

•             Auto-enrolment in universal pension scheme

•             5958 cr allocated for Ladakh

•             30757 cr allocated for J&K

•             Insurance for depositors raised to 5 lakh from 1 lakh

•             Robust mechanisms in place to monitor all PSU banks

•             Depositors’ money safe

•             100 cr for hosting G20 in 2022

•             National Recruitment Agency to be set up

•             Tax payers’ charter to be enshrined in statutes

•             Amendments for Companies Act

•             Tax payer charter proposed to free citizens from tax harassment

•             Businesses should have confidence that system is fair

•             4400 crore allocation for clean air and climate change policy

•             Aim to reduce carbon footprint - Warning to old thermal plants

•             Committed to preserve environment, tackle climate change

•             23150 crore for culture ministry

•             2500 crore for tourism sector

•             Institute of Heritage and Conservation to come up soon

•             Aim to set up more museums

•             5 archaeological sites to be made iconic

•             Proposal to end manual scavenging

•             53700 crore for welfare of STs

•             85000 crore for SCs and OBCs for 2021

•             35600 crore for nutritional schemes

•             Gross enrollment ratio of girls higher than boys in elementary level

•             Beti Bachao, Beti Padhao - tremendous results

Aspirational India: Infrastructure and economic development

•             Further reforms for transparent price discovery for natural gas

•             22000 crore for power sector

•             8000 crore for quantum technology in next 6 years

•             Two national level science schemes

•             Expand Jan Aushadhi Scheme

•             1 lakh gram panchayats to be connected via Bharat Net

•             6000 crore for Bharat Net

•             Data Centre parks to be set up across the country

•             National Gas Grid to be expanded

•             Reforms to help stressed DISCOMS (distribution companies)

•             Delhi-Mumbai Expressway by 2023

•             100 more airports by 2024

•             Plans to energise economic activity along river banks

•             Need to enhance sea ports

•             High Speed Mumbai-Ahmedabad train

•             More Tejas-type trains

•             4 station redevelopment projects under PP model

•             2000 km of strategic highways to be built, 11000 km of track electrification

•             Accelerated development of highways

•             National Logistics Policy to be released soon

•             Big push on infrastructure - 100 lakh crore

•             National Technical Textiles Mission to be set up

•             1480 crore outlay for textile sector

•             27300 crore for industrial development by 2021

•             Digital refund of duties for exporters

•             Boost domestic manufacturing - electronic equipment, mobile phone, medical devices

•             5 new smart cities in collaboration with states

•             Investment clearance cell to be set up for end to end facilitation

•             Entrepreneurship has been the strength of India

Aspirational India: Education and skills

•             High need for medical teachers and paramedics

•             Internships for engineers in panchayats

•             Rs 99300 cr for education sector

•             Large hospitals to be encouraged to start PG courses

•             Attach medical colleges to district hospitals

•             National police university to be set up

•             IND-SAT programme for overseas students for studying in India

•             New courses in 159 universities by 2026

•             Focus on education for jobs

•             Propose a fresh education policy

•             Urban local bodies should give opportunities to new engineers

•             Education needs more finances

Aspirational India: Healthcare

•             AI (artificial intelligence) to be used for Ayushman Bharat Scheme

•             69000 crore for health sector

•             Propose to set up more hospitals

•             Holistic vision for national healthcare

Aspirational India: Agriculture, Irrigation and rural development

•             Need to liberalise farm markets

•             108 million metric tonne milk production by 2021

•             2.83 lakh cr allocation for agriculture and irrigation

•             Propose raising fish production to 200 lakh tonne

•             Zero budget national farming

•             NABARD refinance scheme to be expanded

•             Village credit card scheme

•             Agriculture credit target for 2020 set at Rs 15 lakh crore

•             Village storage scheme for farmers, zero budget natural farming

•             Dhanya Lakshmi scheme for women in villages

•             Krishi Udaan by civil aviation ministry for air transport of such commodities over longer distances

•             Indian railways to set up 'kisan rail'

•             Govt to provide help to geo-tag warehouses

•             Financial inclusion has helped raise farm incomes

•             Plan for 100 water stressed districts

•             Scheme for 20 lakh farmers to set up solar pumps

•             Doubling farm income - model agricultural land leasing act, balanced use of fertilisers, solar pumps for 20 lakh farmers

Budget 2020 and its three focuses

•             Budget's first focus is 'Aspirational India'. Second focus: economic development for all. Third focus: building a caring society.

•             FDI at 284 billion dollars, achieved 7.84% growth

•             GST formalised the economy

•             Efficiency gained in logistics

•             16 lakh new tax payers added

•             Fundamentals of economy hold strong

•             Scaled up implementation of pro-poor schemes

Key challenges FM faces

•             India needs to grow by 9 per cent to 10 per cent a year to become the $5 trillion economy by 2024, as projected by the government. The government is now forecasting growth will come in at 5 per cent

•             The IMF, which had originally predicted 6.1 per cent growth for India in 2019, has revised that downwards to 4.8 per cent

•             The government’s likely to miss its fiscal deficit target for the current fiscal year of 3.3 per cent and hike its target to as much as 4 per cent for the next financial year

•             India will struggle to achieve 5 per cent GDP growth in 2020 - Economist Steve Hanke, Johns Hopkins University

•             Investment is forecast to grow at less than 1 per cent -- the lowest since 2004-05

•             India's unemployment rate rose to 7.5 per cent during September-December 2019 quarter, according to data released by think-tank Centre for Monitoring Indian Economy