Changes in H1B visas to affect Indian IT firms

April 17, 2013

Washington, Apr 17: The proposed changes in the issuing of H-1B visas, the highly sought after US work permits, will badly affect the Indian IT firms which depend heavily on these work visas.

The changes under the Comprehensive Immigration Reform (CIR) put a curb on use of H-1B visa for those companies which have a higher ratio of work force under this category.

Most of the Indian companies will fall under this classification.

visa The companies will also have to shell out more fee to get a H-1B visa, if the draft legislation is cleared by the Congress and is signed into law by the US President.

The US, according to the 17-page outline of the 'Border Security, Economic Opportunity and Immigration Modernisation Act of 2013', will crack down on abusers of the H-1B system by requiring the dependent employers to pay significantly higher wages and fees than normal users of the programme.

If the employer has 50 or more employees, and more than 30 per cent but less than 50 per cent are H-1B or L-1 employees (who do not have a green card petition pending), the employer will need to pay a USD 5,000 fee per additional worker in either of these two statuses, the outline of the bill said.

In case the employer has 50 or more employees and more than 50 per cent of these workers are H-1B or L-1 employees who do not have a green card petition pending, then the companies will have to pay a USD 10,000 fee per additional worker in either of these two statuses.

As such, large Indian IT companies like TCS, Wipro and Infosys will have to pay USD 10,000 for each additional H-1B employee they would be hiring.

Such a thing will not be for companies like IBM, Intel or Microsoft who are based in the US and majority of their employee are American nationals.

In case of companies like TCS, Wipro and Infosys, which are headquartered in India having large off-site offices back home and depend on a small strength in the US, will be affected by such a provision. The bill proposes that in the fiscal year 2014, companies will be banned from bringing in any additional workers if more than 75 per cent of their workers are H-1B or L-1 employees.

This provision is in accordance with the US plan to crack down on use of H-1B and L visas to outsource American jobs by prohibiting companies, whose US workforce largely consists of foreign guest workers, from obtaining additional H-1B and L visas.

Under the bill, the Secretary of Labour must establish a searchable website for posting H1B positions. The site must be operational and online within 90 days of the passage of the new law.

It requires employers to post a detailed job opening on the Department of Labour's website for at least 30 calendar days before hiring an H1B applicant to fill that position.

The bill also restrains employers from recruiting or giving preference to H-1B or OPT workers over American workers.

It also proposes to establish significant new authorities and penalties to prevent, detect, and deter fraud and abuse of the H-1B and L-1 visa systems by fraudulent employers.

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Union Budget 2020: Highlights

News Network

February 1,2020

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

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Over 50% of covid deaths in India in patients aged 60 and above

Agencies

August 4,2020

New Delhi, Aug 4: Over 50 per cent of COVID-19 deaths in India have taken place among people aged 60 years and above and 37 per cent deaths have been reported among patients in the age group of 45 to 60 years, Health Ministry said on Tuesday.

Addressing a press conference, Rajesh Bhushan, Secretary, Health Ministry said that 11 per cent COVID-19 deaths took place in the age group of 26 to 44.

The 18 to 25 age group and those below 18 years reported one per cent deaths each.
"Currently, 5,86,298 active COVID-19 cases are in India and over 12 lakh people have recovered.

50 per cent deaths due to COVID19 have taken place among the age group of 60 years or above and 37 per cent deaths took place in the age group between 45 to 60 years," Bhushan said.

"A total of 11 per cent COVID-19 deaths took place in the age group of 26 to 44. Only 1 per cent in 18 to 25 age group and 1 per cent in below the age of 18 years," he added.

Bhushan said that 68 per cent of COVID-19 deaths have been reported among male patients and 32 per cent among female patients which is broadly in line with the global scenario.

The number of recovered COVID-19 patients in India is increasing daily and is now over double the number of active cases.

Bhushan said that the case fatality rate (CFR) is lowest since the first lockdown.

"More than 2 crore COVID-19 tests have been conducted, including more than 6.6 lakh tests in the last 24 hours. Recovered cases are now double of the active cases.

The case fatality rate (CFR) is lowest since the first lockdown," he said
"This is the first time after the first lockdown that the fatality rate is at the lowest, at 2.10 per cent. The fatality rate has seen a progressive decline and it is continuing, which is a good sign," he added.

According to the World Health Organisation, CFR is a measure of the severity of a disease and is defined as the proportion of reported cases of a specified disease or condition which are fatal within a specified time.

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Finance Minister announces Rs 3 lakh crore collateral free automatic loan for businesses

Agencies

May 13,2020

New Delhi, May 13: Finance Minister Nirmala Sitharaman on Wednesday announced Rs 3 lakh crore collateral-free automatic loan for businesses, including MSMEs.

This will benefit 45 lakh small businesses, she said detailing parts of the Rs 20 lakh crore economic stimulus package.

The loan will have 4-year tenure and will have a 12-month moratorium, she said.

Also, Rs 20,000 crore subordinated debt will be provided for stressed MSMEs, she said adding this would benefit 2 lakh such businesses.

The Finance Minister said a fund of funds for MSME is being created, which will infuse Rs 50,000 crore equity in MSMEs with growth potentials.

Also, MSME definition has been changed to allow units with investment up to Rs 1 crore to be called micro-units in place of Rs 25 lakh now.

Also units with turnover up to Rs 5 crore to be called micro-units, she said, adding a turnover based criteria is being introduced to define small businesses.

The investment and turnover limits for small and medium businesses have likewise been raised to allow them to retain fiscal and other benefits, she said.

Global tenders will be banned for government procurement up to Rs 200 crore, she said, adding this would help MSMEs to compete and supply in government tenders.

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Fully automatic loan..... not reachable to poor needy......