Tag: Taxes

Union Finance Minister Nirmala Sitharaman  provisions introduced in the Budget would bring Indian workers’ income in zero tax jurisdictions, like the UAE, into the Indian tax net. The Finance Bill has proposed three major changes to prevent tax abuse by citizens that don’t pay taxes anywhere in the world reducing the number of days that an Indian citizen can be granted non-resident status for tax purposes from 182 to 120; citizens who don’t pay taxes anywhere will be deemed to be a resident; and the definition of ‘not ordinarily resident’ has been tightened. “The new provision is being interpreted to create an impression that those Indians who are bonafide workers in other countries, including in Middle East, and who are not liable to tax in these countries, will be taxed in India on the income that they have earned there.

A Kashmiri verse, quotes from Tamil poets and references to Saraswati-Sindhu civilisation dotted Finance Minister Nirmala Sitharaman's 160-minutelong marathon Budget speech. The longest Union Budget speech ever, some of her remarks, includingregarding ‘BetiBachao, BetiPadao’programme, were met with protestsfrom the Opposition benches. Her first Budget speech, in July 2019, went on for around 137 minutes.Agriculture Highlights:  Kisan Rail and Krishi Udan:The initiatives have been launched to facilitate smooth and fast transport of perishable goods to assist the farmers. Solar Pumps: The Government will also help 20 lakh farmers to set up standalone solar pumps.   Education Highlights:  Funds: The Government has announced allocationof 99,000croresfor the education sector. New Universities:The government will be setting up National Police University and National Forensic University. IND-SAT test:The government has also proposed to set up IND-SATtest for foreign students wishing to pursue higher education in India.   Tourism Highlights: Five archaeological siteswill be developed as iconic sites with on-sitemuseums in 5 different states. The sites include – Rakhigarhiin Haryana, Hastinapur in Up, Shivsagar in Assam, Dholavira in Gujarat and Adichanallur in Tamil Nadu.   MSME & Corporate Sector The budget proposes a new scheme for MSMEs in the context of subordinate debt. The debt recast window of MSME is extended by one year to March 31,2021. Certain categories of government securities will now be opened for Non-Resident Investors. The FPI Limit in Corporate bond has increased to 15%.     Indian Railways Electrification of around 27000 km of railway lines achieved within 100 days of Modi Government formation in 2019. A large solar power capacity proposed for the Indian Railways. It will be built along the rail track on the Railways owned lands. Bengaluru Suburban Rail Project proposed; budget allocates Rs 18,600 crore for this project. By 2024, the Government would monetize 12 lots of national highways. With the help of UDAN scheme, 100 airports will be…

The Fifteenth Finance Commission, in its interim report tabled in Parliament has recommended maintaining States’ share in the divisible pool of tax collections at virtually the same level of 42% set by its predecessor, for 2020-21. To factor in the changed status of the erstwhile State of Jammu and Kashmir, the rate at which funds may be shared with the States has been reset to 41%.

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharamanhas chaired the 38th Goods and Services Tax (GST) Council Meeting in New Delhi. Highlights of 38th GST Council Meet: The GST council has decided to levy uniform tax on lotterywill be effective from March 01,2020 at 28%. The council was also decided to give exemption from upfront amount payable by entities in which the central / state government holds 20 % stake on long-term lease of industrial or financial infrastructure plots. Background When GST was implemented on 1 July 2017, the states were promised that the revenue loss would be repaid by the Center. The compensation amount was fixed at 14 per cent of the total revenue received in the base year 2016-17. On 20 September 2019, the GST Council met last time at its 37th About GST It is an indirect tax (or consumption tax) imposed in India on the supply of goods and services. Goods & services tax separated into 5 different tax slabs for collection of tax. It includes,0%, 5%, 12%, 18% and 28%.