Black day vs anti-black money day: BJP, Opposition face off over note ban

Manmohan Singh said if anyone benefited demonetisation, GST, it was China whose imports to India grew by 23% in just 1 year

A year into demonetisation – Anti-Black Money Day, the opposition and the government on Tuesday exchanged verbal blows over the action with former Prime Minister Manmohan Singh calling it disastrous while Finance Minister Arun Jaitley rejected the charge saying there was an ethical and moral rationale behind the decision which had given a “new direction” to the economy.

Jaitley, however, acknowledged that the “benefits may not be immediately visible” but would make future generations proud.

Fielded by the party in poll-bound Gujarat, Manmohan Singh said the measure had failed its ostensible purpose of curbing wealth accumulated through tax evasion as it was known by now that none of the stated objectives of eliminating black money, terror financing and counterfeit currency have been met.

ALSO READ: War of words: It’s govt’s ‘anti-black money day’ vs Oppn’s ‘black day’

“The fact that more more than 99 per cent of the (spiked) currency came back into the banking system has punctured the government’s claim. There are also widespread reports of the rich converting their black money into white while the poor have undergone immense suffering,” he said, “invoking the memory of more than a hundred people who lost their lives last year in the wake of the demonetisation”.

Calling the withdrawing of 86 per cent of legal tender in one single stroke as undemocratic and a coercive move, the former Prime Minister said “the demonetisation was clearly not the solution” to end the menace of black money and tax evasion in India.

“Demonetisation has proved to be a mere bluster to reap political dividends while the real offenders have escaped,” he said, again calling it “an organised loot and legalised plunder”. | READ MORE

Himachal polls: BJP manifesto is about 'mafia raj', jobs, free pilgrimage

The strong focus on measures to better the law and order situation comes in the backdrop of widespread protests over the Kotkhai rape and murder case and other incidents

Dismantling “mafia raj”, women’s safety, free ‘chardham’ pilgrimage for the elderly and jobs for youth are among the key focus areas in the Bharatiya Janata Party’s (BJP’s) “Vision Document” for the Himachal Pradesh polls which was released by Union Finance Minister Arun Jaitley here on Sunday.

The document promised a 24-hour helpline in the chief minister’s office for reporting all types of crimes, setting up of Somnath Vahini, a task force of ex-servicemen to take on drug mafia and crime.

The strong focus on measures to better the law and order situation comes in the backdrop of widespread protests over the Kotkhai rape and murder case and other incidents.

“The BJP government would have to do ten years’ work in five years as the present Congress government did not take up any developmental work while re-establishing the credibility of the government would be challenge,” Jaitley said while releasing the manifesto.

ALSO READ : HP polls: Palampur set for interesting contest

He was flanked by Union ministers J P Nadda and Thawar Chand Gehlot, former chief ministers Shanta Kumar and Prem Kumar Dhumal, state BJP chief Satpal Singh Satti and other senior leaders.

 

The vision document stressed on eradication of corruption while also claiming that the activities of land, forest, drug, mining, and building mafia would be curbed while transparency would be ushered in public life.

To ensure transparency, BJP MLAs would publicly declare all their assets, it said.

Safe drinking water to every house, road connectivity to all villages, emergency medical services in rural and remote areas, doubling the income of farmers by 2022, raising of compensation for land acquired by the government for developmental projects, social security pension and free “Chardham Yatra” for senior citizens are other salient features of the document…..Read More 

UP Inc welcomes Union Budget 2017

Industrialists laud focus on agriculture, MSME sectors and its objective to maintain fiscal prudence

Uttar Pradesh Inc has welcomed the Union Budget Of India for its purported focus on the agricultural and Micro, Small and Medium (MSME) sectors and its objective to maintain fiscal prudence.

The general opinion among the industrialists and industry chambers was the Budget had primarily focused on the farm sector, rural population, youth, poor and underprivileged health care, infrastructure, financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and tax administration.

Confederation of Indian Industry (CII) UP State Council chairman and Tasty Dairy Specialties Limited managing director Atul Mehra said the Budget had accorded highest priority to rural and agricultural sectors due to its large employment potential.

"The Budget would certainly boost the Indian economy as all the key sectors have been considered and provided for therein," he said.

"Reduction of corporate tax for MSMEs with turnover of less than Rs 50 crore is a major relief for more than 96 per cent of the assesses," senior CII office bearer and CP Milk & Food Product Ltd director Jai Agarwal underlined.

Meanwhile, MSME chamber Indian Industries Association (IIA) national president Manish Goel welcomes Income Tax (IT) reduction for companies with annual turnover of Rs 50 crore to 25 per cent. Read More...

LIVE BLOG : BUDGET LIVE: Budget on schedule, Arun Jaitley leaves for Rashtrapati Bhawan

09:12 AM

FM Arun Jaitley and ministry officials with #Budget2017

09:13 AM

Final decision on budget to be taken by speaker, decision expected by 10 a.m.

09:28 AM

BUDGET EXPECTATION: Post demonetisation, expectations of measures to boost demand are high – in the form of personal income tax cuts and higher social spending especially targeted at lower income population, says Gautam Chhaochharia, ED & Head of India Research, UBS Securities

09:29 AM

Sensex opens marginally higher, Nifty still below 8,600 ahead of the Union Budget.

Also read: Markets open in green as investors await Budget 2017

09:32 AM

SECTORS TO WATCH: Agri-related spending increase would be positive for Fertilisers, Consumer Staples, Tractors and 2Ws. 4) A reduction in personal tax rates could benefit Consumer Discretionary and Autos. 5) Higher infra spending would be positive for Cement, Roads, Railways, Logistics and CVs.

09:34 AM

Budget 2017 will be presented, obituary may happen before or after it, government has spoken to all parties and arrived at consensus: Government sources

09:39 AM

Market Watch: Information technology stocks remain under pressure. Nifty IT index top sectoral loser, sheds over 1.5% in morning trade. Infosys, TCS, Tech Mahindra, HCL Technology among top losers CLICK HERE TO TRACK IT STOCKS

09:41 AM

BUDGET EXPECTATIONS: The government could announce measures to support growth in the budget either in terms of increased spending, or some tax relief, or both. We think the key spending themes in the budget are likely to be “rural spending” and “greater capital spending” -- GOLDMAN SACHS

09:42 AM

BUDGET EXPECTATION: Given constraints on the private sector’s balance sheet, we think the government’s push on infrastructure, especially on railways, roads and defence, could continue in FY18. We expect the government capital spending to increase by 26%. However, the government’s spending priorities are likely to remain directed towards creating assets rather than giving subsidies -- GOLDMAN SACHS

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KYC threshold expected to be cut for jewellery buying in Budget

Jewellers, however, say no black money in system post demonetisation; move will only dampen demand

In a major blow to the already struggling jewellery sector in India, the government might cut the threshold limit for the requirement of the permanent account number (PAN) or Unique Identity Code (Adhaar Number) in urban, and Kisan Credit Card number in rural areas for jewellery or bullion purchases between Rs 50,000-100,000, post Union Budget 2017 Date . The Budget, which will be announced on Wednesday, is likely to further tighten the noose around black money after the demonetisation of Rs 500 and Rs 1000 notes, announced on November 8, 2016.

"The government has already proved that it would go all out against black money. Since jewellery trade has been on the government's watch list, we may see a cut in the minimum threshold in know your customer (KYC) requirement to Rs 50,000-100,000," said an industry veteran on condition of anonymity.

Rajesh Khosla, Managing Director, MMTC Pamp, the only LBMA (London Bullion Markets Association)-accredited bullion refinery in India, said in an interview on Tuesday that the government might come down hard on black money and the KYC threshold might be reduced to Rs 100,000 or even Rs 50,000 in Union Budget 2017.

Till three years ago, the minimum threshold on KYCrequirement in jewellery trade stood at Rs 500,000 which was brought down to Rs 200,000 by the Bharatiya Janata Party (BJP)-led National Democratic Government (NDA) government in an attempt to curb black money from the system.

Further reduction, however, would hit the trade badly, said Kumar Jain, Director, Umedmal Tilokchand Zaveri, a bullion dealer and jewellery retailer in Zaveri Bazaar.

Post excise duty in the last year's budget, jewellery trade was hampered badly with gold import in India slumping to 580 tonnes (an estimate by GFMS), the lowest in 13 years, from around 850 tonnes in 2015.

Many jewellers, however, do not anticipate such move by the government. They feel government's demonetisation of high value bills in November is enough to act on black money. "Now, time has come to incentivise the trade," said a senior industry official.

Read Full Story >>>

Six expectations of banking sector from Budget 2017

Since the low 2,0148 hit on December 26, the Bankex has risen 12% to settle at 22,566 last week

With the Union Budget 2017 just a sniffing distance away, banking stocks are on a roll.

The BSE Bankex, the barometer of banking stocks, has shot up 12% since its December lows in the anticipation of budgetary stimulus to keep demons of demonetisation at bay.

Since the low 2,0148 hit on December 26, the Bankex has risen 12% to settle at 22,566 last week. This is against an 8% rise in Sensex during the same period.

Bank stocks such as YES Bank (up 27%), Federal Bank (up 26%), Punjab National Bank (up 20%), IndusInd Bank (up 18%) and Bank of Baroda (up 14%) have seen a phenomenal rally in the period mentioned. Others such as Kotak Mahindra Bank, HDFC Bank, ICICI Bank, AXIS Bank and SBI too gained anywhere between 9% and 11%.

Below are six concerns that market participants hope FM Arun Jaitley will address in Budget 2017: Click Here

Tax breaks, infra push top markets' Budget 2017 expectations

Besides Budget, markets will be driven by global events and the outcome of Assembly elections

As the Narendra Modi-led government prepares to present the Budget 2017 on February 01 after the big bang demonetisation move in November, the markets have clawed back from their recent December lows with the S&P BSE Sensex rallying nearly six per cent to over 27,200 levels.

The rally in the mid-and small-cap indices has been sharper with the S&P BSE Mid-cap and the S&P BSE Small-cap indices surging around 11 per cent each during this period.

Also Read: Arun Jaitley likely to take the stimulus route to economic growth

So what does this Budget hold in store, and what are the markets expecting from the Finance Minister this time around?

The markets, analysts say, are primed with the expectation that the Budget will be focussed primarily on reinforcing the 'black money crackdown' theme with a secondary focus on delivering token payments to the poor as well as income tax cuts. The government now will have the opportunity to signal its unbridled economic priorities within the broader ambit of prudent fiscal consolidation.

Read Article Source >>>

Budget 2017: IBF seeks 'Infrastructure Status' for brodcasting industry

Ahead of the Union Budget 2017, a top body of broadcasters has written to the government seeking "Infrastructure Status" for the broadcasting industry.

According to sources, the Indian Broadcasting Foundation(IBF), a body which has leading broadcasters as its members, has in a representation to the Finance Ministry said the Indian broadcasting industry is a mass employment creator which as of date has employed nearly 10 million people across the value chain.

Given its large size and revenue projections, the sector is expected to contribute Rs 30,000 crore to Rs 35,000 crore in the form of direct and indirect taxes by 2020.

The broadcasters have argued that in the present era of convergence of telecommunication, information technology (IT) and broadcasting technology, the distinction between telecom services and broadcasting services has got blurred.

They have also mentioned that by way of a notification January 9, 2004 issued by the Ministry of Communication and Information Technology (Department of Telecommunications), the Centre has notified broadcasting services and cable services to be Telecommunication Service under TRAI Act 1997. Read Full Article

Tax kitty to exceed Budget estimate in 2016-17, says Arun Jaitley

Stands by decision to advance Budget date; many states seek loosening of fiscal deficit rule

While some states have complained of declining tax revenues due to demonetisation, the Centre is hopeful of exceeding its Budget 2017 Estimates (BE) for 2016-17 in both direct and indirect tax collections.

It has reiterated the decision to advance the Budget presentation date to February 1, despite objections.

“We will end this year with higher revenues for both direct and indirect taxes compared to the estimates,” said Finance Minister Arun Jaitley after the Goods and Services Tax Council meeting and pre-Budget consultation with state counterparts.

The states raised concern over declining revenues and sought relaxation in the Fiscal Responsibility and Budget Management (FRBM) limit, beside central support to revive labour-intensive industries.

To a query, Jaitley said the Reserve Bank (RBI) would remove the current restrictions on cash withdrawal after assessing the situation. He ruled out a change in the conditions barring anyone other than non-resident Indians (NRIs) and those returning from abroad from depositing the junked notes in select central bank branches.

“Actions are taken in phases and so are relaxations,” he said on when the cash withdrawal restrictions could be ended. Read Full Story >>>

Be Updated on Stock Market News & LATEST NEWS | BUSINESS STANDARD

7th Pay Commission: Cabinet approves big pay hike for government employees

7th Pay Commission: Cabinet approves big pay hike for government employees

The union cabinet, led by Prime Minister Narendra Modi, on Wednesday approved the recommendations of the Seventh Pay Commission, a move which will boost consumption by putting extra disposable income in the hands of the central government’s 4.7 million employees.

The Seventh Pay Commission (7th CPC) had recommended a 23.5 per cent increase in pay, pension and allowances under a ‘business as usual’ scenario. It had envisaged an increase in pay of Rs 39,100 crore, increase in allowances of Rs 29,300 crore and increase in pension of Rs 33,700 crore, taking the total financial impact for 2016-17 to Rs 1.02 lakh crore.

The pay panel revisions are in force retrospectively from January 1, 2016.

Finance Minister Arun Jaitley had said before the budget that he would provide Rs 1.1 lakh crore and the budget documents showed that Rs 1.06 lakh crore has been provided for.

The centre is likely to provide additional details later in the day at a post-cabinet media briefing. It is not yet known if the Government Employees has cleared 7th CPC recommendations in-toto or if there are some changes.

As per the initial reports, the minimum pay has been set at Rs 18,000 per month while the maximum pay has been capped at Rs 2.5 lakh per month.

Jaitley is facing massive spending commitments this year not only due to the 7th CPC payout but also in infrastructure and agricultural sectors.

Read More Topics:

How the 7th Pay Commission will benefit govt employees

Military seethes at Pay Commission suggestions

Before roll out of Seventh Central Pay Commission, 20 civil services seek fair representation

People not satisfied with mere slogans, PM tells party

People not satisfied with mere slogans, PM tells party

The Bharatiya Janata Party (BJP) is yet to resolve its confusion on who would be its chief ministerial candidate for the Uttar Pradesh Assembly polls and whether at all it should announce one. But the aggression in Prime Minister Narendra Modi and party chief Amit Shah's speeches at a public rally here underscored the importance of a good performance by the BJP in the UP elections, slated for early 2017, if Modi is to return as prime minister in 2019.

Both Modi and Shah appealed to the people of UP to reject the nepotism, casteism and lawlessness wrought by Samajwadi Party and Bahujan Samaj Party, who were hand-in-glove in corruption. Modi credited the people of UP for enabling BJP to win a majority of seats in the Lok Sabha elections and that the state has given India several of its prime ministers. BJP, along with its ally Apna Dal, won 73 of UP’s 80 seats in 2014. Shah was more direct. “The road to Delhi goes via Lucknow. BJP forming a government in the state in 2017 will pave Modi's way to Delhi in 2019,” he said.

While Modi stayed away from the more contentious issues and promised development to the youth of the state and to its farmers, Shah raked up alleged exodus of Hindus from Kairana in western UP. Read more

Budget 2016: A mere Rs 25,000 cr for bank recapitalisation not enough

Considering the mess that PSU banks are in, it’s surprising that the Finance Minister has allocated a mere Rs 25,000 crore for recapitalising them. This amount may not even be enough to compensate for the quarterly losses of state-owned banks.

Read Full Article Over Here: Budget 2016

An early Budget for Elections 2019

Prime Minister Narendra Modi, given his penchant for abbreviations, might have liked to put it as the new ‘GPS’ or guiding principle of his government in preparation for the 2019 Lok Sabha elections.

It looks as if the Modi government has initiated its re-election strategy a couple of years early with Finance Minister Arun Jaitley’s budget 2016 speech promising Gas (LPG cylinders to below poverty line families), Power (to all un-electrified villages) and Sadak (road connectivity to all villages) by 2018-19.

Exclusive Photos on Economic Survey 2016

Click here - Photo Gallery - Business Standard.com 

This week promises to be an exciting one, with the Railway Budget to come out on Thursday, followed by the Economic Survey on Friday. Finance MinisterArun Jaitley will announce the general Budget on February 29, Monday.

Read Full Article Over Here : Business Standard News 

Economic Survey 2016: To Make Week Exciting

This week promises to be an exciting one, with the Railway Budget to come out on Thursday, followed by the Economic Survey on Friday. Finance Minister Arun Jaitley will announce the general Budget on February 29, Monday.

The Survey will be read eagerly for not only what it tells about the state of the economy in the year gone by but also as a piece of literature. These are traditionally lead-written by the government's chief economic advisor and under Kaushik Basu, were a delight to read.

Former railway minister Lalu Prasad has already let out his views on what he Economic Survey 2016 expects from the rail Budget. However, minister Suresh Prabhu is unlikely to pay much attention to this.

5 tax reforms India Inc wants from Budget 2016

With Finance Minister Arun Jaitley all set to present the Budget 2016 next week, all eyes are now on the tax reforms promised by Prime Minister Narendra Modi and Jaitley during their interaction with India Inc leaders at the Make-In-India week. Here are some of the top tax reforms Jaitley can look at

Read Full Article Over Here: Business Standard

Retro tax ghost returns to haunt Vodafone

Just days after Prime Minister Narendra Modi said retrospective taxation was a closed chapter and promised a “transparent, stable and predictable” tax regime, the income tax department has done just the opposite.

In a notice to Vodafone, the tax department said it might seize the British firm’s assets in the country if it failed to pay Rs 14,200 crore in disputed tax.

Read Full Article Over Here: Business Standard

Complete disconnect between Modi government and tax department: Vodafone

The income-tax department has said it may seize the Vodafone Group’s assets in the country if the company doesn’t pay a disputed Rs 14,200-crore ($2.1-billion) tax bill that’s still undergoing international arbitration proceedings, according to a copy of the notice that was sent to the company this month, Bloomberg reported. Click Here

Inflation target at 5% a challenge; macro stability key: Moody's

RBI's target to bring down retail inflation at 5% by March 2017 will face some risks from monsoon uncertainty and execution of 7th Pay Panel recommendations, while macro-economic factors will be critical for sustaining growth, Moody's Investors Service said today.

It also said that a growth-oriented forthcoming Budget, while controlling inflation at the same time, will help support India's sovereign credit rating.

Read our full coverage on Union Budget 2016

The Reserve Bank expects retail inflation to be around 6% in January 2016 and lower further to 5% by March 2017.

"The budget announcement at the end of February should offer some insight into the Pay Commission implementation, other fiscal measures and their likely impact on growth and inflation.

Union Budget: Govt calls all party meeting to seek views on rescheduling budget session

The government has called an all-party meeting on Thursday to seek views about a possible rescheduling of the Union Budget session in view of the coming Assembly polls.

Elections to Tamil Nadu, Kerala, West Bengal, Assam, and Puducherry, are due by April. Several members of Parliament (MPs) have conveyed to the government that their attendance might be intermittent in Parliament as the session would coincide with campaigning and voting in these states. The five states send as many as 115 MPs to the Lok Sabha.

The cabinet committee on political affairs, headed by Union home minister Rajnath Singh, would also meet on Thursday to decide on the Budget session. The all-party meeting is scheduled before the cabinet committee’s meeting.