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    Cabinet approves merger of rail budget with general budget; advancement of budget presentation and merger of plan and non-plan classification in budge...
    Minister of Railways launches three more Budget Announcement 2016-17 namely (1) Extension of newly introduced cancellation facility for PRS counter ti...
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    September 21, 2016
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    Merger of Railway Budget with the General Budget enables unified appropriations and removal of historic dividend liability.
    The Cabinet approved three budget reforms from Budget 2017-18: merger of the Railway Budget with the General Budget while preserving Railways as a distinct departmentally run commercial undertaking with existing functional autonomy, elimination of the capital at charge and related dividend liability enabling Gross Budgetary Support and inclusion of Railway appropriations in the main Appropriation Bill; advancement of the date of Budget presentation to enable completion of Budget business before year end and reduce reliance on Vote on Account; and merger of Plan and Non Plan classifications while retaining earmarking for SCSP/TSP and North Eastern allocations to better link outlays to outcomes and focus on revenue and capital expenditure.
    May 25, 2016
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    Cancellation facility for PRS counter tickets enabled via IRCTC/139 with OTP validation and prescribed refund collection rules.
    Extension of a web- and IVR-based cancellation facility permits PRS counter ticket cancellations for confirmed, RAC and waitlisted PNRs via the IRCTC website or 139 subject to PNR/train number entry, OTP authentication to the mobile number recorded at booking, and specified cut off times; refunds must be collected at the journey commencing station or designated satellite PRS locations within prescribed time windows, certain ticket types are excluded, and cancellations are restricted in cases of train running anomalies.
    April 16, 2016
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    Port congestion surcharge withdrawal boosts rail freight competitiveness and aims to reverse traffic diversion to road.
    Withdrawal of the Port Congestion Surcharge is effective immediately, removing the 10% levy on base freight for port originating traffic to reduce logistics costs and attract incremental import and container volumes back to rail; the surcharge was earlier imposed to offset detention of rolling stock at congested ports but is withdrawn following a marked decline in port congestion.
    March 22, 2016
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    Excise duty on jewellery: provisional rules allow first sale valuation and curb enforcement pending Sub Committee recommendations.
    A Sub Committee has been constituted to advise on implementation of excise duty on jewellery, to receive representations and report within sixty days. Until its recommendations are finalised, excise payments must be based on first sale invoice value; invoice valuations will not be challenged if caratage/purity, weight and gemstone carats are stated; central excise enforcement is restrained (no visits, arrests, searches or seizures); exporters may use self declaration with submission of LUT to customs; registration may be taken within the transitional period while liability for duty remains effective from the Budget's effective date.
    March 5, 2016
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    Railway regulatory reform expands governance, transparency and PPP frameworks to modernise services and monetise assets.
    Railway Budget sets a policy framework to modernise operations through governance reforms, creation of planning and investment bodies, a Rail Development Authority bill, and movement to EPC contracting for large projects. It mandates transparency measures including expanded e procurement, internal and security audits, third party audits, CCTV coverage, and performance MoUs with zonal railways. Market reforms and PPPs are prioritised to monetise land and data, liberalise freight and parcel traffic, develop station and cold storage infrastructure, and rationalise tariffs; simultaneous safety, accessibility and environmental initiatives target infrastructure upgrades and passenger amenities.
    March 4, 2016
    Show AI Summary
    Excise duty on jewellery imposed; simplified online compliance and registration with enhanced small scale exemption limiting liability for smaller jewellers.
    A nominal excise duty on articles of jewellery was introduced with input service credit usable for duty payment; targeted exemptions include most silver jewellery and job workers, while enhanced small scale industry thresholds limit liability for many jewellers. Compliance is simplified through optional centralized registration, online filing and payment, acceptance of existing private and VAT records, no routine physical verification, monthly duty payment with a simplified quarterly return, and streamlined export procedures for exempt units; CA certification based on books of account suffices for SSI eligibility determination.
    March 3, 2016
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    Railway reform agenda: restructuring institutions and monetising assets to drive capacity expansion and service modernisation.
    The Railway Budget 2016-17 sets a reform oriented programme to reorganise and modernise railways through institutional restructuring, creation of specialised organisations for planning, R&D and analytics, time bound missions for axle load, speed, safety and procurement reforms, and accelerated capacity augmentation including broad gauge expansion, electrification, dedicated freight and high speed corridors. It pairs these investments with a diversified revenue strategy-station redevelopment, monetisation of land and soft assets, liberalised freight and parcel policies, institutional investment and manufacturing revenues-while advancing passenger amenities, technology integration, cleanliness, environmental measures and staff welfare.
    March 1, 2016
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    Budget measures to stimulate infrastructure and trade policy adjustments aimed at boosting domestic steel demand and industry protection.
    The budget deploys fiscal spending and tariff adjustments to stimulate rural and agricultural development and to shape metal industry demand: higher customs duty on zinc alloy to curb imports, removal of export duty on low-grade iron ore to promote exports, and a customs duty increase on aluminium to protect domestic producers. Public investments and policy changes-expanded LPG connections, village electrification, 100% FDI via FIPB in food products, and large irrigation outlay-are identified as anticipated drivers of steel demand for specific products such as coils, poles, structural steel, containers, silos, pipes and tubes.
    March 1, 2016
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    Provident fund and NPS corpus tax treatment clarified; annuity investment secures tax exemption and employer contribution limits discussed.
    Revised tax treatment requires a portion of provident and NPS corpus withdrawn at retirement to be tax exempt, and stipulates that amounts subsequently invested in an annuity will not be taxable; transfers of the original corpus to heirs after the annuitant's death are also tax free. The Budget leaves EPF coverage within the statutory wage limit unchanged, alters withdrawal tax treatment for voluntary higher paid EPF members to link tax exemption to annuitisation of a portion of corpus, and introduces a monetary ceiling on employer contributions for tax purposes, with representations on these points to be considered by the Finance Minister.
    March 1, 2016
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    Strategic disinvestment procedure centralises NITI Aayog role and establishes supervision, valuation and monitoring safeguards with Independent External Monitor.
    Strategic disinvestment procedure creates an institutional framework where NITI Aayog identifies CPSEs, recommends valuation methods and advises on mode and share percentage; a Core Group of Secretaries headed by the Cabinet Secretary will supervise implementation. The Administrative Ministry must carry out valuation and appoint asset valuers; an inter ministerial Evaluation Committee chaired at FA level will fix the reserve price. An Independent External Monitor will vet the process and address grievances, and the Ministry of Finance may put in place protective mechanisms for the disinvestment process.
    February 29, 2016
    Show AI Summary
    Dividend taxation now taxes shareholder receipts, changing exemption regime and impacting individual and firm taxpayers.
    Budget amendments adjust corporate tax rates and introduce a concessional rate for new domestic manufacturers subject to incentive exclusion; impose dividend taxation in the hands of resident recipients above a threshold; introduce an equalization levy on specified digital service consideration payable to non residents; clarify MAT non applicability for foreign companies without a PE; expand withholding and reporting adjustments; and overhaul compliance by shortening assessment timelines, introducing a dispute resolution scheme, and replacing concealment penalty law with Section 270A providing graded penalties and limited immunity.
    February 29, 2016
    Show AI Summary
    Finance Act reforms set out tax and indirect tax measures with clause-wise changes and administrative notifications.
    The Union Budget materials summarize the operative fiscal framework centred on the Finance Act and the Finance Bill, providing clause-wise highlights and explanatory aids for changes to taxation. They set out revisions to Service Tax, Central Excise, Cess and Customs and include notifications, clarifications, downloadable PDFs and press releases to guide compliance and administration.
    February 29, 2016
    Show AI Summary
    Clean energy cess amendments establish revised infrastructure cess rates and rescind an earlier cess notification.
    Amendments update the Clean Energy Cess notification, specify effective rates for an Infrastructure Cess on designated goods, and rescind a prior Clean Energy Cess notification so the revised notification-based levy framework governs the specified goods.
    February 29, 2016
    Show AI Summary
    Central excise amendments update exemptions, CENVAT refund timelines, interest rate and procedural rules after budgetary revisions.
    Budgetary changes institute central excise amendments to tariff and non tariff notifications, rescind specified prior notifications, adjust area based exemptions, amend commodity classification and tariff values, and exempt media carrying recorded Information Technology software to the extent that value attracts service tax; non tariff changes revise procedural rules including CENVAT Credit Rules, refund time limits for export of services, interest rate prescription for collection purposes, and introduce centralized registration for jewellery manufacturers.
    February 29, 2016
    Show AI Summary
    Customs tariff amendments implement Budget changes and modify exemptions, duties and project import regulations and baggage and interest rules notified.
    Customs tariff amendments implement Budget changes by amending existing notifications to adjust rates, exemptions and applicability, including changes to specified project lists under heading 9801, Project Import Regulations, additional duty rates under the Customs Tariff Act, withdrawal or grant of duty exemptions, and an increased value threshold for bona fide gifts imported by post or air freight. Non-tariff measures and a departmental circular address interest rates under the Customs Act, concessional import rules for manufacture of excisable goods, baggage rules, and related administrative changes.
    February 29, 2016
    Show AI Summary
    Service tax amendments clarify liability, exemptions, point of taxation rules and prescribe interest rates and procedural extensions.
    Service tax notifications amend procedural rules and prior notifications to clarify the extent of tax liability between service providers and other persons, insert explanations into the Point of Taxation Rules, prescribe interest rates under the Finance Act, and adjust taxable portions and conditions for specified exemptions including targeted exemptions for approved bio incubators and certain recorded IT software.
    February 29, 2016
    Show AI Summary
    Small taxpayer relief expands presumptive taxation and deductions to simplify compliance and reduce litigation exposure.
    The Budget widens simplified tax relief for small taxpayers by extending presumptive taxation to more professionals, raising the turnover threshold for presumptive business taxation, increasing rebates and deductions for rent and first time home buyers, while proposing taxation and caps affecting provident fund and employer contributions. It introduces a Dispute Resolution Scheme with reduced penalties and immunity subject to payment and withdrawal of disputes, a graded penalty framework, stay on demand on partial payment, appellate capacity increases, amendments to credit rules, and international measures including a Tax Equalization Levy and Country by Country reporting.
    February 29, 2016
    Show AI Summary
    Government funds employer pension contributions to incentivise formal-sector hiring, alongside expanded national skilling and placement measures.
    The Government will finance employer pension contributions for newly enrolled formal-sector employees for an initial employment period, subject to salary-based eligibility, and the Finance Bill proposes to broaden an existing income-tax-linked employment generation incentive. Budgetary allocations are provided to establish 1,500 Multi Skill Training Institutes, scale up a national skills programme, create a National Board for Skill Development Certification, operationalize 100 Model Career Centres, and inter-link State employment exchanges with the National Career Service platform to enhance training and placement.
    February 29, 2016
    Show AI Summary
    Pension tax exemption introduced for partial corpus withdrawals; employer contribution limit and service tax relief for annuities follow.
    Proposals change tax treatment of retirement benefits: a tax exemption for partial withdrawal of pension corpus at retirement under NPS and a corresponding 40% tax free corpus treatment for superannuation and recognized provident funds (for contributions after 1 April 2016); annuity payments passing to legal heirs will be non taxable; employer contributions to recognized provident and superannuation funds will be subject to a monetary ceiling for tax benefit; and service tax relief is proposed for NPS annuity services, EPFO services and certain single premium annuity policies.
    February 29, 2016
    Show AI Summary
    Start up tax incentives expanded to spur growth while phased limits on selective corporate exemptions accompany rate reductions.
    Tax proposals deploy targeted incentives to boost growth and employment: a start up deduction exempting profits for a limited period under conditions; a preferential patent income regime for domestically developed patents; an optional reduced tax regime for new manufacturers that forgo certain deductions and accelerated allowances; service tax exemptions for specified skill training services; a one year deferral for residency determination by Place of Effective Management; pass through taxation for securitisation trusts to support Asset Reconstruction Companies; and phased limits on accelerated depreciation and research deductions alongside gradual corporate tax rate reduction.

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      Minister of Railways launches three more Budget Announcement 2016-17 namely (1) Extension of newly introduced cancellation facility for PRS counter tickets through 139 or IRCTC website for all confirmed, RAC and waitlisted PRS Counter tickets (2) Release of Handout on ‘Railway initiatives for Ease of Doing Business’ and Nomination of ‘Key Customer Managers’ and (3) Flagging off of Roll-On-Roll-Off(Ro-Ro) train Ex.-Bihta to Turki in Bihar

      May 25, 2016

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      As a part of the Rail Budget Announcements of 2016-17, Minister of Railways Shri Suresh Prabhkar Prabhu in a programme held today i.e. 25.05.2016 at Rail Bhawan inaugurated three important activities which are budget announcements namely (i)   Extension of newly introduced cancellation facility for PRS counter tickets through 139 or IRCTC website for all confirmed, RAC and waitlisted PRS Counter tickets (ii)    Release of Handout on ‘Railway initiatives for Ease of Doing Business’ and Nomination of ‘Key Customer Managers’ (iii) Flagging off of Roll-On-Roll-Off(Ro-Ro) train Ex.-Bihta to Turki in Bihar.  Shri Manoj Sinha, Minister of State for Railway was specially present to grace the occasion.  Member Traffic, Railway Board, Shri Mohd. Jamshed and other Board Members were present on the occasion. 

      Speaking on the occasion about these services, Shri Suresh Prabhakar Prabhu, said that Railways has been working vigorously to implement its budget announcement in order to give best passenger amenities and infrastructural development to the country. He said that whereas the extension of facility of cancellation through 139 or IRCTC website will give a huge relief to the passengers; the other two services will attract the stakeholders and the freight will now get the attention which it deserves. He said that the Ro-Ro train Ex.-Bihta to Turki in Bihar is environment friendly which will reduce carbon emission. Railway Minister said that now the Railways efforts are being appreciated throughout the country and the Railway will bring many more reforms in the near future.

      Speaking on the occasion, Minister of State for Railways Shri Manoj Sinha, said that the new reforms being introduced by Railways has necessarily provided a great relief to the railway passengers. He said that now the Railways, which is backbone of the country, is working extra mile for the upliftment of economic and social development of the country. 

      Salient Features Of the Schemes Launched 

      CANCELLATION OF PRS COUNTER TICKETS (FULLY CONFIRMED/RAC/WAITLISTED) THROUGH IRCTC WEBSITE OR THROUGH 139 

      Purpose:  

      To facilitate passengers with PRS counter tickets to cancel their tickets through within the prescribed time limit as per Refund Rule 2015 facility for cancellation of such tickets through IRCTC website (www.irctc.co.in) / 139 (by IVRS and SMS).

      A pilot project was inaugurated by Hon’ble MR on 29th April,2016,  for cancellation of fully confirmed PRS counter tickets. The pilot was restricted to cancellation of tickets for trains scheduled to depart  within the next 24 hours. Now this facility is being extended to all confirmed tickets without any time limit and also for RAC and Waitlisted tickets with effect from 26th May, 2016.

      Conditions: 

      • Cancellation will be permitted in normal circumstances only and not in case of late running of trains/cancellation of trains etc.,
      • This facility shall be available only in case the mobile number has been given at the time of booking the ticket.
      • Online cancellation or cancellation through 139 shall be permitted only upto 4 hours before the scheduled departure of the train in case of confirmed tickets and upto half an hour before the scheduled departure of the train in case of RAC/Waitlisted tickets.
      • Refund of fare amount shall be collected only at the journey commencing station or nearby satellite PRS locations defined by Zonal Railway as under:-

      (a) During first two hours of the opening of PRS counters on the next day for the tickets for the trains whose scheduled departure time is between 1801 hours and 0600 hours.

      (b) Upto 4 hours after the scheduled departure of the train during the working hours of PRS counters/current  counters/special counters where cancellation is permitted round the clock on the  tickets for the trains whose scheduled departure time is  between 0601 hours and 1800 hours.

      (c) No refund of amount would be given after the above mentioned prescribed time limit.

      A.    Procedure For Cancellation through IRCTC website:  

      • A new page will be given on IRCTC website (www.irctc.co.in) without any login for purpose of cancellation of PRS counter tickets.
      • Passenger will be asked to enter PNR number & Train number on IRCTC website along with captcha.
      • The details entered by passenger shall be validated and an OTP will be sent to the passenger on his mobile no. given at the time of booking the ticket. The OTP received on the mobile will be entered by the passenger in the web page and it will be validated by the system.
      • After receiving the confirmation OTP number from the passenger, full cancellation of PNR will be done and PNR will be marked as Cancelled but not refunded in the system. Seat/berth will be released and would be made available for booking both at PRS & IRCTC Website. Refund amount due will also be displayed to the passenger on the website.
      • An SMS will be sent to the passenger with PNR and fare details. Sample format: ”Your ticket has been cancelled. PNR, xxxxxx, Amt,xxxxx. Refund of fare amount shall be collected only at the journey commencing station or nearby satellite PRS locations as per the notified time”.
      • All the privilege/duty pass/PTOs/complimentary pass tickets shall be allowed to be cancelled through website or through 139.
      • All types of PNRs including i-tickets (after printing) and system tickets booked across counter/post office/YTSK/Go India terminals/Bank terminals etc.’ will be allowed to be  cancelled on website except the following:

      (a). Circular Journey tickets and onwards tickets booked against CJT.

      (b). Foreign tourists PNRs against which berth allotment has been done

      (c). ATAS generated new PNR

      (d). Duplicate ticket.

      (e). Cluster ticket and pre-bought ticket.

      B. Procedure for Cancellation through 139:                             

      Now Rail Ticket booked through Railway Reservation counter can be cancelled through Railway Enquiry 139.  Service is available on:

      (a). 139 IVR with Agent Assistance

      (b). 139 SMS Service

       (a). Procedure to cancel through 139 IVR

      (i). Customer will call on 139 and select 6th Option from IVR main menu.

      (ii). IVR will ask whether it is Counter Ticket or E- Ticket. Press 1 for Counter Ticket or Press 2 for E-Ticket.

      (iii). In case customer selects E-Ticket option, IVR will play a message “Currently ticket booked through Railway Reservation Counter can be cancelled through 139. Press 8 to go back to main menu

      1.  Once customer selects Counter Ticket option, call will be transferred to agent for cancellation.

      2.   `Agent will ask below mentioned information from customer to process the cancellation.

      a.      PNR Number

      b.      Train Number

      3.   Agent will retrieve ticket information from back end and confirm with customer.

      4.   After ticket details confirmation, agent will click on “Generate OTP” button to generate the OTP. System will validate the calling number of customer with the number mentioned in ticket details at the back end.

      5.  If mobile number validation fails, agent will advise the customer to call from same number which are mentioned in ticket details. If number is successfully validated, OTP will be delivered on passenger’s mobile number which he would convey to agent.

      6.   Agent will enter OTP on CRM and will click “Submit” button to process the cancellation. Ticket will be cancelled and refundable amount will be display on agent screen. Agent will communicate the same refundable amount to customer.

      7.  Customer have to collect the permissible refundable amount across the PRS counter within the prescribed time limit.

      (b) Cancellation through SMS sent to 139:

      (i). User has to send PNR Number & Train Number to 139 in below mentioned syntax:

      CANCEL<PNR Number><Train Number> to 139

      Example: CANCEL 2303529769 12420

       (ii). User will get below response from 139 after mobile number verification:

       “Dear User, We have received cancellation request against PNR number 2303529769, OTP against this request is 123456. To confirm the ticket cancellation send SMS OTP 123456 to 139.

      (iii). User has to send given OTP back to 139 for second level of confirmation.

      OTP <OTP received on Passenger Mobile Number> to 139

      Example: OTP 123456

      User will get below response from 139:

      “Dear User, Your ticket with PNR number 2303529769 has been cancelled, refundable amount is Rs. ----.”

      (iv) Passenger has to collect the permissible refundable amount within prescribed time limit across the PRS counter. 

      EASE OF DOING BUSINESS

      Ease of doing business means an environment where customer is not frightened with Government policies, a regime where rules are simplified, predictable and transparent. Policy makers interact with consumer of those policies to take their feed back and try to simplify, improved policies.  Based on these principles, Ministry of Railways went through the suggestions given by stakeholders, held brain storming sessions of senior executives and then incorporated that suggestions while taking initiatives as announced under Railway Budget. Minister of Railways emphasized on ease of doing business during his Budget Speech 2016-17.

      Accordingly, Ministry of Railways has taken initiatives inter-alia withdrawal of dual freight policy of Iron Ore; withdrawal of port congestion charge; withdrawal of busy season charge; Merry-go-round system; two/multi point and mini rake in all kinds of covered wagons; mini rakes allowed up to 600 kms (from earlier 400 kms.); automatic freight rebate scheme in traditional empty flow direction; Roll-on-Roll-off service etc.

      These initiatives are going to help industries, in lowering input cost on account of transportation.  Some more initiatives are in pipeline which will further benefit our customers. Ministry of Railways is going to nominate Key Customer Managers who will take care of specific industry.

      A process of structured dialogue called “SAMVAD” between customers and top Railway authorities has been initiated under which Railways will take continuous feedback from customers. The “SAMVAD’ at All India level will be quarterly. At Zonal level, it will be bi-monthly. This is a big step in the direction of “Ease of doing Business”.

      NOMINATION OF KEY CUSTOMER MANAGERS

      While presenting Railway Budget for the year 2016-17, Minister of Railways in his Budget Speech has announced that ‘Key Customer Managers’ will be nominated to liaison with our major freight stakeholders. They would serve as a single point of contact for all communication and redressal with these key customers.’

      ‘Nurturing Customers’ through key customer managers have been envisaged for effective communication and redressal of issues pertaining to our invaluable freight customers. The purpose of ‘Key Customer Manager’ is to provide an appropriate mechanism to the major freight customers/ stakeholders to redress their day-to-day problems/ grievance.  There exist 10 major group of commodities in the freight basket of Indian Railway viz.- Coal, Iron Ore, Raw Material for Steel Plants (RMSP), Steel, Foodgrain, Fertiliser, Cement, POL, Container and Other Commodities. For each commodity, ‘Key Customer Managers’ is being for nominated. 

      ROLL-ON ROLL-OFF SERVICE

      While presenting Railway Budget for the year 2016-17, Minister of Railways has announced that a new delivery models e.g., Roll-on Roll-off will be launched. Infrastructure requirements have been assessed to re-capture that traffic through either containerization or new delivery models e.g., Roll-on Roll-off.

      Recently, Rail bridge over River Ganges near Patna i.e. Digha Rail Bridge has been commissioned. After consultation with the truck operators, who are transporting sand in truck from North Bihar to South Bihar through road bridges like Mahatma Gandhi Setu, Vikramshila Setu etc., it has been decided to operate RO-RO service across Digha Bridge.  Under this scheme, loaded trucks would be moved on the flat rakes (modified BOXN and BRN rakes) to avoid congestion on roads across Ganges. To start with, this service is being introduced from Bihta (Private Freight Terminal) to Turki station, Muzaffarpur district covering a distance of 88 kms.  In a rake, approximately 44 loaded/ empty trucks will be moved.  A rake will perform 3 trips per day.

      It has been decided to inaugurate 1st train of Roll-on Roll-off service on Bihta to Turki station.

      The service will be extended to cover more commodities and destinations in future. In the long run, this initiative would save a lot of Forex spent on fuel and would indirectly reduce pollution.

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