50 Paise Coins to be Minimum Denomination Coin Acceptable for Transaction from June 30, 2011 - Government Calls in from Circulation Coins of Denominat...
Provision of Budget for balance funds under Scheme of Rupees Export Credit Subvention to Scheduled Commercial Banks – Impact of Global Meltdown on E...
The Ministry of Micro, Small and Medium Enterprises (MSME) is implementing the promotional schemes for the development of micro, small and medium ent...
Modification of Central Capital Investment Subsidy Schemes for Micro, Small and Medium Enterprises (MSMEs) of Jammu & Kashmir and the North Eastern Re...
Inauguration of Income Tax Office at Chinsurah, Dist-Hooghly, West Bengal by Hon'ble Union Finance Minister Shri Pranab Mukherjee on 04.12.2010 - Publ...
Anti Dumping Duty on parts/components of Compact Fluorescent Lamps (CFL) from China and Hong Kong as per Customs Notification No.138/2002-Customs date...
External debt rise highlights greater short-term liabilities and reduced reserve coverage for short-term obligations. India's external debt stock increased by end-September 2010 with faster growth in short-term debt relative to long-term debt; a valuation effect from currency movements accounted for part of the increase. Commercial borrowings, non-resident deposits and multilateral liabilities were the principal components, sovereign external debt remained significant, and US dollar denominated instruments formed the largest currency share. The ratio of short-term external debt to foreign exchange reserves rose. Quarterly external debt statistics are compiled and published by the Department of Economic Affairs.
Change to legal tender: lower denomination coins will be withdrawn and transactions must use the new minimum coin, with rounding. Coins of smaller lower denominations shall be called in and will cease to be legal tender from June 30, 2011; the call-in procedure will be notified separately by the monetary authority. From that date the minimum denomination coin acceptable in transactions will be the 50-paise unit and accounting, pricing and tax entries must be rounded to that denomination or to whole rupees, under powers of the Coinage Act, 1906.
Interest subvention for rupee export credit reimburses banks to sustain exporters' competitiveness amid global downturn. Government approved additional budgetary allocations to meet pending claims under the Interest Subvention scheme for rupee export credit administered by the central bank, which reimburses scheduled commercial banks for a two percentage point concession on pre and post shipment export credit to eligible, employment oriented exporter sectors. The scheme's sectoral scope and successive temporal extensions are noted, and recent supplementary funds were provided to cover outstanding liabilities and to include further export sub sectors within the scheme.
Income tax audit directive orders Mahindra Satyam to obtain audits of company accounts for specified assessment years. The office of the Additional Commissioner of Income Tax directed Mahindra Satyam to obtain audited accounts for two specified assessment years under the Income Tax Act, and the company disclosed receipt of that communication in a filing to the stock exchange, creating an obligation to procure the required audits.
Companies law reform modernises incorporation, governance and accountability while expanding electronic compliance and investor protections. The Ministry advances a regulatory programme centred on a new Companies Bill to modernise company law-clarifying incorporation, expanding electronic processes, strengthening disclosure and accountability, protecting minority shareholders, formalising Key Managerial Persons and independent directors, increasing auditor accountability, enabling extended IEPF claims and class actions-while implementing compliance schemes, an MCA21-based Early Warning System, IFRS convergence, enhanced e-governance including XBRL and public company master data, and capacity building through the Indian Institute of Corporate Affairs.
Credit guarantee enhancements expand unsecured lending access and reduce fees to strengthen support for micro and small enterprises. Enhanced credit facilitation for MSEs is effected through targeted modifications to guarantee, subsidy and lending-support mechanisms: the Credit Guarantee Fund Scheme raises loan limits and guarantee cover, reduces guarantee fees and service charges, and provides preferential cover for women owned/operated MSEs and NER borrowers; the Credit Linked Capital Subsidy Scheme grants capital subsidy for approved technology upgradation via nominated nodal agencies; and ISO/quality certification is incentivised by one time reimbursement.
Tax scrutiny of mergers and acquisitions is limited and risk-based; M&A alone does not trigger assessment. The CBDT states that tax scrutiny of takeovers, mergers and acquisitions is limited and driven by a risk-based selection process; the Income Tax Department typically scrutinizes about one percent of taxpayers, has kept overall scrutiny below one and a half percent, maintains trust in taxpayers and uses non-intrusive measures, while intensive investigation tools such as surveys, searches and seizures may lead to detailed scrutiny. Mere occurrence of an M&A does not by itself trigger tax scrutiny.
Results Framework Document strengthens departmental performance measurement and audit-led corrective oversight to improve public expenditure outcomes. Results Framework Document and related reforms are framed as mechanisms to strengthen departmental performance measurement and programme delivery. Audit functions are described as collaborative oversight-including increased concurrent audits, an Audit Quality Management Framework, and strengthened internal audit-aimed at identifying delivery weaknesses and recommending corrective measures. Complementary public finance reforms cited include outcome budgeting, cash management guidelines, preparation of detailed project reports, and a phased move toward accrual accounting.
Capital investment subsidy parity extended to regional MSMEs, enabling repeated subsidy claims for eligible expansions. Increase of the Capital Investment subsidy for MSME units in Jammu & Kashmir to the same rate as the North Eastern Region, and allowance for MSME units in both regions to claim the subsidy on each expansion provided total plant and machinery investment remains within the prescribed MSME investment ceilings for manufacturing and services sectors.
Publicity of government office inauguration requested to publish rolling ticker and publicise new taxpayer service centre. The Chief Commissioner's Public Relations Wing requested the System Directorate to upload a specified rolling ticker announcing the inauguration of the new Aayakar Bhawan and the first fully operational Aayakar Seva Kendra (ASK) under Sevottam at Chinsurah, and to provide wide publicity of the event via the official income tax web portal.
Inflation control and investment in R&D urged to sustain growth and address trade and investment vulnerabilities. The Finance Minister reported containment of price rise through fiscal and administrative measures, citing lower food inflation and expected higher kharif output, while identifying concerns including trade imbalance, FII volatility, current account pressures and reduced FDI. Emphasis was placed on strengthening the public distribution system, accurate demand projection, and urgent investment in research and development, innovation and skilled manpower, together with agricultural diversification, credit support, infrastructure expansion and reforms to sustain high growth.
Direct tax collections surpass budget estimate midpoint; corporate and personal tax receipts show divergent growth. Direct tax collections recorded material growth through April-November, crossing half of the Budget Estimate target for the fiscal year. Corporate Income Tax receipts rose markedly and were the principal driver of the increase, while Personal Income Tax receipts grew at a lower pace. Securities Transaction Tax returned to positive growth during the period, signaling a change in the composition of direct tax inflows relevant to mid year fiscal monitoring.
Public Private Partnership model for expanding IIITs establishes shared funding, state land provision, governance autonomy and faculty development. Approval was given to establish twenty IIITs under a Public Private Partnership (PPP) model with shared capital and start up support from Central, State and industry partners, conditional State land provision free of cost, phased implementation dependent on partner response, time limited central recurring assistance, and a requirement that each institute become financially self sustaining within the initial operational period. Governance powers are vested in institute Governing Boards, a tripartite MoU will define partner roles, provisional society registration is allowed pending legislation declaring them Institutes of National Importance, and faculty development modalities are to be finalised with the finance ministry.
Anti-dumping duty on CKD/SKD imports applies where goods retain essential character, so CFL CKD/SKD are taxable. The Board clarified that anti-dumping duty on CFLs applies to imports in CKD/SKD condition because Rule 2(a) of the General Interpretative Rules treats incomplete, unassembled or disassembled articles that retain the essential character of the finished product as complete articles; therefore, where anti-dumping duty is attracted on the article it must be levied on CKD/SKD imports whether in single or part shipments, and prior letters excluding parts/components did not intend to exempt CKD/SKD consignments.
Exemption of additional EPF interest announced, with government to revise notification and extend tax relief to employees. Additional interest on Employees Provident Fund deposits will be exempted from income tax, following the Central Board of Trustees' decision to raise the EPF interest rate and the Finance Ministry's indicated revision of the notification to reflect the higher rate once government approval is obtained.
Post Office financial tie ups expand distribution of banking, pension and retail products while policy reforms boost small savings access. The Department of Posts has entered into multiple tie ups to distribute financial and retail products through post offices, including money transfer, mutual funds, pension scheme point of presence services, microcredit disbursement to self help groups, banking product distribution and sales of retail items, while the government has implemented policy measures-such as a maturity bonus, extension of tax benefits, raised deposit ceilings, rationalised premature withdrawal penalties, expanded pension account eligibility, removal of account opening restrictions, zero balance welfare accounts and online investor interfaces-to promote small savings schemes and broaden access.
Direct Taxes Code to boost tax transparency and predictability while plugging loopholes and replacing existing income tax law. The proposed Direct Taxes Code is presented as a comprehensive legislative replacement for the Income Tax Act, 1961, intended to enhance tax transparency and predictability and to plug loopholes that cause tax leakages; the Bill has been introduced in Parliament and is expected to be taken up for passage with an anticipated future fiscal enactment.
Senior citizen welfare measures extend targeted concessions and pension support to older women and widows across tax, transport and care schemes. Welfare frameworks secure financial security, healthcare, shelter and special consideration for widows; a 2007 statute prescribes maintenance obligations, old age homes, medical care and protection; the Integrated Programme funds old age homes, mobile medical units and Multi Facility Care Centres for older widows offering shelter, care and income generation training; tax and transport concessions provide higher basic income tax exemptions and age based railway and airline fare concessions; the widow pension scheme provides monthly support to BPL widows aged 40-64, with state wise beneficiary data reported.
Authorized Economic Operator status grants streamlined customs treatment and reduced inspections for compliant supply chain participants. The AEO programme grants a quality mark to Indian legal entities in the international supply chain that demonstrably meet customs compliance, record keeping, financial solvency and prescribed safety and security standards; applicants submit an application, security plan, process and site maps, undergo validation and an on site verification by an AEO Programme Team, and if successful receive a certificate enabling simplified customs procedures, reduced inspections and integration into risk management, subject to ongoing review, suspension, revocation and appeal mechanisms.
Tax searches executed across corporate and associated premises to gather evidence in an alleged tax evasion probe. Nationwide enforcement action consisted of coordinated income tax searches and survey operations at corporate and associated premises, including offices, dealer locations and residences of key management, deploying multi-jurisdictional investigators and survey teams to gather evidence in connection with alleged tax evasion.
The Union Cabinet today approved the setting up of 20 new Indian Institutes of Information Technology (IIITs) with a Public Private Partnership (PPP) model with an outlay of ` 2808.71 crore (` 2558.71 crore for non recurring, ` 200 crore for recurring expenditure and ` 50.00 crore for faculty development expenditure). The proposal includes:
• The capital cost of each IIIT will be ` 128.00 crore to be contributed in the ratio of 50: 35: 15 by the Central Govt, the State Govt, and the industry respectively (57.5 : 35: 7.5 in case of North-Eastern region). In addition, ` 50.00 crore will be provided by the Central Government for faculty development programme for the faculty of new IIITs as well as existing IIlTs and IISERs. During the first four years of setting up each IIIT, the Central Government will provide partial support towards the recurring expenditure upto ` 10 crore to each IIIT depending upon actual requirement of IIIT.
• The project shall start from the financial year 2011-12 with setting up 5-10 IIITs depending upon the response of the State Governments and private partners.
• Each IIIT shall meet its operating expenditure on its own within 5 years of commencement out of students fees, research and other internal accruals.
• The concerned State Government will provide 50-100 acres of land, free of cost.
• The Governing Board of IIIT will be empowered in the matters relating to student intake, fee structure, faculty/non faculty salaries, creation of faculty and non faculty positions, recruitment norms etc
• In principle approval for introducing the Indian Institutes of Information Technology Act, 2010 for setting up new IIITs and declaring them as Institutes of National Importance. Since this process is time consuming, the IIITs may, initially, be registered as Societies under the Societies Registration Act 1860.
• To put in place a tripartite MoU document spelling out the role and responsibilities of private partners vis-a-vis that of the Government. • To work out the modalities and detailed plan for the faculty development for new IIITs as well as existing IIITs and IISERs in consultation with the Ministry of Finance.
The Indian Institutes of Information Technology (IITs) will be world-class Institutes and will be set up as autonomous institutes based on Public Private Partnership (PPP) model. Each Institute is meant to specialize in application of IT skills in one or more domain areas. One of the important criteria for setting up IIIT in a State will be availability of 50-100 acres of contiguous land or a minimum of 50 acres of land, with additional land available at another site in the State, which shall be made available, free of cost, for the establishment of the Institute. Initial capital for establishment of the Institute shall be contributed by the Central, State Governments concerned and industry.
The new IIITs will produce world-class high quality technical personnel, which will generate manpower for emerging industries, science departments and laboratories. This will, in turn contribute to the development of industries and finally boost the economic growth of the country. IIITs will develop professional expertise and skilled manpower in IT and its applications to certain domain areas.
Public Private Partnership model for expanding IIITs establishes shared funding, state land provision, governance autonomy and faculty development.
Approval was given to establish twenty IIITs under a Public Private Partnership (PPP) model with shared capital and start up support from Central, State and industry partners, conditional State land provision free of cost, phased implementation dependent on partner response, time limited central recurring assistance, and a requirement that each institute become financially self sustaining within the initial operational period. Governance powers are vested in institute Governing Boards, a tripartite MoU will define partner roles, provisional society registration is allowed pending legislation declaring them Institutes of National Importance, and faculty development modalities are to be finalised with the finance ministry.
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