Fiscal discipline maintained while rejecting dual diesel pricing and duty hikes; focus on inflation control and reform measures.
Affirming commitment to fiscal discipline, the statement rejects dual diesel pricing and duty increases as stopgap revenue measures, links monetary tightening and budget initiatives to moderating demand and inflation, and sets priorities on agricultural productivity, education and skills, infrastructure investment via PPPs and dedicated financing mechanisms, land acquisition and environmental clearance reform, and financial sector legislative and regulatory consolidation alongside electronic administrative simplification.

Tax enforcement: Income Tax Department uses IT systems and specialized divisions to detect and act on tax evasion.
Income tax enforcement is strengthened through investigative and deterrent measures under the Direct Tax Laws, including scrutiny of returns, surveys, search and seizure, penalties and prosecution, and verification of receipts or deposits outside the country to bring undisclosed taxable amounts to assessment. The Department uses information technology systems - Tax Information Network and an Integrated Taxpayer Data Management System - and CASS to collate TDS, tax payments and Annual Information Returns, create comprehensive taxpayer profiles, and select returns for scrutiny. Financial intelligence and banking reports are investigated. Specialized wings, the International Tax Division and the Transfer Pricing Division, address foreign, non resident and associated enterprise transactions and apply transfer pricing principles where appropriate.

Multiple PAN detection prompts automated deletion of duplicate tax identity records to preserve PAN database integrity.
The Department employed an automated computerized process to identify multiple PANs held by the same person; 11,69,238 duplicate PANs have been detected and deleted as an administrative measure to preserve PAN database integrity and consolidate taxpayer identities.

Monetary policy tightening raises benchmark rates to moderate inflation and anchor expectations, prompting higher bank lending and deposit rates.
RBI increased the repo rate and adjusted the reverse repo under the Liquidity Adjustment Facility to tighten monetary conditions aimed at moderating inflation and anchoring expectations. Banks transmitted this tightening by raising deposit and lending rates across maturities, with lending rates shifting under the Base Rate framework that replaced the BPLR. The government provided interest subventions for key sectors and groups to offset higher borrowing costs.

Declaration of Illegally Generated Wealth as National Asset to enable confiscation and recovery under strengthened law.
A Committee chaired by the Chairman of the CBDT will review the legal and administrative framework to curb black money and propose measures including declaring illegally generated wealth as a national asset, enacting or amending laws for confiscation and recovery, and prescribing exemplary punishment, after consulting stakeholders and reporting within six months.

Customs seizure of imported luxury cars triggers enforcement action under Customs Act for duty evasion.
Seizure and enforcement action were taken against multiple imported luxury vehicles assessed to involve significant duty evasion, with proceedings initiated under the Customs Act, 1962; customs formations were directed to heighten vigilance to prevent unlawful importation and to pursue statutory enforcement and recovery measures against the importers.

Agricultural debt waiver scheme grants full waiver to small farmers and rebate to others, restoring eligibility for fresh loans.
The Agricultural Debt Waiver and Debt Relief Scheme, 2008 waived the entire eligible debt of small and marginal farmers and provided a One Time Settlement rebate to other farmers, with defined closing dates for waiver and OTS; the Government reimburses lending institutions for amounts waived or relieved and beneficiaries remain eligible for fresh loans.

Agriculture lending surge: banks exceeded the government target for agricultural credit, raising achievement across lending agencies.
Banks collectively disbursed agricultural loans substantially above the government's 2010-11 agricultural lending target, with commercial banks, cooperative banks and regional rural banks each exceeding their assigned targets and producing aggregate disbursements materially higher than projected; the aggregate agricultural lending formed a significant share of priority sector advances, and the target represented approximately one third of total priority sector lending in the preceding year.

Economic fundamentals strong; industry urged to support policy reforms and synergy to sustain higher growth trajectory.
Finance Minister affirmed strong economic fundamentals and urged industry to play a proactive role to propel higher growth. He identified external risks from sovereign debt pressures and commodity volatility and domestic inflationary challenges that justify tight monetary policy. Fiscal consolidation is under way with improving tax buoyancy and planned expenditure restraint; early fiscal year FDI inflows were robust and further liberalisation is under discussion. Government initiatives include export and manufacturing strategies, Infrastructure Debt Fund approval, committee reports on mining, procurement and subsidy reform, and ongoing financial sector legislative and regulatory reforms.

Appointment of Chairman, Central Board of Direct Taxes signals leadership change and concurrent board member induction.
Shri M. C. Joshi assumed charge as Chairman of the Central Board of Direct Taxes effective 1 August 2011, following a career in the Indian Revenue Service including roles as Chief Commissioner of Income Tax, Uttaranchal, and Special Director in the Directorate of Enforcement; the release also records Shri K. Madhavan Nair joining the CBDT as a Member.

Government securities auction: re-issue conducted by central bank using uniform price method with non-competitive facility.
Re-issue auction for three central government stocks will be conducted by the central bank using the uniform price method; up to five percent of each notified amount is reserved for eligible subscribers under the Non-Competitive Bidding Facility. Competitive and non-competitive bids must be submitted electronically on the Negotiated Dealing System within prescribed time windows on the auction day; results and payment schedules are fixed, and the stocks are eligible for When Issued trading under central bank guidelines.

Senior administrative appointment: new Secretary assumed charge, replacing predecessor; previously served as senior health sector financial advisor.
Senior administrative appointment: Naved Masood assumed charge as Secretary of the Ministry of Corporate Affairs, replacing the incumbent; he was previously Special Secretary and Financial Advisor in the health ministry.

TDS database cleanup: ensure filing and correction of TDS returns to resolve mismatches and taxpayer grievances.
Directs CCITs (CCA) and CITs (TDS) to download RCC-wise lists from ITAXNET and to correct TDS returns with high mismatches or ensure non-filer deductors file returns where deductees have claimed TDS. Corporate-charge CITs must cooperate to secure complete, accurate TDS returns with 100% PAN quoting, meet corporate CEOs as needed, and permit CITs (TDS) to procure assistance from third-party resource persons for immediate filing support.

Transparency in tax survey operations: mandatory disclosure of supervisory contact details and signed recordkeeping to aid grievances.
Survey teams must disclose names, designations and contact numbers of Chief Commissioner, Commissioner and Additional/Joint Commissioner to the taxpayer before commencing survey proceedings, inform the taxpayer of the right to contact those officers for grievances, carry a standard proforma in the survey kit, obtain the taxpayer's signature on that proforma as proof of implementation, and submit the signed proforma to the Commissioner of Income Tax for permanent preservation.

Corporate bond market reform to deepen debt financing; government to strengthen engagement with rating agencies and regulators share stability assessments.
The Council resolved to develop the Corporate Bond Market and to expedite establishment of Infrastructure Debt Funds to enable private sector debt mobilisation for infrastructure. It directed the Government to strengthen interaction with credit rating agencies by broadening information exchange and studying rating methodologies to present India's case for higher sovereign credit assessment. Regulators were instructed to share financial stability assessments with the FSDC Sub committee and Secretariat to inform Council reports.

Avoidance of double taxation enables source-based PE taxation and enhanced information exchange under the new bilateral tax treaty.
The bilateral agreement allocates taxation of business profits to the source state when an enterprise's activities constitute a permanent establishment, defines specified PE categories, and incorporates an Article on Associated Enterprises to expand access to the Mutual Agreement Procedure for transfer pricing adjustments. It also provides that dividends, interest, and royalties and fees for technical services may be taxed in both residence and source states; establishes reduced withholding regimes to promote investment; creates an international-standard exchange of information framework including banking information and sharing with other agencies with consent; and includes provisions for assistance in tax collection and a limitation of benefits anti-abuse rule.

Economic and financial cooperation deepened through multilateral coordination and commitments on fiscal consolidation, trade and financial reform.
India and the UK reaffirmed bilateral economic and financial cooperation centred on multilateral coordination through the G20, IMF and FSB to strengthen economic surveillance, capital flow management and financial sector reform; they endorsed IMF quota and governance reforms and committed to credible, medium-term fiscal consolidation plans aligned with the G20 Framework to support resilient, sustainable growth.

Policy repo rate increase signals monetary tightening to moderate inflation and anchor inflationary expectations by year end.
A 50 basis point increase in the policy repo rate under the Liquidity Adjustment Facility is a monetary tightening intended to moderate headline inflation, check inflationary expectations, and support a return to a more comfortable year-end inflation range, responding to softened food inflation but hardened non-food manufacturing inflation that keeps headline inflation elevated.

Government securities auction: uniform-price re-issues open with competitive and non-competitive bidding scheduled electronically.
The Government announced re-issues of three dated securities by auction using the uniform price method, with notified nominal amounts and up to five percent reserved under the Non-Competitive Bidding Facility. Auctions will be conducted by the Reserve Bank of India in Mumbai; competitive and non-competitive bids must be submitted electronically on the Negotiated Dealing System within prescribed time windows. Results will be announced on the auction date, payment by successful bidders follows on the stated settlement date, and the stocks are eligible for When Issued trading under RBI guidelines.

Anti-money laundering commitment strengthened as APG adopts mutual evaluations and admits a new member with UN observer status.
The APG reiterated commitment to anti money laundering and counter financing of terrorism, admitted a new member and granted UN observer status, adopted six mutual evaluation reports, reviewed member progress reports, considered FATF standards and financial inclusion challenges, promoted mutual legal assistance and financial intelligence sharing, and advanced typologies work on non profit organizations to strengthen regional cooperation against illicit finance.