Government takes measures to Squeeze the Black Money

The Union Finance Minister Shri Arun Jaitley said that it will be harder days for those who indulge in illegal and illicit transfer of money across the border. He said that world is moving towards transparent regime making it difficult to hide an illicit transfer of money through internet or other modes. The Finance Minister said that the world economy has moved quite closer in recent years and the countries across the world have decided through G-20 and other international forums to cooperate and coordinate with each other in such cases. The Finance Minister Shri Jaitley was speaking at the Enforcement Day function of the Directorate of Enforcement, Ministry of Finance at Vigyan Bhavan here today.

The Union Finance Minister Shri Arun Jaitley further said that the present Government has taken various steps to squeeze the black money including undisclosed assets within and outside the country. He said that our focus is on reasonable tax rates and ease of doing business for incentivising people to abide by laws and avoid evasion of taxes etc.

Earlier speaking on the occasion, Shri Shaktikanta Das, Revenue Secretary said that there are huge challenges before the Enforcement Directorate. He mentioned about three major challenges especially with regard to black money including Hawala transactions through trade based money laundering, accommodation entry cases through fake companies and Ponzi schemes. He said that there is now better coordination and sharing of information among different revenue intelligence agencies including Enforcement Directorate, DRI, DG Central Economic Intelligence Bureau and Financial Intelligence Units among others. He said that Enforcement Directorate has to abridge itself in order to meet these challenges of innovative minds using innovative techniques for illicit transfer of money. He said that intelligence gathering and investigative skills of the officers of the Directorate have to match the innovative minds that are involved in illegal activities. He said that Revenue Department is open for training of officers of the Directorate to upgrade their skills and learn about various new innovative techniques to meet these challenges.

Earlier, in his Opening Remarks, Dr. Rajan Katoch, Director of the Enforcement Directorate said that this Directorate enforces the provisions of two special laws i.e. Foreign Exchange Management Act (FEMA),1999 and Prevention of Money Laundering Act (PMLA), 2002. He said that the Directorate has completed 59 years of its existence and entered in its 60th year as the first Enforcement Unit was formed on 1st May, 1956. He said that since coming into force of PMLA in 2005, the Directorate has traced and attached laundered assets worth Rs, 9003 crores in 492 attachments orders, arrested 51 money launderers and has prosecuted money launderers in 173 cases. Dr. Katoch further said that during 2014-15, the Directorate has completed investigations in 1576 cases and Notices issued under FEMA in 654 cases for an amount of Rs. 7823 crore. He said that the Directorate also finalised FEMA Adjudication proceedings in 818 cases during this period. During 2014-15, Dr. Katoch added that 166 provisional attachment orders were issued for attached laundered assets of Rs. 3657 crores and prosecution of money launderers was launched in 69 cases.

Earlier, the Finance Minister Shri Jaitley also gave awards and Director’s Commendations for outstanding performance and meritorious service to the officers of the Enforcement Directorate as well as to Kolkata and Guwahati Zonal Offices for their best performance and to Ahmedabad and Kochi Zonal Offices for their outstanding performance in 2014-15. -PIB

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IIC submits representation for 2015 Budget to Govt

Impact Investors Council (IIC), an industry body to promote impact investing in India, today submitted a representation for the forthcoming Budget to the Minister of State for Finance, Shri Jayant Sinha, on behalf of the investors and social entrepreneurs, seeking recognition for the Rs 10,000-crore sector, and easier financing for social enterprises.

Impact Investors invest in social enterprises, which are working to create social and environmental change in the country.

Impact investing essentially involves investing with the implicit intention of generating positive social impact along with a return on capital. It ends the old dichotomy, which saw business as simply a way to make profit, while social progress was best achieved through charity or aid.

Impact investment has been growing at a rate of 27%in India over the last seven years, and 30+ impact investment funds in the country have invested a cumulative amount of $1.6 billion in 300+ social enterprises and across a range of industries such as financial inclusion, agribusiness, healthcare, education and clean energy, among others[1].

Social enterprises in India have exemplified the power that businesses can do ‘good’ while creating value for themselves. However, they have found it challenging to source institutional capital, especially in their initial years. Impact investing has played a key role in filling the crucial gap of financing social enterprises in India.

“Impact Investors have used the power of financial markets and ingenuity of social entrepreneurs to build Rs 10,000 crore impact investment industry with a promise to exceed Rs 6,000 crore annually by 2020. The industry helps bridge our national social investment gap while serving the poor and underserved. Therefore, IIC is requesting the Government to partner us and help galvanize the impact investment eco-system,” said Amit Bhatia, Chief Executive Officer, IIC.

In its first ever member-only convention, the board members of the council presented the priority areas that need immediate attention from the government to boost the impact investing activity in India. IIC requested for the following:

1. Official recognition of impact investors, social enterprises and IIC

2. Review of social venture fund (SVF) guidelines

3. Extending priority sector lending to social enterprises

4. Increasing access to External Commercial Borrowing (ECB) funding by social enterprises

5. “Panel Member” on the high level committee on Corporate Social Responsibility (CSR) and social impact assessment measures.

The number of impact investors-funded social enterprises is expected to reach 1,000 by 2020. The staggering growth is on the back of impact investment, which is estimated to cross $6 billion or Rs 40,000 crore by 2020, while the annual figure is likely to exceed $1 billion in the next five years. The cumulative investment of Rs 10,000 crores positions India as one of the largest impact investment destinations in the world[2].

IIC is working towards the goal of reducing information asymmetry in the impact investing sector. The council has helped in establishing a working definition of impact investing that outlines the contours of impact investing and an impact investor in India. It has also put forth a comprehensive view on the quantum of impact investing across years, sectors and stages of enterprise growth. In addition to these activities, IIC is currently working towards developing national standards for impact assessment and measurement.

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FM to Relaunch Kisan Vikas Patra

FM to Relaunch Kisan Vikas Patra (KVP); Available to the Investors in the Denomination of Rs. 1000, 5000, 10,000 and 50,000, with no Upper Ceiling on Investment; Investment made in the KVP will Double in 100 Months

The Union Finance Minister Shri Arun Jaitley will re-launch the Kisan Vikas Patra (KVP) here tomorrow in the presence of Shri Ravi Shankar Prasad, Union Minister of Communication and IT and Shri Jayant Sinha, Minister of State for Finance among others. Increasing savings rate in the economy was one of the priorities of the new Government on assuming charge. In view of the popular demand and to revitalize Small Savings, the Finance Minister in para 27 of his Budget Speech announced that “Kisan Vikas Patra (KVP) a very popular instrument among small savers will be reintroduced The instrument will encourage people, who may have banked and unbanked savings to invest”. Accordingly, it is decided to reintroduce Kisan Vikas Patras (KVPs). KYC norms regarding all National Savings Schemes (NSS) are now applicable in post offices and banks w.e.f. January, 2012.

The re-launched Kisan Vikas Patra (KVP) will be available to the investors in the denomination of Rs. 1000, 5000, 10,000 and 50,000, with no upper ceiling on investment. The certificates can be issued in single or joint names and can be transferred from one person to any other person / persons, multiple times. The facility of transfer from one post office to another anywhere in India and of nomination will be available. The certificate can also be pledged as security to avail loans from the banks and in other case where security is required to be deposited. Initially the certificates will be sold through post offices, but the same will soon be made available to the investing public through designated branches of nationalised banks.

Kisan Vikas Patras have unique liquidity feature, where an investor can, if he so desires, encash his certificates after the lock-in period of 2 years and 6 months and thereafter in any block of six months on pre-determined maturity value. The investment made in the certificate will double in 100 months.

Reintroduction of Kisan Vikas Patra (KVP) is a welcome step not only in the direction of providing safe and secure investment avenues to the small investors but will also help in augmenting the savings rate in the country. The scheme will also safeguard small investors from fraudulent schemes. With a maturity period of 8 years 4 months, the collections under the scheme will be available with the Govt. for a fairly long period to be utilized in financing developmental plans of the Centre and State Governments and will also help in enhancing domestic household financial savings in the country.

Kisan Vikas Patra (KVP) – a certificate savings scheme was launched by the Government on 1st April, 1988. The scheme provided facility of unlimited investment by way of purchase of certificates from post offices in various denominations. The maturity period of the scheme when launched was 5 ½ years and the money invested doubled on maturity. The scheme was very popular among the investors and the percentage share of gross collections secured in KVP was in the range of 9 % to 29 % against the total collections received under all National Savings Schemes in the country. Gross collections under the scheme in the year 2010-11 were Rs. 21631.16 crores which was 9 % of the total gross collections during the year. In the year of its closure, the scheme secured gross collections of Rs. 7575.95 crores (April 2011 to November 2011).

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Economic Reforms Including GST and Insurance Amendment Bill are on the Anvil: FM

Economic Reforms Including GST and Insurance Amendment Bill are on the Anvil: FM; Calls for Large Investment from Domestic and International Investors in Infrastructure Sector


The Union Finance Minister Shri Arun Jaitley said that the Government has taken series of measures to tackle various challenges being faced by the infrastructure sector in the country. The Finance Minister said that many more such measures are in offing in near future. The Finance Minister Shri Jaitley said that he is in discussion with the members of opposition parties to make necessary procedural changes in Land Acquisition Act in order to avoid delay in the implementation of the infrastructure projects. The Finance Minister was delivering the Key Note Address at the Citi’s Investor Summit: “India – Poised for Higher Growth” here today.

The Finance Minister Shri Jaitley further said that various sectors have been opened for foreign direct investment in the infrastructure sector by the present Government. In this regard he specifically mentioned about the defence and power sectors among others. The Finance Minister said that the Government through its Budget has laid down a direction in which the economy is likely to proceed to restore the investors’ confidence. He said that there will not be any movement of economy in contrary direction.

The Finance Minister Shri Jaitley also gave details of various economic reforms which are in the pipeline. In this regard, he specifically mentioned about the Goods and Service Tax (GST) and Insurance Amendment Bill among others. He said that he is expecting that Insurance Amendment Bill will be passed in the forthcoming Winter Session of Parliament. He said that he is in touch with the Parliament Select Committee in this regard and will try to persuade it to give its report at the earliest.

As regards GST, the Finance Minister said that he is in touch with the various State Governments and most of the contentious issues have already been resolved. He said there are two areas including liquor and petroleum products where the States want to have taxation authority. Two States want entry tax and octroi to be kept-out of the purview of the GST. The Finance Minster said that all these issues will be sorted-out soon. He will also apprise the Empowered Committee of State Finance Ministers’ about the draft Constitution Amendment Bill on GST before introducing the same in Parliament.

The Union Finance Minister said that the targets fixed for disinvestment in the current financial year are quite ambitious one but he hopes to achieve that or reach near the same. He said that road shows in this regard are being held in many parts of the world.

The Finance Minister Shri Jaitley said that inflation, especially food inflation has moderated in last few months and global fuel prices have also come down. Therefore, if RBI which is highly professional organization in its wisdom decides to bring down the cost of capital will give a good fillip to the Indian economy.

Along with the Finance Minister, Shri Dinesh Sharma, Additional Secretary, Department of Economic Affairs, Shri S.S. Mundra, Deputy Governor, RBI and Shri Parmit Zhaveri, CEO, Citi Bank were also present on this occasion. The aforesaid Summit was also attended among others by domestic and international investors.

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50K vacancies to be filled up in PSU banks - P. Chidambaram

Indian Finance Minister P. Chidambaram had a meeting with PSU (Public Sector Undertaking) banks' heads on Wednesday and after the meeting he addressed the press. While talking to the press he said that in this fiscal 50,000 vacancies are to be filled up in the PSU banks of India.

Talking to reporters he said, PSU banks are expected to open 10,000 branches all over India, including 2000 Regional Rural banks. Adding more he also said, as the new branches needs human resources, PSU banks are expected to hire close to 50,000 people in this fiscal.

As on March 31, 2012 - PSU banks had a sanctioned strength of 8 Lakh employees and in the last fiscal recruitment for 63,000 vacancies has been done. Among the PSU banks, State Bank of India (SBI) has recruited the highest, 20-22,000 people, in the last fiscal.

As per the statement of Finance minister, this fiscal bank would follow the same trend and recruit higher number of personnel for around 50,000 jobs.

Entities like Institute of Banking Personnel Selection (IBPS) has been conducting exams all over India to choose the best personnel for banking sector, since few years - including urban and Regional Rural banks (RRBs). Recently IBPS has announced the exams for RRBs.

Apart from that P. Chidambaram also said about stalled projects and he had given importance to re-initiate these projects while talking with the banks' heads.

Above all, this is a good news for students preparing for banking sectors, as this fiscal the recruitment will be high and there chances to get into a bank is more.

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Union Budget 2013-14 Tabled, No change in IT Slabs

The Union Finance minister P. Chdambaram has presented the Union Budget for the fiscal 2013-14 on Thursday in Lok Sabha.

The Budget was one of the populist budgets, as no burden on the income tax payers - no changes in the income tax slabs.


The Minister has given tax credit of 2000 rupees for the income tax payers between 2 lack rupees to 5 lakh rupees.


Women safety has been given prominence in the union budget 2013-14, Rs. 1000 crore for Nirbhaya Fund.


Not only that the finance minister has also suggested for First Women Bank in India for women.

For investors the SEBI to ease norms to attract from FIIs.


Here are the Budget Highlights:

Budget Allocations:

In the Union budget the planned expenditure is pegged at Rs. 555,322 crore which is around 30 per cent more than the budget estimation of last year.

Taxes:

There is no change in the income tax slabs, but tax credit of Rs2000 for the tax-payers under the slab of Rs.2 lac to Rs.5 lac.

Imposes 5-10% surcharge on local companies income above Rs 10 crore

No changes in Education Cess,

Cigarette to cost more as the excise tax has been increased,




FISCAL DEFICIT
FM proposed that India need to rationalize expenditures like coal, oil or gold imports to control fiscal deficit. The fiscal deficit has reduced a value of 4.8% which was 5.2% in last fiscal year.



Education:
Giving priority to the education sector, which has been neglected, the Finance Minister has increased the budget allocation to Rs. 65, 867 crores, which is higher 17 per cent from the last year’s budget allocation. Rs. 13215 crore has been provisioned for mid day meal scheme, one of the flagship schemes of the UPA government.


Agriculture:
The agriculture sector grew by around 3 per cent in the last fiscal year; the finance minister has allocated Rs. 27,049 crore to the Agriculture Ministry.

Rs. 500 crore For crop diversification and Farm Credit Target has been set at Rs. 7 lakh crore for the fiscal year 2013-14;

Defense:

In the budget, the finance minister increased the Defence allocation to Rs. 2.03 lakh crore, Rs. 6,275 crore has been granted to to ministry of science and technology and Rs. 5,880 crore to Department of Atomic Energy.

Women Empowerment:

Acting tough on the women empowerment, the finance minister declared Rs. 1000-crore Nirbhaya Fund for this cause. Also aimed to set up India’s First Womens Bank and approved Rs. 1000 crore as Initial capitalization for Women Bank.

Health and Family Welfare:
In the budget, Rs. 37,330 crore have been allocated for Ministry of Health & Family Welfare.

Stock Markets/Investors:
Due the slowdown the stock markets were tumbling often, the interest of stock markets to be protected. The finance minister announced that Security Exchange Board of India (SEBI) would simply its norm to attract Foreign Institutional Investors (FIIs) into Indian economy market. This will help to boost the investment inflow into the country strengthening it. FIIs can trade in Forex derivaties, 10% stake threshold to be seen as fdi, 15% allowance for investment above Rs. 100 cr, investment allowance of 15% of investment, to approve Rs. 50k crore in tax free bonds.

Urban Housing :
In the budget, Rs. 2000 crore has been allocated for Urban Housing Fund, NHB will set up an Urban Housing Fund.

Infrastructure:
To Set Up Regulator For Road Projects and Infra Debt Funds To Be Encouraged

Allocations:
Additional Rs. 10,000 Cr For Food Bill
Mgnrega Allocation Hiked To Rs. 33,000 Cr
Rs. 15,184 Cr For Indira Awas Scheme
Rs. 80,200 Cr For Rural Development

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Y.V. Reddy to head 14th Finance Commission

Image Credit: EconomicTimes

The Union Finance Minister P. Chidambaram announced that Dr. Yaga Venugopal Reddy, the former Governor of Reserve Bank of India, would head the 14th Finance Commission.

Y.V. Reddy  was 21st Governor of Reserve Bank of India for the period from 6 September 2003 to  5 September 2008.

The commission has been constituted by the Government of India to make recommendations over sharing of union taxes, principles governing grants-in-aid to states and transfer of resources to local bodies.

According to media reports, the commission will consist of three full time members - and Sudipto Mundle, Sushma Nath and M. Govind Rao and Ajay Narayan Jha will be secretary to the Commission.

The 13th Finance Commission was headed by Vijay Kelkar in 2007 for 2010-2015 (Operational Duration). The 12th Finance Commission was headed by C.Rangarajan in 2003 for 2005-2010 period.

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FM withdraws 1% TDS on Property Sales

The finance minister Pranab Mukherjee has withdrawn the proposed 1% tax deduction at source (TDS) on immovable property transactions on Monday. During the budget session the finance minister had proposed about implementing TDS on property sales.

The proposed one per cent TDS on property transaction would have high burden on buyers, as they need to furnish personal details, property details in the tax deduction form.

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FM rolls back excise duty on gold jewellery

Business News: Jewellers in India have been opposing the levy of excise duty on branded or unbranded gold jewellery, now they have some reason to smile with the Finance Minister declaring roll back today.

budgetary proposal of levying excise duty on gold items has been rolled back by the government of India. The impact would be positive in the market; this could boost the gold import into India.

The jewellers were went on 21 days strike opposing the excise tax on branded or unbranded gold items. The withdraw will be with effect from March 17.

The Finance Minister has also declared to differ the the general anti-avoidance rules (GAAR)by one year. Markets rebound from the loss to gain following the GAAR clarification from the government. The sensational index -BSE Sensex closed at 16913 with 82 points up and the Nifty closed up 27 points at at 5114.

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Odisha Budget 2012-13, Priority to Agriculture Sector

Odisha News: The Finance Minister of Odisha, Prafulla Chandra Ghadai has presented the
state budget for the year 2012-13 giving priority to the agriculture sector. The finance minister has given special attention for agriculture in the state, as in this Odisha budget the allocation for agriculture department has been increased by 42.64 per cent to Rs 1,516.16 crore from Rs 1,167.98 crore in 2011-12.

The finance minister also hiked the VAT to 5 per cent from 4 per cent making medicine, steel, food items, sugar and textile dearer for the consumers in the state from April 2012.

Ghadai has presented a revenue surplus budget of Rs. 52,030.70 crore for the year 2012-13. The fiscal deficit of the state has been pegged at Rs 4,751 crore, considering the revenue surplus of Rs 2,410.77 crore out of the total fiscal deficit of Rs 52,755.15 crore.

Rs. 17, 200 crore have been fixed for the state's annual plan size for 2012-13 and estimated Rs 34,350.49 crore for non-plan expenditure in the state budget.

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