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The Centre on Wednesday approved extension of tenure of loans under Credit Linked Subsidy Scheme (CLSS) of Pradhan Mantri Awas Yojana (PMAY) to 20 years from 15 years and introduction of a new CLSS for middle income group with a provision of Rs 1,000 crore in 2017-18. "The Union Cabinet chaired by Prime Minister  Narendra Modi  has given ex-post facto approval to the proposals for extension of tenure of loans under the CLSS vertical of Pradhan Mantri Awas Yojana (Urban) Mission from 15 to 20 years," said an official statement. According to the statement, the scheme will be renamed as CLSS for EWS/LIG — for economically weaker sections (EWS) of society/Lower Income Group (LIG). Besides, the Cabinet approved the introduction of a new Credit-Linked Subsidy Scheme for the Middle Income Group (MIG).  Read more

Here are the highlights of Jaitley's  Budget  for the 2017/18 fiscal year that begins on April 1. FISCAL DEFICIT * The 2017/18 budget seeks to pursue prudent fiscal management to preserve financial stability. *Fiscal deficit at 3.4%   *Revenue deficit stands reduced to 2.1% in Fy18 GROWTH * Jaitley says India seen as an engine of global growth DEMONETISATION * Demonetisation "a bold and decisive measure", will make GDP bigger and lead to higher tax revenues - finance minister  * Hit to economy from government decision to outlaw high-denomination notes will be "transient", effects of demonetisation not expected to spill over to next year * Pace of remonetisation has picked up and will soon reach comfortable levels * Surplus money in the banking system will lower borrowing costs, increase credit flow INFLATION *Consumer price index inflation is expected to remain within the central bank's mandated range of 2 to 6% ...

The  Demonetisation  drive undertaken by the Indian government is a "great move" in the longer term, AppleChief Executive Officer Tim Cook said as he emphasised the company's strong intention to "invest significantly" in the country. Cook, in the first quarter of the financial year (FY) 2017 earnings release conference call, said despite the demonetisation exercise, US-based iPhone maker performed well in the Indian market. "Despite the demonetisation move in India that created lots of economic pressure there last quarter, despite that, we had all-time record revenue results, and so we were very happy about that," Cook said in the call on Tuesday when asked about the company's performance in India during FY17 the quarter ended December 31, 2016. Cook, 56, said the impact of demonetisation has not worked its way through yet and it is "still definitely having some overhang."...

Finance Minister  Arun Jaitley  will present the Union Budget 2017-18 at 11 am on Wednesday in Lok Sabha. "Watch me live presenting the Union  Budget 2017  at 11 am, February 1, 2017," Jaitley tweeted. Jaitley met President Pranab Mukherjee in the morning and the latter gave his assent to the presentation of the Budget today. There was uncertainity over the presentation of the Budget over the demise of MP and IUML leader E Ahamed. 78-year-old Ahamed passed away in the wee hours on Wednesday at Ram Manohar Lohia Hospital in the capital. The MP from Kerala's Mallapuram suffered a cardiac arrest during the President's address to the joint sitting of Parliament on Tuesday. In moving away from the tradition, there will be no separate Rail budget from this year, as it has been merged with the General Budget.  Read more

Benchmark indices were trading flat during the early morning trade as investors awauted  Union Budget , to be tabled later in the day. Arun Jaitley is likely to boost spending and ease back on cutting the deficit in his fourth budget, as he seeks to lift growth hit by the demonetisation drive.   At 10:23 am, the S&P BSE Sensex was trading at 27,629, down 27 points, while the broader Nifty50 was ruling at 8,545, down 16 points.   In the broader market, BSE Midcap and BSE Smallcapindices gained 0.09% and 0.07% respectively. "Yesterday’s slippage saw buying interest from the 8,580 region on anticipated lines, but without enough signs of resumption of uptrend. To this end, early rise into the 8,600-8,640 region should attract long liquidation attempts yet again, though a sharp fall is less expected," said Geogit BNP Paribas in a note. Read more: BUDGET LIVE: Budget on schedule, Cabinet meeting to be held shortly

Union Budget 2017 BUDGET EXPECTATION: We expect the Government to announce an ‘anti-rich’ budget which focusses on installing penalties on cash transactions, tax on the withdrawal of cash from the banking system, income tax relief for the middle class and potentially an adverse capital gains tax-related decision for equity investments. Additionally, we expect a moderate increase in revenue expenditure allocation whilst capex is deprioritised. As regards the fiscal deficit, the Government is likely to postpone the fiscal goalpost of hitting 3% of GDP in FY18. -- Ambit Capital  Click here : BUDGET LIVE: Budget on schedule, Arun Jaitley leaves for Rashtrapati Bhawan

Wants TDS cut from 10% to 2%, and applied on commission earned, not on gross invoice value Wants TDS to be cut from 10% to 2%, and applied on commission earned, not on gross invoice value The staffing industry, representing companies such as Team Lease and Quess, wants finance minister Arun Jaitley to resolve the tax anomalies it faces, in the upcoming  Budget 2017 India . The Indian Staffing Federation says that its demand assumes significance since post-demonetisation   it is the formal sector which will grow and the staffing industry will play a crucial role in that. The industry represents contract hiring in organised industry done through tri-partite agreements -- between the company that is hiring, the person hired and the staffing industry. The Federation said tax deducted at source (TDS) is imposed on the gross invoices received by its members from its client companies, whereas it should be on just the commission received by the staf...

Ahead of the budget session he urged all political parties will work together for people's benefit : Prime Minister Narendra Modi on Tuesday ahead of the  Budget  session hoped that the current session will be "fruitful" and all political parties will work together for people's benefit. "We had discussions with every political party individually and collectively. There should be productive and detailed discussion of the budget during the session," Modi said while addressing the media here. "I urge all parties to help in smooth functioning of the session. I hope for fruitful discussions. We aim at positive and meaningful debates for public interest. "I am hopeful all political parties will work together to move forward," he said. Modi also said: "This is the first time the budget is being presented on February 1." "Everyone would remember that earlier budget used to take place at 5 pm. This practice was changed du...

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:  Cl...

The government has convened an all-party meeting today ahead of the  Budget   Session of Parliament to seek opposition's support for the smooth conduct of proceedings in both the Houses. Lok Sabha Speaker Sumitra Mahajan has also called a meeting of leaders of political parties in the House same evening. The Budget Session will start from Tuesday with President Pranab Mukherjee's address to a joint sitting of the Lok Sabha and the Rajya Sabha. The Economic Survey will also be presented on the first day of the session. General Budget will be presented on Wednesday. The two Houses will have a month long recess from February 10 to March 8 to enable the Standing Committees to consider the Demands for Grants of Ministries and Departments and prepare their reports. Statsguru:  Budget expectations FM might also refer transitioning to a universal basic income (UBI) architecture in his Budget: By all accounts, growth has slowed after demonetisation. B...

Tax slabs decided for the GST are 5, 12, 18 and 28 per cent Finance Minister Arun Jaitley may hike service tax rate to 16-18 per cent from the current 15 per cent in the  Budget 2017 , due on Wednesday, as a precursor to the Goods and Services Tax (GST) rollout. The move, that will make flying, eating out, phone bills and a host of other services expensive, would be an attempt to take the rates closer to the proposed tax slabs for GST. GST, which will subsume central and state levies like excise duty, service tax and VAT, is scheduled to be rolled out from July 1. The tax slabs decided for the GST are 5, 12, 18 and 28 per cent and taking service tax closer to one of the slabs is a logical move in the Budget, tax experts said. Tax experts say, Jaitley, who had in his previous budget hiked service tax rate by 0.5 per cent to 15 per cent, may raise the levy by at least one percentage point to 16 per cent. Some others feel there could be different service tax rates with...

The PwC leader (Food and Agriculture), PwC was replying during a Business Standard live chat In an effort to double the agriculture production by 2020, the government should introduce schemes for greater access to farm credit in  Budget 2017 , Ajay Kakra, leader (Food and Agriculture) PwC, said. Kakra also underlined that Union Finance Minister Arun Jaitley should also introduce policies for incentives towards irrigation and insurance of farm crops. He further highlighted the need for a digitised farming economy in the longer run. Kakra was answering questions on what announcements related to the agriculture sector are expected in Budget 2017 during a Business Standard live chat. Excerpts: In his New Year's eve speech, Prime Minister Narendra Modi talked about giving certain concessions and incentives to farmers. It is hoped that the government will follow that up with further concessions and incentives for the agriculture sector and the agro-input industry in the comin...

Govt set to announce additional details behind GAAR, which will be implemented starting April 2017 Investors in India are bracing for higher taxes and less incentives from the government's annual  Budget 2017   to be unveiled on February 1 as the focus shifts to wringing out revenues to finance giveaways and higher public investment to support the economy. Below are the main elements expected in the measures that could impact markets: Guidelines for General Anti-Avoidance Rules (GAAR) - Government set to announce additional details behind GAAR, which will be implemented starting on April 2017. - GAAR is meant to crack down on tax havens, making it harder to claim some tax exemptions. - The government on Friday said GAAR would not apply for foreign investors based on a jurisdiction because of genuine commercial reasons and not just to benefit from exemptions under India's tax treaties with o...

Govt can offset any negative impact by lowering corporate tax rates, mitigating note ban impact Investors in India are bracing for higher taxes and fewer incentives from the government’s annual   Budget 2017   on February 1, as the focus shifts to wringing out revenues to finance giveaways and higher public investment. While Prime Minister Narendra Modi’s administration is widely seen as being friendly to businesses and investors, it is not expected to announce any dramatic moves at a time when the economy is under pressure from a cash squeeze.  Among expected measures are a hike in a transaction tax on stock derivatives trading and a less beneficial approach to long-term capital gains tax exemptions, according to analysts. India is also set to provide guidelines for new rules in April that will crack down on tax havens, while foreign portfolio investors are seeking clarity behind ‘indirect transfer’ rules that could increase tax liabilities for ove...

The government will present the Union budget 2017-18 on February 1 President Pranab Mukherjee has approved changes in government rules to allow merger of rail  Budget 2017  with the central budget. The Department of Economic Affairs has been entrusted with the work relating to preparation of central budget including rail budget, as per a recent order issued by Cabinet Secretariat. Earlier, the department was looking after the preparation of budget other than the railway. The President has given nod to amend Government of India (Allocation of Business) Rules, 1961 in this regard and the department will now prepare both the budgets. The Union Cabinet had in September last year approved certain landmark budgetary reforms relating to the merger of railway budget with the general budget from 2017-18 onwards. The presentation of separate railway budget started in 1924, and has continued after independence as a convention rather than under Constitutional provisio...

Chandrababu Naidu-led panel recommended taxing cash transactions of at least Rs 50,000 The finance ministry on Wednesday said it had not taken a decision on the banking cash transaction tax (BCTT) a day after speculation arose that it could be introduced in the   Budget 2017   for 2017-18 because a panel on digitalisation had made a case for it. A committee on digitalisation headed by Andhra Pradesh Chief Minister Chandrababu Naidu had in an interim report recommended taxing cash transactions of at least Rs 50,000 to promote digital payments. The committee also wanted the Reserve Bank of India (RBI) and the finance ministry not to permit cash transactions above a threshold. “We have submitted the recommendations to Prime Minister Narendra Modi today and are fairly confident that some of these will be incorporated in the Union Budget,” Naidu had told the media on Tuesday. "The media has reported various aspects of the re...

Jaitley is looking at how to fund giveaways to taxpayers and higher public investment  India's finance minister is likely to borrow more than originally planned when he presents the  Budget 2017  Date on Feb. 1, senior aides and officials said, despite counting on revenues from a national sales tax whose launch date is still unknown. Arun Jaitley is looking at how to fund giveaways to taxpayers and higher public investment to help nurse Asia's third-largest economy back to health after the government's shock decision in November to abolish high-value banknotes. That is raising concern among some economists and investors that the government will take too many fiscal risks. Yet officials say that, given the choice, they would choose growth sustained by state investment over a fiscal straitjacket. "Some degree of flexibility on fiscal discipline should not be seen as irresponsible fiscal management," one senior government official told Reuters, requesti...

The government has announced excise duty exemptions till March 31, 2017 To promote digital payments, the upcoming budget may offer incentives to companies which manufacture equipment like PoS machines and micro ATMs. According to sources, the government may cut or eliminate excise duty on manufacturing of micro ATMs, finger print readers, biometric cards and PIN cards. Further, import duty may also be reduced on components used in the manufacturing of micro ATMs, they said, adding the excise duty exemption given by the government on these machines may be further extended. The government has announced excise duty exemptions till March 31, 2017. The 'Committee on Digital Payments', headed by former finance secretary Ratan P Watal, had suggested incentives to encourage digital payments in India. It had suggested withdrawal of all charges levied by government departments and utilities on digital payments and bear the cost of such transactio...

The school education and literacy budget increased 3.2% in 2016-17 The 2017-18  Budget  is an opportunity for the government to concentrate on improving school education for over 260.5 million children who enrolled in elementary and secondary school in 2015-16–children who will form the core of India’s working-age population, one billion by 2030, the largest in the world. “Business as usual” will not solve the problem, submitted Pratham, an education nonprofit, in a pre-budget consultation with India’s finance ministry. “Unless major shifts are undertaken on an urgent basis to build children’s foundational skills, we are losing huge opportunities each year for improving the life chances of an entire generation of children and youth in this country,” the consultation note added. IndiaSpend reached out to the education ministry for a comment on the 2017-18 Budget , but we had not received a response at the time of...

Instances of crop failure due to adverse climatic conditions is another major issue faced Industry size:  All Categories: $236 billion ( Rs 1,600,000 cr) Employment figure:  90 million person days  Contribution to Gross Value Added (GVA): Agriculturecontributes 15.4% of GVA Key Issues or Areas of Concern Infrastructure development initiatives for post-harvestproducts are in its preliminary phase. Post-harvest losses account for Rs 92,651 cr. Instances of crop failure due to adverse climatic conditions is another major issue faced by the agricultural economy.  PMFBY (Pradhan Mantri Fasal Bima Yojana) has shown a good uptake from the farmers which minimises risk of cropfailure through insurance but the overall loss still remains a big challenge. Large cultivable area still remains unirrigated, thereby limiting the per unit productivity of agricultural operations. Industry demand...

India's demonetisation drive has impacted gold demand in the short term but buying is showing signs of revival and post the presentation of the national  Budget 2017  on February 1, the market will be back to normal, says the India chief of World Gold Council. "In November and December (during the demonetisation drive) certainly there was some impact. But people have started buying again. We hope soon after the budget, buying will normalise," Somasundaram P.R., Managing Director, India, World Gold Council, told IANS in an interview. He also said demonetisation will have a positive impact on the gold industry in the long run as it will curb grey market trades substantially. "Overall impact of demonetisation will be positive -- industry will come under organised business. Of course the transition will take some time," he said. "Business during the demonetisation period was hurt as people were mostly busy exchanging old notes and genui...

Budget 2017 IDMA said all excisable goods used for R&D purposes should be exempted from central excise duty The pharmaceutical industry has asked the government to bring in more clarity in terms of tax structure and provide incentives on research and development (R&D) as part of its  Budget   wish-list. The industry players also want the government to provide a road map towards bringing down corporate income tax down to 25 per cent. The Indian Drug Manufacturers Association (IDMA), a body comprising mostly home-grown pharma firms, said all excisable goods used for R&D purposes should be exempted from central excise duty. "Introduce parity in the input (12 per cent) and output (6 per cent) rate of excise duty for pharmaceutical products," it said. The association has also suggested that the government allow utilisation of CENVAT credit for payment of service tax on reverse charge basis. On the other hand, the Organisation of Pharmaceutical Produce...

India Budget 2017 Jaitley is under pressure to offer tax giveaways and step up capital and welfare spending Prime Minister Narendra Modi's decision late last year to scrap high-value bank notes has put his finance minister in a bind ahead of the annual Budget next month. Arun Jaitley is under pressure to offer tax giveaways and step up capital and welfare spending to ease the pain from demonetisation, but the economic disruption caused by Modi's jolt has made forecasting next year's revenue outlook a stab in the dark. While indirect tax receipts grew by an annual 14.2 percent in December, a slump in consumer spending along with a contraction in services and manufacturing suggest the outlook is anything but rosy. Adding to his dilemma is a delay in launching a new national Goods and Services Tax that would replace a slew of indirect levies. "It is an unprecedented budget," said a senior government official with direct knowledge of fiscal planning...