The Parliamentary panel had suggested raising the annual income exemption tax limit to Rs3 lakh as against Rs2 lakh proposed in the original DTC Bill and also to adjust subsequent tax slabs
New Delhi: The Union Government will come up with a modified Direct Taxes Code (DTC) Bill after incorporating the suggestions of the Standing Committee on Finance, which among things had suggested raising annual income tax exemption limit to Rs3 lakh, reports PTI.
"Will come out with modified DTC (Bill) in response to Standing Committee suggestions," said Parthasarathi Shome, Advisor to the Finance Minister, at a FICCI event.
He said the Finance Ministry is looking at the Bill and working on tax structures as suggested by the Parliamentary committee.
The Parliamentary panel headed by senior BJP leader Yashwant Sinha in its report (March 2012) had suggested raising the annual income exemption tax limit to Rs3 lakh as against Rs2 lakh proposed in the original DTC Bill. Current tax exemption limit is Rs1.8 lakh.
It has also suggested that subsequent tax slabs be adjusted accordingly to provide relief to people reeling under the impact of inflation. The DTC will eventually replace the over five decades old Income Tax Act.
"We are trying to see what could be the best in terms of transparency so that issues that are hurting industry could be covered adequately," Shome said.
He further said the Finance Ministry is also addressing the issue of expenditure control and that remains a major challenge.
"We are looking into expenditure efficiency. We should do more in terms of efficiency. Issues on expenditure side is being addressed. Expenditure control is a major challenge and is being addressed by the Finance Minister," he said.
The DTC Bill, tabled in August 2010, was referred to the Standing Committee for scrutiny.
Shome also said there has been some improvement on the government's non-plan expenditure side since the time of financial crisis in 2008.
Finance Minister P Chidambaram had in November 2012 announced a fiscal consolidation road map wherein he plans to restrict fiscal deficit at 5.3% of GDP in the current fiscal and bring it down to 3% by 2016-17.
Shome further said that the government is showing its intention to bring in clarity in tax laws and reforms in tax administration.
"We have to increasingly do so (tax reforms). That is going to be a vehicle and we won't put it on back burner," Shome said.
He also said the Ministry has asked National Institute of Public Finance and Policy (NIPFP) to calculate the impact of the proposed Goods and Services Tax (GST) on the GDP.
The Rajya Sabha Select Committee, to which the controversial bill was referred in view of sharp differences between political parties, has recommended delinking of the creation of Lokayuktas from the Lokpal Bill
New Delhi: The amended Lokpal Bill, which delinks the Central Government from creation of state Lokayuktas, was on Thursday approved by the Union Cabinet, paving the way for its consideration by Parliament, reports PTI.
The revised bill incorporates a number of changes recommended by the Rajya Sabha Select Committee, including appointment of the Director of Prosecution by the CVC.
The government, however, has not accepted a key recommendation of the panel that an official facing an inquiry by the Lokpal should not be given an opportunity to be heard at the stage of the preliminary inquiry.
The Select Committee, to which the controversial bill was referred in view of sharp differences between political parties, has recommended delinking of the creation of Lokayuktas from the Lokpal Bill.
This was one of the most controversial provisions with several parties contending that it amounts to the central government encroaching upon the rights of the states.
The Bill had said state governments will have to set up Lokayuktas within one year of enactment of Lokpal.
On the issue of giving opportunity to an official to present his or her view, the government feels that such a protection is required and depriving the officials facing allegations the opportunity to present their views was against the "principle of protection".
Another recommendation made by Rajya Sabha Select Committee was that when a Central Bureau of Investigation (CBI) officer investigating a case is sought to be transferred for any reason, prior approval of the Lokpal should be required.
The Cabinet has not favoured the proposal and has suggested an amendment saying transferring any official would remain the exclusive right of the government and the CBI chief as it was an administrative matter, sources said.
Another amendment to the select committee report approved by the Cabinet is that societies and trusts which receive government aid and not funds have been kept out of the ambit of the Lokpal.
But organisations which receive major funding from the government have been kept under the ambit of the proposed ombudsman.
The amendments will now be put to vote in the Rajya Sabha where the measure is stuck since last year. After getting cleared from the Upper House, the legislation will travel back to Lok Sabha for fresh approval of the amendments.
The Bill has already been passed by the Lok Sabha but government's efforts to provide Lokpal with Constitutional status did not succeed in the lower house.
On a consolidated basis, ICICI Bank's net profit rose 22% to Rs2,645 crore as all its subsidiaries -- life and general insurance companies -- reported better numbers
Mumbai: Private sector lender ICICI Bank on Thursday posted over 30% growth in standalone net profit to Rs2,250 crore in the third quarter ended December 2012, helped by sharp rise in net interest income and improvement in asset quality, reports PTI.
On a consolidated basis, the bank's net profit rose 22% year-on-year to Rs2,645 crore from Rs2,174 crore as all its subsidiaries -- life and general insurance companies -- reported better numbers.
On the back of better-than-expected numbers, Chanda Kochhar, Managing Director and Chief Executive of the country's largest private sector bank, said she is hopeful of growing above the industry average on the advances front, clipping at around 20% by the end of March.
During the reporting quarter, the city-based lender saw its other income climbing 17% to Rs2,215 crore, while the income from interests accrued grew much faster at 29% to Rs3,500 crore, she said.
Describing the better performance to overall improvement in operations, Kochhar told reporters in a conference, "the rise in profit came on the back of overall growth and efficiency parameters."
She further said, "going forward, the bank expects slight improvement in net interest margin (NIM) by a few basis points. In the December quarter, the NIM grew 37 basis points to 3.07% over the year ago period."
"Our growth in loans is well-balanced. We would grow our retail loans at 20%. Also, there is a room for growing our international business wherein the net interest margin stood at 1.3%," she said.
The bank expanded its loans by 16% y-o-y to Rs2.87 lakh crore while deposits grew at a slower pace by about 10% to Rs2.86 lakh crore.
ICICI Bank shares closed at Rs1,190.85, after hitting a high of Rs1,231 in the run-up to the earnings announcement, down 1.93% from yesterday's close on the BSE.
Analysts at Emkay Global Financial Services said numbers are significantly ahead of their estimates aided by asset quality improvement is commendable in stressed times like now.