Taxation
Need to phase out tax exemptions for level playing field: Official
New Delhi : Tax exemptions are costing India's exchequer about Rs.200,000 crore annually and it is necessary to phase them out to provide a level playing field for domestic companies to make for a successful Make in India campaign, a finance ministry official said on Wednesday.
 
"In direct tax, we are losing about Rs.1 lakh crore in these exemptions. The cause may be noble, but it distorts the taxation system. In case of indirect tax also, we are almost losing Rs.1 lakh crore because of various exemptions given for SEZs, EOUs," Revenue Secretary Hasmukh Adhia said in an interview on the finance ministry's YouTube channel.
 
"The focus of the budget should be on tax rationalisation and simplification. The focus should be on promoting growth, employment and in terms of giving some sort of level playing field to domestic manufacturers so that 'Make In India' can happen.
 
"Had we not given all these exemptions, we would have been able to probably reduce the income tax rate and we would have been given a more fair deal to people in paying the same thing," Adhia added.
 
Describing exemptions as creating inequity, he said removing exemptions would also help in improving the tax to GDP ratio that is currently around 10 percent.
 
"Exemptions create inequity... between the existing unit and the new unit which is availing the exemption and it also creates inequity in terms of smaller companies and bigger companies," he said.
 
"There is a need to increase the tax to GDP ratio, but you also have to see the capacity of people to bear that kind of taxation burden. If we simply rationalise the taxation system and remove the exemptions, I am sure the tax to GDP ratio can be enhanced substantially," he added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Multiple options for subscribing to pension scheme
New Delhi : Citizens can use their bank account or eAadhaar and permanent account number (PAN) as know your customer (KYC) document to register online for the national pension scheme (NPS).
 
In a notification on Wednesday, the Pension Fund Regulatory and Development Authority said eAadhaar in addition to bank account and PAN would reduce cost and operational time and ensure more subscribers to the old age income scheme.
 
Citizens can open an NPS account online through any of the points-of-presence-service provider, using PAN and net banking, with KYC verification by the bank. Possibility of opening duplicate retirement (PRAN) accounts is ruled out online.
 
Subscribers can also get their PRAN generated by opening their account using Aadhaar number and one-time password from the Unique Identification Development Authority of India (UIDAI).
 
The subscriber can go to eNPS platform of NPS Trust website (npstrust.org.in) and enter Aadhaar to validate it using OTP (one-time password) sent to mobile.
 
The subscriber has also to pay online a minimum of Rs.500 for the service as advance and transaction cost.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Address concerns before finalising civil aviation policy: airlines
New Delhi : Top Indian airline executives under the banner of Federation of Indian Airlines (FIA) on Wednesday met union minister Jitendra Singh and sought their concerns be addressed before finalising the National Civil Aviation Policy (NCAP).
 
Aditya Ghosh, president, Indigo, Narayan Hariharan, senior vice president, Jet Airways, Ajab Singh, CMD, SpiceJet and Jeh Wadia, MD, Go Airlines sought the government's intervention to avoid discrimination in the NCAP being prepared by the civil aviation ministry.
 
"Should also be kept on board as stakeholders during the consultations before finalising the new policy," said a memorandum submitted by the executives to Singh.
 
Raising their voice against foreign airlines taking control of some Indian airlines, the memorandum said: "No other country in the world allows substantial ownership and effective control of its airlines to be taken over by foreign airlines. India has permitted some airlines to operate despite being effectively controlled by their foreign parent."
 
Demanding a level playing field along with foreign and new airlines, they highlighted that the proposed exemption of 5/20 rule, under which an airline can only apply to fly international routes after gaining five years of local flying experience with a minimum of 20 aircraft in its fleet, for new airlines will amount to injustice to the existing airlines.
 
The memorandum by the FAI, which claims to represent 90 percent of Indian airline industry, expressed reservations against the proposal to auction bilateral rights, noting no country auctions its sovereign right to others.
 
Another point raised by the memorandum refers to the non-obligation of new airlines to fly to remote and backward areas which is being executed by existing airlines.
 
"As far as the sector-wise benefits, the already operating airlines from India would be at disadvantage, because it is they who came forward to operate in sensitive areas including Jammu and Kashmir and northeast," it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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