Tag: Business and economy

Rajasthan CM transferred more than Rs 700 crore to 70 lakh farmers under Kisan Samman Nidhi

Rajasthan Chief Minister Bhajan Lal Sharma Delivers Financial Aid to Farmers

Rajasthan Chief Minister Bhajan Lal Sharma transferred over Rs 700 crore to more than 70 lakh farmers under the Chief Minister Kisan Samman Nidhi scheme at an event in Ajmer on Friday. Speaking at the event, Sharma emphasized his government’s dedication to the welfare of farmers and cattle rearers, stating that the state’s development is intrinsically linked to the prosperity of its farmers.

During the state-level farmers’ meeting in Ajmer, Sharma announced that an assistance amount of Rs 200 crore was also transferred into the accounts of 3,25,000 cattle rearers. This initiative is part of a series of events to commemorate the first anniversary of the BJP government in Rajasthan.

“The farmer is the true son of mother earth. The dream of a developed Rajasthan will come true only when the farmer is prosperous and happy. Our government is working with determination for the welfare of farmers and cattle rearers,” said Sharma during his address. He highlighted the government’s target of providing daytime electricity to farmers by 2027 and noted various decisions taken in the last year that are aimed at benefiting the farming community.

Additionally, Sharma mentioned that during the recently held ‘Rising Rajasthan Summit’, over 2,500 agreements were signed, paving the way for an investment of Rs 58,000 crore in the agriculture sector.

Assembly Speaker Vasudev Devnani reiterated the state government’s commitment to farmer welfare, urging farmers to embrace new technologies in their farming practices to keep pace with changing times. Deputy Chief Minister Diya Kumari also contributed to the discussions during the meeting, underlining the significance of the government’s initiatives for the agricultural community.

Taxation Changes for ETFs and Investment Assets in Latest Budget: Insights

Changes in Taxation On Investment Products in the Latest Budget

The recent Budget announcement has brought significant changes in the taxation of investment products, particularly favoring commodity and international exchange-traded funds (ETFs). One of the key alterations is the adjustment of the minimum holding period for eligibility for long-term capital gains (LTCG) taxation.

Under the new regulations, assets listed on stock exchanges require a 12-month holding period to qualify for LTCG taxation, whereas all other assets demand a longer 24-month holding period. Consequently, the tax implications on assets such as gold, silver, and international equities will vary based on the mode of investment.

Notably, gold, silver, and international ETFs are eligible for the 12.5% LTCG taxation in just 12 months due to their listing on exchanges. Conversely, investors utilizing the physical or mutual fund route for these assets will have to wait for 24 months to avail the LTCG benefits.

In a remarkable shift, the holding period for all listed assets has been standardized to one year. As a result, the holding period for listed units of business trusts (ReITs and InVITs) has been reduced from 36 months to 12 months. Similarly, the holding period for gold and unlisted securities (other than unlisted shares) has been truncated from 36 months to 24 months, as stated by the income tax department in their FAQs.

While it appears that ETFs may have a taxation advantage in the realm of commodities and international equities, there is an air of anticipation within the industry for further clarity on the matter.

According to senior mutual fund executives, the changes prima facie suggest that ETFs will benefit from preferential taxation in the case of commodities and international equities. However, the industry eagerly awaits more explicit details.

Deepak Shenoy, CEO of Capitalmind, highlighted the nuanced distinctions, stating that a Nasdaq 100 ETF is considered long-term after just one year. In contrast, the Nasdaq fund of funds is categorized as long-term only after two years. Additionally, all listed securities and bonds (excluding bond ETFs or listed debt funds) fall under the long-term category after one year. It’s worth noting that bond ETFs are perpetually categorized as short-term.

Interestingly, debt ETFs, despite being listed on exchanges, do not qualify for LTCG taxation as they fall under the ‘specified mutual fund’ category. Furthermore, any mutual fund product, including ETFs, allocating over 65% of assets in bonds and money market instruments, is taxed based on the investor’s slab rate, regardless of the holding period.

While this new structure has introduced certain ambiguities regarding the holding period for LTCG taxation, it’s been clarified that the short-term capital gains tax on commodity and international ETFs will be in accordance with the investor’s slab rate. This is in contrast to the 20% tax applicable on listed equities, as highlighted by Niranjan Avasthi, senior vice-president and head of product, marketing, and digital at Edelweiss Asset Management.

New Rules for Tax Clearance Certificates in India: What You Need to Know

New Rules for Tax Clearance Certificates When Leaving India

The recent Budget has introduced stricter rules regarding the acquisition of clearance certificates, which are now mandatory for individuals departing from India. Effective from October 1, all residents in India must obtain a clearance certificate to confirm compliance with the Black Money Act.

Section 230 of the Income-tax (I-T) Act stipulates that individuals residing in India must acquire a certificate from the tax authorities prior to exiting the country. This certificate serves as confirmation that the individual has no outstanding taxes or has made arrangements to settle any unpaid amounts.

The requirement encompasses taxes under the Income-tax (I-T) Act, as well as those under the former Wealth Tax, Gift Tax, and Expenditure Tax Acts. Tax experts anticipate that forthcoming notifications or rules will provide further clarification on the requirements, as reported by the Times of India. Additionally, the 2024 Budget has proposed the elimination of the ₹10 lakh penalty under sections 42 and 43 of the Black Money Act for failure to report foreign assets (excluding real estate) if their aggregate value is less than ₹20 lakh. This amendment will come into effect from October 1, 2024.

Furthermore, this exemption from penal provisions also covers incorrect or non-reporting of said foreign assets, according to the Economic Times. It implies that every resident who is ordinarily a resident of India must disclose all foreign assets, including investments such as shares and securities, along with any income derived from these assets while filing their Income Tax Return. Should they fail to report foreign income and assets, or neglect to submit the related ITR, they may face a penalty of ₹10 lakh under sections 42 or 43 of the Black Money Act, irrespective of the value of the asset. However, these sections do not apply to one or more bank accounts with a total balance not exceeding ₹5 lakh at any time during the previous year.

Deaths due to pollution in the country

There is no conclusive data available to establish a direct correlation of death exclusively with air pollution. Air pollution is one of the many factors affecting respiratory ailments and associated diseases. Health is impacted by a number of factors which include food habits, occupational habits, socio-economic status, medical history, immunity, heredity, etc., of the individuals apart from the environment. Steps taken by the Government to improve the air quality are enclosed as Annexure-I.

Annexure – I

National Clean Air Programme:

  • National Clean Air Programme (NCAP) has been launched by Ministry of Environment, Forest and Climate Change (MoEFCC) in January 2019 with an aim to improve air quality in 131 cities (non-attainment cities and Million Plus Cities) in 24 States by engaging all stakeholders.
  • NCAP envisages reduction by 20-30% in PM concentration over baseline in year 2017 by 2024. Target has been revised to achieve reduction in PM10 level up to 40% or achievement of national standards (60 µg/m3) by 2025-26.
  • City Action Plans (CAPs) have been prepared by all 131 cities and being implemented by Urban Local Bodies.
  • The city specific clean air action plans target city specific air polluting sources like Soil & Road Dust, Vehicles, Domestic Fuel, MSW Burning, Construction Material and Industries.
  • Performance based financial support is provided to these131 cities for implementation of activities of City Action Plan.
  • Further, funding for implementation of CAPs is mobilised through convergence of resources from various schemes of Central Government such as Swachh Bharat Mission SBM (Urban), Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Smart City Mission, Sustainable Alternative towards Affordable Transportation (SATAT), Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II), Nagar Van Yojna, etc. and resources from State/UT Governments and its agencies such as Municipal Corporation, Urban Development authorities and Industrial development authorities etc.
  • Public Grievance Redressal Portal (PGRP)/helpline have been developed by all 131 cities to address public complaints of air pollution in timely manner.
  • Emergency Response System (ERS/ GRAP) have been developed by all 131cities for taking action in air emergencies
  • Under NCAP, an amount of Rs. 19,614.44 crores has been earmarked to 131 cities during the period FY 2019-20 till FY 2025-26 out of which 49 Million Plus Cities/Urban Agglomerations are funded under XVth Finance Commission air quality grant and remaining 82 cities are funded by MoEF&CC under Control of Pollution Scheme. So far, an amount of Rs. 11,211.13 crores was released to 131 cities to implement City Action Plans in their respective cities.
  • 95 cities out of 131 cities have shown improvement in air quality in terms of annual PM10 concentrations in FY 2023-24 with respect to the baseline of FY 2017-18. 18 cities have met National Ambient Air Quality Standards (NAAQS) for PM10 (60 µg/m3) in FY 2023-24.

Other steps

  • Notification of Ambient Air Quality Standards.
  • Revision of emission standards for industrial sectors from time to time.
  • Setting up of monitoring network for assessment of ambient air quality.
  • Introduction of cleaner/alternate fuels like gases fuel (CNG, LPG, etc.).
  • Promotion of ethanol blending.
  • Launching of National Air Quality Index.
  • Leapfrogging from BS-IV to BS-VI fuel standards.
  • Introduction of BS VI compliant vehicles across the country since April, 2020.
  • Notification of Construction and Demolition Waste Management Rules.
  • Installation of on-line continuous (24×7) monitoring devices by major industries.
  • Notification of Graded Response Action Plan for Delhi and National Capital Region (NCR).
  • Constitution of Commission on Air Quality Management in NCR and Adjoining Areas (CAQM) etc.
  • Installation of Vapour Recovery System (VRS) in new and existing petrol pumps selling gasoline >100kl per month in million plus cities and those selling >300kl per month in cities with population between 1 lakh to 1 million.
  • For strengthening monitoring mechanism and effective compliance through self-regulatory mechanism, CPCB directed all 17 categories of highly polluting industries to install Online Continuous Emission Monitoring System (OCEMS).
  • Shifting of all operational brick kilns to zig-zag technology.

This information was given by the Minister of State for Environment, Forest and Climate Change, Shri Kirti Vardhan Singh in a written reply in the Rajya Sabha today.