Menu

Finance Ministry

finmin

FinMin Requests Budgetary Recommendations From Union Ministries

,

Departments can submit any further recommendations within seven days of the conclusion of their pre-budget discussions with the finance ministry, which are planned to take place between 10 October and 14 November

 

The finance ministry solicited budgeting requests from various departments and ministries to be included in the first round of supplemental demands for grants for FY24.

Departments can submit any further recommendations within seven days of the conclusion of their pre-budget discussions with the finance ministry, which are planned to take place between 10 October and 14 November.

They are requested to be reasonable and impartial in their evaluation of additional needs. This request was made in an office letter from the Department of Economic Affairs (DEA). In the following session, the Parliament will be asked to approve the additional grant requests.

The DEA also added that the granny controlling authority must identify savings available within the grant while processing proposals for supplementary grants to weed out infructuous or inflated supplementary demands. It will also hep in avoiding the eventuality of surrender after supplementary grant is passed.

According to the existing laws, where re-appropriations may be done without the need for additional grants, no supplementary request, not even for a little sum, should be presented, the document stated. In the first five months of current fiscal year, the center’s fiscal deficit increased from 32.6 per cent to 36 per cent of the yearly target. Senior government officials have emphasised the Center’s intention to adhere to its fiscal year 2023-24 fiscal deficit objective of 5.9 per cent of GDP while noting that spending on specific initiatives may differ from the planned amounts.

 

tax

Direct tax collection increased by 23.51% Y-O-Y

, , ,

Direct tax collection has jumped to Rs 8,65,117 crores with an increase of 23.51 per cent year-on-year, according to the data released by Finance Ministry today. Preceding year witnessed net collection of Rs 7,00,416 crores.

The provisional figures of Gross collection of Direct Taxes for the Financial Year 2023-24 stands at Rs 9,87,061 crores compared to with an increase of 18.29 per cent, compared to Rs 8,34,469 crores in the corresponding period of the FY 2022-23.

According to provisional data of advance tax revenues for the FY 2023–24 stand at Rs 3,55,481 crores, up from Rs 2,94,433 crores for the FY 2022–23. This represents a growth of 20.73 per cent. corporation tax at Rs 4,71,692 crore and personal income tax including securities transaction tax at Rs 5,13,724 crores are included in the total revenue collection of Rs 9,87,061 crores. The minor head wise collection includes advance tax of Rs 3,55,481 crore, tax deducted at source of Rs 5,19,696 crore, self-assessment tax of Rs 82,460 crore, regular assessment tax of Rs 21,175 crores, and tax under other minor headings is Rs 8,248 crores. 

cfo image

Economists Suggests FM To Step Up Capex, Cut Tax In Budget 2023

, , , , , , , , , , , ,

According to the economists, considering the high inflation rate, providing a relief on income tax will boost domestic demand. In total, the finance minister has held eight rounds of discussions, beginning with India Inc on 21 November and ending with a round of consultation along with economists on 28 November.

The government is asked by the Economists to level up capital expenditure, rationalise personal income tax and stick to fiscal discipline in the upcoming Budget, on 28 November.

During the finance minister Nirmala Sitharaman led pre-Budget interaction, they also urged her to increase health care outlay and focus on quality job creation.

According to the economists, considering the high inflation rate, providing a relief on income tax will boost domestic demand. In their suggestion, the Centre should continue with long-term loans to states, meanwhile relaxing some of the spending restrictions and handhold them through fiscal management. Its focus should especially be on those with high borrowings.

The meeting was attended by the economists and experts along with N R Bhanumurthy of Dr BR Ambedkar School of Economics University, Ashwani Mahajan of Swadeshi Jagaran Manch, Poonam Gupta of National Council of Applied Economic Research, Monetary Policy Committee member Ashima Goyal, economist Karthik Muralidharan, Aditi Nayar of Icra, Santanu Sengupta of Goldman Sachs, Rahul Bajoria of Barclays, Madan Sabnavis of Bank of Baroda, and Deepak Mishra of ICRIER.

In total, the finance minister has held eight rounds of discussions, beginning with India Inc on 21 November and ending with a round of consultation along with economists on 28 November.

Expectedly, the Budget 2023-24 is to be tabled in Parliament on 1 February.

The finance Ministry said that with more than 110 invitees representing 7 stakeholder groups participated in all 8 meetings till date.

Also, she gave assurance to them on their suggestions to be considered carefully while preparing the Budget 2023-24.

Pic credits: AFP

FM Meets State Finance Ministers For Their Suggestions On Budget 23-24

, , , , , , ,

The details of the meeting are yet not made public. In order to prepare the annual Budget for the upcoming financial year 2023-24 the formal exercise began on 10 October

Union Finance Minister Nirmala Sitharaman chaired a pre-Budget meeting with the finance ministers of all States and Union Territories to consider their inputs and suggestions for the Budget 2023-24.

The meeting took place at the national capital, on 25 November.

Apart from Sitharaman and state/union territories finance ministers, Union MoS for Finance Pankaj Chaudhary and Bhagwat Karad, Chief Economic Advisor Anantha Nageswaran and secretaries from various arms of union finance ministry and others attended the meeting.

The details of the meeting are yet not made public.

As of now, Sitharaman has chaired various pre-budget consultations group of experts and industry leaders, including the agricultural and food processing industry experts.

The first meeting was held on 21 November.

In order to prepare the annual Budget for the upcoming financial year 2023-24 the formal exercise began on 10 October.

The Budget for 2023-24 is expected to be tabled on 1 February.

Notably, Modi 2.0 government will present last full Budget before the Lok Sabha elections to be held in April-May of 2024.

Credits: AFP

FM Nirmala Sitharaman To Begin Pre-Budget Meetings From 21 Nov

, , , , , , , ,

Following the schedule, she will also meet the representatives of services sector and trade bodies, along with the experts from social sector, including health, education, water and sanitation, on 24 November. Also, critical issues related to high inflation will have to be addressed in the budget for the next year

The finance minister Nirmala Sitharaman is ready to begin the customary pre-budget meetings starting from 21 November. This time the discussion will be focusing on issues concerning climate change and infrastructure.

The meetings will take place virtually by Sitharaman on 21 November in three groups along with industry chambers, infrastructure sector and environment experts looking at suggestions for the 2023-24 Budget from the stakeholders.

On 22 November, the minister will meet agriculture and agro-processing industry, representatives from financial sector and capital markets.

Following the schedule, she will also meet the representatives of services sector and trade bodies, along with the experts from social sector, including health, education, water and sanitation, on 24 November.

The trade union representatives and economists will hold the pre-budget meetings scheduled on 28 November.

Suggestions from the participants will be taken on the 2023-24 Budget which will further be presented in Parliament by the finance minister on 1 February.

The climate change would be would be discussed with high priority in 2023-24 Budget making. This is due to India’s pledged towards becoming net zero emitter of carbon by 2070, reported a media house.

Also, critical issues related to high inflation will have to be addressed in the budget for the next year. This shall boost demand, job creation and putt the economy on a sustained 8 per cent plus growth path.

The Modi led government and Sitharaman will be discussing the fifth budget and the last full budget prior to the general elections slated in April-May 2024.

nirmala sitharaman

CAs Must Ensure Adherence To Fair Practices: FM Sitharaman

, , , , ,

The finance minister highlighted that another important objective is developing sustainability reporting standards. According to her accountants must adhere to fair and transparent practices

The finance minister of India, Nirmala Sitharaman said that chartered accountants must adhere to transparent and fair practices, on 18 November. In order to build trust in financial statements, it is important for them to be independent.

She said that the fundamental requisite for corporate governance according to her is accounts which must reflect transparency, clarity and accountability in a company’s financial affairs.

According to her accountants must adhere to fair and transparent practices. The independence of Chartered Accountants is crucial and significant to develop trust and integrity in their financial statements, she added.

Addressing a virtually at the World Congress of Accountants 2022 event happening at Mumbai, she said that the responsibility of chartered accountants is not only limited to shareholders, however to other stakeholders too which includes financial institutions and the government.

Also, the finance minister highlighted that another important objective is developing sustainability reporting standards. She noted the increasing need for technology adoption ans said that it will make a huge difference in a way in which financial information is gathered, processed, and reported.

Blockchain, artificial intelligence, machine learning, cloud computing and data analytics are all going to enhance accounting. The decision-making will majorly be machine-driven in the future, she said while concluding her address.

nirmala sitharaman

Finance Minister Asks Ministries To Meet Asset Monetisation Targets

, , , , ,

The government aims at raising Rs 1.62 lakh crore from asset monetisation, in the current fiscal year. The ministry of petroleum and natural gas and railways had missed theor targets in last fiscal year

The finance minister of India Nirmala Sitharaman highlighted the progress achieved by ministries and departments on the National Monetisation Pipeline on 14 November. She asked the ministries to pace up with asset monetisation in line with their set targets.

According to a government official, whereas the government will “more or less” achieve the current year’s target, some ministries may not achieve their monetisation goals.

The government aims at raising Rs 1.62 lakh crore from asset monetisation, in the current fiscal year. Reportedly, transactions worth Rs 96,000 crore were completed last fiscal year, surpassing the target of Rs 88,000 crore.

Sitharaman has asked ministries of petroleum and natural gas and railways to rework their strategies and come up with a fresh plan within a week, in order to hasten monetisation, according to the official aware of the review meeting.

The top officials from the finance ministry, Niti Aayog and key infrastructure ministries, attended the meeting.

The centre is initiating preparations for the upcoming union budget which makes the review meeting crucial in the same regards. Achieving the target become critical in order boost more capital expenditure, while sticking to the fiscal path at the same time.

The auctions of mines, road assets and power sector assets has majorly been driven by asset monetisation. The ministry of petroleum and natural gas and railways had missed theor targets in last fiscal year.

kWDj1eg_400x400

Taxpayers Should Check AIS Quarterly, Report Discrepancies: Joint Secy, FinMin

, , , , , , , ,

In last year during November, the income tax department had released a new Annual Information Statement (AIS) on its portal which provides a comprehensive view of taxpayer information with an option to submit feedback. Kamlesh Varshney said that the system that has been developed is a very important one that it promote voluntary compliance without actually scrutinising a taxpayer

The taxpayers must check their annual information statement every quarter and flag any discrepancies in order to help reduce wrongful HRA deductions, said a senior official from finance ministry, on 8 November.

In last year during November, the income tax department had released a new Annual Information Statement (AIS) on its portal which provides a comprehensive view of taxpayer information with an option to submit feedback. The statement includes additional information related to interest, dividend, securities transactions, mutual fund transactions and foreign remittance information. 

Joint secretary in the finance ministry, Kamlesh Varshney said during an event that one should keep on checking the AIS not only filing return but also quarterly. Checking the AIS (report) would ensure if anything wrong is reported so that other person claiming some kind of benefit wrongly is caught.

He said that to ensure voluntary compliance while filing the income tax returns (ITR), AIS has played an important role.

Quoting an example, he said people declare false information to their employer to claim HRA deductions. The AIS shows declarations along with the the person in whose account the rent amount has been credited.

Varshney said that the system that has been developed is a very important one that it promote voluntary compliance without actually scrutinising a taxpayer.

AIS’ objectives include displaying complete information to a taxpayer along with a facility to capture online feedback, promote voluntary compliance and enable seamless pre- filing of return. Its another objective is to “deter noncompliance”, as according to the Income Tax website.

ministry of finance

Finance Ministry Seeks Industry Suggestions On Tax Regime for FY24 Union Budget

, , , , , , ,

The finance ministry may make industry’s demands (backed by justifications) a part of the budget, if it finds a merit in them, said the ministry. The Union Budget for the next fiscal year which will start from April 2023, will probably be presented in the parliament on 1 February 202. The government is working hard to introduce tax incentives, deductions and exemptions meanwhile rationalising the direct tax rates on the other hand

The finance ministry of India kickstarted the stakeholder consultation for the federal budget for the upcoming fiscal year.  It has asked out the industry and trade associations for suggestions about the nation’s direct and indirect taxes.

The finance ministry may make industry’s demands (backed by justifications) a part of the budget, if it finds a merit in them, said the ministry.

The suggestions for tweaks in the duty structure, rates and broadening of tax base on both direct and indirect taxes is required to be submitted by the industry stakeholders by 5 November. The Union Budget for the next fiscal year which will start from April 2023, will probably be presented in the parliament on 1 February 2023. 

The ministry said that the industry must note ‘positive externalities’ coming out of the suggestions. The government is working hard to introduce tax incentives, deductions and exemptions meanwhile rationalising the direct tax rates on the other hand.

In case of indirect taxes, the request against correction of inverted duty structure for any commodity must be supported by value addition at each stage of manufacturing. The minister has also asked industry stakeholders to submit suggestions on easing compliance burden, providing tax certainty and reducing litigation.

nirmala sitharaman

FM Sitharaman Urges For Effective Tax Reporting Regime On Crypto Assets

, , , , , , , , , , , , ,

Highlighting the need to boost the private sector participation, on increasing the sustainable and digital infrastructure investments, she also emphasised on mobilising finance at sub-national level for inclusive and quality infrastructure

Finance Minister Nirmala Sitharaman urged for an effective tax reporting regime and information exchange between jurisdictions on 13 October. This to combat offshore tax evasions for crypto assets.

On the side-lines of the annual meetings of the International Monetary Fund (IMF) and the World Bank, Sitharaman critically noted a number of critical issues, including infrastructure, investments and international taxation. She participated in the G20 Finance Ministers and Central Bank Governors meeting too.

Highlighting the need to boost the private sector participation, on increasing the sustainable and digital infrastructure investments, she also emphasised on mobilising finance at sub-national level for inclusive and quality infrastructure.

Discussions were held, on the progress made on international taxation agenda in this year, during last session of the ongoing G20 meeting.

Addressing on the two-pillar solution, Sitharaman urged for participative engagement of all jurisdictions in negotiations and prioritise capacity building. She further added that international tax rules must be simple and easy to understand, administrable and should generate meaningful revenue in the developing countries.

According to multiple tweets by the Ministry of Finance, the minister also urged for an effective tax reporting regime and information exchange between jurisdictions in order to combat offshore tax evasion for crypto assets.

Load More