For administering the country, the government generates money through different channels. India follows a system of charging taxes on the income earned by individuals. <keyword id="6354751" type="UNKNOWN" weightage="20" keywordseo="income-tax">Income tax</keyword> is one of the chief revenue sources of a country’s governance. Hence, income tax is the most common topic of every citizen in the country. Here we discuss how income tax is calculated in India. Income tax slabs To know how income tax is calculated in India, you must first know about the income tax slabs. Income Tax Slab is the kind of parameter applied by the Income Tax Department in India to decide how taxes are levied to different individuals and non-individuals. Year on year, the tax slab whether revised or continued is announced as part of the Union Budget. Tax Slabs Overview for individuals (male and female) <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income Range </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rate of Tax </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income up to 2,50,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Nil. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 2,50,001 to Rs. 5,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">5% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 5,00,001 to Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 12,500 + 20% of the income that exceeds Rs. 500,000. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Above Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 1,12,500 + 30% of Income that exceeds Rs. 10,00,000. </td></tr></tbody></table> Tax Slabs Overview for senior citizens in the age group 60 to 80 <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income Range </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rate of Tax </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income up to 3,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Nil. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 3,00,001 to Rs. 5,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">5% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 5,00,001 to Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 10,000 + 20% of the income that exceeds Rs. 500,000. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Above Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 1,10,000 + 30% of Income that exceeds Rs. 10,00,000. </td></tr></tbody></table> Tax Slabs Overview for senior citizens in the age group above 80 <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income Range </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rate of Tax </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income up to 5,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Nil. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 5,00,001 to Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">20% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Above Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 1,00,000 + 30% of Income that exceeds Rs. 10,00,000. </td></tr></tbody></table> New changes The Union Budget 2019 – 20 has announced a revision that allows a full tax rebate for income that is up to Rs. 5 lacs under Section 87 A. This change lifts up the existing tax slab. Calculation of income tax Taxable income of individuals is worked out based on several factors including tax slab of the individual or entity, the different kinds of deductions applicable to the concerned tax payer, the taxes already paid including advance tax and tax deducted at source (TDS). How to know the income tax payable? In the first slab, know your income tax slab. Work out all the deductions applicable in your case. For example, deduction can be claimed for investment in life insurance for premiums up to Rs. 1.5 lacs. Under Section 80C, you can also claim deduction for investments in PPF (Public Provident Fund), NSC (National Savings Certificate) and other instruments like home loan principal repayment. Section 80 D enables a deduction for investments in health insurance plans up to Rs. 25,000 for the individual and his or her family and up to Rs. 25,000 for parents aged above 60 years. Section 24 enables deduction on home loan interest up to Rs. 2 lac. These deductions can help lower the overall tax outgo. Filing <keyword id="6374875" type="UNKNOWN" weightage="20" keywordseo="itr">ITR</keyword> For individuals making less than Rs. 2.5 lacs per annum, it is not compulsory to file income tax returns. However, if you have a PAN number, experts advise you to file income tax returns even when you have an income below the taxable threshold. In this case, you can file a Nil return.

How Income Tax Is Calculated

<ul><li><keyword id="6355455" type="COMPANY" weightage="20" keywordseo="indian-railways">Indian Railways</keyword> is aggressively conducting recruitment drives, as nearly 300,000 positions lie vacant. </li><li>Exams will be held for another 1,42,577 posts in 2019-20, the Railway Ministry informed. </li><li>The Railways hired over 460,000 employees in the last ten years.</li></ul>Indian Railways is aggressively conducting recruitment drives, as nearly <a href="https://www.livemint.com/news/india/railways-recruiting-people-for-nearly-3-lakh-vacancies-govt-1562748963696.html">300,000 positions</a> lay vacant, the ministry revealed. The new entrants will be hired by the <keyword id="4164109" type="PERSON" weightage="20" keywordseo="Railways-recruitment">Railways Recruitment</keyword> Board(RRB) and Railways Recruitment Cell (RRC) of Railways. It had hired over 460,000 employees over a period of ten years, <keyword id="6355222" type="PERSON" weightage="20" keywordseo="piyush-goyal">Piyush Goyal</keyword>, Railways Minister<a href="https://economictimes.indiatimes.com/jobs/railways-recruiting-people-for-over-2-94-lakh-vacancies-govt/articleshow/70156445.cms?from=mdr"> told</a> ET. In 1991, the total strength of employees stood at 165 billion, which has decreased to 124 billion, as on June 2019, he said. However, employee shortages haven’t impacted its quality of services. With automated systems implemented across industries largely, the quality of service has improved over time — which reduced the dependence on human workforce. "Therefore, it is not correct to correlate the quality of service with employee strength," Mint reported citing the Railway Minister. The recruitment board is conducting examinations to fill these positions. According to the government data, examinations for 1,51,843 posts have taken place and will be held for another 1,42,577 posts in 2019-20 — which includes reserved categories and economically weaker sections. The ministry recently <a href="https://www.hindustantimes.com/education/railway-recruitment-23-000-job-vacancies-10-quota-for-ews-in-railways-in-next-2-years/story-HAgmRuI9Uljr31Ugth8JKK.html">announced </a>that Railways will be the first to implement 10% EWS quota — providing 23,000 jobs for Scheduled Castes (SCs) and Scheduled Tribes (STs) over the next two years, Hindustan Times reported. See also: <a href="https://www.businessinsider.in/indian-railways-introduce-buzzing-bees-to-keep-elephants-away-from-train-tracks/articleshow/70169025.cms">Indian Railways introduce ‘buzzing bees’ to keep elephants away from train tracks</a> <a href="https://www.businessinsider.in/union-railway-budget-2019-public-private-partnership-ppp-proposal-updates-and-news-nirmala-sitharaman/articleshow/70085380.cms">Union Budget 2019: Indian Railways has been opened up to private partnerships for faster development</a> <a href="https://www.businessinsider.in/6000-teaching-vacancies-in-iits-and-nits/articleshow/70168945.cms">IITs, NITs are facing a dearth of teachers as 6,000 posts lie empty</a>

Indian Railways is on an aggressive recruitment drive to hire 300,000

<ul><li>As much as 7.8% of all employable youth in urban areas are jobless while the same number is at 5.3% in rural areas. </li><li>The Gross Domestic Product (GDP) for the final quarter of 2018-19, grew at a snail’s pace of 5.8% </li><li>The growth rate of core sector plummeted to 2.6% in April which is worrisome as it had recorded a growth of 4.9%, just a month back</li></ul> It is the best of times for PM <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>, as he trounced his opponents this election. The worst of times are yet to come, or they have come but have not been perceived as seriously amid the jubilation. Weeks before the Union Budget, the newly-elected Finance Minister Nirmala Sitharaman might have tojump many hoops to strike a balance between sky-high promises of the manifesto with the actual state of the economy. Not faulty numbers First of all, India is facing an unemployment crisis. The latest set of employment data from Ministry of Statistics and Program Implementation confirms earlier reports that unemployment is at 6.1%, at a 45 <a href="https://www.indiatoday.in/business/story/india-unemployment-rate-6-1-per-cent-45-year-high-nsso-report-1539580-2019-05-31">year old high</a>. As per the report, 7.8% of all employable youth in urban areas are jobless while the same number is at 5.3% in rural areas. In a country that boasts of having one of the world’s youngest population, unemployment can turn dangerous. However, this number is also controversial as similar data from National Sample Survey Office (NSSO) for 2017-18 was termed ‘faulty’ by the government, earlier this year. A stimulus package? Few had believed that the NSSO unemployment data was wrong since many sectors have been showing muted performance. The growth rate of core sectors plummeted to 2.6% in April. That is worrisome as it had recorded a growth of 4.9% just a month ago. “Clearly the economy is slowing down and these numbers would be a cause of worry for the new central government,” said Dr. Sunil Kumar Sinha, Principal Economist at India Ratings &amp; Research (Fitch Group). The Gross Domestic Product (GDP) for the final quarter of 2018-19 grew at a snail’s pace of 5.8%, which is lowest in 20 quarters, since June 2014, right after Modi came into power for the first time. “The growth during the year has been dragged down by the muted performance by agriculture, mining and quarrying, electricity and gas, trade and hotels and public administration while the growth was supported by uptick in the manufacturing activities,” said a report by CARE Ratings. Light at the tunnel’s end The manufacturing sector however is showing an uptick. The latest set of numbers from Nikkei India Manufacturing Purchasing Managers’ Index went up to 52.7 in May from 51.8 in April. This is one of the rare good news that the economy has seen, in the last few months. In April however eight core industries, with nearly 40% weightage in the index of industrial production (IIP), moderated to a 2-month low. “The moderation has been on account of subdued growth in cement, coal and steel segment, sustained contraction for 17 successive months in crude oil production and contraction recorded in fertilizers segment,” said a report by CARE Ratings. No legroom Though the Finance Secretary Subhash Chandra Garg sees this as a turnaround in demand and sure signs of economic growth, experts believe that a lot more has to be done. 
	
	
	<div type="twitter" handle="SecretaryDEA" handlename="Subhash Chandra Garg" image="http://pbs.twimg.com/profile_images/893364676943241217/sYceriFF_normal.jpg" favoritecount="83" retweetcount="32" status="Turn around in demand and financing conditions beginning very well. PMI manufacturing is at 52.7. Crude is moving t… https://t.co/JTIbhPgFHG" createdat="1559552118000" id="1135469999231868928"></div>







 To be able to overcome the many large challenges, and go through with the expansion of MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) programme as promised in the manifesto, the government will have to spend money -- which too sounds like a long shot. The fiscal deficit--which is the difference between how much the government spends and earns -- came in at 3.39% of the GDP. The government could reach its target by lowering its spending. Their fiscal position has been bad due to lower tax collections. The government tax receipts are 5% lower than what they were last year. “With new union government in place India Ratings believes much of the future performance of these core infrastructure industries would depend on what is there in store for them in the full budget which is expected to be presented in the month of July 2019,” said Sinha.

There is a lot of bad news that Modi has to budget for this year

<ul><li>Prime Minister meets top party leaders. finance ministry bureaucrats. </li><li>Government plans to make India a $5-trillion economy by 2024. </li><li>FM Nirmala Sitharaman to meet PM on Thursday, to discuss GDP growth. </li></ul>Prime Minister Narendra Modi is busy brainstorming with senior party leaders and top bureaucrats, ahead of Union <keyword id="6147670" type="UNKNOWN" weightage="20" keywordseo="budget-2019">Budget 2019</keyword>. On Tuesday, PM held a meeting with top officials in finance and other key ministries, to finalise its priorities. The PM is set to interact with economists, bankers and sectoral experts through the week to gain insights on pressing issues in agriculture, reform and effective implementation of signature schemes and projects. A five-year plan for the government to make India a $5-trillion economy by 2024, was cleared in Tuesday’s meeting, as per <a href="https://www.business-standard.com/article/budget-2019/pm-narendra-modi-starts-pre-budget-meets-to-brainstorm-on-economy-119061900058_1.html">Business Standard</a>. The meeting was attended by all the five secretaries of the finance ministry besides top officials across ministries, along with government think tank NITI Aayog. Pet Projects The course of PM’s pet projects like doubling farmers’ income by 2022, PM-Kisan, Pradhan Mantri Awas Yojana, Piped Water For All, and Electricity For All were also discussed, as reported by <a href="https://www.livemint.com/budget/news/pm-modi-brainstorms-with-key-secretaries-to-finalize-100-day-agenda-1560869743468.html">The Quint</a>. Yet another meeting is to be held on Thursday. It will be attended by <a href="https://www.business-standard.com/topic/finance-minister">finance minister</a> Nirmala Sitharaman, finance secretary Subhash Chandra Garg, revenue secretary Ajay Bhushan Pandey, along with chief economic advisor Krishnamurthy Subramanian, along with others. The focal point of all the meetings is to draw a road map for reform across departments, including ease of doing business<a href="https://www.business-standard.com/topic/economic-growth">.</a> Stepping up government revenues while carrying out reform <a href="https://www.businessinsider.in/budget-2019-cues-how-indian-economy-can-grow-at-10/articleshow/69767988.cms">to push GDP growth</a>, which slipped to a five-year low of 6.8% in 2018-19, is also a key discussion point, sources <a href="https://www.livemint.com/budget/news/pm-modi-brainstorms-with-key-secretaries-to-finalize-100-day-agenda-1560869743468.html">told Quint</a>. The PM will also meet industry leaders including heads of state-owned banks on Friday. He will hold discussions with economists and policy experts on Saturday. See Also: <a href="https://www.businessinsider.in/union-budget-and-triple-talaq-are-among-key-bills-as-the-first-session-of-indias-new-parliament-rolls-on/articleshow/69821460.cms">Union Budget and Triple Talaq are among key bills as the first session of India's new Parliament rolls on</a> <a href="https://www.businessinsider.in/there-is-a-lot-of-bad-news-that-modi-has-to-budget-for-this-year/articleshow/69635372.cms">There is a lot of bad news that Modi has to budget for this year</a> <a href="https://www.businessinsider.in/modi-government-sets-up-two-cabinet-panels-to-check-falling-gdp-employment/articleshow/69670523.cms">Modi government sets up two cabinet panels to check falling GDP, employment</a>

Prime Minister Narendra Modi is asking everyone for budget ideas

(Image source: Reuters) <ul><li>The government has formed a task force led by Akhilesh Ranjan, the head of the Central Board of Direct Taxes, to review the <keyword id="6354751" type="UNKNOWN" weightage="20" keywordseo="income-tax">Income Tax</keyword> Act of 1961. </li><li>The goal of the taskforce, according to Ranjan, is to make India’s income tax law “more comprehensible” by removing extraneous provisions and ambiguities and simplifying the language. </li><li>The Income Tax Department has received 60.8 million <keyword id="45697" type="COMPANY" weightage="20" keywordseo="Direct-Tax">direct tax</keyword> returns in the year so far, which is 50% more than what was received at the same time last year.</li></ul>Last week, it came to light that the Modi administration had <a href="https://www.livemint.com/Politics/zHLowfSjq7NIZJwYlvrLGP/Panel-to-overhaul-simplify-Direct-Tax-laws-to-submit-report.html?utm_source=scroll&amp;utm_medium=referral&amp;utm_campaign=scroll">commenced a plan</a> to revise India’s income tax laws by instituting a task force led by Akhilesh Ranjan, the head of the Central Board of Direct Taxes, to review the Income Tax Act of 1961. At the time, buzz circulated that the move would entail a change in tax rates and possibly, a reduction in corporate taxes. Speaking at a conference yesterday, Ranjan <a href="https://indianexpress.com/article/business/redrafting-income-tax-law-direct-tax-task-force-to-focus-on-simplification-not-rate-changes-5478802/">explained</a> that the goal of the taskforce was to make India’s income tax laws “more comprehensible” by removing extraneous provisions and ambiguities and simplifying the language. He said that the mandate of the taskforce does not include changes to tax rates or new taxation policies and that the end product would be a cleaner, clearer income tax law. In doing so, he dispelled speculation that the new tax law would entail higher rates for top earners and relief for low earners. The news comes as the government’s direct tax submissions are surging. The Income Tax Department has received <a href="http://www.ptinews.com/news/10220197_ITR-filing-up-50--so-far-this-year--CBDT-chairman.html">60.8 million</a> returns in the year so far, which is 50% more than what was received at the same time last year, according to the Press Trust of India. The taskforce is expected to submitted its redrafted version of the tax law by the end of February 2019. It will likely be an important part of the Modi government’s platform as campaigning for general elections gets underway. Given the complexity of direct tax laws, however, it will be while before revisions to the existing legislation are rubber-stamped. In addition to a simpler income tax law, the <keyword id="128665" type="ORGANIZATION" weightage="20" keywordseo="CBDT">CBDT</keyword> is working on a plan to provide <a href="https://www.business-standard.com/article/economy-policy/soon-filing-income-tax-returns-may-get-easier-with-pre-filled-forms-118120500064_1.html">pre-filled forms </a>to people filing their taxes. Under the proposal, officials in the Income Tax Department will use data from previous forms or data available from companies and banks as they deduct tax at source to achieve this. This will make the process of filing returns much faster. Ranjan also shot down the possibility of a reduction in corporate taxation rates, citing the negative implication of a hit to government revenues. He did however, say that a reduction would only make sense once stronger compliance protocols and measures to prevent tax evasion by corporations were implemented and the tax base was widened. In his Budget speech for 2015-16, Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> had promised a reduction in the corporate taxation rate from 30% to 25% within four years. However, after presenting the Union Budget earlier this year, in February, Jaitley explained that this would only happen once tax exemptions and concessions given to certain industries <a href="https://economictimes.indiatimes.com/news/economy/policy/corporate-tax-to-come-down-to-25-once-exemptions-end-says-arun-jaitley/articleshow/62793672.cms">were done away with</a>. SEE ALSO: <a href="https://www.businessinsider.in/indias-plan-to-get-more-people-to-pay-taxes-is-working-and-now-its-cracking-down-even-harder-on-assets-stashed-abroad/articleshow/66328035.cms">India's plan to get more people to pay taxes is working — and now its cracking down even harder on assets stashed abroad</a> <a href="https://www.businessinsider.in/indias-income-tax-officials-may-penalise-restaurants-who-fail-to-disclose-service-charge-to-staff/articleshow/66770286.cms">India’s income tax officials may penalise restaurants who fail to disclose service charge to staff</a>

The Indian government has instituted a panel to make the country’s 57-year old income tax law ‘more comprehensible’

<ul><li>The <keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> has ordered large companies to raise at least 25% of their long-term debt through the sale of commercial paper in a bid to diversify the bond market, which is dominated by the sale of government bonds. </li><li>The new law, effective starting 1 April next year, was originally outlined by Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> when he presented the government’s Union Budget in February 2018. </li><li>Not only will the law boost the number of <keyword id="108926" type="PERSON" weightage="20" keywordseo="Corporate-bond">corporate bond</keyword> issuances but it will also reduce the reliance of large companies on Indian banks, which have become more cautious about lending after the build-up of non-performing loans. </li></ul>The Securities and Exchange Board of India (SEBI) just released <a href="https://www.sebi.gov.in/legal/circulars/nov-2018/fund-raising-by-issuance-of-debt-securities-by-large-entities_41071.html">a circular </a>with significant implications for India’s bond market. The national securities regulator has ordered “large” or publicly-listed companies to raise at least 25% of their long-term debt through the sale of commercial paper in a bid to diversify the bond market, which is dominated by the sale of government bonds. The new law, effective starting 1 April next year, follows a push from India’s finance ministry. It was originally outlined by Finance Minister Arun Jaitley when he presented the government’s Union Budget in February 2018. The rule also has a punitive component as the SEBI intends to fine companies 0.2% of the shortfall in borrowing in the event of non-compliance. To avoid the fine, companies will have to submit a formal explanation to the stock exchange it is listed on, detailing the reasons for the shortfall. For the purposes of this rule, large companies are defined as entities with outstanding long-term debts of more than ₹1 billion and a credit rating of ‘AA’ or above. The credit rating clause is particularly important as companies that are having a tough time servicing their existing debt obligations or have seen their credit profile deteriorate will be excluded from the requirement. Even scheduled commercial banks are exempt from the law. The law could eventually be applied to companies with lower ratings. However, by including the ‘AA’ credit rating requirement, SEBI is lowering the risk of defaults on corporate bonds. It also ensures that there will be adequate demand for commercial paper. The development of India’s bond market has been a priority for India’s government for a while. Not only does the law reduce the reliance of large companies on Indian banks, which have become more cautious about lending owing to a build-up in non-performing loans, but it will also enable the long-term financing of critical projects in the infrastructure sector amid the ongoing liquidity crisis. As a result, banks will be tapped less for long-term funds and more for short-term working capital loans, which are deemed as safer. SEE ALSO: <a href="https://www.businessinsider.in/indias-securities-regulator-is-forcing-rating-agencies-to-comply-with-stricter-assessment-norms-to-prevent-a-repeat-of-the-ilfs-crisis/articleshow/66616962.cms">India’s securities regulator is forcing rating agencies to comply with stricter assessment norms to prevent a repeat of the IL&amp;FS crisis</a> <a href="https://www.businessinsider.in/indias-market-regulator-has-made-the-ipo-process-easier-for-companies/articleshow/64695655.cms">India’s market regulator has made the IPO process easier for companies</a> <a href="https://www.businessinsider.in/indias-securities-regulator-has-hurt-smaller-companies-with-its-recently-implemented-mutual-fund-rules/articleshow/65497444.cms">India’s securities regulator has hurt smaller companies with its recently-implemented mutual fund rules</a>

India’s securities regulator wants to develop India’s corporate bond market — so it has ordered large companies to raise at least 25% of their long-term debt from bond sales

<ul><li><keyword id="7832818" type="UNKNOWN" weightage="20" keywordseo="new-space-india-limited">New Space India Limited</keyword> (NSIL) will be the <keyword id="116095" type="ORGANIZATION" weightage="20" keywordseo="Indian-Space-Research-Organisation">Indian Space Research Organisation</keyword>’s (ISRO) new commercial arm.</li><li>During the <keyword id="6200577" type="UNKNOWN" weightage="20" keywordseo="union-budget-2019">Union Budget 2019</keyword>, India’s finance minister — Nirmala Sitharaman — announced that NSIL will aid ISRO to commercialise its space products like launch vehicles and the transfer of technology.</li><li>The country is already processing its ‘Space Activities Bill’ to align its liability in outer space with international standards.</li></ul> The Indian government has been pushing to become a space power with testing its <a href="https://www.businessinsider.in/nasa-comments-on-mission-shakti-impacts-mission-ganganyaan/articleshow/68682092.cms">anti-satellite weapon</a>, planning a manned mission — <a href="https://www.businessinsider.in/isro-pads-up-to-make-indias-manned-mission-into-space-a-reality/articleshow/64887057.cms">Ganganyaan</a> — and launching its second mission to moon, <a href="https://www.businessinsider.in/heres-why-chandrayaan-2-is-landmark-moon-mission-for-india/articleshow/69842571.cms">Chandrayaan 2</a>, next month. <a href="https://www.businessinsider.in/finance-minister-nirmala-sitharaman-interesting-facts/articleshow/69940950.cms">Nirmala Sitharam</a>, India’s new finance minister, during the <a href="https://www.businessinsider.in/budget">Union Budget 2019</a> just announced a new commercial arm of the Indian Space Research Organisation (<a href="https://www.businessinsider.in/searchresult.cms?query=isro&amp;sortorder=effectivedate">ISRO</a>) — New Space India Limited (NSIL). She said that “the time has come” for India to harness its space technology commercially. While NSIL will be a public sector enterprise, it will aid ISRO to tackle the benefits of its research and development. Sitharam specified that NSIL will spearhead commercialisation of various space products, including production of launch vehicles, transfer of technology and marketing of space products. India is currently processing its ‘<a href="https://www.businessinsider.in/india-space-activities-bill-addresses-damage-in-outer-space/articleshow/69960212.cms">Space Activities Bill</a>’ as well to align its liability in outer space with international standards. This means that in case any Indian space objects cause damage to another, natural or man-made, object in space, India will have a financial plan in place. See also: <a href="https://www.businessinsider.in/india-space-station-plan-by-isro-plans-k-sivan/articleshow/69775780.cms">India wants to set up its own space station to carry out experiments in microgravity</a> <a href="https://www.businessinsider.in/chandrayaan-2-why-indias-isro-is-going-to-the-moon/articleshow/69893150.cms">Chandrayaan 2 will give India bragging rights even if it doesn’t find water</a> <a href="https://www.businessinsider.in/isro-nasa-just-spotted-a-black-hole-spinning-so-fast-that-it-could-be-making-space-itself-rotate/articleshow/66416605.cms">ISRO, NASA just spotted a black hole spinning so fast that it could be making space itself rotate</a>

India forms a new space company to sell ISRO’s space technology products

Even as Jaitley made some of <a href="http://www.businessinsider.in/Finance-Minister-Arun-Jaitley-makes-biggest-announcements-for-Education-Sector-in-India/articleshow/56906634.cms">the biggest announcements for education sector</a>, India is still far away from breaking the traditional setup that defines our educational institutions. While work seems to be on to skill youngsters under <keyword id="6360789" type="ORGANIZATION" weightage="20" keywordseo="Modi-Government">Modi government</keyword>’s leadership, several other basic issues remain unaddressed. 
 
Post Jaitley’s push to jobs, here are some basic points that India can learn from global counterparts:

2017 Union Budget: What India is yet to learn from Global Education Systems

This is probably the most crucial <keyword id="6360189" type="COMPANY" weightage="100" keywordseo="Union-Budget">Union Budget</keyword> in recent times and also the one that has raised a lot of hopes. In fact, the maiden budget of Prime Minister <keyword id="6354477" type="PERSON" weightage="100" keywordseo="Narendra-Modi">Narendra Modi</keyword>’s government, due to be presented on July 10, can also determine the economic trends in the time to come.

	 

	After Modi-led BJP clinched absolute majority in the Lok Sabha post a highly charged pan-India campaign that helped identify local needs and aspirations, people are now looking forward to the first Union Budget of the new government with a lot of enthusiasm.

	 

	Even during the election campaign, Modi seemed to have a finger on the pulse of each part of the country. His team of advisors and researchers seem to have their ear to the ground when they assess the requirements of each region in India. However, the fact that Modi had strategically spoken the language of the people and played the tune they wanted to hear from a man who could be their leader is quite obvious now.

	 

	While a Capitalist-favouring budget is being anticipated with measures helping entrepreneurial pursuits grow at large, sops for middle and small-scale businesses will also help the economy. Modi’s image as a mass leader who knows what the BPL category needs in order to be freed from a life of frugality and penury will surely help him to accomplish all these and more.

	 

	In the run-up to his Prime Ministerial campaign, Modi often spoke about bolstering the <keyword id="6356076" type="UNKNOWN" weightage="100" keywordseo="indian-economy">Indian economy</keyword> with comprehensive development. The Gujarat Model of development turned into a Bible in most of his speeches while Modi-worshippers and haters brought up issues and debated on whether the size and the diverse economical needs of India would allow Modi to do this dipstick experiment with his mantra of progress and development by way of creating better employment opportunities.

	 

	As an indicator of positive anticipation, rupee rose by a considerable margin and markets have been swinging in favour of the times to come. While supporters are all gung-ho about the upcoming Union Budget, critics are treading cautiously, wondering if Modi overcommitted on his deliverables. Testimony of this lies in the fact that Modi’s government has minced no words on being inclined to allow 100% FDI in the defence sector. But in spite of the government’s promises, prices of petroleum products are rising steadily owing to changes in the international scenario.

	 

	Foreign investors want to see some tax reforms where the atmosphere is created for increased inflow of investments in the country. Business leaders within the country are hopeful that quicker decisions will be made now and red-tapism will be done away with, at least to some extent.

	 

	Political analysts are willing to give this budget a huge margin, hoping that the new government will take baby steps in creating a better manufacturing environment and thus make the future budgets more robust and focused, so that India may witness an impressive growth trajectory.

	 

	Modi has often spoken about devolution of power, with the provision of giving greater decision-making authority to the states – so that they can chalk out their own progress charts. If red-tapism is reduced, would it mean a smooth passage for the new business environment to boom? Answers are awaited on this front.

	 

	Corporate India, which could be the highest benefactor from the changed business ecosystem, would be closely watching what the first budget of the new government would offer. After all, managing the country for the next five years with a positive spin won’t be an easy job for the BJP after they criticised the previous UPA government on several fronts that may get out of hand even for the current government.

	 

	Failed monsoon is another factor that has turned into a bad omen of sorts for the new government. The agrarian sector is the majority segment of India’s economy and has been a huge stakeholder in the Union Budget for years. It would now demand a good deal of subsidies and support pledged by the government. And this will have to be done before going on to the business environment, failing which the BJP government would be upsetting the majority of its baseline voters who have pinned their hopes on it.

	 

	India’s economy grew 4.9% in 2013-14 after slipping to 4.5% in 2012-13. The current year’s financial growth is pitted at a good 5% but looks like a tall order for the time being.

	 

	All previous governments had faced the challenge and the new government, too, will have to take the bull by its horns. Inflation of essential commodities would piggy-ride the below-average monsoon, pushing the prices up by mammoth figures. Therefore, making policy-level changes to control prices must be done by the government in order to sail through the current financial year.

Narendra Modi’s First Union Budget: Will India Get to See ‘Acche Din’ Now?

<ul><li>A group of ministers is reportedly set to discuss a GST on cryptocurrency transactions in the country.</li><li>Decisions on GST are taken by the GST Council.</li><li>India levies 5%, 12%, 18% and 28% GST on goods and services sold in the country.</li></ul>After levying a 30% tax on capital gains from crypto transactions, and the upcoming 1% tax deduction at source (TDS), the Indian government may now be looking to levy its goods and services tax (GST) on such transactions as well. A ministerial panel is expected to meet next week to discuss the tax, according to a <a href="https://www.bloomberg.com/news/articles/2022-06-22/india-panel-said-to-weigh-sales-tax-on-cryptocurrency-next-week">report</a> by Bloomberg. The panel will comprise of finance ministers from central and state governments in the country, also known as the group of ministers (GoM). It will meet on two days, starting from June 28, in the Northern Indian state of Chandigarh. To be sure, the panel won’t be finalizing the tax during the meeting. Under Indian law, ministerial panels like this are formed in order to make recommendations to the GST Council, which takes final calls on this particular tax. For instance, earlier this month, a panel of ministers recommended that a 28% GST should be issued on online fantasy games — a decision that is pending with the council right now. <cmsannotation type="cmsannotation" annotationid="28% GST on crypto transactions?" comment="subhead" text="28% GST on crypto transactions?">28% <keyword id="13140539" type="General" weightage="20" keywordseo="gst-on-crypto" source="Orion">GST on crypto</keyword> transactions?</cmsannotation> India levies 5%, 12%, 18% and 28% GST on goods and services sold by companies in the country. The 28% slab is reserved for goods and services that are considered to be in the luxury segment. India also puts gambling under this slab, and is set to add fantasy gaming to it, raising concerns that crypto may be subject to the same tax. The tax was formulated long ago, but came into effect from 2017, and is meant to bring many of the country’s service-related taxes, including service tax and value added tax (VAT), under one umbrella. An additional tax on the industry, however, could be troublesome for crypto exchanges and traders in the country. In February this year, Finance Minister Nirmala Sitharaman announced a 30% tax on capital gains from cryptocurrency transactions in the country, during the Union Budget announcement. <cmsannotation type="cmsannotation" annotationid="India’s tax authorities clarify on crypto TDS" comment="subhead" text="India’s tax authorities clarify on crypto TDS">India’s tax authorities clarify on crypto TDS</cmsannotation> The country is also expected to levy a 1% TDS on such transactions from July 1, and the Central Board of Direct Taxes (CBDT) <a href="https://www.businessinsider.in/investment/news/india-crypto-tds-clarification-issued-by-[%E2%80%A6]ncies-and-virtual-digital-assets/articleshow/92405606.cms">issued clarifications on</a> the same yesterday. The taxes come at a time when the crypto industry is experiencing an extended bear phase. At the time of writing, top coins like Bitcoin, Ethereum, Cardano and others have dropped by over 70% from their all-time-highs. Additional taxes could affect the industry’s fortunes and impact exchanges’ trading volumes. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/tether-to-launch-tokens-pegged-to-the-british-pound-in-an-expansion-of-its-lineup-of-stablecoins/articleshow/92394242.cms">Tether to launch tokens pegged to the British pound in an expansion of its lineup of stablecoins</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/ftx-boss-sam-bankman-fried-has-bailed-out-struggling-crypto-lender-blockfi-with-a-250-million-loan/articleshow/92392418.cms">FTX boss Sam Bankman-Fried has bailed out struggling crypto lender BlockFi with a $250 million loan</a>

28% GST on crypto transactions? India is reportedly mulling another tax levy next week

New Delhi, Feb 1 (PTI) Hitting out at the Centre over "hollow claims" regarding the agri sector in the Union Budget, Swaraj India president Yogendra Yadav on Tuesday alleged the government took its "revenge" on farmers for leading a successful movement against the now-repealed farm laws. This budget has been marked by silence with regard to farmers as there was no mention of doubling the farmer's income or comments on schemes like the Pradhan Mantri Fasal Bima Yojana (PMFBY), he said. "As far as farmers are concerned, the message of this budget is clear. The government, humiliated by the farmers' movement, is out to take revenge on them. The budget was characterised by silence," Yadav said in a video message on Twitter. He said there is no allocation, declaration or dialogue about farmers in the 2022-23 Union Budget. "Earlier you had beautiful dialogues, talks about farmers in every budget speech, even though there were no allocations. This time, no allocations, no declarations and no dialogues either. "Clearly, the finance minister and the prime minister are very upset with the farmers," Yadav added. "This year, the work to double farmers' income was to be completed. The previous five budgets had long poems about doubling the income of farmers. This year, when that work was to be accounted for, there was complete silence about it. "Since the last two years, we heard about agriculture investment funds of Rs 1 lakh crore. However, just Rs 2,600 crores have been spent," Yadav said. Presenting the Union Budget 2022-23 in Parliament, Union Finance Minister Nirmala Sitharaman said the Centre will promote 'Kisan Drones' for crop assessment, chemical-free natural farming, public-private partnerships for the delivery of digital and high-tech services to farmers across the country during the financial year 2022-23. Taking a jibe at the Centre over the 'Kisan Drones' announcement, Yadav said, "The government said it will gives drones, like they gave farmer rail earlier. So from satellites, we have come down to drones. Hopefully, one day we will come down to the ground as well. Wait for Amrit Kaal or prepare for struggle." On Monday, the Samyukt Kisan Morcha, an umbrella body of farm unions that spearheaded the protests against the Centre's agri laws, threatened to resume its agitation if the government does not fulfil promises made to farmers in December last year. Thousands of farmers from Punjab, Haryana and Uttar Pradesh camped at Delhi's borders for over a year, demanding the repeal of the Centre's three contentious farm laws. They decided to suspend their protest, which began in November 2020, on December 9 last year after the government gave in to their demands and agreed to consider six others, including withdrawal of cases registered against farmers during the agitation, a legal guarantee on MSP and compensation for kin of farmers who died during the course of the protest. PTI VA NIT IJT

Budget: Govt taking 'revenge' on farmers for farm law protests, alleges Yogendra Yadav

Indian billionaires saw their combined fortunes more than double during the COVID-19 pandemic, and their count shot up by 39 percent to 142, while the wealth of the ten richest is enough to fund school and higher education of children in the country for 25 years, a new study showed on Monday. In its annual inequality survey released on the first day of the <keyword id="69007" type="General" weightage="20" keywordseo="world-economic-forum" source="Orion">World Economic Forum</keyword>'s online <keyword id="10572200" type="General" weightage="20" keywordseo="Davos-Agenda-summit" source="Orion">Davos Agenda summit</keyword>, <keyword id="69945" type="General" weightage="20" keywordseo="Oxfam-India" source="Orion">Oxfam India</keyword> further said that an additional one percent tax on the richest 10 percent can provide the country with nearly 17.7 lakh extra oxygen cylinders, while a similar wealth tax on the 98 richest billionaire families would finance <keyword id="6199405" type="General" weightage="20" keywordseo="ayushman-bharat" source="Orion">Ayushman Bharat</keyword>, the world's largest health insurance scheme, for more than seven years. The COVID-19 pandemic saw a huge rush for oxygen cylinders and insurance claims during the second wave last year. On wealth inequality, Oxfam report further said that 142 Indian billionaires collectively own wealth of USD 719 billion (over Rs 53 lakh crore), while the richest 98 of them now have the same wealth as the poorest 55.5 crore people in the bottom 40 per cent (USD 657 billion or nearly Rs 49 lakh crore). If each of the 10 richest Indian billionaires were to spend USD one million daily, it would take them 84 years to exhaust their current wealth, while an annual wealth tax applied to multi-millionaires and billionaires would raise USD 78.3 billion a year that would be enough to increase government health budget by 271 per cent or eliminate households' out-of-pocket health budget and leave some USD 30.5 billion. Noting that COVID-19 may have begun as a health crisis but has become an economic one now, Oxfam said the wealthiest 10 per cent have amassed 45 per cent of the national wealth while the share of the bottom 50 per cent of the population is a mere 6 per cent. It further said that the inadequate governmental expenditure on health, education and social security has gone hand-in-hand with a rise in the privatisation of health and education, thus making a full and secure COVID-19 recovery out of reach for the common citizen. The study urged the government to revisit its primary sources of revenue generation, adopting more progressive methods of taxation and assessing its structural issues that permit such wealth accumulation by the rich. Additionally, the government should also redirect revenue towards health, education and social security, treating them as universal rights and as a means of reducing inequality, thereby avoiding the privatisation model for these sectors, Oxfam said. "We call upon the government to redistribute India's wealth from the super-rich to generate resources for the majority by reintroducing the wealth tax and to generate revenue to invest in the education and health of future generations by imposing a temporary one per cent surcharge on the rich for health and education," it said. On gender inequality, Oxfam India said women accounted for 28 per cent of all job losses and lost two-thirds of their income during the pandemic. It further said India's 2021 budget allocation for the <keyword id="173679" type="General" weightage="20" keywordseo="ministry-of-women-and-child-development" source="Orion">Ministry of Women and Child Development</keyword> is less than half of the total accumulated wealth of the bottom ten of India's billionaire list and just a 2 per cent tax on individuals with an income of over 10 crore could increase the ministry's budget by an astounding 121 per cent. If the wealth of the first 100 billionaires is accumulated, they could fund the National Rural Livelihood Mission scheme, responsible for creating Self Help Groups for women, for the next 365 years. On health inequality, the report said a 4 per cent wealth tax on the 98 richest families in India would finance the Ministry of Health and Family Welfare for more than 2 years and noted that their combined wealth is 41 per cent more than the Union Budget of India. On education inequality, the study said a 1 per cent of tax on wealth of the 98 billionaires in India can fund the total annual expenditure of the department of school education and literacy under the Ministry of Education, while 4 per cent of tax on their wealth can take care of Mid-Day-Meal programme of the country for 17 years or Samagra Sikshya Abhiyan for 6 years. Similarly, a 4 per cent tax on the wealth of the 98 billionaires would be enough to fund the Mission POSHAN 2.0, which includes Anganwadi Services, POSHAN Abhiyan, Scheme for Adolescent Girls, and National Creche Scheme, for 10 years. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/even-after-the-lic-ipo-indian-government-may-be-well-short-of-its-divestment-target/articleshow/88938799.cms">Even after the LIC IPO, Indian government may be well short of its divestment target ⁠— for a third year in a row</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/hdfc-bank-hcl-tech-indian-oil-hero-motocorp-and-other-hot-stocks-on-january-17/slidelist/88941679.cms">HDFC Bank, HCL Tech, Indian Oil, Hero MotoCorp and other hot stocks on January 17</a>

You Searched For "Union budget of India" and got 12 results

How Income Tax Is Calculated

BI India Bureau

Indian Railways is on an aggressive recruitment drive to hire 300,000

Prerna Sindwani

There is a lot of bad news that Modi has to budget for this year

Katya Naidu

Prime Minister Narendra Modi is asking everyone for budget ideas

BI India Bureau

The Indian government has instituted a panel to make the country’s 57-year old income tax law ‘more comprehensible’

Dilsher Dhillon

India’s securities regulator wants to develop India’s corporate bond market — so it has ordered large companies to raise at least 25% of their long-term debt from bond sales

Dilsher Dhillon

India forms a new space company to sell ISRO’s space technology products

Prabhjote Gill

2017 Union Budget: What India is yet to learn from Global Education Systems

Anushree Singh

Narendra Modi’s First Union Budget: Will India Get to See ‘Acche Din’ Now?

Preetam Kaushik

28% GST on crypto transactions? India is reportedly mulling another tax levy next week

BI India Bureau

Budget: Govt taking 'revenge' on farmers for farm law protests, alleges Yogendra Yadav

PTI

Wealth of India's ten richest enough to fund school, higher education of every child for 25 years, reveals Oxfam study

PTI