Plan and Policy

Plan & Policy

Sops to oil, gas producers under new E&P policy

The government is planning a series of incentives, including lower tax liability, cess waiver and higher share of profit petroleum for exploration and production (E&P) companies.

The move is aimed at facing the Herculean challenges of reducing country’s oil and gas dependence by 10 per cent by 2022. It plans to do so by propping up domestic production and enhanced output from local ageing fields.

Limitation period for filing appeals to NCLT not beyond statute: SC

The Supreme Court has held that the limitation period for filing an appeal under provisions of the Companies Act, 2013, cannot be extended beyond what is provided for in the statute.

This is yet another blow to companies seeking to buy time for completing resolution of bad assets under the new bankruptcy law. Section 421(3) of the Companies Act provides that appeals may be filed to the National Company Law Appellate Tribunal (NCLT) within a period of 45 days from the date of the NCLT order.

DDT may compel change in strategy for domestic funds

Domestic fund houses may have to realign their dividend distribution strategy following the introduction of the dividend distribution tax (DDT) on equity-oriented units, as investors may end up paying higher tax.

Banks set to raise lending rates, pre-empting RBI

India’s struggling economy is facing a new challenge: Banks are raising interest rates even though the Reserve bank of India (RBI) is leaving its rates unchanged, as risks such as surging bond yields and more provisioning requirements erode their profit. HDFC Bank, the country’s second-biggest bank by assets, on Wednesday became the latest to raise some rates by 10 basis points. The same day, the Reserve Bank of India kept its policy rate unchanged, to “carefully” nurture economic growth.

Budget: Nothing much for salaried class from tax saving perspective

Salaried class, as the largest individual tax contributor, had high expectations from the Union budget.

The finance minister in Budget 2018 has proposed few changes addressing the needs of the salaried class. The changes proposed are discussed below.

Standard deduction was last available in the tax year 2004-05 and was abolished thereafter.

It is now proposed to reintroduce standard deduction up to Rs 40,000 and this is certainly a we­lcome move.

Divestment road map ready with action plan for FY19: DIPAM secy

The disinvestment process is well on track. The listing of central public sector enterprises (CPSEs), conclusion of strategic divestment and more offerings around the two exchange traded funds (ETFs) with two new instruments for debt and equity would be pushed aggressively to meet the target of Rs 80,000 crore in FY 19, a senior official said on Thursday.

Making PPPs truly work in infra sector

PPP has been the buzzword in the infrastructure sector over the last couple of decades. PPP emerged as a disruptive model of business delivery at a time when governments of the world were struggling to provide access to basic services to citizens on the one hand, and handling severe financial and capacity constraints on the other. With newer ways of delivering public infrastructure, PPPs offered a promise to leverage public money for private investments as also tapping of private sector efficiencies.

Tone balanced, path cautious

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) left the policy rates unchanged at its review meeting on Wednesday as it maintained the repo rate at 6 per cent, the reverse repo at 5.75 per cent, and the marginal standing facility rate at 6.25 per cent.

No immediate relief from runaway fuel prices

Consumers feeling the pinch of rising fuel bill are unlikely to get any respite soon as the Cetre has ruled out any further cut in excise duty on petrol and diesel to cushion the impact of surging crude oil prices.

Since October 4 last year, rates have shot up by close to Rs 5 a litre and diesel by nearly Rs 7.50 per litre to Rs 73.38 and Rs 64.22 a litre, respectively, as on February 7. Retail prices have moved up consistently since October 4, when the government reduced excise duty on them by Rs 2 per litre after a gap of almost two years.

Patel blames taxes for subdued private investment

Kicking off a fresh debate, Reserve Bank governor Urjit Patel on Wednesday said it is the taxation regime, not high interest rates, that is impinging a pick-up in private investment.

Patel’s remark that came within a week of budget proposal to reintroduce long-term capital gain tax on equities deals a severe blow to the Modi government, which is facing all-round criticism for its poor show on employment generation, among others. The proposal has also sent the stock market on a tailspin.

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