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World Bank pegs India´s GDP growth higher than FY18 Advance Estimates

World Bank pegs India´s GDP growth higher than FY18 Advance Estimates The World Bank has pegged India´s economic growth at 6.7 per cent in 201718, slightly higher than 6.5 per cent estimated by the statistics office.For the next financial year, the growth would accelerate to 7.3 per cent, overtaking China´s at 6.4 per cent in 2018, the multilateral agency said. In its 2018 Global Economics Prospect, the World Bank projected India´s economic growth to be 7.5 per cent in the two years each after 201819. In these two years, China´s growth rate will drop to 6.3 and 6.2 per cent, respectively.The Central Statistics Office on Friday came out with Advance Estimates which showed that India´s gross domestic product (GDP) growth would fall to 6.5 per cent in 201718, the lowest in the Modi government´s first four years. But, the World Bank said India was estimated to have grown at 6.7 per cent in 201718, despite initial setbacks from demonetisation and the goods and services tax (GST). Incidentally…

Sebi team working on relaxation for IBC firms

Sebi team working on relaxation for IBC firms Easing of delisting rules and exemption from public shareholding norms among key proposals Market regulator Sebi has formed a team to look into securities law changes, after advent of the Insolvency and Bankruptcy Code. The team will collect inputs from all stakeholders and examine feasible proposals. The final report is expected by March. The Securities and Exchange Board of India (Sebi) has formed a team to look into securities law changes, after advent of the Insolvency and Bankruptcy Code (IBC). The team will collect inputs from stakeholders and examine feasibility of proposals. Sources said doing away with the tedious reverse book building process (RBB) for delisting of IBC companies, exemption from minimum public shareholding (MPS) norms and relaxation from some compliance requirements will be among the recommendations considered. The final report is expected by March. The move comes after Sebi, the markets regulator, received requests fr…

FDI relaxation for real estate brokerages to boost investment: Experts

FDI relaxation for real estate brokerages to boost investment: Experts The government's decision to allow 100% Foreign Direct Investment (FDI) under automatic route in the real-estate broking services is expected to boost the segment as this would enable international brokerage companies to invest in Indian counterparts and also set up their own subsidiaries here. The move, according to experts, would help in formalizing the largely unorganized segment, create more jobs and offer professional services to property buyers."The Cabinet, through an amendment to the FDI policy has clarified that Real Estate broking services would not be classified as Real Estate business. Accordingly, companies undertaking such activities are eligible for 100% FDI under automatic route. This is a welcome clarification especially given the number of startups in this space offering innovative broking products," said Bhairav Dalal, Partner - Real Estate Tax, PwC India. According to ANAROCK Property …

Cash deal limit may be reduced under PMLA

Cash deal limit may be reduced under PMLA Present limit of Rs 1 million to be lowered substantially to curb money laundering The Centre is planning to tighten the anti-money laundering rules pertaining to the “reporting and maintenance of record” by mandating reporting entities to furnish information of entities dealing in cash above a certain amount, a move to curb money laundering. Under the current Prevention of Money Laundering Act (PMLA) rules, such reporting is required for all cash transactions of value exceeding Rs 1 million, all cross-border wire transfers of more than Rs 500,000, and all purchase and sale of immovable property of Rs 5 million or more.

Sources say the cash transaction limit could be reduced to as low as Rs 200,000.The reporting provisions under PMLA impose obligations on reporting entities like banks, financial institutions, and intermediaries such as stockbrokers to verify the identity of clients, maintain records, and furnish information to the financial intell…

Higher direct tax mop up gives govt fiscal relief

Higher direct tax mop up gives govt fiscal relief A mid fiscal worries, the government has got some relief on the direct taxes front, primarily due to lower refunds.Direct tax collection rose 18.2 per cent till December last year.The target of direct tax collection growth was 15.7 per cent for this financial year, according to Budget Estimates. The collection (after refunds) rose to Rs 6.56 trillion till December.This represented 67 per cent of the Budget Estimates of Rs 9.8 trillion.The refunds stood at Rs 1.12 trillion, 23 per cent lower than last year´s Rs 1.38 trillion. The increase would give some leeway to the government, which faces the challenge of reining in its fiscal deficit at 3.2 per cent of gross domestic product (GDP) due to subdued goods and services tax (GST) collection, transfer of surplus by the Reserve Bank of India and telecom spectrum receipts.The government is looking atashortfall of about Rs 500 billion from these heads. The 23 per cent drop in refunds was the reas…

Benefits of AADHAAR unclear: RBI researchers

Benefits of AADHAAR  unclear: RBI researchers January 9 The benefits of Aadhaar, India´s biometrics based unique national identity system —the world´s largest —are unclear and the impact of direct benefit transfers it will be used to deliver to the poor is not studied enough,a  new study published by an arm of the Reserve Bank of India (RBI) has concluded. The paper, ´Biometric and Its Impact in India´, was part of Staff Papers series published in its October 2017 edition.It is written by SAnanth, an adjunct faculty at the Institute for Development and Research in Banking Technology (IDRBT), which was established by the RBI as an autonomous institute. Aadhaar is becoming central to India´s public policy with increasing number of programmes being linked to it.And its scope is constantly increasing.In the seven years following its introduction, 1.12 billion Indians or 88.2 per cent of the population have enrolled for Aadhaar, India Spend reported in March, 2017. Established by Unique Identi…

Direct tax collections rise 18.2% in April-December in breather for govt

Direct tax collections rise 18.2% in April-December in breather for govt Direct tax collections soars 18.2% in the first nine months of FY18 to Rs 6.56 trillion, in a breather for the government struggling to meet the fiscal deficit target Direct tax collections grew by more than 18% in the first nine months of the fiscal year to two-thirds of the full-year target, providing a breather to the government as it struggles to contain the fiscal deficit. Government revenues have been under pressure due to a shortfall in revenue from the goods and services tax (GST), prompting it to announce additional borrowing of Rs 50,000 crore last month to fund spending in key sectors of the economy. Net direct tax collections in April-December rose 18.2% to Rs6.56 trillion, or 67% of the budgeted direct tax collection of Rs9.8 trillion for the full fiscal year ending March, the tax department said in a statement on Tuesday. This means the remaining one-third has to come in the last quarter of 2017-18, whi…