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Pre-2016 Startups may Get Breather from Angel Tax Finmin sends proposal to DIPP; tax officials asked not to pursue cases against startups New Delhi : India could shield startups floated prior to 2016 from the socalled angel tax to boost entrepreneurship in the country. The finance ministry has started discussions with the Department of Industrial Policy and Promotion (DIPP) on the certification of genuine startups to help with this. The government has also asked tax officials not to pursue cases against startups.“We had (earlier) said we will recognise startups only after 2016. We have sent a proposal to the DIPP. If DIPP agrees, then we will not make any adjustment for startups set up before 2016,” finance secretary Hasmukh Adhia told No Levy on Startups Recognised by DIPP“Somebody has to examine it if it is a genuine case of valuation... If they are recognised by the DIPP, we will accept,” Adhia said. Introduced by then finance minister Pranab Mukherjee in 2012, the angel t

DoT to float new draft telecom policy within a week The Department of Telecom (DoT) is likely to float draft of the National Telecom Policy 2018 within a week for public comments, an official source said. "The draft (of the NTP 2018) is very likely to be issued within a week," the source, who is closely associated with policy draft formulation, told PTI.The NTP 2018 is expected to present a growth road map of the Indian telecom sector, which is reeling under a severe financial stress, for a period of next five years. The Economic Survey 2017-18 tabled in Parliament last week noted the telecom sector is going through stress due to a huge debt pile, tariff war and irrational spectrum costs and called for policy measures to minimise over-bidding of assets during auctions. The survey said auctions in case of spectrum as also coal and renewables led to transparency and avoided rent-seeking, although they "may have led to a winners' curse, whereby firms overbid f

NSE's revenues from its frozen co-location facility climb to Rs 9.45 bn The National Stock Exchange of India’s (NSE’s) revenues from its co-location facility, frozen into a separate bank account, have climbed to Rs 9.45 billion. The exchange will not be able to access these funds till the time an investigation into wrongdoings at its co-location facility are completed. In September 2016, market regulator Securities and Exchange Board of India (Sebi) directed the NSE to park revenue generated from its co-location business into a separate bank account till the matter was settled. More than a fourth of the NSE’s revenues are garnered from the co-location business. “Till date, an amount of Rs 9.45 billion was transferred to a separate bank account and the same along with income earned thereon remains invested in mutual funds,” the stock exchange said in a filing for its December quarter results. “The management is of the view that pending conclusion of this matter with the Se

Centre cuts PSUs’ budgetary support Enterprises expected to finance capital spending of Rs 4.78 trillion in 2018-19 The Centre has cut budgetary support for capital spending by public sector enterprises (PSEs) to Rs 1.76 trillion in 2018-19, from Rs 1.82 trillion in 2017-18 (Revised Estimates or RE) However, if recapitalisation to public sector banks is excluded, the picture is not too dismal.Through internal resources, public sector units (PSUs) are expected to finance capital spending of Rs 4.78 trillion in 2018-19, marginally higher than Rs 4.76 trillion in 2017-18. The capital outlay of PSEs has been pegged at Rs 6.54 trillion in 2018-19, marginally lower than Rs 6.59 trillion in 2017-18 (RE) Capital spending by PSEs will fall to 3.5 per cent of the gross domestic product (GDP) in 2018-19 from 3.9 per cent in 2017-18. With the Centre’s capital expenditure expected to decline marginally from 1.63 per cent of the GDP in 2017-18 (RE) to 1.60 per cent in 201819 — it was 1.85

Sebi board to meet on 10 February; Jaitley to brief members on budget The Securities and Exchange Board of India (Sebi) board is likely to discuss on 10 February various budget proposals related to the securities market and the Uday Kotak panel recommendations on corporate governance, among other issues, a senior official said. Finance minister Arun Jaitley would be addressing the market regulator’s board as part of customary practice after presentation of Union Budget. Jaitley would also address the Reserve Bank of India (RBI) board on the same day. The Mint, New Delhi,  05th Feburary 2018

RBI seen keeping rates on hold, may flag risks of higher MSP on inflation The Reserve Bank of India (RBI)’s monetary policy committee (MPC) is likely to keep interest rates unchanged on Wednesday as the risk of inflation breaching the central bank’s 4% target again has heightened, say economists. Of the 15 economists surveyed by Mint, 14 expect the central bank to keep the repo rate—the rate at which the central bank infuses liquidity in the banking system—unchanged at 6%. Only one expects a rate hike of 25 basis points. “We expect MPC to keep rates on hold and strike a hawkish tone. We also expect MPC to highlight upside risks to inflation on higher oil prices and potential of sharper increases in MSP (minimum support price) in fiscal year 2019,” said Anubhuti Sahay, head of South Asia economic research, Standard Chartered Bank. “However, MPC in our view would await some clarity on these, especially amid a nascent economic recovery.” In his 1 February budget speech, finance

Compensation cess causes jump in tax administration expenditure The expenditure on tax administration saw a huge jump to Rs. 777.5 billion in the FY18 Revised Estimates (RE) from just Rs. 126.9 billion in the Budget Estimatge (BE) of that year. Further, it is projected to reach Rs. 1 Trillion in the FY 19 BE. This gave an impression that the government is incurring such a huge cost on tax administration.The finance ministry said expenditure on tax administration includes compnesation cess, which would ultimately got o the states and this was the reason behind such a huge jump. of the Rs. 777.5 billion in RE of FY18, Rs. 613.3 billion is compensation cess. Similarly, Rs. 900 billion of over Rs. 1 trillion is compensation cess in BE of Fy 19. A companestaion Cess of the same amounts were also shown in the receipts of the government. As such, it is just a book entry, Finance Secretary Hasmukh Adhia said. The Business Standard, New Delhi, 03rd February 2018