AMN / NEW DELHI
Government has increased FDI limit from 49 to 74 per cent in Insurance Companies and allowed foreign ownership and control with safeguards. Under the new structure, the majority of Directors on the Board and key management persons would be resident Indians, with at least 50% of Directors being Independent Directors, and specified percentage of profits being retained as general reserve.
Government has proposed infusing 20 thousand crore rupees to re-capitalized Public Sector Banks.
To tackle the stressed asset of Public Sector Banks, an Asset Reconstruction Company and Asset Management Company will be set up to consolidate and take over the existing stressed debt and then manage and dispose of the assets to Alternate Investment Funds.
Government plans to complete strategic disinvestment in BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited among others in the next fiscal. Other than IDBI Bank, the government will also take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22. A Bill in this regard will be introduced in the Budget session of Parliament itself.
To fast forward its disinvestment policy, the Government has asked NITI Aayog to work out on the next list of Central Public Sector companies that would be taken up for strategic disinvestment.
A Hydrogen Energy Mission will be launched in 2021-22 for generating hydrogen from green power sources as announced by the Prime Minister Narendra Modi in November 2020.
Seven projects worth more than 2,000 crores will be offered by the Major Ports on Public Private Partnership mode in Financial Year 21-22 to move major ports from managing their operational services on their own to a model where a private partner will manage it for them.
To generate an additional 1.5 lakh jobs, efforts will be made to bring more ships to India from Europe and Japan for recycling with a capacity of around 4.5 Million Light Displacement Tonne (LDT) which will be doubled by 2024.
An additional deduction of interest amounting to 1.5 lakh for loan taken to purchase an affordable house is to be extended for one more year.
Time-limit for re-opening of assessment of income tax proposed to be reduced to 3 years from the present 6 years.
To further reduce litigation for small taxpayers, it is proposed to constitute a Dispute Resolution Committee which will be faceless. Anyone with a taxable income up to 50 lakh and disputed income up to 10 lakh shall be eligible to approach the Committee.
A National Faceless Income Tax Appellate Tribunal Centre to be set up. Communication between the Tribunal and the appellant shall be electronic and personal hearing if needed, it is proposed to be done through video-conferencing.
Rules for removing hardship of double taxation of NRIs will be notified. To incentivise digital transactions and reduce compliance burden, it is proposed to increase the limit for tax audit from 5 crore to 10 crore.
In order to incentivise start-ups in the country, the Government has extended the eligibility for claiming tax holiday for start-ups by one more year – till 31st of March, 2022. Government has also extended the capital gains exemption for investment in start-ups by one more year – till 31stof March, 2022 to incentivise funding of the start-ups.