1. Budget 2019: No 'Angel Tax' Scrutiny If Requisite Declaration Made
In a breather for startups, Finance Minister Nirmala Sitharaman on Friday, 5 July, said that to resolve Angel tax issue, the returns of startups and investors who offer requisite declaration and provide information will not be subject to any kind of scrutiny.
“The issue of establishing identity of investor and source of his funds will be resolved by putting in place a mechanism of verification so that there is no man-to-man interface there. With this, the funds raised by startups will not require any kind of scrutiny from the IT Department,” she said.
The Minister also stated that special administrative arrangements will be made by Central Board of Direct Taxes (CBDT) for pending assessments of startups and redressal of their grievances.
(Source: The Economic Times)
2. Centre Sets Rs 1.05 Trillion Disinvestment Target for Current Fiscal Year
With tax revenue growth remaining tepid, the Centre has relied more on non-tax revenues, including divestment, to reduce fiscal deficit to 3.3 percent of gross domestic product (GDP) in 2019-20.
Finance minister Nirmala Sitharaman, in her maiden budget, increased the divestment target from Rs 90,000 crore to Rs 1.05 trillion for the current fiscal year, focusing on consolidation of public sector undertakings and strategic disinvestment.
Sitharaman said the government will explore options to bring down its stake below 51 percent in certain public sector units. “The government has also decided to modify the existing policy of retaining a 51 percent stake, inclusive of the stake of government-controlled institutions," she said.
3. Videocon Case: NCLT Told to Pass Orders in 3 Weeks
The National Company Law Appellate Tribunal has directed the National Company Law Tribunal to pass orders on consolidating the bankruptcy proceedings of Videocon group companies within three weeks.
The directive came after the State Bank of India claimed it has been waiting for requisite orders to kickstart the process, which has been held up for almost five months, according to a person familiar with the matter. SBI approached the NCLT last year to consolidate the bankruptcy proceedings of 15 Videocon group companies, against which separate petitions had been filed at various benches of the court.
(Source: The Economic Times)
4. Budget 2019 Plans Aircraft Financing, Plane Leasing for Aviation Sector
Prime Minister Narendra Modi’s administration plans to make India a hub for financing aircraft purchases and leasing of planes, as the South Asian nation moves to support local carriers, which are among the biggest customers for Airbus SE and Boeing Co.
“As the world’s third largest domestic aviation market, the time is ripe for India to enter into aircraft financing and leasing activities from Indian shores," Finance Minister Nirmala Sitharaman said in her maiden budget speech. “This is critical to the development of a self-reliant aviation industry, creating aspirational jobs in aviation finance, besides leveraging the business opportunities available in India’s financial Special Economic Zones."
5. Sensex, Nifty Tumble as Union Budget Leaves Investors Unimpressed
Equity benchmark indices Sensex and Nifty tumbled in a volatile trading session on Friday dragged lower by power, IT, oil and gas, metal and energy counters after Union Budget by Finance Minster Nirmala Sitharaman left investors largely unimpressed.
The Budget proposal of raising minimum public shareholding threshold from 25 percent to 35 percent ignited fears of adequate liquidity to absorb the additional float of shares.
Analysts said while higher tax on HNIs and plan for higher public float for listed companies did not go down well with investors, more than presence of negative news it is the absence of big positives that seems to have made the market turn southward, as valuations are high in certain pockets and there are no supportive factors to sustain those prices.
(Source: The Economic Times)
6. Apple Stores Likely to Open Soon as Local Sourcing Norms Eased
In what may come as a welcome respite to Apple, union Finance Minister Nirmala Sitharaman proposed easing up the local sourcing rules in single-brand retail in India in her budget speech.
Apple has been hustling to get a nod from the government for setting up its retail stores in India to boost slumping sales. After about three years, Apple may see an opportunity to pitch its fresh proposal to open the iconic Apple Stores across India.
While giving her speech, the Finance Minister said FDI inflows in India have been “robust” as the global investment into India’s sectors has slid by 13 per cent in 2018 from $1.3 trillion from $1.5 trillion. At large, these lucid norms in local sourcing will attract Apple and other smartphone companies to grow their offline presence by opening wholly-owned stores.
(Source: Financial Express)
7. Govt Hands Over Housing Finance Companies to RBI From NHB
The government has taken away the powers of the National Housing Bank (NHB) to regulate housing finance companies (HFCs) and handed them to the Reserve Bank of India (RBI).
The Reserve Bank of India (RBI) Act will be amended to give the RBI powers to regulate the HFC sector.
NHB was part of the RBI till April this year when the government decided to take it over.
(Source: Business Standard)
8. Mindtree Chairman, Vice Chairman, Ceo Exit Days After L&T Takes Control
Within days of L&T gaining control of Mindtree, the IT firm on Friday, 5 July, said its Chief Executive Officer Rostow Ravanan, Chairman Krishnakumar Natarajan and Vice Chairman Parthasarathy NS have quit.
Over the last few weeks, there were speculations that Ravanan was on his way out. Reports had suggested that the construction major had asked Ravanan to step down as the new owners were preparing the grounds for a top management overhaul at the Bengaluru-based company.
9. Tata JLR Unveils Major Electric Car Investment Plans for UK
Tata Motors owned Jaguar Land Rover (JLR) on Friday, 5 July, unveiled major investment plans for the production of its new electric car models in the UK, safeguarding thousand of jobs in post-Brexit Britain.
Britain's largest automotive manufacturer said its new range of electrified vehicles will be built at its Castle Bromwich plant in the West Midlands region of England.
"We are co-locating our electric vehicle manufacture, Electronic Drive Units and battery assembly to create a powerhouse of electrification in the Midlands," said Prof Ralf Speth, Chief Executive Officer of Jaguar Land Rover.
"The future of mobility is electric and, as a visionary British company, we are committed to making our next generation of zero-emission vehicles in the UK," he said.
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