Top 10 biz headlines: Lower tax rates, LIC listing may take a year and more

Nirmala Sitharaman, Budget
FM Nirmala Sitharaman's Budget goal: Lower rates, simple structure

Finance Minister Nirmala Sitharaman on Sunday said the new tax regime proposed in her second Budget would ultimately lead to lower rates with simple structure. Dismissing criticism that the new regime would not be largely beneficial to the assessees, she said, “eventually this should lead to a system where people are taxed at the lowest possible rate and are given a simple system. I am starting a scheme, which will eventually end there. For this, I’m not forcing people.”  Read More

Companies likely to change dividend tax policy after Budget changes

Indian companies may well change the way they return capital to shareholders after alternations in dividend tax policy. An analysis of S&P BSE 500 companies suggests that promoters of Indian private-sector companies in particular could end up paying at least 20 per cent more as additional tax on the same dividend income. They are likely to explore alternative ways, including buybacks, to pay back shareholders, according to experts. Read More

Budget 2020: States' share in central tax pool seen at 50-year low

As the economic slowdown takes a toll on the central government's tax revenues, state governments are being asked to share a bigger burden of the fiscal slippages. The share of states in the central tax pool is set to decline by 13.8 per cent year-on-year (YoY) during fiscal year 2019-20 (FY20). Read More 

Budget 2020: 10% GDP growth a conservative estimate, says Atanu Chakraborty

The GDP growth and tax revenue forecasts announced in the Budget are realistic and conservative, Economic Affairs Secretary Atanu Chakraborty told Arup Roychoudhury in an interview. Chakraborty, who contributed to the finance minister’s speech, said NSSF loans are crucial for Food Corporation of India to initiate a clean-up, and the proposed exchange-traded fund for government securities will be launched in H2FY21. Read More

Coronavirus outbreak: Centre may isolate those back from China recently

The government on Sunday issued a new travel advisory asking people to refrain from travelling to China in view of the coronavirus outbreak in its Hubei province. In its advisory, the health ministry also said anyone with travel history to China since January 15 could be quarantined. India on Sunday reported a second case of coronavirus. The individual, had returned from China recently. Read More

LIC listing may take about a year, says Finance Secretary Rajiv Kumar

The listing of Life Insurance Corporation (LIC) will likely take about one year and the government is not willing to sell more than 10 per cent stake in the insurance behemoth. “We are already in touch with the Department of Investment and Public Asset Management (Dipam) to understand all the processes involved. The LIC Act will have to be amended. It’s not possible to do it in six months and may take around one year,” Finance Secretary Rajiv Kumar said in a media interaction on Sunday. Read More

BSNL, MTNL employees taking VRS need to wait till April for dues

Employees of Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL), who have opted for voluntary retirement scheme (VRS), will have to wait for the next fiscal year (2020-21) to receive their dues. This is because the Union Budget does not have provision for any expenditure towards the programme in the current fiscal year. Read More

Protectionist measures announced in international trade by FM are indeed worrisome 

Arvind Panagariya, writing in the Economic Times, says there is much in Budget 2020 that he likes but says it also has a serious shortcoming in one area.  He discusses "specific provisions in the budget that would serve India well".

An old law that’s ironically driven up onion prices

High onion prices have had people across India worried over the last few months. Basically, bad weather led to a disruption in supply, which sent prices soaring. While that is the real reason for the rise in onion prices, there is a little more to it than that. Mint takes a look, reports Mint. 

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel