Top 10 biz headlines: Slabs for direct tax, BSNL asset sale, and more

Direct tax code panel wants 4 slabs, 35% I-T for Rs 2 crore income

The panel for drafting a new legislation on direct taxation has suggested an overhaul of personal income tax (I-T) slabs, to increase disposable income and give a fillip to consumer demand. Sources said the draft legislation had proposed four tax brackets by introducing a new slab of 35 per cent for those earning an annual income of Rs 2 crore and above.

RBI turns down Sebi plan for credit rating agencies' access to defaults

The Reserve Bank of India (RBI) has expressed disagreement over the Securities and Exchange Board of India’s (Sebi) proposed framework enabling credit rating agencies (CRAs) to legally access borrower database, helping them in timely recognition of default.

We have not seen any big impact of slowdown on anything: Flipkart Group CEO

As Flipkart gets ready to launch its Big Billion Day sale next week, Kalyan Krishnamurthy, chief executive officer of Flipkart Group, tells Peerzada Abrar and Bibhu Ranjan Mishra that the focus is no more about deep discounting or pricing but about solving several of their problems, including credit, local language choice, and installation service. He says the Bengaluru-based e-commerce major has not seen any big impact on consumer buying behaviour in the recent past despite a slowing economy.

DTC panel suggestion on corporation tax different from FM's formula

The corporation tax rate structure recommended by the task force on direct tax laws was a bit different from what was announced by Finance Minister Nirmala Sitharaman last week.

Govt unlikely to take DIPAM route for cash-strapped BSNL asset sale

The department of telecommunications ( DoT) is considering not selling assets of the beleaguered Bharat Sanchar Nigam (BSNL), worth over Rs 1 trillion, through the Department of Investment and Public Asset Management (DIPAM) route.

From ONGC to Coal India, PSUs set to pay higher dividend with tax savings

The public sector units listed in BSE500 (ex-financials) will save around Rs 19,300 crore in taxes based on the actual profits in FY19. Much of the tax windfall of around Rs 10,000 crore is likely to flow back to the government in the form of dividend and dividend distribution tax.

Govt's decision to cut corporation tax likely to impact power bill

The Union government’s decision to cut the corporation tax is expected to generate savings worth Rs 4,000 crore to power distribution companies. Whether the savings will mean cheaper power or not, however, will depend on a host of regulations. The source of power, renewable or non-renewable, and the nature of the market, regulated or merchant, will be a factor in deciding whether the cost would go down.

Easier KYC for Foreign Funds Investing in Indian Firms

The government has eased the client-verification requirement under the Prevention of Money Laundering Act for overseas investors who want to put money in the depository receipts of Indian companies, Economic Times reported. Now, foreign investors do not need to complete any separate KYC (know your client) process as per Indian rules, and can buy depository receipts of Indian companies based on the proof of identity they have established with authorities in their country of origin, said a government notification issued last week.

India Inc Puts Capex Plans on Hold, Weighs Setting Up Separate Entities

Many companies have stopped expansion plans and are reaching out to tax experts after the corporate tax for new companies has been pegged at 15%, reported Economic Times. The reason being that instead of investing directly, if a separate entity is formed for the same investment, there could be a tax arbitrage of about 10%. Last Friday, FM Nirmala Sitharaman had announced the lowest corporate tax rate for new manufacturing units that begin production before March 31, 2023. 

Scrappage policy to propose hike in re-registration fees of old vehicles

Towards phasing out of older, polluting vehicles, the Road Transport and Highways Ministry has proposed manifold increase in the renewal of registration fees of vehicles older than 15 years of age, Mint reports. The proposed hike will be implemented from July 2020, a senior government official said told Mint.

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