The World Opinion

Category: Economy

  • CBDT Eases TDS Rule In Cases Of Death Of Deductees Before Linkage Of Pan-Aadhaar | Personal Finance News

    New Delhi: The Central Board of Direct Taxes (CBDT) has relaxed the provisions of TDS/TCS in the event of the death of deductee/collectee, before the linkage of PAN and Aadhaar, according to an official statement issued on Wednesday.

    “To redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee/collectee on or before 31.05.2024 and before the option to link PAN and Aadhaar could have been exercised, the Circular provides that there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC of the Act, as the case may be pertaining to the transactions entered into up to March 31, 2024,” an official statement read.

    In view of the genuine difficulties being faced by the taxpayers, the CBDT issued the Circular dated 05.08.2024, and vide the same, the government has relaxed the provisions of TDS/TCS as per the Income-tax Act, 1961, in the event of death of deductee/collectee before linking of PAN and Aadhaar, it added.

    According to the statement, the Circular is in continuation of Circular No. 6 of 2024 issued earlier by the CBDT wherein the date for linking of PAN and Aadhaar was extended up to 31.05.2024 for the taxpayers (for the transactions entered into up to 31.03.2024) to avoid higher TDS/ TCS as per the Act.

    Meanwhile, industry experts have hailed the government’s decision to introduce an amendment to long-term capital gains (LTCG) tax on real estate transactions, saying the move will offer flexibility for sellers.

    Paying heed to the industry’s demand, the government on Tuesday moved an amendment to the Finance Bill 2024, to allow taxpayers to select either a 12.5 per cent long-term capital gains (LTCG) tax rate without indexation or a 20 per cent rate with indexation for property acquired before July 23 this year.

    Experts said this amendment is expected to stimulate investment and sales in the housing market by potentially reducing the tax burden on sellers.

  • Tata Motors Reaffirms Long-Term Confidence In EV Segment Despite Sales Dip | Auto News

    Electric Vehicles In India: Tata Motors on Wednesday said it remains confident about the long-term prospects of the electric vehicle segment and termed the fall in sales numbers a “short-term” issue. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicle and Tata Passenger Electric, said “EV industry is a part of the larger PV trend that we are seeing of overall demand stress, which I would say is of a temporary nature.” The good thing is that inquiries and bookings are holding well, he said.

    There was a very high base effect of the first quarter also, he said, and added that “therefore there’s a larger industry trend also impacting (the sales) but primarily EV has come down because of the fleet segment.” 

    “So, I don’t see an issue from a mid-to-long term as far as EVs are concerned,” Chandra said. The passenger electric vehicle sales for Tata Motors and other OEMs have been on a declining trend for the last four months.

    According to automobile dealers’ body FADA, passenger electric vehicle sales in July dipped 2.92 per cent year-on-year to 7,541 units from 7,768 units in the same month last year, with market leader Tata Motors seeing a 12 per cent decline at 4,775 units as against 5,471 passenger electric cars retailed in July 2023.

    He said that the personal segment is absolutely stable in demand but the fleet segment came down completely in the first quarter because of the pre-buying in the March quarter due to the discontinuation of the FAME-11 scheme, which is 20 per cent of our total sales.

    “That was the whole reason and there is a high-base effect of last year,” he added. Chandra said that the barriers which existed two years back when the EVs were growing at 100-200 per cent, were much higher as compared to now from a charging, price or range anxiety perspective.

    Today there are 15,000-16,000 EV charges on the highways as compared to a few hundred that were there earlier, Chandra said. “So why there should be any concern,” he said.

    “So I believe that it’s a short-term issue and we should not bother too much about (the declining sales numbers). The long-term trend has to be EV and therefore one should be very confident and focused on that,” he said while referring to a 12 per cent year-on-year decline in EV sales in July 2024.

    Chandra said that the regulations are also being framed in a manner that promotes the EV industry. He said that hopefully the FAME-III incentives should also be able to accommodate and continue what was in the earlier version of the scheme in terms of the category of vehicles.

    Tata Motors’ passenger electric portfolio now comprises Tiago EV, Tigor RV, Punch EV, Nexon, and Curvv EV. Moreover, EV sales account for 12 per cent of the company’s total sales. Chandra said that the company is looking to achieve one-lakh electric vehicle sales this financial year.

  • Taxpayers Can Choose Between Old And New LTCG Regime: FM Sitharaman | Economy News

    New Delhi: Finance Minister Nirmala Sithraman said in the Parliament on Wednesday that the primary aim of the Union Budget for 2024-25 is to simplify the tax regime and ensure equitable treatment of all asset classes, as she confirmed the relaxation of the real estate indexation rules. 

    Referring to the amendment to the long-term capital gains (LTCG) regime proposed on Tuesday, the Finance Minister said, “The new tax regime is simpler and gives more flexibility to the taxpayer. The old regime is still not dissolved. Individuals can choose between the two regimes.”

    “This LTCG option on real estate is aimed at no additional tax burden for taxpayers. We have the courage of conviction to change. Amendments in the Budget are brought in even later so that they represent the common people’s aspirations. “The amendment gives a choice to the taxpayer to calculate and see what works better for them. The current amendment ensures that there will be no additional tax burden on the people,” she said.

    “Under the current amendment, in the case of assets acquired before July 23, taxpayers can compute tax under the old scheme with indexation or new scheme and pay the lower tax. We have given an option,” the Finance Minister explained, adding, “The middle class has been in our mind. Removal of indexation in LTCG on real estate was not done due to revenue consideration but simplification.”

    She said the middle class has benefited from various tax proposals in Budgets presented by the Modi government.  The effective tax on annual income of Rs 15 lakh was reduced to 10 per cent in 2023, which was further reduced this year as well under the new I-T regime, Sitharaman pointed out.

    She also said that the pending litigation and demands sorted under the ‘Vivad se Vishwas’ scheme helped the middle-class and small businesses. On the Customs side, the budget Bas taken several steps to boost domestic production and enhance export competitiveness, she said. 

    Customs duty reductions are aimed at lowering the cost of raw materials. Rate cuts have also been proposed for the labour-intensive industries, along with exemption and reduction on 27 critical minerals such as lithium, cobalt, and duty rate cuts for gold and silver, she added.

    The Finance Minister also said that the rate cut in Customs duties on several inputs for leather and textiles is aimed at boosting employment and bringing down costs. There will be a comprehensive review of the rate structure in the next six months, the Finance Minister said.

    She also said that the angel tax has come as a big relief for startups. Angel tax was introduced in 2012, but the UPA government did not remove it, she pointed out. “We have moved away from the days of tax terrorism,” Sitharaman said. She also said that till July 31 (2024-25 AY), as many as 5.2 crore taxpayers comprising 72.8 per cent of the total have moved to the new tax regime, reflecting the success of the system.

    A record 7.28 crore income tax returns have been filed in 2024-25, which is 7.5 per cent higher as compared to the 6.77 crore filed last fiscal. As many as 58.57 lakh were first-time filers in 2024-25, indicating a widening of the tax base. 

  • 7-Seater Cars Under Rs 8 Lakh: Check Full List | Auto News

    7-Seater Cars Under Rs 8 Lakh: Ranging from Rs 4 lakh to Rs 4 crore and beyond, the Indian market is flooded with variety of cars. You can choose any car you wish. However, if you set a filter to buy a 7-seater car for under 8 lakh rupees, how many options do you have left? In such a scenario, you have 2 options: Renault Triber and Maruti Eeco.

    Renault Triber: Key Details

    Available in the price range of Rs 6 lakh and Rs 8.98 lakh (ex-showroom, Delhi), the Renault Triber comes in five monotone and five dual-tone shades: Ice Cool White, Cedar Brown, Metal Mustard, Moonlight Silver, Stealth Black, and their respective combinations with a black roof.

    Triber is powered by a 1-litre NA, 3-cylinder petrol engine producing 72 PS of power and 96 Nm of torque. It is available with either a 5-speed manual or a 5-speed AMT. Key features include an 8-inch touchscreen infotainment system, Android Auto and Apple CarPlay, a 7-inch digital driver’s display, and a wireless phone charger.

    Maruti Eeco: Key Details

    Available in four variants: 5-seater Standard (O), 5-seater AC (O), 5-seater AC CNG (O), and 7-seater Standard (O), the Maruti Eeco is priced from Rs 5.32 lakh to Rs 6.58 lakh (ex-showroom Delhi). It comes with five monotone color options, including Metallic Brisk Blue, Metallic Glistening Grey, Metallic Silky Silver, Pearl Midnight Black, and Solid White.

    It comes equipped with a 1.2-litre petrol engine that generates 81 PS of power and 104.4 Nm of torque, with a 5-speed manual transmission. Its CNG variant delivers 72 PS and 95 Nm, with 26.78 km/kg claimed fuel efficiency. Its key features include a semi-digital speedometer, manual AC, and dual front airbags.

  • Finance Ministry’s BIG TAX Move Soon On Property Transaction Amid Indexation Discontent | Real Estate News

    In relief for property owners, the Finance Ministry is mulling to bring relief for transactions held before July 23, 2024, the date on which the Budget was presented. In the budget, Finance Minister Nirmala Sitharaman has removed the indexation rule on property transactions. The move led to significant discontent with experts pointing out that after the removal of the indexation benefit, sellers will have to pay more taxes.

    Seeing the widespread discontent, the NDA government is now planning to offer some relief to the property owners.  

    Finance Minister Nirmala Sitharaman has proposed an amendment to the Finance Bill, offering significant relief on capital gains tax for property transactions. According to the amendment, taxpayers can choose between a lower tax rate of 12.5 per cent without indexation or a higher rate of 20 per cent with indexation for properties acquired before July 23, 2024, the date the union budget was presented in the Lok Sabha. 

    Taxpayers can calculate their taxes under both options and select the one with the lower tax liability. This new cut-off date of July 23, 2024, replaces the previous cut-off of 2001, alleviating concerns for long-time property owners.

    In the Finance Bill, Sitharaman proposed a flat long-term capital gains tax of 12.5 percent with no indexation benefits. Before it, property transactions used to be taxed at 20 per cent with indexation benefit. Now with the proposed amendments, taxpayers will have a choice like they have in paying income tax under the old structure with deductions or under the new tax structure without deductions.

    The proposed amendment will apply not only to real estate transactions but also to unlisted equity transactions, which are done before July 23, 2024. All such transactions will be taxed at 10 per cent long-term capital gains instead of the budget proposal of 12.5 per cent tax.

    The Lok Sabha began discussing the Finance Bill after the Appropriation Bill for the central government’s expenditure for 2024-25 was passed by the House on Monday. The passage of the Finance Bill by Parliament will complete the budget process.

  • Electric Vehicle Sales Rose 55.2% To 1.79 Lakh Units In July: FADA | Auto News

    Electric Vehicle Sales In July 2024: Electric vehicle sales registered a 55.2 per cent year-on-year growth at 1,79,038 units in July driven by a massive 96 per cent jump in e-two-wheeler sales, automobile dealers’ body FADA said on Tuesday. The total electric vehicle sales for July 2023 were at 1,16,221 units, according to the monthly sales data from Federation of Automobile Dealers’ Association (FADA).

    The electric two-wheelers sales during the previous month stood at 1,07,016 units, up 95.94 per cent, from 54,616 units sold in July last year, while the electric three-wheeler sales grew 18.18 per cent at 63,667 units, from 58,873 units year earlier, as per FADA.

    The commercial vehicle sales during the reporting month was also on an upward trajectory, growing two-fold on a year-on-year basis to 816 units, from 364 commercial vehicles sold in July 2023, it stated.

    Passenger vehicles, however, declined 2.92 per cent at 7,541 units in July, as against 7,768 units in the same month of last year, as per data.

    “The rising market share in the 2W and 3W EV segments for July 2024, with YoY growth rates of 95.94 per cent and 18.18 per cent respectively, and a market share of 7.4 per cent and 57.6 per cent, respectively for the month, is a clear indication of the growing acceptance and demand for electric vehicles in India,” FADA President Manish Raj Singhania said.

    The PV segment, while showing a marginal year-on-year decline of 2.92 per cent, maintains a market share of 2.4 per cent, Singhania said, adding that the CV segment has shown remarkable growth with a year-on-year increase of 124.2 per cent and a current (July) market share of 1.02 per cent.

    The combination of attractive discounts and the anticipation of the discontinuation of the EMPS (Electric Mobility Promotion Scheme), despite its extension, has significantly boosted sales, he said.

    Announced by the Ministry of Heavy Industries in March, for a four months period-April 1,2024 to July 31,2024 to boost the adoption of EVs across the country with a total outlay of Rs 500 crore, the EMP scheme has now been extended by September 30, while the scheme’s outlay has also been increased to Rs 778 crore.

  • Marico Stocks Down Nearly 5% As Key Bangladesh Biz May Get Hit Amid Unrest | Markets News

    Mumbai: The stock of fast-moving consumer goods (FMCG) company Marico Ltd slumped nearly 5 per cent on Tuesday amid the political unrest in Bangladesh as the neighbouring country contributes almost 11 per cent of its consolidated business. 

    The company’s stock was trading around Rs 640 a piece (down 4.9 per cent) during the day trading.

    Marico Bangladesh Ltd clicked Rs 1,103 crore in revenue in the last fiscal (FY24), making up 11 per cent of Marico’s consolidated revenue. For international business on a standalone basis, Bangladesh contributes around 44 per cent of the total revenue.

    Marico’s net profit in the April-June quarter went up 8.7 per cent (year-on-year) to Rs 474 crore.

    The shares have gone up 12.89 per cent in the last 12 months and 17.78 per cent on a year-to-date (YTD) basis.

    In its April-June quarter result, the company said it aims to bring down the contribution from Bangladesh to less than 40 per cent by the end of fiscal 2027.

    In Q1 FY25, Bangladesh registered 10 per cent CCG (constant currency growth) as the business stayed resilient and sustained its momentum for Marico.

    The company said that the international business has grown from strength to strength in the face of transient macroeconomic and currency devaluation headwinds in select regions.

    “While Bangladesh and Vietnam have led from the front, the strong growth momentum in the MENA and South Africa businesses has visibly strengthened the broad-based construct and offers margin upside over the medium term,” Marico said in its quarterly results.

    This resulted in visible geographical diversification in the overall international business, reflecting in the reducing revenue dependence on Bangladesh business.

    The company said it will aim to maintain the double-digit constant currency growth momentum over the medium term.

    The FMCG volume trends in India continued to exhibit gradual improvement on a 2-year CAGR basis, with the trajectory in rural areas bearing more promise, while urban was stable.

  • Rupee Depreciates To Fresh Low, Leaning Towards 84 Over Global Market Concern | Economy News

    The Indian rupee depreciated versus the US dollar on Monday to touch its all-time low, tracking global heavy selling in stock markets, over risks that the US may potentially slip into recession.
    At 12.18 pm, at the time of filing this report, the Rupee traded at 83.85 versus Friday’s closing of 83.75. It opened at 83.78, surpassing the previous lifetime low of 83.7525 from Friday.
    Analysts say that the Rupee’s fall is in line with the weakness in the global market, US recession fears, and add to it geopolitical tensions. 

    “U.S. recession concerns led to worries about foreign outflows from India and emerging markets,” said Mumbai-based Ajay Kedia of financial services firm Kedia Advisory.
    “The fall is attributed to concerns over a potential U.S. recession, which has spurred worries about foreign outflows from India and other emerging markets. The selloff in U.S. and Asian equities, following a disappointing U.S. jobs report, has intensified these concerns, causing significant market jitters,” Kedia said in a report.

    The weak U.S. jobs report released on Friday showed that the economy added only 114,000 jobs in July, significantly below market expectations of a 175,000 increase. Additionally, the unemployment rate unexpectedly jumped to a high of 4.3 per cent, and wage growth slowed more than anticipated.

    Kedia said the Reserve Bank of India might allow USD/INR to move higher to 83.90. He sees support at 83.45, and resistance at 83.95; and breaking 83.95 could push it to 84.10/84.20.
    Jamal Mecklai, a veteran in the financial market, said, “US recession fears, equity market collapse would create a risk-off sentiment. Equity decline could be quite serious and could last for a long time. So the rupee will naturally take some pressure.”

    In 2022-23, the Indian Rupee was in the news cycle for a considerable part, though not for good reasons. Monetary policy tightening by various central banks to contain inflation, the war in Ukraine leading to price rise for crude oil and subsequent realignment in the global energy supply chain, and strengthening of the US dollar index kept the Indian currency under pressure.

    Since then, the rupee has been off the news cycle, as it traded largely steady months thereafter. In 2022, the Rupee depreciated over 11 per cent on a cumulative basis, data showed. It breached the 83-mark against the US dollar in mid-October, to hit an all-time low.

    RBI’s possible intervention in the forex market to stabilize the rupee seemed to have yielded results. Typically, the RBI from time to time intervenes in the markets through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

    The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

  • Bangladesh Protests: Air India, IndiGo Cancel Flights To Dhaka With Immediate Effect | Mobility News

    Bangladesh Riots: Air India and IndiGo cancelled scheduled flights to and from Dhaka with immediate effect on Monday due to the emerging situation in the wake of Bangladesh Prime Minister Sheikh Hasina resigning amid unprecedented anti-government protests.

    A Vistara official said it operated the flight from Mumbai on Monday and the situation is being monitored for operations to Dhaka on Tuesday.
    While Air India operates two daily flights from Delhi to Dhaka, Vistara flies daily flights from Mumbai and three weekly services from Delhi to the Bangladesh capital.

    IndiGo has flights to Dhaka from the national capital, Mumbai, Chennai and Kolkata. The number of flights that are operated by the airline could not be immediately ascertained.

    “In view of the emerging situation in Bangladesh, we have cancelled the scheduled operation of our flights to and from Dhaka with immediate effect. We are continuously monitoring the situation and are extending support to our passengers with confirmed bookings for travel to and from Dhaka with a one-time waiver on rescheduling and cancellation charges,” an Air India spokesperson said in a statement on Monday.

    IndiGo said that in view of the ongoing situation in Dhaka, all flights scheduled for tomorrow have unfortunately been cancelled. “We understand that this may cause significant inconvenience and disruption to your travel plans and we sincerely regret this development,” it said in a post on X.

    In Dhaka, Bangladesh Army Chief General Waqar-uz-Zaman said Hasina has resigned and an interim government is taking over the responsibilities.

  • Stock Market Crash: As Market Continues To Bleed, Check 5 Factors Behind The Massive Fall Today | Markets News

    New Delhi: The stock market bloodbath on Monday eroded Investors’ wealth by Rs 17.11 lakh crore during the afternoon trade to Rs 4,40,04,979.86 crore. Led by a massive decline in its Asian peers, Indian stock market continued to bleed in the afternoon trade with BSE Sensex falling 2,686.09 points or 3.31 per cent to 78,295.86. The NSE Nifty on the other hand tanked 824 points or 3.33 per cent to 23,893.70.

    Siddarth Bhamre, Head of Research, Asit C Mehta Investment Interrmediates Ltd explained 5 factors behind the Indian stock market’s decline.

    1. Worsening US Job data – US non-farm payrolls were far below markets expectation and unemployment data rose to 4.3% instead of expectations of 4.1%. Rise in unemployment could reduce the probability of soft landing which FED was trying to keep interest rate higher to control inflation.

    2.  Reducing corporate profitability in US – Many large US companies whether in technology or consumption space have shown big correction as their earning disappointed.

    3. Global Equities and Geopolitics – Global market correction led by US and geopolitical issues pertain to Iran and Israel have also added its weight to this correction.

    4. Rich valuation of Indian equities – Indian markets have factored in several negatives news and continued to climb on wall of worries on back of very strong liquidity. There is not enough valuation support at this point in time.

    5. High weightage of banks and IT companies – More than 50% of Nifty or Sensex weightage is of BFSI and IT companies. The external factors today have more impact on IT and banking at large and hence quantum of correction is accordingly higher.