Fund Raising by State Bank of India
Fund Raising by State Bank of India
State Bank of India (SBI) has been allowed by the Government to raise equity capital up to Rs, 15,000/- crores by way of FPO/Right Issue/ESPS/ESOS/QIP/ADR/GDR/any other mode or a combination of these.
In this regard, the shareholders’ approval was obtained n the General Meeting of shareholders held on 26.2.2016.
The Capital Adequacy Ratio for SBI as on 31st December, 2015 is 12.45% as against the RBI prescription of 12.10% as on 31st March, 2019 as per Basel III transitional arrangement. However, the additional capital raised/to be raised will help the Bank for meeting credit growth.
In this regard, the shareholders’ approval was obtained n the General Meeting of shareholders held on 26.2.2016.
The Capital Adequacy Ratio for SBI as on 31st December, 2015 is 12.45% as against the RBI prescription of 12.10% as on 31st March, 2019 as per Basel III transitional arrangement. However, the additional capital raised/to be raised will help the Bank for meeting credit growth.
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Amendment in the existing Atal Pension Yojana
The Government has made following amendment in the existing Atal Pension Yojana (APY) vide Government Notification F. No. 16//1/2015 PR dated 22nd March, 2016.
Option to the spouse of the subscriber to continue contribution to APY on death of subscriber before the age of 60 years:
“If the subscriber dies before the age of 60 years, his/her spouse would be given an option to continue contributing to APY account of the subscriber, which can be maintained in the spouse’s name, for the renaming vesting period, till the original subscriber would have attained the age of 60 years. The spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse”.
Option to the spouse of the subscriber to continue contribution to APY on death of subscriber before the age of 60 years:
“If the subscriber dies before the age of 60 years, his/her spouse would be given an option to continue contributing to APY account of the subscriber, which can be maintained in the spouse’s name, for the renaming vesting period, till the original subscriber would have attained the age of 60 years. The spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse”.
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Implementation of General Anti Avoidance Rule (GAAR)
The Government is committed to implement General Anti Avoidance Rule (GAAR) in the country from the next financial year. The commitment of the Government to implement GAAR from 1.4.2017, i.e., Assessment Year 2018-19 relevant to the Financial Year 2017-18, is also reflected in the Budget Speech 2016 delivered in the house on 29.02.2016.
The Government has taken following steps to overcome the hurdles and implement the GAAR:
a) The provisions relating to GAAR are contained in Chapter XA and Section 144BA of the Income-tax Act, 1961.
b) Necessary rules for implementing GAAR have also been notified.
Further, the Government would be constituting a panel as mandated by the law and also, provide for the guidelines on practical aspects relating to implementation of GAAR, in due course.
The Government has taken following steps to overcome the hurdles and implement the GAAR:
a) The provisions relating to GAAR are contained in Chapter XA and Section 144BA of the Income-tax Act, 1961.
b) Necessary rules for implementing GAAR have also been notified.
Further, the Government would be constituting a panel as mandated by the law and also, provide for the guidelines on practical aspects relating to implementation of GAAR, in due course.
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Bank Board Bureau
With the approval of Appointments Committee of the Cabinet (ACC), the Government has set-up an autonomous Banks Board Bureau (BBB), which has stared functioning with effect from 1.4.2016. The Bureau will search and select heads of public Sector Banks/Financial Institutions and help them in developing differentiated strategies and capital raising plans through innovative financial methods and instruments. The composition of BBB is as follows:
1) Shri Vinod Rai, former CAG of India – Chairman
2) Secretary, Department of Financial Services, Ex-officio Member
3) Secretary, Department of Public Enterprises, Ex-officio Member
4) Deputy Governor, Reserve Bank of India, Ex-officio Member
5) Shri Anil K. Khandelwal, Former CMD of Bank of Baroda, Member
6) Shri H.N. Sinor, former Joint MD, ICICI Bank, Member
7) Ms. Roopa Kidva, former MD&CEO, CRISIL, Member
In order to bring in transparency and objectivity in the selection of heads of Public Sector Banks and Financial Institutions, the Government has expanded the interview board/sub-committee of the Appointments Board from five members to six members so that there are three sub-panels comprising of the two members each. Each sub-panel interacts with candidates separately and at the end of interview process, weighted average marks are candidate’s marks for the interview.
1) Shri Vinod Rai, former CAG of India – Chairman
2) Secretary, Department of Financial Services, Ex-officio Member
3) Secretary, Department of Public Enterprises, Ex-officio Member
4) Deputy Governor, Reserve Bank of India, Ex-officio Member
5) Shri Anil K. Khandelwal, Former CMD of Bank of Baroda, Member
6) Shri H.N. Sinor, former Joint MD, ICICI Bank, Member
7) Ms. Roopa Kidva, former MD&CEO, CRISIL, Member
In order to bring in transparency and objectivity in the selection of heads of Public Sector Banks and Financial Institutions, the Government has expanded the interview board/sub-committee of the Appointments Board from five members to six members so that there are three sub-panels comprising of the two members each. Each sub-panel interacts with candidates separately and at the end of interview process, weighted average marks are candidate’s marks for the interview.
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Swabhiman Campaign
Under the Swabhimaan campaign, the banks were advised to provide appropriate banking facilities to habitations having a population in excess of 2000 (as per 2001 census) by March 2012. The banks identified approximately 74000 habitations across the country having a population of over 2000 for providing banking facilities. As per reports received from Banks, 74351 villages with population of above 2000 have been covered with banking facilities either by branches; Business Correspondents, mobile banking etc by March 31, 2012.
Census, 2011 estimated that out of 24.67 crore households in the country, 14.48 crore (58.7%) households had access to banking services. With a view to increase banking penetration and promoting financial inclusion and with the main objective of covering all households with at least one bank account per household across the country, a National Mission on Financial Inclusion named as Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on 28th August, 2014 at national level by Hon’ble Prime Minister. Under the Yojana 21.56 crore accounts have been opened till 13.04.2016 and 99.99% households out of the 21.22 crore households surveyed have been covered.
Census, 2011 estimated that out of 24.67 crore households in the country, 14.48 crore (58.7%) households had access to banking services. With a view to increase banking penetration and promoting financial inclusion and with the main objective of covering all households with at least one bank account per household across the country, a National Mission on Financial Inclusion named as Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on 28th August, 2014 at national level by Hon’ble Prime Minister. Under the Yojana 21.56 crore accounts have been opened till 13.04.2016 and 99.99% households out of the 21.22 crore households surveyed have been covered.
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Guidelines for Grant of Rewards to Informers of Tax Evasion
The details with regard to guidelines in respect of rewards to informers of tax evasion are:
Direct Taxes:- Any person who provides specific information with respect to evasion of direct taxes and such information helps in detection of undisclosed income and/or seizure of undisclosed cash, valuables resulting in levy and collection of extra income tax, is entitled to receive reward as per “Guidelines for grant of rewards to informants, 2007”, which came into effect from 1st December, 2007. As per the guidelines, the Competent Authority may grant reward not exceeding 10% of the extra income-tax and wealth-tax levied and actually realized, but subject to a ceiling of Rs. 15,00,000/- (rupees fifteen lakhs only) if the aforesaid taxes are directly attributable to the information, including documents, supplied by the informant. The monetary ceiling shall apply with reference to a Group of cases and not in respect of the individual assesses of the Group.
Indirect Taxes :- Central Board of Excise and Customs (CBEC) vide Circular No. 20/2015 dated 31.07.2015 has issued fresh reward guidelines for the Government servants and informers so as to get information about tax evasion.
The system does not scare away potential informers because the details of the informer is kept confidential and is not disclosed under any circumstances.
Direct Taxes:- Any person who provides specific information with respect to evasion of direct taxes and such information helps in detection of undisclosed income and/or seizure of undisclosed cash, valuables resulting in levy and collection of extra income tax, is entitled to receive reward as per “Guidelines for grant of rewards to informants, 2007”, which came into effect from 1st December, 2007. As per the guidelines, the Competent Authority may grant reward not exceeding 10% of the extra income-tax and wealth-tax levied and actually realized, but subject to a ceiling of Rs. 15,00,000/- (rupees fifteen lakhs only) if the aforesaid taxes are directly attributable to the information, including documents, supplied by the informant. The monetary ceiling shall apply with reference to a Group of cases and not in respect of the individual assesses of the Group.
Indirect Taxes :- Central Board of Excise and Customs (CBEC) vide Circular No. 20/2015 dated 31.07.2015 has issued fresh reward guidelines for the Government servants and informers so as to get information about tax evasion.
The system does not scare away potential informers because the details of the informer is kept confidential and is not disclosed under any circumstances.
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Release of Data by Income Tax Department
Income Tax Department has released Time Series Data for Financial Year 2000-01 to 2014-15 based on internal reporting/ MIS of the Income Tax Department or figures reported by Controller General of Accounts or data published by other Government agencies along with PAN Allotment Statistics pertaining to Financial Year 2013-14 and Income Tax Return Statistics for Assessment Year 2012-13 (FY 2011-12). The same is available on the official website of the Income Tax Department www.incometaxindia.gov.in for viewing.
The data will be periodically updated to make it as current as possible.
The objective of publishing this statistics is to encourage wider use and analysis of Income tax data by Departmental personnel as well as various stakeholders including economists, scholars, students, researchers and academicians for purposes of tax policy formulation and revenue forecasting.
The data will be periodically updated to make it as current as possible.
The objective of publishing this statistics is to encourage wider use and analysis of Income tax data by Departmental personnel as well as various stakeholders including economists, scholars, students, researchers and academicians for purposes of tax policy formulation and revenue forecasting.
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ADB Forecast Growth Rate in 2016-17
Asian Development Bank (ADB) has forecast growth rate at 7.4% in 2016-17 as against 7.6% during 2015-16. The details and reasons cited by ADB for lower growth rate during 2016-17 are as under:
• Public investment will continue to be an important driver of growth, as the Government is expected to use savings from oil to further boost Government investment. However, the finances available to ramp up investment in 2016-17 will be smaller than in 2015-16, given the government’s commitment to fiscal consolidation and increased outgo on account of a higher public sector wage bill.
• Anemic growth n advances economies including the United States and Euro area, lower export commodity prices, and weaker currencies in some major trading partners vis-a-vis the Indian rupee are likely to hit merchandise exports and financial, telecom, business and other tradable services. Lower net exports would thus impinge on growth.
• Limited policy headroom exists to bolster growth, given pressures from an uptick in inflation and government’s commitment towards fiscal consolidation.
• The slowdown would be a result of the expected decline in external demand due to anemic growth in important export destinations such as United States, Euro area and People’s Republic of China. Public investment growth is also estimated to slow down with central government’s capital expenditure growth declining from 20.8% in 2015-16 to 3.9% in 2016-17. Finally, the weak balance sheets of Public Sector Banks will also hamper lending and growth prospects in the short-term.
• Growth is expected to accelerate to 7.8% in 2017-18, helped by the Government’s strengthening of Public Sector Banks’ capital and operations, private investment benefitting from corporate deleveraging, the financing of stalled projects, and an uptick in bank credit.
• Public investment will continue to be an important driver of growth, as the Government is expected to use savings from oil to further boost Government investment. However, the finances available to ramp up investment in 2016-17 will be smaller than in 2015-16, given the government’s commitment to fiscal consolidation and increased outgo on account of a higher public sector wage bill.
• Anemic growth n advances economies including the United States and Euro area, lower export commodity prices, and weaker currencies in some major trading partners vis-a-vis the Indian rupee are likely to hit merchandise exports and financial, telecom, business and other tradable services. Lower net exports would thus impinge on growth.
• Limited policy headroom exists to bolster growth, given pressures from an uptick in inflation and government’s commitment towards fiscal consolidation.
• The slowdown would be a result of the expected decline in external demand due to anemic growth in important export destinations such as United States, Euro area and People’s Republic of China. Public investment growth is also estimated to slow down with central government’s capital expenditure growth declining from 20.8% in 2015-16 to 3.9% in 2016-17. Finally, the weak balance sheets of Public Sector Banks will also hamper lending and growth prospects in the short-term.
• Growth is expected to accelerate to 7.8% in 2017-18, helped by the Government’s strengthening of Public Sector Banks’ capital and operations, private investment benefitting from corporate deleveraging, the financing of stalled projects, and an uptick in bank credit.
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Loans from Industrial Financial Institutions
The details of outstanding loan of Government of India towards each of the multilateral institutions i.e., International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Fund for Agriculture Development (IFAD) and Asian Development Bank(ADB) are as under:
Amount INR
Sl. No.
|
Name of Institution
|
Debt Outstanding on 31.3.2016
|
1.
|
ADB
|
660,629,538,578
|
2.
|
World bank (IBRD)
|
615,530,830,761
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3.
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World Bank (IDA)
|
1,637,718,186,006
|
4.
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IRAD`
|
21,453,084,483
|
The details of the amount of the loan taken during the last three years, year-wise and institution-wise are given below. Besides facilitating socio-economic development, the financial assistance from MDBs also facilitates transfer of technology, sharing of knowledge and international best practices, which results in improvement in systems and processes.
Loan amount (INR in Crore)
Sl. No.
|
Name of Institution
|
2013-14
|
2014-15
|
2015-16
|
1.
|
ADB
|
4,263.00
|
6,580.61
|
7,176.90
|
2.
|
World bank (IBRD)
|
3,402.69
|
5,634.81
|
5,782.39
|
3.
|
World Bank (IDA)
|
6,738.90
|
8015.20
|
9439.71
|
4.
|
IRAD`
|
210.29
|
191.74
|
220.05
|
Several steps are being taken by the Government to speed up the disbursement of the projects and to ensure that the projects are implemented within the agreed time frame thereby contributing to socio-economic development of the country. A project readiness checklist has been devised for ensuring adequate preparedness of projects before implementation. Strict monitoring of disbursements/projects through Tripartite Review meetings (TPRM), State Review Meetings (SRM) is being undertaken. Further, D.O. letter at Secretary level are issued to Line Ministries and State Governments bringing out various issues in implementation of project.
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Investigation of Offshore Accounts
The Government has come across instances of transferring money out of the country illegally. Some of such cases detected indicate use of the medium of trade for such transfers which include overvaluation in imports, undervaluation in exports, remitting foreign exchange on the strength of forged import documents, payments/remittances for non-genuine purchases of goods/services/technical know-how, etc.
Recently, information about certain offshore entities held by various Indian persons has appeared in media. Such information is attributed to be part of ‘Panama Papers’ leaks. The International Consortium of Investigative Journalists (ICIJ), a Washington based organization which has reportedly made the revelations pertaining to the Panama Papers, has put a caveat on its website (www.icij.org) by mentioning that it should not be assumed that everyone who appears in the Panama Papers is involved in tax avoidance or evasion and there are legitimate reasons to create a company in an offshore jurisdiction and many people declare them to their tax authorities when that is required. The Government has taken necessary measures for expeditious investigation in such cases including through enhanced international cooperation.
The Government has constituted a Multi-Agency Group on 4th April 2016, inter alia, for facilitating coordinated and speedy investigation in the cases of Indian persons allegedly having undisclosed foreign assets and whose names are reportedly included in Panama Papers leaks. The Group consists of the officers of Investigation Division of the Central Board of Direct Taxes (CBDT), Foreign Tax & Tax Research Division of CBDT, Enforcement Directorate (ED), Financial Intelligence Unit (FIU) and Reserve Bank of India, and its Convener is Member (Investigation), CBDT. It has been asked to report the progress in such cases on regular basis. Investigation in such cases is at preliminary stage. Further course of action depends upon outcome of the investigation in respective cases.
Recently, information about certain offshore entities held by various Indian persons has appeared in media. Such information is attributed to be part of ‘Panama Papers’ leaks. The International Consortium of Investigative Journalists (ICIJ), a Washington based organization which has reportedly made the revelations pertaining to the Panama Papers, has put a caveat on its website (www.icij.org) by mentioning that it should not be assumed that everyone who appears in the Panama Papers is involved in tax avoidance or evasion and there are legitimate reasons to create a company in an offshore jurisdiction and many people declare them to their tax authorities when that is required. The Government has taken necessary measures for expeditious investigation in such cases including through enhanced international cooperation.
The Government has constituted a Multi-Agency Group on 4th April 2016, inter alia, for facilitating coordinated and speedy investigation in the cases of Indian persons allegedly having undisclosed foreign assets and whose names are reportedly included in Panama Papers leaks. The Group consists of the officers of Investigation Division of the Central Board of Direct Taxes (CBDT), Foreign Tax & Tax Research Division of CBDT, Enforcement Directorate (ED), Financial Intelligence Unit (FIU) and Reserve Bank of India, and its Convener is Member (Investigation), CBDT. It has been asked to report the progress in such cases on regular basis. Investigation in such cases is at preliminary stage. Further course of action depends upon outcome of the investigation in respective cases.
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Mobile App namely ‘‘Indian Customs- Guide to Travellers’ launched to inform Traders/Exporters/Importers about Customs Rules
Central Board of Excise and Customs (CBEC) has launched mobile app, namely, ‘Indian Customs- Guide to Travellers’.
The mobile App has been developed by Bengaluru Customs to inform international travelers who may, inter-alia, be traders/exporters/importers about Customs Baggage rules. The app is available on Android Play store, Apple Store and Windows Store.
This app serves as a ready reckoner of Customs Baggage Rules, 2016 and entitlements to International passengers. It is user friendly and serves as a useful tool for quick and effective dissemination of information about baggage rules and entitlements and thus serve to clarify doubts and concern of International passengers and also ensure better compliance.
The mobile App has been developed by Bengaluru Customs to inform international travelers who may, inter-alia, be traders/exporters/importers about Customs Baggage rules. The app is available on Android Play store, Apple Store and Windows Store.
This app serves as a ready reckoner of Customs Baggage Rules, 2016 and entitlements to International passengers. It is user friendly and serves as a useful tool for quick and effective dissemination of information about baggage rules and entitlements and thus serve to clarify doubts and concern of International passengers and also ensure better compliance.
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