Union Budget 2021: Enhance tax benefit in interest on housing loan to Rs 3 lakh from current Rs 2 lakh

The Union Budget comes with a lot of expectations, especially amidst the recovery from the pandemic. We expect that the government’s agenda of ‘Housing for All’ will see a major push through this Budget as well.

As a Housing Finance Company (HFC) we also expect announcements which will enhance/ renew of prospective buyers towards owning a house and further propels investments in real estate as an asset class. Needless to say the real estate sector, along with manufacturing and services, is also a huge employment generator, and any positive activity in this sector aids the overall buoyancy in the economy.

We feel, keeping in mind the real estate price inflation over the last decade or so, as a first step, the government can consider enhancement in a tax benefit for interest in housing loan to Rs 3 lakh from the current levels of Rs 2 lakh. The limit can be higher up to Rs 4-5 lakh in metro locations, which will be in line with the real estate price difference which exists between metros and other major cities.

Also, the enhancement in 80C benefits especially with respect to limits for housing loan principal repayment by retail borrowers would be beneficial. The introduction of loss on housing property should be revisited and the limits on the same can be enhanced as well. This would encourage more end investments in the sector.

The initiative should be taken towards liquidity enhancement for small HFCs as well. Schemes/measures like Targeted Long Term Repo Operations or TLTRO and Partial Credit Guarantee or PCG etc., which have seen considerable success over the last few months, should be a part of business and be used by the regulator whenever there is an inherent need in system for the same. Also some kind of SOPs should be given to encourage mutual funds to move back into the debt capital markets so they can invest in long tenor bonds of investment-grade companies.

In the medium to long-term, the government may look at easing of External Commercial Borrowing (ECB) guidelines for HFCs. The investment concentration/group exposure limits etc. can be looked upon with a view to facilitating easier foreign currency borrowing for the sector.

In turn, this will ease the volatility in the domestic real estate markets. On the other hand, encouragement should be given to insurance funds/pension funds to invest in long term debt issuance of HFCs. This will help both parties on Asset Liability Management as HFCs look for long term debt and pension/insurance funds need long term debt investment avenues.

Introduction of housing bonds is another avenue which the government may look at where investment by retail investors is allowed. The finance minister may consider in granting special status to HFCs, at par with the banking sector. This will help in smoothening of any kind of Asset Liability Management mismatch for HFCs who are engaged in financing long tenor retail assets.

The thrust should be given to the initiative taken by the Prime Minister for the housing sector, which is ‘Housing for All’.

Overall, there are initiatives for both HFCs and the end-consumers which are expected, and we do hope that the Union Finance Minister Nirmala Sitharaman will look at the real estate sector favourably.

The writer MD and CEO, Shriram Housing Finance

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Union Budget 2021: Govt should speedily release GST refund dues to allow locked-up capital flow into economy

The current financial year 2020-21 has seen deep erosion in the economy with sources pegging the year to close with a contraction of 7.7 percent in the gross domestic product (GDP). However, after the steep drop in the first two quarters, the economy is seen to be recovering with positive GDP growth in the last two quarters. The manufacturing sector has shown a swift recovery from Q2 and is poised to deliver further growth provided the market is ready for it.

While the supply side has striven to recover its operations to pre-COVID levels, the demand is still lagging in several sectors of the economy. The government must focus its efforts firstly on improving demand in the domestic market. One major step towards this objective is to reduce the Goods and Service Tax (GST) rate for certain categories like furniture and air conditioners which are also identified as key thrust areas for investment by the government.

The inflationary pressure on commodities like metals and plastics will impact end-product prices -- both for the domestic and export markets. In order to improve demand, price of inputs and supply constraints should be managed within the bounds of the global markets. There should be predictability of prices and availability of the inputs over the short and medium-term which will, in turn, stabilise prices of the end-products, resulting in improved consumer confidence.

The government should speedily release all outstanding payments or tax refunds owed to service providers in the form of pending bills. This includes GST refund dues. This locked up capital would flow back into the economy through increased spending by the recipients.

On the supply side, import duty on components should be reduced in order to encourage local product manufacturing. The infrastructure for local component manufacturing for furniture is not yet well developed in India. The government should formulate standards for the import of finished goods and apply them effectively to prevent the import of sub-standard products into India.

In addition to the development of road and rail transport infrastructure, coastal and inland shipping should also be developed. It will reduce logistics costs and speed up supply substantially. While logistics has been given industry status, the warehousing space remains largely unorganised. The cold chain infrastructure also needs to be developed. The costs of exports from India should be benchmarked with leading ASEAN nations and corrective actions taken to make us more competitive.

Energy is a major factor in the economy. We must establish a national energy policy framework to support the development of a secure, sustainable and affordable energy system with the adoption of international best practices. There should be a greater focus on Renewable Energy and Open Access mechanism along with their cost-effectiveness and payment security. The implementation of renewable purchase obligations (RPOs) of utilities is very important.

We should continue to encourage investment in India’s energy sector and make the electric distribution companies (DISCOMs) debt-free and enable them to adopt the latest technologies. The government should adopt the direct benefit transfer approach for subsidy payments to consumers.

The writer is Executive Director and President, Godrej and Boyce Mfg. Co.

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Union Budget 2021: Govt should provide incentives to increase new GST registrations

The Goods and Service Tax (GST) is a comparatively new law in force that is triggered with various changes till it enters the area of perfection. It is natural to have changes and amendments in the law for a decent number of years after its application.

However, GST has witnessed so many amendment times and again that its original structure which was kept by the Parliament before the country seems to be taking new shape and a new variant of GST, considering the recent amendments and approach of amendments in the law, is quite brainstorming as well as full of complexities as far as taxpayer is concerned.

Here are some structural changes which I feel should be at the core of the discussion for smooth compliance with GST law:

Ensuring free flow of input tax credit

Recently various input tax credit (ITC) restriction measures have been introduced to fill up the loopholes, which fraudsters are taking advantages of.

The first and foremost change is the restriction in the claim of ITC. When an invoice is not furnished by the supplier or vendor, the ITC available before the amendment was 10 percent which is now replaced with 5 percent. Earlier, if you have made a bonafide purchase and the supplier failed to furnish the invoice details, a claim of 10 percent was allowed. The ITC will now be 105 percent of the invoice furnished. This rate is continuously reducing as ITC was 20 percent before, 10 percent and now it’s 5 percent . It can be said that this limit might abolish soon. This will hamper working capital requirement in small taxpayers resulting in the slow growth of the economy.

A threshold amount of Rs 25,000 to Rs. 50,000 per month shall be allowed to be claimed additionally (above 2A/2B)  along with above-said rule so that not only fraudsters can be stopped in time but small bonafide businessmen are also safeguarded adequately.

Cash crunch versus handholding of SME

Rule 86B is newly inserted that provides no ITC above 99 percent of Electronic Credit Ledger can be utilised by the taxpayer. This rule applies in cases where taxable supplies, i.e. turnover other than exempted supply of zero-rated supply above 50 lakhs per month. (These will majorly affect small and medium enterprises ranging from Rs 5 crore annual turnover to Rs 10-20 crores  per annum)

It is compulsory now to pay 1 percent in cash of Electronic cash ledger credit available. There are certain exceptions to this rule. Yet this provision will unnecessarily defeat the purpose of seamless credit being promised by the government at the time of the launch of GST.

More automation than manual

India is a vast country and more online automated processes and systems are required with ease of implementation. However, recently it has been noticed that complexities have been increased. Some of the noticeable manual powers given to GST Officers are:

• System-based registration had a time limit of 3 days earlier which is now extended to 7 days from the date of filing the registration application.
• Where the applicant has not opted for Adhaar verification and the department feels necessary to have physical verification for granting registration--the limit was of 7 days which is now extended to 30 days’ time limit.

GST registration cancellation/suspension powers to officers

The Goods and Service Tax department has the power to suspend the GSTIN of a holder in the following small irregularities:-

• If the GSTIN holder avails credit more than admissible under Rule 16 of CGST Act, 2017
• If there is variation in the taxable value and tax payable under GSTR 3B and GSTR 1
• If Rule 86B is violated department may cancel the registration.

The most draconian part is: there is no Concept of Opportunity of being heard before suspension to the GSTIN holder to safeguard its registration. It is a very crucial situation where the registration gets cancelled. Every business can fight against the raised orders of penalty and interest, but a registration being cancelled is a big issue as the supply will stop, the whole business will be stopped and for the same, no opportunity of being heard will be given is a grey provision.

Simplify GST return structure

The blocking of GSTR1 if GSTR3B is not filled. It was observed by the government that GSTR1 was filed by the taxpayer as the customer was getting credit and when it comes to payment of GST under GSTR3B, taxpayers were avoiding filing the return. Hence, Rule 59 was amended from blockage of E-way bill to blockage of GSTR1 as well.

Such provision applies when a monthly return is not filled GSTR3B for 2 months u/s 37, a quarterly return is not filled GSTR3B for the previous quarter and the Rule 86B is applicable-GSTR 3B not filled. There is a huge need to simplify this return process so that heavy compliance and the burden on the part of the taxpayer can be minimised.

Changes concerning E-way bill

Earlier there was a provision that the E-way bill will be valid 100 km/day. That is before a recent amendment on every 100 km one day (24 hours) was provided, but now this limit has been made 200 km/day. This provision has made business difficult as now we need to travel more in less time and this structural change is very crucial for smooth functioning

Rationalisation of GST rates

GST, when introduced, was promised to be One Nation One Tax but due to the federal structure of our country, we were gifted CGST, SGST, and IGST. Moreover, tax rates are not one. These range from 3 percent to 28 percent in various slabs. Simplification in the form of a lower number of tax rates to ensure easement in the practical world is the need of the hour. The government may consider deriving two rates by merging 5 percent, 12 percent, and 18 percent.

Widening of GST base

A large part of government machinery is focused on increasing revenue collection from an already registered person. However, a substantial section of business (especially where cash is the major dealing mode) are still out of the ambit. The government should incentivise new registration so as to boost the tax base.

We may conclude that regarding the major aspects stated above, it was clarified by the government that such actions are only applicable to the taxpayers who are using malicious ways to save tax under the act. But none of the provisions had any kind of clarification that other genuine taxpayers will be safe.

It can be said that the government intended to clear the circulation of fake invoices and dummy business taking action but the genuine registered taxpayer will have to pay more attention to the provisions and compliances rather than doing business. Such amendments do not have revenue generation for the government but only rules and restrictions that will create a fear among the taxpayers.

The writer, a qualified CPA (Ireland) and Fellow Chartered Accountant (India) is founder and chairman, HostBooks Ltd

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NCERT releases admit card for NTS Stage-2 Examination 2020; steps to download hall ticket from ncert.nic.in

The National Council of Educational Research and Training (NCERT) released the NTSE Stage 2 Exam 2020 admit card on 29 January. Students can download the NTSE Admit Card 2020 by logging into the official website ncert.nic.in.

According to a report in Jagran Josh, the NTSE Stage 2 Exam 2020 hall ticket has been released for students who have cleared the first stage and have qualified to participate in the all-India level test.

Here's how to download the NTSE Stage 2 Admit Card:

Step 1: Candidates need to visit the official website ncert.nic.in.

Step 2: Once there, they need to click on the NTSE icon and find the link for 'Admit card for NTS Stage-II Examination 2020'.

Step 3: Candidates will be redirected to a new page with input fields where they will have to enter their roll number, date of birth, and security captcha.

Step 4: Candidates need to verify all details and submit on the website.

Step 5: The NTSE Stage 2 Admit Card 2020 will be displayed on the screen. Candidates need to download the hall ticket and take a printout for future reference.

According to a report in Careers 360, students have to carry either their Aadhar card or school identity card to the exam centre during NTSE 2021. The admit card will have the student's name, category, state/UT, roll number, exam date, time and centre as well as instructions to follow.

Candidates must check the details mentioned on the NTSE admit card for errors and in case of any discrepancy, contact the state's liaison officer or a concerned person of respective school to get them rectified.

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Pune's Serum Institute of India applies for permission to start trials of 'Covovax' vaccine

Pune: Serum Institute of India (SII) CEO Adar Poonawalla on Saturday said his company has applied to start the trials of another COVID-19 vaccine and that it hopes to launch it by June 2021.

The city-based firm has already produced 'Covishield' vaccine, co-developed by the University of Oxford and British-Swedish company AstraZeneca. The Centre has purchased 11 million doses of Covishield vaccine for the ongoing inoculation drive.

In a tweet, Poonawalla said, "Our partnership for a COVID-19 vaccine with @Novavax has also published excellent efficacy results. We have also applied to start trials in India. Hope to launch #COVOVAX by June 2021!"

The country launched its COVID-19 vaccination drive from 16 January in what Prime Minister Narendra Modi has called the world's largest inoculation programme with priority to be given to nearly three crore healthcare and frontline workers.

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Ex-West Bengal minister Rajib Banerjee, 5 former TMC MLAs to meet BJP top brass in Delhi today

Kolkata: Former West Bengal minister Rajib Banerjee, who recently quit the TMC, will Saturday fly with a few other disgruntled MLAs and leaders to New Delhi where they may join the BJP, sources in the saffron party said.

Banerjee and MLAs Prabir Ghosal and Baishali Dalmiya, who was recently expelled from the TMC, and former Howrah mayor Rathin Chakraborty, will be flying to the National Capital on a special plane, and meet central BJP leaders.

Former TMC MLA from Ranaghat Paschim in Nadia district Parthasarathi Chattopadhyay is also likely to accompany them.

Banerjee said he had a word with Union Home Minister Amit Shah who called him to Delhi.

"After I resigned from the TMC, I received a call from the BJP leadership.....Amit Shah ji told me to come over to Delhi. If I get assurances regarding the state's development, I will join the party," he told a Bengali news channel.

When asked what role does he expect to play in the BJP, Banerjee said it is for the party to decide.

"I want to work for the people. So whatever role is assigned to me, I will accept," he said.

BJP sources said the former TMC leaders will take a special flight to Delhi. They may join the BJP today or come back and be inducted into the party at Dumurjula stadium programme on Sunday, a senior BJP leader said.

According to BJP sources, these TMC leaders were supposed to join the saffron party during Shah's rally at Dumurjula in Howrah on Sunday. However, Shah's two-day visit to West Bengal was cancelled at the last minute following a blast outside the Israeli Embassy in Delhi.

Union minister Smriti Irani will now deputise for Shah at the programme.

Ghosal told reporters that he will be flying to Delhi this afternoon and will join the BJP.

The ruling TMC in West Bengal was rocked by a fresh bout of desertions on Friday with Rajib Banerjee quitting the party and several other leaders rallying behind him.

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UN urges countries to repatriate children from Syria, says 27,000 'remain stranded, abandoned to their fate'

United Nations: The UN counterterrorism chief is urging countries to repatriate the 27,000 children stranded in a massive camp in northeastern Syria, many of them sons and daughters of Islamic State extremists who once controlled large swathes of Iraq and Syria.

Vladimir Voronkov told an informal meeting of the UN Security Council on Friday that “the horrific situation of the children in Al Hol (camp) is one of the most pressing issues in the world today.”

The 27,000 children “remain stranded, abandoned to their fate,” vulnerable to be preyed on by Islamic State enforcers, “and at risk of radicalisation within the camp,” he said.

Al Hol, the largest camp for refugees and displaced Syrians in the country, is currently home to almost 62,000 residents, according to UN humanitarian officials. More than 80 percent are women and children, many of whom fled there after Islamic State militants lost their last Syrian stronghold in 2019. There are a number of other camps in the northeast as well.

Voronkov said there are children from 60 countries in the camps who are the responsibility of their member states, not of Syria or the groups that control the camps. Kurdish fighters are guarding Al-Hol and other camps as well as thousands of Islamic State fighters and boys in prisons.

He said a number of countries — including Russia and Kazakhstan that convened the virtual meeting — “have collectively repatriated nearly 1,000 children and their family members.”

Voronkov said the experiences of the returnees are being compiled "and what we see thus far is that fears of security risks have been unfounded".

The executive director of the UN Counterterrorism Centre stressed that children “must be treated primarily as victims” and youngsters under the age of 14 should not be detained or prosecuted.

History has shown that children are resilient and can recover from violent experiences if they are supported in reintegrating into communities, Voronkov said.

“Every effort should be made to ensure children are not kept in institutions but allowed to reintegrate with family members within their communities,” he said.

Virginia Gamba, the UN special representative for children and armed conflict, told the Security Council that children catalogued as being associated with armed groups including the Islamic State and al-Qaida "are the children who have been left adrift by conflict, like flotsam in the sea".

She echoed Voronkov’s call that they be treated “primarily as victims, not as security threats and that detention be used as a measure of last resort and for the shortest possible period".

The mental health, safety, and overall development of foreign children held for a long time “in dramatic conditions” in camps in northeast Syria and Iraq “are at stake”, Gamba said.

“They’re exposed to further trauma and stigmatization and are at risk because of their proximity to members of designated terrorist groups,” she said.

Children have a right to a nationality and identity and must not remain stateless, Gamba stressed.

Gamba said the repatriation of foreign children should be prioritised “with the best interest of the child,” and they must be assisted in reintegrating and getting an education, health care, and jobs.

“They must be given their childhood back in a safe environment where they can build a future away from violence,” Gamba said. “They deserve a chance at life, like any other child.”

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Ten people killed, 12 injured in bus-truck collision on Moradabad-Agra highway in Uttar Pradesh

Moradabad: At least 10 people were killed and around a dozen received injuries when a private bus collided with a truck on the Moradabad-Agra Highway on Saturday morning owing to poor visibility due to dense fog, an official said.

Uttar Pradesh chief minister Yogi Adityanath expressed grief and announced a financial assistance of Rs 2 lakh for the kin of the deceased and Rs 50,000 for those injured.

Top police and administration officials including District Magistrate Rakesh Kumar Singh and Senior Superintendent of Police Prabhakar Chaudhary have reached the spot.

The accident took place at around 8 am on the Nanpur-Chandausi stretch of the highway near Manpur village under Kundarki Police Station area here, Singh said.

Rescue operation is underway and the injured have been admitted to a nearby government hospital, Singh said.

The bodies have been sent for post-mortem examination, he said.

In a series of tweets, the chief minister's office said Adityanath has directed officials to ensure proper treatment of those injured.

"Adityanath deeply mourns the death of the people in the road accident in Moradabad. He has expressed his condolences to the bereaved families, praying for the peace of departed souls," the chief minister's office tweeted.

The chief minister has instructed the officers of the district administration to provide proper treatment to the injured in the accident and wished for their speedy recovery.

He has directed that those injured be given Rs 50,000 and kin of the dead be provided Rs 2,00,000 as financial assistance, his office said in another tweet.

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Centre 'continuously' trying to resolve protesting farmers' issues through talks, says Narendra Modi in all-party meet

New Delhi: Prime Minister Narendra Modi on Saturday told leaders of various political parties that his government has been continuously trying to resolve the issues raised by protesting farmers through talks, sources said.

Addressing floor leaders of various political parties at the customary all-party meeting convened by the government for the smooth conduct of the Budget Session, the prime minister said the Centre's proposal on the three new agriculture laws still stands, the sources said.

Citing the prime minister's address at the virtual meeting, they said Modi told the leaders that Tomar was just a phone call away for protesting farmers and the agriculture minister had conveyed the same to farmer leaders earlier this month.

The all-party meeting is convened for the government to put forth its legislative agenda before political parties. Leaders from various parties flag issues they wish to raise during the meeting.

At Friday's meeting, various leaders including Ghulam Nabi Azad of Congress, Sudip Bandyopadhyay of Trinamool Congress, Balwinder Singh Bhunder of Shiromani Akali Dal and Vinayak Raut of Shiv Sena raised the issue of protesting farmers, sources said.

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GPAT 2021: Last date for filling online application form today; apply at gpat.nat.nic.in

The National Testing Agency (NTA) will close the application form for Graduate Pharmacy Aptitude Test (GPAT) today (30 January).

According to a report by Careers 360, eligible candidates can pay the GPAT 2021 registration fees till 31 January. The application form can be filled at the official website gpat.nat.nic.in.

The report added that the NTA will open the GPAT application form correction window 2021 from 1 to 2 February.

Here's how to fill GPAT 2021 application form:

Step 1: Candidates need to visit the official website - gpat.nta.nic.in.

Step 2: Candidates need to click on thelink Apply for GPAT 2021 and then click on 'New Registration' and read all instructions carefully.

Step 3: They need to click on proceed to fill the application form and using GPAT application number, password and login to complete the registration.

Step 4: Submit the personal, academic, BPharm, contact and other asked details carefully.

Step 5: Upload passport size photograph and signature as per specifications mentioned.

Step 6: Candidates need to pay GPAT application form fees in online mode using credit/debit cards, net banking and UPI payment gateway.

According to a report in Scroll, NTA will hold the GPAT 2021 exam on 22 and 27 February. It will be a three-hour exam which will be held in two shift. There is going to be a 9am to 12pm shift and 3pm to 6pm shift. The examination fee is Rs 2,000 for unreserved categories.

GPAT 2021 candidates must have a bachelor's degree in pharmacy courses from a recognised university, college or whose result will be declared before commencement of admission for the academic year 2021-22.

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Farmers' protests: Internet services suspended for two days at Singhu, Ghazipur, and Tikri borders

New Delhi: The Ministry of Home Affairs (MHA) has temporarily suspended internet services at the Singhu, Ghazipur, and Tikri borders, where farmers have been protesting against the new agri laws, an official said on Saturday.

Apart from the three borders of Delhi, internet services will remain suspended in their adjoining areas too effective from 11 pm of 29 January to 11 pm of 31 January, the official said.

The decision has been taken to "maintain public safety and averting public emergency" under Temporary Suspension of Telecom Services (Public Emergency or Public Safety) Rules 2017, the official said.

On 26 January, when large scale violence was reported during the farmers' tractor rally, internet services were temporary suspended in some parts of Delhi.

The Haryana government had on Friday suspended mobile internet services in 17 districts till 5 pm.

Lakhs of farmers across India have spent the last several weeks demanding the Centre to repeal farm reforms they say will leave them at the mercy of large corporate firms.

The tense situation exploded on Republic Day when groups of farmers and others clashed with police during a tractor rally that turned violent. Police had to resort to firing tear gas and lathi charges to control the situation. One farmer died and hundreds of cops were injured.

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