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Ministry of Finance
Finance Minister announces measures on AatmaNirbhar Bharat 3.0
A new Scheme “Aatmanirbhar Bharat Rozgar Yojana” launched
Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals extended till March 31, 2021 and additional credit up to 20%
Production Linked Incentive worth ₹ 1.46 Lakh crore offered to 10 champion sectors
₹18,000 Crore Additional outlay for PM Awaas Yojana – Urban
Relaxationof Earnest Deposit Money & Performance Security on Government Tenders
Increase in differential between circle rate and agreement value to 20% providing Income Tax relief for Developers & Home Buyers
₹6,000 crore equity investment in debt platform of National Investment and Infrastructure Fund (NIIF)
₹65,000 Crore for subsidized fertilizers provided to support agriculture
Additional outlay of ₹10,000 Crore has been provided for PM Garib Kalyan Rozgar Yojana
₹3,000 crore boost to be given for project exports through assistance given by India to developing countries
₹10,200 crore additional budget stimulus will be provided for capital and industrial expenditure
₹900 crore is being provided for Research and Development of Indian COVID Vaccine
Dated: 12 NOV 2020
Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman has announced 12 key measures, as part of Government of India’s stimulus to the economy, under AatmaNirbhar Bharat 3.0. The net stimulus announced today amounts to ₹ 2.65 Lakh crore. While addressing the Press Conference here today , SmtSitharaman also informed that the total stimulus announced by the Government and Reserve Bank of India till date, to help the nation tide over the COVID-19 pandemic, works out to ₹ 29.87 lakh crore, which is 15% of national GDP. Out of this, stimulus worth 9% of GDP has been provided by the government.
The following are the 12 keyannouncements under AatmaNirbhar Bharat 3.0-
1) AatmaNirbhar Bharat Rozgar Yojana
A new scheme to incentivize job creation during COVID-19 recovery has been launched. If EPFO-registered establishments take in new employees without EPFO registration or those who lost jobs earlier, the Yojana will benefit these employees.
Beneficiaries / New Employees under the scheme would be:
Central Govt. will provide subsidy for two years in respect of new eligible employees engaged on or after 01.10.2020 at following scale:
The scheme will be effective from October 1, 2020 and operational till 30th June 2021. Certain other eligibility criteria would have to be met, and Central Government will provide subsidy for two years in respect of new eligible employees.
2)Emergency Credit Line Guarantee Schemefor MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till March 31, 2021.
A Credit guarantee support scheme ECLGS 2.0 is being launched for Healthcare sector and 26 stressed sectors with credit outstanding of above Rs. 50 crore and up to ₹ 500 Croreas on 29.2.2020stressed due to COVID-19, among other criteria. Entities will get additional credit up to 20% of outstanding credit with a tenor of five years, including 1 year moratorium on principal repayment. This scheme will be available till 31.3.2021.
3) Production Linked Incentive worth ₹ 1.46 Lakh Crore to 10 champion sectors.
10 more Champion Sectors will be covered under the Production Linked Incentives Scheme to help boost competitiveness of domestic manufacturing. This will give a big boost to economy, investment, exports and job creation. A total amount of nearly 1.5 Lakh Crore has been earmarked across sectors, for next five years. The ten sectors are - Advance Cell Chemistry Battery, Electronic/Technology Products, Automobiles & Auto Components, Pharmaceuticals Drugs, Telecom & Networking Products, Textile Products, Food Products, High Efficiency Solar PV Modules, White Goods (ACs & LED), and Specialty Steel.
4) ₹ 18,000 Crore Additional outlay of for PM Awaas Yojana - Urban
A sum of Rs 18000 cr is being provided for PMAY- Urban over and above Rs. 8000 Crore already allocated this year. This will help ground 12 Lakh houses and complete 18 Lakh houses, create additional 78 Lakh jobs and improve production and sale of steel and cement, resulting in multiplier effect on economy.
5) Support for Construction & Infrastructure – Relaxation of Earnest Deposit Money & Performance Security on Government Tenders
To provide ease of doing business and relief to contractors whose money otherwise remains locked up, performance security on contracts has been reduced from 5-10% to 3%.It will also extend to ongoing contracts and Public Sector Enterprises. EMDfor tenders will be replaced by Bid Security Declaration. The relaxations in the General Financial Rules will be in force till December 31, 2021.
6) Income Tax relief for Developers & Home Buyers
Differential between circle rate and agreement value in real estate income tax under Section 43 CA of IT Act has been increased from 10% to 20%. This is for primary sale of residential units up to ₹ 2 Crore (from date of announcement of this scheme, till June 30 2021).Consequential Relief up to 20% shall also be allowed to buyers of these units under section 56(2)(x) of IT Act for the said period.The Income Tax relief provides incentive to middle class to buy homes.
7) Platform for Infra Debt Financing
Government will make ₹6,000 Crore equity investment in debt platform of National Investment and Infrastructure Fund (NIIF), which will help NIIF provide a debt of ₹ 1.1 Lakh Crore for infrastructure projects by 2025.
8) Support for Agriculture: ₹65,000 Crore for subsidized fertilizers
As fertilizer consumption is going up significantly, ₹65,000 Crore is being provided to ensure increased supply of fertilizers to farmers to enable timely availability of fertilisers in the upcoming crop season.
9) Boost for Rural Employment:
Additional outlay of ₹10,000 Crore is being provided for PM Garib Kalyan Rozgar Yojana to provide rural employment. This will help accelerate rural economy.
10) Boost for Project Exports
₹3,000 Crore boost is being providedto EXIM Bank for promoting project exports under Indian Development and Economic Assistance Scheme (IDEAS Scheme). This will help EXIM Bank facilitate Lines of Credit development assistance activities and promote exports from India.
11) Capital and Industrial Stimulus
₹10,200 Crore additional budget stimulus is being provided for capital and industrial expenditure on domestic defence equipment, industrial infrastructure and green energy.
12) R&D grant for COVID Vaccine
₹900 Crore is being provided to Department of Biotechnology for Research and Development of Indian COVID Vaccine.
RM/KMN
(Release ID: 1672321)
Ministry of Finance
Income Tax Department conducts searches in Tamil Nadu
Dated: 07 NOV 2020
The Income Tax Department has carried out searches at 5 locations in Chennai and Madurai on 4.11.2020 in the case of a Chennai based group operating in IT Infra sector.
The search has led to unearthing of evidence relating to investments in a Singapore registered company. The shareholding of this company is held by two companies, one owned by the group searched, while the other company is a subsidiary of a major infrastructure development and financing group. It has been found that the company belonging to the searched group has invested a very nominal amount although it has 72% shareholding, while the other company having 28% shareholding only has invested almost the entire money. This has resulted into a benefit/gain of almost S$7 crore, i.e., around Rs. 200 crore, in the hands of the company belonging to the searched group, which was not disclosed by it in its return of income and also in the FA Schedule. Thus, there is suppression of foreign income received in the form of share subscription equivalent to Rs. 200 crore, which is taxable in India in the hands of the shareholder. Further, proceedings will be initiated under Black Money Act, 2015 for not disclosing foreign assets/beneficial interest in the FA Schedule of the income tax return. The present value of this investment exceeds Rs. 354 crore.
It has been further found during the search that the group had acquired 5 shell companies recently, which were used to siphon out as much as Rs. 337 crore from the main group company by raising bogus bills and without doing any real business in these companies. The siphoned money was transferred abroad and utilized for purchase of shares in the name of the son of the main assessee. One of the directors has admitted that they have diverted funds through these companies.
Evidences have also been found regarding allotment of preference shares worth Rs. 150 crore in 2009 in the group company by passing accounting entries only, to project inflated capital before banks and financial institutions to obtain finances. Allotment of another Rs. 150 crore worth preference shares in 2015 from funds from group companies, who in turn took loans/entries, is being examined.
During the search, it was also found that the group had borrowed funds from banks on interest and diverted to other group companies free of interest for investments in properties. The total interest disallowance on this count works out to about Rs. 423 crore.
Further, the search also revealed that the group had purchased about 800 acres of land worth at least Rs. 500 crore, in the names of various shell companies from the funds provided by the main group concern. Applicability of the Prohibition of Benami Property Transactions Act, 1988 to these transactions is being examined.
It was also seen that there was transfer of substantial share holdings during the current year at a price much lower than the fair market value to be determined as per IT Rules, 1962. In view of this, substantial additions are likely to be made under section 56(2)(x) of the IT Act, 1961(the Act) in the case of the buyer and capital gains under section 50CA of the Act, in the hands of the seller. The quantum of this will be determined in due course.
Thus, the search has led to the detection of unaccounted income of around Rs. 1,000 crore, out of which, disclosure of additional income of Rs. 337 crore has already been made by the assessee, besides actionable issues under Benami and Black Money Acts.
Further investigations are going on.
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RM/KMN
(Release ID: 1670941)
Ministry of Finance
Income Tax Department conducts searches in West Bengal
Dated: 06 NOV 2020
The Income Tax Department has carried out searches on 05/11/2020 in the case of one prominent coal trader of West Bengal having premises in Raniganj, Asansol, Purulia and Kolkata. The searches were based on intelligence gathered, which indicated that large scale unaccounted cash was being generated and used for various purposes.
The searches have led to seizure of documents indicating that companies of the assessee group held bogus investments in unquoted equity shares of paper concerns to the magnitude of around Rs. 150 crore, out of which investments of around Rs. 145 crore have been sold. These sale transactions were found to be sham transactions and have been admitted by the assessee in the statement recorded during the search.
The searches have also led to seizure of a substantial number of incriminating documents showing cash generation in coal and sand trading, sponge iron sales etc. Documents have also been seized indicating huge unaccounted expenses for facilitation of coal transport and various trading activities.
The searches have led to seizure of unaccounted cash and bullion of around Rs. 7.3 crore. Further investigations are going on.
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RM/KMN
(Release ID: 1670627)
Government of India
Department of Revenue
Ministry of Finance
Central Board of Direct Taxes
New Delhi, 29th October, 2020
PRESS RELEASE
Income-tax Exemption for payment of deemed LTC fare for non-Central Government employees
In view of the Covid-19 pandemic and resultant nationwide lockdown as well as disruption of transport and hospitality sector, as also the need for observing social distancing, a number of employees are not able to avail of Leave Travel Concession (LTC) in the current Block of 2018-21.
2. With a view to compensate Central Government employees and incentivise consumption, thereby giving a boost to consumption expenditure, the Government of India allowed payment of cash allowance equivalent to LTC fare to Central Government employees subject to fulfilment of certain conditions vide OM No F. No 12(2)/2020-EII (A) dated 12th October 2020. It has also been provided that since the cash allowance of LTC fare is in lieu of deemed actual travel, the same shall be eligible for income-tax exemption on the lines of existing income-tax exemption available for LTC fare.
3. In order to provide the benefits to other employees (i.e. non-Central Government employees) who are not covered by the above mentioned OM, it has been decided to provide similar income-tax exemption for the payment of cash equivalent of LTC fare to the non-Central Government employees also. Accordingly, the payment of cash allowance, subject to maximum of Rs 36,000 per person as Deemed LTC fare per person (Round Trip) to non-Central Government employees, shall be allowed income-tax exemption subject to fulfilment of conditions specified in para 4.
4. The income-tax exemption to receipt of deemed LTC fare by a non-Central Government employee (‘the employee’) shall be allowed subject to fulfilment of the following conditions:-
(a) The employee exercises an option for the deemed LTC fare in lieu of the applicable LTC in the Block year 2018-21.
(b) The employee spends a sum equals to three times of the value of the deemed LTC fare on purchase of goods / services which carry a GST rate of not less than 12% from GST registered vendors / service providers (‘the specified expenditure’) through digital mode during the period from the 12th of October, 2020 to 31st of March, 2021 (‘specified period’) and obtains a voucher indicating the GST number and the amount of GST paid.
(c) An employee who spends less than three times of the deemed LTC fare on specified expenditure during the specified period shall not be entitled to receive full amount of deemed LTC fare and the related income-tax exemption and the amount of both shall be reduced proportionately as explained in Example-A below.
5. The DDOs shall allow income-tax exemption subject to fulfilment of the above conditions after obtaining copies of invoices of specified expenditure incurred during the specified period. Further, as this exemption is in lieu of the exemption provided for LTC fare, an employee who has exercised an option to pay income tax under concessional tax regime under section 115BAC of the Income-tax Act, 1961 shall not be entitled for this exemption.
6. The clarifications issued by the Department of Expenditure, Ministry of Finance for the Central Government employees vide OM F. No 12(2)/2020-EII (A) Dated 20th October, 2020 and subsequent clarification, if any, issued in this regard shall apply mutatis mutandis to non-Central Government employees also subject to fulfilment of conditions specified in the preceding paras.
7. The legislative amendment to the provisions of the Income-tax Act, 1961 for this purpose shall be proposed in due course.
Example-A
Deemed LTC Fare : Rs.20,000 x 4 = Rs. 80,000
Amount to be spent : Rs. 80,000 x 3 = Rs. 2,40,000
Thus, if an employee spends Rs. 2,40,000 or above on specified expenditure, he shall be entitled for full deemed LTC fare and the related income-tax exemption. However, if the employee spends Rs. 1,80,000 only, then he shall be entitled for 75% (i.e. Rs. 60,000) of deemed LTC fare and the related income-tax exemption. In case the employee already received Rs. 80,000 from employer in advance, he has to refund Rs. 20,000 to the employer as he could spend only 75% of the required amount.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT
Government of India
Department of Revenue
Ministry of Finance
Central Board of Direct Taxes
New Delhi, 27th October, 2020
PRESS RELEASE
Income Tax Department conducts searches in Delhi- NCR, Haryana, Punjab, Uttarakhand and Goa
The Income tax Department has carried out a search and seizure action on 26.10.2020 on a large network of individuals running the racket of entry operation and generation of huge cash through fake billing. The search operations have been conducted on 42 premises across Delhi- NCR, Haryana, Punjab, Uttarakhand and Goa.
The search has led to seizure of evidences exposing the entire network of the entry operators, intermediaries, cash handlers, the beneficiaries and the firms and companies involved. So far, documents evidencing accommodation entries of more than Rs. 500 crorehave already been found and seized.
Several shell entities/firms were used by the searched entry operators for layering of unaccounted money and cash withdrawals against fake bills issued and unsecured loans given. The personal staff/employees/associates had been made dummy directors/partners of these shell entities and all bank accounts were managed and controlled by these entry operators. Statements of such entry operators, their dummy partners/employees, the cash handlers as well as the covered beneficiaries have also been recorded clearly validating the entire money trail.
The searched persons were also found to be controller and beneficial owners of several bank accounts and lockers, opened in names of their family members and trusted employees and shell entities, which they were managing in collusion with the bank officials, through the digital media. The same are being further investigated.
The beneficiaries have been found to have made huge investments in real estate properties in prime cities and in fixed deposits to the tune of several hundred crores of rupees.
During the search, cash of Rs. 2.37 crore and jewellery worth Rs. 2.89 crore has been found along with 17 bank lockers, which are yet to be operated.
Further investigations are in progress.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT