With the nation’s narrative being hijacked by FICN (Fake Indian Currency Notes) and Demonetisation over the last year or so, as part of its larger Make in India initiative, Government of India wants to indigenise currency note production with improved security features.
Plan and Policy
Plan & Policy
The Reserve Bank of India (RBI) will likely have to drain up to $22 billion in excess liquidity from the financial system as surging foreign investments forces the central bank to absorb the dollar inflows and sell rupees to cap gains in the local currency.
Foreign investments into debt and shares have reached a net $31 billion this year, compared with $2.7 billion in sales last year, due to factors including India’s low inflation and improving economic growth.
Gold imports by India are said to have risen in July on arrival of some delayed shipments booked ahead of the implementation of a new national goods and services tax on the first of last month, according to a person familiar with the information.
Inbound purchases rose to 53.4 tonnes last month from 22 tonnes a year earlier, said the person, who didn’t wish to be identified because the data is not public. Sequentially, imports of the metal fell from 72 tonnes in June.
Amid doubts over readiness of businesses to file their first return under the goods and services tax (GST), the government on Wednesday notified the revised timelines for the months of July and August.
Accordingly, outward supplies in Form GSTR-1 for the month of July will have to be filed from September 1 to September 5.
For the month of August, the final returns have to be filed between September 16 and September 20. The original date for filing GSTR-1 was September 10.
The income-tax department detected undisclosed income of Rs 13,715 crore through surveys in 2016-17, minister of state for finance Santosh Kumar Gangwar informed Parliament on Tuesday.
Also, as many as 1.26 crore new taxpayers were added in the last financial year, he said in a written reply in the Rajya Sabha.
India’s industrial output may have contracted in June as companies scaled down output to curb inventories ahead of the goods and services tax (GST) rollout, a poll showed on Tuesday. The index of industrial production data for June is scheduled to be released on Friday.
The index of industrial production (IIP) is likely to have contracted 0.50 per cent in June, the first fall since June 2013, compared with 1.70 per cent growth in May, a TickerNews poll of economists showed.
Online portals selling tour packages and other services will be liable to deduct 1 per cent tax at source under the goods and services (GST) regime as they have been classified as e-commerce operators, the government has said.
Under the new indirect tax regime, an e-commerce company is required to collect 1 per cent of the net value of taxable supplies made through it. The amount so collected is called tax collected at source (TCS), but this provision has been temporarily put on hold.
The rupee has been rallying this year on the back of high real interest rates in India as opposed to zero or negative real interest rate across the world. While surplus global liquidity has aided the rupee’s rise, a weak dollar has also helped. With inflation under control, growth prospects improving, political stability, macro economic indicators looking good, implementation of GST and bankruptcy reforms and lastly high real interest rates, foreign investors continue to pump money in the domestic capital market leading to a gradual appreciation of the rupee against the US dollar.
The rupee has been on a gaining-spree this year. Aided by sustained foreign fund flows, the domestic currency has steadily risen to a two-year high of 63.58 on August 3 from 68-a-dollar in February, which is a rally of 5.8 per cent.
SoftBank CEO Masayoshi Son on Monday said he respected the decision of Snapdeal founders to call off merger talks with Flipkart and the Japanese firm is now pursuing separate discussions with the largest Indian e-tailer.