New Delhi: Finance minister Nirmala Sitharaman on Wednesday announced no tax for those with annual income of up to Rs 7 lakh under the new tax regime but made no changes for those who continue in the old regime that provides for tax exemptions and deductions on investments and expenses such as HRA.

In what is being seen as push for salaried class taxpayer to switch to new tax regime where no exemptions on investments is provided, the finance minister in her budget for 2023-24 allowed a standard deduction of Rs 50,000 under the new regime.

The old tax regime provides for a similar deduction and no tax on income up to Rs 5 lakh.

Also, the basic exemption limit has been raised to Rs 3 lakh from Rs 2.5 lakh. A Rs 2.5 lakh basic exemption limit is prescribed in old tax regime.

The move will lead to a saving of Rs 33,800 for those earning up to Rs 7 lakh annually and opting for new tax regime. Those with income up to Rs 10 lakh would save Rs 23,400 and Rs 49,400 saving would accrue to those earning up to Rs 15 lakh.

For high salary people, Sitharaman also reduced surcharge from 37 per cent to 25 per cent for high net worth individuals with income above Rs 2 crore.

This would translate into a saving of around Rs 20 lakh for those having a salary income of about Rs 5.5 crore.

In her Budget speech, Sitharaman said currently individuals with total income of up to Rs 5 lakh do not pay any tax due to rebate.

“It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to Rs 7 lakh,” Sitharaman said, adding that the number of slabs would be reduced to five.

Under the revamped new tax regime, no tax would be levied for income up to Rs 3 lakh. Income between Rs 3-6 lakh would be taxed at 5 per cent; Rs 6-9 lakh at 10 per cent, Rs 9-12 lakh at 15 per cent, Rs 12-15 lakh at 20 per cent and income of Rs 15 lakh and above will be taxed at 30 per cent.

“I propose to extend the benefit of standard deduction to the new tax regime. Each salaried person with an income of Rs 15.5 lakh or more will thus stand to benefit by Rs 52,500,” Sitharaman said.

Deloitte India Partner Neeru Ahuja said that the tweaks made in the new tax regime clearly indicates that government wants salaried class to shift to the new regime, under which exemptions cannot be claimed.

“Usually salaried individuals save to claim benefit of tax deductions. The tweaks in the new tax regime in Budget are aimed at getting people out of that mindset. The government is indicating that the new tax regime is here to stay and may be the only option going forward,” Ahuja said.

The government in Budget 2020-21 brought in an optional income tax regime, under which individuals and Hindu Undivided Families (HUFs) were to be taxed at lower rates if they did not avail specified exemptions and deductions, like house rent allowance (HRA), interest on home loan, investments made under Section 80C, 80D and 80CCD. Under this, total income up to Rs 2.5 lakh was tax exempt.

Currently, a 5 per cent tax is levied on total income between Rs 2.5 lakh and Rs 5 lakh, 10 per cent on Rs 5 lakh to Rs 7.5 lakh, 15 per cent on Rs 7.5 lakh to Rs 10 lakh, 20 per cent on Rs 10 lakh to Rs 12.5 lakh, 25 per cent on Rs 12.5 lakh to Rs 15 lakh, and 30 per cent on above Rs 15 lakh.

The scheme, however, has not gained traction as in several cases it resulted in higher tax burden.

With effect from April 1, these slabs will be modified as per the Budget announcement.

BENGALURU: Unified Payment Interface (UPI), which transformed the payment landscape, has grown from 17% of the total digital transactions in India in FY19 to 52% of the total 8,840 crore financial digital transactions in FY22.

According to the Economic Survey, on average, between FY19 and FY22 CY, growth in UPI-based transactions in value and volume terms has been 121% and 115%, respectively. In December 2022, UPI touched its highest-ever mark with 782 crore transactions worth Rs 12.8 lakh crore.

Apart from India, NPCI, through its international arm NPCIL(National Payments Corporation of India International) is pushing for acceptance of RuPay/UPI powered apps, cross-border remittance and UPI-Like deployment in international markets such as Singapore, UAE, France, the Netherlands, among others.  Also, UPI is one of the major contributory factors to the growth of e-commerce.

Highlighting e-commerce in India, the Economic Survey said fashion, grocery and general merchandise to capture nearly two-thirds of the Indian e-commerce market by 2027. E-commerce firms such as Trell, Meesho, and shop 101, are expanding and gaining popularity in Tier 3 and 4 cities.

The survey also talks about start-ups’ ‘Reverse Flipping'(shifting of start-ups domicile back to India). To accelerate reverse flipping, it suggests measures such as simplification of taxation of Employee Stock Options (ESOPs) and simplifying procedures for capital flows.

Vidit Aatrey, Founder and CEO, Meesho said, “With start-ups exploring IPOs, easier domestic listing for foreign inc entities will bolster our markets. India has over $3T of market cap, of which about 1% comes from tech start-ups. The move will allow our market participants to derive a larger share of the value-creation by these firms.”

Finance Minister Nirmala Sitharaman on Wednesday said the Budget for 2023-24 hopes to build on the foundation of the previous budget and blueprint for India @ 100. She is currently presenting her fifth straight budget at a time when the economy is slowing due to global headwinds and specific sectors need attention.

The minister listed seven priorities of Union Budget 2023-24, including infrastructure, green growth, financial sector and youth power.

She will have to do a tight-rope walk between staying fiscally prudent and general public expectations of lower taxes and a wider social security net, while at the same time firing the engines of the economy before general elections.

NEW DELHI: Shares of most of the Adani Group firms were trading in the negative territory on Tuesday morning, falling for the fourth day running, amid concerns over US-based short seller Hindenburg Research’s report.

Hindenburg released the report on January 24 — the day on which Adani Enterprises’ Rs 20,000-crore follow-on share sale opened for investors.

Adani Group stocks have taken a beating on the bourses after Hindenburg in a report made a litany of allegations, including fraudulent transactions and share price manipulation, at the Gautam Adani-led group.

The allegations have been rejected by the group. For the fourth day running, shares of Adani Total Gas tanked 10 per cent, Adani Green Energy tumbled 9.60 per cent, Adani Transmission declined 8.62 per cent, Adani Wilmar (5 per cent), Adani Power (4.98 per cent), NDTV (4.98 per cent) and Adani Ports (1.45 per cent) on the BSE.

However, Adani Enterprises jumped 5.26 per cent, Ambuja Cements climbed 5.25 per cent and ACC gained 2.91 per cent. Shares of most of the Adani Group firms had ended lower on Monday as well.

On Friday, Adani Group stocks fell up to 20 per cent after Hindenburg made damaging allegations.Stock markets were closed on Thursday on account of Republic Day. Life Insurance Corporation (LIC) issued a statement saying its investments in the group are safe.

“Our total holding in the Adani Group companies under equity and debt on date is Rs 36,474.78 crore. This was Rs 35,917.31 crore as of December 31, 2022. Total purchase value of these equities of the group companies, bought over the past many years, is Rs 30,127 crore and the market value for the same at close of market hours on January 27, 2023 was Rs 56,142 crore,” LIC said.

Punjab National Bank (PNB), which has about Rs 7,000 crore exposure in Adani Group entities, however, said it is keeping a close watch on the developing situation.

LIC stock fell 0.82 per cent on Tuesday morning, while PNB climbed 3.74 per cent.

“Markets will keep an eye on Adani Enterprises’ Rs 20,000 crore follow-on share sale and traders will be keen to know if it will sail through,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Ltd.

In the broader market, the 30-share BSE benchmark quoted 198.15 points or 0.33 per cent lower at 59,302.26.

The years 2003, 2008, 2013 and 2018 marked “pre-election” budgets presented by finance ministers with distinct personalities. They also symbolised tectonic shifts in Indian polity and economy. What would Nirmala Sitharaman symbolise in the 2023 “pre-election” budget?

At 11 AM on February 1, 2023, Nirmala Sitharaman will present the fifth “pre-election” Budget of this century. History buffs who keep tabs on trivia will know that Budget speeches were delivered at 5 PM till 1999 when the first “full term” non-Congress NDA government chose to break away from the imperial tradition. Jaswant Singh delivered the “pre-election” Budget speech in 2003; P Chidambaram twice in 2008 and 2013 and Arun Jaitley in 2018.

Each finance minister had a unique style and represented a decisive phase of political and social churn in India. The suave Jaswant Singh was the original choice of Prime Minister Atal Bihari Vajpayee in 1999 when the NDA won a decisive mandate. He was vetoed by the Sangh Parivar. It was only in the fifth year of his term that Vajpayee got his say. When the man who has presented the most consequential Budget (1991) in independent India Dr Manmohan Singh was anointed as the Prime Minister by the UPA chairperson Sonia Gandhi in 2004, P Chidambaram appeared a natural choice. After all, he was credited with presenting a “dream budget” in the 50th year of Indian independence. 

Articulate and occasionally abrasive, Chidambaram continues to punch above his electoral and political weight. His successor, Arun Jaitley, too punched way above his political and electoral weight. There were many grumbles and murmurs within the Sangh Parivar when Jaitley was given the finance portfolio (along with defence) despite losing badly to Captain Amarinder Singh (then with the Congress) in the 2014 Lok Sabha elections. But the quintessential “Delhi insider” Jaitley was trusted implicitly by Prime Minister Narendra Modi. His successor Nirmala Sitharaman too is in the cabinet having created a record of sorts by becoming India’s first defence and finance minister. 

A lot has changed both politically and economically since Jaswant Singh read the speech in his rich baritone 20 years ago. 

In the political arena, the BJP-led NDA has scripted “history” by winning two successive Lok Sabha mandates. There is an even chance Prime Minister Narendra Modi could equal the record set by Jawaharlal Nehru in 2024 by winning a third consecutive mandate. In the economic arena, three factoids signal the significant change and the significance of the change. In 2003; with a GDP of about $ 600 billion, India was the 12th largest economy. It is now the 5th largest economy with a GDP in excess of $ 3.5 trillion. In 2003, India boasted of $ 113 billion in foreign exchange reserves; they currently stand at $ 560 billion despite the depredations and global headwinds of 2022 that seem to have ensured that many developed countries face a recession or a drastic fall in growth in 2023. In 2003, the Sensex was within touching distance of 6,000 having registered a record 73% gain in one calendar year. Despite headwinds, the Sensex has broken through the psychological barrier of 60,000.  

Dig a little deeper and even more tectonic shifts are discernible in Indian polity and economy since Jaswant Singh read the first “pre-election” speech of this century. The year 2003 armed the high noon of coalition politics in India after decades of Congress dominance. When Sonia Gandhi-led UPA delivered a shock defeat to the Atal Bihari Vajpayee-led NDA in 2004 and won yet another mandate in 2009, it looked as if coalition politics and governments were becoming a permanent feature. The arrival of Narendra Modi has again tilted the scales. By 2003, personality cults were emerging as a new area of interest and study. By 2023, personality cults have become deeply entrenched. Look at Mamata Banerjee, Naveen Patnaik, Y S R Jagan Mohan Reddy, K Chandrashekar Rao, Pinarayi Vijayan and Arvind Kejriwal and you get the picture. The third most consequential change has been the seemingly terminal decline of the Congress and the remarkable resilience and ability of regional parties to withstand the onslaught of the BJP juggernaut. 

When it comes to the economy too, there have been tectonic shifts. Despite implementation glitches and snafus, the GST regime is creating a unified national market. The first baby steps were taken in 2003. The digital revolution is changing the Indian economy in a manner that even experts cannot foresee. Jaswant Singh, for sure, did not see it back in 2003. Then again, after decades of empty rhetoric surrounding “Garibi Hatao”, both the UPA and NDA governments have had spectacular success in reducing poverty. Budgets have played a role in this, as part of overall economic policies and measures. But arguably the most consequential change has been the emphasis on “welfare” schemes designed for the poor. In a manner of speaking, P Chidambaram set the ball rolling in his 2008 “pre-election” Budget speech by announcing a Rs 60,000 crore farm loan waiver. Today, “welfare” has become an integral part of fiscal and monetary policies. Massive increases in tax revenues have enabled finance ministers to play Santa Klaus. When Jaswant Singh read his Budget speech in 2003, total tax revenues were Rs 254,438 crores. As Nirmala Sitharaman gets ready to read her 2023 Budget speech, total tax revenues promise to cross Rs 30 Lakh crores. 

Mumbai: The rupee pared initial gains and slumped 22 paise to close at its all-time low of 83 against the US dollar on Tuesday, pressured by a strong greenback overseas and sustained foreign fund outflows.

At the interbank foreign exchange market, the rupee opened on a positive note at 82.69 against the greenback, but pared the gains and fell to an intra-day low of 83.00.

The domestic currency finally settled at 83.00, down 22 paise over its previous close of 82.78.

The domestic currency had last closed at the 83-mark on October 19, 2021.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 1 per cent higher at 104.55.

Global oil benchmark Brent crude futures inched up 0.02 per cent to USD 85.93 per barrel.

According to Dilip Parmar, Research Analyst, HDFC Securities, the Indian rupee continued its downward drift as importers rushed for dollar buying, while the inflows remained muted as traders awaited Wednesday’s Federal Open Market Committee (FOMC) meeting minutes.

Spot USD-INR has been consolidating in the narrow range of 82.40 to 82.95.

“Looking at the greenback price action against the major currencies, the chance of an upward breakout is higher in the pair. Once the breakout confirms above 83, the short-covering rally will be imminent and levels of 83.50 and 83.70 can be seen in a short span of time,” Parmar added.

The 30-share BSE Sensex ended 126.41 points or 0.21 per cent higher at 61,294.20, while the broader NSE Nifty climbed 35.10 points or 0.19 per cent to 18,232.55.

Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 628.07 crore, according to exchange data.

Anindya Banerjee, VP – Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd, said, “Market will be nervous going into Fed minutes tomorrow night. We expect USD-INR to trade within a range of 82.70 and 83.25.”

Jateen Trivedi, VP Research Analyst at LKP Securities, said the rupee has been trading between 82.50-83.00 since mid-December 2022 and looks set for another round of weakness if it breaches 83.00.

Gunjan Patidar Co Founder Zomato

Online food delivery platform Zomato Ltd said its Co-founder and Chief Technology Officer Gunjan Patidar resigned from the post on Monday.
     
Patidar was one of the first few employees of Zomato and built the core tech systems for the company, it said in a regulatory filing.
     
“Over the last ten-plus years, he also nurtured a stellar tech leadership team that is capable of taking on the mantle of leading the tech function going forward. His contribution to building Zomato has been invaluable,” the company said.
     
It, however, did not disclose the reasons for his resignation.
     
In November last year, another co-founder of the company, Mohit Gupta, resigned. Gupta, who had joined Zomato four-and-half years back, was elevated to co-founder in 2020 from the position of CEO of its food delivery business.
     
Zomato had witnessed some top-level exits last year, including those of Rahul Ganjoo, who was head of new initiatives, and Siddharth Jhawar, the erstwhile vice-president and head of Intercity, and co-founder Gaurav Gupta.

K. Mohammed Haris

New Delhi: Asian Arab Chamber of Commerce (AACC) has appointed K. Mohammed Haris, Managing Director of Mukka Sea Food Industries Pvt. Ltd, Mangaluru as Trade Commissioner for United Arab Emirates by consensus of the Member countries on Wednesday. He was appointed by Saad Al Dabbagh, Chairman at the head office based in Doha, Qatar.

“While I warmly welcome Haris into the board as the Trade commissioner, his experience and commitment to excellence will be a major asset for the Global Trade bodies and especially between India and the Arab nations. Congratulations and best wishes in his new role as Trade Commissioner.” said Saad Al Dabagh in Qatar.

“India-UAE relations are witnessing an unprecedented momentum with a large number of opportunities for cooperation and increasing investments, in key sectors like infrastructure and technology” said Haris who is actively looking at his new role in promoting trade relations between India and the Arab world specifically the United Arab Emirates.

“In the trade world, there is no one quite Haris from Mukka Exports. He is brilliant, hard-working and devoted to getting trade right. He’s been a devoted entrepreneur for nearly two decades on the Fishing and Sea food business, advancing the prosperity of India’s trade narrative. Through his work on various trade agreements, he has opened the doors for Indian businessmen to deliver goods and services in the UAE, strengthening our economy, and securing our leadership abroad,” said Dr Krishnakumar IAS, the former minister of Defense and Agriculture, Govt of India.

Arab world considers it very significant that the Trade Commissioner from India who is inaugurated as the head of the trade commission in the international organization which embodies diversity with many memberships from developing countries in light of maintaining and reinforcing the multilateral trading system. AACC hopes that the Trade Commissioner will address a myriad of challenges facing the India UAE Free trade agreement thorough cooperation with the Members, by demonstrating his deep expertise and experiences, his calibre of coordination with major countries, as well as his managerial ability to run multilateral institutions, which he has previously cultivated in his distinguished capacities in leadership roles and as a founder promoter of Mukka Sea Food Industries Limited. He has worked in different verticals with strategic assignments across companies, said a release.

Mohammed Haris receiving Niryat Shri Award by then President of India Pranav Mukherjee in 2014.

He would help the UAE exporters who can now benefit from greater market access through preferential tariff rates. Some products will be subject to zero tariffs from day one – others will see them reduced over time. The CEPA, which was signed earlier this year, is expected to increase the total value of bilateral trade in goods to over $100 billion and trade in services to over $15 billion within five years, said the release.

He is the Managing Director at Mukka Sea food Exports Limited and his role of building new businesses and forging international relationships with the Arab World qualify him for taking up the role of Trade commissioner for the United Arab Emirates. As a co-founder of SHIPWAVES he was responsible for building the next general digital platform for Global trade by streamlining the supply chain with Cloud and AI and Blockchain technologies. He also set up India’s first steam sterilised fish meal plant with expansion of 8 plants across the globe. Mukka group today has a turnover of over INR 600 Crores (Dhs 300 million) per annum and is one of Asia’s fastest growing companies.

“Haris is a great choice for one of the new Trade Commissioner as he joins the AACC to usher in a new era with more Indian leadership than ever before,” said Tribhuvan Darbari the Vice President of the board. As he has skillfully negotiated trade deals and crafted our nation’s trade policy while gaining a sophisticated understanding of the opportunities available and the challenges facing the Indian market that is looking at 5 Trillion in the short term. I look forward to working with him, as well as the Director General, to resolve the Committee’s long-standing concerns with the Free Trade Agreements. I also look forward to addressing issues that have not always been prioritized, particularly when it comes to climate change, labor, and SME’s economic empowerment. I wish him the very best in this new endeavor and thank him for his commitment to public service.” he said.