Published By : Admin |
September 20, 2019 | 12:44 IST
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The Government has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019. This was announced by the Union Minister for Finance & Corporate Affairs Smt Nirmala Sitaraman during the Press Conference in Goa today. The Finance Minister elaborated further , the salient features of these amendments , which are as under:-
a. In order to promote growth and investment, a new provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any domestic company an option to pay income-tax at the rate of 22% subject to condition that they will not avail any exemption/incentive. The effective tax rate for these companies shall be 25.17% inclusive of surcharge & cess. Also, such companies shall not be required to pay Minimum Alternate Tax.
b. In order to attract fresh investment in manufacturing and thereby provide boost to ‘Make-in-India’ initiative of the Government, another new provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any new domestic company incorporated on or after 1st October 2019 making fresh investment in manufacturing, an option to pay income-tax at the rate of 15%. This benefit is available to companies which do not avail any exemption/incentive and commences their production on or before 31st March, 2023. The effective tax rate for these companies shall be 17.01% inclusive of surcharge & cess. Also, such companies shall not be required to pay Minimum Alternate Tax.
c. A company which does not opt for the concessional tax regime and avails the tax exemption/incentive shall continue to pay tax at the pre-amended rate. However, these companies can opt for the concessional tax regime after expiry of their tax holiday/exemption period. After the exercise of the option they shall be liable to pay tax at the rate of 22% and option once exercised cannot be subsequently withdrawn. Further, in order to provide relief to companies which continue to avail exemptions/incentives, the rate of Minimum Alternate Tax has been reduced from existing 18.5% to 15%.
e. In order to stabilise the flow of funds into the capital market, it is provided that enhanced surcharge introduced by the Finance (No.2) Act, 2019 shall not apply on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for securities transaction tax, in the hands of an individual, HUF, AOP, BOI and AJP.
f. The enhanced surcharge shall also not apply to capital gains arising on sale of any security including derivatives, in the hands of Foreign Portfolio Investors (FPIs). In order to provide relief to listed companies which have already made a public announcement of buy-back before 5th July 2019, it is provided that tax on buy-back of shares in case of such companies shall not be charged.
g. The Government has also decided to expand the scope of CSR 2 percent spending. Now CSR 2% fund can be spent on incubators funded by Central or State Government or any agency or Public Sector Undertaking of Central or State Government, and, making contributions to public funded Universities, IITs, National Laboratories and Autonomous Bodies (established under the auspices of ICAR, ICMR, CSIR, DAE, DRDO, DST, Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting SDGs.
The total revenue foregone for the reduction in corporate tax rate and other relief estimated at Rs. 1,45,000 crore.
Today the youth of India is full of new confidence, succeeding in every sector: PM Modi
December 23, 2024
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Rozgar Melas are empowering the youth and unlocking their potential, Best wishes to the newly inducted appointees: PM
Today the youth of India is full of new confidence, succeeding in every sector: PM
The country had been feeling the need for a modern education system for decades to build a new India, Through the National Education Policy, the country has now moved forward in that direction: PM
Our effort is to make women self-reliant in every field: PM
Namaskar!
My cabinet colleagues, other dignitaries from across the country, and my young friends!
I returned from Kuwait late last night. There, I had an extensive meeting with Indian youth and professionals, engaging in meaningful discussions. Now, upon my return, my very first programme is with the youth of our nation—a delightful coincidence indeed. Today marks a significant milestone for thousands of young individuals like you. A new chapter in your lives is unfolding. Your years of dreams have come to fruition, and your relentless efforts have borne fruit. This passing year of 2024 is leaving you and your families with newfound joy. I extend my heartfelt congratulations to each of you and your families on this remarkable achievement.
Friends,
Maximising the potential and talent of Bharat's youth remains the foremost priority of our government. We have been steadfastly working towards this goal through initiatives like Rozgar Melas (job fairs). Over the past decade, a comprehensive campaign to provide government jobs has been underway across various ministries, departments, and institutions. Even today, more than 71,000 young individuals have been handed appointment letters. In the last one and a half years alone, our government has provided permanent government jobs to nearly 10 lakh youth—a record in itself. Such a mission-driven approach to offering permanent employment within the Government has never been witnessed under any previous administration. Moreover, these opportunities are being provided with absolute honesty and transparency. I take pride in the fact that young individuals, nurtured in this transparent tradition, are serving the nation with utmost dedication and integrity.
Friends,
The progress of any nation is intrinsically linked to the efforts, capabilities, and leadership of its youth. Bharat has resolved to emerge as a developed nation by 2047, and we firmly believe in this aspiration. Our confidence stems from the fact that Bharat's talented youth are at the heart of every policy and decision. Over the past decade, initiatives such as Make in India, Atmanirbhar Bharat Abhiyan, Startup India, Stand Up India, and Digital India have all been crafted with the youth as their focal point. Bharat has reformed policies in sectors like space and defence manufacturing, empowering its youth to take full advantage of these opportunities. Today, Bharat's youth radiate confidence, excelling in every domain. We have ascended to become the world’s fifth-largest economy and boast the third-largest startup ecosystem globally. When a young individual embarks on a startup journey today, a robust ecosystem supports them. Similarly, when a youth envisions a career in sports, they can do so with unwavering confidence without the fear of failing. Modern facilities, ranging from training to competitive tournaments, are being established to ensure success. Across various sectors, we are witnessing a remarkable transformation. Bharat is now the world’s second-largest mobile manufacturer. From renewable energy to organic farming, from the space sector to defence, and from tourism to wellness, the nation is scaling new heights and creating unprecedented opportunities.
Friends,
We must cultivate the talents of our youth to propel the nation forward, a responsibility that rests largely with our education system. For decades, the nation has felt the need for a modern educational framework to build a new Bharat. With the National Education Policy, we have embarked on this transformative journey. The education system, which once constrained students with its rigidity, now offers them a wealth of new opportunities. Initiatives like Atal Tinkering Labs and modern PM-SHRI schools are fostering an innovative mindset from an early age. Previously, language posed a significant barrier for rural, Dalit, backward, and tribal youth. To address this, we introduced policies enabling education and examinations in regional languages. Today, our government allows recruitment examinations to be conducted in 13 different languages. Additionally, to empower the youth in border districts, we have increased their recruitment quotas and initiated special recruitment drives. As a result, more than 50,000 young individuals have received appointment letters for positions in the Central Armed Police Forces. I extend my heartfelt congratulations to all these young people.
Friends,
Today also marks the birth anniversary of Chaudhary Charan Singh ji. Our government is privileged to have conferred the Bharat Ratna upon Chaudhary Sahab this year. I pay my respectful tribute to him. We celebrate this day as Kisan Diwas or National Farmer's Day, and on this occasion, I salute all the farmers of our nation, our food providers.
Friends,
Chaudhary Sahab often remarked that Bharat would advance only if its rural areas flourished. Today, our government’s policies and decisions are creating new employment and self-employment opportunities in rural Bharat. A substantial number of young people have found meaningful employment in the agricultural sector, engaging in work that aligns with their aspirations. Under the Gobardhan Yojana, the construction of hundreds of biogas plants has not only generated electricity but also provided jobs to thousands of youth. The integration of hundreds of agricultural markets into the e-NAM Yojana has opened numerous employment avenues. Similarly, the government’s decision to increase ethanol blending to 20 per cent has not only benefited farmers but also created jobs in the sugar sector. By establishing nearly 9,000 Farmer Producer Organisations (FPOs), we have enabled farmers to access new markets while creating employment in rural areas. Today, the government is implementing the world’s largest food storage scheme, building thousands of warehouses. This initiative is poised to generate significant employment and self-employment opportunities. Recently, the government launched the Bima Sakhi Yojana with the aim of providing insurance coverage to every citizen in the country. This programme will also create numerous job opportunities in rural regions. Whether through the Drone Didi Abhiyan, Lakhpati Didi Abhiyan, or the Bank Sakhi Yojana, all these initiatives are driving new employment opportunities in agriculture and rural areas.
Friends,
Today, thousands of young women have been given appointment letters. Your success will serve as an inspiration for countless other women. We are committed to empowering women in every sphere of life. Our decision to grant 26 weeks of maternity leave has safeguarded the careers of lakhs of women, ensuring that their aspirations remain intact. Our government has worked tirelessly to eliminate every obstacle hindering the progress of women. For years after independence, many girls were compelled to abandon their education due to the absence of separate toilets in schools. We addressed this issue through the Swachh Bharat Abhiyan. The Sukanya Samriddhi Yojana has ensured that financial constraints no longer obstruct girls' education. Our government opened Jan Dhan accounts for 30 crore women, enabling them to receive direct benefits from government schemes. Women have also gained access to collateral-free loans under the Mudra Yojana. In the past, women often managed entire households, yet property ownership was rarely in their names. Today, the majority of homes provided under the Pradhan Mantri Awas Yojana are registered in women’s names. Initiatives such as Poshan Abhiyan, Surakshit Matritva Abhiyan, and Ayushman Bharat have significantly improved women’s access to healthcare. Through the Nari Shakti Vandan Act, women have secured reservations in the Vidhan Sabha and Lok Sabha. Our society and country are rapidly advancing towards women-led development.
Friends,
The young professionals receiving appointment letters today will become part of a modernised government system. Over the last 10 years, the outdated image of government offices and their functioning has been transformed. Today, we witness increased efficiency and productivity among government employees, a success achieved through their dedication and hard work. You have reached this milestone due to your eagerness to learn and your determination to excel. Maintain this same enthusiasm throughout your career. The iGOT Karmayogi platform will support your continuous learning journey. It offers over 1,600 diverse courses, enabling you to gain knowledge on various subjects effectively and within a short timeframe. You are young and represent the strength of our nation. There is no goal that our youth cannot accomplish. Begin this new chapter with renewed energy and purpose. Once again, I extend my heartfelt congratulations to all the youngsters who have received appointment letters today. My best wishes for a bright and successful future.
