You are on page 1of 1

4 ECONOMY MUMBAI | WEDNESDAY, 27 DECEMBER 2017

“Some people were assuming that BJP will not “I am not saying that I will come “We will be issuing bids very soon for the pod taxi
come back after Modi left Gujarat as PM. It is a to politics...I will announce my project now, with all hurdles cleared. The safety
matter of immense pleasure that the BJP stand on entering politics on and security concerns will be taken care of as per
managed around 50 per cent vote” December 31” the recommendation of the panel”
DEVENDRA FADNAVIS RAJINIKANTH NITIN GADKARI
Maharashtra Chief Minister Actor Union minister Source: PTI
> .

IN BRIEF
Bar on wilful defaulters not Govt may bring back proposal to SBI mfg index
inches up to
53.1% in Dec
allow fixed-term employment
a moral issue, says IBBI chief
Keeping out wilful defaulters from bidding PRESS TRUST OF INDIA
for stressed assets is not a “moral issue”, Mumbai, 26 December
but a choice between certainty and
uncertainty, IBBI Chairperson M S Sahoo SOMESH JHA Manufacturing activity
said. His comments come against the New Delhi, 26 December TWISTS AND TURNS showed moderate growth
backdrop of the government, through an ordinance last month, with annual SBI Composite
TIMELINE

T
barring wilful defaulters from bidding for stressed assets under the he National Democratic Alliance Index rising to 53.1 in
Insolvency and Bankruptcy Code (IBC). The government will be (NDA) government is exploring 2003: NDA NDA government, the plan following December compared to 53 in
introducing a Bill to replace the ordinance this week in Parliament. the possibility of bringing back a government allows after strong protests from trade the previous month.
Asked whether barring wilful defaulters would narrow the universe controversialproposaltoallowindustries fixed-term demands from unions The SBI Composite Index
of bidders for the stressed assets, the IBBI chief replied in the to hire workers on fixed-term contracts. employment by trade unions has mainly two indices —
negative. “If we keep undeserving people out of the system, it is The move, if given a go-ahead, will 2017: Industries, SBI Monthly Composite
amending the 2015:NDA
not a moral issue,” Sahoo said in an interview. The Insolvency and allow industries to employ workers for particularly food Index and SBI Yearly
Industrial government brings
Bankruptcy Board of India (IBBI) is implementing the Code, which short assignments and terminate their processing units, Composite Index.
Employment back the proposal
came into force late last year. PTI< services once the projects are completed. demand fixed- The month-on-month
“We have received representations (Standing Orders) to allow fixed-term index declined to 50.6,
term employment
from various industries to allow flexibil- Central Rules 1946 employment showing low growth in the
after govt allows it
ity in hiring workers in seasonal jobs. month compared to 51.2 in
Govt expert panel The latest demand has come from the
2007:UPA 2016: Former in textile sector.
November. This indicates a
on clinics to present government Labour and Govt considers
food-processing industry. Instead of giv- possible slowdown in IIP
deletes the bringing back the
recommendations ing sector-wise relaxation, we may look
amendment
Employment
proposed
growth in the next couple
at allowing fixed-term employment for Minister Bandaru of months.
An expert committee set up all the industries,” said a senior labour brought in by the Dattatreya shelves amendment. “We, however, believe
by the Delhi government will and employment ministry official, even though the momen-
Govt to sell stake in soon present its requesting anonymity. tum may have slowed down
IMPCL, invites bids recommendations on the The Union Cabinet had approved a WHAT IS A FIXED-TERM WORKER? HOW IS IT DIFFERENT FROM OTHER WHO WILL BENEFIT? the outlook for some of the
for asset valuer norms to be followed by city special package for the footwear, leather, Workers on a contract basis for a fixed FORMS OF EMPLOYMENT? Industries who look to hire sectors appears largely pos-
hospitals, including in and accessories sector on December 15. period with same working conditions Employers may not give a notice to a workers on a project-basis or itive,” SBI Research said on
The government will sell its medical investigation and The package included allowing fixed- and remunerations as provided by fixed-term worker on non-renewal industries with seasonal Tuesday.
entire stake in Indian for behavioural protocols, a term employment in these sectors “in regular workers in the same factory or expiry of her contract nature of work One such sector is the
Medicines Pharmaceutical member said on Tuesday. order to attract large scale investments at fertilizer sector. The finan-
Corporation Ltd (IMPCL) and is The nine-member panel was global scale”. cials of the 26 fertilizer com-
looking for a firm to value the set up on December 13 and is In October last year, the Ministry of ers as per the demands of the market (Standing Orders) Central (Amendment) ed to dealing with contractors in hiring panies reported an
assets of the company. IMPCL headed by the Director- Labour and Employment had notified and on the other hand, it ensures work- Rules, 2015. However, Bandaru workers,” Bharatiya Mazdoor Sangh improvement in operations
is engaged in manufacture General Of Health Services, changes to the Industrial Employment er hired gets equal benefits and working Dattatreya, who was then labour and (BMS) General-Secretary Virjesh in terms of operational and
and supply of ‘ayurvedic’ and Kirti Bhushan. “Very soon we (Standing Orders) Central Rules, 1946, condition at par with the permanent employment minister, had shelved the Upadhyay said. post-tax growth in the first
‘unani’ medicines and is should be able to come up allowing the apparel manufacturing sec- employee,” the ministry of labour and proposal last year after strong opposition At present, most countries of the half of the fiscal year.
under the administrative with our recommendations. tor to hire workers on fixed-term con- employment had said in a statement in from trade unions. Organisation for Economic Co-opera- The bottom line of the
control of Ministry of AYUSH A large part of the work is tracts. Under fixed-term employment, October last year, while announcing The previous NDA government in tion and Development (OECD) and sector grew by 34 per cent,
with 98.11 per cent stake held over as we have analysed the workers are entitled to all statutory ben- fixed-term employment in the apparel 2003 had allowed hiring fixed-term emerging nations allow using workers while the top line grew by
by Government of India and data on hospitals and efits available to a permanent worker in sector. Companies in seasonal work usu- workers but the United Progressive on fixed-term contracts with several con- only 2 per cent, it said.
the remaining 1.89 per cent nursing homes,” the the same factory. The benefits include ally refrain from hiring permanent work- Alliance (UPA) government in 2007, fol- ditions. The Indian Council for Research The new project
by an Uttarakhand member said. PTI< the same working hours, wages, and ers for project-based jobs because termi- lowing pressure from central trade on International Economic Relations announcement in the fertil-
government PSU. “The allowances. However, employers may nation requires going through the unions, scrapped it. Central trade (Icrier) said in its working paper titled izer sector is showing an
Government of India is not give notice to a fixed-term worker on process of retrenchment under the unions continue to oppose fixed-term ‘Labour Regulations and Growth of upward trend with 13 proj-
considering strategic non-renewal or expiry of his or her con- Industrial Disputes Act. This includes employment. “We are demanding Manufacturing and Employment in ects in FY14 to 34 projects in
disinvestment of 100 per cent tract. In addition, employers can direct- giving notice, paying compensation, and increase in permanent employment. India: Balancing Protection and FY17 entailing an investment
of its equity in IMPCL via a ly hire a worker for a fixed-term without intimating the government. Contractors terminate the employment Flexibility’ that giving fixed-term work- of ~23,614 crore in FY17 from
two-stage auction process. mediation by a contractor. The NDA government had mooted of workers at a time when they get ers a minimum employment contract ~10,172 crore in FY14.
Ministry of AYUSH requires the “It is a ‘win win’ situation for both allowing fixed-term employment in skilled while doing the job. So, instead of for six months and the right to be mem- This indicates some
services of a reputed Asset worker and employer as on one hand, it April 2015 by issuing draft rules to bringing fixed-term employment, the bers of the trade union are important renewed interest in the sec-
Valuer to carry out the provides flexibility for employing work- amend the Industrial Employment government should fix the issues relat- safeguards for fixed-term workers. tor, the report said.
valuation,” the government
said. PTI<
India biz optimism
Triple talaq Bill to
be introduced in
positive, but slides
to lowest in 4 years
Proportion of return filers at lower levels of income declining
Lok Sabha on Dec 28 BusinessleadersinIndia Number of individuals reporting an annual income of more than ~10 lakh has risen by 21 per cent
ABillseekingtocriminalise remainedlargelypositive,but
thepracticeofinstanttriple theirlevelofoptimismhas
talaqamongMuslimsissetto droppedtoitslowestlevelin A K BHATTACHARYA
beintroducedintheLok fouryearsevenasithashita New Delhi, 26 December THREE-YEAR ANALYSIS OF INCOME TAX RETURNS OF
SabhaonThursday.The
MuslimWomen(Protectionof
two-yearhighintheAsia-
Pacific,saysareport. TheCentralBoardofDirectTaxes
INDIVIDUALS
RightsonMarriage)Billis AccordingtothelatestGrant may(CBDT)celebratethearrivalof 2012-13 2013-14 2014-15
listedforintroductioninthe Thornton’sreport,AsiaPacific “acchedin”withthelatestincome- Number of returns filed 33,585,294 36,513,034 40,739,799
LokSabhabyLawMinisterRavi businessoptimismhashita2- taxreturnsdatashowinga23.5per Salary income in ~ crore 833,180 979,910 1,167,746
ShankarPrasadonDecember yearhigh,largelydrivenby centincreaseinthenumberof
House property income (~ cr) 37,443 44,374 27,221
28,accordingtothelistof improvementsfromitstwo individualsreportinganannualgross
businessintheLowerHouse. biggesteconomies,Chinaand totalincomeofover~1croreto59,830. Aggregate tax liability (~ cr) 139,500 191,208 188,029
Thebill,preparedbyaninter- Japan,andregion-wide Butitmayalsoneedtoclosely No of returns with GTI below
ministerialgroupheadedby positivityonprospectsfor examinetherapiddeclineinthe ~ 2.5 lakh 14,711,147 13,715,161 8,198,950
HomeMinisterRajnathSingh, increasedtrade.However,not numberofreturnsbyindividualswho No of returns with GTI above
makesinstanttripletalaqor alltrajectoriesareheading areatthelowerrangesofreported
~5 lakh 7,356,378 8,950,471 11,081,241
talaq-e-biddatinanyform— upwards,thereporttitled‘Asia income.Thisraisesquestionsonthe
spoken,inwritingorby Pacific:tradingandthriving’ efficacyofthegovernment’sdrive No of returns with GTI above
electronicmeanssuchas stated,addingthatIndia’s towardsfilingofmorereturnsby ~10 lakh 2,021,022 2,440,910 2,950,610
email,SMSandWhatsApp— optimismmostlyremained individualsandonwhetherraising No of returns with GTI above
“illegalandvoid”and positiveat75percent,but taxexemptionlevelshasledto ~50 lakh 124,798 147,232 176,731
providesforajailtermofthree “hasdroppedtoitslowest reducedcomplianceinfilingof No of returns with GTI above
yearsforthehusband. PTI< levelinfouryears”. PTI< returnsbythosewhogooutofthetax
~1 crore 44,078 48,417 59,830
net.In2012-13,theshareofreturnsby
individualsdeclaringanannualgross
Business Standard totalincomeoflessthan~2.5lakhwas sharpdeclinecouldbeattributedto havetograpplewithinthecoming INCOME FROM LONG-TERM ~160,000,estimatedbytheCentrefor
MUMBAI EDITION Commerce 43percentofthe33.58millionreturns
filedthatyear.Inthefollowingyear,
twofactors.One,manyindividuals
maybegraduatingtothehigher-
dayswouldbetopreventanyfurther
erosioninthetaxreturnsbaseasand CAPITAL GAINS MonitoringIndianEconomy,orCMIE.

ministry panel
Printed and Published by Sangita Kheora
on behalf of Business Standard Private thelastyearoftheManmohanSingh incomerangeswitheverypassing whenthegovernmentfurtherraises Figures ~ cr ‘12-’13 ‘13-’14 ‘14-’15 Long-term capital gains
Limited and printed at M/s. Dangat Media government,thatsharedeclinedto37 year.Indeed,almostallincome theexemptionlevels.Whatneedsto TheCBDTnumbersalsohaveserious
Individuals 28,686 31,631 37,269
Private Limited,
22 Digha M.I.D.C., TTC Industrial Area,
Vishnu Nagar, Digha, Navi Mumbai,
suggests percentofthe36.51millionreturns
filed.Andduring2014-15,thefirst
rangesabove~2.5lakh(barringa
coupleofhigh-incomeranges)have
bedonetoencourageindividualsto
continuefilingreturnswillhavetobe Companies 16,491 28,899 41,735
implicationsforthefuturetreatment
ofcapitalgainsfromthetaxation
400708 and published at 3rd & 4th Floor,
Building H, Paragon Condominium, Opp. change in yearoftheModigovernment,the
shareofsuchreturnsdroppedtoalow
seenasteadyriseinthenumberof
returnsinthesethreeyears.For
examined.Taxexpertsadmitthatone
ofthepitfallsofraisingtaxexemption
Totalincluding
others 49,154 64,521 84,847
pointofview.Totallong-termcapital
gainsreportedbyalltaxpayersroseto
SEZ rules
Century Mills, P. B. Marg, Worli,
Mumbai - 400 013 20percentofthe40.73million instance,thenumberofreturnsby levelsisthelossofthetaxbaseand anestimated~84,847crorein2014-15,
returnsfiledbyindividuals.The individualsearningbetween~2.5lakh taxpayers’data. a31percentriseover~64,521crorein
Editor : Shyamal Majumdar
A commerce ministry- absolutenumbersareevenmore and~5lakhin2014-15stoodat21.45 INCOME FROM SHORT-TERM 2013-14.In2012-13,totallong-term
RNI NO: 66308/1996
Readers should write their feedback at
appointed panel has suggest- startling.Individualswithanannual million.Thisrepresentedariseof55 Growing middle: 2.95 mn Indians
with income of over ~10 lakh
CAPITAL GAINS capitalgainswereestimatedat
ed that the Board of Approval grosstotalincomeoflessthan~2.5 percentover13.84millionreturns ‘12-’13 ‘13-’14 ‘14-’15 ~49,154crore.However,companies
feedback@bsmail.in
Fax : +91-11-23720201 (BoA), the highest decision lakhfiled14.71millionreturnsin2012- filedbythesamegroupofindividuals Insharpcontrasttothisdeclineinthe havereportedamuchhigherriseof
For Subscription and Circulation making body for SEZs, should 13.Thefiguresfor2013-14and2014-15 in2013-14.Growthinreturnsfiledby numberofreturnsfromlower Individuals 7,375 6,744 15,993 44percentintheirlong-termcapital
enquiries please contact: be given additional powers to were13.71millionand8.19million, thisgroupin2013-14wasjust20per income-earningindividualsisthe Companies 11,686 12,898 35,491 gainsat~41,735crorein2014-15.The
Ms. Mansi Singh
Head-Customer Relations
exempt units and developers respectively,showingadropof7per centoverthepreviousyear. riseinthecategoryofthosewhohave increasein2013-14wasmuchhigher
Business Standard Private Limited. from certain rules to promote centandawhopping40percent. Accordingtosuchanalysis,the beenearningover~1crore.Their Totalincluding at75percentwithlong-termcapital
3rd & 4th floor, Building H, these zones. Thedeclineduringthisperiodis declineinthenumberofreturnsin numberat59,830during2014-15 others 23,048 20,971 73,347 gainsof~28,899crore.
Paragon Condominium, Opp Century Mills,
P B Marg, Worli, Mumbai - 400 013
Under the existing SEZ alsonoticeableineachofthefoursub- thecategorybelow~2.5lakhhasbeen representedajumpof23.57percent Year refers to April-March financial year, when Individualsshowedalowerlevel
the income was earned Source: Govt
E-mail: subs_bs@bsmail.in (special economic zones) categoriesofanannualgrosstotal morethanmadegoodbytherisein over48,417suchindividualsin2013- (GTI: Gross total income) oflong-termcapitalgainsof~37,269
“or sms, SUB BS to 57007” rules, the BoA has no power to incomeofbelow~2.5lakh.The thereturnsfiledunderhigher- 14.Theincreasestandsout crorein2014-15,recordingalower
relax any rule. The inter-min- numberofreturnshasbeensteadily incomecategories.Ineffect,thishas particularlybecausethenumberof reportinganannualgrosstotalincome growthrateof18percentover~31,631
Overseas subscription: isterial board BoA is headed decliningevenforthoseindividuals improvedthetaxadministration’s individualswithanannualgrosstotal ofover~10lakhwashigherat2.95 crorein2013-14.Asimilartrendof
(Mumbai Edition Only)
by the commerce secretary. whodeclaredzeroincome,thosewho productivitywithariseinrevenue incomeofover~1croregrewatamuch millionin2014-15.Comparethatwith companiesaccountingforthelargest
One year subscription rate by air mail
INR 39950 : USD 725
“Even when the BoA con- earnedlessthan~1.5lakh,thosewho collectionsperreturn. lowerrateof10percentin2013-14,the thesteadilyrisingnumbersofsuch chunkprevailedinrespectofshort-
siders it appropriate, it has to earnedbetween~1.5lakhand Thesecondfactorcitedby lastyearoftheManmohanSingh individuals(2.44millionin2013-14and termcapitalgainsaswell.
DISCLAIMER News reports and feature articles in
Business Standard seek to present an unbiased pic- take approval of commerce ~2lakhandalsothosewho thesetaxexpertsisthe government.Thelatestdataalso 2.02millionin2012-13),youcangeta Ifthegovernmentdoesindeed
ture of developments in the markets, the corporate and industry minister. reportedanincomebetween government’sdecisionto provideinterestingpointerstothe senseoftheforcesofIndia’sgrowthin considerremovingtheconcessional
world and the government. Actual developments
can turn out to be different owing to circumstances Hence, wherever BoA feels ~2lakhand~2.5lakh. raisethetaxexemptionlevel reportedincomelevelsinIndia.For theconsumptionofcars,two- taxtreatmentforlong-termcapital
beyond Business Standard’s control and knowl- that there is genuine hard- Thesenumbershavebeen from~1.8lakhto~2lakh(~2.5 instance,howmanyindividualsin wheelers,andahostofwhitegoodslike gains,companieswilltakeabigger
edge. Business Standard does not take any respon-
sibility for investment or business decisions taken by ship to the trade and industry releasedbytheCBDTthroughits lakhforthoseabove60yearsofage)in thiscountryarereportinganannual refrigeratorsandair-conditioners. hit.Andevenamongindividuals,the
readers on the basis of reports and articles pub- and relaxation in SEZ rule is latestreportonincome-taxreturn 2012-13andfurtherto~2.5lakh(~3 grosstotalincomeofover~50lakh? Growthisalittlehigheratthelower burdenwillbebornelargelybythose
lished in the newspaper. Readers are expected to
form their own judgement.
required, it should be statisticsforthe2015-16assessment lakhforthoseabove60yearsofage)in TheCBDTdatarevealthatin2014-15 end.Thenumberofindividualswith earninganannualgrosstotalincome
Business Standard does not associate itself with or empowered to do so,” the year.Anassessmentyearcaptures 2014-15.Thesedecisionsimpliedthat therewereasmanyas176,741 anannualgrosstotalincomeofover~5 between~1croreand~5crore,who
stand by the contents of any of the advertisements
accepted in good faith and published by it. Any
committee said in its report. incomeearnedinthepreviousyear. alargenumberofindividuals, individualswhoreportedanannual lakhin2014-15rosealmost24percent accountedforaboutone-fourthof
claim related to the advertisements should be direct- In order to align the SEZ Grosstotalincomeiswhattaxpayers includingseniorcitizens,wereno grosstotalincomeofover~50lakh. at11.08million.In2013-14,growthfor suchgainsin2014-15.TheCBDTdata
ed to the advertisers concerned. rules 2006 with the goods and reporttotheincome-taxauthorities longerrequiredtofilereturnsasthey Significantly,theirnumberwent thisgroup,estimatedat8.95million, alsoshowhowindividualsreporteda
Unless explicitly stated otherwise, all rights reserved
by M/s Business Standard Pvt. Ltd. Any printing, services tax laws as well as for intheirannualreturnsandthis fellbelowthetaxexemptionlevel. upby20percentover147,232such waslowerat22percent.Thisalso muchlowerhousepropertyincome
publication, reproduction, transmission or redissem- removal of various difficulties amountincludessalary,incomefrom Thatcouldbeonereasonforthe individualsin2013-14.In2012-13,this underlinestheskewinIndia’sincome of~27,221crore,adeclineof39per
ination of the contents, in any form or by any
means, is prohibited without the prior written con- faced, the committee was houseproperty,incomefrom declineinthenumberofreturns figurewas124,798,showinghowthe profile.India’spercapitaincomein centoverthepreviousyear.Thereal
sent of M/s Business Standard Pvt. Ltd. Any such constituted by the ministry business/profession,capitalgains, amongthosewhohadannualgross topincomeearnersinIndiahave 2014-15wasonly~86,454,estimatedby estateslowdownseemstohave
prohibited and unauthorised act by any person/legal
entity shall invite civil and criminal liabilities. to make necessary recom- andincomefromothersources. totalincomesoflessthan~2.5lakh. beengrowinginthisperiod. theCentralStatisticsOffice,andthe adverselyaffectedindividualincome
mendations. PTI Taxexpertspointoutthatthis ThechallengethattheCBDTwill Thenumberofindividuals averagehouseholdincomewas growthalso.
No Air Surcharge