Page 12 - Banking Finance July 2025

ROUNDUP

labelled the proposal a vague, populist
attempt at economic stimulus ahead of India to Launch First Nationwide Household Income
the upcoming elections. Survey in 2026

The Ministry of Statistics and Programme Implementation (MoSPI) will con-
FM Urges Regulators to Act duct India's first-ever dedicated household income survey in 2026 to gain
on Unclaimed Financial deeper insights into income distribution and welfare.
Assets A technical advisory group (TEG), chaired by former IMF executive director
Surjit Bhalla, has been constituted to guide the initiative. The TEG will as-
Finance Minister Nirmala Sitharaman sist in defining concepts, designing sampling methodology, and adopting
has urged financial sector regulators to global best practices. The survey also aims to assess the impact of technol-
take concrete steps to reduce the vol- ogy adoption on household income levels.
ume of unclaimed assets, including
bank deposits, dividends, insurance Although MoSPI previously attempted income data collection alongside con-
payouts, pension funds, and shares. sumer expenditure surveys in the 1950s, no information was ever published.
Chairing the 29th Financial Stability and This upcoming effort marks a significant step toward data-driven
Development Council (FSDC) meeting policymaking and economic planning.
in Mumbai, she emphasised the need
for coordinated efforts to refund these Ltd, and Metaltech Motor Bodies also As per the current law, individuals fil-
assets promptly to rightful claimants. secured licences for decontamination ing late returns can still claim refunds,
The Finance Ministry has directed a systems and anti-terror vehicles. but the draft language in the new bill
joint drive involving RBI, SEBI, IRDAI, DRDO Chairman Dr. Samir V. Kamat appears to override this. Experts have
PFRDA, and MCA to hold district-level presided over the licensing event in taken to social media seeking clarifica-
camps for asset recovery. The council Ahilyanagar, Maharashtra. tion from the government.
also discussed global macroeconomic
trends, financial risks, and system resil- New I-T Bill May Deny Re- Govt Likely to Fix Refund
ience, underscoring the need for en-
hanced inter-regulatory coordination. funds on Late Return Fil- Clause in New I-T Bill After
ings Backlash
DRDO Transfers Tech Li-
The proposed Income Tax Bill 2025, The Income Tax Bill, 2025, introduced
cences to 10 Firms to introduced in the Lok Sabha, has raised in the Lok Sabha, sparked concern by
Boost Defence Manufac- concerns over refund eligibility for tax- suggesting that taxpayers filing returns
payers who file their returns after the
turing due date. Experts warn that Clause after the due date may lose eligibility
The DRDO's Vehicles Research & De- 263(1)(a)(ix) of the draft bill mandates for refunds. Clause 263(1)(a)(ix) man-
velopment Establishment (VRDE) has that returns must be filed on time to dates that returns must be filed before
transferred production licences for claim any refund, diverging sharply the due date to claim refunds, diverg-
nine defence technologies to 10 public from the current Act, which allows ing from the current law allowing be-
and private sector firms in a push to refunds even on belated filings until lated returns till December 31.
strengthen India's defence manufac- December 31 of the assessment year. Additionally, Clause 433 restricts refund
turing ecosystem. claims only to return filing, further
Furthermore, Clause 433 states that
Bharat Electronics Ltd (BEL) received refunds must be claimed only through complicating the issue. Experts
contracts for the CBRN Recce Vehicle return filing, adding to the ambiguity. warned this could disadvantage indi-
MkII and an expandable mobile shel- Tax professionals argue that these pro- viduals with genuine delays, even if
ter. Bharat Forge will produce a visions could unfairly penalize taxpay- excess TDS was deducted. However, a
mounted gun system (MGS) based on ers with genuine delays-such as those finance ministry official clarified that
the 155mm ATAGS platform. with excess TDS deductions-by disquali- this contradiction arose from a draft-
Dass Hitachi, Goma Engineering, BEML fying them from refunds. ing error and would be corrected.

BANKING FINANCE | JULY | 2025 | 11