Page 13 - Banking Finance September 2024

ROUNDUP

ment of taxes at a click of a button,
processing of refund payments quickly Sebi looks to set up 2 bodies for better information
by the tax department post income-tax to investors
return filing tax-payers have helped Sebi is looking to set up two new institutions -- Performance Validation
direct tax collections surge in this grow- Agency and Data Benchmarking Institution -- to improve the quality of in-
ing economy," noted Dipesh Jain, part- formation provided to investors in the securities market.
ner at Economic Laws Practice (ELP).
The first institution, Performance Validation Agency, will validate the claims
Gross direct tax mop-up between April of performance related to services offered by Investment Advisors (IAs),
1 - August 11 stood at Rs 8.13 trillion, Research Analysts (RAs) and Algo providers.
up 24% from the year ago period, said
the official release. Data Benchmarking Institution will provide a central repository of
standardised and comparable data related to various asset classes.
Govt amends Budget pro- Both institutions are aimed at improving the quality of information provided
posal on realty capital to investors in the securities market, the Securities and Exchange Board of
India (Sebi) said in its annual report for 2023-24.
gains formula
Additionally, the regulator has proposed to create a closed ecosystem for
FM Nirmala Sitharaman moved fee collection by registered IAs and RAs through a separate mechanism to
amendments to the Finance Bill to ease
help investors ensure that their payments are reaching only registered IAs
the impact of the Budget proposal on and RAs and help them identify, isolate and avoid unregistered entities, who
long-term capital gains tax for real
would be unable to access this closed ecosystem.
estate, giving an option to taxpayers
to choose between the new and old For the year 2024-25, Sebi said that one of its focus areas is capital forma-
tax regimes and pay taxes wherever it tion for real estate and infrastructure sectors, and regulations may need to
is lower and asserted that govt has be customised to facilitate the growth of infrastructure and real estate in
taken a number of measures to mod- our country.
erate the tax burden on the middle
class. bringing is for land and building assets unveiled for four crore youths a Rs 2
Govt had decided to relax the proposal acquired by individuals and HUF before lakh crore mega package of five
on long-term capital gains tax for real July 23, 2024. It stipulates that in the schemes spread over a 5-year period
estate by providing individuals and case of transfer of long term capital to boost jobs, skilling and other oppor-
HUFs (Hindu undivided families) the asset, being land or building or both by tunities. Three new schemes under the
option to pay tax along with index- an individual or HUF which is acquired PM's package will incentivise first-time
ation benefit at 20%, or at 12.5% with- before July 23rd, 2024 the taxpayer employees, providing one-month wage
out indexation, depending on wher- can compute his taxes under the new to new entrants in the workforce in all
ever it was lower. scheme which is 12.5% without index- formal sectors, and also support em-
ation and the old scheme - 20% with ployers.
The move to ease the proposal came indexation and pay such tax which is
against the backdrop of unease among the lower of the two," she said. This comes against the backdrop of
the middle class and the real estate joblessness among youths running into
sector that they would be disadvan- double digits and emerging as a major
taged under the new regime, which Need for speed: FM de- issue in Lok Sabha polls.
does away with the indexation benefit, ploys Rs. 2 Lakh crore According to the Economic Survey, In-
meant to adjust for inflation, while dia needs to generate 78.5 lakh jobs in
lowering the tax rate from 20% to plans to employ, skill 4 the non-farm sector on average per
12.5% as part of a policy tweak to en- crore year till 2030. Govt has said the private
sure that all asset classes face the In a clear recognition of the challenge sector needs to create job opportuni-
same levy instead of multiple rates. of unemployment in a country with the ties as it has robust balance sheets and

"Now, the current amendment we are world's largest young population, govt profitability is at a 15-year high.

12 | 2024 | SEPTEMBER | BANKING FINANCE