Page 13 - Banking Finance July 2024

ROUNDUP

mitment to fostering a regulatory en- base effect with a negative growth of
vironment that is not only robust but 2.2 per cent in FY23. Attention Subscribers
also responsive to the evolving needs Please renew your Subscription of The
GDP data, sources said, shows that
of stakeholders," the discussion paper the private non-financial gross fixed Insurance Times Journal to receive
said. capital formation has picked up pace copy of the journal uninterruptedly.
The move is part of the broader efforts in the past two years, with a growth You can now pay by GPAY, Phonepe,
by authorities to cut down on the com- of 4.6 per cent compounded annual Paytm, Amazon, ICICI Pay, BHIM UPI
pliance burden across categories and growth rate in the January-March
ensure greater ease of doing business 2024 period.
and winding up failed ventures.
Tax tribunals allow deduc-
Growth momentum may tions for donations part of

continue in FY25 CSR spend
India's GDP growth of 8.2 per cent in Delhi and Mumbai benches of ITAT re-
FY24 towers above several major
cently allowed a deduction under sec-
economies, with growth momentum
tion 80-G of the I-T Act to two corpo-
continuing into the first two months of rate entities for donations made by
FY25, sources said. them, even though such donations
"Domestic economic activity remains were part of their CSR expenses.
resilient, backed by strong investment
During assessment, I-T officials had
demand, upbeat business and con-
denied the deduction on the ground
sumer sentiments, the robust corpo- that donations, which are part of CSR
rate and bank balance sheets," the
expenses, are not voluntary in nature
source said.
but are a compliance to be made un-
The government would decide in the der the Companies Act. Donations can
FY25 Budget whether the fiscal deficit only be voluntary in nature, was the
target of 5.1 per cent of the GDP can stand taken by I-T officials.
be lowered further to fast track India
Under section 135 of the Companies
towards the fiscal glide path, sources Act read with the rules, companies Sashi Publications Easy Payment
said. Modes :-
having a net worth of Rs 500 crore or i) UPI ID: SASHIBOOKS@KOTAK
They said that with the expectation of more, or turnover of Rs 1,000 crore or ii) GPAY: 9830171022@okbizaxis
a good monsoon, the agriculture sector more, or net profit of Rs 5 crore or
iii) PAYTM: 9830171022@paytm
growth is expected to be better in the more have to comply with the CSR pro-
current financial year. The manufactur- visions. These companies have to spend iv) NEFT: Current A/C
ing sector is also expected to continue at least 2% of their average net profit 402120110000327 of 'SASHI
its growth momentum. Before 2020, for the immediately preceding three PUBLICATIONS PRIVATE
LIMITED, Bank of India, VVK
they had balance sheet issues and the fiscals on CSR activities.
growth was stagnant. In the second Road Branch., Kolkata, India,
Nabin Ballodia, tax partner at BDO-
decade, they are catching up. IFSC Code : BKID0004021
India, states, "Tribunals are now in- v) Credit Card:
The growth in the gross value added creasingly allowing the deduction un-
www.sashipublications.com
(GVA) in the agriculture sector was 1.4 der section 80G. The reason for the
per cent in FY24, against 4.7 per cent allowance is that there is no embargo For any query please call
in FY23. The manufacturing GVA grew under section 80G to disallow the ex- 9073791022/9883398055
by 9.9 per cent in FY24 due to the low penditure." www.sashipublications.com

12 | 2024 | JULY | BANKING FINANCE