Budget 2024 Updates

FM proposes to lessen tedium of TDS; reduces rates in many casesFM overhauls capital gains regime; to come into play from todayFM hikes exemption limit for long-term capital gain to Rs 1.25 lakh + hikes tax rate to 12.5% on specified financial assetsTourism: Temple corridors to be developed in BiharCGST - Finance Bill proposes to amend Sec 9 to take ENA out of purview of GST + inserts Sec 11A to regularise non-levy of tax on general practice in tradeCGST - Sub-sections to be inserted in Act to relax time-limit to avail ITC u/s 16(4) + New Sec 74A proposed to provide for common time limit for demand notices in fraud cases3.4% of GDP allocated as Capital expenditure to support infra sectorCGST - Proviso to be inserted in Sec 30(2) to provide for enabling conditions for revocation of registration + Amendment in Sec 39 to mandate return filing by TDS deductors even if there is no deduction in a particular monthIGST - Amendment proposed to prohibit refund of unutilised ITC on zero-rated supplyIncome tax - Finance bill revamps re-assessment regime againCustoms - Finance Bill proposes to amend Sec 28DA for acceptance of different types of proof of origin under FTAsFM hikes standard deduction to Rs 75K for new ITR regime + revises tax rates for all income slabs + Rs 7000 Cr revenue foregoneIncome tax - Search & Seizure cases - Block assessment is backBudget withdraws 2% equalisation levyFM reduces corporate tax rate for foreign companies to 35%FM proposes vivad se vishwas scheme + hikes monetary limits for filing appealsFM proposes 20% capital gains tax on short-term assets + listed financial assets held for more than one year to be classified as long-termGovt scraps TDS on Mutual Funds + decriminalises delay in depositing TDS + rationalisation of compounding of offences + revamps reassessment periodBudget proposes comprehensive review of I-T Act, 1961 + simplifies provisions for charities and TDSFM reduces customs duty on gold and silver to 6% + Nil BCD on nickel cathodeBudget proposes to reduce BCD on mobile phone and chargers to 15% + exempts 25 minerals from customs dutyFM exempts cancer medicines from Customs duty + amends BCD for various machinesFM proposes Rs 48 lakh expenditure outlay; 4.9% fiscal deficitFM announces Rs 1 lakh crore fund for developing space economyPromotion of Tourism - Vishnupad temple and Bodh Gaya temple corridors to be supportedFM announces over Rs 11 lakh crore capital expenditure in current fiscalGovt to invest in small Nuclear energy plants in partnership with private playersCentre to ask States to lower stamp duty for women purchasers of housesIBC - More Benches of NCLT to be set up to speed up recoveryFM spikes limit of Mudra loan to Rs 20 lakhsBudget offers financial aid to labour-intensive MSMEs in manufacturing sectorGovt announces 3 crore additional houses under PM SchemeGovt to secure Rs 15K loan for AP from multilateral agenciesGovt to frame new policy for all-round development of Bihar, Jharkhand and OdishaGovt to give one-month salary to all new recruits in formal sector through EPFOGovt to promote vegetable clusters closer to urban settlementsGovt to focus on productivity of agriculture with climate-resilient seedsFM allocates Rs 2 lakh outlay for PM's five schemes for job creation and farmersFM Nirmala Sitharaman presents 7th Union Budget in ParliamentBudget 2024: FM arrives at Parliament; Speech to begin at 11AMEconomic Survey 2023-24 - from GST PerspectiveUkrainian FM goes on tour to ChinaI-T- Additions framed u/s 69A are untenable where affidavits submitted by assessee's parents to explain source of cash deposits, were discarded by AO without consideration : ITATSurvey acknowledges productivity loss due to mental health disordersI-T- Short term capital gains returned by the assessee in terms of provisions of section 50 of the Act on assets held for a period of more than 36 months be treated as long term capital gains: ITATExpenditure on social services up from 6.7% to 7.8% of GDP: SurveyI-T-Additions framed u/s 68 are upheld where assessee is unable to prove genuineness of transaction involving purchase and sale of penny stock: ITATTrade deficit contracts to USD 78 bn from USD 126 bn in 2023I-T-Re-assessment is invalidated when there is no failure on part of assessee to make full and true disclosure of facts necessary for assessment: ITATCorporate profitability has peaked to 15-yr-old high between 2020-2023: SurveyI-T- When cash generated out of sales has been credited in the books of accounts, the provisions of Sec.69A could not be invoked: ITATBudget 2024: More relief for senior citizens & individual taxpayers on card; tweaking of capital gains tax likely; steady capital expenditure to stayI-T- If any amount invested is purely a strategic investment & for purpose of commercial expediency, then AO cannot hold such investments to be for non-business purpose: ITATGoogle backpedals on plan to scrap cookies from ChromeCus - For a HNWI individual, an expensive watch of 'Rolex' make would be his personal effect but same may not be the case if the person is of mere means - Pendant studded with diamonds not liable for confiscation: HCGovt amends Recruitment Rules for Debts Recovery TribunalGST - Even if no date, time or place of hearing is indicated in the notice issued, it was the duty of assessee to file his reply to SCN, which was admittedly received - Plea regarding violation of principles of natural justice cannot be countenanced: HCAbhinav Bindra conferred with Olympic OrderGST - Mismatch between value of e-way bills generated on portal and returns filed in Form GSTR-3B - Petitioner did not provide a comprehensive explanation - To remit sum of Rs.3.50 crores within six weeks - Matter remanded: HCHackers mercilessly hack Bangladesh PM’s website along with police portalsGST - Rule 30 of Rules, 2017 - Assessing officer ought to have issued summons and obtained clarification rather than estimating the outward supply value at 110% of purchase value - Order set aside and matter remanded subject to remit of 10% disputed tax demand: HCUS law-makers call for resignation of Secret Service chief in Trump assassination caseGST - Net ITC shown incorrectly - An inadvertent error was committed and such error was rectified, albeit irregularly, however, sum recovered from petitioner's bank account - Order set aside and matter remanded: HCKarnataka IT Industries piling pressure on govt to extend working hoursGST - Since notification is declared unconstitutional, Amount of IGST paid pursuant to Entry No. 10 of Notification No. 10 of 2017 is to be refunded along with statutory interest: HCStudy says earth’s water depleting fastFDI inflows slide to USD 26.5 bn in 2024 from USD 42 bn in 2023: Economic Survey
PM-STIAC discusses Carbon Capture Utilisation & Storage & Carbon Credit in India


By TIOL News Service

NEW DELHI, JULY 10, 2024: THE 25th Prime Minister's Science, Technology & Innovation Advisory Council (PM-STIAC) meeting was chaired by Professor Ajay Kumar Sood yesterday (July 9, 2024) at Vigyan Bhawan Annexe in New Delhi.

Along with the PM-STIAC members, the meeting brought together key government officials and industry players to discuss robust policy formulation for effective Carbon Capture, Utilization, and Storage (CCUS) in India. They discussed the reports prepared by inter-ministerial technical committees constituted by NITI Aayog's Advisory Committee on developing a policy framework for implementing CCUS initiatives in India. The meeting also discussed India's carbon market and carbon credit scheme to reduce emissions, pursue a low-carbon path, and provide market support for mitigation methods and technologies.

India has set a target to achieve a 45% reduction in emission intensity by 2030 and is aiming for Net Zero by 2070. This makes CCUS one of the important measures to achieve decarbonization from the hard-to-abate sectors.

The meeting was joined by Dr. V.K. Saraswat, Member S&T, NITI Aayog, Scientific Secretary Dr. Parvinder Maini, Office of the Principal Scientific Adviser to the Government of India and the Secretaries of all relevant departments including Secretary (Power) Pankaj Agarwal; Secretary (Department of Chemicals and Petrochemicals) Nivedita Shukla Verma; Secretary (Earth Sciences) Dr. M Ravichandran; Secretary (Coal) Amrit Lal Meena; Chairman (Indian Space Research Organisation) Dr. S. Somanath; Chairman (Defence Research and Development Organisation) Dr. Samir V Kamat; Secretary (Biotechnology) Dr. Rajesh Gokhale; and Secretary (Department of Health Research) Dr. Rajiv Bahl.

Representatives from the Ministry of Environment, Forests & Climate Change, the Department of Scientific and Industrial Research, the Ministry of Steel, and the National Council of Cement and Building Materials also participated in the meeting.

In his opening address, Prof. Sood highlighted the government's prioritisation of CCUS as a solution for CO2 emission reduction. He discussed the opportunities for widespread adoption and large-scale deployment of CCUS technologies, focusing on economic feasibility, supportive policy measures, institutional arrangements, and technological feasibility for installing CCUS projects in industries like Power, Iron & Steel, Cement, and Chemicals. He also emphasized the role of carbon markets in promoting CCUS by exploring options such as pricing on carbon emissions and driving investments in emission reduction technologies among others.

Dr. V.K. Saraswat, Member S&T, NITI Aayog noted that technical committees were established by NITI Aayog for adopting CCUS technologies. He highlighted the need for prioritizing R&D, regulatory framework and the way forward to large-scale capacity plants. He asserted the significance of the carbon credit market, suggesting measures such as incentivization to industry to foster its development. Additionally, Dr. Saraswat recommended that hub and cluster approach may be adopted for development of the CCUS ecosystem in the country.

The first session of the meeting commenced with the presentation by Mr. Rajnath Ram, Advisor/Head, Energy, NITI Aayog outlining the findings of the inter-ministerial technical committees' reports on four identified areas of CO2 capture; CO2 utilisation; CO2 transportation and storage; and safety and technical standards development. He highlighted the need for the formulation of the CCUS policy framework in India.

It was followed by presentations by industry experts on synthesizing a complete CCUS value chain in the Indian context and the efforts of power generation companies to promote CCUS in India.

Representative from the Department of Science and Technology and Dr. Vikram Vishal, Professor, Department of Earth Science, IIT Bombay presented the various initiatives in the R&D sector of the CCUS landscape. They highlighted the R&D interventions and the Government of India's support aimed at promoting CCUS in India.

In the second session, the Bureau of Energy Efficiency presented on the Indian carbon market and carbon credit scheme.

After the presentations, the Chair invited interventions from the representatives of the inter-ministerial technical committees. It was discussed that there is a need to identify adoptable technologies and life-cycle assessment of CCUS projects. It was also discussed that while standards for carbon capture and storage are in place, standards for carbon utilisation and transportation are being developed.

Thereafter, Secretaries and representatives of ministries gave their inputs on how various ministries and departments of Government of India can work together to address this important issue. It was suggested that a national portal for CCUS projects may be developed to bring all stakeholders on a common platform.

During their interventions, the PM-STIAC members emphasized the need for institutional mechanisms for CCUS R&D, implementation, and policy framework. Further, community awareness and outreach for CCUS were emphasized. The need for mapping of emission data was also discussed.

In his concluding remarks, Prof. Sood emphasised the need to foster nationwide adoption of CCUS technologies and take this initiative forward through a mission-mode approach. He echoed the suggestion made by many participants including Dr. Saraswat that the mission for CCUS may be led by the Ministry of Power as the nodal agency along with other relevant line ministries. This proposal was taken positively by the Secretary, Ministry of Power.


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