5. Govt waives three-year lock-in period on investments made by NRIs in IDFs
Govt has waived 3-year lock-in period on investments made by non-residents in infrastructure debt funds, to promote funding in the infrastructure sector. The amendments in the tax laws were made to provide an exemption from income tax to IDFs in 2011.
6. India Ratings cuts NBFC growth forecast to 10-12 per cent in FY20
India Ratings revised its outlook for the NBFCs to negative from stable maintaining its negative outlook on large ticket housing finance companies (HFCs). Growth forecast for NBFCs for FY-20 revised to 10-12% from the earlier estimate of 15%.
7. Govt notifies 8.65% interest rate for EPFO members
Ministry of Labour and Employment has notified 8.65% rate of interest on EPF deposits for its over 6 crore subscribers. EPFO has been settling EPF withdrawal claims at 8.55% interest rate, approved for 2017-18.
8. Government announces ₹50,000 crore overhaul of export tax refund
scheme
Finance minister Nirmala Sitharaman announced a new scheme to refund the duties and taxes on exports that will replace all existing schemes in a bid to stimulate exports & economy, with a revenue projection of ₹50,000 crores.
9. GSTN makes Aadhaar mandatory for new dealers w.e.f Jan 2020
GST Network has decided to make Aadhaar authentication or physical verification mandatory for new dealers from January 2020 to check malpractices in GST. Those not wishing Aadhaar authentication, physical verification to be carried out in 3 days.
News: Others
1. WPI inflation dips to 1.08% in August
Wholesale price index (WPI)-based inflation for August came in at 1.08 per cent, much lower than 4.62 per cent recorded in the same month last year. The disinflation in core-WPI in August 2019 has further reinforced expectation of a rate cut in the October.
2. IIP growth rises to 4.3% in July, August retail inflation up at 3.2%
India’s factory output accelerated to 4.3% in July from a downward revised 1.2% a month ago while retail inflation quickened to 3.21% in August from 3.15% in the previous month.
3. Indian bonds attract $1.69-bn worth investments in August
India & South Korean bonds secured most of the regional inflows thanks to their high returns. Overseas investors purchased $1.69 billion worth of Indian bonds in August. Last month, Asian bonds received a combined total inflow of $1.79 billion.
4. GST collection up 4.51% in August at ₹98,202 crore
According to Finance Ministry, Gross Goods and Services Tax (GST) collection in August 2019 rose 4.51% year-on-year to ₹98,202 crore but remained below ₹1 trillion mark, which was collected in July this year. About 7.6 million GST returns were filed in August.
5. Date for filing ITRs, Tax Audit Reports extended till October 31
The Central Board of Direct Taxes has extended the due date for filing of income tax returns & Tax Audit Reports from September 30th to 31st Oct 2019.The CBDT said that a formal notification for the same will be issued soon.
Quick revision
| Organization/Parameters | Rate/Figures |
| Corporate tax (Domestic companies) | 25.17% |
| Asian Development Bank | 6.5% (FY20) |
| DBS | 6.2% (FY20) |
| India Ratings (NBFC) | 10-12% (FY 20) |
| EPF interest rates | 8.65% |
| Wholesale price index | 1.08% (Aug) |
| GST collection | ₹98,202 crore (August) |