Direct tax mop up dips 4.9%
Pakistan saw the highest inflation in the world in the fiscal year 2020, the State Bank of Pakistan (SBP) said. January saw a 12-year high inflation at
14.6 per cent. So, the SBP raised the interest rates to
13.25 per cent. However, due to Covid-led demand contraction, SBP cut interest rates to 5.25 per cent within three months and the inflation slowed down to 8.2 per cent in May, much lower than the SBP projections.
Mumbai, June 7: Edelweiss Alternative Asset Advisors on Sunday said its alternate investment fund, Edelweiss Infrastructure Yield Plus, along with Sekura Roads has acquired two road assets of Vishakhapatnam headquartered Navayuga Group. It, however, did not disclose the acquisition amount.
The fund has acquired two road assets including Navayuga Dhola Infra Projects in Assam and Navayuga Dibang Infra Projects in Arunachal Pradesh.
"These assets have been acquired from Navayuga Road Projects, a subsidiary of Navayuga Engineering Company, making this one of the first infrastructure deals closed in the current lockdown environment," the company said in a statement.
According to industry sources, the approximate value of the transaction could be around $150 million (about Rs 1,125 crore).
Sekura Roads is the road and highway infrastructure platform of the fund, focused on acquiring operating road assets.
"With the acquisition of these road assets, Sekura Roads starts its journey to become one of the leading asset owners and investors in the road sector.
"The fund is looking to contribute in a sustainable manner to the growing infrastructure assets needs of the country by helping the Indian infrastructure companies to recycle their capital and focus on their core business," company said.
With assets of over Rs 28,000 crore under management, Edelweisse focuses on providing long term growth capital to corporates, it said.
"Acquiring operating infrastructure assets provides impetus to the revival of the sector," Edelweiss Global Investment Advisory Deputy CEO Hemant Daga said.
Commenting on the deal, Navayuga Group CFO Sachin Bhansali said, "We are looking to de-leverage our balance sheet and asset monetisation is a critical component. This transaction will significantly ease out the debt position of the group and help free up cash." construction the
New Delhi, June 7: The actual gross direct tax collection during 2019-20 fiscal dipped by 4.92 per cent to Rs 12.33 lakh crore on account on reduction in corporate tax rate, increased standard deduction and personal I-T exemption limit, the Income Tax Department said on Sunday.
However, the gross collections would have clocked a 8 per cent growth to Rs 14.01 lakh crore in 2019-20 if revenue foregone in corporate tax and Personal Income Tax (PIT) is taken into account.
The gross direct tax collection in 2018-19 fiscal stood at Rs 12,97,674 crore.
"It is a fact that the net direct tax collection for the FY 2019-20 was less than the net direct tax collection for the FY 2018-19. But this fall in the collection of direct taxes is on expected lines and is temporary in nature due to the historic tax reforms undertaken and much higher refunds issued during the FY 2019-20," the Central Board of Direct Taxes (CBDT) said in a statement.
The actual corporate tax and PIT revenue mop up stood at Rs 6.78 lakh crore and Rs 5.55 lakh crore, respectively, in 2019-20, taking the total actual direct tax collection to Rs 12,33,720.
During the fiscal, the revenue foregone due to reduction in corporate tax rate was Rs 1.45 lakh crore, while in PIT (due to increased tax rebate limit and standard deduction) it was Rs 23,200 crore.
If this had not happened, then corporate tax and PIT collection in 2019-20 would have been Rs 8.23 lakh crore and Rs 5.78 lakh crore, respectively.
Thus, the gross direct tax mop up would have been Rs 14.01 lakh crore, which would have been a
8.03 per cent growth over
2018-19, it said.
In 2019-20 fiscal, the nominal GDP growth rate was 7.20 per cent.
"By removing the effect of the extraordinary and historic tax reform measures and higher issuance of refunds during the FY
2019-20, the buoyancy of total gross direct tax collection comes to 1.12 and almost 1 for Corporate Tax and 1.32 for Personal Income Tax. These buoyancies indicate that the growth trajectories of both the arms of direct taxes, i.e., Corporate Tax and PIT are intact and are rising steadily.
In FY20, refunds of Rs
1.84 lakh crore were given by CBDT, a 14 per cent rise over Rs 1.61 lakh crore given in FY19.