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Perils of overestimates: Balancing deficit targets with accurate estimates
The sharp downward revision in personal income-tax collections for 2024-25 was perhaps one of the main reasons for the government applying the brakes on its revenue expenditure
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A K Bhattacharya
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Is there a sense of déjà vu in the recently released provisional actual numbers for the Union Budget for 2024-25? These numbers were made public at the end of last month. A quick comparison of these provisional actual numbers with the revised estimate (RE) for 2024-25 shows that the problem of revenue overestimation has resurfaced — after a welcome break of four years.
Note that the RE of the Union Budget for a financial year is released about two months before that year ends. This release coincides with the presentation of the following year's Budget. Thus, the RE of the
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News18
14 hours ago
- News18
Crypto Taxes In India: Step-by-Step Guide To Report And Avoid Penalties In ITR Filing
Last Updated: Crypto Tax In India: If you missed crypto income in earlier ITRs, file a revised return under Section 139(8A) before the deadline. Crypto Taxation In India For ITR Filing 2025-26: Indian investors are increasingly viewing cryptocurrencies as viable investment options. In times of high volatility in the stock market, they are shifting their funds to digital assets in hopes of achieving significant returns. However, as the tax season is ongoing for ITR FY2025-26, crypto traders must report any income from the sale and profit of cryptocurrencies and other digital assets. Failure to do so can result in notices from the Income Tax Department, penalties, interest on unpaid taxes, and potential legal action. In the Union Budget of 2022, the government officially categorised digital assets, including crypto assets, as Virtual Digital Assets. The outcome of this decision was that income from the transfer of virtual digital assets such as crypto and NFTs (non-fungible tokens) will be taxed at a flat rate of 30 per cent. If crypto assets stored in your wallet are not mentioned while filing your tax return, the Income Tax Department may treat them as unexplained income under Section 69A. If you missed including cryptocurrency income in previous ITRs, file a revised return under Section 139(8A) before the deadline. Crypto Tax Filing In India If you have crypto income, you cannot use ITR-1. Most crypto investors need to use: Capital Gains: If you're holding crypto as an investment and selling it occasionally. Flat 30% tax on gains, no deduction allowed (except cost of acquisition). Include: 4% cess 1% TDS (deducted at the time of transaction on exchange) Step 4: Fill Schedule VDA in ITR In the ITR form, go to the 'Schedule – VDA" (Virtual Digital Assets). Provide: Repeat for each transaction or provide consolidated figures if allowed. Step 5: Report in Schedule FA (If using Foreign Exchanges) If you used foreign crypto exchanges (like Binance, KuCoin), fill Schedule FA (Foreign Assets). Disclose: Go to Schedule TDS and cross-check if the 1% TDS deducted by the exchange appears. If not auto-filled, manually add using Form 26AS or TDS certificate from the exchange. If you missed crypto income in earlier ITRs, file a revised return under Section 139(8A) before the deadline. Documentation And Compliance Crypto traders should prepare necessary documents, such as transaction history, wallet details, exchange reports, and TDS details, to avoid fines and further investigation by the Income Tax Department. The declaration of crypto earnings is crucial due to the ITR's separate section under Section 2(47A), categorising them as 'Virtual Digital Assets." Taxation On Virtual Digital Assets In the Union Budget of 2022, the government officially recognised digital assets, including cryptocurrencies, as Virtual Digital Assets. Consequently, income from the transfer of these assets, such as crypto and NFTs (non-fungible tokens), is taxed at a flat rate of 30 per cent. The tax rate, however, is not limited to only 30 per cent and there are other charges included in it as well. For example- if you have earned a profit of Rs 1,000 on the sale of a cryptocurrency amount, then post the deduction of 30 per cent tax, you will not get Rs 700. You will be subjected to a cess charge of 4 per cent and a 1 per cent tax deducted at source (TDS) which makes the total tax rate, i.e.- 35 per cent. Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. About the Author Varun Yadav Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : crypto Crypto-Currency Location : New Delhi, India, India First Published: June 25, 2025, 10:22 IST News business » tax Crypto Taxes In India: Step-by-Step Guide To Report And Avoid Penalties In ITR Filing
Time of India
16 hours ago
- Time of India
Power sector needs ₹42 lakh crore by 2032; Centre flags tariff reforms, transmission gaps at regional meet
New Delhi: India's peak power demand is expected to reach 270 GW by the end of 2025, up from 250 GW recorded in May and 242 GW so far this year, Union Power Minister Manohar Lal said at the Regional Conference for Eastern Region States and Union Territories held in Patna. The Minister said the national grid had transformed into a unified network under the ' One Nation-One Grid ' vision, adding that coordinated planning between the Centre and states was key to ensuring uninterrupted power supply in the coming decade. The country's peak power demand is projected to rise to 446 GW by FY2034–35, he noted. 'The power sector needs an estimated investment of ₹42 lakh crore by 2032. This requires states to ensure resource adequacy, tie up generation capacity, and adopt balanced energy portfolios that include nuclear, renewable and conventional sources,' he said. The meeting was attended by Minister of State for Power and Renewable Energy Shripad Yesso Naik, Odisha Deputy Chief Minister Kanak Vardhan Singh Deo, Bihar Energy Minister Bijendra Prasad Yadav, Jharkhand's Urban Development Minister Sudivya Kumar, and top officials from the Ministry of Power, along with CMDs of key central and state-owned power firms. Manohar Lal said each state should plan for at least one nuclear power plant and expedite approvals to strengthen intra-state transmission. He said ₹1.5 lakh crore in 50-year interest-free loans had been allocated under the 2025–26 Union Budget for capital expenditures by states, including transmission upgrades. 'The share of renewables in India's total power generation has risen from 32% in 2014 to 49% in April 2025. States must promote renewable energy with storage systems and enforce Renewable Purchase Obligations,' the Minister said, adding that India targets 100 GW of nuclear energy capacity by 2047. He urged states to resolve RoW (Right of Way) issues in intra-state transmission, explore diverse funding sources including listing of utilities and tapping multilateral institutions, and adopt power islanding schemes to safeguard against cyberattacks. The Minister said smart metering was key to improving discom efficiency and reducing payment delays. 'States should ensure prepaid smart meters in all government buildings and colonies by August 2025, and for commercial and industrial users by November 2025,' he said. Shripad Yesso Naik asked states to complete PM-KUSUM projects by December 2025 and expedite the PM Surya Ghar Muft Bijli Yojana. Power Secretary Pankaj Agarwal urged states to finalise generation capacity tie-ups aligned with their resource adequacy plans through mechanisms such as TBCB and RTM. He also emphasised the need for grid security protocols and cyber resilience in distribution and transmission networks. States were advised to engage with regulatory commissions to ensure timely tariff orders and bridge the gap between Average Cost of Supply (ACS) and Average Revenue Realisation (ARR) to improve financial viability of power utilities.
Time of India
a day ago
- Time of India
Improve efficiency of discoms; sector needs ₹42 lakh crore investment by 2032: Power Minister Manohar Lal to states
Union Power Minister Manohar Lal on Tuesday asked state discoms to improve efficiency as distribution is the most critical link in the power sector, which requires an overall investment of ₹42 lakh crore by 2032. Addressing the Regional Conference for the Eastern Region States/UTs in Patna, the minister also suggested states consider setting up one nuclear plant in the state. The distribution sector is the most critical link in the power sector value chain and the power sector requires an estimated ₹42 lakh crore investment by 2032, he said. However, it faces challenges due to poor tariff structures, sub-optimal billing and collection, and delayed payments of government department dues and subsidies. He stressed the importance of reducing the AT&C losses and the gap between Average Cost of Supply (ACS) and Average Revenue Realised (ARR). The minister asked states to engage with the Electricity Regulatory Commissions to ensure cost-reflective tariffs and timely issuance of tariff and true-up orders. He pointed out that distribution utilities should further strive to improve efficiency through expediting infrastructure and smart metering works. Smart meters have huge potential to transform the way consumers interact with utilities, using data analytics based on AI/ML tools. States were urged to expedite the installation process of smart meters. Manohar Lal emphasised that the pre-paid smart meters are a way to ensure the timely release of government department dues. He asked states to saturate the installation of prepaid smart meters in all government establishments, including government colonies by August 2025 and to complete the installation of smart meters for commercial and industrial consumers and high-load consumers by November 2025. The minister also assured states of the continuous support of the central government to further strengthen the power sector. He underscored the importance of cybersecurity in the power sector and spoke about Islanding Schemes as effective measures to prevent power outages owing to cyber incidents and enable the resilience of the grid. The minister laid emphasis on ensuring resource adequacy and necessary power generation capacity tie-ups. While formulating resource adequacy plans, states should also ensure a balanced and diversified power generation mix. This should include the addition of nuclear generation capacity with an aim to establish at least one nuclear power project in each state. India's peak electricity demand is projected to reach 446 GW by 2034-35 and meeting this sustainably requires proactive planning and continued coordination between the Centre, states, and other stakeholders. He pointed out that states should work towards resolving the issues faced in the development of intra-state transmission projects. States should explore diverse options for financing, including listing transmission utilities and from multilateral institutions. In the Union Budget 2025-26, an allocation of ₹1.5 lakh crore in 50-year interest-free loans to support states' capital expenditures has been made to strengthen the transmission infrastructure. States should promote renewable energy coupled with energy storage systems in order to ensure reliability of power supply, Manohar Lal said. India is moving towards having an increased share of renewable energy and the same has increased from 32 per cent in 2014 to 49 per cent in April 2025, he added. He also highlighted the national ambition to achieve 100 GW of nuclear energy by 2047. He also nudged states to reinforce the implementation of Renewable Purchase Obligation (RPO) mandates and urged them to form dedicated teams for this critical planning. The minister said India's power system has evolved into a unified national grid, fulfilling the vision of 'One Nation-One Grid' and underlined the importance of a future-ready, modern, and financially viable power sector to fuel the country's growth. He noted that India successfully met a peak power demand of 250 GW in May 2024 and 242 GW thus far in 2025. The peak demand is projected to rise further, reaching approximately 270 GW later this year. This reflects India's transformation from a power-deficit to a power-sufficient nation. He outlined the importance of continuous cooperation and coordination between central and state governments in achieving the vision of Viksit Bharat by 2047.
