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Time of India
29-05-2025
- Business
- Time of India
Govt kickstarts exercise for 5-yearly approval of CSSs, CSs
The Finance Ministry on Thursday said the government has kickstarted an elaborate exercise for five yearly appraisals and approval of centrally sponsored schemes and central sector schemes to be made effective from April 1, 2026. The Department of Expenditure under the Ministry of Finance on Thursday organised a workshop chaired by Cabinet Secretary T V Somanathan with the Secretaries of various ministries and departments. Finance Secretary Ajay Seth, Expenditure Secretary Vumlunmang Vualnam and other senior officers were also present. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Never Put Eggs In The Refrigerator. Here's Why... Car Novels Undo Through the workshop, the government has "initiated an elaborate exercise for 'Appraisal and Approval of the Centrally Sponsored Schemes (CSSs) and the Central Sector Schemes (CSs)' for their continuation over the next five years. The new five-year cycle will start on April 1, 2026, and is aligned with the 16th Finance Commission (FC) cycle," the ministry said. During the meeting, the Cabinet Secretary emphasised the rigour of the evaluation process and urged the secretaries to use its recommendations to recalibrate the design and architecture of the scheme, remove redundancies and ineffective suboptimal interventions, merge schemes and close schemes which have either outlived their utility or have fulfilled their objectives. This will enable optimum deployment of scarce public resources, a finance ministry statement said. Live Events Secretaries were informed about the norms likely to be used for deciding the resource envelopes of each department/ministry for its schemes over the next five-year cycle. There are 54 CSSs and 260 CSs which have their terminal date of approval till March 31, 2026 and are likely to be submitted for re-appraisal. A majority of these will also require fresh approval of the Cabinet. Schemes cover a wide gamut from social sectors like health, women and child development, school and higher education, and tribal welfare to the agriculture sector, urban and rural infrastructure, water and sanitation, environment, scientific research etc. The Department of Expenditure also stressed the quality and effectiveness of public expenditure , and in this context, highlighted that such exercise in the past had allowed the central government to enhance its budgeted capital expenditure substantially, which now stands at Rs 11.21 lakh crore for FY 2025-26. The policy of evaluation of ongoing schemes and having a sunset date for each scheme was articulated by the government in the Union Budget Speech of 2016, which stated that in order to improve the quality of public expenditure, every scheme will have a sunset date and an outcome review. Accordingly, the schemes have been aligned with the Finance Commission cycles, and their continuation is based on the evaluation of each scheme by a third party. The government has been funding the development needs of the country through various CSSs and CSs. While in the case of CSs, the government bears 100 per cent of the cost, in the case of CSSs, the scheme expenditure is shared in a predefined ratio between the central and the state governments. It has been a constant endeavour of the Ministry of Finance to enhance the quality of expenditures made under schemes through contemporaneous design and architecture and better targeting. The Development Monitoring Evaluation Organisation (DMEO) in Niti Aayog conducts an evaluation of the CSSs while the evaluation of the CSs is being conducted by third-party agencies selected by the ministry concerned. PTI
Entrepreneur
17-05-2025
- Business
- Entrepreneur
Tax Turmoil: Why India's Crypto Rules Are Pushing Investors Offshore
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. If cryptocurrency were a guest at India's economic dinner table, it would no longer crash the party—it would now be seated, monitored, and asked to show its ID. With the 2025 Budget, India continued to forge a path for streamlined rules and regulations, along with a local dress code for exchanges in the USD 6.4 billion—and growing—digital asset sector. The global crypto m-cap, as per coin market cap, currently stands at approx. USD3.33 trillion. As of 2021, India topped the world in crypto ownership, with over 10.7 crore individuals invested in digital assets. IMARC Group's data suggests that the domestic market could grow to over USD 13.9 billion in 2033 from USD 2.6 billion in 2024. The sector is finding takers across segments and every corner of the country—much like Nagpur-based Ashish Nagose, who believes this asset class could offer a financial cushion for his family-owned flower shop during a slump. India's stance on crypto is evolving—having varied views from the new Finance Secretary Ajay Seth, former RBI Governor Shaktikanta Das, and Finance Minister Nirmala Sitharaman. The current crypto tax framework includes a 30 per cent tax on gains from virtual digital assets (VDAs), a one per cent TDS (tax deducted at source), along no ability to offset losses against other income. These measures have catapulted domestic investors to opt for overseas exchanges such as Binance, KuCoin, Coinbase, Bitget, and Delta Exchange. Flocking To Foreign Exchanges The one per cent TDS saw the migration of three to five million users to offshore platforms in 2023, according to Esya Centre, a Delhi-based tech policy think tank. Trades might prefer offshore exchanges for various reasons, including lower taxes, favourable regulations, or a wider range of available cryptocurrencies. "While the entry process (in India) is more streamlined than in many other countries, global platforms must first clear any pending dues and comply with existing financial obligations," shares Alankar Saxena, co-founder and CTO, Mudrex. Binance and KuCoin re-entered India after paying fines, while Coinbase secured FIU approval for a 2025 relaunch. Recently, Binance came under fire for potential tax evasion as the Income Tax (IT) department sought details on whether the mandatory TDS was being collected or not. Investors have been asked to either provide TDS proof or give justification for failing to do so. Offshore Vs Domestic Players The majority of Indian users on offshore platforms tend to escape TDS, this is either done on purpose or ignorance. Meanwhile, Indian platforms such as Mudrex or CoinSwitch take responsibility for deducting and sending the TDS amount to the government, keeping users at ease. In December 2024, the Indian government uncovered Goods and Services Tax (GST) evasion amounting to INR 824.14 crore across 17 cryptocurrency exchanges. Among them, Nest Services Ltd — linked to the Binance Group — stood out with a staggering alleged GST evasion of INR 722.43 crore. India's crypto regulation remains functional but fragmented. While it addresses certain aspects—such as taxing profits and applying GST or TDS—it lacks a comprehensive regulatory framework that mandates registration, licensing, or full compliance for all crypto platforms, particularly those based overseas. "Without a clear-cut process for registration and tax collection, they are likely to be marked as noncompliant, and their users are also at risk of facing legal penalties," shares Avinash Shekhar, cofounder and CEO, Pi42. The TDS crackdown on Binance and others has been a wake-up call for investors. There has been a notable shift of retail cryptocurrency investors in India moving from offshore exchanges to domestic platforms. "If you're trading in India, using a homegrown platform just makes things easier—faster customer support, better alignment with local rules, and fewer compliance hassles overall. It's like choosing a service that speaks your language—literally and legally," shares Balaji Srihari, vice president, CoinSwitch. "Ultimately, building user trust is essential, and local exchanges are well-positioned to serve investor interests within the regulatory framework," echoes Saxena. Ignorance Is Bliss? Since 2022, industry players have voiced their hopes for a tax revision in pre-budget expectations but in vain. Shekhar feels that the update has not taken place due to the government "viewing it as a way to track and monitor cryptocurrency transactions rather than as a revenue categorising their transactions as "unexplained cash credit" as per the new Income Tax Act amendments and seeking a surged tax of 60-70 per cent. Koinx's founder clarified in one case that this happened due to the lack of buyer information like the PAN card on the user's end. Often, investors use different usernames on crypto exchanges and bank accounts, leading to mismatches that make it difficult to verify transactions. Among crypto transactions, in P2P transactions, the buyer is responsible for deducting TDS and remitting it to the government. It is advised that Indian crypto traders should maintain a detailed record of generating tool." Srihari notes that the conversation on TDS reduction is far from static, "These things often take time, especially when balancing innovation with regulation in a dynamic space like crypto." How does the inability to offset crypto losses against gains distort market participation? Srihari explains, "In the stock market if you make a loss, you can set it off against future gains, which helps reduce your tax burden. But with crypto, you're taxed on the gains, but can't offset the losses—which can discourage participation, especially from serious investors or traders. It feels more like a one-sided deal and adds risk without cushion." The Fine Print The I-T department earlier sent notice to P2P (Peer to Peer) traders on platforms such as Koinx and TaxNodes, categorising their transactions as "unexplained cash credit" as per the new Income Tax Act amendments and seeking a surged tax of 60-70 per cent. Koinx's founder clarified in one case that this happened due to the lack of buyer information like the PAN card on the user's end. Often, investors use different usernames on crypto exchanges and bank accounts, leading to mismatches that make it difficult to verify transactions. Among crypto transactions, in P2P transactions, the buyer is responsible for deducting TDS and remitting it to the government. It is advised that Indian crypto traders should maintain a detailed record of all the crypto transactions, including the KYC details of the counterparties to protect themselves from hefty penalties in the future. Way Ahead India is now reviewing its stance on crypto due to shifting attitudes towards virtual assets in other countries, primarily propelled by US President Donald Trump's crypto-friendly policy announcements. "If regulations keep getting tighter without encouragement for innovation, India can expect to lose even more talent and capital," says Shekhar. Saxena feels the government should establish sandboxes for blockchain startups to test decentralized applications (dApps), DAOs, and tokenized assets without immediate tax or regulatory burdens.
News18
13-05-2025
- Business
- News18
Govt Moves To Shield MTNL From NPA Tag Amid Rs 8,346 Crore Loan Default
Last Updated: A high-level meeting has been scheduled for May 16 under the chairmanship of Cabinet Secretary TV Somanathan to decide the immediate fate of MTNL's debt-laden balance sheet In a renewed bid to stave off the financial collapse of state-owned telecom operator Mahanagar Telephone Nigam Limited (MTNL), the Centre has moved to prevent its ballooning defaults from triggering a full-blown banking crisis. A high-level meeting has been scheduled for Friday, May 16, under the chairmanship of Cabinet Secretary TV Somanathan to decide the immediate fate of MTNL's debt-laden balance sheet. Senior government officials including Economic Affairs Secretary Ajay Seth, Financial Services Secretary M Nagaraju, Expenditure Secretary V Vualnam and Telecom Secretary Neeraj Mittal, will sit down with chiefs of major public sector banks to discuss a path forward. The core agenda of the meeting is to ensure MTNL's defaults, despite being substantial, do not lead to the company being formally classified as a non-performing asset (NPA). The meeting comes in the wake of MTNL's regulatory filing on April 19, in which it disclosed a massive loan default of Rs 8,346 crore between August 2024 and February 2025 – money borrowed from seven state-run banks. The company, once a flagship in the telecom sector, now finds itself on life support, weighed down by a total debt burden of Rs 33,568 crore as of March 31, 2025. According to filings, the largest chunk of the default – Rs 3,633.42 crore – is owed to Union Bank of India. Indian Overseas Bank follows with unpaid dues of Rs 2,374.49 crore. Bank of India is short Rs 1,077.34 crore, while Punjab National Bank, State Bank of India, and UCO Bank are awaiting payments of Rs 464.26 crore, Rs 350.05 crore, and Rs 180.3 crore respectively. All of these include missed interest and principal payments. Government insiders suggest the May 16 meeting is likely to result in instructions to lenders not to classify MTNL's account as an NPA – at least for now – in order to avoid setting off alarm bells across the financial system. The move is seen as part of a broader effort to prevent further exposure risks and delay formal insolvency proceedings, even as the company remains in deep financial distress. Watch India Pakistan Breaking News on CNN News18. 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! First Published: May 13, 2025, 15:46 IST
Time of India
12-05-2025
- Time of India
Two cattle smugglers arrested in encounter in Mirzapur
Varanasi: Two cattle smugglers were arrested after suffering bullet injuries during an encounter with Ahraura police in Mirzapur on Monday. The police also recovered illegal arms and 25 cattle, two pistols, two shells, and four live cartridges from the taking stock of the incident site, Mirzapur ASP (Operations) OP Singh said that after receiving a tip-off regarding the smugglers' plan to use a jungle route to move cattle towards Bihar border , Ahraura police station in-charge Ajay Seth and his team cordoned off the area around 2am. Their movement was noticed in Khoria forest when the police raided the area. Upon finding themselves surrounded by the police, the accused opened fire at the police team. When the police started retaliatory firing in self-defence, two smugglers, Ashok Kumar Rajbhar of Bhabua in Bihar and Manoj Kumar Yadav of Ahraura, suffered bullet injuries in their legs and were arrested. They were rushed to hospital, said the ASP. Many senior officials, including the ASP and CO (Operations) Munendra Pal, reached the spot and interrogated the traffickers. The police filed charges against the traffickers for attempted murder, under the Prevention of Cruelty Against Animals Act, the Arms Act, and other sections. The rescued cattle were handed over to local villagers.
Time of India
03-05-2025
- Business
- Time of India
India abruptly removes IMF board nominee Krishnamurthy Subramanian
NEW DELHI: In a sudden move, govt has removed Krishnamurthy Subramanian , its nominee on the IMF board , six months before his tenure was to end. The decision comes days before a crucial meeting of the IMF board to decide on a fresh $1.3bn climate resilience loan to Pakistan . Govt has upped the ante at multilateral agencies, including World Bank & ADB, seeking to block the flow of financial support to Pakistan. Subramanian did not respond to a text message from TOI late Saturday evening. Finance secretary Ajay Seth frontrunner to replace Subramanian Govt sources said the decision to recall K Subramanian from the IMF board came after the former chief economic adviser in the finance ministry questioned IMF datasets, the latest episode in his skirmishes with the multilateral agency. Besides, there are allegations of impropriety by the Indian School of Business professor in promoting his latest book, 'India @100: Envisioning Tomorrow's Economic Powerhouse'. Govt is yet to name a replacement, although finance secretary Ajay Seth, who retires at the end of June, is seen as a frontrunner for the job. Subramanian, who took up the current assignment in Nov 2022, had been given a three-year term. Govt nominates executive director for India, Bhutan, Bangladesh and Sri Lanka, a post that is now lying vacant, according to IMF website. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cost Of Amusement Park Equipment From Mexico Might Surprise You - See Tips Amusement Park Equipment | search ads Click Here Undo Harischandra Pahath Kumbure Gedara is listed as alternate director. In the past too, IMF has been unhappy with some of the statements made by Subramanian, who in 2021 had decided to step down as CEA after his three-year term ended and return to academia. But, 11 months later, he moved to Washington to take up the role as IMF executive director. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
