Crucial bills such as the Goods and Service Tax (GST) Bill and the Land Bill may not see the light of the day in 2015, but the government most definitely was not sitting idle
Saurabh Mukherjea of Ambit Capital says foreign investors have been voicing doubts on whether they should reduce their India exposure meaningfully, which is a drastic change from last year's sentiments.
Shedding some light over the GDP growth in India, Ritika Mankar Mukherjee, the Economist at Ambit Capital, discusses her estimates and analysis over economic possibilities of what can happen over the days.
The Rajya Sabha approved 24 amendments relating to 16 issues. It also passed the Companies Act Amendment Bill. The Lok Sabha, where the ruling NDA has brute majority, passed the GST Constitutional Amendment Bill and the Land Acquisition Bill. However, both these Bills have been sent to panels or committees in the Rajya Sabha,
Finance Minister Arun Jaitley said in Rajya Sabha that the new law, with stringent provisions, will help "squeeze" black money even as he underlined that the option of 'compliance window', which may run for a few months, was not an amnesty scheme.
While a time schedule can be provided in the motion itself when the GST Bill is referred to the Select Panel, the possibility of a break down of both the houses due to the Amendments suggested by the panel is likely, ultimately leading to a protracted delay, says constitutional expert Subhash Kashyap.
In an interaction with CNBC-TV18's Rituparna Bhuyan, minister of state for finance Jayant Sinha spoke about the government's decision to constitute the Justice AP Shah panel to untangle the minimum alternate tax (MAT) issue, as well as developments such as the passage of the Black Money Bill in Lok Sabha today.
For those wanting to come clean, Finance Minister Arun Jaitley said there would be a compliance window in two parts -- to declare assets and to pay 30 percent tax and 30 percent penalty.
Several important bills like the Black Money Bill, Real Estate Bill and the controversial Land Acquisition Bill are yet to be cleared.
Because of last minute clearances of several important legislations by the Cabinet, which have to be cleared by the Lok Sabha, the government is planning to extend the Lok Sabh session.
The government in March introduced 'The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015' which provides for heavy penalty and stiff punishment of up to 10 years for stashing unaccounted funds abroad.
Post BJP taking the ordinance route to bring about changes in the Land Bill, the leading opposition have cried foul calling it an arm-twisting tactics to grab land of the poor in the name of industrialization.
According to sources, the government is likely to offer 2-3 month compliance window for disclosure and a one-time offer to declare wealth and pay 30 percent tax or 90 percent penalty.
The government has managed to push through quite a few pieces of key legislations like the Insurance Bill, the Coal Bill and the MMDR Bill. Jaitley hopes that the GST Bill which will be introduced post the recess will be passed by general consensus.
The Black Money Bill may also be tabled before the recess. There is expectation that the Black Money Bill will be passed once the Parliament reconvenes.