Budget 2015: Government proposes composite caps to streamline FDI regime
He said the sectors which are already on a 100 per cent automatic route would not be affected. The move would help in attracting foreign investments into the country.
By PTI | Updated:
NEW DELHI: Seeking to the simplify the FDI regime, the government today proposed to do away with the distinction between different types of foreign investments.
Henceforth, portfolio and foreign direct investments will be treated as one category and will have to comply with FDI norms.
"To further simplify the procedures for Indian companies to attract foreign investments, I propose to do away with the distinction between different types of foreign investments, especially between foreign portfolio investments and foreign direct investments, and replace them with composite caps," Finance Minister Arun Jaitley said in his Budget speech.
He said the sectors which are already on a 100 per cent automatic route would not be affected.
Currently, there are sectors where FDI and FII cap is clearly mentioned but on few others it was not.
The move would help in attracting foreign investments into the country.
During April-January period of the fiscal, FDI grew by 27 per cent to $21.04 billion.
Earlier, there were confusions over the matter. "The move seeks to do away with the different kinds of overseas investment and bring about clarity in the norms," an official said.
It would also help in removing ambiguity on application of sectoral caps, conditionalities and approval requirements in different sectors.
Henceforth, portfolio and foreign direct investments will be treated as one category and will have to comply with FDI norms.
"To further simplify the procedures for Indian companies to attract foreign investments, I propose to do away with the distinction between different types of foreign investments, especially between foreign portfolio investments and foreign direct investments, and replace them with composite caps," Finance Minister Arun Jaitley said in his Budget speech.
He said the sectors which are already on a 100 per cent automatic route would not be affected.
Currently, there are sectors where FDI and FII cap is clearly mentioned but on few others it was not.
The move would help in attracting foreign investments into the country.
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During April-January period of the fiscal, FDI grew by 27 per cent to $21.04 billion.
Earlier, there were confusions over the matter. "The move seeks to do away with the different kinds of overseas investment and bring about clarity in the norms," an official said.
It would also help in removing ambiguity on application of sectoral caps, conditionalities and approval requirements in different sectors.
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The limit of reduction of health insurance premium was enhanced from Rs 15,000 to Rs 25,000. For senior citizens this limit has been increased from Rs 20,000 to Rs 30,000.
"For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens," Jaitley said.
Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.
"For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens," Jaitley said.
Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.
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