Finance

India is likely to allow foreign individuals to invest in mutual funds in the next two weeks but with a cumulative cap of USD 10 billion, an official said today. The detailed guidelines are being worked out jointly by the finance ministry, RBI and Sebi. These will be notified by the capital market regulator, the Finance Ministry official said. Full Article

Commerce Ministry has asked exporters to 'keep their fingers crossed' on their demand for extension of the DEPB, a tax neutralisation scheme on exports, beyond June 30. With the Revenue Department making it clear that the window of the Duty Entitlement Pass Book (DEPB) would close from June end, the exporters are lobbying hard with both the Commerce and Finance ministries for continuation of the sops. Full Article

The Central Board of Direct Taxes (CBDT) will continue to enjoy the power of telephone tapping despite a strong recommendation by a Committee of Secretaries against it following a controversy in the wake of the Niira Radia episode. "The CBDT will continue to have the power of phone tapping subject to certain conditions," an official said. Full Article

The government today said the proposal to impose service tax on healthcare will not hurt the common man as only services provided by the centrally AC hospitals with more than 25 beds would attract the new levy. Full Article

The country's largest insurer, Life Insurance Corporation, plans to approach sector regulator IRDA in the next 8-10 days to get approval for floating infrastructure bonds. Full Article

The government banks on the support of the Bharatiya Janata Party (BJP) to push the Insurance and LIC Bills in the next Parliament session, but it seems to have adopted different tactics on the Goods and Services Tax (GST) Bill. Full Article

Finance minister Pranab Mukherjee today assured the states that the Centre will fully compensate them on possible losses arising from implementation of the goods and services tax (GST) regime. "No state would be allowed to suffer any loss and would be fully compensated by the Central government," he said at a meeting of the National Development Council here today, attended by most of the state chief ministers. Full Article

The central government paid Rs.1,983 crore as income tax refund during financial year 2008-09, while it was Rs.1,308 crore in 2007-08 and Rs.1,922 crore in 2006-07, Minister of State for Finance S.S. Palanimanickam told the Lok Sabha. He said the returns received in financial year 2008-09 could be processed up to March 31 next year. Full Article