FY21 FDI inflows up 10%, highest jump in investments from Saudi Arabia

FY21 FDI inflows up 10%, highest jump in investments from Saudi Arabia

According to the government, India received the highest-ever total foreign direct investment (FDI) inflow of $81.72 billion in FY21, up 10% from 2019-20. Inflows of equities, earnings reinvested, and other capital make up total FDI.

Singapore led the way with a 19 percent increase in foreign direct investment equity inflows over the previous fiscal year, followed by the United States and Mauritius. Saudi Arabia, on the other hand, saw the largest rise in foreign investment of $2.81 billion in FY21 compared to $89.93 million the previous year.

Saudi Arabia is the top investor in terms of percentage rise among the top ten countries in 2020-21, according to the government.

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FDI of $59.64 billion were recorded in FY21, up from $49.98 billion the previous year.

The commerce and industry ministry stated in a statement that “measures implemented by the government on the fronts of Foreign investment policy changes, investment facilitation, and ease of doing business have resulted in higher foreign investment inflows into the country.”

According to the report, foreign investment equity inflows from the US and the UK increased by 227 percent and 44 percent, respectively.

According to the statement, computer software and hardware emerged as the leading sector with roughly 44 percent of total Foreign investment equity investment, followed by Construction (Infrastructure) Activities (13 percent) and Services Sector (8 percent).

FDI
Gujarat, Karnataka, and Delhi are the top recipients of FDI in the Computer Software & Hardware sector

According to the statement, equity in the primary sectors of construction (infrastructure), computer software & hardware, rubber goods, retail trading, drugs & pharmaceuticals, and electrical equipment increased by more than 100 percent in 2020-21 compared to the previous year.

Gujarat is the biggest recipient state for foreign investment equity inflows this year, accounting for 37% of total foreign investment equity inflows, followed by Maharashtra (27%), and Karnataka (27%). (13 percent ).

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5 financial tasks to finish in April

1. Start tax planning for the year

The Financial Tasks mainly includes tax planning, Since tax planning season is still a long way off, few people are thinking about tax savings right now. However, experts advise that you begin tax preparation in April rather than waiting until the last few weeks of the fiscal year and making hasty decisions. Start a SIP in a tax-saving fund right away if you want to invest in ELSS funds. You should have completed 10-12 SIPs by February-March. Starting early also means you won’t run out of cash at the end of the year due to the clumping of tax-saving savings. You’ll have plenty of time to choose the best choice.

Our research shows that investors who took the SIP route earned more than those who waited till March to invest in ELSS schemes. Staggering the investments across 12 months not only cushions you against volatility, but also lightens the burden at the end of the financial year. 

2. To stop TDS, file types 15H or 15G.

To avoid TDS on dividends and interest income, apply Form 15G (for those under 60) or Form 15H (for senior citizens) now. There are certain prerequisites that must be met first. If gross interest income does not surpass the permissible exemption cap (Rs 2.5 lakh) and total income is tax-free, Form 15G may be filed. Form 15H is for senior citizens who have no projected tax liability for the fiscal year. Every year, the forms must be filled out again. Banks now allow for the submission of these forms online, which is a convenient choice for senior citizens, particularly in these times.

3. Invest in a PPF account.

The Public Provident Fund will have better returns than the taxable Provident Fund for investors in the 20% tax band and above.

If you contribute more than Rs 2.5 lakh to the VPF per year but do not have a PPF account, you can open one right away. The PPF will collect 7.1% tax-free returns, compared to 5.85% in the 30%  tax bracket and 6.8% in the 20% tax bracket for Provident Fund. You can open a PPF account online with some banks, such as HDFC Bank and ICICI Bank. Since the PPF has a Rs 1.5 lakh annual investment quota, it cannot fully replace the VPF. Furthermore, if government bond yields continue to fall, rates will fall in the future.

And interestingly if you invest in PPF month on month then it is best to contribute by the 5th of every month as the interest calculation is done on the balance on that day of the month.Also, there can likely be a case that after the political reasons due to which the small savings rate cut was reversed, may still propel the government to again reduce the key small savings rate. So, better to lock in investments at a higher return.

financial tasks

4. Invest in small-scale savings plans.

The government reversed its decision to cut interest rates, giving investors in small savings schemes some relief. However, since government bond yields have been on a downward trend for many months, the rates are likely to fall. Current investments in the PPF and the Sukanya Samriddhi Yojana would be impacted if rates are cut. However, the rate will not adjust in many other schemes, such as the Post Office Monthly Income Scheme, Kisan Vikas Patra, NSCs, and Senior Citizens’ Saving Scheme, until the end of the term. It’s a good idea to lock in these schemes’ current rates before the next round of rate cuts.

THE FINANCE ACT 2021 AMENDS THE CENTRAL GOODS AND SERVICE TAX ACT, THE INTEGRATED GOODS AND SERVICE TAX ACT, AND THE CENTRAL SALES TAX ACT. 

5. You may also contribute more to your EPF:

You can also increase your employee contribution if your wage increases or your discretionary income requires it. But keep in mind that there is a new tax restriction in place for EPF as of this year. Any donation to a PF account that exceeds Rs. 2.5 lakh in a year will now be subject to taxation. To take advantage of rupee cost averaging and to get your investment up to par with your salary increase, consider increasing your investment in other financial assets such as SIPs. As a result, you will be able to achieve your long-term financial goals early in life.

Details on Assessee (Authoritative Guide)

In Simple words, we can say that Assessee is an individual who is at risk to make good on any government expense or any aggregate of sum payable or have any commitment to cover regulatory obligation according to the Section 2(7) of the Income Tax Act,1961.

Likewise assessee can be named as every single individual for whom

  • Any procedures have been taken under the represent the evaluation of his pay
  • Incidental advantages,
  • Pay of some other individual for whom he is viewed as open
  • Any misfortune supported by him or by such other individual or
  • Individual qualified for any expense discount.

Example –

Pay of Mr. Rohan is Rs. 2,50,000 for the evaluation year 2018-19. He doesn’t document his arrival of salary for the year as he is going under the exempted piece. Here the Income Tax Department can not make any move against him. So he isn’t an assessee as no duty or some other total is expected from him for the given Assessment Year.

In a similar case on the off chance that he documents his arrival of pay to guarantee a discount of expense deducted on intrigue paid to him. At that point B is considered as an assessee.

Sorts of Assessee

  • Person
  • Hindu Undivided Family
  • Association Firm
  • Organization
  • Relationship of Persons(AOP) or Body of Individuals(BOI)
  • Nearby Authority
  • Fake Judicial Body(not secured under any of the previously mentioned classifications)

Grouping of Assessee

According to the Income Tax Act, the assessee has been characterized into various classes. For better understanding, we have given depiction about the equivalent

Normal Assessee

An individual is viewed as typical assessee when he is at risk to settle regulatory expense for the salary that is earned by him or the misfortune caused by him in a Financial Year. Furthermore, any individual who is subject to pay any intrigue, punishment to the legislature or qualified for get any discount under the demonstration is viewed as typical assessee.

Delegate Assessee

An individual who isn’t just subject to make good on regulatory obligations for his pay or misfortune yet for money or loss of different people too. As the name proposes, under this class assessee goes about as delegate for the people who might probably make good on their government obligations because of certain reasons. Instances of the delegate assessee are Guardian of Minors, Agent of NRI’s.

Esteemed Assessee

People who are secured under esteemed assessee are-

  • Agents or lawful beneficiary of the property will be treated as considered assessee, where perished individual bites the dust in the wake of composing his will to the lawful beneficiaries and agents.
  • Where an individual kicks the bucket, without composing his or her will. For this situation, his oldest child or if there is some other lawful beneficiary will be considered regarded assessee.
  • Watchmen of Minors, insane person or a moron whose pay is assessable according to the salary charge act, secured under considered assessee.
  • Any individual who is going about as the specialist of NRI having assessable pay in India.

Assessee in Default

An individual is said to be an assessee in default on the off chance that he neglects to consent to the obligations forced or neglects to satisfy the statutory commitment under the Income-Tax Act.

For instance An individual paying enthusiasm to someone else, is in charge of deducting TDS at source on this sum and to store the duty with the legislature. On the off chance that he didn’t pursue any of these obligations, he will be regarded to be an assessee in default. Same path according to area 218, on the off chance that an individual does not pay advance tax(in case going under that) at that point for this situation, he will be viewed as assessee in default.

Distinction between Person and Assessee

Individual Includes-

  • An Individual
  • HUF
  • An organization
  • Firm
  • Relationship of Persons or Body of Individuals
  • A neighborhood Authority
  • Each counterfeit legal individual not going under any of the previously mentioned provisos