Mystery drones, UFOs, Orbs or surveillance tools? Rumors abound over flying ‘objects’ in New Jersey The unexplained appearances have sparked conspiracy theories, with some suspecting government secrecy or even foreign spying. :-The Indian Express

 

Recent sightings of strange flying objects, including drones and UFOs, in New Jersey’s skies have left people curious and concerned. The unexplained appearances have sparked conspiracy theories, with some suspecting government secrecy or even foreign spying.

Red more at The Indian Express

Gucci in Gwalior, Rolex in Nagpur: Luxury finds its way to India’s smaller cities ;-ET

 

Gucci shoes and Louis Vuitton bags aren't just selling in India's big cities. Such high-end consumption patterns are emerging in other towns and locations in the country.

Some of the notable purchases this year on Tata CLiQ Luxury include pre-owned Rolex watches sold in Ajmer and Nagpur, handbags from Mulberry sold in Nadiad and Aligarh, and products from Bulgari sold in Etah and Karimnagar, among other locations.

"Ecommerce has enabled the luxury industry to increase its reach and become more accessible," said Gopal Asthana, CEO of Tata CLiQ. "On Tata CLiQ Luxury, approximately 55% of the platform's overall revenue comes from the non-metro markets."

Its TimeVallee portfolio, featuring brands such as Cartier, IWC, Jaeger-LeCoultre, Panerai and Piaget, also sees approximately 40% of its sales from non-metro markets. "The growing demand not only reflects the evolving aspirations of consumers across India but also reinforces our dedication to making premium and luxury brands accessible nationwide," Asthana said.

'Greater Propensity to Spend' 

Online business from smaller towns is twice as much as last year, said Neeraj Walia, managing director and CEO of Montblanc India.

"We see clients picking up limited editions and special products from Ranchi, Kanpur, Guwahati and Gwalior. We are servicing over 320 cities when it comes to online sales. About a year and a half ago, it would have been around 230," Walia said, adding, "Leather categories are doing extremely well."

Travel retail on the rise

Travel retail has also picked up, with flight connectivity having become more extensive.

"We have boutiques at Bengaluru and Delhi airports and we see clients from non-metros picking up products while they are transiting or moving in and out of the airports," Walia said. Fuelled by high aspirations, India's growth story is playing out far beyond the metros, in tier 2 and 3 cities, said Sandeep Ghosh, group country manager, India and South Asia at Visa.

"With a young demographic and an expanding middle-class, India's tier 2 cities and beyond, are displaying a greater propensity to spend," he said. "Insights from our upcoming Visa Consulting & Analytics India Study shows that in the last five years, across tier 3+ towns, the number of credit cardholders spending above ₹2 lakh annually grew 4x-compared to 1.4x growth in annual card spends in tier 1 cities-indicating a democratisation of affluence of sorts."

Luxury watch sales in India's tier 2 and tier 3 cities are on the rise, driven by increasing digitalisation, said Sanjay Mishra, director, India, FM International Watches & Jewellery Pvt Ltd (Franck Muller).

"Every Indian market has its own significance such as Ahmedabad, which is known for its high-spending capacity and affinity for luxury goods, or Pune, which is a significant market for luxury watches, with consumers seeking premium products," he said. "Lucknow and Kochi are emerging as a key market for luxury watches and Surat has been a promising market due to its per capita spends and proximity to Mumbai. Some customers are spending upwards of ₹26 lakh per annum on luxury goods online. We are planning to have a presence in Ahmedabad in 2025."

Tier 2, 3 locations

At Luxepolis, an online marketplace for certified pre-owned and discounted luxury goods, the share of sales in tier 2, tier 3 locations is up 52% this year from 42% two-three years ago, said founder Vijay KG.

"Our customers are spread across markets such as Surat, Jaipur, Jodhpur, Udaipur, Gangtok and Kochi, Solapur, Aurangabad, Salem and Tiruchirappalli," he said. "There is greater awareness among consumers and we have seen customers from Khammam in Telangana asking for marquee and niche bags from brands such as Givenchy and Chloe."

BSE-listed Ethos Ltd, which retails luxury watches, has launched boutiques in locations such as Kochi, Dehradun and Mangaluru, according to a November investor presentation.

"Since April 2024, we have opened 12 new stores, with plans to open 13 more by the end of financial year 2025, in line with our objective to expand our presence quickly and enter new cities where we currently do not have a presence," MD and CEO Pranav Saboo said in the investor presentation. "We are now operational in 26 cities with a total of 72 stores."

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Defence Minister acknowledges Israel killed Hamas leader Read more at: https://economictimes.indiatimes.com/news/defence/

 

Israel's defense minister has confirmed that Israel assassinated Hamas' top leader last summer and is threatening to take similar action against the leadership of the Houthi rebel group in Yemen. The comments by Israel Katz appeared to mark the first time that Israel has acknowledged killing Ismail Haniyeh, who died in an explosion in Iran in July. Israel was widely believed to be behind the blast and leaders have previously hinted at its involvement.

In a speech Monday, Katz said the Houthis would meet a similar fate as the other members of an Iranian-led alliance in the region, including Haniyeh. He also noted that Israel has killed other leaders of Hamas and Hezbollah, helped topple Syria's Bashar Assad and destroyed Iran's anti-aircraft systems.

"We will strike (the Houthis') strategic infrastructure and cut off the head of the leadership," he said .

"Just like we did to Haniyeh, Sinwar and Nasrallah in Tehran, Gaza and Lebanon, we will do in Hodeida and Sanaa," he said, referring to Hamas and Hezbollah leaders killed in previous Israeli attacks.

The Iranian-backed Houthis have launched scores of missiles and drones at Israel throughout the war, including a missile that landed in Tel Aviv on Saturday and wounded at least 16 people.Israel has carried out three sets of airstrikes in Yemen during the war and vowed to step up the pressure on the rebel group until the missile attacks stop.

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https://economictimes.indiatimes.com/news/defence/defence-minister-acknowledges-israel-killed-hamas-leader/articleshow/116613658.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

China's top TV company plans to buy 26% stake in Indian contract manufacturer Epack Durable's subsidiary :-ET

 

Hisense Group is planning to acquire up to 26% stake in Epack Durable's subsidiary for establishing a large appliance manufacturing facility in Andhra Pradesh. The deal follows India's encouragement for Chinese companies to partner locally, requiring multi-department clearance under FDI norms.

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https://economictimes.indiatimes.com/industry/cons-products/electronics/chinas-top-tv-company-plans-to-buy-26-stake-in-indian-contract-manufacturer-epack-durables-subsidiary/articleshow/116609539.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Coforge, Cigniti forge ahead with proposed merger Read more at: https://economictimes.indiatimes.com

 

Coforge and Cigniti Technologies are moving a step ahead toward a planned merger. The two companies have appointed EY and Axis Capital to prepare merger terms, which they intend to propose to their respective shareholders within a fortnight, according to people aware of the matter.

As per the merger plan, Coforge will absorb the listed Cigniti Technologies. Coforge’s market capitalisation has doubled to more than Rs 62,000 crore in the past seven months. Cigniti Technologies shareholders will be issued shares of Coforge once the advisers come up with an acceptable swap ratio, according to the people cited. Coforge, formerly known as NIIT Technologies, owns a 54% stake in Cigniti Technologies.

Coforge had announced the acquisition of the majority stake in Cigniti Technologies on May 2. It subsequently launched an offer of its own shares later that month through the qualified institutional placement (QIP) route to raise Rs 2,240 crore to finance the acquisition of Cigniti shares.

According to the QIP documents seen by ET, Coforge’s clients in North America are largely located on the east coast whereas Cigniti has customers in the west and Midwest, making for synergy.

The companies, EY and Axis Capital didn’t respond to queries.It was earlier majority-owned by EQT (formerly Baring Private Equity Asia), which had acquired a stake of nearly 70% in the company over a period of time beginning 2019. It sold the entire stake last year, making significant gains. When it entered, the shares had been at Rs 1,394 apiece. It exited at Rs 4,700 per share, when it sold the remaining 26% stake in August last year. It sold partial stakes in 2020, 2021 and 2022.

NIIT was renamed Coforge after the acquisition by EQT Baring Private Asia equity. NIIT’s original promoters were Rajendra Pawar and Vijay Thadani. Under the leadership of its CEO Sudhir Singh, a former top executive at Infosys, the company hit the $1 billion revenue milestone in April 2023. It is now looking at AI to get to $2 billion and eventually $5 billion, Singh told ET recently.

“We think AI represents a massive opportunity for us,” said Singh, who is also executive director. “We need to transform into being an actual AI-first organisation, because the journey from $2 (billion) to $5 (billion) or $2 (billion) to $10 (billion) becomes that much faster then.”

Despite the $250 billion IT industry seeing one of its worst growth periods in the last two years due to geopolitical strife and macroeconomic concerns, firms such as Coforge have managed to report strong growth and profitability.

Pakistan plans to acquire 40 planes of China's latest stealth fighter J-35: Report :-ET

 

Pakistan is reportedly planning a major defense upgrade by purchasing 40 J-35 stealth fighters from China. This potential deal, unconfirmed by either nation, would be China's first export of its advanced fifth-generation jet. The acquisition aims to modernize Pakistan's air force, replacing older F-16s and Mirage jets, despite Pakistan's economic challenges.

Read more at:
https://economictimes.indiatimes.com/news/defence/pakistan-plans-to-acquire-40-planes-of-chinas-latest-stealth-fighter-j-35-report/articleshow/116602944.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Budget 2025 expectations: Old tax regime continuation, capital gains tax simplification, reliefs on NPS, crypto, and more: Here's what experts want :-ET

 

As the Finance Minister and her team start crafting the Union Budget 2025, anticipation is building across sectors. Personal finance enthusiasts and taxpayers alike are curious about what the Budget proposals will mean for their pockets. For this week’s cover story, we reached out to industry experts, tax professionals and financial advisers to know what they want to see in the Finance Bill 2025.

Some of these expectations, such as a separate deduction for life insurance, lower tax on annuities and higher tax exemption for senior citizens, are longstanding demands and are unlikely to be fulfilled. However, North Block may find some other suggestions worth considering. For instance, one expert has suggested that taxpayers be rewarded with a group life insurance linked to the taxes they pay. As little as 1% of the tax paid by an individual can go into paying the premium of a group Insurance cover equal to five times the tax paid.

Another expert has suggested steps that could make the NPS more attractive to investors. The ultra low-cost scheme has everything that one looks for in a pension plan, but it is still not the preferred investment vehicle for retirement planning. Perhaps more tax benefits are needed to push people towards a scheme that can help them retire in comfort.

One key suggestion is the reduction in the TCS on foreign remittances. Two years ago, this was hiked from 5% to 20%, making it very difficult for those wanting to invest, spend or send money abroad. The TCS can be claimed as a refund by filing tax returns. The rule was introduced to ensure that people sending (or spending) money overseas were also filing their tax returns. While the objective seems fair, there is no logic for such restrictions on capital flows in a globalised economy. The TCS should be reduced to 5-10% of the amount being sent abroad, if not completely removed.

At the same time, the government’s focus on fiscal consolidation leaves little room for tax benefits that will result in lower revenue collections. One estimate says that every Rs.10,000 increase in the basic tax exemption limit burns a Rs.3,000 crore hole in the government’s coffers. The government has targeted a gross fiscal deficit of 4.9% of the GDP for 2024-25. It was 5.6% of the GDP in the previous year.

Experts have also suggested simplification of tax structures and fewer ambiguities in tax laws.

Our cover story analyses these suggestions and explores their potential impact on your finances. Dive into the story for expert perspectives and a better understanding of what may shape your financial year ahead.

Make NPS more attractive to investors

India faces a looming retirement crisis, with millions of individuals financially unprepared for retirement. The NPS has the potential to address this gap, but additional tax benefits are necessary to make it more appealing. The Budget should hike the deduction limit under Section 80CCD(1B) from Rs.50,000 to Rs.1 lakh. This would encourage higher investments by taxpayers and support long-term retirement savings, especially among savers and middle-income earners. The deduction limit under Section 80CCD(2) should also be hiked. Under the old tax regime, this limit is 10% of the basic salary. This year’s Budget had increased it to 14% of the basic salary for those opting for the new tax regime. This limit should be hiked to 20% of the basic salary. This would make the NPS more appealing to private sector employees.

RAJANI TANDALE

SENIOR VICE PRESIDENT,MUTUAL FUND, 1 FINANCE

The mandatory purchase of annuity under NPS keeps many investors away from the pension scheme. A systematic withdrawal plan that replaces or complements the annuity would allow retirees to access their corpus in a structured manner while avoiding low returns and high taxation associated with annuities.

Lastly, the budget should also provide some relief to tax on annuity income to increase post-retirement income.

ET Wealth view

Over the years, the utility of the NPS has grown manifold owing to several improvements in its features and benefits. However, more needs to be done to make it the preferred retirement savings vehicle. Hiking the tax deduction limit can be an effective way to push people to invest in the NPS.

More incentives for term insurance

Term insurance is by far the best form of life cover because it offers a large cover at a low cost. Currently, term insurance premiums are included in the Rs.1.5 lakh deduction limit under Section 80C. This section has too many investment and savings options, including the Provident Fund, PPF, ELSS and home loan principal repayment. The Budget should offer a separate tax deduction for term insurance premiums. This will encourage more people to prioritise life insurance for their family’s financial security.

NEHAL MOTA

CO-FOUNDER,FINNOVATE

There should also be incentives for employers to offer group term insurance to their employees. Targeted incentives, such as tax benefits or subsidies, will motivate employers to include group term insurance plans as part of their employee benefit package. This will ensure that even individuals who may not purchase term insurance policies on their own have a basic life cover through their workplace.

ET Wealth view

Term insurance should be a priority for any individual with dependents, but often gets ignored in the maze of other tax saving options under Section 80C. The government is giving precedence to the new tax regime, so a separate deduction for term life insurance seems unlikely.

Reward taxpayers with life cover linked to taxes paid

Indians are grossly underinsured, with insurance penetration at 4% of the GDP, compared to the global average of 7%. During the Covid mayhem, thousands of families were pushed into penury when sole breadwinners died. The Budget should fix this by offering group life insurance cover. Unlike the Ayushman Bharat scheme that provides free healthcare coverage to economically weaker sections of society, this scheme should cover individuals who are helping build the nation by paying taxes. The extent of the cover can be linked to the tax paid by the individual. So, if a person has paid Rs.10 lakh in tax, he should be eligible for a cover of Rs.50 lakh. That would require a premium of just 1% (Rs.10,000) of the tax paid.

SUDHIR KAUSHIK

CEO, TAXSPANNER.COM

ET Wealth view

Honest taxpayers who declare their income and pay due taxes deserve more than the commendation certificates mailed by the Finance Ministry. A group life insurance cover linked to the tax paid by the individual will be a more meaningful way to acknowledge their effort.

Do away with double taxation of annuities

Annuities are an important financial tool for providing regular income to retirees. But annuities are taxed doubly—once at the time of investment and again at the payout stage. Tax relief on the principal component of annuity income could encourage people to buy annuity products, stimulate the market and improve financial security in the country. Also, incentives should be announced for women, who account for about a third of life insurance buyers in India.

UMIT RAI

MD & CEO, EDELWEISS LIFE INSURANCE

ET Wealth view

Annuity payouts are added to income and taxed at the slab rate. A long-standing demand by annuity distributors, reducing the tax on annuities will certainly make them more attractive. But it will burn a big hole in government revenues and may not be viable.

Reduce TCS on foreign remittances

Two years ago, the government enhanced the TCS on foreign remittances from 5% to 20%. Anybody investing, sending or spending more than Rs.7 lakh abroad has to shell out 20% more. Though this amount can be claimed as a refund while filing tax returns, the money gets locked for several months. The previous Budget had given some relief to salaried taxpayers by allowing them to adjust their tax liability against the TCS. Other taxpayers get no such option. In a globalised economy, there is no logic for such restrictions on the flow of capital. The TCS on remittances should be reduced to 5-10% of the amount being remitted.

KARAN BATRA

FOUNDER, THE CHARTERED CLUB

ET Wealth view

At 20% of the amount, the TCS is too high and needs to be reviewed. Reducing this to 5% will not only ease the burden for taxpayers, but also make capital account convertibility more meaningful

Hike tax exemption for senior citizens

After they stop working, senior citizens are totally dependent on the income from their savings. Many incomes, such as dividends, have now come under the tax net, which eats into the overall returns of the investor. For senior citizens, there is an exemption of Rs.50,000 on the interest they earn, but it does not fully compensate the tax on other incomes. The basic exemption for senior citizens should be hiked to Rs.4 lakh and the exemption under Section 80TTB should be increased to at least Rs.1 lakh. This will provide some cushion to senior citizens in their sunset years.

RAJESH K.RATTAN

RETIRED TAXPAYER, 76 YEARS

ET Wealth view

Though senior citizens have received many tax benefits and other incentives in recent years, they deserve a higher basic exemption and an increase in tax exemption on interest income. These measures will help the grey population fight inflation to some extent.

Give tax relief to crypto investors

Indian investors are missing the splendid opportunity offered by cryptocurrencies because of the high tax introduced last year. The Budget should reduce the tax on virtual digital assets (VDA) below 30% and cut the TDS on all transactions from 1% to 0.01%. It is equally important to offer a set-off and carry-forward provision for losses in VDA transactions. These reforms are necessary to create a level playing field for crypto investors and traders. Lower taxes will also boost compliance and prevent investors from moving to exchanges abroad. India could lead the global Web3 and blockchain renaissance if a fair and friendly tax regime is put in place.

AVINASH SHEKHAR

CO-FOUNDER & CEO,PI42

ET Wealth view

The high tax and stiff rules were meant to discourage investments in cryptos. There is no separate regulator for crypto investments in India. The Budget should name a regulator to ensure that investors are protected.

Deduction of health cover premium

Medical insurance costs have gone up in recent years and the GST on premiums only makes matters worse. The high cost of medical insurance premiums deters many from securing insurance, leaving a significant portion of the population without adequate coverage. Reducing GST on health insurance premiums would make it more affordable. If such a reduction is not feasible, alternative measures must be considered. For instance, a complete tax deduction on premiums paid towards health insurance under Section 80D under the old tax regime could encourage a wider adoption without impacting the government’s GST collection.

TAPAN SINGHEL

MD & CEO, BAJAJ ALLIANZ GENERAL INSURANCE

ET Wealth view

If the GST Council announces a cut in the 18% GST on health insurance premiums, the cost of medical insurance would come down considerably. Full tax deduction for the premium would be a bigger incentive for buying adequate health insurance.

Roll back TDS on interest from listed bonds

The previous Budget introduced a 10% TDS on coupon payments from listed bonds. While the intention behind this policy was to ensure greater tax compliance, it has created challenges for fixedincome investors, particularly retail and individual investors.

VISHAL GOENKA

CO-FOUNDER,INDIABONDS.COM

Many are unaware of the way bond investments work, particularly when it comes to timing coupon payments. Transactions done between two coupon payments have an adverse effect on cash flows and YTM (yield to maturity) calculations. The holder, on interest payment date, gets the coupon on the entire interest period and is subject to 10% TDS on the entire amount even though he may have bought the bond in the secondary market and had already paid accrued interest to the seller.

Senior citizens are exempt from TDS if they submit Form 15G or 15H, but the process is not always smooth. This can lead to unintentional deductions and require time-consuming refund claims, which adds unnecessary complications for those relying on regular coupon income. A rollback of the TDS provision on coupon payments would eliminate cashflow inefficiencies and administrative hurdles for investors, while preserving the predictability of bond returns.

ET Wealth view

TDS is applicable on income from fixed deposits and dividends. So keeping bonds out of the TDS ambit does not allow a level playing field. Given that the government is keen to rationalise the tax system and remove anomalies, the TDS may not be rolled back.

Don’t remove the old tax regime

There is a growing concern that the government wants to do away with the old tax regime altogether. While the new regime has wider tax slabs and lower rates, there are very few deductions and exemptions. The taxpayers who have planned their long-term investments and expenses after factoring in the tax benefits will lose out under the new regime. The old regime should continue as before and taxpayers should be free to make a choice.

RISHI AHUJA

FINANCE PROFESSIONAL, DELHI

ET Wealth view

Last year, the new tax regime was made the default option. This year, it increased the standard deduction to Rs.75,000. While the government should make the new regime more attractive, it should not remove the option to stay with the old regime.

Rationalise cost of equity investments

With a growing section of the middle class taking to equities for wealth creation, there is merit in simplifying the overall tax and cost structure for equity investments. There are multiple cost structures levied on each equity transaction, including exchange transaction charges, STT brokerage, stamp duty and GST on total charges. A review of all these overhead costs and simplification can lead to wider participation, enabling wealth creation without impacting the overall tax collection.

DINESH ROHIRA

FOUNDER, 5NANCE.COM

ET Wealth view

There is a large-scale public participation in capital markets. The existing cost structure is not hampering it in any way, so a change is unlikely.

Tax deduction for house maintenance charges

In most urban areas, the maintenance of residential buildings is undertaken by the housing society, federation, company or a common body. In many cases, this can be a substantial expense, but is not allowed as a deduction. There is a spate of litigation in the country on account of this expense. The contribution towards maintenance charges paid to any of these bodies should be allowed as deduction against rental income to ensure that only real income is subjected to tax. Amending the law and allowing a deduction for the same would lead to considerable reduction in litigation and relief to homeowners.

RAJ LAKHOTIA

MANAGING PARTNER,LABH & ASSOCIATES

ET Wealth view

Despite 30% standard deduction for repairs and maintenance, the total maintenance contribution in apartment buildings often exceeds this limit. Allowing the deduction of maintenance charges would provide a realistic estimate of real rental income.

Exempt TDS payers from filing tax returns

Salaried individuals are required to file their tax returns even if TDS has been deducted on their salary. This mandatory filing of ITR creates an additional compliance for employees, particularly when no additional income or complex deductions are involved. In many developed countries, including the UK, employees don’t have to file tax returns if their employer deducts tax from their salary. This reduces administrative work for the employee and eases the burden on the tax department. The Budget should exempt employees from filing ITR if TDS is already deducted. This would streamline compliance for millions of salaried taxpayers, freeing up time and resources for both individuals and the tax department.

NISHANT KHEMANI

MANAGING PARTNER,SATURN CONSULTING GROUP

ET Wealth view

Exemption from filing tax returns could lead to confusion over the eligibility criteria. Most salaried people also have income from other sources where TDS may not fully cover the due tax. Capital gains are also not subjected to TDS. Exemption is possible only if the individual declares all incomes to the employer and TDS is correctly deducted.

Simplify capital gains taxes further

The government wants to simplify the tax structure and, hence, has made capital gains tax uniform across various asset classes. Unfortunately, due to legacy issues, a lot of complexity still exists in the form of purchase dates of debt funds, international funds and even gold funds. These inconsistencies have created a lot of confusion in the minds of retail investors.

VIVEK BANKA

CO-FOUNDER,GOALTELLER

The capital gains tax structure can be simplified further by converging tax rates for different sub-asset classes. For example, international equities at par with domestic equities, debt funds at par with gold funds, and gold funds at par with gold ETFs. Also, unless there is a compelling reason, actions should not be either retrospective or deferred too far in the future. The taxation of gold funds, for instance, comes into effect only from 1 April 2025.

ET Wealth view

The government has taken significant steps to streamline the capital gains tax regime. However, certain inconsistencies remain. Addressing these will help rationalise the tax system further.

Extend study loan deduction to 12 years

Given the rising cost of higher studies, education loans have become necessary, but there is no tax deduction under the new tax regime. Even under the old regime, the deduction Section 80E is available only for eight years. This 8-year window is sufficient for small loans, but the repayment term will have to be longer to make it affordable for new earners. The Budget should include deduction for education loan interest under the new regime and extend the claim period to at least 12 years.

UMESH JETHANI

CHARTERED ACCOUNTANT

ET Wealth view

The ticket size of education loans has risen in recent years as many students are going for foreign education. Extending the deduction window to 15 years will make repayment easier for them.

Read more at:
https://economictimes.indiatimes.com/wealth/invest/budget-2025-expectations-old-tax-regime-continuation-capital-gains-tax-simplification-reliefs-on-nps-crypto-and-more-heres-what-experts-want/articleshow/116524284.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst