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Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI)
Finance Minister Nirmala Sitharaman said while presenting the Union Budget 2019 – 20 that the government aims to establish more Common Facility Centres (CFCs) under the ‘Scheme of Fund for Upgradation and Regeneration of Traditional Industries’ (SFURTI).
- SFURTI aims to set up more Common Facility Centres for generating sustained employment opportunities.
- SFURTI envisions 100 new clusters in 2019-20 to help 50,000 artisans economically.
- 10,000 new Farmer Producer Organizations to be formed to ensure economies of scale for farmers over the next five years.
- This will facilitate cluster based development to make the traditional industries more productive, profitable and capable for generating sustained employment opportunities.
- The focused sectors are Bamboo, Honey and Khadi clusters.
- The Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE) has been consolidated for setting up of Livelihood Business Incubators (LBIs) and Technology Business Incubators (TBIs).
- ASPIRE contemplates setting up 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators (TBIs) in 2019-20 to develop 75,000 skilled entrepreneurs in agro-rural industry sectors.
- Pradhan Mantri Matsya Sampada Yojana to establish a robust fisheries management framework.
- This will address critical gaps in strengthening the value chain, including infrastructure, modernization, traceability, production, productivity, post-harvest management, and quality control.
- The minister said that the government will support private entrepreneurships in driving value-addition to farmers’ produce from the field and those from allied activities, like Bamboo and timber from the hedges for generating renewable energy.
Start-ups and their investors filing requisite declarations not to be subjected to any scrutiny regarding valuations of share premiums
With a view to resolve the ‘Angel Tax’ issue, the Finance Minister announced in the Union Budget 2019-20 that Start-ups and their investors who file requisite declarations and provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums.
- The Minister announced that the issue of establishing identity of the investor and source of his funds will be resolved by putting in place a mechanism of e-verification.
- This will remove any kind of scrutiny from the Income Tax Department.
- Special Administrative arrangements shall be made by Central Board of Direct Taxes (CBDT) for pending assessments of start-ups and redressal of their grievances.
- In the current set-up, start-ups are not required to justify fair market value of their shares issued to certain investors including Category-I Alternative Investment Funds (AIF).
- The Budget proposes to extend this benefit to Category-II Alternative Investment Funds also, thereby removing them from the scope of income tax scrutiny.
- Other proposals in this regard:
- Relaxation of some of the conditions for carry forward and set off of losses in the case of start-ups.
- Extension of the period of exemption of capital gains arising from sale of residential house for investment in start-ups up to 31.3.2021 and relax certain conditions of this exemption.
- TV Programme Exclusively for Start-ups
- There was also a proposal to set up a television programme exclusively for start-ups within the Door Darshan bouquet of channels.
- This shall serve as a platform for promoting start-ups, discussing issues affecting their growth, matchmaking with venture capitalists and for funding and tax planning.
- This channel shall be designed and executed by start-ups themselves.
- Mega Investment in Sunrise and Advanced Technology Areas
- GOI will launch a scheme to invite global companies through a transparent competitive bidding to set up mega-manufacturing plants in sunrise and advanced technology areas.
- The proposed areas are:
- Semi-conductor Fabrication (FAB)
- Solar Photo Voltaic cells
- Lithium storage batteries
- Solar electric charging infrastructure
- Computer Servers, Laptops, etc.
Benefits to be provided such as investment linked income tax exemptions under section 35 AD of the Income Tax Act, and other indirect tax benefits.
|Central Board of Direct Taxes (CBDT)||Kisan SAMPADA Yojana|
|INSPIRE Awards-MANAK||Economics Notes For UPSC – Indian Economy Notes For IAS Preparation|
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