Ministry of Finance
Ministry of Finance, India concerns itself with Taxation, Financial Legislation, Financial Institutions, Capital Markets, Centre & State finances, and the Union Budget. The MOF is the cadre controlling authority of the Indian Revenue Service, Indian Economic Service, Indian Cost Accounts Service and Indian Civil Accounts Service.
The Ministry comprises of the five Departments namely:
1.Department of Economic Affairs
The Department of Economic Affairs is the nodal agency of the Union Government to formulate and monitor country's economic policies and programmes having a bearing on domestic and international aspects of economic management. A principal responsibility of this Department is the preparation and presentation of the Union Budget (including Railway Budget) to the parliament and budget for the state Governments under President's Rule and union territory administrations.
2.Department of Expenditure
The Department of Expenditure is the nodal Department for overseeing the public financial management system (PFMS) in the Central Government and matters connected with the finances.
3.Department of Revenue
The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963. CBDT provides essential inputs for policy and planning of direct taxes in India, at the same time it is also responsible for administration of direct tax laws through the Income Tax Department.
Key People: Sushil Chandra, Chairman
The Central Board of Indirect Taxes and Customs is the nodal national agency responsible for administering Customs, GST, Central Excise, Service Tax & Narcotics in India.
Key People: S. Ramesh IRS, Chairperson
4.Department of Investment & Public Asset Management
This department to advises the government in the matters of financial restructuring of central public sector enterprises and for attracting investment through capital markets. \
5.Department of Financial Services
Established on 12th July 1982 on the recommendations of B.Sivaraman Committee, to implement the National Bank for Agriculture and Rural Development Act 1981, National Bank for Agriculture and Rural Development (NABARD) is India’s apex financial Institution for for Agriculture and Rural Development in India.
The Bank has been entrusted with "matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India". It is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion.
Key People: Dr. Harsh Kumar Bhanwala, Chairman
Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.
Key People: Mohammad Mustafa, IAS, (Chairman & MD)
Insurance Regulatory and Development Authority of India is an autonomous, statutory body tasked with regulating & promoting the Indian insurance industry to protect the interests of the policyholders and work for the orderly growth of the industry.
Key People: Subhash Chandra Khuntia, Chairman
Established by Government of India on August 23, 2003, the Pension Fund Regulatory and Development Authority (PFRDA), a statutory body, is the pension regulator of India. Currently, PFRDA is regulating and administering the National Pension System (NPS) along with administering the Atal Pension Yojana (APY) which is a defined benefits pension scheme for the unorganized sector, guaranteed by the Government of India. PFRDA is responsible for appointment of various intermediate agencies such as Central Record Keeping Agency (CRA), Pension Fund Managers, Custodian, NPS Trustee Bank, etc.
Key People: Hemant Contractor, Chairman
1. IVCA proposed a more long-term budgeting framework for SIDBI fund of funds, given that drawdowns happen over 4-5 years.
1. We reached to CBDT for seeking clarification on the notification issued regarding the benefits provided under Section 80 IAC for an exemption under section 56 (2)(viib). According to the notification the term 'accountant' has been omitted thereby permitting only Category I Merchant Bankers to determine the fair market value of the unquoted equity shares.
2. Category III AIFs currently lack a distinct tax framework. This category is gaining popularity as an alternate method of investing in the public markets, but is subjected to double taxation and business income characterisation. IVCA advocated well-defined fair and consistent taxation framework for this category.
1. We have made number of advocacy endeavours to liberalise the permitted investments in AIFs by insurance companies to the Alternative Investment Policy Advisory Committee (AIPAC).
-Requested to permit Insurance companies to invest in Debt Funds and Fund of Funds.
-Amendment to definition of Leveraged Funds to restrict Insurance companies from investing in AIFs that Invest in Leveraged Funds.
-Rewording of Clause 27 of Insurance Act 1938 to avoid ambiguity on Foreign investments by clarifying that restriction applies only on policyholders funds and all other funds of AIFs are free to be invested outside India.
CBDT (CENTRAL BOARD OF DIRECT TAXES) :