Font size:
Print
National Skill Development Corporation ‘s (NSDC) Recommendations to Finance Ministry
Context: NSDC recommended tax breaks/incentives to boost skills training, along with easier access to loans for skill development to strengthen workforce and drive growth.
Key Recommendations:
-
- It suggested amendments to provide clarity regarding the definition of educational institutions to include skilling programs.
- Income Tax Exemptions:
-
- The Income Tax Act should explicitly include training institutes offering skilling programs under current exemptions for not-for-profit universities and educational institutions.
- Section 80(c) of Income Tax Act should allow deductions for fees paid to skill training institutes by individuals, their spouses, and up to two children.
- Allow deductions for loans taken for skill development and vocational training, similar to deductions available for education loans.
- NSDC also sought several interventions in reduction and exemption for skilling institutions from certain indirect taxes.
- Proposed GST rate of 5% for employment services categorised as ‘merit services‘ as current 18% rate is hindering growth of the employment sector.
Rationale for Recommendations:
- India’s Push in Newer Sectors: Skilling is essential for sectors like electronics manufacturing, where semi-skilled workers are needed.
-
- Equating skills with education can enhance employment opportunities.
- Government Focus on Education: Various incentives and exemptions provided to educational institutions should also apply to skilling to make youth employable.
National Skill Development Corporation (NSDC):
- Establishment: In July 2008 under section 25 of Companies Act, 1956.
- Structure: Not-for-profit public limited company in a Public Private Partnership (PPP) model under Ministry of Skill Development & Entrepreneurship (MSDE).
- It has a 49% government and 51% private sector ownership.
- It is dedicated to empowering India’s youth through comprehensive skill development.
- Objective: Catalyze India’s skilling ecosystem, promoting private sector participation and supporting the Skill India Mission.
- Vision:To become “World’s largest platform for Skills for All, Opportunities for All, Anytime, Anywhere”.
- NSDC Mission:
-
- Skill/Reskill/Upskill 25 Mn Individuals
- Skill/Reskill/ Upskill 15 Mn disadvantaged socio-economic groups.
- Operationalise 50K skill centres.
Core Values:
Impact: Planet, People & Prosperity
Integrity: Trust and Transparency
Inclusion: Access to skilling for 15 Mn disadvantaged socio-economic groups
Innovation: Digital First
|
Government Initiatives to Boost Skill Development:
|
