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What is your view on the union budget? Has the government brought a right budget
for India?
Facts by samshirva 0 comments
2010-2011 Union Budget Highlights…!!
• Minimum Alternate Tax up from 15% to 18% on book profits
• Fiscal deficit pegged at 5.5% of GDP
• I-T dept to notify simple two-page Saral 2 form for individuals for current ye
ar
• Customs duty on gold, platinum imports raised to Rs 300 from Rs 200
• Service Tax rates unchanged at 10%
• News agencies exempt from service tax
• No import duty on some equipment in road projects
• External commercial borrowing will be available for food storage industries
• Peak customs duty remains unchanged at 10%
• Central excise on LED lights halved to 4%
• Agricultural seeds exempt from service tax
• Full excise cut on electric cars
• For solar mission, solar power generating units rates are to be reduced by 5%
• Cut on personal tax rates means saving of Rs 50,000 for income up to Rs 8 lakh
• Peak excise duty hiked from 8% to 10%
• Duties on smoking and non-smoking tobacco products up
• Excise duty on large cars, SUVs, multi utility vehicles hiked
• Petroleum products: basic excise duty of 5% crude, 7.5% on diesel & petrol; 10
% on other products
• Surcharge for companies reduced to 7.5%
• Addl Rs20,000 deduction available for investment in infra bonds
• Allocates Rs 1,900 cr for UID project
• Allocation to Defence over Rs 147,000 crore
• Rs 4,500 cr for program of social justice, sr citizens, backward classes, hand
icapped
• Rs 100 cr allocated for women farmers
• Rs 48,000 cr for Bharat Nirman plan
• To allocate Rs 22,300 cr to Health Ministry
• Allocates Rs 100 cr for new pension scheme, to benefit 100,000 low income citi
zens
• Khadi institutes get Rs 400 cr
• Rs 7300cr in 2011 for backward sections
• GST, Direct Taxes Code from April 2011
• Housing loan: 1% interest subvention scheme extended, allocation Rs 700 cr
• Urban dev allocation up more than 75% to Rs 5400 cr
• Allocates Rs 1,200 cr for drought mitigation
• NREGS gets Rs 40,100 cr in FY11
• Rs66,1000 cr allocateds for rural development in FY11
• School education outlay for FY11 at Rs 31,000 cr
• States to get Rs 3,675 cr for primary education at rural level
• Spending on social sector at Rs 137,000 cr
• Rs 25,000 cr allocated to develop rural infrastructure
• Allocation for road transport Rs 19,894 cr
• Extends interest subvention of 2% for handloom, handicrafts for 1 more yr
FISCAL DEFICIT
• Fiscal deficit seen at 6.9 pct of GDP in 2009/10
• Fiscal deficit seen at 5.5 pct of GDP in 2010/11 (Reuters poll 5.6 pct)
• Fiscal deficit seen at 4.8 pct of GDP in 2011/12; 4.1 pct in 2012/13.
• Fiscal deficit seen at 3.81 trillion rupees in 2010/11; seen at 4.14 trillion
rupees in 2009/10.
SPENDING
• Total expenditure in 2010/11 11.87 trillion rupees.
• 15 pct increase in plan expenditure in 2010/11
• Increase in non-planned exp up only 6%
• 2009/10 revised estimate for tax collection 7.47 trillion rupees.
• Defence spending for 2010/11 at 1.47 trillion rupees.
• To invest 1.73 trillion rupees in infrastructure in 2010/11.
• Social sector spending at 1.38 trillion rupees for FY11.
• To provide 661 billion rupees for rural development.
TAXES
• Federal excise duty on non petroleum products to go up to 10 pct from 8 pct
• Raises federal excise duty on petrol, diesel by 1 rupee per litre
• Government will be in a position to implement direct tax code from April 2011
• Aims to introduce Goods and Services Tax in April 2011
• Raises minimum alternate tax rate to 18 pct
• To impose clean energy levy of 50 rupees/tonne on coal, including imports
• Service tax rate kept unchanged at 10 pct
• Personal income tax slabs widened
Tax Rates Current (Rs.) Proposed (Rs.)
NIL Up to 1,60,000* Up to 1,60,000*
10% 160,001- 3,00,000 160,001- 5,00,000
20% 3,00,001- 5,00,000 5,00,001- 8,00,000
30% Above 500,000 Above 800,000
SUBSIDIES
• Subsidy bill seen at 1.16 trillion rupees.
• Petroleum subsidy for 2010/11 seen at 31.08 billion rupees
• Fertiliser subsidy for 2010/11 seen at 499.8 billion rupees
• To provide government subsidy in cash instead of bonds for fertilisers, oil
• To provide 2 pct loan subsidy to farmers
STAKE SALES AND RADIO AIRWAVES AUCTION
• Estimates disinvestment proceeds of 400 bln rupees in 2010/11.
• Estimates 350 billion rupees in 2010/11 from 3G wireless radio spectrum auctio
n.
Facts by samshirva 0 comments
Case No: 2
Under debt: He took 4 loans at one time
THE power of debt is tremendous. On one hand, it can helps you achieve your goal
s. On the other, it can destroy you.
Unfortunately for Amane, a 42-year old college lecturer who is married and has a
child, his loans did him more harm than good. He earns Rs 19,000 per month and
is in deep debt, today.
FindFactz…..suggests a way out.
November 2005: He took a personal loan of Rs 1,50,000, to furnish a new house he
was about to acquire.
December 2005: He took a home loan of Rs 4,87,679 to buy a property in Pune, whe
re he now lives with his family.
September 2006: He took a motorcycle loan of Rs 50,000 and bought a new bike.
July 2007: Amane took a personal loan of Rs 5, 00,000 to buy shares, and gave po
wer of attorney to a brokerage firm, to invest his money as they saw fit. When t
he stock market crashed, he lost all his savings and was left with no savings.
September 2007: He took a personal loan of Rs 4,60,000 (secured against his home
), to pay off the remaining Equated Monthly Installments (EMIs) on his personal
loan of Rs 1, 50,000, thereby closing the loan. He also utilised it to pay EMIs
on other loans.
Loan watch:
When Type of loan Purpose Loan amount
(in Rs) EMI
(in Rs) Remaining EMIs
November 2005 Personal Furnishing the flat 150,000 5,424 Closed
December 2005 Home Buying the flat 487,679 4,947 162
September 2006 Motorcycle Commute 50,000 1,150 43
July 2007 Personal Buy shares 500,000 15,080 39
September 2007 Personal (against home) To close the first loan and pay EMI of R
s 15,080 460,000 6,049 175
Not surprisingly, Amane is unable to pay the EMI of Rs 15,080, which obviously,
did not go down well with the bank. It’s been six months since he paid his last
installment, and the bank is threatening him, so he clears pending dues.
Top mistakes
The personal loan of Rs 5,00,000 to invest in stocks was uncalled for, consideri
ng that he was already paying off three EMIs. In fact, he should have used the l
oan of Rs 4,60,000 to prepay his other loans and bring down the EMI amount rathe
r than pay more EMIs.
Tough decisions
Amane has choices but none that are pleasant. Yogin Sabnis, Director, VSK Financ
ial Consultancy Services advices him.
1. First, Amane could sell his motorcycle and close the motorcycle loan.
2. Next, he could opt to stay in a rented house, and sell of his property (worth
Rs 25,00,000, now). He will be able to get rid of all his loans, and he may eve
n be left with some surplus.
3. He must invest the surplus amount equally, between fixed income instruments a
nd diversified equity instruments.
Life insurance, yet?
Should Amane consider buying an insurance policy despite his financial situation
? Yes. "It s important for him to buy a term policy in his name after he has pai
d off his loans. After all, he must be worried sick and that s not good for his
health. And there’s his family to think of," explains Sabnis.
Mantras for borrowers
1. According to financial planners, the EMI amount should not exceed 30 to 35 pe
r cent of your monthly income. In Amane s case, it was way over 100 per cent!
2. Amane should have taken a home improvement loan instead of a personal loan. T
he interest on a home improvement loan is 13 to 15 per cent. The interest on a p
ersonal loan is between 13 to 30 per cent.
3. Remember the maxim: Do not borrow to invest. Amane borrowed from a bank to sp
eculate and that landed him in trouble.
4. Power of attorney must not be given to anyone. Amane blindly trusted the brok
erage firm and gave them the authority to invest his money. Unfortunately for hi
m, they lost all his money, and worse still, he has no recourse.
Moral of the story
Though some purchases merit borrowing, know where to draw the line. Get your pri
orities, right and you will always be ‘indebted’ to yourself for this!
Facts by samshirva 0 comments
Interview with Dr. Narendra Jadhav
AN INTERVIEW WITH DR. NARENDRA JADHAV
Venue : JKSHIM, Nitte
Date : 30th Jan, 2010
Sir, we read in your previous interviews that you gave up lucrative job opportun
ities in US after your Phd and came to India at a time when very few people did
this. What inspired you to come back to India?
In US, the existing community of Indian students at that time was not very activ
e and I took charge and reactivated them and later became the President. In one
of the social gatherings of Indian student community I announced about my intens
ions to go back to India after completion of Phd. Much hue and cry was raised on
this. People kept asking me why did I want to go back? I simply told them “You
don’t ask an innocent person why he is not a thief; instead you ask yourself why
you are not going back?
On the very same night hundreds of people came to shake hands with me ,and surpr
isingly 3 middle aged people came up to me and said “I only wish I was as clear
as you are in life now, I regret of not going back and think of my country now”.
Many people have an air of coming back and keep complaining about the circumsta
nces, but this was not the case for me .I have grown up here and have nothing to
complain about.
Sir, we have heard extensive discussions on revamping and reforming the educatio
n system? What are your views on this issue?
To provide you with the historical background, education system was never given
sufficient attention in India. Kothari Committee in 1966, emphasized that 6% of
the GDP should be put up in education. But the truth today this figure has never
crossed 4%.
The 11th five year plan which is from 2007-2012, we have focussed strongly on ed
ucation .To promote primary and higher primary education we have started a sch
eme called “Sarva Shiksha Abhayan”. Mid-Day meals have also helped to increase t
he number of students taking education. Though the access has improved but not t
he quality of education .An historic act in this regard passed was Right to Educ
ation Act.
Gross Enrolment Ratio (GRE) among Muslims, Scheduled Caste, and the marginal str
ata of the society is eye opening. Scheduled Tribe - Female population is 1 ½% o
ut of which 98.5% do not have access to higher education.
The committees appointed to study the higher education system in India have sugg
ested that the Universities should be governed by an umbrella structure to take
comprehensive look at their operations and functioning. This proposal has been p
ut up in the website of MHRD and people have started the discussions on the same
with the intension of understanding the reaction of the people on the same .On
the basis of which it will be put up to the Parliament for acceptance.
In the last 60 years, so many proposals relating to the education system have ne
ver come to the Parliament .But the democratic process take times. I assure you
that in the next 1 ½ to 2 years the entire higher education system in Indian wou
ld change for good.
Sir your views on FDI in education sector?
When we talk about foreign universities coming in India, strangely we do not hea
r about Indian universities going abroad. As the Vice Chancellsor of Pune Univer
sity, I can tell you that I wanted to take Pune University abroad, but I was tol
d there were rules that allowed foreign universities to come to India but no gui
delines for Indian Universities to go there. After much deliberation I finally g
ot approval.
Pune University was set up finally in Middle-East .I do not see what is the harm
in doing so, Pune University has a contract with an education provider in Middl
e east, the entire investment would be made by them , we would only have to run
the program by sending our teachers there and thus no money as such moves out of
the country and the students there would get a degree from Pune University. Thi
s is a profitable proposition in three areas:
1) Teachers would get better exposure there 2) Teachers would get an opportunit
y to get dollar salary 3) Plus some part of the proportion in terms of returns w
ould come to Pune University. Pune University would earn to the extent of 1 cror
e and this would multiply in years to come. I could use this money to provide fa
cilities to my poor students. Those universities who have confidence to take on
competition abroad should be encouraged, what is wrong in that?
Tandon Committee have reviewed the operations of total of 131 deemed universitie
s out of which they have identified 44 universities, to which they feel permissi
on, should not have been given. MHRD has accepted and so has the Government .The
Court has put the stay on the same in the interest of the students. Please reme
mber you need to have lot of guts to do this!! This proposal was put to the gove
rnment in Oct 2009 but finally the government took action now due to the politic
al issues. When you have to do a cleanup you got to do it!!
Does Capital Account convertibility make the system vulnerable?
Please remember at a time when we had the tightest of the exchange controls huge
amount of money has been going out through Hawala Market .So have you been able
to stop the money from going out ? A very interesting thing happened when I was
with RBI the then governor Venkataramanan was a great visionary during one of o
ur routine discussions he said “You young people should try to find about these
Hawala transactions”. I raised my hand and shared few information on the same .T
he next question to me was “Where does this transactions happen?” I said Dubai.
He being a quick decision maker told me in the next 48 hours you go to Dubai and
find all the possible information on the Hawala transactions. I collected compl
ete information on the same and it turned out to be beautiful assignment. The si
mple logic behind Hawala market was price differential between Dubai and India.
Workers who had to send money to Kerala or Trichur, they would get just Rs 31 /
$ as per the then exchange and also as banks are law abiding . The transaction
would take a long time and at the same time he had a just next door Hawala deal
er who would give not only 36 Rs per dollar and also the same would take place i
n not less a then a day. The nexus spread across the different state facilitated
this movement of money quickly and efficiently.
Sir we still had lot of questions on our mind but due to time constraint we know
that it is not possible. We thank you profusely for your valuable time and pati
ence
It has been a pleasure interacting with the students here. This is the first tim
e I have come to Nitte, it has a lovely ambience and culture. The cultural activ
ities put up by students were great. I could see the spark evident in their eyes
. If you wish to have more interactions I have my own website www.drnarendrajadh
av.info. All the best for your future. Do well!!
Interviewers [Pooja Shetty ,Radhika Shetty ,Sandeep Shetty, Sudharshan, Shamshud
din,Ajit D’Mello , Mahesh ]
Edited by [Radhika Shetty , Pooja Shetty, Sandeep Shetty]
For more information: visit www.drnarendrajadhav.info

Facts by syncmild 0 comments

What is really needed for India to Grow faster? -youth speaks

This is the opinion collection regarding "What is really needed for India to gro
w faster"?
click on Knowledge share.
Facts by syncmild 1 comments
Case...
"I didn t file tax returns for 7 years. What should I do?"
SANJANA Dasgupta, 28, hasn’t filed her tax returns in the last seven years. Call
it laziness or sheer ignorance, either way she didn’t see the need to file retu
rns till date.
Sanjana’s reasons:
1. For the first three years, my salary was not taxable. So, why would I be expe
cted to file returns?
2. In the fourth year, my salary came under the tax slab. My employer has been d
educting tax at source from my salary ever since. So, what’s the point in filing
returns when I am already paying taxes?
"All right, then why do you want to file tax returns, now?” I asked.
”I have to travel abroad in couple of months. During my visa interview at the em
bassy they asked me to produce my tax returns for three or four years. I didn’t
even know I was required to submit these documents for visa purpose,” said Sanja
na
”What do you plan to do, now?”

Answer:
You need to file your income tax return if your income is higher than the exempt
ion limit. For the assessment year 2008-09, the basic exemption limit is:
Men Rs 1.60 lakh
Women Rs 1.90 lakh
Senior citizens Rs 2.40 lakh
If you earn more than the exemption limit, you have to file your returns. This h
olds true even if you are not eligible to pay tax.
Patel says, “The best option would be to file the returns for the financial year
s ended March 2007 and March 2008 on an urgent basis. She can submit copies of t
he tax return along with a copy of the Form 16 for the year ended March 2006 for
the VISA application. However, she cannot file the returns for any of the earli
er years as they are time barred.”
Tax expert Sandeep Shanbhag confirms the same. He says, "As on date, she can fil
e returns for a total of two years. If she files return after 31 July 2009 (the
last date for financial year 08- 09 is 31 July 2009), it will be termed as a b
elated return and the same can be submitted anytime up to 31 March 2011."
Apart from the fact that it is legally binding on you and you might need it for
your visa, returns come handy when you want to take a loan. Banks usually requir
e you to submit income tax returns.
So, it is usually for your benefit that you file returns.
Filing late
These are the consequences of filing your returns late:
1. In case Sanjana doesn t file before 31 March, 2009, she will be liable for a
penalty of Rs 5,000.
2. In case Sanjana owes taxes to the exchequer, she will have to pay interest at
1 per cent per month.
3. In case of refund, interest will be calculated from the date she filed return
s instead of 1st April
4. In case of loss, she will not be allowed to transfer it to next year.
5. In case Sanjana has made a mistake in original return, she will not be allowe
d to revise her return.
Facts by samshirva 1 comments
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2010-2011 Union Budget Highlights…!!
Case No: 2
 Interview with Dr. Narendra Jadhav
What is really needed for India to Grow faster? -y...
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