Direct Taxes in India

What is Direct Tax? The tax paid to the government directly by the tax-payer (like the Capital Gains Tax and the Income Tax) are called Direct Tax. In other words, it can be stated direct tax is taken away from ones salary or wages directly. However, the property tax which is imposed by the government is also called direct tax. In India, the collections which are clubbed under direct taxes are Banking Cash Transaction, Securities Transaction Tax, Personal Income Tax, Corporate Tax and Fringe Benefit Tax. The collections of Direct Taxes in India are increasing smoothly over the years.

Income Tax in India: The income earned during a financial year (April 1^st till March 31^st) is taxable as per the prescribed rates for that year. Here, a resident based tax paying system is followed. The taxes are charged keeping in view the residential status (not citizenship). The categories are resident, resident but not ordinarily resident, and nonresident. In case of Indian sourced income- all the three categories are taxable in India. However, for the foreign sourced income of only the residents are charged. The foreign sourced incomes of the resident but not ordinarily resident and the non-resident are not taxable in India. The Indian companies are always categorized under Indian resident. Moreover, the companies which are controlled from India are also categorized as Indian. The rest of the companies are non-resident.

The Central Board of Direct Taxation (CBDT) takes care of the Direct Taxation in India. The CBDT is a division of revenue which is a part of the Ministry of Finance. It creates and regulates the direct taxes in India. It manages the direct tax law according to the rules of the Income Tax department. The revenue act of 1963 is utilized to govern the proceedings of CBDT.

The tax structure in India is divided amongst the local government, the state government and the central government. The central government charges taxes for income, service tax, central excise and custom duties. The state government charges taxes like professional tax, land revenue, VAT (value added tax), stamp duty and state excise. The civic (local) bodies charge taxes of properties and octroi. The capital gains, tax incentive, corporate and personal income tax also fall under this category.

In India, the following heads of income are taxed:

• Salaries: The payments received for rendering services, wages, pensions, fees, commissions, as well as the taxable amount of all prerequisites are covered under this head. In India, the employers are provided with standard rules for making these deductions. The deduction depends on the salary of the tax-payer.

• The income from a house or property: The income earned by renting out premises for residential or commercial purposes are taxed under this category. There are two prescribed cuttings under this head.

• The profits or gains from any business or profession: The revenue (above a certain limit) generated from business are permissible for deduction under the tax guidelines of India. The revenue expenditures are also taxed under this head following the taxation rules.

• The capital gains: The capital gains which arise from the transfer of the capital assets. The capital assets which are held for 36 months or less are short-term assets. However, the income from shares and securities of 12 months or more are considered to be long-term capitals. The long-term interests have a lower rate of interest.

• The income from other sources: The other sources of incomes cover any income which is not specified under any of the above heads. The expensed incurred while investing for this income is taken into consideration, and tax benefits are provided accordingly.

Changes in the direct tax slabs in India in the budget 2011-12: The exemption limit was increased from 1.6 lakhs to 1.8 lakhs. However because of inflation over 10 percent this has hardly benefited anybody. The minimum age to qualify as a senior citizen has been reduced from 65 to 60. Exemption limit for the senior citizens have been raised from 2.4 lakhs to 2.5 lakhs. The very senior citizens are exempt from paying taxes till the annual income of 5 lakhs. The salaried people need not file return for income tax if TDS is being deducted from their salary. If the tax is directly deducted from the salary then it is direct tax.

Analysis of the tax incidence on different investment tools:

Pays and Perks: The idea of bringing in the government provided accommodation as a part of the salary has been dropped. The perks of government staff will continue as before. The initial draft of the plan was confronted by the salaries class of government servants.

Income Tax Slabs: The draft states that there will be a 10 percent tax for the slab 1.8 lakhs to 10 lakhs, and 20 % for the others.

Home Loans: The government has planned to continue the major tax incentive on the housing loans. The tax payers will get benefit till the loan of 1.5 lakhs per annual but the rental income will be taxed.

Insurance and ULIPs: The new life insurance products do not have any tax proposed. These fall under the exempt-exempt-exempt rule. The new ULIPs issued after DTC can be taxed only after maturity. The existing ones will be relieved from tax only on midway withdrawal and maturity.

Equity Mutual Funds: The long-term capital gain tax on the unit of equity fund is proposed. It is planned to calculate the long-term gain on equity funds and equity only after the deduction of a certain percentage of the capital gains irrespective of any indexation.

Stocks Investment: In stock investment the difference between the long-term and short-term capital gains have been removed. These gains will be considered as income from the ordinary sources and will be taxed accordingly.

Provident Fund: All saving plans (inclusive of the PF’s) will be taxed or deducted at the time of withdrawal. The PPF (public provident fund), (GPF) government provident fund, and pension fall under the EEE benefit.

Furthermore, the pension products also received special facilities.

What is Direct Tax? The tax paid to the government directly by the tax-payer (like the Capital Gains Tax and the Income Tax) are called Direct Tax. In other words, it can be stated direct tax is taken away from ones salary or wages directly. However, the property tax which is imposed by the government is also called direct tax. In India, the collections which are clubbed under direct taxes are Banking Cash Transaction, Securities Transaction Tax, Personal Income Tax, Corporate Tax and Fringe Benefit Tax. The collections of Direct Taxes in India are increasing smoothly over the years.

 

Income Tax in India: The income earned during a financial year (April 1^st till March 31^st) is taxable as per the prescribed rates for that year. Here, a resident based tax paying system is followed. The taxes are charged keeping in view the residential status (not citizenship). The categories are resident, resident but not ordinarily resident, and nonresident. In case of Indian sourced income- all the three categories are taxable in India. However, for the foreign sourced income of only the residents are charged. The foreign sourced incomes of the resident but not ordinarily resident and the non-resident are not taxable in India. The Indian companies are always categorized under Indian resident. Moreover, the companies which are controlled from India are also categorized as Indian. The rest of the companies are non-resident.

 

The Central Board of Direct Taxation (CBDT) takes care of the Direct Taxation in India. The CBDT is a division of revenue which is a part of the Ministry of Finance. It creates and regulates the direct taxes in India. It manages the direct tax law according to the rules of the Income Tax department. The revenue act of 1963 is utilized to govern the proceedings of CBDT.

 

The tax structure in India is divided amongst the local government, the state government and the central government. The central government charges taxes for income, service tax, central excise and custom duties. The state government charges taxes like professional tax, land revenue, VAT (value added tax), stamp duty and state excise. The civic (local) bodies charge taxes of properties and octroi. The capital gains, tax incentive, corporate and personal income tax also fall under this category.

 

In India, the following heads of income are taxed:

• Salaries: The payments received for rendering services, wages, pensions, fees, commissions, as well as the taxable amount of all prerequisites are covered under this head. In India, the employers are provided with standard rules for making these deductions. The deduction depends on the salary of the tax-payer.

 

• The income from a house or property: The income earned by renting out premises for residential or commercial purposes are taxed under this category. There are two prescribed cuttings under this head.

 

• The profits or gains from any business or profession: The revenue (above a certain limit) generated from business are permissible for deduction under the tax guidelines of India. The revenue expenditures are also taxed under this head following the taxation rules.

 

• The capital gains: The capital gains which arise from the transfer of the capital assets. The capital assets which are held for 36 months or less are short-term assets. However, the income from shares and securities of 12 months or more are considered to be long-term capitals. The long-term interests have a lower rate of interest.

• The income from other sources: The other sources of incomes cover any income which is not specified under any of the above heads. The expensed incurred while investing for this income is taken into consideration, and tax benefits are provided accordingly.

 

Changes in the direct tax slabs in India in the budget 2011-12: The exemption limit was increased from 1.6 lakhs to 1.8 lakhs. However because of inflation over 10 percent this has hardly benefited anybody. The minimum age to qualify as a senior citizen has been reduced from 65 to 60. Exemption limit for the senior citizens have been raised from 2.4 lakhs to 2.5 lakhs. The very senior citizens are exempt from paying taxes till the annual income of 5 lakhs. The salaried people need not file return for income tax if TDS is being deducted from their salary. If the tax is directly deducted from the salary then it is direct tax.

 

Analysis of the tax incidence on different investment tools:

 

Pays and Perks: The idea of bringing in the government provided accommodation as a part of the salary has been dropped. The perks of government staff will continue as before. The initial draft of the plan was confronted by the salaries class of government servants.

Income Tax Slabs: The draft states that there will be a 10 percent tax for the slab 1.8 lakhs to 10 lakhs, and 20 % for the others.

Home Loans: The government has planned to continue the major tax incentive on the housing loans. The tax payers will get benefit till the loan of 1.5 lakhs per annual but the rental income will be taxed.

Insurance and ULIPs: The new life insurance products do not have any tax proposed. These fall under the exempt-exempt-exempt rule. The new ULIPs issued after DTC can be taxed only after maturity. The existing ones will be relieved from tax only on midway withdrawal and maturity.

Equity Mutual Funds: The long-term capital gain tax on the unit of equity fund is proposed. It is planned to calculate the long-term gain on equity funds and equity only after the deduction of a certain percentage of the capital gains irrespective of any indexation.

What is Direct Tax? The tax paid to the government directly by the tax-payer (like the Capital Gains Tax and the Income Tax) are called Direct Tax. In other words, it can be stated direct tax is taken away from ones salary or wages directly. However, the property tax which is imposed by the government is also called direct tax. In India, the collections which are clubbed under direct taxes are Banking Cash Transaction, Securities Transaction Tax, Personal Income Tax, Corporate Tax and Fringe Benefit Tax. The collections of Direct Taxes in India are increasing smoothly over the years.

 

Income Tax in India: The income earned during a financial year (April 1^st till March 31^st) is taxable as per the prescribed rates for that year. Here, a resident based tax paying system is followed. The taxes are charged keeping in view the residential status (not citizenship). The categories are resident, resident but not ordinarily resident, and nonresident. In case of Indian sourced income- all the three categories are taxable in India. However, for the foreign sourced income of only the residents are charged. The foreign sourced incomes of the resident but not ordinarily resident and the non-resident are not taxable in India. The Indian companies are always categorized under Indian resident. Moreover, the companies which are controlled from India are also categorized as Indian. The rest of the companies are non-resident.

 

The Central Board of Direct Taxation (CBDT) takes care of the Direct Taxation in India. The CBDT is a division of revenue which is a part of the Ministry of Finance. It creates and regulates the direct taxes in India. It manages the direct tax law according to the rules of the Income Tax department. The revenue act of 1963 is utilized to govern the proceedings of CBDT.

 

The tax structure in India is divided amongst the local government, the state government and the central government. The central government charges taxes for income, service tax, central excise and custom duties. The state government charges taxes like professional tax, land revenue, VAT (value added tax), stamp duty and state excise. The civic (local) bodies charge taxes of properties and octroi. The capital gains, tax incentive, corporate and personal income tax also fall under this category.

 

In India, the following heads of income are taxed:

• Salaries: The payments received for rendering services, wages, pensions, fees, commissions, as well as the taxable amount of all prerequisites are covered under this head. In India, the employers are provided with standard rules for making these deductions. The deduction depends on the salary of the tax-payer.

 

• The income from a house or property: The income earned by renting out premises for residential or commercial purposes are taxed under this category. There are two prescribed cuttings under this head.

 

• The profits or gains from any business or profession: The revenue (above a certain limit) generated from business are permissible for deduction under the tax guidelines of India. The revenue expenditures are also taxed under this head following the taxation rules.

 

• The capital gains: The capital gains which arise from the transfer of the capital assets. The capital assets which are held for 36 months or less are short-term assets. However, the income from shares and securities of 12 months or more are considered to be long-term capitals. The long-term interests have a lower rate of interest.

• The income from other sources: The other sources of incomes cover any income which is not specified under any of the above heads. The expensed incurred while investing for this income is taken into consideration, and tax benefits are provided accordingly.

 

Changes in the direct tax slabs in India in the budget 2011-12: The exemption limit was increased from 1.6 lakhs to 1.8 lakhs. However because of inflation over 10 percent this has hardly benefited anybody. The minimum age to qualify as a senior citizen has been reduced from 65 to 60. Exemption limit for the senior citizens have been raised from 2.4 lakhs to 2.5 lakhs. The very senior citizens are exempt from paying taxes till the annual income of 5 lakhs. The salaried people need not file return for income tax if TDS is being deducted from their salary. If the tax is directly deducted from the salary then it is direct tax.

 

Analysis of the tax incidence on different investment tools:

 

Pays and Perks: The idea of bringing in the government provided accommodation as a part of the salary has been dropped. The perks of government staff will continue as before. The initial draft of the plan was confronted by the salaries class of government servants.

Income Tax Slabs: The draft states that there will be a 10 percent tax for the slab 1.8 lakhs to 10 lakhs, and 20 % for the others.

Home Loans: The government has planned to continue the major tax incentive on the housing loans. The tax payers will get benefit till the loan of 1.5 lakhs per annual but the rental income will be taxed.

Insurance and ULIPs: The new life insurance products do not have any tax proposed. These fall under the exempt-exempt-exempt rule. The new ULIPs issued after DTC can be taxed only after maturity. The existing ones will be relieved from tax only on midway withdrawal and maturity.

Equity Mutual Funds: The long-term capital gain tax on the unit of equity fund is proposed. It is planned to calculate the long-term gain on equity funds and equity only after the deduction of a certain percentage of the capital gains irrespective of any indexation.

What is Direct Tax? The tax paid to the government directly by the tax-payer (like the Capital Gains Tax and the Income Tax) are called Direct Tax. In other words, it can be stated direct tax is taken away from ones salary or wages directly. However, the property tax which is imposed by the government is also called direct tax. In India, the collections which are clubbed under direct taxes are Banking Cash Transaction, Securities Transaction Tax, Personal Income Tax, Corporate Tax and Fringe Benefit Tax. The collections of Direct Taxes in India are increasing smoothly over the years.

 

Income Tax in India: The income earned during a financial year (April 1^st till March 31^st) is taxable as per the prescribed rates for that year. Here, a resident based tax paying system is followed. The taxes are charged keeping in view the residential status (not citizenship). The categories are resident, resident but not ordinarily resident, and nonresident. In case of Indian sourced income- all the three categories are taxable in India. However, for the foreign sourced income of only the residents are charged. The foreign sourced incomes of the resident but not ordinarily resident and the non-resident are not taxable in India. The Indian companies are always categorized under Indian resident. Moreover, the companies which are controlled from India are also categorized as Indian. The rest of the companies are non-resident.

 

The Central Board of Direct Taxation (CBDT) takes care of the Direct Taxation in India. The CBDT is a division of revenue which is a part of the Ministry of Finance. It creates and regulates the direct taxes in India. It manages the direct tax law according to the rules of the Income Tax department. The revenue act of 1963 is utilized to govern the proceedings of CBDT.

 

The tax structure in India is divided amongst the local government, the state government and the central government. The central government charges taxes for income, service tax, central excise and custom duties. The state government charges taxes like professional tax, land revenue, VAT (value added tax), stamp duty and state excise. The civic (local) bodies charge taxes of properties and octroi. The capital gains, tax incentive, corporate and personal income tax also fall under this category.

 

In India, the following heads of income are taxed:

• Salaries: The payments received for rendering services, wages, pensions, fees, commissions, as well as the taxable amount of all prerequisites are covered under this head. In India, the employers are provided with standard rules for making these deductions. The deduction depends on the salary of the tax-payer.

 

• The income from a house or property: The income earned by renting out premises for residential or commercial purposes are taxed under this category. There are two prescribed cuttings under this head.

 

• The profits or gains from any business or profession: The revenue (above a certain limit) generated from business are permissible for deduction under the tax guidelines of India. The revenue expenditures are also taxed under this head following the taxation rules.

 

• The capital gains: The capital gains which arise from the transfer of the capital assets. The capital assets which are held for 36 months or less are short-term assets. However, the income from shares and securities of 12 months or more are considered to be long-term capitals. The long-term interests have a lower rate of interest.

• The income from other sources: The other sources of incomes cover any income which is not specified under any of the above heads. The expensed incurred while investing for this income is taken into consideration, and tax benefits are provided accordingly.

 

Changes in the direct tax slabs in India in the budget 2011-12: The exemption limit was increased from 1.6 lakhs to 1.8 lakhs. However because of inflation over 10 percent this has hardly benefited anybody. The minimum age to qualify as a senior citizen has been reduced from 65 to 60. Exemption limit for the senior citizens have been raised from 2.4 lakhs to 2.5 lakhs. The very senior citizens are exempt from paying taxes till the annual income of 5 lakhs. The salaried people need not file return for income tax if TDS is being deducted from their salary. If the tax is directly deducted from the salary then it is direct tax.

 

Analysis of the tax incidence on different investment tools:

 

Pays and Perks: The idea of bringing in the government provided accommodation as a part of the salary has been dropped. The perks of government staff will continue as before. The initial draft of the plan was confronted by the salaries class of government servants.

Income Tax Slabs: The draft states that there will be a 10 percent tax for the slab 1.8 lakhs to 10 lakhs, and 20 % for the others.

Home Loans: The government has planned to continue the major tax incentive on the housing loans. The tax payers will get benefit till the loan of 1.5 lakhs per annual but the rental income will be taxed.

Insurance and ULIPs: The new life insurance products do not have any tax proposed. These fall under the exempt-exempt-exempt rule. The new ULIPs issued after DTC can be taxed only after maturity. The existing ones will be relieved from tax only on midway withdrawal and maturity.

Equity Mutual Funds: The long-term capital gain tax on the unit of equity fund is proposed. It is planned to calculate the long-term gain on equity funds and equity only after the deduction of a certain percentage of the capital gains irrespective of any indexation.

Stocks Investment: In stock investment the difference between the long-term and short-term capital gains have been removed. These gains will be considered as income from the ordinary sources and will be taxed accordingly.

Provident Fund: All saving plans (inclusive of the PF’s) will be taxed or deducted at the time of withdrawal. The PPF (public provident fund), (GPF) government provident fund, and pension fall under the EEE benefit.

Furthermore, the pension products also received special facilities.

 

Stocks Investment: In stock investment the difference between the long-term and short-term capital gains have been removed. These gains will be considered as income from the ordinary sources and will be taxed accordingly.

Provident Fund: All saving plans (inclusive of the PF’s) will be taxed or deducted at the time of withdrawal. The PPF (public provident fund), (GPF) government provident fund, and pension fall under the EEE benefit.

Furthermore, the pension products also received special facilities.

 

Stocks Investment: In stock investment the difference between the long-term and short-term capital gains have been removed. These gains will be considered as income from the ordinary sources and will be taxed accordingly.

Provident Fund: All saving plans (inclusive of the PF’s) will be taxed or deducted at the time of withdrawal. The PPF (public provident fund), (GPF) government provident fund, and pension fall under the EEE benefit.

Furthermore, the pension products also received special facilities.

 

Women’s Day and Indian women: Few prosper, many languish!

 

March 8: Yes it’s Women’s Day, yet again! This year the day is even more special as it marks the 100 years of the observation of the 1^st International Women’s day. The first time, the Women’s Day was officially celebrated was on 19^th March, 1911 at Denmark, Austria, Switzerland and Germany. The decision for observing the International Women’s Day took place in the year 1910 at the 2^nd international conference of the working women that took place in Copenhagen.

During the second half of the 19th century, turbulence and confusion in the industrialized societies, made women demonstrate and protest against the poor pay structure, domineering working conditions, inequality etc. This coincided along with the increasing demands on the part of the women for having voting rights in different countries. The year 1908 saw the march of 15,000 women through the New York City in demand for short hours, good pay and of course voting rights. In the year 1909, the Socialist Party of America announced that 28^th February be observed as the 1^st National Women’s Day through out the nation.  Till 1913, the last Sunday in the month of February was being celebrated as the National Women’s Day in the US. The Russian women who were campaigning about peace during the World War I celebrated their 1st International Women’s Day on the last Sunday of the month of February in the year 1913. Nevertheless, in 1913 itself, an agreement was made where in International Women’s Day came to be celebrated on March 8.  It is celebrated in more than hundred nations.

Pt Jawaharlal Nehru once said that “You can tell the condition of a nation by looking at the status of its women”.

International Women’s Day happens to be the story how the ordinary women make it big in the pages of history or the minds of the people. It is the age old struggle and fight of women for life, enjoying equal power and opportunity as men and many more. As the entire world come together to celebrate this special day for the Women’s, a striking yet interesting facet in this male dominated corporate India represents the Indian Women at the top echelons in various sectors of life. Today some of the largest and finest organizations in the financial and banking sectors such as HSBC, the Indian Arm of JPMorgan Chase, Reserve Bank of India, have some efficient and talented women as leaders at the top!

India witnessed a series of changes over the years with a woman speaker, a woman president and a woman heading the ruling party, the United Progressive Alliance (UPA) at present. Indian women have successfully and proudly broken into many ‘male-only’ quarters and today the country has women pilots, taxi-drivers, bus drivers and conductors and many more! Making there presence felt in a big away, at the corporate world are women engineers, scientists, doctors etc.

In the villages also, many women can be found entering the work stream as non- conventional role players such as panchayat heads, plumbers to just name some of them.

But on this Women’s Day 2011, one question that creeps into million minds and specially the women is, are these changes truly for the better or are these mere cosmetic, superficial changes? Are these just tokenisms, existing in the face of a unfortunate reality?

Indian Women: The Unfortunate Reality!

Another Women’s Day: is it another chance for the national assessment of the position of women in India wherein the glass ceiling is definitely within the reach but not yet broken, where the entertainment of the public is dominated more by patriarchal clichés, where the health statistics are ascertained, still by gender, and wherein the female foeticide or female infanticide continue to grow despite the strides in different sectors.

People often say that India is the land where gleaming high-rises exist parallel with the desperate poverty. Quite similar is the case with Indian women. On one hand there are women making it real big in different sectors and there are also women facing gender discrimination, abuse and ill treatments, domestic violence etc. Figures give us a complete and true picture of the Indian Women: The Unfortunate Reality!

As per one of the reports, India in the year 2008, recorded the highest number of maternal deaths world wide with 63,000 deaths, which is even more than nations like Ethiopia and Afghanistan.

Gender discrimination continues to pose serious threats to girls and women in various sectors. Early marriage of girl child is yet another serious issue faced by India. As per the report of the Unicef, India has the highest percentage of underweight girls.

The sex ratio is still at 933 women per 1,000 males, and same is the case with the literacy rate of women in India, as well. Following the 2001 census, the literacy rate of the females was 54.28 percent in comparison to the male literacy rate that stands at 75.96 percent.

Adding to this are cases of dowry deaths, female foetcide and female infanticide, unequal pay rape, sexual harassments at the workplace and so many other threatening issues.

The entertainment industry, media, cinema, advertisements, television etc banks heavily on these women but unfortunately has done very little to address the problems and issues of the women in India.

Quite similar to the status of the Indian women in the country, is the Women’s Day, too; funny for many, a comment for some and just a celebration for others!

Can We Change it, this Women’s Day?

8^th March has been dedicated to the women of the entire world! It is the day when every woman should for once stop and reflect on one’s own achievements and congratulate oneself for the same.

To quote our former Miss Universe, Sushmita Sen:

“The origin of the child is the mother, a woman…she shows a man what loving, caring and sharing is all about…”

Women’s Day brings us an opportunity to honor and appreciate the women at our home, workplace, at the shop or the grocery store. Just a simple, small wish, a pat on her back, or only a small sms or email can make all the difference for her. Thank that special lady in your life, be it mother, wife, friend, sister, colleague etc; tell her how she is important to you. This small effort on your part is just enough to make the women smile with pride and joy!

They say that “Charity begins at home” nothing better than to start by apprizing the “everyday heroes”, the women at your home! Be it the working woman, a homemaker or a single mother, every day is a new day for them to struggle and fight their best out! They deserve as much praise and appreciation as the celebrities. 8^th March is the day to acknowledge and love these dynamic and courageous women in our lives! Let your mom, sister, wife, girlfriend, and every other lady feel special and happy about their invaluable contribution towards the society!

A woman’s essence surely lies in her abilities to love, care and sacrifice for others. Playing an enveloping character of a mother, wife, daughter, teacher, sister, friend, guide, nurturer and partner, Women are truly indispensable. Vulnerable yet emotional, erratic yet serene, women is the perfect combination of a diverse range of emotions Talk of being patient, she wont disappoint you; expecting her to be courageous in crisis, she would never fail.

Tormented and subjected for a long time and through ages, Indian women have fought through harassment, exploitation and fight their way out to secure their rights publicly. Despite the continuing injustice and exploitation against the women, at the working field as well as domestic, many milestones have been accomplished in connection with freedom of choice, education, liberty, equality etc. With increasing literacy and the financial independence enjoyed by women, today the women deserve a life of self worth and dignity! Women’s Day comes as a chance to celebrate the social, cultural, economic and political achievements by the women in India, and the entire world.

On the occasion of the Women’s Day, to name or point out one single woman in India for her contribution, won’t be fare, as we believe that everyone is special, valuable and unique in their own rights. Every woman makes a difference to India and to this World!

Women in India: The Past and the Present!

The women in India have seen their positions rising and falling from time to time and at various ages of history. While in the ancient India, the women enjoyed an equal if not higher position to that of men, the middle age saw a completely different picture. The women in the middle ages experienced very low points, where majority of them were suppressed and had no independence whatsoever. Child marriage, sati and ban on widow re-marriage became very common during this period.

In modern India, however, the position of women seems to be very different, paradoxical and contrasting. On one hand there are terrible stories of ‘dowry deaths’; female infanticide, child marriage happening in India. Villages and small town women are faced with constant victimization, by influencing figures and even their families.  On the other hand, high offices at various sectors are held by the Indian Women. They are excelling in all fields from sports, education politics, art and culture to media, science and technology and other service sectors.

The Constitution of India has guaranteed equality (Article 14), no discrimination by the State (Article 15(1)), equality of opportunity (Article 16), equal pay for equal work (Article 39(d)) to every woman in India. However, how much of these are executed in the practical life is a question that still lingers.

India is honored as the “Motherland”. Adoration towards feminine faith and power and recognizing the potential of women is that what have been the source and foundation of strength and growth. India is home to a large number of distinguished women who breathed in development and change in every section of the society. While some remain at the helm of respect and tribute, some others fade away in one of those uncertain corners. Women’s Day and Indian women: Few prosper, many languish!

SO this International Women’s Day, we would like to reach out to those ‘unknown heroes’ whose untiring efforts couldn’t find a way of expression. Let’s celebrate for those women in India, who stand out with their wisdom, grit and everything, which prove them worth appreciating. We believe that every woman is special and we respect what we believe!

Can Budget 2011 strike a balance between supply and demand?

Its February again, time for the Union Budget! As per Article 112 of the Indian Constitution, the Union Budget of India, that is the annual budget of the country, is also known as the Annual Financial Statement. The budget is required to be approved and passed by the Parliament prior to its coming into existence on 1^st of April, which happens to be the beginning of India’s financial year. Like every other year, the Union Finance Minister of India, Mr. Pranab Mukherjee will present the budget for the year 2011, on the last working day of the month of February

Although, the crucial budget document is prepared in complete privacy, yet each one of us is definitely interested to get an overview about the whole process and have an idea of the India Budget Expectations 2011. Some of you might also have started anticipating India’s Budget Results, 2011; isn’t it? Can Budget 2011 strike a balance between supply and demand? Let’s see!

There could be several reasons and thought processes that goes beyond our expectations from the Union Budget for 2011! Economic growth and development has been noticed in various sectors following the many proposals and initiatives mentioned in the Union Budget of India in the financial year of 2010-11, for the year 2010. This year the budget expectations are quite high unlike few years back, wherein the country’s economy was still reeling under the economic depression that was created by the economic meltdown, globally. Since the Indian Economy is slowly getting back to its track, it can be expected that the budget will bring something beneficial to us. It is being expected that this time, the budget would lay stress on controlling price hikes, controlling the inflation rate, cutting down on fiscal deficit etc.

Straightening up of the PDS and do away with the outflows!

In order to achieve and all-round development of the country and its people, the government should ensure that everyone has access to the essential and the very fundamentals of life such as health, food, education, infrastructure, and security. This calls for the growth and development of the skills in the country. The government has taken up several measures on this front such as the formation of the National Skill Development Co-ordination Board, Skill Development Mission, and NREGA (National Rural Employment Guarantee Act); now the need however is to ensure the effective and proper realization of the plans. Social welfare must count as the first priority for the Government, always.

Inflation – An intense and a burning reality!

Inflation is everywhere! So it’s quite possible that we gate to see its mention in several policy decisions in order to initiate some corrective measures. It could be anything from the usage of sophisticated techniques of farming, to monetary policy or even the budgetary policies that are framed to control the augmented pricing pressures.

As the Government commits towards the controlling of food inflation, the Finance Minister of India might be expected to unleash some of the major measures in the Budget 2011. This might include the opening of distribution and procurement centers for food grains, promote more investment in agri infrastructure, increase the expenditure on irrigation to enhance the overall productivity of the farm sector.

Simplification and Systematization of the Tax System!

Pranab Mukherjee has really done a good job by extending the tax slabs. This has helped people, specially the salaried persons immensely. The high limit of tax-exemption also has brought extra tax revenues for the exchequer since it doesn’t encourage the suppressing of the unaccounted money. There is still a possibility of improvement at the lower end income group, on the present no-tax limit for up to income of Rs.1.6 lakh.

The deadlock on GST (Goods and Service Tax) should not be extended any further by the Government of India. The Government should rather take initiatives to introduce the new tax system from 1^st April, 2012. This would allow the current players to plan their ventures thereby including the cost of operation. It is highly recommended that the Government should cut down on CST that is the Central Sales Tax rate should be cut down to minimum 1% with effect from April 1, 2011.

Deregulation of the Fuel price!

Last year, the price of petrol was deregulated by the UPA government in order to shrink the fiscal deficit of the country, thereby helping the oil marketing companies to reduce their losses on the selling of fuel at subsidized rates.

Is the Government now thinking of deregulating the price of diesel now that constitutes a major share of fuel subsidy bills?

Retail FDI – Tighten Supply Chain!

The recent increase in the price of food has been the result of hoarding up of stock by the intermediaries or because of the supply shortage in the farm production. In order to manipulate the price, FDI can definitely support the government to de-bottleneck the chain of supply that is hindered by the not so effective distribution channel.

Focus on Infrastructure Growth!

A sustained infrastructural growth and development is essential in order to provide that momentum to India’s economic activities, thereby achieving optimum utilization of resources. In order to promote the joint ventures of the public and the private sector and the entry of FDI or Foreign Direct Investment into the infrastructural domain, an appropriate, genuine, organizational, and reliable model must be introduced. The Government should aim at increasing the Gross Domestic Product (GDP). It should take initiatives to plan and develop large amount of corpus for a long term towards the development of infrastructure by the use of debt funds.

Cut down on Excise and Service Tax!

Last year, the excise duty was raised to 10% by the Government, on the non-oil products for withdrawing stimulus, thereby creating sources for the funds that would cut down on the extensity of the fiscal deficit condition. Owing to inflation and rising cost of commodities, India should try and cut down on the Service tax and the excise duty. Corporate tax rates should also be brought down.

Education – Learn as you grow!

Education and Growth can be said to be the two sides of the same coin! While Education results in higher employment, this is turn paves the way for growth and development of the country. In the past few years, the education sector has witnessed several reform measures both at higher as well as primary level of education.

The implementation of the PPP model that is the public-private partnership model can prove very beneficial for the education sector and help in bringing success and sustainable momentum in the long run. The Government needs to fund the projects and encourage and trust the private sector for the final delivery of the models.

Agriculture!

For ensuring the economic growth and development of the country, it is important that India’s agriculture sector grows at a fast pace. Many people in the country still suffer from food insecurity and malnutrition. The Indian Government of India already undertook the National Food Security Mission (NFSM) in the year 2008 but it was not properly supported. The Government should now take the responsibility to support the mission properly for eradicating the malnutrition from the nation. One of the best possible ways would be to combine the mission with other flagship projects such as NREGA etc for reliving the underprivileged people in India, especially those in villages, from nutrition problems.

Since agriculture contributes immensely to the GDP of India, the Government, this year is expected to focus on the problem of rising prices. Higher should be the aim of the government. Favorable policies in the agro input sector, etc would surely help in utilizing the business potentials, in the future.

Indian Railways!

Couple of years back, India’s Railway Department had managed to bring around a good financial turnaround without any hike in the passenger fares. But this year, estimates say that the Indian Railways might miss out on the target for the year 2010-11. In the year 2010, Railways incurred a huge loss of Rs. 4000 crore. This was mainly because of the negative impacts on freight earnings and the setback on passenger earnings owing to the Naxal activities in several states of India.

The question that crops up in this situation is that will India’s Railway Department suffer a setback this time?

Information Technology!

The IT industry in India has shown amazing resilience during the period of recession.  The demand for the IT Services exports is being expected to go on with countries like Europe and US recovering and also due to the increase in discretionary that the consumers spend on IT infrastructure. As per the reports by NASSCOM, it is expected that the exports would dominate the IT industry in India that comes to about USD 59 billion out of USD 76 billion in the software industry.

However, there are certain concerns and fear as well for the IT sector such as slower recovery that the developed markets of US etc, high wage inflation and attrition, pricing pressure owing to competition in the domestic markets and protectionist stance on the part of the Government of US etc. With such a scenario in the backdrop the IT industry must be eagerly awaiting for the proposal in the budget, by the Government.

Construction!

Construction & Infrastructure contributes to about 8-10% in the GDP of India. For an overall development of the country, the importance and role of infrastructure is not unknown to us. However, a big gap has been created in the targets that have been set up for the infrastructure industry and the achievements. This has been due to the slow functioning of the several related sectors, shortfall in the awarding projects, funding potential shortfalls, time and cost overruns in the construction phase etc. Government should now start addressing these problems in the Construction and Infrastructure industry. This year, as per the signals from the Finance Minister, the infrastructure sector is expected to restrict itself from its expectations on tax relief and tax breaks, thereby focusing on how to raise capital and engage in project development.

FMCG!

The FMCG sector saw a series of new launches as well as acquisitions in the year 2010, which contributed phenomenally to the sector with a growth of about 15%. The GDP growth was estimated to be 8.75% in FY11. Hence the sector is expected to continue this way, although it will be faced with several challenges such as irregular monsoon and inflation. After the harvest of the Rabi crop, we can expect the situation to get reversed. With a shift in demand from need to want, it is being expected that the categories associated with home care and personal care would grow at a rate of 15% and 20% correspondingly, in CY11.

Telecom Services & Equipments!

At the moment, the telecom industry in India is characterized by high operating cost, stagnant revenue, huge debt, dwindling earnings, regulatory uncertainty etc. There has been a very slow revenue growth at about 0.4%. The launch of 3G and MNP might act as the immediate momentum. With key metrics declining at an abating rate, it is expected that the telecom sector would do better in FY12E in comparison to FY11E. Companies having foreign market exposure might experience higher growth. During FY12, while the telecom stocks may stay subdued, but at the end of FY12E we might witness the narrowing down of discounts in the broader markets.