February 2016

Union Budget 2016 Highlights !!!!

Union Budget 2016 Highlights, Indian Economy, Budget 2016,

Union Budget 2016 Highlights !!!!

1. Rs. 35984 crores allotted for agriculture sector.2. Rs. 17000 crores for irrigation projects.
3. Two new Organic farming scheme for 5 lakh acres.
4. Rs. 19000 crores for Gram Sadak Yojana
5. Rs. 9 Lakh Crores Agriculture Credit Target.
6. Rs. 38500 crores for MANREGA, highest ever.
7. Rs. 2.87 Lakh crores to be spent on Villages in total.
8. Rs. 9000 crores for Swach Bharat Mission.
9. Rs. 97000 Crores for Roads.
10. Total Outlay on Roads and railway Rs. 2.18 Lk Crores.
11. Rs. 2.21 Lakh Crores on Infra Projects.
12. NHAI to raise Rs. 15000 crores via NHAI Bonds.
13. More benches for SEBI Appellate tribunal.
14. Registration of Company in One Day for Start-ups.
15. Rs. 25000 crores for Banks rehabilitation.
16. 100% FDI for food processing.
17. Non planned expenditure of Rs. 14.28 Lk Crores.
18. Planned expenditure increased by 15.3% .
19. Relief Section 87A Rs. 2000 to Rs. 5000
20. Relief Sec 80GG Rs. 24000 to Rs. 60000
21. Section 44AD limits Rs. 1 crores to Rs. 2 crores. Rs. 50 Lakh for professional
22. Accelerated depreciation limited to 40%
23. New manufacturing companies will pay tax @ 25%.
24. LTCG on unlisted securities limited to 2 years.
25. 100% tax deduction for companies building houses upto 30 sq. mtrs.
26. Additional interest deduction for first house.
27. No service tax for building houses upto 60 sq mtrs.
28. 10% dividend tax for recipient over Rs. 10 lakh per annum.
29. TCS on purchase of asset over Rs. 2 Lakh in case and luxury cars.
30. VDS Scheme @ 30% + surcharge, Ist June to 30th September 2016.
31. Dispute resolution for appeal pending before Commissioner(Appeals).
32. Penalty for concealment of Income from 100-300% to 50-200%.
33. Rationalisation of TDS provisions.
34. 11 new benches for Income Tax Appellate tribunal.
35. No face to face scrutiny…..

July 2013

Why RBI has hiked the Base Rate on Jul 15 & Implications

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Reserve Bank Of India (RBI) announced several measures day before yesterday late evening to tighten liquidity in the system and arrest depreciation of rupee.  Why RBI wants to tighten liquidity and why the urgency.

RBI had tightened liquidity to support rupee during Asian crisis:

Historically, During the Asian crises of 1997-98, the RBI raised its benchmark interest rate by three percentage points in one go to 8%, in order to attract capital from foreign investors. The RBI had raised the bank rate and cash reserve ratio of banks too. This had sucked out liquidity, and interest rates had skyrocketed. This checked the run on the rupee.

The reason for this move and its impact:

Liquidity had eased considerably in June and that had brought the overnight rates (also CP, CD) rates below the Repo rate. With these measures, RBI will be able to raise the effective short term interest rate considerably without hiking the policy rate. (more…)

December 2012

Key Figures ~ Indian Economy ~ Week Ending Dec 07 2012

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Here are some key figures of the Indian Economy as of Dec 07 2012

Key Current Rate – Indian Economy
  Policy Rate
Bank Rate 9.00%
Repo Rate 8.00%
Reverse Repo Rate 7.00%
  Reverse Ratio
CRR Rate 4.25%
SLR Rate 23.0%
  RBI Reference Rate / Exchange Rate
INR / 1 USD  54.44
INR / 1 Euro  70.37
INR / 100 Jap.YEN  66.02
INR / 1 Pound Sterling   87.31
  Lending & Despite Rate
PLR 9.75%-10.50%
Saving Bank Rate 4.00%
Deposite Rate 8.50% – 9.00%
  Market Trends
  Government Securities Market
8.13% GOVT.STOCK 2022  8.0907%-8.0907%
91 day T – Bill  8.19  % *
182 day T – Bill  8.14  % *
364 day T – Bill  8.11  % *
* Cut of at the last auction
  Money Market
Call Rate  7.00%-8.15%
  Capital Market
BSE Sensex  19424.10  -62.70  -0.32%
NSE Nifty  5907.40  -23.50  -0.40%

~ Data Source : Ace Equity