The Union Finance Minister, Shri Pranab Mukherjee has stated that today’s announcements of RBI concerning Monetary Policy would help in regaining our growth momentum with improved macro-economic parameters in the remaining period of the current fiscal 2011-12. The Finance Minister was reacting to the RBI’s Mid Quarter Review of Monetary Policy for 2011-12 which was announced by RBI Governor in Mumbai today. Shri Mukherjee welcomed the RBI Governor’s resolve to check the speculative interventions in the foreign exchange market which among other factors has contributed to the sharp depreciation in the Indian Rupee against the US Dollar. The Finance Minister, Shri Mukherjee said that inflation will moderate further in the coming weeks and therefore, the today’s announcements of RBI are welcome.
Special Bonus Benefit Scheme: A new scheme to provide special assistance to specified sectors for 6 months has been introduced. The support is given to Engineering, Pharmaceutical and Chemical sectors covering 50 products. This scheme will be available on exports made on or after 1.10.2011 and up to 31.3.2012. The rate of duty credit is 1% of FOB value of exports.
In a startling revelation, official auditor CAG today said the government has a huge tax demand of Rs 1.96 lakh crore, of which 84 per cent cannot be realised due to various reasons like death, insolvency and liquidation of company. Out of Rs 1.96 lakh crore, the arrear demand reported by DIT ( Department of Income Tax) Recovery, a major portion, i.e, 84.3 per cent amounting to Rs 1.65 lakh crore was categorised as unrealisable demand by the Department, said the report tabled in Parliament.
With a view to providing greater flexibility to banks in mobilising non-resident deposits and also in view of the prevailing market conditions, it has been decided to deregulate interest rates on Non-Resident (External) Rupee (NRE) Deposits and Ordinary Non-Resident (NRO) Accounts (the interest rates on term deposits under Ordinary Non-Resident (NRO) Accounts are already deregulated). Accordingly, banks are free to determine their interest rates on both savings deposits and term deposits of maturity of one year and above under Non-Resident (External) Rupee (NRE) Deposit accounts and savings deposits under Ordinary Non-Resident (NRO) Accounts with immediate effect. However, interest rates offered by banks on NRE and NRO deposits cannot be higher than those offered by them on comparable domestic rupee deposits.
Please refer to Para 27 of the Mortgage Guarantee Company (Reserve Bank) Guidelines 2008 issued vide Notification DNBS(PD)MGC No.3 /CGM (PK) – 2008 dated February 15, 2008 wherein it has been stated that no mortgage guarantee company shall provide mortgage guarantee for a housing loan with 90% and above LTV ratio. As scheduled commercial banks are expected to seek mortgage guarantee for their housing loans, it has been decided to align the regulatory prescription of LTV ratio for mortgage guarantee companies with that of commercial banks and revise it downwards from 90% to 80% for housing loans exceeding Rs. 20 lakhs. However for small value housing loans i.e housing loans up to Rs. 20 lakh (which get categorized as priority sector advances), LTV ratio should not exceed 90%.
The Ministry of Corporate Affairs will organize a week long India Corporate and Investor Meet from February 6 to 12, 2012 in the five metro cities, namely, Kolkata, Chennai, Mumbai, Bangalore and Delhi. A decision to this effect was taken in a meeting chaired by Dr. M. Veerappa Moily, Union Minister for Corporate Affairs yesterday. The senior representatives from leading trade chambers of the country, namely, CII, FICCI, PHDCCI, IMC and ASSOCHAM were present in the meeting besides the Secretary, Corporate Affairs, Shri Naved Masood and other senior officials of the Ministry. The officials from the three professional institutes attached with the Ministry i.e. ICAI, ICSI and ICWAI, were also present during the deliberations.
NEW MANUFACTURING POLICY -The Government of India has announced a national manufacturing policy with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs. It also seeks to empower rural youth by imparting necessary skill sets to make them employable. Sustainable development is integral to the spirit of the policy and technological value addition in manufacturing has received special focus.
CIT Vs.Nimbus Communications Limited (Bombay HC) – there is dispute that the assessee has in fact incurred the expenditure and that on account of the aborted public issue offer, no new asset has come into existence and consequently there is no question of the assessee getting any enduring benefit. With the approval of SEBI, the assessee was to increase the share capital and thereby promote its business activity. However, the same got aborted due to reasons beyond its control. In these circumstances, in view of the decision of this Court in the case of Commissioner of Income Tax V/s. M/s.Essar Oil Limited, Income Tax Appeal (L) No.921 of 2006 decided on 16th October 2008, in our opinion, no fault can be found with the decision of the Income Tax Appellate Tribunal in allowing the aborted share issue expenditure under Section 37 of the Income Tax Act, 1961.
Direct Taxes Committee of ICAI undertook the task of submission of Pre- Budget Memorandum to the Ministry of Finance. For accomplishing the same, suggestions on direct tax laws were invited from members across the country. The suggestions so received from each and every member were duly considered by the Direct Taxes Committee for inclusion in the Pre-Budget Memorandum.
Yesterday I received a mail regarding silent protest being arranged by Kolkata region of ICWAI. They have planned a press conference and a candle light march. By find the whole think a part of gimmick being placed on the whole context of our loosing out . Before I comment and share my words I have some interesting thoughts to provide where I want my friends to spare some time.
