Republic of India
Cabinet Ministers (as on 13.07.2011)
S.No. Name Portfolio
1 Dr. Manmohan Singh Prime Minister and also in-charge of the Ministries/Departments not specifically allocated to the charge of any Minister viz.:
(i) Ministry of Personnel, Public Grievances & Pensions;
(ii) Ministry of Planning;
(iii) Department of Atomic Energy; and
(iv) Department of Space.
2 Shri Pranab Mukherjee Minister of Finance.
3 Shri Sharad Pawar Minister of Agriculture and Minister of Food Processing Industries.
4 Shri A.K. Antony Minister of Defence.
5 Shri P. Chidambaram Minister of Home Affairs.
6 Shri S.M. Krishna Minister of External Affairs.
7 Shri Virbhadra Singh Minister of Micro, Small and Medium Enterprises.
8 Shri Vilasrao Deshmukh Minister of Science and Technology and
Minister of Earth Sciences.
9 Shri Ghulam Nabi Azad Minister of Health and Family Welfare.
10 Shri Sushilkumar Shinde Minister of Power.
11 Shri M. Veerappa Moily Minister of Corporate Affairs.
12 Dr. Farooq Abdullah Minister of New and Renewable Energy.
13 Shri S. Jaipal Reddy Minister of Petroleum and Natural Gas.
14 Shri Kamal Nath Minister of Urban Development.
15 Shri Vayalar Ravi Minister of Overseas Indian Affairs and
Minister of Civil Aviation
16 Smt. Ambika Soni Minister of Information and Broadcasting.
17 Shri Mallikarjun Kharge Minister of Labour and Employment.
18 Shri Kapil Sibal Minister of Human Resource Development and
Minister of Communications and Information Technology
19 Shri Anand Sharma Minister of Commerce and Industry and
Minister of Textiles.
20 Shri C.P. Joshi Minister of Road Transport and Highways.
21 Kumari Selja Minister of Housing and Urban Poverty Alleviation and
Minister of Culture.
22 Shri Subodh Kant Sahay Minister of Tourism.
23 Shri G.K. Vasan Minister of Shipping.
24 Shri Pawan Kumar Bansal Minister of Parliamentary Affairs and
Minister of Water Resources.
25 Shri Mukul Wasnik Minister of Social Justice and Empowerment.
26 Shri M.K. Alagiri Minister of Chemicals and Fertilizers.
27 Shri Praful Patel Minister of Heavy Industries and Public Enterprises.
28 Shri Shriprakash Jaiswal Minister of Coal.
29 Shri Salman Khursheed Minister of Law and Justice and
Minister of Minority Affairs.
30 Shri V. Kishore Chandra Deo Minister of Tribal Affairs and
Minister of Panchayati Raj.
31 Shri Beni Prasad Verma Minister of Steel.
32 Shri Dinesh Trivedi Minister of Railways.
33 Shri Jairam Ramesh Minister of Rural Development and
Minister of Drinking Water and Sanitation.
Ministers of State (Independent Charge) (as on 13.07.2011)S.No. Name Portfolio
1. Shri Dinsha J. Patel Minister of State (Independent Charge) of the Ministry of Mines
2. Smt. Krishna Tirath Minister of State (Independent Charge) of the Ministry of Women and Child Development
3. Shri Ajay Maken Minister of State (Independent Charge) of the Ministry of Youth Affairs and Sports
4. Prof. K.V. Thomas Minister of State (Independent Charge) of the Ministry of Consumer Affairs, Food & Public Distribution
5. Shri Srikant Jena Minister of State (Independent Charge) of the Ministry of Statistics and Programme Implementation and
Minister of State in the Ministry of Chemicals and Fertilizers
6. Smt. Jayanthi Natarajan Minister of State (Independent Charge) of the Ministry of Environment and Forests
7. Shri Paban Singh Ghatowar Minister of State (Independent Charge) of the Ministry of Development of North Eastern Region
Ministers of State (as on 13.07.2011)S.No. Name Portfolio
1. Shri E. Ahamed Minister of State in the Ministry of External Affairs and
Minister of State in the Ministry of Human Resource Development
2. Shri Mullappally Ramachandran Minister of State in the Ministry of Home Affairs
3. Shri V. Narayanasamy Minister of State in the Ministry of Personnel, Public Grievances and Pensions and
Minister of State in the Prime Minister’s Office
4. Shri Jyotiraditya Madhavrao Scindia Minister of State in the Ministry of Commerce and Industry
5. Smt. D. Purandeswari Minister of State in the Ministry of Human Resource Development
6. Shri K.H. Muniappa Minister of State in the Ministry of Railways
7. Smt. Panabaka Lakshmi Minister of State in the Ministry of Textiles
8. Shri Namo Narain Meena Minister of State in the Ministry of Finance
9. Shri M.M. Pallam Raju Minister of State in the Ministry of Defence
10. Shri Saugata Ray Minister of State in the Ministry of Urban Development
11. Shri S.S. Palanimanickam Minister of State in the Ministry of Finance
12. Shri Jitin Prasada Minister of State in the Ministry of Road Transport and Highways
13. Smt. Preneet Kaur Minister of State in the Ministry of External Affairs
14. Shri Harish Rawat Minister of State in the Ministry of Agriculture; Minister of State in the Ministry of Food Processing Industries and Minister of State in the Ministry of Parliamentary Affairs
15. Shri Bharatsinh Solanki Minister of State in the Ministry of Railways
16. Shri Mahadev S. Khandela Minister of State in the Ministry of Tribal Affairs
17. Shri Sisir Adhikari Minister of State in the Ministry of Rural Development
18. Shri Sultan Ahmed Minister of State in the Ministry of Tourism
19. Shri Mukul Roy Minister of State in the Ministry of Shipping
20. Shri Choudhury Mohan Jatua Minister of State in the Ministry of Information and Broadcasting
21. Shri D. Napoleon Minister of State in the Ministry of Social Justice and Empowerment
22. Dr. S. Jagathrakshakan Minister of State in the Ministry of Information and Broadcasting
23. Shri S. Gandhiselvan Minister of State in the Ministry of Health and Family Welfare
24. Shri Tusharbhai Chaudhary Minister of State in the Ministry of Road Transport and Highways
25. Shri Sachin Pilot Minister of State in the Ministry of Communications and Information Technology
26. Shri Pratik Prakashbapu Patil Minister of State in the Ministry of Coal
27. Shri R.P.N. Singh Minister of State in the Ministry of Petroleum and Natural Gas and
Minister of State in the Ministry of Corporate Affairs
28. Shri Vincent Pala Minister of State in the Ministry of Water Resources and Minister of State in the Ministry of Minority Affairs
29. Shri Pradeep Jain Minister of State in the Ministry of Rural Development
30. Ms. Agatha Sangma Minister of State in the Ministry of Rural Development
31. Shri Ashwani Kumar Minister of State in the Ministry of Planning; Minister of State in the Ministry of Science and Technology and
Minister of State in the Ministry of Earth Sciences
32. Shri K.C. Venugopal Minister of State in the Ministry of Power
33. Shri Sudip Bandyopadhyay Minister of State in the Ministry of Health and Family Welfare
34. Shri Charan Das Mahant Minister of State in the Ministry of Agriculture and
Minister of State in the Ministry of Food Processing Industries
35. Shri Jitendra Singh Minister of State in the Ministry of Home Affairs
36. Shri Milind Deora Minister of State in the Ministry of Communications and Information Technology
37. Shri Rajeev Shukla Minister of State in the Ministry of Parliamentary Affairs
Showing posts with label CONTEMPORARY THINGS. Show all posts
Showing posts with label CONTEMPORARY THINGS. Show all posts
Thursday, July 14, 2011
Sunday, July 10, 2011
Pro-poor Governance Remains Sole Agenda For Developing Nations
India is the fastest growing economy with all the states contributing immensely. The country is making advancements in all spheres and a number of social sector and poverty alleviation programmes like Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) have caught attention of developing nations. The only challenge is to reach out the deprived and weed out corruption. Preventing the leakage of public money is the most urgent task before the nation. Indian states need to come forward and prescribe effective, innovative and replicable strategies. Public service delivery systems need fundamental improvements and innovative remodelling. A vast country like India needs effective governance, IT-enabled transparent systems, innovative people-centric programme designing and pro-poor approach to policy making. We are striving to make Madhya Pradesh a model in pro-poor governance. The reason is that the benefits of economic growth must reach out to the deprived.
There is no other country like India that having socio-economic and cultural diversity. The ethnic diversity posts challenges before the policy makers as every community needs specific development interventions and for every initiative requires a specific implementation mechanism. We have pursued the concept of Antyodaya that means economic rising of those unreached so far. The Public Service Delivery Guarantee Act 2010 serves a unique example in the country to ensure timely services to people. We are the first among Indian states to have enacted this path-breaking law. The objective is to make administration responsive and accountable to people. There is a time limit for every service. In case of delay, the officials responsible for delivery of services will be fined Rs. 250 per day until the delivery of services. Tendency of delaying the services on the part of concerning officials may invite disciplinary action. Within six months of implementing the legislation, enthusiastically prompt disposal of applications seeking different services from nine key departments was reported. So far, 48 lakh applicants taking help of the Act have been got services within time frame. Now Bihar, Uttar Pradesh, Jammu and Kashmir, Goa, Delhi Governments are adopting the Act due to its effectiveness. I describe it as a pioneer initiative as it would promote a work culture answerable to the common people.
To me, corruption is a world wide phenomenon. All developing nations are suffering from menacing corruption, which halts development process. We can make stringent laws to prevent corruption but can not motivate persons to shun their greed for money. It is only by creating models and examples, the possibilities of corruption can be averted and gradual evolution corrupt practices can be checked. Recently, we enacted radical legislation that enables the state government to confiscate properties of corrupt public servants amassed by illegal means. The confiscated properties can be used as public asset.
Mechanism for direct cash transfer to the stake-holders is another way to prevent leakage of public money. This avoids chances of corruption as money reaches out directly to the needy. Madhya Pradesh is the only Indian state to have tried it with encouraging success. Thousands of wheat growing farmers are receiving the remuneration of their produce directly into their accounts immediate after sale in the farm produce trading yards. Similarly, parents are getting cash to purchase cycles and uniforms. This simple decision has addressed many grievances of parents.
The Indian states need simultaneous growth of social and economic infrastructures. Those deprived need social justice delivery systems and those having resources need growth opportunities. Entrepreneurship training on a massive scale for the rural and urban youths is an urgent task. The idea of social justice is deeply embedded into the governance systems in India. The preamble of the Indian Constitution itself is an embodiment of the concept social justice. Mechanism for delivery of social justice, precautionary legal measures and social safeguards suggested in the Constitution for protection of human rights have been demonstrated well in the public policies and programmes.
The biggest question is that who needs social justice and whose human rights are denied. What makes service delivery systems and administration of social justice defunct? Legislature makes laws that reflect people’s aspirations. Executive implements them in letter and spirit and Judiciary protects legal rights and entitlements bringing justice to the needy. These organs of India’s parliamentary democracy function according to their specific mandate. Now it is the time to improve governance systems for effective delivery of social justice and creating a congenial environment in which there is not a slightest possibility of violation of human rights.
The States have been given enough powers and flexibilities to evolve their own governance practices. Many have performed well. We have novel schemes like Ladli Laxmi and Mukhya Mantry Kanya Dan. The former assures education of daughters of poor families and later is about marriage of daughters, whose families can not bear the expenses of marriage ceremonies.
The only problem states face is the understaffed service delivery system and geographical distance between service delivery system and the physical dwelling of the prospective beneficiaries. The composition of village also creates a problem. In states like Madhya Pradesh, one village is composed of even seven to eight hamlets and distance between two hamlets is sometimes more than 10 kms. In geographical constraints like this, the only solution is to reach out to the needy populations.
There is no other country like India that having socio-economic and cultural diversity. The ethnic diversity posts challenges before the policy makers as every community needs specific development interventions and for every initiative requires a specific implementation mechanism. We have pursued the concept of Antyodaya that means economic rising of those unreached so far. The Public Service Delivery Guarantee Act 2010 serves a unique example in the country to ensure timely services to people. We are the first among Indian states to have enacted this path-breaking law. The objective is to make administration responsive and accountable to people. There is a time limit for every service. In case of delay, the officials responsible for delivery of services will be fined Rs. 250 per day until the delivery of services. Tendency of delaying the services on the part of concerning officials may invite disciplinary action. Within six months of implementing the legislation, enthusiastically prompt disposal of applications seeking different services from nine key departments was reported. So far, 48 lakh applicants taking help of the Act have been got services within time frame. Now Bihar, Uttar Pradesh, Jammu and Kashmir, Goa, Delhi Governments are adopting the Act due to its effectiveness. I describe it as a pioneer initiative as it would promote a work culture answerable to the common people.
To me, corruption is a world wide phenomenon. All developing nations are suffering from menacing corruption, which halts development process. We can make stringent laws to prevent corruption but can not motivate persons to shun their greed for money. It is only by creating models and examples, the possibilities of corruption can be averted and gradual evolution corrupt practices can be checked. Recently, we enacted radical legislation that enables the state government to confiscate properties of corrupt public servants amassed by illegal means. The confiscated properties can be used as public asset.
Mechanism for direct cash transfer to the stake-holders is another way to prevent leakage of public money. This avoids chances of corruption as money reaches out directly to the needy. Madhya Pradesh is the only Indian state to have tried it with encouraging success. Thousands of wheat growing farmers are receiving the remuneration of their produce directly into their accounts immediate after sale in the farm produce trading yards. Similarly, parents are getting cash to purchase cycles and uniforms. This simple decision has addressed many grievances of parents.
The Indian states need simultaneous growth of social and economic infrastructures. Those deprived need social justice delivery systems and those having resources need growth opportunities. Entrepreneurship training on a massive scale for the rural and urban youths is an urgent task. The idea of social justice is deeply embedded into the governance systems in India. The preamble of the Indian Constitution itself is an embodiment of the concept social justice. Mechanism for delivery of social justice, precautionary legal measures and social safeguards suggested in the Constitution for protection of human rights have been demonstrated well in the public policies and programmes.
The biggest question is that who needs social justice and whose human rights are denied. What makes service delivery systems and administration of social justice defunct? Legislature makes laws that reflect people’s aspirations. Executive implements them in letter and spirit and Judiciary protects legal rights and entitlements bringing justice to the needy. These organs of India’s parliamentary democracy function according to their specific mandate. Now it is the time to improve governance systems for effective delivery of social justice and creating a congenial environment in which there is not a slightest possibility of violation of human rights.
The States have been given enough powers and flexibilities to evolve their own governance practices. Many have performed well. We have novel schemes like Ladli Laxmi and Mukhya Mantry Kanya Dan. The former assures education of daughters of poor families and later is about marriage of daughters, whose families can not bear the expenses of marriage ceremonies.
The only problem states face is the understaffed service delivery system and geographical distance between service delivery system and the physical dwelling of the prospective beneficiaries. The composition of village also creates a problem. In states like Madhya Pradesh, one village is composed of even seven to eight hamlets and distance between two hamlets is sometimes more than 10 kms. In geographical constraints like this, the only solution is to reach out to the needy populations.
Sunday, June 12, 2011
The Educational Reforms : INDIA
National Commission for Higher Education
Government is considering a proposal for the setting up of National Commission/Council for Higher Education and Research for prescribing standards of academic quality and defining policies for advancement of knowledge in higher educational institutions based on the principle of enhancing autonomy of universities and institutions of higher learning and research.
National Accreditation Regulatory Authority
The National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 recently introduced in the Parliament, proposes to make accreditation mandatory for all higher educational institutes.
Prohibition of unfair practices
Prohibition of unfair practices in Technical Educational Institutions, Medical Educational Institutions and University Bill 2010 recently introduced in the Parliament, aims to curb malpractices in higher education.
Education Tribunals
The Educational Tribunals Bill, 2010 recently introduced in the Parliament, provides for a two tier system of tribunals to deal with disputes between students, teachers and institutions.
The Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010
The Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010 recently introduced in the Parliament, provides a time bound and transparent system for the approval process as also for regulation of Foreign Educational Institutions
Academic Reforms
Academic reforms at the institutional level are the necessary conditions for the improvement in Quality. Some important measures for academic reforms are:
• Phase-wise introduction of credit system
• Semester system
• Continuous evaluation
• Updating of curricula to retain its relevance
• Interdisciplinarity in developing curricula
• Competitive admissions
• Innovations in Teaching Learning Methods
• Rewards to meritorious teachers and researchers
• Teachers to upgrade qualifications and knowledge
Tuesday, February 22, 2011
ICC World Cup 2011
ICC World Cup 2011
Good times are here for India. The country will get to host the tenth world cup of its most loved sport in 2011 along with co-hosts Sri Lanka and Bangladesh. It will be the first time co-hosting for Bangladesh in a cricket world cup. Fourteen national teams are scheduled to compete for the coveted cup between February and early April 2011. According to the announced fixtures of ICC World Cup 2011, the first match will be played among co-hosts India and Sri Lanka at Sher-e-Bangla National Stadium in Mirpur.
The formerly announced time-table of 2011 world cup also included Pakistan as a co-hosting nation but the 2009 attack on Sri Lankan cricket team at Lahore which left seven players injured, forced the world cup governing body (ICC) to strip off Pakistan of its co-hosting rights on Apr 17, 2009. India will now host 29 of the total 49 planned matches including the all important grand final at Wankhede stadium in Mumbai and one semi-final as well. Sri Lanka will host 12 matches while the first time nation Bangladesh has been given the opportunity to host the tournament opener along with eight other matches. Since India has been allotted the highest number of matches, the ICC has moved its headquarters to Mumbai to ensure smooth and timely preparations for the event. Mr. Ratnakar Shetty has been appointed as the managing director of the event, while the security directorate will be headed by Mr. Shashank Manohar of BCCI.
The allocation of world cup venues is always a much sought after event with major cricketing nations bidding for hosting rights. To avoid favoritism, the ICC prefers to rotate venues between major cricket playing nations. In the bidding for the 2011 event, Australia/New Zealand had an upper hand over the trio of India, Sri Lanka and Bangladesh as they had not had a chance to host the World cup since 1992. But Indias argument that the trio being a bigger group of countries helped clinch the final deal. The 2015 cricket world cup will be held in Australia/New Zealand.
Cricket world cup organized every four years is the fourth largest and one of the most eagerly awaited and viewed event of the cricket world. It is widely considered to be the pinnacle of achievement in this sport. The excitement among fans is already palpable as the first phase of tickets was put for sale in Mumbai on 1 June 2010. Priced affordably at around 20 US cents, the organizing committee is expecting to reap in bumper sales and not diminish the euphoria of fans. The new revised format of the world cup wherein 14 teams instead of 16 will be participating also ensures that fans get to see their favorite teams play a minimum of six matches even if they are ruled out of the tournament due to early defeats.
Cricket fan or not- there is no way you can escape the all-engulfing madness. From cricket merchandise at stores to travel packages to host nations and restaurants and cafes serving cricket-themed food, the fever is all over. Personal relationships too are not unaffected by the craze. While the love for cricket unites some, it also spells doom for many relationships. There is simply no running away, so prepare to drown yourself in the drone of cricket slogans in the year to come.
So, Get the latest ICC World Cup 2011 Schedule to be played in 2011. The world cup 2011 schedule will begin on Feb 19, 2011. Cricket World Cup 2011 schedule will have 14 teams, out of which 10 would be of test rank status
Monday, February 21, 2011
The Aviation Sector in India
Circa 2008 and 2009:
The aviation sector in India, under attack from a recession-induced demand crawl and major capacity oversupply, was on its knees. The humungous leverage of the big boys in the game turned the knives in the wounds, and the sector as a whole made huge losses. The survival strategies in an acutely price sensitive environment included aggressive cost-cutting and a forced embrace of the low-fare model by the full-service carriers.
Cut to 2010:
The thaw in the economy gave way to a significant revival in air traffic demand in 2010 (up around 20 per cent over the previous year). Add calibrated supply increases to the concoction and load factors for the beleaguered industry perked up.
Airlines started digging themselves out of the hole, posting profits (however minor) or, at least, paring losses. Debt restructuring processes were put on the fast track, with the Government lending a helpful nod. The bourses took notice and the listed players (Jet, Kingfisher and SpiceJet), earlier subject to heavy punishment, saw their stock go up between 40 and 50 per cent in the latter half of the year.
With demand reaching record levels in the latest December quarter, the airlines tried to make the most of their pricing power, only to find that the free market is not so free after all. Agitated consumers and an alarmed Government forced the airlines to back off (at least a wee bit).
In other interesting side-shows, a new owner took charge at SpiceJet. Also, in perhaps a sign of things to come, ‘the old gave way to the new' with the other low-cost major, Indigo, moving up the pecking order as far as market share is concerned. It dislodged national carrier Air India from bronze position last November. Ambitions also soared beyond the domestic skies with eligible low-cost carriers going or poised to go international.
Crystal ball 2011
The drivers that propelled the sector in 2010 seem set to continue in 2011. Demand is expected to grow strongly (at least in the mid-teens), supply should be lower than demand (with significant additions expected only from the low-cost players) and balance-sheet repair, which is underway, should ease some pressure off the FSCs. The planned push into the smaller towns and cities should also create new and promising demand pockets. Yet, the sector still has a considerable distance to traverse before it moves into the safe zone.
The overall debt level remains precarious (in excess of Rs 60,000 crore). This, even as accumulated losses over previous years has shrunk the equity base of most players and eroded the net worth of two of the three full-service carriers.
While the much-needed restructuring and planned equity infusions are a good first step, it will take quite some time for Air India and Kingfisher Airlines to shrug off the debt albatross and show profitability at the net level. Also, while Jet has been turning in profits for some quarters now, its debt burden remains huge, and a thinning of flab is a must if the full potential of the improved demand-supply dynamics needs to be realised by the airline at the net level.
The low-cost carriers with limited leverage, better operating metrics and aggressive expansion plans, seem to be in a better position to capitalise on the opportunities being thrown up by a growing economy.
Not surprisingly, unlisted players in this category, such as Indigo and GoAir, are reported to be planning to go public in 2011.
Despite an improvement in the fundamentals and sentiment over the past year, the sector still faces headwinds. The immediate among these are escalating costs due to crude oil prices riding up in the past few months.
Also, increased Government directives and activism may put a cap on top-line and bottom-line growth. Besides, the sector needs to keep a close watch on aggressive capacity expansion plans which, if uncontrolled, could lead to an undesirable encore. From a valuation perspective, the three listed stocks in the space currently look fairly priced or even a tad expensive. SpiceJet and Jet Airways are trading at an EV/EBITDA multiple of more than 10 times, while for Kingfisher, the multiple is much higher at around 25.
Of the lot, SpiceJet seems to be the best-positioned. However, the sharp run-up in its price coupled with the substantial equity dilution after the entry of the new promoter may limit per share earnings and market upside from current levels. Also, increasing competitive pressure in the low-cost space warrants caution.
Besides, the new public issues could set revised valuation benchmarks for the incumbents.
The aviation sector in India, under attack from a recession-induced demand crawl and major capacity oversupply, was on its knees. The humungous leverage of the big boys in the game turned the knives in the wounds, and the sector as a whole made huge losses. The survival strategies in an acutely price sensitive environment included aggressive cost-cutting and a forced embrace of the low-fare model by the full-service carriers.
Cut to 2010:
The thaw in the economy gave way to a significant revival in air traffic demand in 2010 (up around 20 per cent over the previous year). Add calibrated supply increases to the concoction and load factors for the beleaguered industry perked up.
Airlines started digging themselves out of the hole, posting profits (however minor) or, at least, paring losses. Debt restructuring processes were put on the fast track, with the Government lending a helpful nod. The bourses took notice and the listed players (Jet, Kingfisher and SpiceJet), earlier subject to heavy punishment, saw their stock go up between 40 and 50 per cent in the latter half of the year.
With demand reaching record levels in the latest December quarter, the airlines tried to make the most of their pricing power, only to find that the free market is not so free after all. Agitated consumers and an alarmed Government forced the airlines to back off (at least a wee bit).
In other interesting side-shows, a new owner took charge at SpiceJet. Also, in perhaps a sign of things to come, ‘the old gave way to the new' with the other low-cost major, Indigo, moving up the pecking order as far as market share is concerned. It dislodged national carrier Air India from bronze position last November. Ambitions also soared beyond the domestic skies with eligible low-cost carriers going or poised to go international.
Crystal ball 2011
The drivers that propelled the sector in 2010 seem set to continue in 2011. Demand is expected to grow strongly (at least in the mid-teens), supply should be lower than demand (with significant additions expected only from the low-cost players) and balance-sheet repair, which is underway, should ease some pressure off the FSCs. The planned push into the smaller towns and cities should also create new and promising demand pockets. Yet, the sector still has a considerable distance to traverse before it moves into the safe zone.
The overall debt level remains precarious (in excess of Rs 60,000 crore). This, even as accumulated losses over previous years has shrunk the equity base of most players and eroded the net worth of two of the three full-service carriers.
While the much-needed restructuring and planned equity infusions are a good first step, it will take quite some time for Air India and Kingfisher Airlines to shrug off the debt albatross and show profitability at the net level. Also, while Jet has been turning in profits for some quarters now, its debt burden remains huge, and a thinning of flab is a must if the full potential of the improved demand-supply dynamics needs to be realised by the airline at the net level.
The low-cost carriers with limited leverage, better operating metrics and aggressive expansion plans, seem to be in a better position to capitalise on the opportunities being thrown up by a growing economy.
Not surprisingly, unlisted players in this category, such as Indigo and GoAir, are reported to be planning to go public in 2011.
Despite an improvement in the fundamentals and sentiment over the past year, the sector still faces headwinds. The immediate among these are escalating costs due to crude oil prices riding up in the past few months.
Also, increased Government directives and activism may put a cap on top-line and bottom-line growth. Besides, the sector needs to keep a close watch on aggressive capacity expansion plans which, if uncontrolled, could lead to an undesirable encore. From a valuation perspective, the three listed stocks in the space currently look fairly priced or even a tad expensive. SpiceJet and Jet Airways are trading at an EV/EBITDA multiple of more than 10 times, while for Kingfisher, the multiple is much higher at around 25.
Of the lot, SpiceJet seems to be the best-positioned. However, the sharp run-up in its price coupled with the substantial equity dilution after the entry of the new promoter may limit per share earnings and market upside from current levels. Also, increasing competitive pressure in the low-cost space warrants caution.
Besides, the new public issues could set revised valuation benchmarks for the incumbents.
Direct Tax Code (DTC)
Did the Finance Minister Pranab Mukherjee put more money into your wallet during his previous budget ?
Not much was expected considering that the Direct Tax Code (DTC) was to be implemented from April 1, 2011, yet the Minister came out with certain sops for the salary taxpayer.
While individuals would continue to be tax-exempt on incomes up to Rs 1.6 lakh, the Budget had proposed the 10% rate on a slab extending up to Rs 5 lakh, as against the current Rs 3 lakh.
Likewise, the 20% rate applied on income slabs beyond Rs 5 lakh and up to Rs 8 lakh, compared with the earlier Rs 3 lakh to Rs 5 lakh range. The maximum marginal rate of 30% was charged only on an income slab of above Rs 8 lakh, whereas this limit was at Rs 5 lakh earlier.
In an interview with CNBC-TV18, Subhash Lakhotia, Tax Guru; Sanjay Sinha, CEO of L&T Mutual Fund and Kamesh Goyal, Country Head of Bajaj Allianz Life Insurance evaluate the Union Budget and its impact on your wallet.
Below is the edited transcript of Subhash Lakhotia, Kamesh Goyal and Sanjay Sinha’s exclusive interview on CNBC-TV18. Also watch the video.
Q: Upto Rs 50,000 seems to be the benefit—more so for people who are earning above Rs 5 lakh—Rs 5 to 8 lakh and of course above Rs 8 lakh as well gets the Rs 50,000 benefit. But under Rs 5 lakh earners seem to be getting a lesser benefit?
Lakhotia: Yes, the individuals having income upto Rs 50,000 to Rs 5 lakh will save Rs 20,000 and individuals having income of Rs 8 or 10 lakh they will save nearly Rs 50,000 income tax saving. But the worst part is the common man having income Rs 25,000 per month—his saving is a big zero. Not a single rupee saving inspite of the fact we are having big rise in inflation and other things in the country—it’s still the poor man or the common man with income of Rs 25,000 per month—no income tax saving at all because the initial exemption limit has not been changed—that’s the big problem.
Q: When we were talking ahead of the Budget, you had asked for an increase in the exemption limit under 80 C. The FM has left that totally untouched.
Lakhotia: No changes made in 80 C—Rs 1 lakh continues and this Rs 20,000, which has been made is a separate section 80 CCF. That is also only in the case of infrastructure bonds. My emotions are taken away. If he would have increased from Rs 1 lakh to 2 lakh—it would have been best one but this Rs 20,000 forced to make the investment in infrastructure bonds only.
Q: Maybe somewhere the Minister had the Direct Tax Code in mind. The Direct Tax Code does talk of an exemption increase to Rs 3 lakh for instance—the draft one. The FM hasn’t moved anywhere closer to that although on the basic exemption, the FM has tried to move in that direction—very small steps compared to what the Direct Tax Code proposes—but he has tried to move.
Lakhotia: Not in the basic exemption, but in the slab rate, FM has moved and that’s pretty good. It gives a chance that yes we can expect in the DTC the tax regime of Rs 10 lakh income and 10% tax only because this time the tax slabs have been changed. They are pretty good and very ideal one for the individuals having Rs 10 lakh or so. They are going to be happy. They will be able to fight the inflation as they are facing today.
Q: Did you expect even this much from him? Were you surprised?
Lakhotia: Not surprised at all because what I expected was for the common man initial exemption limit of Rs 30,000 coupled with standard deduction for salaried employed. Salaried employed the standard deduction is completely missing in this Budget.
Q: When we were talking before the Budget, you were hopeful that while the DTC does hang on our head from next year and that might not allow the Minister to tinker around too much—are you disappointed that from an investment category point there hasn’t been an expansion of the 80 C window at all?
Sinha: Yes one would have expected because as we were discussing that the tax slabs have been tweaked and this tweaking has been to make it come a bit closer to what the DTC proposes to do. One would have expected that the same philosophy would have extended to the tax benefits that you have under the exempt-exempt and then tax category that the DTC proposes. So on that count one is little disappointed.
But if you look at the larger picture, the fact that there is larger disposable income in the hands of people who are probably in the upper income bracket, there could be a possibility of that larger income now getting directed to savings if it’s not getting consumed.
Not much was expected considering that the Direct Tax Code (DTC) was to be implemented from April 1, 2011, yet the Minister came out with certain sops for the salary taxpayer.
While individuals would continue to be tax-exempt on incomes up to Rs 1.6 lakh, the Budget had proposed the 10% rate on a slab extending up to Rs 5 lakh, as against the current Rs 3 lakh.
Likewise, the 20% rate applied on income slabs beyond Rs 5 lakh and up to Rs 8 lakh, compared with the earlier Rs 3 lakh to Rs 5 lakh range. The maximum marginal rate of 30% was charged only on an income slab of above Rs 8 lakh, whereas this limit was at Rs 5 lakh earlier.
In an interview with CNBC-TV18, Subhash Lakhotia, Tax Guru; Sanjay Sinha, CEO of L&T Mutual Fund and Kamesh Goyal, Country Head of Bajaj Allianz Life Insurance evaluate the Union Budget and its impact on your wallet.
Below is the edited transcript of Subhash Lakhotia, Kamesh Goyal and Sanjay Sinha’s exclusive interview on CNBC-TV18. Also watch the video.
Q: Upto Rs 50,000 seems to be the benefit—more so for people who are earning above Rs 5 lakh—Rs 5 to 8 lakh and of course above Rs 8 lakh as well gets the Rs 50,000 benefit. But under Rs 5 lakh earners seem to be getting a lesser benefit?
Lakhotia: Yes, the individuals having income upto Rs 50,000 to Rs 5 lakh will save Rs 20,000 and individuals having income of Rs 8 or 10 lakh they will save nearly Rs 50,000 income tax saving. But the worst part is the common man having income Rs 25,000 per month—his saving is a big zero. Not a single rupee saving inspite of the fact we are having big rise in inflation and other things in the country—it’s still the poor man or the common man with income of Rs 25,000 per month—no income tax saving at all because the initial exemption limit has not been changed—that’s the big problem.
Q: When we were talking ahead of the Budget, you had asked for an increase in the exemption limit under 80 C. The FM has left that totally untouched.
Lakhotia: No changes made in 80 C—Rs 1 lakh continues and this Rs 20,000, which has been made is a separate section 80 CCF. That is also only in the case of infrastructure bonds. My emotions are taken away. If he would have increased from Rs 1 lakh to 2 lakh—it would have been best one but this Rs 20,000 forced to make the investment in infrastructure bonds only.
Q: Maybe somewhere the Minister had the Direct Tax Code in mind. The Direct Tax Code does talk of an exemption increase to Rs 3 lakh for instance—the draft one. The FM hasn’t moved anywhere closer to that although on the basic exemption, the FM has tried to move in that direction—very small steps compared to what the Direct Tax Code proposes—but he has tried to move.
Lakhotia: Not in the basic exemption, but in the slab rate, FM has moved and that’s pretty good. It gives a chance that yes we can expect in the DTC the tax regime of Rs 10 lakh income and 10% tax only because this time the tax slabs have been changed. They are pretty good and very ideal one for the individuals having Rs 10 lakh or so. They are going to be happy. They will be able to fight the inflation as they are facing today.
Q: Did you expect even this much from him? Were you surprised?
Lakhotia: Not surprised at all because what I expected was for the common man initial exemption limit of Rs 30,000 coupled with standard deduction for salaried employed. Salaried employed the standard deduction is completely missing in this Budget.
Q: When we were talking before the Budget, you were hopeful that while the DTC does hang on our head from next year and that might not allow the Minister to tinker around too much—are you disappointed that from an investment category point there hasn’t been an expansion of the 80 C window at all?
Sinha: Yes one would have expected because as we were discussing that the tax slabs have been tweaked and this tweaking has been to make it come a bit closer to what the DTC proposes to do. One would have expected that the same philosophy would have extended to the tax benefits that you have under the exempt-exempt and then tax category that the DTC proposes. So on that count one is little disappointed.
But if you look at the larger picture, the fact that there is larger disposable income in the hands of people who are probably in the upper income bracket, there could be a possibility of that larger income now getting directed to savings if it’s not getting consumed.
Sunday, February 20, 2011
WORLD FESTIVAL OF YOUTH & STUDENTS
The delegates to the 17th Festival of Student and Youth, gathered from 126 countries, more than 15000 in numbers, have met under the theme “Let’s Defeat Imperialism for a World of Peace, Solidarity and Social Transformation” on the shore of the majestic, dynamic and vibrant South Africa. Here we have fought for decades, side by side, from all walks of life to bring down the tyranny of the Apartheid system, fostered to increase the hold of Imperialism on our people. We fought with the people of South Africa and today we meet here to further our struggle against all injustices and discriminations.
We meet in South Africa on the eve of the Centenary of the Liberation movement the ANC, in 2012. We do this to take stock with our comrades on how far they have come in building a non –racial, non –sexist, democratic and prosperous Society, fighting with every fiber in their beings to defeat imperialism in all its forms. We have come to celebrate the hosting of the festival in South Africa, aware of the magnificent role played by its movement to bring about democracy to South Africa, aware that the ANC YL was amongst the founding members of the Festival movement and the 1st African President of WFDY. We have come here to pay tribute to the contribution of Andile Yawa and all the festival veterans for giving to us a tool for Solidarity, brotherhood and an agent for change through the festival movement. We have dedicated this festival to the struggle and legacy of 2 heroes, who have made it possible for us to speak about Solidarity and World Peace: Commander Fidel Castro and Madiba Nelson Mandela. We thank them for their tireless spirits.
63 years after the beginning of the WFYS’ Movement was initiated in Prague, we highlight the important role that the Socialist camp has played in the support of this top event of the anti-imperialist youth. The location of the WFYS itself is a statement of solidarity with the struggle of its people. The WFYS is an expression of the struggle against imperialism and the struggle against the exploitation of man by man. Of particular importance is the contribution of Socialist Cuba, not only because it has hosted the festival twice, but also because by doing so in 1997 it helped the Festival movement to be re-launched despite the difficulties of the international anti-imperialist and working class’ movements in the 1990’s. We congratulate WFDY on its 65th anniversary for its contribution to the struggle for peace, justice and the Festival movement, in this year that we celebrate also the 65 years of the peoples’ victory against Nazi Fascism.
As the anti-imperialist movement of the youth and of the people developed its struggle, the imperialists also seek to consolidate their forces and to fortify their structures. They use all mechanisms in their hands such as NATO, AFRICOM, EU, IMF, WB, WTO and all ways of intervention such as blockades, sanctions, embargos, conflicts, military intervention, wars and occupations against sovereign states and progressive movements. The new strategic concept “NATO 2020”, decided in Lisbon earlier this year incorporates all the changes made in its structure of the previous years (12 new member-states, utilization of the “Partnership for Peace” in its plans), changes its position towards contesting imperialist forces like Russia, signing agreements with them; it reinforces the cooperation with EU, proving it as an imperialist organism for the creation and education of military corps, acting against “extremism” inside and outside of the member’s borders, targeting firstly all those struggling to defend the rights of the peoples and the youth against imperialism. Under these circumstances, the attack against anti-imperialist forces is intensified, with particular expression in anti-communist measures.
The crisis of the capitalist system is inherent to the deepening of its inner contradictions, unveiling its historical incapacity to achieve progress for mankind. This crisis provides the ground for emerging imperialist forces that in the past have either clashed with the USA or EU, or have been their allies, to use the different timing in the manifestation of the crisis to increase their influence in the imperialist pyramid, to hold a bigger piece in the capitalist struggle for markets and exploitation. It is not a result of the administration models of the economy or the corruption of the system; it is now expressed all around the capitalist world in both neoliberal and social-democrat led countries. We are in a phase of deepening of the crisis; the recuperation in the following years will be minuscule: the rights of the youth will continue to be attacked at social, economical and cultural level every day. It demonstrates the historical limits and the failure of the capitalist system to answer to the peoples’ needs and aspirations; it highlights the need for the creation of a society and a mode of development that will strive to fulfill the youth’s and the peoples’ needs and rights.
The youth generations’ human rights and liberties are violated categorically in every corner of the planet. The “capitalist globalization”, the system of exploitation and control of the people and resources is pushing masses of young people into the margins of society. They are the first victims of the social inequalities at all levels. The 212 million of people unemployed, in a world that precarious, temporary occupation is the rule, are a proof of this. Only between 2007 and 2009 increased 34 million. Due to the economic crisis, even more jobs were lost, condemning more people to misery and poverty. We struggle against the elimination of the majority of labor rights, especially those of young workers who suffer more the effects of unemployment. An entire generation of young people is being transformed in a generation without rights.
We highlight the role of young women in the struggle for their emancipation as part of the general struggle against imperialism. Women, who are even more strongly attacked by the imperialist policies, deserve our appreciation and full support to end all abuses and discriminations existing in our world as part of our combat to defeat imperialism.
The “external debts and deficits” that have become a reality for many countries are results of the policies followed by the capitalist forces in all countries independently of their position in the correlation of forces. They reflect the unequal development and the division of work in the capitalist system. They are utilized so that the dominant class in both loaner and loaning countries becomes more potent while the people suffer from the load of the crisis on their backs. In the international imperialist system there is no place for equal and respectful relationships between the states and the peoples, it is another proof of the need for revolutionary social transformation of the system that bears inequality and misery.
The imperialist profit drive and unbridled exploitation of the planet’s natural resources follows the logic of destruction and is the main threat to the environment and to the future of the planet. The environmental issue is taking on an alarming dimension due to the production of Genetically Modified (GM) organisms, which are jeopardizing humankind’s future. Water all around the globe is being more and more a target to the exploitative nature of capitalism and is being used as a strategic and political weapon by imperialism. Imperialism’s strategy is to pass the responsibilities for the environmental problems onto the people, individualizing what are presented as solutions in order to increase even further the big companies’ profits through the so called “green” products.
Imperialist warmongering policies produce such crises as refugees, millions of people who are compelled to leave their homes, lands, jobs and families. We strongly condemn the imperialist economic policies, interventions and occupations that have produced millions of immigrants, we uptake the struggle in the defense of the rights of the immigrants in work, education, social services. No human being can be illegal.
Imperialist policies attack the full development of education and of the young people, preventing them from accessing a free and quality education that is a school of freedom and commitment with peace. We defend and struggle for education as a public and social good, a universal human right, which gratuity must be ensured by the state. We reject the intentions of privatization that several public institutions of different levels are being victims of. We demand the withdrawal of education from the agreements of the WTO – education is not commodity!
The increase in use of drugs in young people is a dangerous phenomenon that proves the decay of the capitalist system. Millions of young people live with AIDS, mostly in Africa and Asia. The big pharmaceutical trusts monopolize the production and distribution of needed medicine are profiting from pandemics instead of providing the means of treatment. Children are being abused and forced into military operations, prostitution, and drug trafficking; the number of street children is increasing.
Despite this offense the progressive and peace loving forces have been resisting, conquering important victories and growing stronger. The struggle for peace has been very important along the years and with these recent actions we try to raise the consciousness of the youth masses and focus the struggle against the enemy of peace, imperialism. The fight at national level plays a central role in the fight against the specific measures affecting the youth. We highlight the importance of the victories achieved by the struggles of the students, workers, peasants, indigenous and women’s movements in times as these. We underline the importance of several electoral victories and other positive results of progressive parties and coalitions
Africa, many years after the attainment of political independence still remains a political and economic playground for America and its allies. HIV/AIDS still remains a life threatening challenge promising to wipe out the entire African race, alongside Malaria and other imperialist manufactured diseases. A child dies every three seconds from AIDS and extreme poverty. We condemn the unjust sanctions against Eritrea and call for the bilateral solving of the conflict with Ethiopia without any external intervention. The growing US presence in Africa through AFRICOM, used as its military expansionist project in Africa, has allowed the Americans to pose serious military threats to African countries. We denounce the setting up of military bases in the name of AFRICOM and demand Botswana to immediately remove them as they pose a perpetual security threat to SADC countries and we support that people’s struggle to achieve democracy. We condemn the deliberate funding of civil society and opposition parties in Africa by the West to bring about regime change agenda’s guised in the name of ‘development”. We further condemn the ICC for its apparent onslaught of African leaders as well as all the media campaigns promoted by imperialism to destabilize the region. We stand in solidarity with the people and youth of Swaziland and demand the release of all political prisoners. We strongly condemn the continued military occupation of Western Sahara by the Kingdom of Morocco and request the respect of the Saharawi people right to self-determination and independence. The Moroccan government should immediately put an end to the blockade of the occupied territories of Western Sahara and allow entry into the territory to international observers and independent media. We denounce and condemn all forms of human rights violations including persecutions, arbitrary detentions, disappearances and irregular trials etc.., committed by the Moroccan authorities against the Saharawi civilians and demand the release of all political detainees and the disband of the wall dividing the territory. We further make a clarion call for the immediate lifting of economic sanctions on Zimbabwe that have continued to cause untold pain and suffering on their people which are also a catalyst for their regime change agenda in Zimbabwe. We are in solidarity with the revolutionaries in Africa, and urge them be steadfast against imperial tendencies. We welcome the second phase of the African people’s struggle, the struggle for economic independence through indigenization, nationalization or any other form of empowerment to its people. We congratulate the people of Angola for the reconstruction process that is being implemented in the country. We empathize with West African countries in crises, coups and political instability, caused by imperial infiltration, and call for an urgent resolution and retention of political stability. We call for the stop of the violations of human rights in Sudan, especially in Darfur and we call for peace in the country, as well as freedom for labor organizations. Despite that, we condemn any sort of imperialist intervention against Sudan. The crisis in Cote d’Ivoire, Niger and Guinea, and the problems in Nigeria are instructive in the assessment of the current political landscape in West Africa. We also condemn the involvement of imperialist allies in the assassinations of heads of state in Burkina Faso, among others. Also, pressures from Europe and the US has forced the signing of exploitive contracts on mineral resources (as also happens in Western Sahara by the EU), as this has ruined and impoverished most countries, denying them the ability of local investment and causing a runaway youth, in search of better living conditions resulting in massive loss of life during the emigration.
The Asia-Pacific region has remained one of the explosive areas in the world, a springboard of military provocation and armed conflicts as well as of arms build-up and interference that have seriously threatened peace and security in Asia and the world. The present developments in this region have proved that the US and the NATO having more common imperialist strategies for Asia-Pacific Region. They are pursuing to establish new political-military groupings in order to extend the sphere of military activities covering the whole area of Asia and the Pacific. The growing US military presence in the Indian Ocean and the Pacific, the US-Israeli strategic alliance, and the growing military cooperation with reactionary regimes in the Gulf poses a serious threat to peace, stability and security in the region. In South Asia, imperialist intervention has deepened, particularly due to US intervention in Afghanistan and Pakistan. The so called Af-Pak strategy of the US to pursue its utterly selfish interests has only resulted in serious political instabilities in the region, not to mention the brutal killings and loss of lives and property faced by the common people of people of South Asia due to the blatant aggression of US imperialism. We express our support for the people and youth of Iran in their struggle against the repressive, anti-communist and undemocratic regime, which should be overcome by the people without any sort of imperialist intervention, which is for us unacceptable. We denounce the huge US military presence in the Korean Peninsula and demand that the Armistice Agreement of 1953 should be replaced with a comprehensive peace agreement. We call upon the young people of the world to join the international solidarity campaign in support with Korean people and youth in their just cause for the national reunification under the banner of the June 15 North-South Joint Declaration, and for building a prosperous, powerful and socialist country. We condemn the deployment of US troops in Philippines and its role fighting the national revolutionary forces. We stand in solidarity with the struggles of the young people of Bangladesh. We express our solidarity towards the people and youth of Nepal in their struggle for a new federal democratic republic. We demand the return of all Bhutanese refuges to their country with respect and dignity. We support the struggle of the Burmese people for the restoration of democracy and for the release of all political prisoners as we welcome the release of Aung San Suu Kyi. We express support for Sri Lanka’s progressive movement’s struggle for national unity. We salute the Vietnamese youth and people in their struggle for national independence and socialism, at a time when the 65th anniversary of the birth of the Democratic Republic of Vietnam (now Socialist Republic of Vietnam) is celebrated, and we express our solidarity towards the Vietnamese victims of the US’ Agent Orange / Dioxin in their struggle for justice.
In Latin America and the Caribbean the progressive forces have given important steps in the struggle against the interests of imperialism and its free trade policies. These steps are expressed in the integration mechanisms in the region as the ALBA-TCP, UNASUR, MERCOSUR and the future creation of the Community of Latin American and Caribbean States; it is our goal an equitative distribution of the resources of the continent with fiscal measures over the big monopolies, which allow us to recover from more than 500 years of exploitation and underdevelopment. We denounce the imperialist policies of interventions of USA through the deployment of military bases and missions in the region, as happens in Panama, Colombia and Haiti and the reactivation of the 4ht Fleet, which goal is to reinforce the attack against the Citizen Revolution in Ecuador, the Plurinational Revolution in Bolivia, the Sandinista Revolution in Nicaragua and particularly the Bolivarian Revolution in Venezuela, since they represent a historical and revolutionary alternative to the capitalist system. We further denounce other mecanisms of interference as terrorism and drug dealing because they have a direct impact on peoples like the Mexican. We stand in solidarity with the Colombian people, victim of constant political murderers imposed by imperialists, as we also express our rejection of the usage of the canal of Panama for interventional geoestrategic, with the transit of war and nuclear armament. We support the struggle of the people of Puerto Rico for its full self determination and we are in solidarity with the harsh situation of Haiti, victim of colonialism. We strongly condemn the coup d’etats that took place in Honduras and Ecuador, aiming at the desestabilization of the progressive processes in the region and we recognize the role played by the members of WFDY in both countries resisting and struggling. We demand justice for the assassination of comrade Edwin Perez, Secretary General of the Communist Youth of Ecuador, and we condemn the unfair persecution that has been targetting the people of Mapuchi in Chile. We express our solidarity towards the struggles of the young people of the Caribbean. We express our solidarity with the struggles of the aboriginal and first people’s for full self determination. We know the youth of Canada and USA stand in friendship with the peoples of the world, not war and imperialism that their Governments promote. We condemn the unfair economical, financial and commercial blockade imposed against the Cuban people for more than 50 years in what is a clear violation of the International Law as well as we demand from the USA government the immediate release of the five Cuban unjustly imprisoned in their jails for more than 12 years.
The last years have confirmed the European Union as an imperialist tool that supports and promotes measures of exploitation of the peoples and youth, intervening both outside and in its member states, many times under the alleged defense of the “human rights” that itself fails to respect. The recent “austerity measures” that the National Governments have agreed upon with the EU to be implemented, with the pretext of the capitalist crisis, demanding sacrifices by the workers while the monopolies (banks and big corporations) are receiving billions to ensure their profits, as well as the measures imposed by the governments to the peoples are proof of our analysis. However the peoples’ resistance has had big expression in Britain, France, Germany, Greece, Ireland, Portugal and Spain, with young workers playing an important role. In Education, there’s been a general trend of imposing class barriers and privatizing throughout all Europe, with particularly strong expression in the “Bologna Process” and its implementation in each country. Important struggles at Higher and Secondary Education level have been taking place in most of the countries to resist the general offense against the right to education. Side by side with the attack at social level, the attacks against the democratic rights, in general, and anti-communism, in particular, have been increasing rapidly, with a growing persecution of communist parties and youth organizations in many European countries, with particular expression in Eastern Europe with cases as the ones happened in Czech Republic, Hungary, Poland, Latvia, Lithuania and Estonia with the ban (or attempt) of communist organizations and the rise and promotion of neo fascist forces. As background to the crisis, the xenophobic measures guided by the “European fortress” doctrine of the EU have been promoting the persecution of immigrants as justification to the social problems that arise from the profit-only orientated policies of the national governments, in a process with big implications in countries as France, Germany and Italy. We stand against the change of borders continuing in the Balkans with the so called “independence” of Kosovo, which became a huge military base for NATO and USA. We further express our solidarity with the people and youth of Cyprus, Greek and Turkish Cypriot, against the Turkish occupation, highlighting the big efforts made since the election of Dimitris Christophias as President of the Republic and our commitment to the bicommunal bizonal federation with one citizenship, one international identity and one sovereignty as the fair solution for the end of the occupation.
We express our solidarity with the students and youth of Palestine, Iraq and Arab countries’ resistance and support the persistence of Palestine in the resistance against the blockade and oppression. We denounce the racist inhumane practices of the Zionist Israel, with the policies of killing, expelling and settlements in Palestine, especially in Jerusalem, and in various occupied Arab Lands. We also demand an end to the Israeli occupation, removal of settlements and the wall of apartheid and we support the establishment of an independent Palestinian state with East Jerusalem as its capital, according to UN resolutions, requesting the UN and the countries of the world to recognize the Palestinian state immediately. We denounce the war and blockade against Gaza and demand its breakdown and that the Zionist war criminals are persecuted; we also request to re-instate the UN resolution that equalizes Zionism with racism. We call for the immediate release of all Palestinian and Arab prisoners detained in Israeli and US prisons. We denounce the occupation of Iraq and support the right of the Iraqi people for resistance and demand the immediate withdrawal of the occupation forces out of it. We support the sovereignty, security, stability and unity of Iraq. We denounce the terrorism in all of its forms as well as the US secret military operations in the region. We express our solidarity towards Syria against the Israeli occupation of the Syrian Golan and denounce the “Syria Accountability Law” approved by the USA Congress. We also support the struggles of the Lebanese youth to complete the liberation of Sheba and Kfarshoba from the Israeli occupation and denounce the Israeli war of 2006 that lead to 1300 Lebanese victims. We denounce external interferences in the internal issues of Lebanon. We support the national dialogue of Yemen and emphasize the security and unity of Yemen. We demand the withdrawal of Spain from Cebta and Mellilla. We support the Egyptian youth and the youth of the Gulf States in their struggle to implement democratic rights, principles of justice and equality and we express solidarity with them against repressive laws and for labor rights. We also ask to treat the causes of immigration from Africa to Europe through Northern African countries. We support the struggles of the Arab youth for economic integration and demand the immediate dismantle of the Israeli nuclear arsenal.
The 17th WFYS is held during the UN International Year on Youth. As happened in 1985, once again the WFYS is, so far, the biggest youth event of this year. More importantly, the WFYS is the most relevant activity, because it most clearly raises the real problems of the youth. Unlike many other activities and the actual framework of UN Year on Youth, in this Festival the youth of the world finds the biggest stage for denouncing the problems and offenses that they suffer from imperialism and its agents.
We, the youth and students of the world gathered in this historical festival, raised our voices against all the illnesses) generated by imperialism, which is undergoing its greatest global crisis. The imperialist world order is driving humanity to the verge of a global confrontation, with the ever-present danger of a nuclear war, through its hegemonic policy that will determine the present and the future of mankind.
It is time to continue the struggle for youth development and our economic, social and cultural values and not those of a decadent system they are trying to impose on us. We shall build a future of justice, equality, peace, hope and joy for humanity. The future of a new stage of history is in our hands and it depends on the peoples, working masses and world youth and their power of transformation, to build a world of peace and solidarity, where the power and the produced wealth will belong to the peoples and the youth of the world.
We thank the people of South Africa for welcoming us to their country and celebrating with us the opportunity to see South Africa change. We commit to you that we the youth of the world will never let our guard down in pursuance of a world free of imperialism. Let us start getting ready for the 18th World Festival of Youth and Students!
We meet in South Africa on the eve of the Centenary of the Liberation movement the ANC, in 2012. We do this to take stock with our comrades on how far they have come in building a non –racial, non –sexist, democratic and prosperous Society, fighting with every fiber in their beings to defeat imperialism in all its forms. We have come to celebrate the hosting of the festival in South Africa, aware of the magnificent role played by its movement to bring about democracy to South Africa, aware that the ANC YL was amongst the founding members of the Festival movement and the 1st African President of WFDY. We have come here to pay tribute to the contribution of Andile Yawa and all the festival veterans for giving to us a tool for Solidarity, brotherhood and an agent for change through the festival movement. We have dedicated this festival to the struggle and legacy of 2 heroes, who have made it possible for us to speak about Solidarity and World Peace: Commander Fidel Castro and Madiba Nelson Mandela. We thank them for their tireless spirits.
63 years after the beginning of the WFYS’ Movement was initiated in Prague, we highlight the important role that the Socialist camp has played in the support of this top event of the anti-imperialist youth. The location of the WFYS itself is a statement of solidarity with the struggle of its people. The WFYS is an expression of the struggle against imperialism and the struggle against the exploitation of man by man. Of particular importance is the contribution of Socialist Cuba, not only because it has hosted the festival twice, but also because by doing so in 1997 it helped the Festival movement to be re-launched despite the difficulties of the international anti-imperialist and working class’ movements in the 1990’s. We congratulate WFDY on its 65th anniversary for its contribution to the struggle for peace, justice and the Festival movement, in this year that we celebrate also the 65 years of the peoples’ victory against Nazi Fascism.
As the anti-imperialist movement of the youth and of the people developed its struggle, the imperialists also seek to consolidate their forces and to fortify their structures. They use all mechanisms in their hands such as NATO, AFRICOM, EU, IMF, WB, WTO and all ways of intervention such as blockades, sanctions, embargos, conflicts, military intervention, wars and occupations against sovereign states and progressive movements. The new strategic concept “NATO 2020”, decided in Lisbon earlier this year incorporates all the changes made in its structure of the previous years (12 new member-states, utilization of the “Partnership for Peace” in its plans), changes its position towards contesting imperialist forces like Russia, signing agreements with them; it reinforces the cooperation with EU, proving it as an imperialist organism for the creation and education of military corps, acting against “extremism” inside and outside of the member’s borders, targeting firstly all those struggling to defend the rights of the peoples and the youth against imperialism. Under these circumstances, the attack against anti-imperialist forces is intensified, with particular expression in anti-communist measures.
The crisis of the capitalist system is inherent to the deepening of its inner contradictions, unveiling its historical incapacity to achieve progress for mankind. This crisis provides the ground for emerging imperialist forces that in the past have either clashed with the USA or EU, or have been their allies, to use the different timing in the manifestation of the crisis to increase their influence in the imperialist pyramid, to hold a bigger piece in the capitalist struggle for markets and exploitation. It is not a result of the administration models of the economy or the corruption of the system; it is now expressed all around the capitalist world in both neoliberal and social-democrat led countries. We are in a phase of deepening of the crisis; the recuperation in the following years will be minuscule: the rights of the youth will continue to be attacked at social, economical and cultural level every day. It demonstrates the historical limits and the failure of the capitalist system to answer to the peoples’ needs and aspirations; it highlights the need for the creation of a society and a mode of development that will strive to fulfill the youth’s and the peoples’ needs and rights.
The youth generations’ human rights and liberties are violated categorically in every corner of the planet. The “capitalist globalization”, the system of exploitation and control of the people and resources is pushing masses of young people into the margins of society. They are the first victims of the social inequalities at all levels. The 212 million of people unemployed, in a world that precarious, temporary occupation is the rule, are a proof of this. Only between 2007 and 2009 increased 34 million. Due to the economic crisis, even more jobs were lost, condemning more people to misery and poverty. We struggle against the elimination of the majority of labor rights, especially those of young workers who suffer more the effects of unemployment. An entire generation of young people is being transformed in a generation without rights.
We highlight the role of young women in the struggle for their emancipation as part of the general struggle against imperialism. Women, who are even more strongly attacked by the imperialist policies, deserve our appreciation and full support to end all abuses and discriminations existing in our world as part of our combat to defeat imperialism.
The “external debts and deficits” that have become a reality for many countries are results of the policies followed by the capitalist forces in all countries independently of their position in the correlation of forces. They reflect the unequal development and the division of work in the capitalist system. They are utilized so that the dominant class in both loaner and loaning countries becomes more potent while the people suffer from the load of the crisis on their backs. In the international imperialist system there is no place for equal and respectful relationships between the states and the peoples, it is another proof of the need for revolutionary social transformation of the system that bears inequality and misery.
The imperialist profit drive and unbridled exploitation of the planet’s natural resources follows the logic of destruction and is the main threat to the environment and to the future of the planet. The environmental issue is taking on an alarming dimension due to the production of Genetically Modified (GM) organisms, which are jeopardizing humankind’s future. Water all around the globe is being more and more a target to the exploitative nature of capitalism and is being used as a strategic and political weapon by imperialism. Imperialism’s strategy is to pass the responsibilities for the environmental problems onto the people, individualizing what are presented as solutions in order to increase even further the big companies’ profits through the so called “green” products.
Imperialist warmongering policies produce such crises as refugees, millions of people who are compelled to leave their homes, lands, jobs and families. We strongly condemn the imperialist economic policies, interventions and occupations that have produced millions of immigrants, we uptake the struggle in the defense of the rights of the immigrants in work, education, social services. No human being can be illegal.
Imperialist policies attack the full development of education and of the young people, preventing them from accessing a free and quality education that is a school of freedom and commitment with peace. We defend and struggle for education as a public and social good, a universal human right, which gratuity must be ensured by the state. We reject the intentions of privatization that several public institutions of different levels are being victims of. We demand the withdrawal of education from the agreements of the WTO – education is not commodity!
The increase in use of drugs in young people is a dangerous phenomenon that proves the decay of the capitalist system. Millions of young people live with AIDS, mostly in Africa and Asia. The big pharmaceutical trusts monopolize the production and distribution of needed medicine are profiting from pandemics instead of providing the means of treatment. Children are being abused and forced into military operations, prostitution, and drug trafficking; the number of street children is increasing.
Despite this offense the progressive and peace loving forces have been resisting, conquering important victories and growing stronger. The struggle for peace has been very important along the years and with these recent actions we try to raise the consciousness of the youth masses and focus the struggle against the enemy of peace, imperialism. The fight at national level plays a central role in the fight against the specific measures affecting the youth. We highlight the importance of the victories achieved by the struggles of the students, workers, peasants, indigenous and women’s movements in times as these. We underline the importance of several electoral victories and other positive results of progressive parties and coalitions
Africa, many years after the attainment of political independence still remains a political and economic playground for America and its allies. HIV/AIDS still remains a life threatening challenge promising to wipe out the entire African race, alongside Malaria and other imperialist manufactured diseases. A child dies every three seconds from AIDS and extreme poverty. We condemn the unjust sanctions against Eritrea and call for the bilateral solving of the conflict with Ethiopia without any external intervention. The growing US presence in Africa through AFRICOM, used as its military expansionist project in Africa, has allowed the Americans to pose serious military threats to African countries. We denounce the setting up of military bases in the name of AFRICOM and demand Botswana to immediately remove them as they pose a perpetual security threat to SADC countries and we support that people’s struggle to achieve democracy. We condemn the deliberate funding of civil society and opposition parties in Africa by the West to bring about regime change agenda’s guised in the name of ‘development”. We further condemn the ICC for its apparent onslaught of African leaders as well as all the media campaigns promoted by imperialism to destabilize the region. We stand in solidarity with the people and youth of Swaziland and demand the release of all political prisoners. We strongly condemn the continued military occupation of Western Sahara by the Kingdom of Morocco and request the respect of the Saharawi people right to self-determination and independence. The Moroccan government should immediately put an end to the blockade of the occupied territories of Western Sahara and allow entry into the territory to international observers and independent media. We denounce and condemn all forms of human rights violations including persecutions, arbitrary detentions, disappearances and irregular trials etc.., committed by the Moroccan authorities against the Saharawi civilians and demand the release of all political detainees and the disband of the wall dividing the territory. We further make a clarion call for the immediate lifting of economic sanctions on Zimbabwe that have continued to cause untold pain and suffering on their people which are also a catalyst for their regime change agenda in Zimbabwe. We are in solidarity with the revolutionaries in Africa, and urge them be steadfast against imperial tendencies. We welcome the second phase of the African people’s struggle, the struggle for economic independence through indigenization, nationalization or any other form of empowerment to its people. We congratulate the people of Angola for the reconstruction process that is being implemented in the country. We empathize with West African countries in crises, coups and political instability, caused by imperial infiltration, and call for an urgent resolution and retention of political stability. We call for the stop of the violations of human rights in Sudan, especially in Darfur and we call for peace in the country, as well as freedom for labor organizations. Despite that, we condemn any sort of imperialist intervention against Sudan. The crisis in Cote d’Ivoire, Niger and Guinea, and the problems in Nigeria are instructive in the assessment of the current political landscape in West Africa. We also condemn the involvement of imperialist allies in the assassinations of heads of state in Burkina Faso, among others. Also, pressures from Europe and the US has forced the signing of exploitive contracts on mineral resources (as also happens in Western Sahara by the EU), as this has ruined and impoverished most countries, denying them the ability of local investment and causing a runaway youth, in search of better living conditions resulting in massive loss of life during the emigration.
The Asia-Pacific region has remained one of the explosive areas in the world, a springboard of military provocation and armed conflicts as well as of arms build-up and interference that have seriously threatened peace and security in Asia and the world. The present developments in this region have proved that the US and the NATO having more common imperialist strategies for Asia-Pacific Region. They are pursuing to establish new political-military groupings in order to extend the sphere of military activities covering the whole area of Asia and the Pacific. The growing US military presence in the Indian Ocean and the Pacific, the US-Israeli strategic alliance, and the growing military cooperation with reactionary regimes in the Gulf poses a serious threat to peace, stability and security in the region. In South Asia, imperialist intervention has deepened, particularly due to US intervention in Afghanistan and Pakistan. The so called Af-Pak strategy of the US to pursue its utterly selfish interests has only resulted in serious political instabilities in the region, not to mention the brutal killings and loss of lives and property faced by the common people of people of South Asia due to the blatant aggression of US imperialism. We express our support for the people and youth of Iran in their struggle against the repressive, anti-communist and undemocratic regime, which should be overcome by the people without any sort of imperialist intervention, which is for us unacceptable. We denounce the huge US military presence in the Korean Peninsula and demand that the Armistice Agreement of 1953 should be replaced with a comprehensive peace agreement. We call upon the young people of the world to join the international solidarity campaign in support with Korean people and youth in their just cause for the national reunification under the banner of the June 15 North-South Joint Declaration, and for building a prosperous, powerful and socialist country. We condemn the deployment of US troops in Philippines and its role fighting the national revolutionary forces. We stand in solidarity with the struggles of the young people of Bangladesh. We express our solidarity towards the people and youth of Nepal in their struggle for a new federal democratic republic. We demand the return of all Bhutanese refuges to their country with respect and dignity. We support the struggle of the Burmese people for the restoration of democracy and for the release of all political prisoners as we welcome the release of Aung San Suu Kyi. We express support for Sri Lanka’s progressive movement’s struggle for national unity. We salute the Vietnamese youth and people in their struggle for national independence and socialism, at a time when the 65th anniversary of the birth of the Democratic Republic of Vietnam (now Socialist Republic of Vietnam) is celebrated, and we express our solidarity towards the Vietnamese victims of the US’ Agent Orange / Dioxin in their struggle for justice.
In Latin America and the Caribbean the progressive forces have given important steps in the struggle against the interests of imperialism and its free trade policies. These steps are expressed in the integration mechanisms in the region as the ALBA-TCP, UNASUR, MERCOSUR and the future creation of the Community of Latin American and Caribbean States; it is our goal an equitative distribution of the resources of the continent with fiscal measures over the big monopolies, which allow us to recover from more than 500 years of exploitation and underdevelopment. We denounce the imperialist policies of interventions of USA through the deployment of military bases and missions in the region, as happens in Panama, Colombia and Haiti and the reactivation of the 4ht Fleet, which goal is to reinforce the attack against the Citizen Revolution in Ecuador, the Plurinational Revolution in Bolivia, the Sandinista Revolution in Nicaragua and particularly the Bolivarian Revolution in Venezuela, since they represent a historical and revolutionary alternative to the capitalist system. We further denounce other mecanisms of interference as terrorism and drug dealing because they have a direct impact on peoples like the Mexican. We stand in solidarity with the Colombian people, victim of constant political murderers imposed by imperialists, as we also express our rejection of the usage of the canal of Panama for interventional geoestrategic, with the transit of war and nuclear armament. We support the struggle of the people of Puerto Rico for its full self determination and we are in solidarity with the harsh situation of Haiti, victim of colonialism. We strongly condemn the coup d’etats that took place in Honduras and Ecuador, aiming at the desestabilization of the progressive processes in the region and we recognize the role played by the members of WFDY in both countries resisting and struggling. We demand justice for the assassination of comrade Edwin Perez, Secretary General of the Communist Youth of Ecuador, and we condemn the unfair persecution that has been targetting the people of Mapuchi in Chile. We express our solidarity towards the struggles of the young people of the Caribbean. We express our solidarity with the struggles of the aboriginal and first people’s for full self determination. We know the youth of Canada and USA stand in friendship with the peoples of the world, not war and imperialism that their Governments promote. We condemn the unfair economical, financial and commercial blockade imposed against the Cuban people for more than 50 years in what is a clear violation of the International Law as well as we demand from the USA government the immediate release of the five Cuban unjustly imprisoned in their jails for more than 12 years.
The last years have confirmed the European Union as an imperialist tool that supports and promotes measures of exploitation of the peoples and youth, intervening both outside and in its member states, many times under the alleged defense of the “human rights” that itself fails to respect. The recent “austerity measures” that the National Governments have agreed upon with the EU to be implemented, with the pretext of the capitalist crisis, demanding sacrifices by the workers while the monopolies (banks and big corporations) are receiving billions to ensure their profits, as well as the measures imposed by the governments to the peoples are proof of our analysis. However the peoples’ resistance has had big expression in Britain, France, Germany, Greece, Ireland, Portugal and Spain, with young workers playing an important role. In Education, there’s been a general trend of imposing class barriers and privatizing throughout all Europe, with particularly strong expression in the “Bologna Process” and its implementation in each country. Important struggles at Higher and Secondary Education level have been taking place in most of the countries to resist the general offense against the right to education. Side by side with the attack at social level, the attacks against the democratic rights, in general, and anti-communism, in particular, have been increasing rapidly, with a growing persecution of communist parties and youth organizations in many European countries, with particular expression in Eastern Europe with cases as the ones happened in Czech Republic, Hungary, Poland, Latvia, Lithuania and Estonia with the ban (or attempt) of communist organizations and the rise and promotion of neo fascist forces. As background to the crisis, the xenophobic measures guided by the “European fortress” doctrine of the EU have been promoting the persecution of immigrants as justification to the social problems that arise from the profit-only orientated policies of the national governments, in a process with big implications in countries as France, Germany and Italy. We stand against the change of borders continuing in the Balkans with the so called “independence” of Kosovo, which became a huge military base for NATO and USA. We further express our solidarity with the people and youth of Cyprus, Greek and Turkish Cypriot, against the Turkish occupation, highlighting the big efforts made since the election of Dimitris Christophias as President of the Republic and our commitment to the bicommunal bizonal federation with one citizenship, one international identity and one sovereignty as the fair solution for the end of the occupation.
We express our solidarity with the students and youth of Palestine, Iraq and Arab countries’ resistance and support the persistence of Palestine in the resistance against the blockade and oppression. We denounce the racist inhumane practices of the Zionist Israel, with the policies of killing, expelling and settlements in Palestine, especially in Jerusalem, and in various occupied Arab Lands. We also demand an end to the Israeli occupation, removal of settlements and the wall of apartheid and we support the establishment of an independent Palestinian state with East Jerusalem as its capital, according to UN resolutions, requesting the UN and the countries of the world to recognize the Palestinian state immediately. We denounce the war and blockade against Gaza and demand its breakdown and that the Zionist war criminals are persecuted; we also request to re-instate the UN resolution that equalizes Zionism with racism. We call for the immediate release of all Palestinian and Arab prisoners detained in Israeli and US prisons. We denounce the occupation of Iraq and support the right of the Iraqi people for resistance and demand the immediate withdrawal of the occupation forces out of it. We support the sovereignty, security, stability and unity of Iraq. We denounce the terrorism in all of its forms as well as the US secret military operations in the region. We express our solidarity towards Syria against the Israeli occupation of the Syrian Golan and denounce the “Syria Accountability Law” approved by the USA Congress. We also support the struggles of the Lebanese youth to complete the liberation of Sheba and Kfarshoba from the Israeli occupation and denounce the Israeli war of 2006 that lead to 1300 Lebanese victims. We denounce external interferences in the internal issues of Lebanon. We support the national dialogue of Yemen and emphasize the security and unity of Yemen. We demand the withdrawal of Spain from Cebta and Mellilla. We support the Egyptian youth and the youth of the Gulf States in their struggle to implement democratic rights, principles of justice and equality and we express solidarity with them against repressive laws and for labor rights. We also ask to treat the causes of immigration from Africa to Europe through Northern African countries. We support the struggles of the Arab youth for economic integration and demand the immediate dismantle of the Israeli nuclear arsenal.
The 17th WFYS is held during the UN International Year on Youth. As happened in 1985, once again the WFYS is, so far, the biggest youth event of this year. More importantly, the WFYS is the most relevant activity, because it most clearly raises the real problems of the youth. Unlike many other activities and the actual framework of UN Year on Youth, in this Festival the youth of the world finds the biggest stage for denouncing the problems and offenses that they suffer from imperialism and its agents.
We, the youth and students of the world gathered in this historical festival, raised our voices against all the illnesses) generated by imperialism, which is undergoing its greatest global crisis. The imperialist world order is driving humanity to the verge of a global confrontation, with the ever-present danger of a nuclear war, through its hegemonic policy that will determine the present and the future of mankind.
It is time to continue the struggle for youth development and our economic, social and cultural values and not those of a decadent system they are trying to impose on us. We shall build a future of justice, equality, peace, hope and joy for humanity. The future of a new stage of history is in our hands and it depends on the peoples, working masses and world youth and their power of transformation, to build a world of peace and solidarity, where the power and the produced wealth will belong to the peoples and the youth of the world.
We thank the people of South Africa for welcoming us to their country and celebrating with us the opportunity to see South Africa change. We commit to you that we the youth of the world will never let our guard down in pursuance of a world free of imperialism. Let us start getting ready for the 18th World Festival of Youth and Students!
Saturday, February 19, 2011
The INCOME tax in INDIA
Income Tax In India
A tax that is applicable on income that has been generated from any source is termed as Income tax. The central board of direct tax (CBDT) is the governing body that takes care of the Indian Income tax. Income tax is imposed by the government on an individual, company, business, Hindu undivided families (HUFs), co-operative organization and trusts. The tax structure is different on different commodities and products. Indian income tax is regularized under income tax act 1961.
History of Income tax
In India Income tax comes into existence in the year 1860. Initially at the time when it was imposed it had taken almost five years to regularize and implement the income tax however income tax act lapsed in the year 1865. Again after a gap of so many years it again comes into force. Act of 1886 was again came into force it defines the full fledged law of income tax it includes the exemption in various agricultural professions, income tax rules on industries and corporation. In the year Act VII of 1918 was launched that reforms the income tax law in a new way. This new act scrutinized the new industries that come under income tax bracket. This new act tries to expand the horizon to generate large revenue for the country.
In the year 1922 another income tax act came into existence as a result of recommendation by the all India income tax committee. With this act a new clause was introduced under which unlike earlier where the collection of income tax in the current assessment year depends on the estimated collection of income tax of previous year. After the income tax act of 1922 there will be no important provision came however the income tax later on comes under the provision of finance act. Every assessment year the new tax structure is decided by the finance department of the country that is released with the union budget. The income tax act of 1922 existed till 1961 however government had handed over the income tax clause to the law commission to review and recast it in a logical way so that the tax amended in an easies way without changing the basic tax structure.
The income tax laws hold many industries and it has diversified clauses for different industries. There are various industries where government offers wavers in subsidies time to time. The present income tax act is same as of 1961 income tax act of India. As per the constitution of India every individual is bound to pay income tax for the progress of the nation. Any individual or an organization if earning any income in the country has to pay income tax. Although in the present day tax structure there is a different slab for man and women. As per Indian income tax law senior citizens are exempted from the regular income tax slab, similarly income generated through the agriculture is not subjected to the income tax. Any state that is affected by the natural calamity is also subjected to the income tax waver.
Tax Rates:
The new tax slabs applicable from April 1, 2010 are as follows:
•On all incomes up to Rs. 1,60,000 per year. (For women - Rs. 1,90,000 and for senior citizens - Rs. 2,40,000), no Income Tax is applicable.
•From Rs. 1,60,001 - Rs. 5,00,000 : 10% of amount ( For women - Rs. 1,90,001 to Rs. 5,00,000 and for senior citizens - Rs. 2,40,001 to Rs. 5,00,000 )
•From Rs. 5,00,000 to Rs. 8,00,000 : 20% of amount ( Same for women and senior citizens )
•Above Rs. 8,00,000 : 30% of amount ( Same for women and senior citizens )
Income from Salary
Under this head, income received as salary under Employer-Employee relationship is taxed. If income exceeds minimum exemption limit, then Employers must withhold tax compulsorily as Tax Deducted at Source (TDS). The employees should also be provided with a Form 16 which shows the tax deductions and net paid income. Form 16 also contains any other deductions provided from salary as follows:
•Medical reimbursement up to Rs. 15,000 per year is tax exempt provided bills are given
•Conveyance allowance up to 9600 per year is tax free
•Professional taxes which are usually a slabbed amount based on gross income are deductible from income tax.
•House rent allowance: the minimum of the following is available as deduction
◦The actual HRA received
◦50%/40 % (metro/non-metro) of 'salary'
◦Rent paid minus 10% of 'salary'
Income from House Property
Income from House property is calculated by considering the Annual Value. The annual value (for a let out property) will be maximum of the following:
•HRA Rent received
•Municipal Valuation
•Fair Rent (as determined by the I-T department)
However if a house is not let out and not self-occupied, then annual value is assumed to have accrued to the owner. In case of a self occupied house, annual value is to be taken as NIL. But if there is more than one self occupied house then the annual value of the other house/s is taxable. From this, Municipal Tax paid is deducted to arrive at the Net Annual Value. From this Net Annual Value, the following are deducted:
•30% of Net value as repair cost - mandatory deduction
•Interest paid or payable on a housing loan for the house
Income from Business or Profession:
Income arising from profits and gains of any Business or Profession; income derived by a Trade/ Professional/ similar Association by performing specific services for its members; any benefit from business whether convertible into money or not, incentives for exporters; any salary, interest, bonus, commission or remuneration received by Partner of a firm; any amount received under a Key man Insurance Policy which also covers Bonus; income from managing agency and speculative transactions; is taxable.
Income from Capital Gains
Under section 2(14) of the I.T. Act, 1961, Capital asset is defined as property of any kind held by an assessee such as real estate, equity shares, bonds, jewellery, paintings, art etc. but does not consist of items like stock-in-trade for businesses or for personal effects. Capital gains arise by transfer of such capital assets.
Long term and short term capital assets are considered for tax purposes. Long term assets are those assets which are held by a person for three years except in case of shares or mutual funds which becomes long term just after one year of holding. Sale of long term assets give rise to long term capital gains which are taxable as below:
•As per Section 10(38) of Income Tax Act, 1961 long term capital gains on shares/securities/ mutual funds on which Securities Transaction Tax (STT) has been deducted and paid, no tax is payable. Higher capital gains taxes will apply only on those transactions where STT is not paid.
•For other shares & securities, person has an option to either index costs to inflation and pay 20% of indexed gains, or pay 10% of non indexed gains.
•For all other long term capital gains, indexation benefit is available and tax rate is 20%
Income from Other Sources
There are some specific incomes which are to be taxed under this category such as income by way of dividends, horse races, winning of bull races, winning of lotteries, amount received from key man insurance policy.
So as we can see the Indian Income Tax law is a subject which is filled with legal jargons and complexities that keep on changing every new financial year and the importance of this law in our routine life simply cannot be ignored. Whether it is filing of Income Returns on due dates or whether it's a financial investment decision to be taken, every where the Income Tax provisions play a major role in driving of the cost factor.
•Taxable Income In India.
•Incomes which are exempt from Tax
•Duduction And Rebate In Income Tax.
•Tax Free Incomes In India.
•Double Taxation Avoidance Agreements (DTAA).
•Appeals In Income Tax India.
•Penalties under Income Tax Act.
•PAN In Income Tax India.
•Non-resident under Income Tax Act.
A tax that is applicable on income that has been generated from any source is termed as Income tax. The central board of direct tax (CBDT) is the governing body that takes care of the Indian Income tax. Income tax is imposed by the government on an individual, company, business, Hindu undivided families (HUFs), co-operative organization and trusts. The tax structure is different on different commodities and products. Indian income tax is regularized under income tax act 1961.
History of Income tax
In India Income tax comes into existence in the year 1860. Initially at the time when it was imposed it had taken almost five years to regularize and implement the income tax however income tax act lapsed in the year 1865. Again after a gap of so many years it again comes into force. Act of 1886 was again came into force it defines the full fledged law of income tax it includes the exemption in various agricultural professions, income tax rules on industries and corporation. In the year Act VII of 1918 was launched that reforms the income tax law in a new way. This new act scrutinized the new industries that come under income tax bracket. This new act tries to expand the horizon to generate large revenue for the country.
In the year 1922 another income tax act came into existence as a result of recommendation by the all India income tax committee. With this act a new clause was introduced under which unlike earlier where the collection of income tax in the current assessment year depends on the estimated collection of income tax of previous year. After the income tax act of 1922 there will be no important provision came however the income tax later on comes under the provision of finance act. Every assessment year the new tax structure is decided by the finance department of the country that is released with the union budget. The income tax act of 1922 existed till 1961 however government had handed over the income tax clause to the law commission to review and recast it in a logical way so that the tax amended in an easies way without changing the basic tax structure.
The income tax laws hold many industries and it has diversified clauses for different industries. There are various industries where government offers wavers in subsidies time to time. The present income tax act is same as of 1961 income tax act of India. As per the constitution of India every individual is bound to pay income tax for the progress of the nation. Any individual or an organization if earning any income in the country has to pay income tax. Although in the present day tax structure there is a different slab for man and women. As per Indian income tax law senior citizens are exempted from the regular income tax slab, similarly income generated through the agriculture is not subjected to the income tax. Any state that is affected by the natural calamity is also subjected to the income tax waver.
Tax Rates:
The new tax slabs applicable from April 1, 2010 are as follows:
•On all incomes up to Rs. 1,60,000 per year. (For women - Rs. 1,90,000 and for senior citizens - Rs. 2,40,000), no Income Tax is applicable.
•From Rs. 1,60,001 - Rs. 5,00,000 : 10% of amount ( For women - Rs. 1,90,001 to Rs. 5,00,000 and for senior citizens - Rs. 2,40,001 to Rs. 5,00,000 )
•From Rs. 5,00,000 to Rs. 8,00,000 : 20% of amount ( Same for women and senior citizens )
•Above Rs. 8,00,000 : 30% of amount ( Same for women and senior citizens )
Income from Salary
Under this head, income received as salary under Employer-Employee relationship is taxed. If income exceeds minimum exemption limit, then Employers must withhold tax compulsorily as Tax Deducted at Source (TDS). The employees should also be provided with a Form 16 which shows the tax deductions and net paid income. Form 16 also contains any other deductions provided from salary as follows:
•Medical reimbursement up to Rs. 15,000 per year is tax exempt provided bills are given
•Conveyance allowance up to 9600 per year is tax free
•Professional taxes which are usually a slabbed amount based on gross income are deductible from income tax.
•House rent allowance: the minimum of the following is available as deduction
◦The actual HRA received
◦50%/40 % (metro/non-metro) of 'salary'
◦Rent paid minus 10% of 'salary'
Income from House Property
Income from House property is calculated by considering the Annual Value. The annual value (for a let out property) will be maximum of the following:
•HRA Rent received
•Municipal Valuation
•Fair Rent (as determined by the I-T department)
However if a house is not let out and not self-occupied, then annual value is assumed to have accrued to the owner. In case of a self occupied house, annual value is to be taken as NIL. But if there is more than one self occupied house then the annual value of the other house/s is taxable. From this, Municipal Tax paid is deducted to arrive at the Net Annual Value. From this Net Annual Value, the following are deducted:
•30% of Net value as repair cost - mandatory deduction
•Interest paid or payable on a housing loan for the house
Income from Business or Profession:
Income arising from profits and gains of any Business or Profession; income derived by a Trade/ Professional/ similar Association by performing specific services for its members; any benefit from business whether convertible into money or not, incentives for exporters; any salary, interest, bonus, commission or remuneration received by Partner of a firm; any amount received under a Key man Insurance Policy which also covers Bonus; income from managing agency and speculative transactions; is taxable.
Income from Capital Gains
Under section 2(14) of the I.T. Act, 1961, Capital asset is defined as property of any kind held by an assessee such as real estate, equity shares, bonds, jewellery, paintings, art etc. but does not consist of items like stock-in-trade for businesses or for personal effects. Capital gains arise by transfer of such capital assets.
Long term and short term capital assets are considered for tax purposes. Long term assets are those assets which are held by a person for three years except in case of shares or mutual funds which becomes long term just after one year of holding. Sale of long term assets give rise to long term capital gains which are taxable as below:
•As per Section 10(38) of Income Tax Act, 1961 long term capital gains on shares/securities/ mutual funds on which Securities Transaction Tax (STT) has been deducted and paid, no tax is payable. Higher capital gains taxes will apply only on those transactions where STT is not paid.
•For other shares & securities, person has an option to either index costs to inflation and pay 20% of indexed gains, or pay 10% of non indexed gains.
•For all other long term capital gains, indexation benefit is available and tax rate is 20%
Income from Other Sources
There are some specific incomes which are to be taxed under this category such as income by way of dividends, horse races, winning of bull races, winning of lotteries, amount received from key man insurance policy.
So as we can see the Indian Income Tax law is a subject which is filled with legal jargons and complexities that keep on changing every new financial year and the importance of this law in our routine life simply cannot be ignored. Whether it is filing of Income Returns on due dates or whether it's a financial investment decision to be taken, every where the Income Tax provisions play a major role in driving of the cost factor.
•Taxable Income In India.
•Incomes which are exempt from Tax
•Duduction And Rebate In Income Tax.
•Tax Free Incomes In India.
•Double Taxation Avoidance Agreements (DTAA).
•Appeals In Income Tax India.
•Penalties under Income Tax Act.
•PAN In Income Tax India.
•Non-resident under Income Tax Act.
the UNION BUDGET 2010-11
http://indiabudget.nic.in
Key Features of Budget 2010-2011
CHALLENGES
To quickly revert to the high GDP growth path of 9 per cent and then find the
means to cross the ‘double digit growth barrier’.
To harness economic growth to consolidate the recent gains in making development
more inclusive.
To address the weaknesses in government systems, structures and institutions at
different levels of governance.
OVERVIEW OF THE ECONOMY
India among the first few countries in the world to implement a broad-based
counter-cyclic policy package to respond to the negative fallout of the global
slowdown.
The Advance Estimates for Gross Domestic Product (GDP) growth for 2009-10
pegged at 7.2 per cent. The final figure expected to be higher when the third and
fourth quarter GDP estimates for 2009-10 become available.
The growth rate in manufacturing sector in December 2009 was 18.5 per cent – the
highest in the past two decades.
A major concern during the second half of 2009-10 has been the emergence of
double digit food inflation. Government has set in motion steps, in consultation
with the State Chief Ministers, which should bring down the inflation in the next
few months and ensure that there is better management of food security in the
country.
CONSOLIDATING GROWTH
Fiscal Consolidation
With recovery taking root, there is a need to review public spending, mobilise
resources and gear them towards building the productivity of the economy.
Fiscal policy shaped with reference to the recommendations of the Thirteenth
Finance Commission, which has recommended a calibrated exit strategy from the
expansionary fiscal stance of last two years.
It would be for the first time that the Government would target an explicit reduction
in its domestic public debt-GDP ratio.
2
http://indiabudget.nic.in
Tax reforms
On the Direct Tax Code (DTC) the wide-ranging discussions with stakeholders
have been concluded – Government will be in a position to implement the DTC
from April 1, 2011.
Centre actively engaged with the Empowered Committee of State Finance Ministers
to finalise the structure of Goods and Services Tax (GST) as well as the modalities
of its expeditious implementation. Endeavour to introduce GST by April, 2011
People’s ownership of PSUs
Ownership has been broad based in Oil India Limited, NHPC, NTPC and Rural
Electrification Corporation while the process is on for National Mineral
Development Corporation and Satluj Jal Vidyut Nigam. This will raise about
Rs 25,000 crore during the current year.
Higher amount proposed to be raised during the year 2010-11.
Fertiliser subsidy
A Nutrient Based Subsidy policy for the fertiliser sector has been approved by the
Government and will become effective from April 1, 2010.
This will lead to an increase in agricultural productivity and better returns for the
farmers, and overtime reduce the volatility in demand for fertiliser subsidy and
contain the subsidy bill.
Petroleum and Diesel pricing policy
Expert Group to advise the Government on a viable and sustainable system of
pricing of petroleum products has submitted its recommendations.
Decision on these recommendations will be taken in due course.
Improving Investment Environment
Foreign Direct Investment
Number of steps taken to simplify the FDI regime.
Methodology for calculation of indirect foreign investment in Indian companies
has been clearly defined.
Complete liberalisation of pricing and payment of technology transfer fee and
trademark, brand name and royalty payments.
Financial Stability and Development Council
An apex level Financial Stability and Development Council to be set up with a
view to strengthen and institutionalise the mechanism for maintaining financial
stability.
This Council would monitor macro-prudential supervision of the economy,
including the functioning of large financial conglomerates, and address inter-
regulatory coordination issues.
http://indiabudget.nic.in
Banking Licences
RBI is considering giving some additional banking licenses to private sector players.
Non Banking Financial Companies could also be considered, if they meet the RBI’s
eligibility criteria.
Public Sector Bank Capitalisation
Rs.16,500 crore provided to ensure that the Public Sector Banks are able to attain
a minimum 8 per cent Tier-I capital by March 31, 2011.
Recapitalisation of Regional Rural Banks (RRB)
Government to provide further capital to strengthen the RRBs so that they have
adequate capital base to support increased lending to the rural economy.
Corporate Governance
Government has introduced the Companies Bill, 2009 in the Parliament to replace
the existing Companies Act, 1956, which will address issues related to regulation
in corporate sector in the context of the changing business environment.
Exports
Extension of existing interest subvention of 2 per cent for one more year for exports
covering handicrafts, carpets, handlooms and small and medium enterprises.
Agriculture Growth
Government will follow a four-pronged strategy, covering
(a) Agricultural production
Rs. 400 crore provided to extend the green revolution to the eastern region of the
country comprising Bihar, Chattisgarh, Jharkhand, Eastern UP, West Bengal and
Orissa.
Rs. 300 crore provided to organise 60,000 “pulses and oil seed villages” in rain-fed
areas during 2010-11 and provide an integrated intervention for water harvesting,
watershed management and soil health, to enhance the productivity of the dry land
farming areas.
Rs. 200 crore provided for sustaining the gains already made in the green revolution
areas through conservation farming, which involves concurrent attention to soil
health, water conservation and preservation of biodiversity.
(b) Reduction in wastage of produce
Government to address the issue of opening up of retail trade. It will help in bringing
down the considerable difference between farm gate, wholesale and retail prices.
Deficit in the storage capacity met through an ongoing scheme for private sector
participation – FCI to hire godowns from private parties for a guaranteed period of
7 years.
(c) Credit support to farmers
Banks have been consistently meeting the targets set for agriculture credit flow in
the past few years. For the year 2010-11, the target has been set at Rs.3,75,000
crore.
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In view of the recent drought in some States and the severe floods in some other
parts of the country, the period for repayment of the loan amount by farmers extended
by six months from December 31, 2009 to June 30, 2010 under the Debt Waiver
and Debt Relief Scheme for Farmers.
Incentive of additional one per cent interest subvention to farmers who repay
short-term crop loans as per schedule, increased to 2% for 2010-11.
(d) Impetus to the food processing sector
In addition to the ten mega food park projects already being set up, the Government
has decided to set up five more such parks.
External Commercial Borrowings to be available for cold storage or cold room
facility, including for farm level pre-cooling, for preservation or storage of
agricultural and allied produce, marine products and meat.
Infrastructure
Rs 1,73,552 crore provided for infrastructure development which accounts for over
46 per cent of the total plan allocation.
Allocation for road transport increased by over 13 per cent from Rs. 17,520 crore
to Rs 19,894 crore.
Rs 16,752 crore provided for Railways, which is about Rs.950 crore more than last
year.
India Infrastructure Finance Company Limited (IIFCL)
IIFCL’s disbursements are expected to touch Rs 9,000 crore by end March 2010
and reach around Rs 20,000 crore by March 2011.
IIFCL has refinanced bank lending to infrastructure projects of Rs. 3,000 crore during
the current year and is expected to more than double that amount in 2010-11.
The take-out financing scheme announced in the last Budget is expected to initially
provide finance for about Rs. 25,000 crore in the next three years.
Energy
Plan allocation for power sector excluding RGGVY doubled from Rs.2230 crore
in 2009-10 to Rs.5,130 crore in 2010-11.
Government proposes to introduce a competitive bidding process for allocating
coal blocks for captive mining to ensure greater transparency and increased
participation in production from these blocks.
A “Coal Regulatory Authority” to create a level playing field in the coal sector
proposed to be set up.
Plan outlay for the Ministry of New and Renewable Energy increased by 61 per
cent from Rs.620 crore in 2009-10 to Rs.1,000 crore in 2010-11.
Solar, small hydro and micro power projects at a cost of about Rs.500 crore to be
set up in Ladakh region of Jammu and Kashmir.
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Environment and Climate change
National Clean Energy Fund for funding research and innovative projects in clean
energy technologies to be established.
One-time grant of Rs.200 crore to the Government of Tamil Nadu towards the cost of
installation of a zero liquid discharge system at Tirupur to sustain knitwear industry.
Rs.200 crore provided as a Special Golden Jubilee package for Goa to preserve the
natural resources of the State, including sea beaches and forest cover.
Allocation for National Ganga River Basin Authority (NGRBA) doubled in
2010-11 to Rs.500 crore.
Schemes on bank protection works along river Bhagirathi and river Ganga-Padma
in parts of Murshidabad and Nadia district of West Bengal included in the Centrally
Sponsored Flood Management Programme.
A project at Sagar Island to be developed to provide an alternate port facility in
West Bengal.
INCLUSIVE DEVELOPMENT
The spending on social sector has been gradually increased to Rs.1,37,674 crore in
2010-11, which is 37% of the total plan outlay in 2010-11.
Another 25 per cent of the plan allocations are devoted to the development of rural
infrastructure.
Education
Plan allocation for school education increased by 16 per cent from Rs.26,800 crore
in 2009-10 to Rs.31,036 crore in 2010-11.
In addition, States will have access to Rs.3,675 crore for elementary education
under the Thirteenth Finance Commission grants for 2010-11.
Health
An Annual Health Survey to prepare the District Health Profile of all Districts
shall be conducted in 2010-11.
Plan allocation to Ministry of Health & Family Welfare increased from Rs 19,534
crore in 2009-10 to Rs 22,300 crore for 2010-11.
Financial Inclusion
Appropriate Banking facilities to be provided to habitations having population in
excess of 2000 by March, 2012.
Insurance and other services to be provided using the Business Correspondent model.
By this arrangement, it is proposed to cover 60,000 habitations.
Augmentation of Rs.100 crore each for the Financial Inclusion Fund (FIF) and the
Financial Inclusion Technology Fund, which shall be contributed by Government
of India, RBI and NABARD.
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Rural Development
Rs. 66,100 crore provided for Rural Development.
Allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme
stepped up to Rs.40,100 crore in 2010-11.
An amount of Rs.48,000 crore allocated for rural infrastructure programmes under
Bharat Nirman.
Unit cost under Indira Awas Yojana increased to Rs.45,000 in the plain areas and
to Rs.48,500 in the hilly areas. Allocation for this scheme increased to Rs.10,000
crore.
Allocation to Backward Region Grant Fund enhanced by 26 per cent from Rs.5,800
crore in 2009-10 to Rs 7,300 crore in 2010-11.
Additional central assistance of Rs 1,200 crore provided for drought mitigation in
the Bundelkhand region.
Urban Development and Housing
Allocation for urban development increased by more than 75 per cent from Rs.3,060
crore to Rs.5,400 crore in 2010-11.
Allocation for Housing and Urban Poverty Alleviation raised from Rs.850 crore to
Rs.1,000 crore in 2010-11.
Scheme of one per cent interest subvention on housing loan upto Rs.10 lakh, where
the cost of the house does not exceed Rs.20 lakh — announced in the last
Budget — extended up to March 31, 2011. Rs.700 crore provided for this scheme
for the year 2010-11.
Rs.1,270 crore allocated for Rajiv Awas Yojana as compared to Rs.150 crore last
year.
Micro, Small & Medium Enterprises
High Level Council on Micro and Small Enterprises to monitor the implementation
of the recommendations of High-Level Task Force constituted by Prime Minister.
Allocation for this sector to be increased from Rs.1,794 crore to Rs.2,400 crore for
the year 2010-11.
The corpus for Micro-Finance Development and Equity Fund doubled to Rs.400
crore in 2010-11.
Unorganised Sector
National Social Security Fund for unorganised sector workers
National Social Security Fund for unorganised sector workers to be set up with an
initial allocation of Rs.1000 crore. This fund will support schemes for weavers,
toddy tappers, rickshaw pullers, bidi workers etc.
Rashtriya Swasthya Bima Yojana benefits extended to all such Mahatma Gandhi
NREGA beneficiaries who have worked for more than 15 days during the preceding
financial year.
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A new initiative, “Swavalamban” will be available for persons who join New
Pension Scheme (NPS), with a minimum contribution of Rs.1,000 and a maximum
contribution of Rs.12,000 per annum during the financial year 2010-11, wherein
Government will contribute Rs.1,000 per year to each NPS account opened in the
year 2010-11. Allocation of Rs.100 crore made for this initiative.
Skill development
National Skill Development Corporation has approved three projects worth about
Rs 45 crore to create 10 lakh skilled manpower at the rate of one lakh per annum.
An extensive skill development programme in the textile and garment sector to be
launched by leveraging the strength of existing institutions and instruments of the
Textile Ministry to train 30 lakh persons over 5 years.
Social Welfare
Plan outlay for Women and Child Development stepped up by almost 50 per cent.
The ICDS platform being expanded for effective implementation of the Rajiv Gandhi
Scheme for Adolescent Girls.
“Saakshar Bharat” to further improve female literacy rate launched with a target
of 7 crore non-literate adults which includes 6 crore women.
Mahila Kisan Sashaktikaran Pariyojana to meet the specific needs of women
farmers to be launched with a provision of Rs 100 crore as a sub-component of the
National Rural Livelihood Mission.
Plan outlay of the Ministry of Social Justice and Empowerment enhanced by 80
per cent to Rs.4500 crore. With this enhancement, the Ministry will be able to
revise rates of scholarship under its post-matric scholarship schemes for SCs and
OBC students.
Plan allocation for the Ministry of Minority Affairs increased by 50 per cent from
Rs.1,740 crore to Rs.2,600 crore for the year 2010-11.
STRENGTHENING TRANSPARENCY & PUBLIC ACCOUNTABILTY
Financial Sector Legislative Reforms Commission to be set up to rewrite and clean
up the financial sector laws to bring them in line with the requirements of the
sector.
Rs 1,900 crore allocated to the Unique Identification Authority of India (UIDAI)
for 2010-11. UIDAI will be able to meet its commitments of issuing the first set of
UID numbers in the coming year
A Technology Advisory Group for Unique Projects (TAGUP) to be set up to look
into various technological and systemic issues for effective tax administration and
financial governance.
Independent Evaluation Office (IEO) chaired by the Deputy Chairman, Planning
Commission to be set up to evaluate the impact of flagship programmes.
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Security and Justice
Allocation for Defence increased to Rs. 1,47,344 crore including Rs 60,000 crore
for capital expenditure.
About 2,000 youth to be recruited as constables in five Central Para Military Forces
from Jammu and Kashmir in the year 2010.
Planning Commission to prepare an integrated action plan for the thirty-three left
wing extremism affected districts. Adequate funds will be made available to support
the action plan.
Government has approved the setting up of the National Mission for Delivery of
Justice and Legal Reforms to help reduce legal backlog in courts from an average
of 15 years at present to 3 years by 2012.
BUDGET ESTIMATES 2010-11
The Gross Tax Receipts are estimated at Rs. 7,46,651 crore
The Non Tax Revenue Receipts are estimated at Rs. 1,48,118 crore.
The net tax revenue to the Centre as well as the expenditure provisions in 2010-11
have been estimated with reference to the recommendations of the Thirteenth
Finance Commission.
The total expenditure proposed in the Budget Estimates is Rs. 11,08,749 crore,
which is an increase of 8.6 per cent over last year.
The Plan and Non Plan expenditures in BE 2010-11 are estimated at Rs. 3,73,092
crore and Rs. 7,35,657 crore respectively. While there is 15 per cent increase in
Plan expenditure, the increase in Non Plan expenditure is only 6 per cent over the
BE of previous year.
Fiscal deficit for BE 2010-11 at 5.5 per cent of GDP, which works out to Rs.3,81,408
crore.
Taking into account the various other financing items for fiscal deficit, the actual
net market borrowing of the Government in 2010-11 would be of the order of
Rs.3,45,010 crore. This would leave enough space to meet the credit needs of the
private sector.
The rolling targets for fiscal deficit are pegged at 4.8 per cent and 4.1 per cent for
2011-12 and 2012-13, respectively.
Against a fiscal deficit of 7.8 per cent in 2008-09, inclusive of oil and fertilizer
bonds, the comparable fiscal deficit is 6.9 per cent as per the Revised Estimates for
2009-10.
Conscious effort made to avoid issuing bonds to oil and fertilizer companies.
Government would like to continue with this practice of extending Government
subsidy in cash, thereby bringing all subsidy related liabilities into Government’s
fiscal accounting.
PART B TAX PROPOSALS
The Centralized Processing Centre at Bengaluru is now fully functional and is
processing around 20,000 returns daily. This initiative will be taken forward by
setting up two more Centres during the year.
The Income Tax department has introduced “Sevottam”, a pilot project at Pune,
Kochi and Chandigarh throughAayakar Seva Kendras, which provide a single window
system for registration of all applications including those for redressal of grievances
as well as paper returns. The scheme will be extended to four more cities in the year.
Automation of Central Excise & Service Tax, has already been rolled out throughout
the country this year. Similarly, a Mission Mode Project for computerization of
Commercial Taxes in States has been approved recently. With an outlay of
Rs. 1133 crore of which the Centre’s share is Rs. 800 crore, the project will lay the
foundation for the launch of GST.
The income tax department to notify SARAL-II form for individual salaried
taxpayers for the coming assessment year.
Scope of cases which may be admitted by the Settlement Commission expanded to
include proceedings related to search and seizure cases pending for assessment.
Scope of Settlement Commission also expanded in respect of Central Excise and
Customs to include certain categories of cases that hitherto fell outside its
jurisdiction.
Bi-lateral discussions commenced to enhance the exchange of bank related and
other information to effectively track tax evasion and identify undisclosed assets
of resident Indians lying abroad.
Direct Taxes
Income tax slabs for individual taxpayers to be as follows
Income upto Rs 1.6 lakh
Income above Rs 1.6 lakh and upto Rs. 5 lakh
Income above Rs.5 lakh and upto Rs. 8 lakh
Income above Rs. 8 lakh
Nil
10 per cent
20 per cent
30 per cent
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Deduction of an additional amount of Rs. 20,000 allowed, over and above the
existing limit of Rs.1 lakh on tax savings, for investment in long-term infrastructure
bonds as notified by the Central Government
Besides contributions to health insurance schemes which is currently allowed as a
deduction under the Income-tax Act, contributions to the Central Government Health
Scheme also allowed as a deduction under the same provision.
Current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent.
Rate of Minimum Alternate Tax (MAT) increased from the current rate of 15 per
cent to 18 per cent of book profits.
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To further encourage R&D across all sectors of the economy, weighted deduction
on expenditure incurred on in-house R&D enhanced from 150 per cent to 200 per
cent. Weighted deduction on payments made to National Laboratories, research
associations, colleges, universities and other institutions, for scientific research
enhanced from 125 per cent to 175 per cent.
Payment made to an approved association engaged in research in social sciences
or statistical research to be allowed as a weighted deduction of 125 per cent. The
income of such approved research association shall be exempt from tax.
Benefit of investment linked deduction under the Act extended to new hotels of
two-star category and above anywhere in India to boost investment in the tourism
sector.
Allow pending projects to be completed within a period of five years instead of
four years for claiming a deduction of their profits, as a one time interim relief to
the housing and real estate sector. Norms for built-up area of shops and other
commercial establishments in housing projects to be relaxed to enable basic facilities
for their residents.
Limits for turnover over which accounts need to be audited enhanced to Rs. 60
lakh for businesses and to Rs. 15 lakh for professions.
Limit of turnover for the purpose of presumptive taxation of small businesses
enhanced to Rs. 60 lakh.
If tax has been deducted on payment by way of any expense and is paid before the
due date of filing the return, such expenditure to be allowed for deduction. Interest
charged on tax deducted but not deposited by the specified date to be increased
from 12 per cent to 18 per cent per annum.
To facilitate the conversion of small companies into Limited Liability Partnerships,
transfer of assets as a result of such conversion not to be subject to capital gains
tax.
“The advancement of any other object of general public utility” to be considered as
“charitable purpose” even if it involves carrying on of any activity in the nature of
trade, commerce or business provided that the receipts from such activities do not
exceed Rs.10 lakh in the year .
Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year.
Indirect Taxes
Rate reduction in Central Excise duties to be partially rolled back and the standard
rate on all non-petroleum products enhanced from 8 per cent to 10 per cent
ad valorem.
The specific rates of duty applicable to portland cement and cement clinker also
adjusted upwards proportionately. Similarly, the ad valorem component of excise
duty on large cars, multi-utility vehicles and sports-utility vehicles increased by 2
percentage points to 22 per cent.
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Restore the basic duty of 5 per cent on crude petroleum; 7.5 per cent on diesel and
petrol and 10 per cent on other refined products. Central Excise duty on petrol and
diesel enhanced by Re.1 per litre each.
Some structural changes in the excise duty on cigarettes, cigars and cigarillos to be
made coupled with some increase in rates. Excise duty on all non-smoking tobacco
such as scented tobacco, snuff, chewing tobacco etc to be enhanced. Compounded
levy scheme for chewing tobacco and branded unmanufactured tobacco based on
the capacity of pouch packing machines to be introduced.
Agriculture & Related Sectors
Provide project import status with a concessional import duty of 5 per cent for the
setting up of mechanised handling systems and pallet racking systems in ‘mandis’
or warehouses for food grains and sugar as well as full exemption from service tax
for the installation and commissioning of such equipment.
Provide project import status at a concessional customs duty of 5 per cent with full
exemption from service tax to the initial setting up and expansion of
♦ Cold storage, cold room including farm pre-coolers for preservation or storage
of agriculture and related sectors produce ; and
♦ Processing units for such produce.
Provide full exemption from customs duty to refrigeration units required for the
manufacture of refrigerated vans or trucks.
Provide concessional customs duty of 5 per cent to specified agricultural machinery
not manufactured in India;
Provide central excise exemption to specified equipment for preservation, storage
and processing of agriculture and related sectors and exemption from service tax
to the storage and warehousing of their produce; and
Provide full exemption from excise duty to trailers and semi-trailers used in
agriculture.
Concessional import duty to specified machinery for use in the plantation sector to
be, extended up to March 31, 2011 along with a CVD exemption.
To exempt the testing and certification of agricultural seeds from service tax.
The transportation by road of cereals, and pulses to be exempted from service tax.
Transportation by rail to remain exempt.
To ease the cash flow position for small-scale manufacturers, they would be
permitted to take full credit of Central Excise duty paid on capital goods in a single
installment in the year of their receipt. Secondly, they would be permitted to pay
Central Excise duty on a quarterly, rather than monthly, basis.
Environment
To build the corpus of the National Clean Energy Fund, clean energy cess on coal
produced in India at a nominal rate of Rs.50 per tonne to be levied. This cess will
also apply on imported coal.
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Provide a concessional customs duty of 5 per cent to machinery, instruments,
equipment and appliances etc. required for the initial setting up of photovoltaic
and solar thermal power generating units and also exempt them from Central Excise
duty. Ground source heat pumps used to tap geo-thermal energy to be exempted
from basic customs duty and special additional duty.
Exempt a few more specified inputs required for the manufacture of rotor blades
for wind energy generators from Central Excise duty.
Central Excise duty on LED lights reduced from 8 per cent to 4 per cent at par with
Compact Fluorescent Lamps.
To remedy the difficulty faced by manufacturers of electric cars and vehicles in
neutralising the duty paid on their inputs and components, a nominal duty of 4 per
cent on such vehicles imposed. Some critical parts or sub-assemblies of such
vehicles exempted from basic customs duty and special additional duty subject to
actual user condition. These parts would also enjoy a concessional CVD of 4 per
cent.
A concessional excise duty of 4 per cent provided to “soleckshaw”, a product
developed by CSIR to replace manually-operated rickshaws. Its key parts and
components to be exempted from customs duty.
Import of compostable polymer exempted from basic customs duty.
Infrastructure
Project import status to ‘Monorail projects for urban transport’ at a concessional
basic duty of 5 per cent granted.
To allow resale of specified machinery for road construction projects on payment
of import duty at depreciated value.
To encourage the domestic manufacture of mobile phones accessories, exemptions
from basic, CVD and special additional duties are now being extended to parts of
battery chargers and hands-free headphones. The validity of the exemption from
special additional duty is being extended till March 31, 2011.
Medical Sector
Uniform, concessional basic duty of 5 per cent, CVD of 4 per cent with full
exemption from special additional duty prescribed on all medical equipments. A
concessional basic duty of 5 per cent is being prescribed on parts and accessories
for the manufacture of such equipment while they would be exempt from CVD
and special additional duty.
Full exemption currently available to medical equipment and devices such as
assistive devices, rehabilitation aids etc. retained. The concession available to
Government hospitals or hospitals set up under a statute also retained.
Specified inputs for the manufacture of orthopaedic implants exempted from import
duty.
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Infotainment
To address the difficulties experienced by film industry in importing digital masters
of films for duplication or distribution loaded on electronic medium vis-a-vis those
imported on cinematographic film, owing to a differential customs duty structure,
customs duty to be charged only on the value of the carrier medium. The same
dispensation would apply to music and gaming software imported for duplication.
In all such cases the value representing the transfer of intellectual property rights
would be subjected to service tax.
Provide project import status at a concessional customs duty of 5 per cent with full
exemption from special additional duty to the initial setting up “Digital Head End”
equipment by multi-service operators.
Precious Metals
Rates on precious metals indexed as follows:
♦ On gold and platinum from Rs.200 per 10 grams to Rs.300 per 10 grams
♦ On silver from Rs.1,000 per kg to Rs.1,500 per kg.
Basic customs on Rhodium – a precious metal used for polishing jewellery reduced
to 2 per cent.
Basic customs duty on gold ore and concentrates reduced from 2 per cent ad valorem
to a specific duty of Rs.140 per 10 grams of gold content with full exemption from
special additional duty. Further, the excise duty on refined gold made from such
ore or concentrate reduced from 8 per cent to a specific duty of Rs.280 per 10
grams.
Other Proposals
Full exemption from import duty available to specified inputs or raw materials
required for the manufacture of sports goods expanded to cover a few more items.
Basic customs duty on one of key components in production of micro-wave ovens,
namely magnetrons, reduced from 10 per cent to 5 per cent.
Value limit of Rs. 1 lakh per annum on duty-free import of commercial samples as
personal baggage enhanced to Rs. 3 lakh per annum.
Outright exemption from special additional duty provided to goods imported in a
pre-packaged form for retail sale. This would also cover mobile phones, watches
and ready-made garments even when they are not imported in pre-packaged form.
The refund-based exemption is also being retained for cases not covered by the
new dispensation.
Toy balloons fully exempted from Central Excise duty.
Reduction in basic customs duty on long pepper from 70 per cent to 30 per cent;
Reduction in basic customs duty on asafoetida from 30 per cent to 20 per cent;
Reduction in central excise duty on replaceable kits for household type water filters
other than those based on RO technology to 4 per cent;
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Reduction in central excise duty on corrugated boxes and cartons from 8 per cent
to 4 per cent;
Reduction in central excise duty on latex rubber thread from 8 per cent to 4 per
cent; and
Reduction in excise duty on goods covered under the Medicinal and Toilet
Preparations Act from 16 per cent to 10 per cent.
Proposals relating to customs and central excise are estimated to result in a net
revenue gain of Rs. 43,500 crore for the year.
Service Tax
Rate of tax on services retained at 10 per cent to pave the way forward for GST.
Certain services, hitherto untaxed, to be brought within the purview of the service
tax levy. These to be notified separately.
Process of refund of accumulated credit to exporters of services, especially in the
area of Information Technology and Business Process Outsourcing, made easy by
making necessary changes in the definition of export of services and procedures.
Accredited news agencies which provide news feed online that meet certain criteria,
exempted from service tax.
Proposals relating to service tax are estimated to result in a net revenue gain of Rs
3,000 crore for the year.
Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year. Proposals relating to Indirect Taxes estimated to result in a net revenue
gain of Rs.46,500 crore for the year. Taking into account the concessions being
given in the tax proposals and measures taken to mobilise additional resources, the
net revenue gain is estimated to be Rs. 20,500 crore for the year.
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