FICCI suggests deduction of interest paid on borrowed capital

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FICCI, in its pre-budget memorandum, has proposed deduction of upto a maximum limit of Rs 1,50,000, in interest paid on borrowed capital. The deduction of the mentioned amount is currently available from taxable income towards interest on loan taken for acquisition/construction of self-occupied house property. The industry body has recommended that t

India’s trade deficit widens to nearly $20 bn in Jan

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India’s imports in the month of January 2013 rose at a sharper pace than exports, widening the trade deficit to USD 19.99 billion from USD 17.57 billion during the year ago period, according to provisional data issued by the Ministry of Commerce on Wednesday. Exports in January rose marginally from a year earlier to USD 25.58 billion while impo

Govt’s move on dual pricing of diesel fails

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The government's proposal to cut the diesel subsidy by implementing a dual-pricing system seems to be failing, as the commercial consumers are tanking up at petrol pumps instead of buying directly from state-run fuel retailers at full market price. “The government had on January 17 implemented the dual pricing system under which consumers bu

Stimulate investments to get back on growth path: C Rangarajan

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Stressing the need to get back on the growth path, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan today emphasised on the need to stimulate investments. With the Index for Industrial Production (IIP) declining for the second consecutive month, Rangarajan said, “Our investment rate has fallen but it is still growing

Committed to limit fiscal deficit to 5.3% of GDP in FY’13: Manmohan Singh

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Expressing concerns over economic slowdown, Prime Minister Manmohan Singh said the government is committed to containing the fiscal deficit to 5.3 per cent of GDP this fiscal and various steps are being taken to revive economy, which include faster clearances to mega projects. Addressing Conference of Governors, PM said,

“The factors

India’s retail inflation on the rise as CPI surges to 10.79% in Jan’13

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Consumers in India continue to feel the pinch of rising prices as retail price inflation remained at double digits, leaving little leeway for further monetary easing in the near-term by the RBI to boost faltering growth in Asia’s third biggest economy. Consumer prices rose at a faster pace last month as prices of vegetables, edible oil, cereals

December IIP data disappointing, least to say: CII Director

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Raising concern over gloomy macroeconomic environment, with industrial output in December contracting 0.6 percent, CII Director General Chandrajit Banerjee said the IIP figures for December are disappointing to say the least. Commenting on the IIP number, Banerjee said, “With the exception of October 2012, there is a secular trend developing, wh

Govt to offer Rs 25,000 cr to OMCs as additional subsidy: Media Reports

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In order to make up for the losses incurred by oil marketing companies (OMCs) via selling cooking and auto fuel below cost, the government has announced plans to pay Rs 25,000 crore to these OMCs as additional cash subsidy, said the media reports. On February 07, the Finance Ministry issued a “comfort letter” to IOC, HPCL and BPCL. In the

FY’13 Current Account Deficit going to be the highest ever: D Subbarao

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The Reserve Bank of India (RBI) governor D Subbarao said that India’s current account deficit (CAD), as a percentage of GDP, is likely to rise to a record high level amid rising imports of gold and oil in the country while foreign money inflows remained sluggish. Subbarao, speaking at the 10th annual convocation of the Indira Gandhi Institute of

FinMin may widen scope of source-based taxation to plug revenue leakages: Report

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Aiming to plug the revenue leakages in the system, the finance ministry may widen the scope of tax collection at source (TCS) to include transactions like real estate, foreign tours and mutual funds, besides credit card payments and luxury spends, among others, said a media report. The move, said experts, will improve reporting mechanism for transacti

FM to discus tax benefits to companies for CSR expenditures after Budget: Sachin Pilot

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Finance Ministry will look at the option of providing tax benefits for expenditure on CSR (Corporate Social Responsibility) activities by companies after the Budget, Corporate Affairs Minister Sachin Pilot said. “Now, I think, post Budget, the Finance Ministry will take a view (on whether) it will be taken as an expense or not. But for all purpo

India’s headline inflation at above 7% is “still high”: D Subbarao

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India’s headline inflation at above 7 per cent mark is “still high”, said Reserve Bank of India (RBI) governor D Subbarao on Monday, signaling that the central bank is still very much concerned about rising prices even after announcing a repo rate cut last month. Subbarao, speaking at an academic institution, said that inflation has

Why FM should not impose CTT in Budget 2013

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Paying taxes is good because it shows that we’re employed and civilized. We must pay taxes. But asking for more than what is necessary is just a legalized robbery. Now that the Budget is approaching, talks have resurfaced around Commodities Transaction Tax (CTT). The proposed tax is a retrograde one as it would distort the market which is still

FIIs hiked exposure in blue-chips in Q3 FY13 as Indian growth story

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Notwithstanding the ongoing slowdown in Asia’s third biggest economy, Foreign Institutional Investors (FIIs) continue to bet big on the long-term India growth story as they poured money into stocks last quarter. FIIs raised their equity stake in 29 of the 30 Sensex companies in the 31 December 2012 ended quarter from the previous quarter, pumpin

Citigroup cuts India’s FY13 growth estimate to 5.7%

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Just days after the Indian government gave a bleak growth estimate for Asia’s third biggest economy for this fiscal, US banking and investment giant Citigroup has also downwardly revised its growth forecast for the Indian economy, adding pressure on the Manmohan Singh led UPA government to continue with its reform spree to help bring the econom

Will Budget 2013-14 seek to promote equity culture in India?

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Concerned about the dwindling retail participation in the Indian stock markets, the Finance Ministry is all set to unveil some key reforms in the upcoming Union Budget 2013-14 in a bid to help bolster equity culture in India. Participation among retail investors in the Indian equity markets is significantly lower than other nations such as the US with

FM urges banks to play complimentary role for infrastructure funding

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Stating that Infrastructure development is important for growth of economy, Finance Minister P Chidambaram asked banks to play a complimentary role to make the Infrastructure Debt Funds (IDFs) a success. Speaking at the launch of the IDF of IL&FS Financial Services, FM said, “I would appeal to banks that please recognise the importance of th

CII urges govt to extend tax benefits for M&As in all sectors

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With just few days left in Union Budget 2013, Industry apex body CII on Sunday urged the government to extend tax benefits pertaining to mergers and amalgamations (M&As) to all businesses such as telecom, sports, IT and entertainment. “The move will help industry to reorganise and restructure operations in sync with the rapidity of changes t

Now, FinMin pegs GDP growth at 5.5%

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The finance ministry has now pegged GDP growth rate for the current fiscal at 5.5 per cent, rejecting the forecasts of Central Statistical Office (CSO) which recently projected it at a decade-low level of 5 per cent and raised concerns that Asia’s third largest economy was far from a turnaround. The CSO estimates released on Thursday forecasted only a 5 per cent

Rail Minister not ruling out another fare hike in upcoming rail budget: Report

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Travelling within the country seems to be getting even dearer from next fiscal. Within days after rail ministry announced hike in fares, the rail minister PK Bansal is not ruling out another round of fare hike in budget amid rising diesel costs, said a media report. With the decision to allow PMCs to raise diesel prices gradually, analysts have said t

Govt may levy surcharge on income above Rs 1 cr: Report

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The government is planning to introduce surcharge in the income-tax system and reports said that it has been considering bringing individuals with taxable income of over Rs 1 crore within its ambit. A surcharge is an additional levy on the tax that an individual pays. For example: If some is paying tax of Rs 30 lakh on an income of Rs 1 crore and then

India's per capita income up 11.7% to Rs 5,729 per month

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The living standard of Indians or per capita income has shot up 11.7 per cent to Rs 5,729 per month in 2012-13 at current prices, compared with Rs 5,130 in the previous fiscal. However, the rate of growth of per capita income for the current fiscal is lower than the previous fiscal when it grew by 13.7 per cent. According to an official release by the

FDI could surge with progressive & investment friendly policies: Reports

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All India needs is a progressive and investment friendly policy framework to attract foreign investors who see tremendous scope for growth in the country. SP Kothari, Deputy Dean of MIT-Sloan School of Management said, “If we want to take the FDI from the current USD 20-30 billion to about USD 250 billion a year, the investors making this invest

FY’13 GDP advance estimates below expectations; reforms will continue: FinMin

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The finance ministry today said CSO’s advance estimates for FY’13 GDP growth at 5 per cent were far lower than expectations and the government will continue to roll out reforms to revive growth. “The CSO's growth estimate, no doubt, is below what we had expected it to be. We are keeping a watch on the situation. We have taken and

Rangarajan disappointed with advance estimates of FY’13 GDP but hopeful of upward revision

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The PMEAC Chairman C Rangarajan expressed disappointment over the recently released advanced estimates of FY’13 GDP, which pegs growth at surprisingly low level of 5 per cent, while staying hopeful of upward revision in the final figures. The advance estimates released by Ministry of Statistics on Thursday pegged GDP growth for 2012-13 at 5 per