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Economy grew only 5.5% in Q2: FM
Rupee expected to recoup in 2-3 months: FinMin
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Economy grew only 5.5% in Q2: FM
A sub-6 per cent growth rate, for the third quarter in a row, will add pressure on the government to boost economic activity by fast-tracking stalled tax and regulatory reforms. It will also bolster calls for an interest rate cut by the country's central bank, which has so far ruled out any before January, citing high inflation. "When growth declines to 5.5 percent as it has in the first quarter (April-June) of this financial year and when the growth is likely to be around 5.5 per cent in the second quarter of this financial year, it goes without saying we are facing a difficult situation," Chidambaram told a bankers' conference. "We have to overcome this difficult situation through innovation, finding new ways of increasing production of good and services and finding new ways to help the poor of the country." India, Asia's third-largest economy, once boasted near double-digit growth but has been hard hit by the global economic downturn and a series of policy missteps. Global rating agencies have threatened to downgrade India's sovereign credit rating to junk if it fails to put its fiscal house in order. BANK CONSOLIDATION: Chidambaram also brought back into focus his old plan to merge state-owned banks so that the country had “big world-size” banks. “We shouldn’t fear consolidation. I know there’s a lot of anxiety but ultimately some consolidation will have to take place in the banking system in this country. We must create at least two or three world-size banks,” he said. Chidambaram said nationalized banks should come up with their own growth models depending upon their size, strength and operational culture. He also made it clear to the RBI it had the powers to issue new bank licences and expressed the hope it would take the process forward "appreciating" the government's position. |
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Rupee expected to recoup in 2-3 months: FinMin
"We are quite hopeful that the rupee will strengthen in the next two to three months," economic affairs secretary in the finance ministry Arvind Mayaram told reporters at the concluding day of the two-day Asia Securities Forum here. Mayaram hoped the currency will appreciate once the economy is back on an upward curve without any effective intervention by the Reserve Bank of India. "I don't think the RBI would have to effectively intervene for strengthening the rupee. We believe, once the slowdown bottoms out, the rupee will strengthen". The rupee lost nearly 4 per cent against the dollar in November alone, becoming the worst loser among the leading global currencies for the month. Last year, the Indian unit was the second worst performer after the Brazilian real losing close to 20 per cent. On the back of reform initiatives on September 14 and October 5, the rupee had rallied 5.1% to close at 51.37 to the dollar. Since April, the rupee has fallen by more than 6%, and it closed on Friday at 55.5350/5450 a dollar, a 10-week low. In 2010-11, the currency appreciated by 1.1%, but slid by more than 12% in 2011-12 in the wake of the European crisis. Rejecting reports of the government slipping on the fiscal deficit target of 5.3 per cent for FY13, Mayaram exuded confidence of meeting the target on the back of successful beginning of the Rs 30,000-crore divestment programme yesterday wherein the government mopped up Rs 808 crore from a 5.6 per cent stake sale in Hindustan Copper. "Let me reiterate, the government is fully committed to meet its fiscal deficit target of 5.3%. We’re also looking at measures to constrain expenditure”, he added.
— PTI |
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investor
guidance
— Swarup There is no limit on the amount of cash gifts (through normal banking channels) that one can give to one's close relatives. Of course, the gift must be legal and if required the donor has to prove the source of funds. In cases of gifts to close relatives, the entire amount is taxfree, both for the donor as well as for the recipient. Also, there is no limit as such on the number of times such gifts can be given. While preparing a gift deed is not necessary, having an affidavit that puts down the gift transaction in writing will be helpful. I am a US citizen. Earlier this year I opened an NRE (nonresident external) rupee bank account providing 9.2% taxfree interest for three years. At the end of the year when I file my tax returns in the US, am I supposed to include the investment in India? Also, do I have to file tax returns in India even though it is taxfree income? — Rajan Legally, we can only answer questions relating to tax laws and foreign exchange rules pertaining to India. However, note that normally a citizen of any country is liable to pay tax on his global income. Also, just because such income has been accorded taxfree status in the source country, it may not continue to be tax exempt as per the rules of the country of residence. You do not have to file your returns in India as the income from your NRE account is tax exempt. Basically, unless and until your taxable income in India is over Rs 200,000, you do not have to file returns there. |
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Pune/Mumbai, November 24
Mumbai, November 24
What is the maximum amount of cash one can gift to his/her close relatives (say father, mother, son, and daughter) during the financial year, and is any gift tax applicable? How many times can one give such a gift during one's lifetime and is it necessary to prepare a gift deed?
