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Showing posts from February, 2010

Budget 2010: What the FM is likely to do!

Despite the fact that the annual budgetary exercise has slowly been losing its significance, Budget 2010-11 is seen to be extremely significant.Finance Minister Pranab Mukherjee has his hands full. He faces a tough challenge as he has to try and present a balanced Budget; one that will appease the aam aadmi and also not hamper growth.And some of the reasons why the Budget 2010 will be extremely significant the impending are:The Direct Taxes Code might come into force from the next fiscal year. The government is struggling to keep inflation and food price rise under control. The fiscal deficit is already at a distressing high. So should he push for fiscal consolidation or go in for big social sector and other spending? Should he keep subsidies intact or should he bite the bullet and go in for tough reforms? Should he push for faster growth without upsetting the common man, while still removing the excess liquidity in the system? Should he continue with or withdraw the economic stimulus…

LTC when both husband and wife are Government servants

Leave Travel Concession: when both husband and wife are Government servants and are residing together. reg.
According to the definition of family as given under rule 4, which is applicable, in travel inter alia, for the purpose of admissibility of LTC, the family of a Government servant includes wife or husband, as the case may be, residing with the Government servant and children residing with and wholly dependent upon the Govt. servant. In addition, it includes the parents, sisters and minor brothers, if residing with and wholly dependent upon the Government servant.
According to the existing position where both husband and wife are Govt. servants and are residing together, they constitute one family unit for the purpose of LTC and only one of them can claim this concession and the other spouse travels as a member of his/her family.
In such a case, the Govt. servants are required to make a joint declaration of a common hometown, which can be the hometown of either of the spo…

State Bank of India on hiring spree, to recruit 20k

The country's largest public sector lender State Bank of India is likely to carry on its hiring spree to the next fiscal as it plans to recruit around 15,000 -20,000 people in FY11, its chairman O P Bhatt said on Saturday.
"We have recruited 25,000 employees this year. Next year also, it would be somewhere around this number...we may recruit around 15,000-20,000 people," O P Bhatt said on the sidelines of an event here.
In 2008-09, the bank recruited 27,000 staff across various verticals, Bhatt said.
Earlier this month, Bhatt had said that the bank plans to induct around 2,000 probationary officers for rural business in FY10. In addition, the bank would hire 2,500 probationary officers.
SBI is in the process of inducting 11,000 clerks for marketing, banking and advisory services and 481 officers for marketing and recovery (rural) and technical officers (farm sector).
After launching an e-learning package of Indian Institute of Banking and Finance here, Bhat…

Will Budget 2010 have respite for the 'Aam Aadmi'?

The Aam Aadmi's expectations from Budget 2010 are high given the ever rising inflation and wholesale price index (WPI). An appropriate increase in the income tax slab could probably cushion the impact of the increased inflation and WPI and could bring about some relief. An enhancement in the basic exemption limit to a realistic level would at least bring a small smile on the face of the common man!
As of today, self-employed people are better off than salaried employees as they are entitled to the deduction for expenditure incurred to earn the income, whereas there are no prescribed deductions available for salaried employees. Therefore, it is expected that this budget would at least provide for a standard deduction to cover certain expenditure.
Given the current scenario; difficulties increase for the employed class people due to double taxation in case of contribution to the retirement pension schemes. Employees would be paying taxes not only at the time of contribution (i…

Direct tax: no great expectations

It is that time of the year when we gear up and submit suggestions to the finance minister for his consideration in the upcoming budget. From the direct tax perspective, there are no high expectations from the budget this year because of the much-awaited Direct Tax Code proposed to be effective from April 1, 2011. The current tax regime is just a stopgap arrangement for this year and, thus, all amendments in the present law will be short-lived.From the direct tax perspective, a few aspects that the common man may look forward in the upcoming budget are:Rationalisation of the income tax exemption limit and tax slabs: In India, the income level on which tax at a maximum marginal rate is levied, is far lower compared with a large number of developing and emerging economies. On the other hand, the prices of essential commodities are skyrocketing. Therefore, relief must be provided by attempting to reduce the prices and also by ensuring more disposable income to counter the problem of infl…

INCOME TAX – FREQUENTLY ASKED QUESTIONS

INCOME TAX – QUESTIONS AND ANSWERS :-
What is an Assessment Year?
It is the twelve-month period 1st April to 31st March immediately following the previous year [refer answer-4]. In the Assessment year a person files his return for the income earned in the previous year. For example for FY:2006-07 the AY is 2007-08.
What does the Income Tax Department consider as income?
The word Income has a very broad and inclusive meaning. In case of a salaried person, all that is received from an employer in cash, kind or as a facility is considered as income. For a businessman, his net profits will constitute income. Income may also flow from investments in the form of Interest, Dividend, and Commission etc. Infect the Income Tax Act does not differentiate between legal and illegal income for purpose of taxation. Under the Act, all incomes earned by persons are classified into 5 different heads, such as:
Income from Salary
Income from House property
Income from Business or Prof…

Muslim Govt employee’s second marriage illegal: Supreme Court

A ruling by the Supreme Court, upholding as illegal the second marriage by a Muslim employee of Rajasthan Government without divorcing first wife, has kicked off a major controversy. Muslim clerics and leaders say this judgement would jeopardise the right of Muslims to have more than one marriage under the Muslim Personal Law.A division bench of the Supreme Court, comprising Justice VS Sirpurkar and Justice Aftab Alam, on January 25 dismissed the petition of Liyakat Ali, a former constable in the Rajasthan Police, challenging the judgement of the Rajasthan High Court, which said that under the Rajasthan Civil Services (conduct) Rules 1971 no Government employee, irrespective of his or her religion, is allowed to marry second time without the permission from the Government.The State Government had terminated the services of Ali about 23 years ago on the ground that he had married second time without divorcing his first wife and without taking prior permission.Ali has been contesting in…

SSC for single application for nearly 30 posts, expects 30 lakh applicants for 20,000 jobs

The Staff Selection Commission (SSC) has planned a three-tier selection process based on a single application for nearly 30 posts, where separate examinations used to be conducted till now.On the recommendation of the Second Administration Commission headed by Veerappa Moily, the proposal to conduct a single examination based on a single application was approved by the Department of Personnel and Training last month, Commission chairman NK Raghupathy told reporters here today.The examination would be based on objective type multiple type question. The Commission is also putting in place a process for online submission of applications though the paper-based offline application would be continued this time, he said. There are also plans to shift to online-testing platform in three years.As part of the new scheme, candidates will be advised to give option, in order of priority, for various group of posts included in the examination.The new pattern of examination will reduce the period of…