Plan and Policy

Plan & Policy

ITR filings grow 25% to 2.82cr

The number of income-tax returns (ITR) for 2016-17 has grown by 25 per cent to 2.82 crore, the tax department said on Monday. The growth in ITRs filed by individuals is 25.3 per cent with over 2.79 crore returns having been received up to August 5 against over 2.22 crore returns filed in the corresponding period of the last financial year.

“As a result of demonetisation and ‘operation clean money’, there is a substantial increase in the number of ITRs filed,” an official statement said.

MPC split flags flawed inflation model of RBI

It took six meetings for cracks to become visible within India’s powerful interest rate-setting panel.

Following a series of consensus voting and bland statements, there was open dissent on the monetary policy committee in June, which only worsened last week when a member of the Reserve Bank of India’s economic research wing broke ranks for the first time with his bosses, governor Urjit Patel and deputy governor Viral Acharya.

The 5-1 vote for a cut isolated career central banker Michael Patra against the relative newcomers on the year-old MPC.

Import of gold articles set to spurt to 10-15 tonne in August

India's gold article imports are set to more than double in August compared to previous month after the GST Council failed to deliberate over duty free import related issue at its meeting on August 5, traders said.

"We believe that during August, imports of gold articles from ASEAN under FTA will easily rise to 10-15 tonne, in order to meet festive demand," said Kumar Jain, vice-president of Mumbai Jewellers Association. Import of gold articles in India, from ASEAN nations under Free Trade Agreement (FTA), was five tonne in July, traders said.

Gold demand up 37 per cent on pre-GST sales

The demand for gold jumped 37 per cent in June quarter due to pre-GST sales, but World Gold Council (WGC) has not revised its annual demand estimate as it thinks GST-related confusion will continue to be there in the market for some more time.

In the second quarter of 2017, India consumed 167.4 tonnes as compared to 122.1 tonnes in last year’s second quarter. Jewellery demand was up by 41 per cent at 126.7 tonnes, while investment demand was up by 26 per cent to 40.7 tonnes.

Banks reluctant to lower deposit rates

Sate-run banks have turned reluctant to cut savings bank deposit rate fearing a fall in current account and savings accounts (CASA), a source of cheap funds for lenders, which helps to boost net interest margin, analysts said.

Growing competition from private banks for a share of savings bank deposits and new entrants such as small finance banks and payment banks, which are offering attractive rates on float funds are causing bankers the jitters.

RBI should've cut rate by 75 bps

Senior Indian government officials say the Reserve Bank of India should have cut interest rates more aggressively on Wednesday, signalling fresh tensions between New Delhi and the Mumbai-based central bank on how to revive economic growth and create jobs.

Strengthening Re closes at new 2-yr high against dollar

The Indian rupee continued to strengthen against the US dollar on Thursday closing at a fresh two-year high as foreign investors remained bullish on India expecting real interest rates to remain high. The US dollar too remained weak on account of uncertainties regarding further rate hike by the US Federal Reserve.

The rupee opened at 63.65 a dollar against its previous close at 63.70, a level last seen on July 22, 2015. Rupee closed at 63.64, up 0.02 per cent from its previous close.

Rate cut by 25 bps, neutral stance stays

With the Reserve Bank of India (RBI) continuing with its neutral stance in its third bi-monthly monetary policy on Wednesday, the rupee appreciated by 37 paise to close at more than two-year high of 63.70 against the dollar.

Yields on 10-yr G-secs rise to 6.48%; no major shakeup in near term

The sovereign bonds declined after the Monetary Policy Committee (MPC) of RBI cut interest rates as widely expected while maintaining its neutral policy stance.

The yield on government notes due May 2027 rose to as high as 6.48 per cent before closing at 6.46 per cent in Mumbai, two basis points (bps) higher for the day.

Despite Patel’s nudge, lending rates may not fall this festival season

Prospective borrowers waiting for home loans and car loans to get further cheap during the upcoming festival season may be in for some disappointment. While the Reserve Bank of India (RBI) cut its repo rate by 25 basis points on Wednesday, bankers remained non-committal on lowering lending rates. This comes despite RBI governor Urjit Patel nudging banks to pass on the entire benefit of its rate cuts to the customers.