Plan and Policy

Plan & Policy

I-T form made more simple; e-filing to start from April

A crisp income tax form for salaried individuals will be introduced from April 1, doing away with some columns to simplify the filing of returns.
Individuals with salary and interest income will have to fill fewer columns as some of these for claiming income deductions have been clubbed in ITR1 form called ‘Sahaj’.
In the form for assessment year 2017-18, deductions claimed under different sections of chapter VIA have been removed and only mostly used ones have been included.

Fund flows shore up rupee to 17-mth high of 64.86

Buoyed steady flow of liquidity from foreign institutional investors (FIIs), the rupee on Wednesday rose to a fresh 17-month high of 64.86 against dollar -- a level last seen on October 23, 2015.
Forex experts, however, feel the rally in rupee could be short-lived and they expect the domestic unit to return to 68-69 levels by December.

Cash supply to impact asset classes

Demonetisation disrupted the cash ecosystem in which some of the niche Non-Banking Finance Companies (NBFCs) operate. While the third quarter ended December 16 results was a mixed bag for NBFCs (even though they were better than anticipated), the real impact from demonetisation would be seen in the results of the fourth quarter ended March 31, said analysts.

After banks, govt looks at merging insurance PSUs

The government’s plan to list four state-owned insurers and one reinsurer might have to wait as it looks at the possibility of consolidation. Sources in department of investment and public asset management (Dipam) said the government is exploring the possibility of the merger, as at least three general insurance PSUs are not in a position to issue initial public offer (IPO) anytime soon.

Rupee rally could be short-lived: experts

The rupee strengthened for the second consecutive session to hit a fresh 16-month high against the US dollar on the eve of a widely anticipated US Federal Reserve rate hike. Investor sentiments have been boosted after results over the weekend showed that the ruling Bharatiya Janata Party (BJP) scored an overwhelming win in Uttar Pradesh. The victory was widely seen as a strong endorsement of Prime Minister Narendra Modi's agenda. However surprisingly, traders said that the Reserve Bank of India remained out of action, letting the demand and supply dynamics decide the rupee level.

Rupee surges by 78 paise

In sync with a surge in stocks, the rupee on Tuesday appreciated by 78 paise against the US dollar. The domestic currency closed at 16-month high of 65.81, a level last seen on November 6, 2015. The rupee had a stellar performance so far this year, as it is the third-best performing currency in Asia. Only South Korean won and Taiwanese dollar have done better than rupee. Forex dealers said there was heavy dollar unwinding from speculative traders and exporters tracking stock markets.
The scale of BJP’win in Uttar Pradesh sparked a 490-point rally in stock markets.

DeMo has reinforced faith in gold: WGC

Demonetisation has tested people’s faith in fiat currencies and in turn reinforced their faith in gold, finds World Gold Council.
Fiat currencies are those not backed by a physical commodity, like gold. All currencies are now fiat currencies, including the rupee and the dollar.
WGC had conducted a consumer research in Q1 2016 in which 63 per cent of respondents agreed with the statement “I trust gold more than the currencies of countries”. Seventy-three per cent of respondents had agreed that gold makes them feel secure for the long-term.

SBI unyielding on minimum balance fine

There seems to be no respite for crores of savings bank account holders of State Bank of India (SBI), as the lender remains firm on its decision to levy penalties for non-maintenance of minimum balance in savings accounts. The bank’s new pretext is that the fine charged would be used to fund the cost it incurs on no-frills Jan Dhan accounts.
SBI chairman Arundhati Bhattacharya on Wednesday justified the move, saying the bank needs to impose some charges to balance the “burden” of managing a large number of no-frills Jan Dhan accounts.

LIC’s bad loans mount in Apr-Dec 16 Rs 18,221 crore

While bad loans of banks have attracted much attention, not many are aware stressed assets of the Life Insurance Corporation of India (LIC), the public sector insurance behemoth, too are rising consistently.
And it’s not just companies that have defaulted on their loans, but also the state government entities and municipal corporations.

Centre asks SBI to review minimum balance penalty

Amidst public uproar against banks proposing steep increase in cash transaction charges, the government has asked the country’s largest lender SBI to reconsider its decision to levy penalty for non-maintenance of minimum balance in accounts starting April 1.
The move to increase the penalty is expected to impact over 31 crore savings bank account holders.
Finance ministry sources said the government also wants the public sector bank to rethink its proposed charges on cash deposits and withdrawals beyond specified limits.