VRITTAM (20 OCT 2013 - 26 OCT 2013)

THE WEEKLY FINANCIAL NEWS

Festive season: Discounts, freebies galore as cos try to woo consumers

As the festive season sales peaks, consumers are spoilt for choices as companies and service providers flood the market with discount and freebies. Consumer durables makers have come with offers as assured gifts, cash backs and special packages as free installation, discount on annual maintenance cost, free insurance etc to boost up their sales festive season. South Korean major LG is storming the market with offers like free 3D Blue Ray Home Theater with selected high end televisions, free LED TV 24 and 22 inch, with the purchase of designated high end television models and an assured Magic Motion Remote with the purchase of selected smart TV models.

 

Consumer durables makers have come with offers as assured gifts, cash backs and special packages as free installation etc to boost up their sales festive season.

India to build $300 billion forex chest to counter a slimmer QE figure

India hopes to have a $300-billion war chest ready by the end of the year as a frontline defence against tapering by the US Federal Reserve, which is now expected to begin sometime early next year. The finance ministry expects $30 billion to be added to its foreign exchange reserves, currently estimated at $251 billion, by the end of November.

Post offices, cooperative banks the next Amul success story in banking?

When there are nearly 96,000 co-operative banks spread over thousands of villages and post offices located in 2.38 lakh panchayats, is there a need for a fresh set of institutions to harness the savings of people in rural India? This may be the turn of financial services to have its own Amul, the milk co-operative that has delivered prosperity to millions of rural folk, and proved that it could still be a business model.

US QE tapering: FM P Chidambaram wants regulators to take preventive steps

Finance Minister P Chidambaram today asked financial sector regulators, including RBI and Sebi, to take preventive steps to neutralise the impact of US Federal Reserve's monetary stimulus tapering that is likely early next year. Chidambaram, according to sources, asked regulators at FSDC meeting to work out preventive measures. The Financial Stability and Development Council (FSDC) members include heads of regulatory bodies like RBI, Sebi and IRDA. 

Tata-Singapore Airlines aviation venture gets FIPB nod without any riders

The Foreign Investment Promotion Board (FIPB) has approved Tata group's proposal to set up a full service airline in partnership with Singapore Airlines, paving the runway for the high-profile aviation venture to take to the skies in the months ahead. The board has not imposed any rider on the venture. All departments and ministries had cleared the proposal. An earlier proposal by the Tata group to set up a low-cost airline together with Malaysia's Air Asia had encountered some problems a few months ago. 

Final costs of US shutdown could tally in billions

The government shutdown that ended this week will cost the U.S. economy several billion dollars, according to estimates by economic research firms. But the affiliated damage - like the undermining of consumer and business confidence - will be far greater, economists said, especially combined with the financial effects of the near-breach of the country's statutory debt ceiling. When the federal government shut down Oct. 1, permit offices across the country stopped accepting fees, contractors stopped receiving checks and research projects were put on hold. Such disruptions come with a price tag, although it will be small in the context of the $3.5 trillion the federal government spends every year.

Income Tax department puts HRA exemption under scanner

As if the additional information required in tax returns was not enough, there's more bad news for tax evaders. Salaried taxpayers who claim HRA exemption will now have to report their landlord's PAN if the total rent in a year exceeds Rs 1 lakh. "In case the landlord does not have a PAN, he must submit a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee," says a circular issued by the Central Board of Direct Taxes last week.Till now, if the total rent paid was less than Rs 15,000 a month, there was no need to submit the landlord's PAN details. The new rule effectively reduces this limit to Rs 8,333 a month.

Special RBI measures got India $ 9.6 bn in forex: P Chidambaram

India has received over nine billion dollars from two foreign schemes, which were announced in September to attract foreign funds and help the country to bridge the widening current account deficit(CAD). Soon after taking over as RBI Governor on September 4, Raghuram Rajan had announced opening of a swap window facility to encourage banks to lure NRI funds. 
Under the facility, banks are permitted to swap fresh FCNR(B) dollar funds, mobilised for a minimum tenor of three years, at a fixed rate of 3.5 per cent per annum for the tenor of the deposit. Also, he had relaxed norms for banks and allowed them to raise capital abroad to the tune of 100 per cent of their Tier I (equity) capital. tic staff

India's mobile economy to contribute $400 billion to GDP by 2020

Mobile economy in India, world's second largest market by subscribers, will contribute around USD 400 billion to the country's GDP and create 4.1 million jobs by 2020, a report by the global mobile operators industry body GSMA said. Mobile economy will also lead to investments of USD 9 billion in telecom infrastructure, said the 'Mobile Economy India 2013' report prepared in collaboration with consulting firm Boston Consulting Group. 

Government for minimum 6 pc of vehicle price as registration tax

The government has favoured a levy of a minimum 6 per cent of the sale price of the vehicle as a lifetime tax by various states. Ministry of Road Transport and Highways recommended all the states should levy a lifetime tax at floor rate of 6 per cent of the sale price of the 2-wheelers, cars and LMVs ( light motor vehicles).

EXPERT VIEW

Gold coin not a gift option anymore this Diwali
By Sutanuka Ghosal, ET Bureau

 

A SNEAK PEAK INTO THE WORLD OF FINANCE

To know the five mistakes people make while setting financial goals, click on the slideshow below.