Byapaar.com -The Indian Business Blog

The general notion is that it feels great to be famous – to be someone! But sometimes it is great too if you are nobody like me who works as Asst. Teacher in a semi-govt. school in a semi-urban locality in one of the remotest and non-descript part of the country. Why do I feel great? Because I don’t have to go through the arduous task of filling tax returns every year like my colleagues do! Yes you read it right! I don’t have to pay income taxes (I belong a special community in a special area where nobody from my community has to pay) although my income from regular job and online is roughly around Rs. 500,000 per annum. I don’t even have a (PAN) card! But from what I see my colleagues go through, I reckon it is not funny to file returns especially as every year there are some changes made in tax policies by the government. So, I find my mates go around finding the best and cheapest tax accountant available in the town. Professional consultation is not always for just filling of returns, but salaried individuals with limited income also need to exploit the different schemes on offer by the government to save some paisa for the future and thereby get tax rebates.

As I have avid interest in economic and business affairs, I do read lots of finance and business related papers and journals. The other day I found one of the magazines (Outlook Money) that I subscribe to enclose a little pocket book titled “The Complete Tax Guide for 2008-09” which is really a handy item for all normal tax-payers. It gives a complete guide from calculating incomes to deductions, computation and tax planning, clubbing of income to filing of returns. I believe most net junkies don’t have time to read books anymore. While business houses can afford to hire chartered accountant firms for audit services, individuals can save lots of money if they have basic ideas about tax laws and tax saving schemes. Here, I’ll write what is advised on that handy book about “tax saving strategies during your lifetime.”

The budget of 2008 had much to offer to the salaried tax payers of the country. The smooth passing of the Finance Bill with no changes to the proposals made can bring in showers this financial year. There are two ways in which tax payers will benefit. One, the threshold level of income tax has gone up. This means that a greater part of the income come under zero tax status.

Two, the tax slabs have also been raised. Currently the maximum marginal rate of tax of 30 percent is applicable from the income level of Rs. 250,000, this now stands doubled at Rs. 500,000 for the next financial year. This means an under 65 year old male tax payer with a gross Read the rest of this entry »

It has been six long years since India and South East Asian trade block known as ASEAN started negotiations on free trade in goods (TIG). Finally it has concluded in a meeting of economic ministers held in Singapore. The deal is up for final sign in a summit to be held in next December in Bangkok, Thailand.
Indian industry minister Kamal Nath has described the conclusion of the TIG deal as a “key regional milestone” that will create a European Union like open market for goods. It has even bigger prospect than the EU with booming markets and an estimated 1.5 billion people waiting to be conquered by consumerism.
Kamal Nath says,

“It took six years for India to understand the sensibilities of Asean, and for the Asean to understand the sensitivities of Indian.”

Actually, the deal was supposed to be concluded last year but due to differences on the list of products to be excluded, it took one more year. Now that it has been finalized, both parties will remove import duties on 71 percent of products by December, 2012 and additional nine percent by 2015. The ten percent which have been kept under sensitive list will also see duties brought down to five percent. The deal also has provisions for fast track reduction of import duties on five products which are so vital in trade relations. These goods are coffee, tea, crude and refined palm oil and pepper. Currently, trade volume between India and Asean is to the tune of $38 billion which is to go up to $50 billion by 2010. At present India holds seventh position in Asean’s overall trade and the group holds 9.8 percent of India’s global trade volume.
According to a joint press release, both parties also resolved to negotiation on similar agreements in services and investments sector.

“So the potential for enhanced economic engagement between Asean and India is profound.”

Mr Nath says. The question is can this new economic block create same impact as that of EU? It certainly has potentials with fast growing economies and an ever increasing group of middle class flush with disposable income. But my personal opinion is it still has long way to go. First, China must be included in the group so as to have a major global impact. Secondly, unlike the EU, the group does not have a single monetary system. Still, both the parties will benefit hugely with this pact and more so if they could do the same in other sectors too.