Byapaar.com -The Indian Business Blog

My exam is over- but my PCP (Personal Contact Program) for second year will start tomorrow and will continue till 27th. Still I’ll keep blogging regularly here.So no problem.

The other day I was browsing the net and chanced upon a site called UK Business For Sale. To be frank I have never heard of the word business sales as I live in a remote place in India. I do frequent to big cities for this or that reason but still have never came across it.

Let me be more forthcoming! I believe this is a totally new concept in India.

So what is this concept?

Simple! There are some agencies that broker between buyer and sellers of start-ups or established businesses. The agencies have people as members from both groups – buyers and sellers. To be more precise, suppose I own an established business that is making reasonable profit. But there is something I found which seems more interesting and appealing to me. In this situation I want to sell my current business so that I can venture into the new domain of my interest and also can fully concentrate on it. Instead of finding the suitable buyer myself, I can hire an agency that will do the needful for me for a specific amount of fee. This will save me lots of time, energy not to mention the convenience factor. In India, I saw this in real estate rector but not in business establishment sector.

The concept of organized business dealing has been going on in developed countries for long. But I don’t know its presence in other developing countries where most business sectors are not organized. But this UK Business For Sale website has opened a whole new world to me. After some more search and research I have found that the Business For Sale brokerage in the UK is an industry in itself. They don’t only use the conventional marketing but are offering their services through the web. Hopefully, this post of mine will be read by concerned persons and bring in the concept here and start a new business.

Good luck to them.

The Union Budget for the financial year 2008-09 has brought few smiles on the faces of middle class people. It is clear that, the UPA government has an eye for early national pools -may be by end of this year and hence there is lots of cheers for the all powerful middle class.

The Finance Minister has not only raised the taxable income level from that of last year, but it has also offered some schemes to lessen tax liability. For example, if someone is earning a monthly income of Rs. 25,00/month, his current tax liability is around Rs. 3,347.50/month. In the new taxation syste, the liability for the same income will be Rs. 1,287.50/month and that too without claiming any tax benefit on offer.

So how to save this extra money?

The best way, according to analysts is to invest in real estate. Due to higher interest rates - the rela estate market has been going through aprice adjustment or correctional phase over the last few months. So price is quite stable at the moment. The new budget is not offering any extra benefit under Sec. 80 C or Sec 80 D - but due to lower tax liability, the taxpayer can easily utilize the fund judiciously.

The Sec. 80 C has been facilitating tax benefits for certain saving instruments including repayment of home loans. But only Rs. 1,00,000/annum can be accounted for this purpose. One can also claim benefit for Rs.1,50,000/annum as repayment of interest for the housing loan. So thats a cool benefit for Rs. 2,50,000/annum.

Another attractive factor in this regard is that, some banks are already lowering interest rates for housing loans and it seems that, the home loan iterest rate might come down further due to global meltdown trend.

Now, we may consider how one gains through investment in real estate properties. Studies have shown that value of Indian real estate properties has seen a compunded annual growth rate of around 15-18 percent. S, the value is always increasing.

Just one point to be cautious is that, the government is giving these sops for personal or live in properties only. If some one buys a property and sells it within next five years, then he/she will have to pay taxes for all these years.

If you have a house and are pondering at what to do - just go ahead, take home loans, buy a nice property and rent it out. The rent will help you pay the EMI (Easy Monthly Installment) and by the time you are ready to settle down, your home loan liability will be NIL. You can enjoy your superannuiation benefits for your recreations. Just remember one thing - the tax implications in this case will have to be worked out after deducting the rent you get. Stil you are the winer.

The Indian Finance Ministry has recently announced a ten year tax holiday for developers f industrial parks set up during April 1, 2006 to March 9, 2009. The incentive is primarily aimed at providing a boost to India’s industrial infrastructure. The Industrial Development Scheme 2008 notified by the Central Board of Direct Taxes (CBDT) held that the industrial park developers would be eligible for 100 percent tax deduction which would be provided for ten out of fifteen consecutive assessment years after the commencement of operation of such units. Under the scheme, an industrial park should have at least 30 units. To avail of the tax benefit, the industrial park would have to be owned by a single undertaking. The area allocated or to be allocated to industrial units would have to be at least 90 percent of the allocated area. Ministry sources clarified that such industrial parks developed operated or maintained during 2006-07 would have 2007-08 as tax assessment year.

India is emerging as a favorite investment destination for top Japanese companies as large conglomerates from the far-eastern country begin to diversify away from neighboring China, their earlier hotspot. While China still maintains the top position as an investment destination, a lesser proportion of companies (68 percent) China as a promising country. China has seen a decline for four straight years since its peak in 200. India ranked second among Japanese companies as a promising country for investment. By industry, automobile-related companies saw a particularly positive stance. In fact India ranked highest among Japanese companies as promising country for doing business in the long term, ahead of China for the first time since the survey has been conducted for the last 18 years