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Friday, July 18, 2008

Character of Left parties - Ridiculous -On Indo-US Deal

Left Parties (CPM and associates) are playing a spoilsport in Indo - US Nuclear Deal. Which will benefit India's Power crises and can bring an end to power crises for whole country.
but Left parties are against indian interests and so they withdrew their support to UPA government as they are against Indo- US deals.

Actually Left parties are funny parties who don't know how to work for interests of the country. by seeing past of all the Comminists parties it is clear that they are always against any deal with United States of America and India, whatso ever be the motive of the deal.

I mean to say if there is a deal to take place between Indian Government and USA then Left parties would always be against them. Instead if the same type of deal is taking place between India and any other country(China or UK especially)then Left parties would have never opposed that deal under any circumstance.

In previous general elections Left parties provided support to Congress government to stop BJP from making a government at center and in 2008 they withdrew support from UPA government to stop them to finalize the INDO - US Nuclear Deal, they have no moral values and are surely not thinking in the interest of indian Subcontinent. If they have understood each and every aspect of this deal then there is no reason to act against this deal which would end Power crises in india and would enter India's name along with likes of US, UK, Russia, China etc which are developed Countries. So here the question arises

Are Left parties against Development of India as a country????

Looking at present scenario of indian politics and biased opinion of left parties on Indo US Nuclear deal the answer to above question is YES.

Left Parties have some bias on deals with Russia or UK instead of USA so they are opposing the deal without thinking about the results and the hindrance which failure of the deal would provide in growth of India as superpower which is a dream of Sardar Manmohan Singh.

Wednesday, July 16, 2008

What is Wealth Tax - Explained

Everyone having interest in Indian economy is fascinated by 'Wealth Tax' what it actually is??
so this post will sort every Ambiguity on this topic of wealth tax??

What is wealth tax?

Wealth tax is a tax levied on individuals, Hindu Undivided Families (HUFs) and companies who possess net wealth in excess of INR 1.5 million on March 31st of every year. The Wealth tax law specifies a list of assets that will be considered to be part of the taxable wealth of the assessee. Broadly, house property, motor cars, jewellery, cash in hand subject to limits, urban land, yachts, boats and aircrafts are the assets that will be liable to wealth-tax in India. Principally, wealth tax is levied on non-productive assets of assesses, and thus the above assets, where used for commercial purposes, will be excluded from taxation. The current rate of wealth tax is 1 percent on the net wealth of the assessee, exceeding the threshold limit of INR 1.5 million.

The value of taxable assets for the purpose of wealth tax would be their value as on the last day of the respective financial year (FY). Further, such value of assets (except cash) will have to be determined in accordance with the valuation norms laid down in the Wealth Tax Act. In determining the value of the assets, debts owed by the assessee in respect of assets chargeable to tax are reduced from the taxable value of the assets. Thus, where you have purchased your brand new Mercedes on 'easy monthly installments', the outstanding value of the loan as at March 31 of the FY will go on to reduce the value of the motor-car in the wealth tax computation. Further, while the tax base for wealth tax is restricted to individuals, HUFs and companies; their interest in partnership firms/ association of persons (AOP) to the extent such firms/ AOPs possess specified assets is included in their net wealth and subjected to tax.

Exemptions and clubbing provisions:

In determining the wealth tax liability, one must be careful in examining whether an asset is liable to wealth-tax, as there are some exemptions that are available with respect to certain prescribed assets. For example, wealth-tax need not be paid in respect of one house of an individual/ HUF or on a plot of land which does not exceed 500 square metres. Neither does tax need be paid on any residential property that is let out for a minimum of 300 days in the relevant previous year, nor on any property which is held for business purposes. Motor cars that are held by an assessee for running them on hire or held as stock in trade are also not liable to wealth-tax. The same applies to jewellery that is held as stock in trade for the purpose of business. Other than the specified assets prescribed under the wealth tax law, no other assets such as investment in fixed deposits, shares or intangible property is subject to wealth tax in India.

It is also important to note that one cannot evade wealth tax by transferring ownership of taxable assets among family members with a view to disperse the value of such assets which could subsequently reduce the tax burden. When an asset is transferred to a spouse or a minor child of the individual, or to any other person for the benefit of his spouse or minor child, without adequate consideration, even if the ownership of that asset does not lie with the individual, he will be liable to pay wealth-tax with respect to those assets. Thus, the diamonds that you gift your wife on your anniversary, besides burning a hole in your pocket, will cause you to pay wealth tax, as the jewellery is deemed to be your wealth.

Filing of returns

The Indian wealth tax law requires every person subject to wealth tax in India to file a physical wealth tax return with the Income-tax authorities by July 31 (September 30 for companies) of the year following the FY. Another factor to consider is that while Indian residents are liable to pay wealth tax on their global wealth i.e. on those assets situated outside India too, but non residents including foreign companies are liable to pay tax only on assets situated in India.

Tuesday, July 15, 2008

World's Strongest & Largest Economy list 2007-08

Finally Indian Economy managed to enter into league of World's trillion dollar economies .

According to the World Development Indicators released on July 1, India was a $1.17 trillion economy at the end of calendar 2007.

The US retained its pole position as the largest economy with GDP of $13.8 trillion. Following are names of the largest countries in terms of GDP.

The list of World's largest/strongest economies goes as shown below :
(Rank - Economy value in $)
1. - US
$13811.2 billion - 2007
$13163.9 billion - 2006

2. - JAPAN
$4376.7 billion - 2007
$4368.4 billion - 2006

3. - CHINA(People Republic of China)
$3297.2 billion -2007
$2896.9 billion -2006

$3280.0 billion -2007
$2644.7 billion - 2006

5. - UK(United Kingdom)
$2727.8 billion - 2007
$2377.0 billion - 2006

$2562.3 billion - 2007
$2248.1 billion - 2006

7. - ITALY
$2107.5 billion - 2007
$1851.0 billion - 2006

8. - SPAIN
$1429.2 billion - 2007
$1224.7 billion - 2006

$1326.4 billion - 2007
$1271.6 billion - 2006

10. - BRAZIL
$1314.2 billion - 2007
$1067.5 billion - 2006

11. - RUSSIA
$1291.0 billion - 2007
$987.0 billion - 2006

12. - INDIA
$1171.0 billion - 2007
$911.8 billion - 2006