inflation updates - Annual inflation at 0.61 percent

(28/5/09 - Inflation updates) - The wholesale price index rose 0.61 percent in the 12 months to May 16, matching the previous week's annual rise, government data showed today.

It was below a median forecast of 0.74 percent in a Reuters poll of analysts. The annual inflation rate was 8.66 percent during the corresponding week of the previous year.

It may be noted that The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly.

Govt might put an end to Fringe benefit tax this budget

(27/5/09 - FBT updates) - The government is considering a proposal to put an end to fringe benefit tax (FBT) — the tax on all benefits and perks that companies provide to their employees introduced in the 2005-06 Finance Bill — in the coming Union budget, according to revenue officials familiar with the development.

FBT, at Rs 8,000 crore last year, accounted for just over 2% of the total direct tax collection of Rs 3.4 lakh. There is a view that collections from this unpopular tax is too minuscule to worth all the paperwork involved, officials said on condition of anonymity.

From Day One, corporates opposed FBT not just on account of adding to the tax burden, but because of the huge additional paperwork and accounting complications involved in estimating a company’s FBT outgo.

FBT is levied on perquisites provided by the employer to the employee in addition to the regular salary. This is a tax paid by the employer on the benefits or perks that the employee receives. It includes components like the employee’s accommodation, entertainment, travel expenses and phone calls. Later Esop too was brought under the FBT umbrella.

Rs v/s $ daily updates - may 09

This post gives daily INR v/s US$ updates for the month of may 2009 the comparison is at closing of the indian stock markets. and enteries are in cronological order -


PS - the order of each daily entry is as follow:

Rs v/s US$ | price of 1 us$ in INR | change wrto previous day | remarks/analysis

Enteries in red color show INR weakening and green color entery shows stronger INR wrto $

May 28/2009 - Rs v/s $ updates
RS v/s $ | 47.67 | -0.04 | Down(-0.04) paise

May 27/2009 - Rs v/s $ updates
RS v/s $ | 47.63 | -0.41 | Down(-0.41) paise

May 26/2009 - Rs v/s $ updates
RS v/s $ | 47.22 | -0.03 | Down(-0.03) paise

India's crude oil imports dip 12.1 percent

India's crude oil imports fell 12.1 per cent in April on lower buying by private refiners while the nation's fuel consumption was up only marginally despite hectic electioneering during the period.

The Asia's third largest energy consumer imported 9.7 million tonnes of crude oil in April as Essar Oil shut its Vadinar refinery for maintenance, according to the data available from oil ministry. India had imported 11.04 million tonnes of crude oil in April 2008.

Fuel consumption rose 1 per cent to 11.58 million tonnes against 11.47 million tonnes a year ago. Diesel, the most consumed fuel, saw a moderate 4.8 per cent rise to 4.72 million tonnes while petrol sales jumped 7.8 per cent to 1.01 million tonnes.

LPG, naphtha and aviation turbine fuel demand fell. ATF sales was down 3.2 per cent to 3,77,400 tonnes.

Cheaper natural gas replaced naphtha, which saw 39 per cent fall in demand to 292,100 tonnes. Oil product imports was down 11 per cent to 2.17 million tonnes.

Petroleum product exports dipped 37.8 per cent to 1.78 million tonnes in April. Diesel exports was down 26.6 per cent to 781,000 tonnes.

source - pti

Govt finds Rs 1,200 crore in frozen demat accounts

The I-T department has found over Rs 1,200 crore lying unaccounted in lakhs of frozen demat accounts across the country and has sought a detailed probe on the possibility of their use for illegal transaction and tax evasion.
The department has now sent the reports of such accounts to the respective Chief Commissioners of Income Tax (CCITs) in various parts of the country to check the veracity of such accounts in their regions.

More than 6.5 lakh frozen demat accounts were taken under scanner and investigated by the Income Tax Department in December last year on the suspicion of huge evasion of taxes and 'benami' transactions.

According to official sources, the CCITs have been asked to serve notices to all the account holders and report unclaimed accounts so that such accounts can be seized.

All the I-T Commissioners have also been asked to prepare "detailed reports" on the transactions of these accounts.

Official sources said that distinction between claimed and unclaimed accounts will help the authorities to proceed with further probe or seizure procedures respectively, as these accounts could lead to links to further cases of tax evasions and unreported economic transactions.

FM meets senior officials to discuss Budget 2009-10

Finance Minister Pranab Mukherjee is understood to have held an informal meeting with the senior officials in the ministry and discussed issues relating to preparation of the Union Budget.

Finance Secretary Ashok Chawla and Chief Economic Advisor Arvind Virmani met Mukherjee at his residence today. Mukherjee is likely to take over the charge tomorrow.

According to official sources, Mukherjee has convened a meeting of senior finance ministry officials tomorrow immediately after assuming office.

Yesterday, after the first meeting of the new Cabinet, Mukherjee had expressed hope that the government would be able to present the Union Budget for the year 2009-10 in due time to avoid uncertainties.

Commenting on the economic scenario, he had said, "Indian economy is resilient, strong and we shall have to build up and come back to the growth track as early as possible. We will be able to, I hope, present the budget in due time so that uncertainties can be avoided and time of spending can be renewed."

Mukherjee, who was given additional charge as Finance Minister earlier this year in the previous UPA government, had presented an interim budget in February and had sought approval from the Parliament for withdrawal of money from the consolidated fund only till July 31.