Friends,
US Treasury Secretary Henry Paulson unveiled ‘Project Lifeline’ which offers an additional 90 days to people who have been behind 90 days already before the foreclosure is resorted to by the banks in respect of the home loan mortgages.
Prices have been hiked by Rs 2/ltr for petrol and Rs1/ltr for diesel. I think this will have no impact in the market place and on the fortunes of oil companies as this has already been factored in. this hike has after 22 months during which time the internation crude prices have soared from $67/bbl to $92/bbl. LPG and kerosene prices are static since 2004 and 2002 respectively under a govt. which cries for reforms and does every thing to let some people do the black marketing. It should have only a minimal impact on inflation.
Steel makers have slashed prices between Rs500 to Rs1000 per ton to please the minister apperantly but some how the market also refused to be happy with the raised prices hence the decision in not entirely due to govt presure . In fact ot means nothin this way or that for the industry in near term.
VSNL known as ‘Tata Communications’ will be spending Rs 8000 crs for global network cable laying.
Eicher Motor Jan 08 sales are down 17% to 2252 nos.
IT now contributes 5.2% to GDP against 1.2% in 1997-98. Direct employementis now close to 2 million and is growing at 26% per year. I think IT contribution has to grow for many years to come , it will be more based on local demand in future.
I think shares and bonds and other listed instruments shaould have a simple sustem for taxing gains . Those who value stocks at the closing price (quoted rates) at the end of the accounting period should be taxed for gains as if it is business income and losses should be allowed to carried forward. Those who reflect the stocks at purchase price at the end of the period should pay a simple 10% capital gain when stock are sold irrespective of short or long term nature of the gain after offsetting losses if any during the period under assessment. The STT should be reduced to nominal .001% in all pockets including the F&O section and should not have any bearing other than as that of cost of aquisition or sale. This will make the matters simpler for the assessing authority and make life easy for the trader or investor. By keeping the question whether some body indulging in shares and stocks is a doing it as investment or trading based on some complex set of rules is a wrong thing to do in present day circumstances. This will have no revenue loss or unreasonable punishment to any body. Even the foriegn parties should have to pay taxes like this where there is applicability of tax on them in India. The legal minded FM will have to earn an ire of the legal community and the CAs for making things simpler and may be this lobby does not allow the laws to be made simple.
HariOm,
krsnaKhandelwal
