The daily economic update:
16 June, 2010
1. Direct tax code relaxed by the government to keep all happy: the government has made relaxations in the direct tax code as submitted by the CBDT. Main relaxations include:
· The PPF, PENSION SCHEMES, PURE LIFE INSURANCE PRODUCTS AND ANNUITY SCHEMES remain in the EEE catg. i.e. exempt In all the three stages –savings, accretions and withdrawals
· Monetary limits for medical facilities and reimbursements offered by the employer to the employee to be enhanced
· The capital gains from sale of equity shares and units, both long term and short term, to be treated as income from ordinary sources and taxed accordingly.
· Basis of MAT calculations changed to book profits as opposed to gross asset value as suggested by the DTC
2. GTL leads race for RCOM tower biz: GTL infrastructures enters into a deal with RCOM where by the latter’s tower assets will be combined with the infrastructure entity. RCOM’s tower assets have been valued at a total of 30000 crore where 15000 crore will be paid in cash and the rest will be compensated by a share holding in the newly formed company, should this deal materialize.
3. Indirect tax collection rose by 49% in first two months of the current fiscal: the indirect tax revenues which include custom duties, central excise and service tax rose by around 49% in April-may of the current fiscal 2010. To about 35000 crore from a year ago. The main reason sited for this leap in the revenues is the high inflation rate esp. from the sectors like petroleum , textiles and chemicals, but also a 2% hike in median rate of central excise in this year’s budget.
4. RBI on a course to hike interest rates to cool off inflation: the central bank might resort to its much tested and dilapidated policy of controlling the inflation, i.e. raising the interest rates. This might happen in the when it meets next for it’s quarterly monetary policy review on july 27.
5. SENSE X CLOSED ON MONDAY AT 17412.83 UP BY .43 % ON MONDAY
6. NIFTY CLOSES AT 5222.35 UP BY .47% ON MONDAY