The Government has enacted the Unorganised Workers’ Social Security Act, 2008 for the social security and welfare of unorganised workers which includes domestic workers. The National Social Security Board constituted under the Act has constituted a Sub-Committee of the Board to explore the extension of Social Security Schemes for unorganized workers. The said Sub-Committee recommended domestic workers as one of the categories to be considered for social security. Accordingly, the Government has set-up a Task Force to evolve a policy frame work for domestic workers in the context of regulatory mechanism and providing social security. The Task Force has been examining various issues such as extending coverage of Rashtriya Swasthya Bima Yojana (RSBY), health and maternity benefits, life and disability benefit, old age pension, etc., to domestic workers.  It has held three meetings on 13th January, 2010, 1st February, 2010 and 25th February, 2010.  The Task Force is likely to submit its Report soon.

Highly paid jobs to be removed from the workman category

In the first report on the Industrial Disputes (Amendment) Bill 2009, it was suggested that the govt should exclude the list of highly paid jobs from the category of ‘workman’. As the government has proposed to raise the wage ceiling limit of a workman from Rs. 1600 to 10000 per month after 25 years, the committee is proposed to remove the highly paid jobs from the purview of laws relating to workmen as they themselves are capable of negotiating their terms of employment and hardly take recourse of the Industrial Dispute Act. Beside the committee also proposed to keep the supervisory staff out of the workman category irrespective of wages.

Source: Labour Law Reporter, Pg. No. 17, February, 2010.

Service sector’s the principle job provider in backward states

In India’s conventionally backward states of Bihar, Madhya Pradesh, Orissa and Rajasthan, the service sector is proving to be one of the principle growth drivers. The important aspect is that growth in these sectors is mainly by the extensive inputs of low skilled labour. Construction, telecommunications, banking and insurance, tourism and real estate have led to growth in this period.

Source: Labour Law Reporter, Pg. No. 19, February, 2010.

Kashmiri youth to be recruited in paramilitary forces

Finance Minister Pranab Mukherjee in his budget speech announced the decision to recruit 2000 Kashmiri youth as constables in central paramilitary forces (CPMFs). These individuals will be recruited as per the expansion plan of these forces in coming two years. In addition to this, government has also decided to set up solar, small hydro and micro projects of Rs. 500 crore in the Ladakh region, which faces the problem of energy deficiency.

Source: timesofindia.indiatimes.com, February 26, 2010. “Jobs for Kashmiri youth in paramilitary forces”

India created jobs during global slowdown

In the period of global slowdown, India registered a net addition of 151000 jobs during October 2008 to September 2009, as per data released by the Economic Survey. Jobs losses during that period have shown a trend of reversal currently. The National Rural Employment Guarantee Scheme also added to the number of jobs as 43.4 million households were given employment from the Budgetary outlay of Rs. 70000 crore during 2009-10. Out of it, 29 percent of jobs were to scheduled castes, 22 percent to scheduled tribes and half of them covered women.

Source: www.business-standard.com, February 26, 2010. “Jobs generated during slowdown”

Historic moment for India as women reservation bill cleared by Union cabinet

The Union cabinet created history by passing the women’s reservation bill which was on continuous debate since 14 years. This bill will amend the constitution and provide 33 percent reservation to women in Parliament and state assembly seats. The bill is likely to pass the acid-test in Lok Sabha due to reduced relevance of opposing parties and some smart floor management by the govt. Facing opposition from RJD and Samajvadi party, both of whom demanded a “quota-within-quota” for OBC and minority women, the bill may get the required two-third majority in the Lok Sabha.

Source: timesofindia.indiatimes.com, February 26, 2010. “Road cleared for 33% reservation of all MP, MLA seats for women”

2009 sees a decline in the number of industrial disputes

The economic survey reveals that year 2009 has been a good year in terms of industrial disputes as the number of strikes this year has come down to 91 from 250 last year. Also, the number of man-days lost in strikes has declined to 2.05 million from 7.02 million in 2008 along with a reduction in number of lockouts to 31. However, union leaders say that this is due to a flawed method of recording strikes. They also suggested that employers now prefer suspension of employees than lockouts, which has brought down the number.

Source: www.business-standard.com, February 26, 2010. “'Less' industrial disputes in 2009”

Pension reforms to change India’s social security sphere

As per the statutory recognition to Pension Fund Regulatory and Development Authority (PFRDA), the Economic Survey 2009-10 mentions that the success of pension reforms will not only provide social security to a vast number of Indians but also facilitate the country’s development. The survey also revealed that PFRDA performs its regulatory and development roles effectively. PFRDA is also working on the full New Pension Scheme and expanding its distribution network.

Source: economictimes.indiatimes.com, February 25, 2010. “Success of pension reforms to facilitate development: Survey”

India to become fastest growing economy in the world in 5 years

The pre-budget Economic Survey (2009-10) presented by finance minister Pranab Mukherjee in the Parliament projected a growth of 7.2 % in 2009-10. He added that in 2010-11 it is likely to touch the mark of 8.75 % and 9 % the next year. India is also likely to be the world’s fastest growing economy in the next 5 years. However, a major concern hinted at inflation in the price of food items which has reached 18% and is expected to rise more in the next few months.

Women’s reservation bill to be taken up in Cabinet

The much-awaited and debatable bill on reservation of women in Lok Sabha and state assemblies will be placed in the Union Cabinet for approval on February 25, 2010. The bill provides for 33% reservation to women and has been courting controversy for a long time now. OBC leaders suggest that the bill will only benefit upper class women, so there should be “quota within quota” for OBC women. In the current session, two bills on 50% reservation of women in panchayats and urban bodies have been introduced in the Parliament and are likely to be passed.

2010 optimistic for hiring but harsh at staff benefits

The Grant Thornton International Business Report 2010 on Employment suggests that year 2010 is going to be better for the job seekers than 2009, as 29 out of 36 economies surveyed are coming up with the hiring plans. However, the case of staff benefits is likely to remain a bit stable, without major increments. Grant Thornton India Partner Vinamra Shastri remarked that India had managed well during the slowdown period compared to other economies to maintain its headcounts.

Construction workers to be provided accidental insurance: Andhra Pradesh

Construction workers to be provided accidental insurance: Andhra Pradesh
State Labour Minister of Andhra Pradesh said in the Assembly that construction workers registered with the Andhra Pradesh Building and Other Construction Workers Welfare Board will be covered under various benefit schemes including accidental insurance. By this scheme around 21 lakh workers across the state will be benefited with the accidental coverage of Rs. 2 lakh per worker. In addition, women workers will be given maternity assistance up to Rs. 5000 limited to two confinements.

Committee constituted for proper functioning of NREGS

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) was introduced in the year 2005. This scheme was launched with the objective to provide 100 days guaranteed employment in India. However, the scheme lacks proper implementation with major concern being the delayed payment of wages to the beneficiaries. To ensure its effective implementation, Centre has constituted a committee of experts to look into it. The committee will look into linking the wages to the Consumer Price Index (CPI) and social auditing and formation of sub-groups for payment of wages.

Retail sector to create database of the employees

The Retail Association of India (RAI) has tied up with a HR consultancy and background verification firm CRP technology to create a database of employees in the retail sector. Indian retail sector has around 25 million people out of which 5 percent are in organized sector. The database of the employees will contain their professional as well as educational details. This data will be worked out with permission from employer and employee both.

Succession plans to retain good talent

Indian companies with the improvement in economy are now working on the succession plan to retain their best talent. In order to build up a potential and successful leadership frame, they are working on developing them for the top and middle level management. This will help them face the risks of attrition of talent.

Women group demanding Government to expand its limit of gender budgeting

Women groups are coming up with the demand that the gender budgeting should go beyond the programms and schemes run by Ministry of Women And Child Development. As per the Centre for Budget and Governance Accountability (CBGA), in the Union Budget 2009-10 many of the useful programms remained outside the purview of gender budgeting, which should be included this year. Women group have also demanded to include proper regulations of banks which will allow them to create adequate credit for women.

Placement is improving but not salaries

As many companies are visiting campuses, B-schools are seeing sign of revival in the number of placements this year. Compared to last year, more number of companies have arrived at the campuses and the average salary rate has also increased. However, this rise has not beaten the mark of the year 2008. Assumption by many of the placement chairpersons of B-schools is that in the year 2011, the market will be able to resume the level of 2008 or even beat that.

19% job hike due to fiscal incentives

According to the industry body Assocham, Government’s fiscal incentives like cut in excise duty and service tax has helped the industry to grow its job opportunity by 19% in October-January 2009-10. Domestic industrial production and export orders expansion also led to positive to job creation. Industrial production had shown a 16 year high growth rate of 16.8% in December last year. Incentives offered by other countries also helped to improve international trade which led to further job creation in the manufacturing and merchandising sectors.

79,000 employees are adding to LPOs by 2015

With the Indian legal processing outsourcing (LPO) industries hiring employees in tier-II cities, it is likely that manpower in this industry will grow to 79,000 personnel by 2015. Law firms are hiring candidates not just from metro cities but also from tier- II cities. The firms are recruiting fresh graduates for the junior staff level which requires much of litigation work than the verbal communication. Mostly pass outs from premiere law schools opt for core practice but still there are lots of position for team managers and project managers in LPO firms.

30 hours training every year for renewal of licence for nurses

President of the Indian Nursing Council T. Dileep Kumar on Graduation Day at St. John’s College of Nursing said that soon a new licence renewal system for nurses is on the path of implementation, which will require nurses to attend 30 hours of training or seminars every year. This method is chosen to update the knowledge of nurses with the latest technology and challenges in this field. In addition to this every state nursing council will be given fund of Rs. 1 crore to hire staff and latest equipments.

2 years childcare leave for Haryana women staff

Women employees of Haryana State Government can now avail 2 years paid leave for “Child Care Leave” (CCL). This leave is for maximum of 730 days which can be split or clubbed together in the entire period of service. To avail this leave the child must be below the age of 18 years and for the eldest two children (no CCL will be allowed for the third or next child, irrespective of his age). The nature of the CCL will be same as earned leave and will include weekends and gazetted holidays in the period of leave. The implementation of this decision will be with immediate effect.

Training session for the engineering faculty across the nation

Wipro technologies had initiated a programme named as “Mission 10 X” in the year 2007, which aimed to train engineering faculties across the nation. This programme is conducted to train around 10000 engineering teachers by trainers of Wipro Technologies to improve the teaching skills of them and also to guide the with specialized techniques so that the environment at classroom can be improved and be more interactive. This will help to raise the quality of engineering students. Till date around 7000 faculty have been trained and remaining 3000 will be covered by this September.

Growth in hiring activity by 4 percent in January 2010

New Year has come with a new start for job seekers as well as recruiters. A study by leading job portal Naukri.com reveals that Indian companies’ hiring activity in the month of January 2010 has increased by 4 percent in comparison to December 2009. Hiring in IT companies has topped the list. As per the city job index, Mumbai has been the most optimistic city since past three months in the recruitment drive.  In all there has been increase in all sectors of employment. However, financial and banking sector has seen a dip in the index.

Telecom industry pins hopes on favorable govt policies

The Indian telecom industry, growing at a scorching pace in the last couple of years, is expecting favourable govt policies in the upcoming union budget. For further growth and advancement of this sector, the industry is hoping for some relaxation in the high tax structure from Union Finance Minister in the upcoming budget of 2010-11. Telecom firms are also demanding the availability of cheap credit, schemes to boost export and support to facilitate business and day to day transactions.

Haryana raises upper age limit for women in govt jobs

Haryana government has issued a notification to bring into effect the rise in upper age limit of unmarried women residents of the state from 40 years to 45 years for entry into government jobs. The age limit for widows, women legally separated from their husbands, divorced women and women deserted by their husbands was already 45 years. The notification of implementation of this change was issued by chief secretary, Urvashi Gulati.

Survey says Indians most passionate about their jobs

A survey conducted by global HR solutions provider Kenexa says that Indian employees have topped the list of being passionate about their jobs, with 72 percent of the surveyed employees nodding in favour. According to the survey, global average of employees passionate about their jobs is 56 percent. The result shows that employees are confident about personal as well as their company’s growth in the future. The effective utilization of skills and abilities and improvement in the skills of employees also creates more enthusiasm towards their job.

IT sector to hire nearly 1 lakh people this year

Amid a hectic boost in demand and a strong lineup of deals, Indian IT companies have chalked out plans to widely expand their portfolio and operations. As per the research done by global IT research firm Gartner, Indian IT companies are planning to hire around 1 lakh people this year. This increase in hiring activity is due to the rise in number of projects coming up from across global markets. Top IT firms like TCS, Infosys, IBM and Accenture have high hiring plans, with the industry set to grow by 19-20 percent this year.

New guidelines for port operations

The Union Shipping Ministry has drafted new guidelines to prevent the monopoly of a single player in public private partnership (PPP) projects at major ports. The regulations place restrictions on the number of terminals each player can operate, particular kind of cargo, and the number of projects they can undertake at a single time. According to the proposed guidelines, these restrictions are meant to prohibit private operators to create a monopoly in port operations.

Aviation sector set to hire as bullish phase returns

The aviation sector, which registered one of its biggest negative growth worldwide last year, is now set to look up to a better future as demand picks up. The surge in demand worldwide, and more so in India, has led companies to announce fresh hiring plans. A host of low cost airlines, along with their full-service counterparts, are coming up with plans of expanding their business and hiring more personnel. Along with an increase in the number of aircrafts, pilots, co-pilots and cabin crew is also likely to increase this year.

IT companies come up with 'smart' hiring plans

Information Technology companies across India are realigning their hiring strategies to lay focus on making the process ‘lean’. This involves hiring ‘smart’ while keeping up the high numbers of recruits intact. Companies have realized that a leaner organization with low bench strength can be a great asset even as a recovery in the US market has lined up a host of new projects. Many top companies such as TCS, Infosys and Wipro have plans to hire both top and bottom level staff in the short term.

Private sector gets back lost sheen for government personnel

With the recovery in the economy, private sector jobs are getting more preference in the job market, particularly among govt officials. This has lead to an increasing number of IAS and IRS officers opt for voluntary retirement scheme (VRS) which allows them to quit before the statutory retirement age. Private firms offer heavy pay packages to people with experience in government jobs as such individuals are considered to have experiences of working on diverse and complicated issues. For these government personnel, jobs in private companies give them new excitement and challenge to work in a different environment.

Pharma sector to offer a 20% salary hike as MNCs increase focus on India

The Indian pharmaceutical industry has seen consistent growth for many years and 2009 was not an exception. With a growth of around 15-20 percent last year and a marginal slowdown in hiring, this year the pharma sector is likely to see salary hikes of around 17 to 20 percent. As an increasing number of foreign drug makers step up hiring from India, the sector is likely to witness a hectic activity for talent acquisition, apart from the 20% salary hike.

AITUC to launch a national satyagraha to highlight worker problems

The All India Trade Union Congress (AITUC) has called for a satyagraha on March 5 on a national scaled to highlight the problems of unorganized sector and the issues of inflation and public sector disinvestment. Around five lakh workers are expected to participate in the satyagraha. The AITUC aims to create pressure on the Central Government for strict implementation of labour laws and to stop disinvestment of profit-making PSUs.

Technopark in Kerala likely to create 50000 jobs

Kerala IT department officials have informed that the TechnoCity in Kerala, on completion of the fourth phase, is likely to create 50000 direct jobs and around 2 lakh in indirect employment. The department has proposed that TechnoCity be a complete IT city comprising of residential and commercial space for IT/ITES companies. Along with IT offices, other companies expected to come up are biotechnology, manufacturing and R&D in the TechnoCity, which will have space for both SEZ and non-SEZ area.

Senior executive hiring to pick up in 2010

After a fall of about 20 percent in hiring senior level executives in the year 2009, signs of revival are quite visible in 2010. The recruitment of senior executives in the second half of 2010 is likely to mirror the pre-recession years. This revival is seen as the financial condition of companies has improved with an increase in the number of executable projects. Sectors like industrial services, finance, media and entertainment are likely to have high demand for senior executives this year.

Religion-based reservation in WB govt jobs

West Bengal Chief Minister Buddhadeb Bhattacharjee announced at the state secretariat that the government will implement the recommendations of the Rajnath Mishra Commission suggesting reservations for Muslims in government jobs. The state government has declared reservation quota for Muslims who are educationally, socially and economically backward in the state. After their identification, a reservation of 10 percent under OBC category will be provided to such Muslim groups.

Daily wage revised for tea workers in Brahmaputra Valley

The daily wages of tea garden workers in Brahmaputra Valley was hiked by the Assam tea industry. As per the meeting between Consultative Committee of Planters’ Association (CCPA) and Assam Chah Mazdoor Sangha (ACMS), an agreement was reached stating that the workers will get a raise of Rs. 8 per day for the first 15 months from January 1, 2010 and a rise of Rs. 5 from April 1, 2011 to September 30, 2013. Concerns regarding the increasing trend of absenteeism of workers were also discussed in the meeting.

Source: www.business-standard.com, February 8, 2010. “Daily wage of tea garden workers hiked in Brahmaputra Valley”

Audit fees must rise, says CAG

The Comptroller and Auditor General of India (CAG), the apex audit body of the country, has called for a hike in the fees of statutory auditors of all government companies. The fee is proposed to be raised due to rise in the cost of audit due to inflation. The statutory audit conducted for PSUs by CAG is carried out with the Institute of Chartered Accountants of India (ICAI). So, the rise in audit fees will attract more domestic CA firms, also enhancing the quality of audit work done in PSUs.

AP govt. employees to get health insurance

Andhra Pradesh Arogyasri Minister P. Satyanarayana said that government is planning to hold discussions with employees’ service organizations for finalizing the health insurance scheme for government employees. For this, government is likely to contribute Rs. 170 crore annually for medical reimbursement of employees, while for the balance amount, employees will also have to contribute monthly towards the scheme. The government is also holding talks with insurance companies for the scheme, which will be cashless and will reimburse the expenses on treatment given to employees.

Strike called off after ICAI management agrees for a 20% pay hike

Institute of Chartered Accountants of India (ICAI) employees, who were on strike for two days, have called off the agitation as the management has agreed to their demand of salary rise. ICAI Employees’ Association Secretary Deepak Kishore said that management has given them 20 percent hike in January’s gross salary and has credited that amount in their salary accounts. ICAI has also assured the employees that the Sixth Pay Commission recommendations will be implemented within 45 days.

Gujarat cops among the least paid police personnel in India

Due to the adoption of state policy instead of the central govt pay scale for paying police personnel, Gujarat cops come last on the basis of take-home salary every month. On one hand, police constables from Bihar, Uttar Pradesh and Haryana get a monthly average salary of Rs 13,000 to 15,000, whereas Gujarat cops earn an average salary of Rs.8000. Adding up to that, constables in Gujarat get lesser leaves and holidays compared to other states. However, Pramod Kumar, additional director general of Gujarat police said that salaries of police personnel have been recently revised as per the Sixth Pay Commission.

Assam govt revises pay structure of all state employees

The government of Assam has issued the Revision of Pay (ROP) rules for all the employees and pensioners of the state government. This revision in salary is in effect from April 1, 2009 and will be deposited in the bank accounts of employees in one installment. As a consequence of the stated ROP, the interim relief of employees will be terminated with effect from February 1, 2010.

Technology companies high in popularity among engineering and B-school graduates alike

IT firms are gaining popularity among engineering graduates, with companies offering a higher compensation package than last year. This year IBM offered Rs 14-15 lakh to IIT graduates under their ‘Blue Scholar’ programme, which is double compared to last year’s salary package. According to Nandita Gurjar, senior VP HR at Infosys, even the conversion rate of joining among premier B-school graduates has increased to 93%, compared to 63% to 70% in previous years.

Expat work permit rule may relaxed by India

Agreeing to the demands of the $60-billion IT industry, the Indian government may relax the rules prohibiting foreigners on business visas from working in India. Citing smooth operation of IT industry as a concern, government officials are working on the list of activities where foreign nationals can be employed without work permits for a limited period. Meanwhile, companies have also sought a relaxation in rules that stipulate giving employment visas to just 1% of the total number of workers in a particular project.

A majority of Indian companies to increase hiring

According to a survey carried out by international recruitment firm Antal, 71% Indian companies are hiring compared to around half in September. In addition to that, companies are also planning to increase their hiring activities by up to 78% in managerial staff over the next three months. This quarterly survey of hiring at managerial and professional levels has been conducted on more than 6,000 firms in 30 countries. The results indicate a strong employment market with IT, FMCG, pharma, manufacturing and auto sectors picking up talent.

Employees set to get double-digit increments this year

With a strong growth of Indian economy and subsequent recovery, salaries across all Indian companies are likely to see a hefty rise for employees. As companies shower key people with benefits and bonuses, employees are likely to get salary hikes of around 9-18 percent. These hikes in salary may not match the high levels of the year 2007-08 but will be higher than last year’s 8 percent, with an expectation of more, as consumer sentiment lifts up. Almost all the sectors are planning to reward their employees with pay hike and with a  rise in bonus and other benefits.

Source: economictimes.indiatimes.com, February 2, 2010. “India Inc plans to reward employees with double-digit increments”

Training companies cash in gains due to shortage of manpower

Due to the acute shortage of manpower affecting India Inc, especially in Tier II and III cities, the business of recruiting companies has been on a boom lately. Indian companies now prefer to outsource employee training, giving a huge opportunity to these staffing companies. In view of this, companies like Total Solutions Incorporated (TSI) and i360 staffing and training solutions are looking forward to expanding their operations to non-metro cities in order to fulfill the demand of skilled manpower in the job market.

50000 ASHA workers demand minimum monthly salary

The Accredited Social Health Activists (ASHA) is an organization of community health workers in the World Bank-sponsored National Rural Health Mission in the State of Karnataka. In Bangalore, hundreds of ASHA workers held a convention for Worker’s Association and have demanded a monthly minimum wage and other facilities at every primary health centre including travel allowance, mobile phone and medical kit. Nearly 50000 ASHA women workers across the state gathered to demand for the minimum salary of Rs. 1000 a month.

Source: www.hindu.com, February 2, 2010. “ASHA workers demand minimum monthly wage”

• Income above Rs.1,60,000/- to Rs.5,00,000/- will be taxed at 10%. (For the Current Year this is up to Rs.3,00,000/-).
• Income above Rs.5,00,000/- to Rs.8,00,000/- will be taxed at 20%.  (For the current year , this is up to Rs.5,00,000/-)
• Income above Rs.8,00,000/- will be taxed at 30%. (For the current year this is above Rs.5,00,000/-).

2. Education Cess

Education & Higher Education Cess continues to remain at 3% on the Taxable Income.

3. Tax Saving Investments U/S 80C

Tax Benefit is available on investments made on certain classes of Investments upto Rs.1,00,000/-. (Life Insurance, NSC, Provident Fund, ELSS Mutual Fund Schemes, Principal Repayment on Housing Loan, Children’s Education Allowance, 5-year Bank Term Deposits, etc.)

Under the existing provisions, there is a limit of Rs.1,00,000 u/s. 80CCCE which is for specific deductions in computing the total income under section 80C, 80CCC & 80CCD; a new section has been inserted for granting deduction to individual or HUF in computation of its total income.

The proposed section 80CCF provides for a deduction to an individual or a HUF upto the limit of investment of Rs.20,000/-, over and above the existing limit of Rs. 1 lakh under section 80CCE. The said investment has to be made in Long Term Infrastructure bonds to be notified by the Central Government.

4. Deduction for Medical Insurance under section 80 D

Under the existing section 80D, deduction upto a sum of Rs. 15,000 on premium paid for insurance on the health (Mediclaim) of the assessee and his family. A further deduction of Rs. 15,000 is admissible if the medical insurance is taken for parents of the assessee. It is also provided in the existing provision that if the insured is a senior citizen, the said limit will become Rs. 20,000.
 
It is now provided that if any contribution is made to the Central Government’s health scheme then the same would be also eligible for the deduction U/s. 80 D, subject to the above overall limit.

5.  TDS (Tax Deducted at Source)

TDS on your Salary Income will be deducted from your Salary by your employer during the year based on your Investment declarations made along with relevant proofs submitted for the year.

Besides, the Investments mentioned above tax benefits are also available on -

• House Rent Allowance (H.R.A) if you are living in a rented house and provide Rent Paid receipt copies.
• Interest component repaid on your Housing Loan.

Do make sure that you submit these details, if any, to your employer in order to make correct TDS calculation for the year.

In case, all Investments have not been declared then your employer will end up deducting higher Income Tax from your Salary. You can however , claim this excess Tax deducted from the Government by filing your Income Tax Returns on time with the Income Tax Department.

On the eve of International Women's Day, lets celebrate the achievements of women and look forward to many more achievement to come.Be part of the celebration,
click here..

Continuous debate is prevailing in the market about the regulation of compensation of CEOs. Is restriction on pay packages of CEOs really needed?

• Budget News 2010
• Highlights of Finance Budget 2010-11
• Tax slab for the individual tax payers 2010-11
• Highlights of Economic Survey 2009-10

Union Budget 2010-11 has come up as a relief for the small business as all businesses with a turnover of Rs. 60 lakh will have to conduct account audits against an earlier limit of Rs. 40 lakh. Similarly, in the case of professionals, the limit for account auditing has been increased to receipts of Rs. 15 lakh against Rs. 10 lakh earlier. The finance minister said in his speech that he had introduced these limits in his Budget of 1984 and it is high time to decrease the tax burden on small businesses.

Source: www.business-standard.com, February 27, 2010. “Big smile for small businesses”

Women groups find budget provisions burdensome on ‘aam aadmi’

That the Union budget does not favour ordinary people and has worsened their condition by increasing the excise duty on petroleum and petroleum products was conveyed by the All India Democratic Women’s Association (AIDWA). The budget did not cover the concern of majority of people and had kept in mind interests of corporate sector. National Federation of Indian Women (NFIW) said that allocation of fund to the NRHM and health sector is not enough for the country where problem of malnutrition and maternal and infant mortality rates is high.

Source: www.hindu.com, February 27, 2010. “Women groups unhappy with budget provisions”

Healthcare reforms leave out salaried class

With health care expenses going high day by day and no increase in the exemption limit for medical insurance premium of Rs. 15000, common people have been left disappointed by the Union Budget. The budget has proposed deduction for contribution to the Central Government Health Scheme but which is applicable only to a few people who contribute to it. However, the government has increase the allocation to healthcare sector by 14 percent as a sign of favorable intentions.

Source: www.dnaindia.com, February 27, 2010. “Salaried class feels left out of Pranab Mukherjee healthcare reforms”

High priority on social sector to enhance rural growth

The Union Budget 2010-11 has increased the allocation of resources to social sector programmes such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Bharat Nirman and Indira Awas Yojana to increase rural growth. MGNREGA’s fund has been raised to Rs. 40100 crore from Rs. 39100 crore. Indira Awas Yojana’s allocation has been hiked to Rs. 10000 crore to meet the need of housing facilities to people below poverty line. These efforts are expected to lay the foundation for solid growth in the rural economy.

Source: www.financialexpress.com, February 27, 2010. “Higher allocation for social sector to spur rural growth”

Increase in MAT the only dark spot for India Inc.

Finance minister Pranab Mukherjee increased the excise duty to 10% and minimum alternate tax (MAT) on book profits was increased from 15% to 18%. Companies are happy that the excise duty was not increased to a higher level. A study done by Business Standard Research Bureau reveals that, for FY 2010-11, manufacturing companies will shell out an additional Rs 25,500 crore, but companies feel that this increase in excise duty will be passed on to consumers without affecting the demand.

Source: www.business-standard.com, February 27, 2010. “India Inc sees roses all the way”

Income tax rate change a motivational incentive for tax payers

The finance minister has brought a smile on personal income tax payer’s face by increasing the exemption limit across the board. This is likely to compensate the hike in excise duty and prices of petroleum products. In the next fiscal year, the government is planning to widen the income tax slabs as recommended in the draft Direct Taxes Code, these slabs were last changed in 2008-09.  Individual can now invest more due to new infrastructure bonds with section 80C deduction. Education cess of 3% will continue for at least one more year.

Source: economictimes.indiatimes.com, February 27, 2010. “I-T's a special stimulus: Everyone's getting richer”

Growth rate on track, need to work on job creation

The Economic Survey has made it clear that the growth rate of economy is back on track and has come out of slowdown with flying colours. But to keep the growth rate increasing, the most important challenge is employment generation for which, inclusive growth and industrial development is a precursor. The survey mentions that the medium, small and micro enterprises (MSME) sector is the largest employer in the country and needs more support for growth and development. Technological development and development of infrastructure also constitute important challenges that need to be overcome for economic growth.

Source: economictimes.indiatimes.com, February 26, 2010. “Employment creation must be top priority”

Senior citizens to have same benefits this year

The Union Budget 2010-11 has been good news for middle class senior citizens as the finance minister has continued to allow deduction of upto Rs. 20000 against their taxable income on premium paid. Retired persons or senior citizens with income Rs. 1.6 lakh to 5 lakh will save Rs. 20600 a year compared to the current year slab. Those earning Rs. 5 lakh to Rs. 8 lakh will save Rs. 41000 and for Rs. 8 lakh and above will save Rs. 51500.

Source: www.dnaindia.com, February 26, 2010. “Budget has same benefits for senior citizens”

India Inc. happy with Railway budget

The Railway budget announced by Minister Mamata Banerjee on Wednesday has found support among industry bodies, with most of them finding it satisfactory. The Bangalore Chamber of Commerce and Industry (BCIC) said that some proposals in the budget like the involvement of public-private partnership (PPP) will lead to modernization and growth of Railways. The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) also appreciated the proposal for the development of connectivity to Mangalore port, helping in the expansion of trade and industry.

Source: www.business-standard.com, February 25, 2010. “Railway budget satisfactory, say industry bodies”

Railway Budget brings a bundle of benefits for its staff

The Railway budget has given a reason to celebrate for its 14 lakh employees by announcing a new scheme of “House for All”. Under this, residences will be provided to all employees in the next ten years. Also, with the help of Ministry of Health and Ministry of Human Resource Development, Railway ministry has decided to use surplus railway land to build hospitals and education centres. For women employees, around 50 crèches will be setup for their children while 20 hostels are proposed to be built as well..

Source: economictimes.indiatimes.com, February 24, 2010. “Railway employees have reason to rejoice”

No big gains for Textile sector from Budget 2010-11

Textile industry this year had lots of demands and expectations from the ongoing Union budget. For example, to remove mandatory excise duty, exemption of liquid fuel used for manufacturing from custom and excise duty and allocation of provision of Rs. 4500 crore to the textile industry under technology upgradation fund scheme (TUFS). But most of the industrial players are suspecting that this budget will not turn up with the fulfillment of all their demands, as the budget will be focusing more on social sector.

Source: economictimes.indiatimes.com,February 24, 2010. “Textile cos see no big gains from Budget”

Union Budget allocation a negligible share for women

Union Budget allocation for Women and Child Development (WCD) ministry has increased from Rs. 2454 crore in 2004-05 to Rs. 7218 crore in 2009-10. However, the proportion of the Budget has a decline from 9.2 % to 3.2 % in the same year. As per the budgetary allocation analysis out of the total budget for WCD, 97.2 % share is used for child development schemes and only 2.4 % is allocated for the women-related programmes.

Source: timesofindia.indiatimes.com, February 24, 2010. “Women first? Not top priority for UPA”

Women group demanding Government to expand its limit of gender budgeting

Women groups are coming up with the demand that the gender budgeting should go beyond the programms and schemes run by Ministry of Women And Child Development. As per the Centre for Budget and Governance Accountability (CBGA), in the Union Budget 2009-10 many of the useful programms remained outside the purview of gender budgeting, which should be included this year. Women group have also demanded to include proper regulations of banks which will allow them to create adequate credit for women.

Source: economictimes.indiatimes.com, February 22, 2010. “Don’t limit gender budgeting to a ministry or two: Women group”

Telecom industry pins hopes on favorable govt policies

The Indian telecom industry, growing at a scorching pace in the last couple of years, is expecting favourable govt policies in the upcoming union budget. For further growth and advancement of this sector, the industry is hoping for some relaxation in the high tax structure from Union Finance Minister in the upcoming budget of 2010-11. Telecom firms are also demanding the availability of cheap credit, schemes to boost export and support to facilitate business and day to day transactions.

Source: www.hindu.com, February 16, 2010. “Telecom sector hoping for incentives”