Saturday, January 31, 2009

Educational Loans

The global economic recession and subsequent job loses allow for a good time (I’m not sure I should be saying as curtly, but it depends on how you look at it) to advance on one’s career by upgrading their educational skills by joining a good institution for higher studies. In such a situation, the expenses are well met through student loans; if you don’t have enough savings.

Private student loans are handy for the knowledge seeker in the sense, they generally have no collateral requirements, have an interest rate that’s fairly manageable and may need to be paid back once the applicant secures an employment (or may be six months from the time of course completion, as the case may be) once he/she has completed his/her studies.

College loans have always been a helping hand for the aspirers of knowledge. Most of the times, the availability of the loan depends very much on the institution in which one has secured an admission. It also allows students to not depend on their parent’s worth for pursuing higher education.

Friday, January 30, 2009

No proof required for LTA & Conveyance allowance claims

In a landmark ruling, the Supreme Court has said that employers are not under any statutory obligation to collect supporting evidence and furnish it to tax authorities while assessing Conveyance and Leave Travel Allowance (LTA) of their employees. Currently, claims without supporting bills are taxed.

The verdict came as a result of a plea from companies including L&T and ITI.

Quoting Times of India,
In its defense, the revenue department had argued that assessee companies were under statutory obligation under Income Tax Act, 1961, and relevant rules, to collect documentary proof to show that their employee(s) had actually utilized the amount paid towards the leave travel concession and conveyance allowance.

Rejecting the plea, the court in its order said: “The beneficiary of exemption under Section 10(5) (of the Income Tax Act) is an individual employee. There is no circular of Central Board of Direct Taxes (CBDT) requiring the employer under Section 192 to collect and examine the supporting evidence to the declaration to be submitted by an employee(s).”
So, until the tax authorities come up with a circular/amendment to clear this out (which I guess they might), claim all your LTA and Conveyance allowances without showing any bills.

More details here.

Thursday, January 29, 2009

India’s Per Capita Income grew by 12.7% in 2007-2008

According to Central Statistical Organization (CSO), the per capita income of India has increased to Rs. 33,283 in 2007-08; a healthy growth of 12.7%. The per capita income has been growing above 10% since 2003-04, rising almost 60%.

This is the result of the impressive economic growth rate recorded by India during this time period and is supposedly the indication of an overall improvement in the living standards of people.

I’m not sure how representative a figure this is, in a country that has 4 out of the top 10 richest people in the world, a fair amount of income inequality and a third of the population still living below the poverty line.

More details here.

Saturday, January 10, 2009

Inflation rates of India (2008)

This post tracks inflation rates of India for the year 2008. Before that, a few facts about inflation rate calculation in India.

- Inflation in India is based on Wholesale Price Index
- A set of 435 commodities are used for the WPI based inflation calculation
- The base year for WPI calculation is 1993-94
- WPI is available at the end of every week (generally Saturday), for a period of 1 year ended that day
- It has a time lag of 2 weeks (WPI for the year ended two weeks back will be available this week)

Inflation Graph


Inflation Rates (for 12 months ended on given date)

- 2008 Dec 27 - 5.91% (via)
- 2008 Dec 20 - 6.38% (via)
- 2008 Dec 13 - 6.61% (via)
- 2008 Dec 6 - 6.84% (via)
- 2008 Nov 29 - 8.0% (via)
- 2008 Nov 22 - 8.40% (via)
- 2008 Nov 15 - 8.56% (via)
- 2008 Nov 8 - 8.90% (via)
- 2008 Nov 1 - 8.98% (via)
- 2008 Oct 25 - 10.72% (via)
- 2008 Oct 18 - 10.68% (via)
- 2008 Oct 11 - 11.35% (via)
- 2008 Oct 4 - 11.44% (via)
- 2008 Sep 27 - 11.98% (via)
- 2008 Sep 20 - 11.99% (via)
- 2008 Sep 13 - 12.23% (via)
- 2008 Sep 6 - 12.09% (via)
- 2008 Aug 30 - 12.1% (via)
- 2008 Aug 23 - 12.34% (via)
- 2008 Aug 16 - 12.40% (via)
- 2008 Aug 09 - 12.63% (via)
- 2008 Aug 02 - 12.44% (via)
- 2008 Jul 26 - 12.01% (via)
- 2008 Jul 19 - 11.98% (via)
- 2008 Jul 12 - 11.89% (via)
- 2008 Jul 05 - 11.91% (via)
- 2008 Jun 28 - 11.89% (via)
- 2008 Jun 21 - 11.63% (via)
- 2008 Jun 14 - 11.42% (via)
- 2008 Jun 07 - 11.05% (via)
- 2008 May 31 - 8.75% (via)
- 2008 May 24 – 8.24% (via)
- 2008 May 17 – 8.1% (via)
- 2008 May 10 – 7.82% (via)
- 2008 May 03 – 7.83% (via)
- 2008 Apr 26 – 7.61% (via)
- 2008 Apr 19 – 7.57% (via)
- 2008 Apr 12 – 7.33% (via)
- 2008 Apr 05 – 7.14% (via)
- 2008 Mar 29 - 7.41% (via)
- 2008 Mar 22 - 7.0% (via)
- 2008 Mar 15 - 6.68% (via)
- 2008 Mar 08 - 5.92% (via)
- 2008 Mar 01 - 5.11% (via)
- 2008 Feb 23 - 5.02% (via)
- 2008 Feb 16 - 4.89% (via)
- 2008 Feb 09 - 4.35% (via)
- 2008 Feb 02 - 4.07% (via)
- 2008 Jan 26 - 4.11% (via)
- 2008 Jan 19 - 3.93 (via)
- 2008 Jan 12 - 3.83% (via)
- 2008 Jan 05 - 3.79% (via)

Addendum
Reuters maintain this graph on WPI, India.

Related Articles
- Inflation rates of India (2009)
- How is WPI inflation rate calculated in India?
- Commodities and their weight-ages in WPI calculation of India
- Base year and number of commodities used for inflation calculation in India
- The magic of Inflation

Originally posted on Tuesday, June 24, 2008

Thursday, January 1, 2009

Wait! Property prices to fall further!

Here's an indepth article about real estate prices in India, from rediff.

Few points from the article,
The recent housing boom was riding on the back of four broad factors -- rising incomes, job security, low property prices and interest rates, and tax benefits associated with buying a house.

A home loan is a person's show of confidence in his income earning capacity over the long term. As the demand for high-ticket loans falls, it also signifies a dip in the confidence in job security and future salary increments.

Says an industry analyst: "Major players in the premium segment have an operating margin of 50-55 per cent. On the contrary, in the mid-segment the margin is around 35 per cent."

"A minimum of 25 per cent correction can be expected. Correction in Tier-II and Tier-III cities will happen a little more. Even cities like Mumbai could see significant price correction," adds Mavani.

So, read on!