This is the right time for the salaried persons to invest in tax saving scheme, who have not thought of availing tax benefit, through saving and investment during the year. The government of India has given some concession to tax paying public in case they subscribe to certain specified schemes. This includes schemes launched by Government of India through bank and small saving schemes through post offices. The scheme introduced by private as well as public Mutual fund and Insurance companies are also allowed to provide 80 c benefit to income earners. The maximum investment, under the provision of 80 c of IT Act, could be made up to is Rs. One Lakh. This gives them tax concession up to Rupees Thirty thousand. In case benefit of health insurance is added the tax benefit becomes much more.
The month of December is coming to an end now and almost all salaried employees must be busy evaluating how to save taxes out of their earned income. Those who work in companies must be reminded by their account department to submit proof of their investment in specified scheme which they might have subscribed. Many employees started investing in systematic way and they would not have any difficulties in submitting the proof of their investment to avail tax benefit. But most of the employees do not subscribe to those schemes till last moment. Now is the time for those employees who want avail tax benefit through investment. Ofcourse now investment shall have to be in lump sum amount. Had they planned earlier it could have been much easier as they could have taken the benefit by installment payments. Now there is only three month more to complete the financial year and any investment to avail tax benefit shall have to be in lump sum amount only. The amount of investment for tax benefit for the year is maximum Rs One lakh. The investment for this purpose can be done through EPF, PPF, Insurance, SCSS, and Bank FD for five years and through post office instruments. Many of our readers have asked as to which investment instruments they should select to reap the best benefit.
This is a difficult questions to answer. Every salaried person may have their own priorities. All regular confirmed employees, whether in Government or in Private sector and public sector, would have EPF. Those who have taken loan for construction of home would also get tax concession. A portion of 80C would be covered by these contributions. So they might have to depend on other forms of instrument partly. But self employed persons like Doctors, Advocate, business women, artists ,who do not have PF shall have to depend on Post office instruments or on PPF and or ULIP, Life insurance or on Mutual funds. Our recommendations would be first to avail the benefit of 80c through PPF. It is completely safe, interest rate is high, and no income tax is required on earnings. But it has longer period to get back the money. In fact National saving certificate, Bank Fixed Deposit have shorter maturity period. The investment in PPF can be made only unto Rs.70,000/-.So for the balance Rs. 30,000/- investors would have to depend on other instruments. At this point of time the investment in ELSS of mutual fund or ULIP could be thought of. But one thing must be kept in mind that ULIP and ELSS are equity based so a risk element would always be there. No chicken hearted investors should invest in ELSS. Those who are young and brave they can invest in Mutual fund and reap higher benefit if they can remain invested for atleast five years. What about senior citizen who do not have salaried income but get higher pension and need to invest to make their income totally free from income tax? Senior citizen can invest in Senior Citizen saving Scheme. This is the best instrument for them. Why? Because SCSS provides highest interest in today’s market. It provides now 9% percent return per annum and that is the highest interest in the market. Those who have PPF could opt for it, for it gives interest free return. In case their account is more than fifteen years old then the money lying in the account could be taken out whenever they need. I do not recommend ELSS for senior citizen who is above 75 years. Younger persons can first subscribe to ELSS and keep it there for more than five years and reap good benefit. The maturity period of ELSS is three years.
No wonder, this is also the time when mutual fund houses and distributors aggressively push equity-linked savings schemes (ELSS) because one gets tax relief under section 80C for investing in these schemes. Returns from these schemes have been at par with the Sensex returns in the last three-five years. According to data from Value Research, a mutual fund rating agency, these schemes have returned almost 83 per cent in the last one year, as against 76 per cent by the Sensex. In the last three and five years, while these schemes have returned 9 and 21 per cent, the Sensex has returned 8 and 22 per cent, respectively.
The greatest benefit of ELSS is, if invested properly and for longer period, it provides market related returns. My recommendation would be to have a disciplined approach for availing tax benefit. Income earner should invest systematically from the beginning of the year a fixed amount for eleven month. This way it would not trouble them at the end of their year and they would be able to ride the volatility of the share market. It is true that ELSS gives better return in a longer term and can give dividend too without any income tax. This suggestion is for young investor only as long term investment may not suit the seniors.
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Monday, December 28, 2009
Monday, December 21, 2009
RBI NEEDS TO TAKE EFFECTIVE STEPS TO CONTAIN UNFLATION
The RBI is now in between two horns of a dilemma. It needs to decide whether growth is important or the tackling of inflation. The month of November has given sleepless night to both finance Ministry as well as RBI.After a stable October it was found that inflation has jumped up and it become 4.78%.The RBI has viewed the position seriously and is getting ready to take control of the situation. But how much monetary measures would be able to help in-case of such massive inflation. In fact much more fiscal measures would be required to chain in such unbridled inflation.
The finance Minister again stated that"there is inflationary pressure on food items>it is a matter of concern"The central government for the first time recommended the state Government to ensure that the public distribution system provides food grains at controlle3d rates to the poor people.In our column it was recommended that not only price of wheat and rice the price of vegetable and fish sould be chained in by state government.The food price index has gone up by16.71 percent during the month compared to last year. It is time to control inflation on food products especially before it gets our of control. A public outcry may develop n case prices don't go down during festive month of January. It is understood that RBI is set to issue a float rater bond shortly,after a gap of four years.according to informed source this is an indication that interest rates will rise sooner rather than later.
It is also a fact the prices of manufactured goods have also gone up as economic activities have gone up.The government is concerned of the inflation yet the Finance secretary said"it is not as if we are taken by surprise or there is any cause for any special emergency action",added Mr. Chawla , the finance secretary.
We however donot agree with the contention of the Finance secretary.We feel RBI would tighten key interest rates since the central Bank has revised the inflation forecast to 6.5% by ensuing march. But measures taken by central Bank would not be able to contain the inflation unless fiscal measures are taken. The availability of food products at a reasonable cost would be most important. how would that be possible?
The availability of food product has become world wide problem .Hence import of food product would not be easy at all. The government should have taken timely steps in allowing corporate sector to get into agriculture in collaboration with landlords and cultivators as their partners. This is measures were discussed in our column months earlier number of times.
Despite recommendations of Prime Minister's advisers most of states have not taken timely steps in this regards perhaps due to socio- political compulsion. This apathy of state Government would prove to be a costly mistake, now.
In the meantime, inflation more than trebled to 4.78 per cent during November on account of rising prices of food items like potato, sugar and pulses, and may prompt the Reserve Bank to squeeze money supply to tame price rise.
The wholesale price-based inflation jumped to nearly 5 per cent from 1.34 per cent in October, according to the monthly inflation data released recently.
Attributing rising prices to supply side constraints, Suresh Tendulkar, former chairman of the Prime Minister's Economic Advisory Council (PMEAC), said the RBI could take steps to withdraw liquidity to tame rising prices. But the apex bank is slated to announce review of its annual credit policy next month.
.
The monthly data, which was released by the government for the second time, shows that potato prices have surged by a whooping 141 per cent during the past eight months, followed by sugar 37 per cent, pulses 32 per cent and onion 20 per cent.
On the other hand, minerals, edible oils and leather products have become cheaper since March 2009.
The international raw material prices are rising so domestic prices are also seeing a movement upward. it is imperative now that the government needs to manage supply shortages.
The central bank has been increasing money supply for industry to tide over the global financial crisis.
The rising prices are an issue of concern for the government as a worried Congress President Sonia Gandhi had earlier said during the week that "price rise of essential commodities continues to be a matter of highest concern to us."
Among the manufactured products, textiles rose by 1.4 per cent, paper and paper products by 0.1 per cent, while chemical and chemical products increased by 0.1 per cent.
Commenting on the price rise Yes Bank's chief economist Suhubhda Rao said, "a sharper rise in manufacturing clearly indicates that the pricing power is gradually returning as the broad group within manufacturing products have registered month-on-month increase in the index numbers."
Rao added that firming inflation will be on the RBI radar where the CRR could be hiked in December by 25-50 basis points.
The new year would not become a great year initially but from the month os March things would start happening. The new financial year may usher in a stabler economy so far as India ,china and Brazil is concerned.The share market is expected to boom despite inflation and despite higher rate of interest to be fixed by RBI. USA would not increase the interest as the economy would take time to revive.Citibank has returned back government's money as it has become self sufficient . Yet the condition of many banks are still in weak.Recently the President of America has appealed to bankers to distribute more money to business sector especially medium scale industries continuously. In India a similar type of help could be organized for development of micro sector and for modernization of agriculture.We have been recommending through our column to state government to allow entry of corporate sector into the field of agriculture.This would be a great step.Always Assam need not follow other agriculturally vibrant states. Sometime it can lead the country into a new agricultural development through introduction corporate sector as the prime mover in joint sector.This was what has been done in China with amazing results. Would Assam Government think it over soon?
------------------------------------------------------------
--------------------------------------------------------------------------------
The finance Minister again stated that"there is inflationary pressure on food items>it is a matter of concern"The central government for the first time recommended the state Government to ensure that the public distribution system provides food grains at controlle3d rates to the poor people.In our column it was recommended that not only price of wheat and rice the price of vegetable and fish sould be chained in by state government.The food price index has gone up by16.71 percent during the month compared to last year. It is time to control inflation on food products especially before it gets our of control. A public outcry may develop n case prices don't go down during festive month of January. It is understood that RBI is set to issue a float rater bond shortly,after a gap of four years.according to informed source this is an indication that interest rates will rise sooner rather than later.
It is also a fact the prices of manufactured goods have also gone up as economic activities have gone up.The government is concerned of the inflation yet the Finance secretary said"it is not as if we are taken by surprise or there is any cause for any special emergency action",added Mr. Chawla , the finance secretary.
We however donot agree with the contention of the Finance secretary.We feel RBI would tighten key interest rates since the central Bank has revised the inflation forecast to 6.5% by ensuing march. But measures taken by central Bank would not be able to contain the inflation unless fiscal measures are taken. The availability of food products at a reasonable cost would be most important. how would that be possible?
The availability of food product has become world wide problem .Hence import of food product would not be easy at all. The government should have taken timely steps in allowing corporate sector to get into agriculture in collaboration with landlords and cultivators as their partners. This is measures were discussed in our column months earlier number of times.
Despite recommendations of Prime Minister's advisers most of states have not taken timely steps in this regards perhaps due to socio- political compulsion. This apathy of state Government would prove to be a costly mistake, now.
In the meantime, inflation more than trebled to 4.78 per cent during November on account of rising prices of food items like potato, sugar and pulses, and may prompt the Reserve Bank to squeeze money supply to tame price rise.
The wholesale price-based inflation jumped to nearly 5 per cent from 1.34 per cent in October, according to the monthly inflation data released recently.
Attributing rising prices to supply side constraints, Suresh Tendulkar, former chairman of the Prime Minister's Economic Advisory Council (PMEAC), said the RBI could take steps to withdraw liquidity to tame rising prices. But the apex bank is slated to announce review of its annual credit policy next month.
.
The monthly data, which was released by the government for the second time, shows that potato prices have surged by a whooping 141 per cent during the past eight months, followed by sugar 37 per cent, pulses 32 per cent and onion 20 per cent.
On the other hand, minerals, edible oils and leather products have become cheaper since March 2009.
The international raw material prices are rising so domestic prices are also seeing a movement upward. it is imperative now that the government needs to manage supply shortages.
The central bank has been increasing money supply for industry to tide over the global financial crisis.
The rising prices are an issue of concern for the government as a worried Congress President Sonia Gandhi had earlier said during the week that "price rise of essential commodities continues to be a matter of highest concern to us."
Among the manufactured products, textiles rose by 1.4 per cent, paper and paper products by 0.1 per cent, while chemical and chemical products increased by 0.1 per cent.
Commenting on the price rise Yes Bank's chief economist Suhubhda Rao said, "a sharper rise in manufacturing clearly indicates that the pricing power is gradually returning as the broad group within manufacturing products have registered month-on-month increase in the index numbers."
Rao added that firming inflation will be on the RBI radar where the CRR could be hiked in December by 25-50 basis points.
The new year would not become a great year initially but from the month os March things would start happening. The new financial year may usher in a stabler economy so far as India ,china and Brazil is concerned.The share market is expected to boom despite inflation and despite higher rate of interest to be fixed by RBI. USA would not increase the interest as the economy would take time to revive.Citibank has returned back government's money as it has become self sufficient . Yet the condition of many banks are still in weak.Recently the President of America has appealed to bankers to distribute more money to business sector especially medium scale industries continuously. In India a similar type of help could be organized for development of micro sector and for modernization of agriculture.We have been recommending through our column to state government to allow entry of corporate sector into the field of agriculture.This would be a great step.Always Assam need not follow other agriculturally vibrant states. Sometime it can lead the country into a new agricultural development through introduction corporate sector as the prime mover in joint sector.This was what has been done in China with amazing results. Would Assam Government think it over soon?
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Wednesday, December 16, 2009
A Messiah for distressed humanity :Dr. M.C. Bhuyan
During Mid Sixties of last century, Guwahati was not as proud of HEALTH CARE FASCILITIES as it is now. Cardio- logical treatments were almost in non existence. Dr. M. C. Bhuyan’s arrival in the city brought about a change in the healthcare scenarios of the city as far as cardiology was concerned. Heart patients of greater Guwahati areas heaved a sigh of relief. His presence was like a fresh air to the society. A most cultured human being his motto of life was “Be good and do well” to distressed humanity.
He joined Guwahati Medical College as an Assistant professor and later founded the department of Cardiology. The department grew under his caring eyes and lots of brilliant Cardiac Doctors were born in due course. Dr. Bhuyan was not only known as a great teacher and medical practitioner but he was known for his humanistic approach towards needy patience. He always looked younger to his age and had an electrifying personality. A person of few words yet he was approachable. His greatest quality was compassion.
I came into his contact in early sixties. We were his neighbour. At that time, while completing my Master in Economics I was awaiting for placement calls. Dr. Bhuyan was first to advise me to pursue further studies in management and to visit USA for higher education and training. It was also he who advised me to compete for Rotary International’s Scholarship for business managers. I still feel indebted to him for his sane advice during my early years of life. In effect, my entire career in private sector enterprise was built up on his empowerment and advice. Except at the fag end of my career, in RBI, I had not accepted any lucrative public sector governmental jobs despite several offers. This was possible for the empowerment of Dr. Bhuyan. He emphatically told us that twentieth century would be the time for private sector enterprises and to swim during this period in private business environment would be greatly rewarding. It was he who could be considered as our mentor in business management though he himself was an academician and a Doctor.
A few friends of mine, who are established lawyers, Doctors and painters today, were also beneficiary of his advice. They confided me that whatever their contribution to the society today were only due to the practical advice of Dr. Bhuyan, in their formative period.
“For a strong mental strength you need strong physical stamina. So in younger age, you need to build up physical strength first, to enable you to build up mental prowess which ultimately will trigger self confidence”. These were the remark of Dr. Bhuyan. He advised us to be frugal in our eating habits. As Soon as we touched forty years, he advised us to stop having omelets in the morning with four eggs.
”One egg a week would keep you healthy. Why waste food by eating more and become unhealthy as you grow up in age”. We remembered his advised till date.
During 1963 well known entrepreneurs PC Goenka and late B Himmatsingka had set up India Carbon in collaboration with Great Lakes Carbon Corporation of USA. They wanted to ensure an ideal health care system for the enterprise, despite existence of ESI, of its own. It was Dr. M.C. Bhuyan who gave them the model of an ideal Health care system. Slowly from a Medical Consultant Dr. Bhuyan became friend and philosopher to industry. Industrialists in and around Guwahati were benefited by his quality advices.
Dr. Bhuyan was a humanist. Once I urged him to provide medical advice to then well-known planter BhabendraNath Baruah of Golaghat WHO WAS GOING THROUGH a SERIOUS HEALTH PROBLEM. As the health condition of Mr. Baruah deteriorated it was impossible for him to travel to Guwahati from Golaghat . Observing the predicament of the family he decided to travel to Golaghat to examine the patient .That showed his rare quality of human concern. He was then the professor of Medical College at
Guuwhati and traveled to Golghat on a Sunday and came back the same evening. He only accepted hospitality and transportation. When fee was given, he refused to accept and told that he came to examine the patient and also to learn more of the sickness. This kind of behaviour is rarely found in professionals of today. There are however a few Doctors even now keeping the flag of self less service flying.
Dr. Bhuyan was a gentleman physician. He had no enemy. Everyone respected him and he also gave full honour to his patients. He endeared himself from his friends,students and patients for his immaculate behaviour. He maintained himself with grace and discipline. He always looked much younger to his age. When he died on 25th November he was 84 years old but really he looked 74 years or younger. Dr. Bhuyan’s departure would create a void not only among medical fraternity but also within the civil society of Assam. Today he is no more but his quality of dedicated service, loving care to his patience, humanistic approach have survived showing the path of compassion and value creating service. Almighty would give peace to his soul .we salute to his humanistic attitude towards life.
-------------------------------------------------------
He joined Guwahati Medical College as an Assistant professor and later founded the department of Cardiology. The department grew under his caring eyes and lots of brilliant Cardiac Doctors were born in due course. Dr. Bhuyan was not only known as a great teacher and medical practitioner but he was known for his humanistic approach towards needy patience. He always looked younger to his age and had an electrifying personality. A person of few words yet he was approachable. His greatest quality was compassion.
I came into his contact in early sixties. We were his neighbour. At that time, while completing my Master in Economics I was awaiting for placement calls. Dr. Bhuyan was first to advise me to pursue further studies in management and to visit USA for higher education and training. It was also he who advised me to compete for Rotary International’s Scholarship for business managers. I still feel indebted to him for his sane advice during my early years of life. In effect, my entire career in private sector enterprise was built up on his empowerment and advice. Except at the fag end of my career, in RBI, I had not accepted any lucrative public sector governmental jobs despite several offers. This was possible for the empowerment of Dr. Bhuyan. He emphatically told us that twentieth century would be the time for private sector enterprises and to swim during this period in private business environment would be greatly rewarding. It was he who could be considered as our mentor in business management though he himself was an academician and a Doctor.
A few friends of mine, who are established lawyers, Doctors and painters today, were also beneficiary of his advice. They confided me that whatever their contribution to the society today were only due to the practical advice of Dr. Bhuyan, in their formative period.
“For a strong mental strength you need strong physical stamina. So in younger age, you need to build up physical strength first, to enable you to build up mental prowess which ultimately will trigger self confidence”. These were the remark of Dr. Bhuyan. He advised us to be frugal in our eating habits. As Soon as we touched forty years, he advised us to stop having omelets in the morning with four eggs.
”One egg a week would keep you healthy. Why waste food by eating more and become unhealthy as you grow up in age”. We remembered his advised till date.
During 1963 well known entrepreneurs PC Goenka and late B Himmatsingka had set up India Carbon in collaboration with Great Lakes Carbon Corporation of USA. They wanted to ensure an ideal health care system for the enterprise, despite existence of ESI, of its own. It was Dr. M.C. Bhuyan who gave them the model of an ideal Health care system. Slowly from a Medical Consultant Dr. Bhuyan became friend and philosopher to industry. Industrialists in and around Guwahati were benefited by his quality advices.
Dr. Bhuyan was a humanist. Once I urged him to provide medical advice to then well-known planter BhabendraNath Baruah of Golaghat WHO WAS GOING THROUGH a SERIOUS HEALTH PROBLEM. As the health condition of Mr. Baruah deteriorated it was impossible for him to travel to Guwahati from Golaghat . Observing the predicament of the family he decided to travel to Golaghat to examine the patient .That showed his rare quality of human concern. He was then the professor of Medical College at
Guuwhati and traveled to Golghat on a Sunday and came back the same evening. He only accepted hospitality and transportation. When fee was given, he refused to accept and told that he came to examine the patient and also to learn more of the sickness. This kind of behaviour is rarely found in professionals of today. There are however a few Doctors even now keeping the flag of self less service flying.
Dr. Bhuyan was a gentleman physician. He had no enemy. Everyone respected him and he also gave full honour to his patients. He endeared himself from his friends,students and patients for his immaculate behaviour. He maintained himself with grace and discipline. He always looked much younger to his age. When he died on 25th November he was 84 years old but really he looked 74 years or younger. Dr. Bhuyan’s departure would create a void not only among medical fraternity but also within the civil society of Assam. Today he is no more but his quality of dedicated service, loving care to his patience, humanistic approach have survived showing the path of compassion and value creating service. Almighty would give peace to his soul .we salute to his humanistic attitude towards life.
-------------------------------------------------------
MIDDLE CLASS TURNS MILLIONAIRE
THE MILLIONAIRE: CHANGING FACE OF MIDDLE CLASS
G.P.BAROOWAH
During my four months stay in USA I have done some research to find out how most people have become millionaire here ? Is it through business and through investment only? Or through regular habits of saving and investment? To my utter surprise I had to conclude that most of the millionaire in USA have become millionaire now , not from high family business cconnectionnbsp; , inheritance through land lord community's assets and from shares of Industrial investment but from working as a serviceman and through regular saving and investment habit. Approximately 33% millionaire today came from middle class who never inherited fortune from their parents. Even Bill gates and Warren buffet's wealth were created during their life time and not from inheritance. This is a very good news for aspiring midle class of India.
It is a fact that the United States booms when it comes to creating millionaires.Amrica has highest number of millionaires in the world since last fewyears.The nation counted 8.9 million millionaire households in 2005 -- that's more American millionaires than ever before, according to British market researcher TNS Financial Services. It was the third consecutive year the number of U.S. millionaire households rose, and the total number of millionaires has jumped 62 percent since 2002. The study defined a millionaire as anyone who has a net worth of $1 million or more, excluding a primary residence. Even during the period of recession though number of millionaire has reduced by 10% yet America boast highest number oi millionaire.I was pleasently surprised to find that One third of these millionaire are self made scientist, professors, consultant, lawyers, Doctors and Business executives and cinema stars and players.
What are the most important qualities that made them millionaire? We asked a few working persons, who are millionaire at San Jose. They wanted to remain anonymous but confided to us that two most important characteristics could be (a) capacity to dream big and (b) to cultivate the habit of enormous patience. There are a few other qualities that are necessary for building up fortune. they added. Those are frugal habits, avoidance of impulsive decision making, development of courage, to become optimist and understanding the qualities of self discipline. In modern times,the most millionaire cannot be recognised by their appearance as they remain frugal in habits. Even billionaires like Warren Buffet and Narayan Murthy live in modest Houses and drive ordinary commoners automobiles.
In our quest very interesting data was revealed that the average millionaire household in USA had a net worth of roughly $2.2 million, and about half of the heads of these households are 58 years or older. Forty-five percent of millionaires are retired persons.
The highest number of millionaire residents of USA are located in California. It's no surprise that Los Angeles County topped the list of millionaire with 262,800 households qualifying for millionaire status. While the label "millionaire" may conjure images of business moguls like Bill Gates and Warren Buffet, the TNS study found that just 19 percent of U.S. millionaires made their wealth through all or part of a private business or professional practice. Apparently, the lion's share of the country's millionaires made their money the old-fashioned way, working, saving and investing. This result inspired me to write this article for our readers because in case our readers also try sincerely that can become millionaire. How much time middle class( working class) took to become a millionaire ?The most of the millionaire took Thirty year to become millionaire out of their regular saving and investment habits. What for they have been accumulating wealth?
TNS reported that the most common goal mentioned by the millionaires in the survey was to "assure a comfortable standard of living during retirement." Lesser financial goals listed included leaving a big inheritance to children and charitable giving.
One of the millionaire technocrat said that to become a millionaire, beside his own qualities described above, it is necessary to have a mentor. Many people have become millionaire because they had good guidance from their mentor.The most important example is the driver of Narayan Murthy who became also a millionaire due to coaching of his mentor.
The united states have 8.9 million millionaire where as Russa has 87,000 millionaire and China ha 300,000 millionaire. In my research it was found one of the highest concentration of millionaire is in Silicon valley. In Santa Clara county of silicon valley where I visited found that one out of twelve persons are millionaire. It is a well known fact that Santa Clara is a county of service class population who work as consultant, teachers, office executives , bankers or IT and communication professional. How much salary these professional were making? The most of them made yearly 36,000 dollar initially after five years 1,,50,000 dollar per year and later salary rose to 2.60,000 or more per year beside royalty etc.They regularly paid taxes amounting to 40%(both state and federal).
Before world war 1 most millionaire were from landowner community. Before and after world war 11 most of the millionaire were from business community. Since last sixty years
profile of millionaire changed to middle class. By the end of twentieth century one third of the millionaire came from middle class. During this time millionaire included, scientist, teachers, IT and communication engineers, Business executives, lawyers, Doctors, and architect . I, therefore like to conclude that middle class people of Assam can become also a millionaire in terms of Rupees in-case they save and invest well in thirty years.Our aim however should not be only to become a millionaire but to make fortune while remaining in the path of truth by dint of their education and beautiful mind. For whom do they need money?. Initially for their livelihood, then to live comfortably during days of retirement and there after for the charity of the society, who fostered them.
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G.P.BAROOWAH
During my four months stay in USA I have done some research to find out how most people have become millionaire here ? Is it through business and through investment only? Or through regular habits of saving and investment? To my utter surprise I had to conclude that most of the millionaire in USA have become millionaire now , not from high family business cconnectionnbsp; , inheritance through land lord community's assets and from shares of Industrial investment but from working as a serviceman and through regular saving and investment habit. Approximately 33% millionaire today came from middle class who never inherited fortune from their parents. Even Bill gates and Warren buffet's wealth were created during their life time and not from inheritance. This is a very good news for aspiring midle class of India.
It is a fact that the United States booms when it comes to creating millionaires.Amrica has highest number of millionaires in the world since last fewyears.The nation counted 8.9 million millionaire households in 2005 -- that's more American millionaires than ever before, according to British market researcher TNS Financial Services. It was the third consecutive year the number of U.S. millionaire households rose, and the total number of millionaires has jumped 62 percent since 2002. The study defined a millionaire as anyone who has a net worth of $1 million or more, excluding a primary residence. Even during the period of recession though number of millionaire has reduced by 10% yet America boast highest number oi millionaire.I was pleasently surprised to find that One third of these millionaire are self made scientist, professors, consultant, lawyers, Doctors and Business executives and cinema stars and players.
What are the most important qualities that made them millionaire? We asked a few working persons, who are millionaire at San Jose. They wanted to remain anonymous but confided to us that two most important characteristics could be (a) capacity to dream big and (b) to cultivate the habit of enormous patience. There are a few other qualities that are necessary for building up fortune. they added. Those are frugal habits, avoidance of impulsive decision making, development of courage, to become optimist and understanding the qualities of self discipline. In modern times,the most millionaire cannot be recognised by their appearance as they remain frugal in habits. Even billionaires like Warren Buffet and Narayan Murthy live in modest Houses and drive ordinary commoners automobiles.
In our quest very interesting data was revealed that the average millionaire household in USA had a net worth of roughly $2.2 million, and about half of the heads of these households are 58 years or older. Forty-five percent of millionaires are retired persons.
The highest number of millionaire residents of USA are located in California. It's no surprise that Los Angeles County topped the list of millionaire with 262,800 households qualifying for millionaire status. While the label "millionaire" may conjure images of business moguls like Bill Gates and Warren Buffet, the TNS study found that just 19 percent of U.S. millionaires made their wealth through all or part of a private business or professional practice. Apparently, the lion's share of the country's millionaires made their money the old-fashioned way, working, saving and investing. This result inspired me to write this article for our readers because in case our readers also try sincerely that can become millionaire. How much time middle class( working class) took to become a millionaire ?The most of the millionaire took Thirty year to become millionaire out of their regular saving and investment habits. What for they have been accumulating wealth?
TNS reported that the most common goal mentioned by the millionaires in the survey was to "assure a comfortable standard of living during retirement." Lesser financial goals listed included leaving a big inheritance to children and charitable giving.
One of the millionaire technocrat said that to become a millionaire, beside his own qualities described above, it is necessary to have a mentor. Many people have become millionaire because they had good guidance from their mentor.The most important example is the driver of Narayan Murthy who became also a millionaire due to coaching of his mentor.
The united states have 8.9 million millionaire where as Russa has 87,000 millionaire and China ha 300,000 millionaire. In my research it was found one of the highest concentration of millionaire is in Silicon valley. In Santa Clara county of silicon valley where I visited found that one out of twelve persons are millionaire. It is a well known fact that Santa Clara is a county of service class population who work as consultant, teachers, office executives , bankers or IT and communication professional. How much salary these professional were making? The most of them made yearly 36,000 dollar initially after five years 1,,50,000 dollar per year and later salary rose to 2.60,000 or more per year beside royalty etc.They regularly paid taxes amounting to 40%(both state and federal).
Before world war 1 most millionaire were from landowner community. Before and after world war 11 most of the millionaire were from business community. Since last sixty years
profile of millionaire changed to middle class. By the end of twentieth century one third of the millionaire came from middle class. During this time millionaire included, scientist, teachers, IT and communication engineers, Business executives, lawyers, Doctors, and architect . I, therefore like to conclude that middle class people of Assam can become also a millionaire in terms of Rupees in-case they save and invest well in thirty years.Our aim however should not be only to become a millionaire but to make fortune while remaining in the path of truth by dint of their education and beautiful mind. For whom do they need money?. Initially for their livelihood, then to live comfortably during days of retirement and there after for the charity of the society, who fostered them.
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Senior citizen Saving Scheme is a great step today
Numbers of senior citizen readers have written to us asking whether Governament of India's SCSS has been withdrawn ? Or is it still in vogue ? Do investments in the scheme are still profitable to retired persons even now?
I would like to emphatically state for any retired person, as on date, SCSS is one of the best scheme to invest, especially during he present time whem al he banks have lowered down the interest rates on deposits. Some of the senior citizen could not decide where to invest their money on maturity. One lady wrote that she stayed invested for last three years in a NATIONALIZED BANK wit an annual return of 9.5%. On maturity of the FD CERTIFICATE the same bank is offering her much lower rate of interest bringing her annual income. She is asking where she can invest with higher interest rate? Another gentleman was old by the BANK THAT Senior citizen scheme with higher interest is withdrawn. This not a fact .GOVERNMENT OF INDIA'S scheme is still in vogue and that is the best scheme gong in the market for retired persons.
The Senior Citizen Savings Scheme (SCSS) is often referred to as the best alternative for the elderly to invest their money. Is this justified? Here's a detailed look at all the features of the Senior Citizen Savings Scheme, and an analysis of whether you should invest in it or not.
The investment can be made only by people of 60 years of age or above.
People who have retired on superannuation or under a voluntary retirement scheme can also invest if they are at least 55 years old.
The account can be opened as a single account, or can be opened in joint names. The joint account holder can only be the spouse.
There is no age limit applicable for the joint account holder (spouse).
In case of the death of the primary account holder, the spouse can continue the account – this is subject to the condition that his / her total investment in SCSS should not exceed Rs. 15 Lakhs.
People retiring from defense services are eligible to invest in the scheme irrespective of the age limit, but there are some additional conditions applicable
The Senior Citizen Savings Scheme account can be opened only by individuals. It can not be opened by Non-Resident Indians (NRI), Persons of Indian Origin (PIO) and Hindu Undivided Families (HUF).
For people between 55 and 60 years of age, the amount invested in SCSS has to come from their retirement benefits.
For persons over the age of 60 years, there is no restriction on the source of funds invested. The Senior Citizen's Savings Scheme has a maturity of 5 years, which is extendable by 3 years.
The rate of interest offered on the investment is 9% per annum and account can be opened in post office or in nationalised. perhaps only icici is the only private sector bank that handles SCSS.
There is Section 80C income tax benefit on the investment made in SCSS, but there is no income tax benefit on the interest earned from it.
The investment made in the Senior Citizen Savings Scheme on or after 1st April, 2008 is deductible from your income under section 80C of the Income Tax Act. The interest earned on the deposit is fully taxable.
The income tax applicable is deducted at source. If your income is not taxable, you can provide form 15H or 15G so that no tax is deducted at source.
The tax is deducted at source only if the total interest in a year is over Rs. 5,000.
The account can be opened as a single account, or can be opened in joint names. The joint account holder can only be the spouse.
There is no age limit applicable for the joint account holder (spouse).
In case of the death of the primary account holder, the spouse can continue the account – this is subject to the condition that his / her total investment in SCSS should not exceed Rs. 15 Lakhs.
The interest is paid out every 3 months. This means that SCSS can provide a steady, periodic income. There is no provision for cumulative income.The SCSS is backed by the Government of India, and thus, carries a sovereign guarantee for principal and interest payments. Therefore, it is among the safest investment avenues available in India.
One reader has asked if he wants to invest more than fifteen lakh where should he invest? MY RECOMMENDATIONS WOULD BE ,without taking any risk, Monthly income plan with Bonus from post office. BUT one must remember that if you look for absolute safety a time would come when your money value would deplete and it may not possible sometime to buy even potato. So invest in equity also to take care of inflation.
Since the scheme is absolutely safe, and provides periodic payment of interest, retirees and senior citizens can invest a portion of their retirement corpus in the Senior Citizen Savings Scheme.
-----------------------------------------------------------
I would like to emphatically state for any retired person, as on date, SCSS is one of the best scheme to invest, especially during he present time whem al he banks have lowered down the interest rates on deposits. Some of the senior citizen could not decide where to invest their money on maturity. One lady wrote that she stayed invested for last three years in a NATIONALIZED BANK wit an annual return of 9.5%. On maturity of the FD CERTIFICATE the same bank is offering her much lower rate of interest bringing her annual income. She is asking where she can invest with higher interest rate? Another gentleman was old by the BANK THAT Senior citizen scheme with higher interest is withdrawn. This not a fact .GOVERNMENT OF INDIA'S scheme is still in vogue and that is the best scheme gong in the market for retired persons.
The Senior Citizen Savings Scheme (SCSS) is often referred to as the best alternative for the elderly to invest their money. Is this justified? Here's a detailed look at all the features of the Senior Citizen Savings Scheme, and an analysis of whether you should invest in it or not.
The investment can be made only by people of 60 years of age or above.
People who have retired on superannuation or under a voluntary retirement scheme can also invest if they are at least 55 years old.
The account can be opened as a single account, or can be opened in joint names. The joint account holder can only be the spouse.
There is no age limit applicable for the joint account holder (spouse).
In case of the death of the primary account holder, the spouse can continue the account – this is subject to the condition that his / her total investment in SCSS should not exceed Rs. 15 Lakhs.
People retiring from defense services are eligible to invest in the scheme irrespective of the age limit, but there are some additional conditions applicable
The Senior Citizen Savings Scheme account can be opened only by individuals. It can not be opened by Non-Resident Indians (NRI), Persons of Indian Origin (PIO) and Hindu Undivided Families (HUF).
For people between 55 and 60 years of age, the amount invested in SCSS has to come from their retirement benefits.
For persons over the age of 60 years, there is no restriction on the source of funds invested. The Senior Citizen's Savings Scheme has a maturity of 5 years, which is extendable by 3 years.
The rate of interest offered on the investment is 9% per annum and account can be opened in post office or in nationalised. perhaps only icici is the only private sector bank that handles SCSS.
There is Section 80C income tax benefit on the investment made in SCSS, but there is no income tax benefit on the interest earned from it.
The investment made in the Senior Citizen Savings Scheme on or after 1st April, 2008 is deductible from your income under section 80C of the Income Tax Act. The interest earned on the deposit is fully taxable.
The income tax applicable is deducted at source. If your income is not taxable, you can provide form 15H or 15G so that no tax is deducted at source.
The tax is deducted at source only if the total interest in a year is over Rs. 5,000.
The account can be opened as a single account, or can be opened in joint names. The joint account holder can only be the spouse.
There is no age limit applicable for the joint account holder (spouse).
In case of the death of the primary account holder, the spouse can continue the account – this is subject to the condition that his / her total investment in SCSS should not exceed Rs. 15 Lakhs.
The interest is paid out every 3 months. This means that SCSS can provide a steady, periodic income. There is no provision for cumulative income.The SCSS is backed by the Government of India, and thus, carries a sovereign guarantee for principal and interest payments. Therefore, it is among the safest investment avenues available in India.
One reader has asked if he wants to invest more than fifteen lakh where should he invest? MY RECOMMENDATIONS WOULD BE ,without taking any risk, Monthly income plan with Bonus from post office. BUT one must remember that if you look for absolute safety a time would come when your money value would deplete and it may not possible sometime to buy even potato. So invest in equity also to take care of inflation.
Since the scheme is absolutely safe, and provides periodic payment of interest, retirees and senior citizens can invest a portion of their retirement corpus in the Senior Citizen Savings Scheme.
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BHOT JALOKIA : HOTEST CHILLIES OF HE WORLD
During my visit to USA DURING 2006 a Professor friend of mine, working in New Mexico State University, sent me an e -mail as to how Bhot Jolokia was making waves in the research laboratory of his university. I still remember his excitement till today. He excitedly informed me that the hottest of all spices is believed to be the “Bhut Jolokia”, belonging to the capsicum Chinese variety which was measured at 1,001,304 Scoville Heat Units (SHU), at the New Mexico State University, Las Cruces, New Mexico, USA, on September 9 2006.
Following the research results some folks got together for a taste test of the bhut jolokia and found out that it is indeed hot hot enough to use as a weapon Pepper sprays and elephant repellent. (It is reported that it keeps the large animals away from crops). I still remember his excitement. It was just the beginning. Today BHOT JOLOKIA IS wearing the crown of hottest chilies of the world following the reorganization by Guinness Book of World Records. Incidentally according to guineas record the spelling is ‘BHUT’ as against popularly known word of ‘bhot’. THE SPELLING WOULD BE VERY IMPORTANT AS THE TIME PASS BY and as the product gets greater trade value.
I can assume that in years to come capsicum Chinese could be a billion dollar business all over the world and the name must be protected from now onward. My request to AGRICULTURE DEPARTMENT of Assam would be to ensure the trade mark patent of bhot jalokia as soon as possible. Otherwise someone else in the world would cultivate the same variety in Mexico or in California and name it ‘Bhut Jolokia’ and try to patent it, as they did in case of Basmati rice. ( After a long protected battle matter was shorted out due to effort of punjub jat lobby.)
During my recent visit to California I READ THE FOLLOWING NEWS IN A BLOG :
“FIFTY bhut jolokia seeds arrive in the mail. Armed with a seedling heating pad and a small hothouse as well as a desire to burn my lips off, I plant the seeds in a seedling starter kit I bought at K-mart. During planting, a spot under my eye feels like it has battery acid on it. I must have rubbed some capsacicum on it. I think these seeds are the real deal”. From the above it is apparent that already experimentation for cultivators of ‘ BHOT JALOKIA in USA have started
It must be remembered that more than farming of any capsicum or Jalapeños the real money is made out of producing and extracting, oil, sauce and dry powders from the chilies, all over the world. The same will be the case with Bhot Jalokia. On my return from USA recently , it was nice to read from a news paper report of my friend Ajit Patowari that some of the Indian entrepreneurs have already started marketing various products produced out of BHOT JALOKIA and even started EXPORTING. My congratulations to local entrepreneurship. But my humble suggestion is to patent the name of the product so that no one can use the same brand name. Perhaps all of us are aware that wine produce out of grapes cultivated in the Particular district of France can only be sold as CHAMPAGNE. No one else can use that brand name even their wine is produced from better grapes from California or Bangalore.
During my stay in California this summer I read in a magazine that the quality of capsicum Chinese has tremendous medicinal values. I was not aware of these qualities:
Alternative Medicine practitioners are realizing that healing herbs should be part of their arsenal against disease. The newest touted natural herb is Capsicum, found in cayenne pepper. It has many benefits whether taken internally or externally. When taken internally, capsicum is an antibacterial which will encourage healing and deflect infections while slowing the absorption of fat in the intestines to help fight obesity. Because this natural herbal remedy is a stimulant, it improves circulation. Capsicum will also stabilize blood pressure and lower cholesterol. Herbalists are finding capsicum is useful in fighting a variety of ailments. I am told our tribal population located in foothills of northeast Himalayas knew of the medicinal values. BHOT JOLOKIAS ARE USED for treatment of stomach ailment by Assamese people also.
My humble suggestion to local entrepreneurs is to have tie up with someone from GERMANY, ITALY OR MEXICO FOR PRODUCTION OF VARIOUS bye- PRODUCTS OUT OF BHOT JALOKIA AND BUILD UP LASTING RELATIONS FOR MARKETING. If properly marketed sauce produce out of Bhot jolokia would be as popular as Tabasco, Capsico AND chirocha hot sauce. MAY BE it would be much MORE popular for its MEDICINAL VALUES.
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Following the research results some folks got together for a taste test of the bhut jolokia and found out that it is indeed hot hot enough to use as a weapon Pepper sprays and elephant repellent. (It is reported that it keeps the large animals away from crops). I still remember his excitement. It was just the beginning. Today BHOT JOLOKIA IS wearing the crown of hottest chilies of the world following the reorganization by Guinness Book of World Records. Incidentally according to guineas record the spelling is ‘BHUT’ as against popularly known word of ‘bhot’. THE SPELLING WOULD BE VERY IMPORTANT AS THE TIME PASS BY and as the product gets greater trade value.
I can assume that in years to come capsicum Chinese could be a billion dollar business all over the world and the name must be protected from now onward. My request to AGRICULTURE DEPARTMENT of Assam would be to ensure the trade mark patent of bhot jalokia as soon as possible. Otherwise someone else in the world would cultivate the same variety in Mexico or in California and name it ‘Bhut Jolokia’ and try to patent it, as they did in case of Basmati rice. ( After a long protected battle matter was shorted out due to effort of punjub jat lobby.)
During my recent visit to California I READ THE FOLLOWING NEWS IN A BLOG :
“FIFTY bhut jolokia seeds arrive in the mail. Armed with a seedling heating pad and a small hothouse as well as a desire to burn my lips off, I plant the seeds in a seedling starter kit I bought at K-mart. During planting, a spot under my eye feels like it has battery acid on it. I must have rubbed some capsacicum on it. I think these seeds are the real deal”. From the above it is apparent that already experimentation for cultivators of ‘ BHOT JALOKIA in USA have started
It must be remembered that more than farming of any capsicum or Jalapeños the real money is made out of producing and extracting, oil, sauce and dry powders from the chilies, all over the world. The same will be the case with Bhot Jalokia. On my return from USA recently , it was nice to read from a news paper report of my friend Ajit Patowari that some of the Indian entrepreneurs have already started marketing various products produced out of BHOT JALOKIA and even started EXPORTING. My congratulations to local entrepreneurship. But my humble suggestion is to patent the name of the product so that no one can use the same brand name. Perhaps all of us are aware that wine produce out of grapes cultivated in the Particular district of France can only be sold as CHAMPAGNE. No one else can use that brand name even their wine is produced from better grapes from California or Bangalore.
During my stay in California this summer I read in a magazine that the quality of capsicum Chinese has tremendous medicinal values. I was not aware of these qualities:
Alternative Medicine practitioners are realizing that healing herbs should be part of their arsenal against disease. The newest touted natural herb is Capsicum, found in cayenne pepper. It has many benefits whether taken internally or externally. When taken internally, capsicum is an antibacterial which will encourage healing and deflect infections while slowing the absorption of fat in the intestines to help fight obesity. Because this natural herbal remedy is a stimulant, it improves circulation. Capsicum will also stabilize blood pressure and lower cholesterol. Herbalists are finding capsicum is useful in fighting a variety of ailments. I am told our tribal population located in foothills of northeast Himalayas knew of the medicinal values. BHOT JOLOKIAS ARE USED for treatment of stomach ailment by Assamese people also.
My humble suggestion to local entrepreneurs is to have tie up with someone from GERMANY, ITALY OR MEXICO FOR PRODUCTION OF VARIOUS bye- PRODUCTS OUT OF BHOT JALOKIA AND BUILD UP LASTING RELATIONS FOR MARKETING. If properly marketed sauce produce out of Bhot jolokia would be as popular as Tabasco, Capsico AND chirocha hot sauce. MAY BE it would be much MORE popular for its MEDICINAL VALUES.
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hUNGER ON THE HORIZON: hOW TO FACE THE CHALLENGE ?
Hunger is seen on the horizon of the world by none other than UNO. It would engulf around one billion people unless common people of developed nations contribute personally in cash. The appeal for help has been circulated already.
It is now a fact that unless Public distribution system of our country is revamped and strong measures are taken to augment agriculture sector, as per the signals now received, a famine like situation may develop and devastate even our country. Assam would not be an exception to this scene. Till now though two neighboring states of Assam, were experiencing famine in the past, there was no record for Assam experiencing such a bleak situation. The time has changed. Assam has now negative growth rate in agriculture sector. It might trigger famine like situation unless government steps in. The world Food Programme, facing a fund shortage and UN has appealed to individual persons for cash donation for the first time of its existence. The Head of UN Food Body felt if one billion persons of developed world donate just RS. 69/- a week or one euro($1.50) it would be enough to end world’s hunger and famine. So WFP has issued internet appeal to all individual to contribute. If anyone , from our country, want to contribute WFP’S Delhi office can be contacted..
Addressing WORLD ECONOMIC FORUM’ in New Delhi recently, Mr. Pranab Mukherjee admitted:
"There is a need of generating strong domestic demand until the robust recovery all over the world, particularly in the developed world takes place.”
Mukherjee repeated his pledge for massive investments in agriculture sector and infrastructure, and acknowledged that it would not be easy for Asia's third largest economy to compensate for the loss in exports through domestic demand. "It is not easy for us to diversify the market overnight and make up the loss so we shall have to wait for some time," he said.
The Food and Agriculture Organization (FAO) of United Nations has recently issued a report which reveals that currently there are 75 million (7.5 crore) people in the world are victim of famine and if the current crisis of price rise persists this count may reach the total of 920.25 million (92.25 crore )
India at present is facing the very harsh situations where poorest of the poor of our country have to go to bed hungry. But at this crucial time when the country expects some stringent steps from the government’s side, it is defending itself by saying that food crisis is a global problem. It is not interested in finding and disclosing the root cause of this havoc .
In such a situation it is a heartening to note the definite actions taken by Government of Assam to regulate farm products in the state.. In the time of scarcity it is not only production but supply system needs to be strengthened. THE SATE GOVERNMENT AT LEAST MADE SOME EFFORT to boost consumption, eliminating middle men from the market.
Indian government is of course desperate to stave off spiraling food price inflation atleast during this winter season.
Mr. Mukherjee during the meeting of world economic forum assured that none should be worried about the availability of food grains for the government would continue to import food items to meet any supply shortfall and scarcity food.
ASSAM GOVERNAMEN MUST ENSURE THAT PRICE of THREE THINGS must NOT HIT THE ROOF. It must endeavor to contain the price of rice, vegetable and fish. The fish lobby, in Assam, is very strong. THE GOVERNMENT MUST BREAK THE NEXUS BETWEEN SUPPLIERS – MIDDLEMEN AND RETAILERS. UNLESS MIDDLEMEN ARE CONTAINED NO USEFUL PURPOSE WOULD BE SERVED only BY FIXING UP THE RETAIL PRICE .Assam’s population survived famine like situation in the past mainly due to frugal food habits and due to non dependence on outside supplies. With the increase in population food habits have changed and dependence on outside supplies have increased. The government must strengthen public distribution system, crack nexus of middlemen in fish supplies and develop storage space for sufficient food grains and help small growers to produce green vegetables, rice and fish. THE ARRANGEMENT CAN Be MADE TO BRING IN FISH FROM Andhra government’s fishery department and distribute to retailers at pre determined price and also distribute through area wise Kiosk of Assam’s fishery department.
In spite of rising inflation and panic regarding food availability our government still believes that to sustain in world economy we need investment and support of corporate companies. The Economic Advisory Council to the Prime Minister advocates the role of corporate sector in agriculture and says that activities other than food grain production like commercial crops, horticulture etc. have contributed most to agricultural GDP. The council recommends removal of subsidies related to grain procurement and REVAMPING of Public Distribution System.
“The Unprecedented food scarcity is beginning to dictate the rules of a new political order where individual countries are scrambling to secure their own food supplies with little concern for the rest of the world, “says the founder of the Earth Policy Institute, LESTER Brown.
"We are in the midst of the most severe food crisis in the world’s history," Brown said. "This is not your mother’s food shortage... but a chronically tight food situation, a serious and long-term problem.’’
From Africa to Asia, countries are scrambling to buy or lease land overseas to grow crops and feed their people. China, which has to feed the world’s largest population, has taken the lead by contracting land in Tanzania, Laos, Kazakhstan, Brazil and others.
India has set its eyes on Uruguay and Paraguay, while South Korea is looking for farming deals in Sudan and Siberia. Libya and Egypt for their part have been negotiating deals to lease land in Ukraine.
The worry here, according to Brown, is that "the more influential countries would be able to secure food supplies, leaving a number of low-income, less influential countries with no food to import".
Agricultural sector of India is mainly covered by small and marginal farmers, so our government should promote small scale agriculture. Corporate sector could be ushered in as an experiment in joint sector basis where land lord and cultivators would be partners with corporate on a selective basis. Can Assam experiment with this model?
--------------------------------------------------
It is now a fact that unless Public distribution system of our country is revamped and strong measures are taken to augment agriculture sector, as per the signals now received, a famine like situation may develop and devastate even our country. Assam would not be an exception to this scene. Till now though two neighboring states of Assam, were experiencing famine in the past, there was no record for Assam experiencing such a bleak situation. The time has changed. Assam has now negative growth rate in agriculture sector. It might trigger famine like situation unless government steps in. The world Food Programme, facing a fund shortage and UN has appealed to individual persons for cash donation for the first time of its existence. The Head of UN Food Body felt if one billion persons of developed world donate just RS. 69/- a week or one euro($1.50) it would be enough to end world’s hunger and famine. So WFP has issued internet appeal to all individual to contribute. If anyone , from our country, want to contribute WFP’S Delhi office can be contacted..
Addressing WORLD ECONOMIC FORUM’ in New Delhi recently, Mr. Pranab Mukherjee admitted:
"There is a need of generating strong domestic demand until the robust recovery all over the world, particularly in the developed world takes place.”
Mukherjee repeated his pledge for massive investments in agriculture sector and infrastructure, and acknowledged that it would not be easy for Asia's third largest economy to compensate for the loss in exports through domestic demand. "It is not easy for us to diversify the market overnight and make up the loss so we shall have to wait for some time," he said.
The Food and Agriculture Organization (FAO) of United Nations has recently issued a report which reveals that currently there are 75 million (7.5 crore) people in the world are victim of famine and if the current crisis of price rise persists this count may reach the total of 920.25 million (92.25 crore )
India at present is facing the very harsh situations where poorest of the poor of our country have to go to bed hungry. But at this crucial time when the country expects some stringent steps from the government’s side, it is defending itself by saying that food crisis is a global problem. It is not interested in finding and disclosing the root cause of this havoc .
In such a situation it is a heartening to note the definite actions taken by Government of Assam to regulate farm products in the state.. In the time of scarcity it is not only production but supply system needs to be strengthened. THE SATE GOVERNMENT AT LEAST MADE SOME EFFORT to boost consumption, eliminating middle men from the market.
Indian government is of course desperate to stave off spiraling food price inflation atleast during this winter season.
Mr. Mukherjee during the meeting of world economic forum assured that none should be worried about the availability of food grains for the government would continue to import food items to meet any supply shortfall and scarcity food.
ASSAM GOVERNAMEN MUST ENSURE THAT PRICE of THREE THINGS must NOT HIT THE ROOF. It must endeavor to contain the price of rice, vegetable and fish. The fish lobby, in Assam, is very strong. THE GOVERNMENT MUST BREAK THE NEXUS BETWEEN SUPPLIERS – MIDDLEMEN AND RETAILERS. UNLESS MIDDLEMEN ARE CONTAINED NO USEFUL PURPOSE WOULD BE SERVED only BY FIXING UP THE RETAIL PRICE .Assam’s population survived famine like situation in the past mainly due to frugal food habits and due to non dependence on outside supplies. With the increase in population food habits have changed and dependence on outside supplies have increased. The government must strengthen public distribution system, crack nexus of middlemen in fish supplies and develop storage space for sufficient food grains and help small growers to produce green vegetables, rice and fish. THE ARRANGEMENT CAN Be MADE TO BRING IN FISH FROM Andhra government’s fishery department and distribute to retailers at pre determined price and also distribute through area wise Kiosk of Assam’s fishery department.
In spite of rising inflation and panic regarding food availability our government still believes that to sustain in world economy we need investment and support of corporate companies. The Economic Advisory Council to the Prime Minister advocates the role of corporate sector in agriculture and says that activities other than food grain production like commercial crops, horticulture etc. have contributed most to agricultural GDP. The council recommends removal of subsidies related to grain procurement and REVAMPING of Public Distribution System.
“The Unprecedented food scarcity is beginning to dictate the rules of a new political order where individual countries are scrambling to secure their own food supplies with little concern for the rest of the world, “says the founder of the Earth Policy Institute, LESTER Brown.
"We are in the midst of the most severe food crisis in the world’s history," Brown said. "This is not your mother’s food shortage... but a chronically tight food situation, a serious and long-term problem.’’
From Africa to Asia, countries are scrambling to buy or lease land overseas to grow crops and feed their people. China, which has to feed the world’s largest population, has taken the lead by contracting land in Tanzania, Laos, Kazakhstan, Brazil and others.
India has set its eyes on Uruguay and Paraguay, while South Korea is looking for farming deals in Sudan and Siberia. Libya and Egypt for their part have been negotiating deals to lease land in Ukraine.
The worry here, according to Brown, is that "the more influential countries would be able to secure food supplies, leaving a number of low-income, less influential countries with no food to import".
Agricultural sector of India is mainly covered by small and marginal farmers, so our government should promote small scale agriculture. Corporate sector could be ushered in as an experiment in joint sector basis where land lord and cultivators would be partners with corporate on a selective basis. Can Assam experiment with this model?
--------------------------------------------------
INSECURITY GRIPS INDIAN INVESTORS
Despite very good Growth rate during this quarter most Indian are suffering from insecurity. Bellying all predictions of low growth rate Indian economy charged forward with a growth rate of 7.7% during this quarter. Naturally Government of India’s burocrats and ministers are happy at the turn of event. The finance minister though is very hopeful that growth for the year could be 7%, most of the economists are still not convinced.
According to a section of economist recession would not be over soon. The export is still all time low. The food articles have become costlier every day. Some of the essential commodities are selling at all time high. The selling price of potatoes was never reached so high in last one decade. It is selling at Rs 27 a kg now as against the last year’s price of Rs 8 a KG. Exports of jewelry and clothes have gone down. Only tea is maintaining its export status somehow. But there are strong possibilities that export figures may also go down further.
India's exports and imports have been in the red, as demand in both overseas and domestic markets nose-dived due to the global economic crisis. However, exports have been improving since April, even though it continues to be in the negative territory. "In about seven months we have recovered considerably," commerce minister An and Sharma had said last week. However, the dip in imports did not show any signs of improvement contracting in the range of 18 to 39% in the April-September period. The commerce ministry is reviewing the performance of the export sector and will soon be releasing an additional set of incentives for labour-intensive sectors.
Trade deficit the difference between exports and imports during October stood at $8.8 billion, nearly 26% below the figure of $11.73 billion seen in the year-ago month. In the period between April and October, India's exports stood at $91 billion, a dip of 26%, while imports were valued at $ 148.36 billion, a contraction of 29.6%.
According to officials in the commerce ministry, the overall reduced rate of contraction in exports seen in the past seven months indicate that the stimulus package and foreign trade policy measures arrested the rate of decline. A labour ministry survey showed that in the second quarter, export-oriented factories added over two lakh jobs, a first since the economic crisis hit India about a year back.
There may small glimmers of hope in the economy but most Indian citizens are not confident about their financial future and many think they are already poor, according to a new survey. Inflation is going up. The finance Minster said that inflation is not due to cost push inflation. It is due to non availability of food product in enough quantity. The government of India has announced that it would not allow Indian to starve. If required food product would be imported. Is it practicable? The shortage of food is not the problem of India alone. It is a global phenomenon. It would be impossible to buy rice in a cost effective manner since even China is trying to import rice from various countries. Even in America common people have stopped buying vigorously during this holiday season. The condition of market , during the Thanks Giving festivities, was disappointing.
More than 70 percent of Americans questioned in a Zogby International poll said they could imagine becoming poor or already think they are. Indian Consumer worry about sliding into poverty has already dampened the spirit this year . The gap between current difficulties and people's expectations for the future might be due to the economic crisis not being severe enough to fundamentally alter consumer behavior.
Despite inflation on food products share market is going up. But most investor in the market are FII. The market sensex have been fluctuating between 15,500 and 17,200. The market is not smooth at all. It is the
FII who are dominating the field. Indian investors have burnt their fingers while participating in volatile market. The undertone of the market is aggressive. In this aggressive and volatile market INDIAN INVESTORS are worried. They have not been able to recover their investment made during 2007. Our suggestion to risk averse investors would be to stay away from the market unless they are in a position to keep their money invested for at least for five years. Surprisingly debt market is also dormant. Banks are offering all time low interest rate. Equity market is volatile. Most Indian investors have failed to make money except for a few powerful traders. This is not the time for common people to enter in the equity market unless they invest through SIP method for at least for five years. Our research revealed that equity give best return not in short period but in the longer period. It is essential to keep it in mind that equity may not give any good return less than five years period. Indian investors are worried lots because they expected huge returns within a year . It is true that Indian middle class survive on hope without commensuration of patience. An American Economist aptly described this contradiction on following words:
"There is a contradiction playing out in front of us between hopefulness and hopelessness," said Jenny Darroch, a professor at Claremont's Graduate School of Management in California. This contradiction forces us to take steps which ultimately make us sad. Indian middle class investors, like their American counterpart are sad lots. The days are not far off when Indian market may fall further down. So do not invest in the market unless you can wait for five years.
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According to a section of economist recession would not be over soon. The export is still all time low. The food articles have become costlier every day. Some of the essential commodities are selling at all time high. The selling price of potatoes was never reached so high in last one decade. It is selling at Rs 27 a kg now as against the last year’s price of Rs 8 a KG. Exports of jewelry and clothes have gone down. Only tea is maintaining its export status somehow. But there are strong possibilities that export figures may also go down further.
India's exports and imports have been in the red, as demand in both overseas and domestic markets nose-dived due to the global economic crisis. However, exports have been improving since April, even though it continues to be in the negative territory. "In about seven months we have recovered considerably," commerce minister An and Sharma had said last week. However, the dip in imports did not show any signs of improvement contracting in the range of 18 to 39% in the April-September period. The commerce ministry is reviewing the performance of the export sector and will soon be releasing an additional set of incentives for labour-intensive sectors.
Trade deficit the difference between exports and imports during October stood at $8.8 billion, nearly 26% below the figure of $11.73 billion seen in the year-ago month. In the period between April and October, India's exports stood at $91 billion, a dip of 26%, while imports were valued at $ 148.36 billion, a contraction of 29.6%.
According to officials in the commerce ministry, the overall reduced rate of contraction in exports seen in the past seven months indicate that the stimulus package and foreign trade policy measures arrested the rate of decline. A labour ministry survey showed that in the second quarter, export-oriented factories added over two lakh jobs, a first since the economic crisis hit India about a year back.
There may small glimmers of hope in the economy but most Indian citizens are not confident about their financial future and many think they are already poor, according to a new survey. Inflation is going up. The finance Minster said that inflation is not due to cost push inflation. It is due to non availability of food product in enough quantity. The government of India has announced that it would not allow Indian to starve. If required food product would be imported. Is it practicable? The shortage of food is not the problem of India alone. It is a global phenomenon. It would be impossible to buy rice in a cost effective manner since even China is trying to import rice from various countries. Even in America common people have stopped buying vigorously during this holiday season. The condition of market , during the Thanks Giving festivities, was disappointing.
More than 70 percent of Americans questioned in a Zogby International poll said they could imagine becoming poor or already think they are. Indian Consumer worry about sliding into poverty has already dampened the spirit this year . The gap between current difficulties and people's expectations for the future might be due to the economic crisis not being severe enough to fundamentally alter consumer behavior.
Despite inflation on food products share market is going up. But most investor in the market are FII. The market sensex have been fluctuating between 15,500 and 17,200. The market is not smooth at all. It is the
FII who are dominating the field. Indian investors have burnt their fingers while participating in volatile market. The undertone of the market is aggressive. In this aggressive and volatile market INDIAN INVESTORS are worried. They have not been able to recover their investment made during 2007. Our suggestion to risk averse investors would be to stay away from the market unless they are in a position to keep their money invested for at least for five years. Surprisingly debt market is also dormant. Banks are offering all time low interest rate. Equity market is volatile. Most Indian investors have failed to make money except for a few powerful traders. This is not the time for common people to enter in the equity market unless they invest through SIP method for at least for five years. Our research revealed that equity give best return not in short period but in the longer period. It is essential to keep it in mind that equity may not give any good return less than five years period. Indian investors are worried lots because they expected huge returns within a year . It is true that Indian middle class survive on hope without commensuration of patience. An American Economist aptly described this contradiction on following words:
"There is a contradiction playing out in front of us between hopefulness and hopelessness," said Jenny Darroch, a professor at Claremont's Graduate School of Management in California. This contradiction forces us to take steps which ultimately make us sad. Indian middle class investors, like their American counterpart are sad lots. The days are not far off when Indian market may fall further down. So do not invest in the market unless you can wait for five years.
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Sunday, November 15, 2009
HUNGER ON THE HORIZON : IT IS TIME TO WAKE UP
It is now a fact that unless Public distribution system is revamped and strong measures are taken to augment agriculture sector, as per the strong signals now received, a famine like situation may develop and devastate the country. Assam would not be an exception to this scene. Till now though two neighboring states of Assam, were experiencing famine in the past, there was no record for Assam experiencing such a bleak situation. The time has changed. Assam has now negative growth rate in agriculture sector. It might trigger famine like situation unless government steps in. The world Food Programme, facing a fund shortage and UN has for the first time appeal to individual persons for cash donation for the first time of its existence. The Head of UN Food Body felt if one billion persons of developed world donate just RS. 69/- a week or one euro($1.50) it would be enough to end world’s hunger and famine. So WFP has issued internet appeal to all individual to contribute. If any one want to contribute contact WFP’S Delhi office.
Addressing WORLD ECONOMIC FORUM’ in New Delhi recently, Mr. Pranab Mukherjee admitted:
"There is a need of generating strong domestic demand until the robust recovery all over the world, particularly in the developed world takes place.”
Mukherjee repeated his pledge for massive investments in agriculture sector and infrastructure, and acknowledged that it would not be easy for Asia's third largest economy to compensate for the loss in exports through domestic demand. "It is not easy for us to diversify the market overnight and make up the loss so we shall have to wait for some time," he said.
The Food and Agriculture Organization (FAO) of United Nations has recently issued a report which reveals that currently there are 75 million (7.5 crore) people in the world are victim of famine and if the current crisis of price rise persists this count may reach the total of 920.25 million (92.25 crore )
India at present is facing the very harsh situations where poorest of the poor of our country have to go to bed hungry. But at this crucial time when the country expects some stringent steps from the government’s side, it is defending itself by saying that food crisis is a global problem. It is not interested in finding and disclosing the root cause of this havoc .
In such a situation it is a heartening to note the definite actions taken by Government of Assam to regulate farm products in the state.. In the time of scarcity it is not only production but supply system needs to be strengthened. THE SATE GOVERNMENT AT LEAST MADE SOME EFFORT to boost consumption, eliminating middle men from the market.
Indian government is of course desperate to stave off spiraling food price inflation atleast during this winter season.
Mr. Mukherjee during the meeting of world economic forum assured that none should be worried about the availability of food grains for the government would continue to import food items to meet any supply shortfall and scarcity food.
ASSAM GOVERNAMEN MUST ENSURE THAT PRICE of THREE THINGS must NOT HIT THE ROOF. It must endeavor to contain the price of rice, vegetable and fish. The fish lobby, in Assam, is very strong. THE GOVERNMENT MUST BREAK THE NEXUS BETWEEN SUPPLIERS – MIDDLEMEN AND RETAILERS. UNLESS MIDDLEMEN ARE CONTAINED NO USEFUL PURPOSE WOULD BE SERVED only BY FIXING UP THE RETAIL PRICE .Assam’s population survived famine like situation in the past mainly due to frugal food habits and due to non dependence on outside supplies. With the increase in population food habits have changed and dependence on outside supplies have increased. The government must strengthen public distribution system, crack nexus of middlemen in fish supplies and develop storage space for sufficient food grains and help small growers to produce green vegetables, rice and fish. THE ARRANGEMENT CAN Be MADE TO BRING IN FISH FROM Andhra government’s fishery department and distribute to retailers at pre determined price and also distribute through area wise Kiosk of Assam’s fishery department.
In spite of rising inflation and panic regarding food availability our government still believes that to sustain in world economy we need investment and support of corporate companies. The Economic Advisory Council to the Prime Minister advocates the role of corporate sector in agriculture and says that activities other than food grain production like commercial crops, horticulture etc. have contributed most to agricultural GDP. The council recommends removal of subsidies related to grain procurement and REVAMPING of Public Distribution System.
“The Unprecedented food scarcity is beginning to dictate the rules of a new political order where individual countries are scrambling to secure their own food supplies with little concern for the rest of the world, “says the founder of the Earth Policy Institute, LESTER Brown.
"We are in the midst of the most severe food crisis in the world’s history," Brown said. "This is not your mother’s food shortage... but a chronically tight food situation, a serious and long-term problem.’’
From Africa to Asia, countries are scrambling to buy or lease land overseas to grow crops and feed their people. China, which has to feed the world’s largest population, has taken the lead by contracting land in Tanzania, Laos, Kazakhstan, Brazil and others.
India has set its eyes on Uruguay and Paraguay, while South Korea is looking for farming deals in Sudan and Siberia. Libya and Egypt for their part have been negotiating deals to lease land in Ukraine.
The worry here, according to Brown, is that "the more influential countries would be able to secure food supplies, leaving a number of low-income, less influential countries with no food to import".
Addressing WORLD ECONOMIC FORUM’ in New Delhi recently, Mr. Pranab Mukherjee admitted:
"There is a need of generating strong domestic demand until the robust recovery all over the world, particularly in the developed world takes place.”
Mukherjee repeated his pledge for massive investments in agriculture sector and infrastructure, and acknowledged that it would not be easy for Asia's third largest economy to compensate for the loss in exports through domestic demand. "It is not easy for us to diversify the market overnight and make up the loss so we shall have to wait for some time," he said.
The Food and Agriculture Organization (FAO) of United Nations has recently issued a report which reveals that currently there are 75 million (7.5 crore) people in the world are victim of famine and if the current crisis of price rise persists this count may reach the total of 920.25 million (92.25 crore )
India at present is facing the very harsh situations where poorest of the poor of our country have to go to bed hungry. But at this crucial time when the country expects some stringent steps from the government’s side, it is defending itself by saying that food crisis is a global problem. It is not interested in finding and disclosing the root cause of this havoc .
In such a situation it is a heartening to note the definite actions taken by Government of Assam to regulate farm products in the state.. In the time of scarcity it is not only production but supply system needs to be strengthened. THE SATE GOVERNMENT AT LEAST MADE SOME EFFORT to boost consumption, eliminating middle men from the market.
Indian government is of course desperate to stave off spiraling food price inflation atleast during this winter season.
Mr. Mukherjee during the meeting of world economic forum assured that none should be worried about the availability of food grains for the government would continue to import food items to meet any supply shortfall and scarcity food.
ASSAM GOVERNAMEN MUST ENSURE THAT PRICE of THREE THINGS must NOT HIT THE ROOF. It must endeavor to contain the price of rice, vegetable and fish. The fish lobby, in Assam, is very strong. THE GOVERNMENT MUST BREAK THE NEXUS BETWEEN SUPPLIERS – MIDDLEMEN AND RETAILERS. UNLESS MIDDLEMEN ARE CONTAINED NO USEFUL PURPOSE WOULD BE SERVED only BY FIXING UP THE RETAIL PRICE .Assam’s population survived famine like situation in the past mainly due to frugal food habits and due to non dependence on outside supplies. With the increase in population food habits have changed and dependence on outside supplies have increased. The government must strengthen public distribution system, crack nexus of middlemen in fish supplies and develop storage space for sufficient food grains and help small growers to produce green vegetables, rice and fish. THE ARRANGEMENT CAN Be MADE TO BRING IN FISH FROM Andhra government’s fishery department and distribute to retailers at pre determined price and also distribute through area wise Kiosk of Assam’s fishery department.
In spite of rising inflation and panic regarding food availability our government still believes that to sustain in world economy we need investment and support of corporate companies. The Economic Advisory Council to the Prime Minister advocates the role of corporate sector in agriculture and says that activities other than food grain production like commercial crops, horticulture etc. have contributed most to agricultural GDP. The council recommends removal of subsidies related to grain procurement and REVAMPING of Public Distribution System.
“The Unprecedented food scarcity is beginning to dictate the rules of a new political order where individual countries are scrambling to secure their own food supplies with little concern for the rest of the world, “says the founder of the Earth Policy Institute, LESTER Brown.
"We are in the midst of the most severe food crisis in the world’s history," Brown said. "This is not your mother’s food shortage... but a chronically tight food situation, a serious and long-term problem.’’
From Africa to Asia, countries are scrambling to buy or lease land overseas to grow crops and feed their people. China, which has to feed the world’s largest population, has taken the lead by contracting land in Tanzania, Laos, Kazakhstan, Brazil and others.
India has set its eyes on Uruguay and Paraguay, while South Korea is looking for farming deals in Sudan and Siberia. Libya and Egypt for their part have been negotiating deals to lease land in Ukraine.
The worry here, according to Brown, is that "the more influential countries would be able to secure food supplies, leaving a number of low-income, less influential countries with no food to import".
Friday, November 13, 2009
PAN CARD WOULD BE A NECESSITY FOR ALL INCOME EARNERS '
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Perhaps every citizens by now know that in the recent budget a provision has been incorporated that any persons having invested money in fixed deposit would require to quote the pan number. This provision will be applicable to all persons irrespective of the fact that he or she is not even income tax payers. The banks ar being advised to deduct money if no pan numbers are quoted even by non income tax payers from April next. In case wrong mentionning of Pan card number by depositors there would be 20% deduction of tax, as a penalty.
Till recently Pan card was a necessity for the income tax payers who submit income tax returns annually. now a days pan card is necessary for buying a car, or owning a cell phone number. Now pan card would be necssary for Fix Deposit in Bank even if he not a tax payer.
A few years ago pan card was also necessary whosoever makes foreign travel. Even for those people it was necessary to submit IT returns even if he was non income tax payers.( It was necessary for such person to submit nil return). While submitting nil return he had to quote his pan number. This provision has been abolished a few years back. Now Pan card is required for any kind of financial transaction..
The matter of obtaining a pan card for individual has gained importance now because from now onward for even if a person's total income is less than taxable income and he keeps money in bank's fixed deposit he would be required to have Pan card. This is going to be the law from next April. I would there fore like to recommend all persons having fixed deposit in bank or in Government or non Government organisation to apply for PAN number for his own benefit. What is a PAN CARD ?
I will try to answer like a lay man. The PAN is the abbreviation of Permanent Account Number . Actually this is a unique number allotted to individual or a corporate entity by department of income tax, Government of India. It is more an identification number . The PAN card is a plastic coated/laminated card containing an alphanumeric number, mentioning name, father's name, date of birth, the signature, person's photo and, of course, the PAN number and logo of government. of India and dept. of IT. By default , a PAN number has five letters first, then four digits and then one letter again. The uses of Pan card was for mainly following reasons.
1 Till now, it is mandatory to have one and only one fore every Indian who's income exceeds tax free limit. ( this provision is being changed from next April)
2. It serves as an photo-identity card as an Indian citizen .
With the new change in law pan number become necessary for everyone who has FD account in Bank including a widow who may earn an income of below Rs one lakh ninety thousand.. The threshold limit for payment of income tax for all categories of persons have recently been upwardly revised and most of the retired senior citizen and some of the ladies have become out of income tax net. From next April a widow earning below the threshold limit ,even if she has submitted the form 15 , income tax would be deducted by bank for her fixed saving in bak, in case Pan number is not submitted. In certain case if pan numbers are wrongly quoted, may be due to inadvertence, then tax will be deducted at the double the rate. This is where shoe would pinch for a widow or a lone lady or for a senior citizen. The persons having bank FD etc must be very vigilant if they want to avoid unnecessary deduction of tax and penalty from now onward.
Even this provision would be applicable to ordinary common salary earners also unless he submits pan card number. Many senior citizen never is to apply for pan card thinking that they were beyond the ambit of income tax hence no pan card was required. This was a valid argument till now. But from next April onward if pan card number is not submitted to the Bank or any other other authorities income tax would be deducted on payment of interest.
My humble suggestion is not to panic . There are ample time to apply fopr a pan card. In any case the provision would be applicable from next April only. We have one years time to get organised for a pan number. Having a pan card is very useful and easy. It can be used as a photo identity card also beside using for all financial transaction. This number is actually isued by income tax department to track any financial transaction and also to ensure non evasion of tax by eligible citizen. The pan card is very useful for all the citizens, for our country donot have a Social security number like devlop countries of the world.. The importance of PAN card would continue till unique Identification number is issued by the central Government to each citizen. The project has already been taken up recently. A few persons recently wrote to me asking as to how and where PAN card could be applied?
The Income tax Department has authorised UTI investors services Limited to manage and issue pan card for smooth issuance of the card.. It can be applied on line also through internet ascility for the application form. There is a specific application form and that should be filled up to enable UTI Invetors Services Limted to issue PAN number with phoogtraph. A small fee is also charged for the fascility. The pan card can be issued to NRI also.
There are enough time now and all perons having income out of bank fixed deposit, company fixed deposit and having fixed deposit from any other governmental and non govrnmental organsation should apply for PAN number though they might not be income tax payers. In case they donot take PAN Card and donot submit on time the authorities would deduct income tax at the rate of 10% to 20% at the time of payment of interest in due course. Hence it is recommended that steps should be taken up by all concerned not only to apply and obtain the Pan number but to submit the same to the authrities concerned at the earliest.
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Perhaps every citizens by now know that in the recent budget a provision has been incorporated that any persons having invested money in fixed deposit would require to quote the pan number. This provision will be applicable to all persons irrespective of the fact that he or she is not even income tax payers. The banks ar being advised to deduct money if no pan numbers are quoted even by non income tax payers from April next. In case wrong mentionning of Pan card number by depositors there would be 20% deduction of tax, as a penalty.
Till recently Pan card was a necessity for the income tax payers who submit income tax returns annually. now a days pan card is necessary for buying a car, or owning a cell phone number. Now pan card would be necssary for Fix Deposit in Bank even if he not a tax payer.
A few years ago pan card was also necessary whosoever makes foreign travel. Even for those people it was necessary to submit IT returns even if he was non income tax payers.( It was necessary for such person to submit nil return). While submitting nil return he had to quote his pan number. This provision has been abolished a few years back. Now Pan card is required for any kind of financial transaction..
The matter of obtaining a pan card for individual has gained importance now because from now onward for even if a person's total income is less than taxable income and he keeps money in bank's fixed deposit he would be required to have Pan card. This is going to be the law from next April. I would there fore like to recommend all persons having fixed deposit in bank or in Government or non Government organisation to apply for PAN number for his own benefit. What is a PAN CARD ?
I will try to answer like a lay man. The PAN is the abbreviation of Permanent Account Number . Actually this is a unique number allotted to individual or a corporate entity by department of income tax, Government of India. It is more an identification number . The PAN card is a plastic coated/laminated card containing an alphanumeric number, mentioning name, father's name, date of birth, the signature, person's photo and, of course, the PAN number and logo of government. of India and dept. of IT. By default , a PAN number has five letters first, then four digits and then one letter again. The uses of Pan card was for mainly following reasons.
1 Till now, it is mandatory to have one and only one fore every Indian who's income exceeds tax free limit. ( this provision is being changed from next April)
2. It serves as an photo-identity card as an Indian citizen .
With the new change in law pan number become necessary for everyone who has FD account in Bank including a widow who may earn an income of below Rs one lakh ninety thousand.. The threshold limit for payment of income tax for all categories of persons have recently been upwardly revised and most of the retired senior citizen and some of the ladies have become out of income tax net. From next April a widow earning below the threshold limit ,even if she has submitted the form 15 , income tax would be deducted by bank for her fixed saving in bak, in case Pan number is not submitted. In certain case if pan numbers are wrongly quoted, may be due to inadvertence, then tax will be deducted at the double the rate. This is where shoe would pinch for a widow or a lone lady or for a senior citizen. The persons having bank FD etc must be very vigilant if they want to avoid unnecessary deduction of tax and penalty from now onward.
Even this provision would be applicable to ordinary common salary earners also unless he submits pan card number. Many senior citizen never is to apply for pan card thinking that they were beyond the ambit of income tax hence no pan card was required. This was a valid argument till now. But from next April onward if pan card number is not submitted to the Bank or any other other authorities income tax would be deducted on payment of interest.
My humble suggestion is not to panic . There are ample time to apply fopr a pan card. In any case the provision would be applicable from next April only. We have one years time to get organised for a pan number. Having a pan card is very useful and easy. It can be used as a photo identity card also beside using for all financial transaction. This number is actually isued by income tax department to track any financial transaction and also to ensure non evasion of tax by eligible citizen. The pan card is very useful for all the citizens, for our country donot have a Social security number like devlop countries of the world.. The importance of PAN card would continue till unique Identification number is issued by the central Government to each citizen. The project has already been taken up recently. A few persons recently wrote to me asking as to how and where PAN card could be applied?
The Income tax Department has authorised UTI investors services Limited to manage and issue pan card for smooth issuance of the card.. It can be applied on line also through internet ascility for the application form. There is a specific application form and that should be filled up to enable UTI Invetors Services Limted to issue PAN number with phoogtraph. A small fee is also charged for the fascility. The pan card can be issued to NRI also.
There are enough time now and all perons having income out of bank fixed deposit, company fixed deposit and having fixed deposit from any other governmental and non govrnmental organsation should apply for PAN number though they might not be income tax payers. In case they donot take PAN Card and donot submit on time the authorities would deduct income tax at the rate of 10% to 20% at the time of payment of interest in due course. Hence it is recommended that steps should be taken up by all concerned not only to apply and obtain the Pan number but to submit the same to the authrities concerned at the earliest.
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THE BEST TIME TO TEACH CHILDREN VALUE OF MONEY
The lots of mail were received , during the month, from our readers asking for the best time to teach their wards the value of money. Some of the young parents mentioned that in their family the discussions on family silvers, wealth and money earned by parent were never discussed. In fact it was considered as bad manners if children tries to take part in money matters of the family. Children were expected to study and play and parent always need to fend for them. But the perception has changed in twenty first century. It is now required that children should know the value of money early in Life. Now the question arises how early children should start hands on training on money management?
It is now felt that children should have hands on experience of handling money from early age. But why? It is because the req an> an>uirment of money has multiplied. The life style of people have undergone tremeddous change. The life on earth have beccome competitive. This competitivnes have increased the necessity of money. Thee earning have not multiplied. But expenses have gone up tremedously. In sam mariage of a daughteer was not veery expensive affairs. Today it has changed . In fifties of tweentyeth century birth of the clebration ws completed with offering to God and feeding "para manna" to all his neighbour friends of the birthday boy. Today birth day is big affairs and cost enormously. the expectation of children have gone up. If children are allowed to have hand son experience of handling money they would at least get an opportunity to learn of the value of money. So at what time the concept of money should be introduced to the life of children?
This is not a easy question. Different societies have different approach to money. Children are allowed to handle money from the early childhoodd in Rajasthan, MP andd Up but in south India and in Northeast India children handles money after going to college only. However many citizens have been forced to talk openly now to their children as the money has become dearer due to price rise, non availability of cash flow duee to recession, pay cuts and job loss. According to a reecent survey by T. Rowe Price Group, nearly hlaf of the parents of school going children have used the recession as the catalyst to talk about money to their children.
The question when children should be allowed to handle money. The answer is as soon as the children start exploring outside world. According to an expert on child psychology children should be introduced to money matters as soon as he develops his want for any product or object like toy, chocolate, book, etc. What could be age ? The children start his demand when he becomes four years of age. This is would be the right age to introduce him to money. Till this age children feels that whatever he desires would come from anywhere. He develops a desire and that would be fulfilled. How it gets fulfilled is not his
outlook. This is the time a healthy outlook needs to be developed in child, as per expert on the child psychology.
Indian parents are much hesitant to talk about money to their children .Parents feel like sex education money education should start at school .This is inherent hesitation of indian parents.According Laura Levline, an expert on Finaical literacy said "parent feel they are not qualified.But kinds learn most of their money lessons from their parents best. you just need to talk about it ."
Really it is not hard, expert agree, if you take step by step. The best way to introduce the concept of money managmeent is to give children some money to manage,said Janet Bodnar, author of world famous book "Raising Money Smart Kids". What is the advise of Bodnar?
Bodnar suggests setting a weekly allownace that equates to half the age of children at the rate of Rs 2/- for a four year old and Rs 5/- when a child hits 10 th year. According to me, for Indian parents there need not be any particular formula to be followed on the amount. Parent can simply shift some money that they were spending on him monthly for his toys and snacks and story books etc.- and allow them to decide how to spend it. The most important thing is for the children to see that manging money is all about making choices. If you buy one thing costly you would not have money to buy another. It is like teaching children about healthy eating.You donot force children to taste from food pyramid- arather you cook for them to experience it. Likewise parents need to make money experiences a part of their childrens living. Perhaps this would help children to realise the value of saving . Of course guardian has to be strict in allotment of amount to be paid .
N.R. Srinivasan, an astute acountant started giving his teen aged son Rs10/- a day and asked him to divide this allowance into three parts at the rate of Rs 3/- each for his T shirts,,CDs, Tiffins and balance one rupeee for daily saving for buying whatever he wants like an extra pair of shoes or shocks or a cap etc. The formula developed in him a sense of saving and developed respect for money value . In later years his son became an investmeent expert when he grew up after completing his MBA.
His friend Bibek Talukdar gave his young son Paban whatever he wanted. He even purchased a shoe costing Rs four thousand on demand, whereas he himself was wearing a shoe costing Rs 800 only. He never taught the valuee of money to his son. When his son , Paban was in the last year of the college he demanded from his father a Motor Cycle which was refused. He told his father if he was unable to meet his demand why did he gave birth to him. He threatned to commit suicide for loss of prestige in front of his classmates. .Ultimately father had to agree. Later years, his son became a vagabond. According to expert, it is the parents who can incuclaate the best money value in children's mind by his deed or by example.
In case parents do want their children to become money savvy then start their life with a simple piggy bank . This would develop the concept of "Spend, save and share" early in life.This concept should be started with the kids because most of them otherwise keep on harping and whining " give me , give me and give me" while visiting stores and exhibiton etc.
As the children reach adulescent they should be introduced to banking procedure and asoon as theeir pass out of the high school they need to be introduce to credit card system.The most of our boys after passing go to college other than at their own home town. This habit of credit card/Debit card would help them to mangement their fiance while in hostel. Parents can deposit money in his acccount in home town and he can take out money in the town where his college is situated in south India. or else where.
According to me,parents need to explain their teenaged children that money is a tool that provides both enjoyment and security when used wisely. Srinivasan oncce told mee that his grandfather grew up poor and was never able enjoy his money. He grew up affluent and lacked awareness of the cost and value of money in young age.He wants his son Hari to have respect for money but not love it too much nor fear it too much. A healthy attitude towards money would make his son a balanced human being-that is what is needed in life, he added.
All parents must remember the words of Einstein that the mystery of compounding of money is far more complex to him than the complexity of the laws of universe. Ask your four year old child to save Rs five per day in bank and ask him to count the sum when he is sixty years old. It would be difficult for him to count the number of zeros then.The recession is the best time for you to introduce the money management concept to your child for only then you can feel the real pinch and power of money.
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It is now felt that children should have hands on experience of handling money from early age. But why? It is because the req an> an>uirment of money has multiplied. The life style of people have undergone tremeddous change. The life on earth have beccome competitive. This competitivnes have increased the necessity of money. Thee earning have not multiplied. But expenses have gone up tremedously. In sam mariage of a daughteer was not veery expensive affairs. Today it has changed . In fifties of tweentyeth century birth of the clebration ws completed with offering to God and feeding "para manna" to all his neighbour friends of the birthday boy. Today birth day is big affairs and cost enormously. the expectation of children have gone up. If children are allowed to have hand son experience of handling money they would at least get an opportunity to learn of the value of money. So at what time the concept of money should be introduced to the life of children?
This is not a easy question. Different societies have different approach to money. Children are allowed to handle money from the early childhoodd in Rajasthan, MP andd Up but in south India and in Northeast India children handles money after going to college only. However many citizens have been forced to talk openly now to their children as the money has become dearer due to price rise, non availability of cash flow duee to recession, pay cuts and job loss. According to a reecent survey by T. Rowe Price Group, nearly hlaf of the parents of school going children have used the recession as the catalyst to talk about money to their children.
The question when children should be allowed to handle money. The answer is as soon as the children start exploring outside world. According to an expert on child psychology children should be introduced to money matters as soon as he develops his want for any product or object like toy, chocolate, book, etc. What could be age ? The children start his demand when he becomes four years of age. This is would be the right age to introduce him to money. Till this age children feels that whatever he desires would come from anywhere. He develops a desire and that would be fulfilled. How it gets fulfilled is not his
outlook. This is the time a healthy outlook needs to be developed in child, as per expert on the child psychology.
Indian parents are much hesitant to talk about money to their children .Parents feel like sex education money education should start at school .This is inherent hesitation of indian parents.According Laura Levline, an expert on Finaical literacy said "parent feel they are not qualified.But kinds learn most of their money lessons from their parents best. you just need to talk about it ."
Really it is not hard, expert agree, if you take step by step. The best way to introduce the concept of money managmeent is to give children some money to manage,said Janet Bodnar, author of world famous book "Raising Money Smart Kids". What is the advise of Bodnar?
Bodnar suggests setting a weekly allownace that equates to half the age of children at the rate of Rs 2/- for a four year old and Rs 5/- when a child hits 10 th year. According to me, for Indian parents there need not be any particular formula to be followed on the amount. Parent can simply shift some money that they were spending on him monthly for his toys and snacks and story books etc.- and allow them to decide how to spend it. The most important thing is for the children to see that manging money is all about making choices. If you buy one thing costly you would not have money to buy another. It is like teaching children about healthy eating.You donot force children to taste from food pyramid- arather you cook for them to experience it. Likewise parents need to make money experiences a part of their childrens living. Perhaps this would help children to realise the value of saving . Of course guardian has to be strict in allotment of amount to be paid .
N.R. Srinivasan, an astute acountant started giving his teen aged son Rs10/- a day and asked him to divide this allowance into three parts at the rate of Rs 3/- each for his T shirts,,CDs, Tiffins and balance one rupeee for daily saving for buying whatever he wants like an extra pair of shoes or shocks or a cap etc. The formula developed in him a sense of saving and developed respect for money value . In later years his son became an investmeent expert when he grew up after completing his MBA.
His friend Bibek Talukdar gave his young son Paban whatever he wanted. He even purchased a shoe costing Rs four thousand on demand, whereas he himself was wearing a shoe costing Rs 800 only. He never taught the valuee of money to his son. When his son , Paban was in the last year of the college he demanded from his father a Motor Cycle which was refused. He told his father if he was unable to meet his demand why did he gave birth to him. He threatned to commit suicide for loss of prestige in front of his classmates. .Ultimately father had to agree. Later years, his son became a vagabond. According to expert, it is the parents who can incuclaate the best money value in children's mind by his deed or by example.
In case parents do want their children to become money savvy then start their life with a simple piggy bank . This would develop the concept of "Spend, save and share" early in life.This concept should be started with the kids because most of them otherwise keep on harping and whining " give me , give me and give me" while visiting stores and exhibiton etc.
As the children reach adulescent they should be introduced to banking procedure and asoon as theeir pass out of the high school they need to be introduce to credit card system.The most of our boys after passing go to college other than at their own home town. This habit of credit card/Debit card would help them to mangement their fiance while in hostel. Parents can deposit money in his acccount in home town and he can take out money in the town where his college is situated in south India. or else where.
According to me,parents need to explain their teenaged children that money is a tool that provides both enjoyment and security when used wisely. Srinivasan oncce told mee that his grandfather grew up poor and was never able enjoy his money. He grew up affluent and lacked awareness of the cost and value of money in young age.He wants his son Hari to have respect for money but not love it too much nor fear it too much. A healthy attitude towards money would make his son a balanced human being-that is what is needed in life, he added.
All parents must remember the words of Einstein that the mystery of compounding of money is far more complex to him than the complexity of the laws of universe. Ask your four year old child to save Rs five per day in bank and ask him to count the sum when he is sixty years old. It would be difficult for him to count the number of zeros then.The recession is the best time for you to introduce the money management concept to your child for only then you can feel the real pinch and power of money.
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A CONCEPT TO UTILISE SOLAR POWER IN ASSAM
G.P. BAROOWAH
Tremendous research is going on in western countries for development solar energy as a corollary to electrical power generation in universities. The cities where further power generation is not possible solar power would substitute for conventional power usage ! The demand for power have multiplied in some of the states. But in case immediate generation is not possible dependence on alternative energy sources have become imperative. The educational and Research Institutes and Industrial Houses have collaborated to find out the solution. Can similar exercise be taken up in Assam.?
Habib-Ur Rahman Baruah, have been in America for last four decade working as a Professional Engineer. For the first time he mentioned to me, in a recent discussion, that America is at present in need of vast energy resources and research is going on how to generate electricity out of non conventional energy utilisation. One most important identified areas has been the Solar energy beside, Sea energy and Wind energy. The demand for electrical engineers in USA have become so high, despite recession, that almost all the retired Electrical engineers have been summoned back to join jobs in this sphere. Baruah, himself a retired electrical engineer, of seventy two years has joined back job in power generation. He said that shortage of electricity has initiated lot of research in the field of energy. The experienced electrical engineers may seek opportunity in America who have experience of power generation.The next decade will be the age of energy as was IT few years before, according to him. Another energy project based on sea waves have been initiated by a well known Assamese scientist based in Canada. Recently, Biswadeep Baruah , has joined as CEO of an iit cell for development of new project. Can he take some initiative on this kind of project now ?
I myself saw an experimental project in Los Angeles area where air conditioning plants are operating from the solar energy. This is an experimental project only and further development in the area is expected to make it cost effective. The project engineer with whom I talked expected that when successful the project would bringing down air conditioning cost by 60% from the conventional electricity mode. This is eased the power requirements for lighting and irrigation etc.
"When we tell people we heat water up only to cool it down, they don't get it at first," said David Berokoff, a technology development manager at So Cal Gas. "But all this technology has been around for a while. We're just trying to bring it together so we can get it out to our customers as soon as possible."
The initiative is the latest in a move by SoCal Gas and its parent, Sempra Energy, to wean businesses off gas and push them to use more solar power. For businesses, the technologies could mean substantial savings.
Beyond the potential environmental benefits -- the sun is a nonpolluting, renewable source of energy -- the solar systems undergoing tests could help businesses slash air conditioning costs as much as 60%,we were told.
It was understood that the research project is only 4 months old and solar-powered cooling probably won't reach the gas company's customers for another year or two, but the gas company is already wooing businesses to the rooftop of its Downey research facility.
The Coca-Cola Bottling Co. of Southern California, is observing the tests to see whether such technologies would make sense for several of its bottling plants. "It's a very long-term view, but it's the right view to have." This is where the matter attracted my attention. In the research project both education and business have gone hand in hand. Can this hand holding initiative be started in Guwahati between IIT, Guwahati and AIDC or IOC or Oil India?
The industries in Assam also needs lot of air-conditioning. These can be developed as unit wise smaller projects where air-conditioning are required. Even the entire Capital complex of government of Assam including the residences of ministers, secretaries and officials can be air conditioned if IIT, guawhati can develop a projnect like this .Initial research cost of the project need to be shared between the IIT ,government and OIL.IIT can support with brain and human resources and rest would expected to fund the research.
The gas based research company, in USA , has been checking out competing solar-thermal cooling technologies from two companies to see which would work best on the roofs of warehouses, manufacturing plants and other commercial buildings. Presently no residential building have been included in the plan. But it would extend to Housing estate later.
I also read in an article in LA Times later where it was stated that the rooftop prototype systems, which include the mirrors, pipes and computer-automated solar trackers, cost about $200,000 each -- about the same cost as the entire traditional air conditioning system installed in the 45,000-square-foot Downey building, The researcher hope to slash that price by at least half before it reaches commercial customers.
The research project is comparing systems developed by Sopogy Inc., based in Honolulu, and HelioDynamics of Britain. Both use mirrors to aim the sun's rays at water pipes, and when sun isn't available to heat the water -- at night, for example -- both rely on gas as a backup.The differences lie in the shape and size of the mirrors used and in the placement of the water pipes.
Sopogy uses several 12-foot mirrors that curve upward, reflecting sunshine onto a pipe running just above the center of each mirror. HelioDynamics uses slabs of small, flat mirrors that reflect the sun's rays onto a single pipe above them.
Both systems use computer-automated trackers to tilt the mirrors throughout the day as the sun moves across the sky.
The hot water in both systems is heated to temperatures just under 200 degrees and collected in a storage tank. Then it goes through an absorption chiller that cools the cold water used in the building's fan units.
The solar systems can work alongside existing gas and electric system .Non-solar systems use gas or electricity to heat the hot water before it goes through the chiller.
Nathan Olivarezgiles of LAtimes praised the effort of researchers and stated that
people want renewable sources of energy, but people don't expect a switch that just happens overnight. By using gas or electricity as a backup, customers not having to replace their infrastructure, and customers know they won't have to get into something experimental."
"The promoter gas company is giving researchers a stage to demonstrate what they can do for their customers". Can Similar arrangements be made between Oil India and IIT , guwahati. In case such collaboration succeed it will change the face of Assam. Power is really short in Assam. If solar energy can take care of air conditioning of industry and large industrial estate at much reduced cost then there would be substantial availability of power for common people of Assam.. It helps Government and society tremendously. IIT, guwahati's research has already resulted in low cost cycle rickshaw beside other projects. This energy research project can be given a head start through the good office's of Minister of Industry by organizing a meeting of chairmen of OIL, AIDC and Director of IIT to give concrete shape to such a public -private research project which can give benefit to industry, Government and to society as a whole.
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Tremendous research is going on in western countries for development solar energy as a corollary to electrical power generation in universities. The cities where further power generation is not possible solar power would substitute for conventional power usage ! The demand for power have multiplied in some of the states. But in case immediate generation is not possible dependence on alternative energy sources have become imperative. The educational and Research Institutes and Industrial Houses have collaborated to find out the solution. Can similar exercise be taken up in Assam.?
Habib-Ur Rahman Baruah, have been in America for last four decade working as a Professional Engineer. For the first time he mentioned to me, in a recent discussion, that America is at present in need of vast energy resources and research is going on how to generate electricity out of non conventional energy utilisation. One most important identified areas has been the Solar energy beside, Sea energy and Wind energy. The demand for electrical engineers in USA have become so high, despite recession, that almost all the retired Electrical engineers have been summoned back to join jobs in this sphere. Baruah, himself a retired electrical engineer, of seventy two years has joined back job in power generation. He said that shortage of electricity has initiated lot of research in the field of energy. The experienced electrical engineers may seek opportunity in America who have experience of power generation.The next decade will be the age of energy as was IT few years before, according to him. Another energy project based on sea waves have been initiated by a well known Assamese scientist based in Canada. Recently, Biswadeep Baruah , has joined as CEO of an iit cell for development of new project. Can he take some initiative on this kind of project now ?
I myself saw an experimental project in Los Angeles area where air conditioning plants are operating from the solar energy. This is an experimental project only and further development in the area is expected to make it cost effective. The project engineer with whom I talked expected that when successful the project would bringing down air conditioning cost by 60% from the conventional electricity mode. This is eased the power requirements for lighting and irrigation etc.
"When we tell people we heat water up only to cool it down, they don't get it at first," said David Berokoff, a technology development manager at So Cal Gas. "But all this technology has been around for a while. We're just trying to bring it together so we can get it out to our customers as soon as possible."
The initiative is the latest in a move by SoCal Gas and its parent, Sempra Energy, to wean businesses off gas and push them to use more solar power. For businesses, the technologies could mean substantial savings.
Beyond the potential environmental benefits -- the sun is a nonpolluting, renewable source of energy -- the solar systems undergoing tests could help businesses slash air conditioning costs as much as 60%,we were told.
It was understood that the research project is only 4 months old and solar-powered cooling probably won't reach the gas company's customers for another year or two, but the gas company is already wooing businesses to the rooftop of its Downey research facility.
The Coca-Cola Bottling Co. of Southern California, is observing the tests to see whether such technologies would make sense for several of its bottling plants. "It's a very long-term view, but it's the right view to have." This is where the matter attracted my attention. In the research project both education and business have gone hand in hand. Can this hand holding initiative be started in Guwahati between IIT, Guwahati and AIDC or IOC or Oil India?
The industries in Assam also needs lot of air-conditioning. These can be developed as unit wise smaller projects where air-conditioning are required. Even the entire Capital complex of government of Assam including the residences of ministers, secretaries and officials can be air conditioned if IIT, guawhati can develop a projnect like this .Initial research cost of the project need to be shared between the IIT ,government and OIL.IIT can support with brain and human resources and rest would expected to fund the research.
The gas based research company, in USA , has been checking out competing solar-thermal cooling technologies from two companies to see which would work best on the roofs of warehouses, manufacturing plants and other commercial buildings. Presently no residential building have been included in the plan. But it would extend to Housing estate later.
I also read in an article in LA Times later where it was stated that the rooftop prototype systems, which include the mirrors, pipes and computer-automated solar trackers, cost about $200,000 each -- about the same cost as the entire traditional air conditioning system installed in the 45,000-square-foot Downey building, The researcher hope to slash that price by at least half before it reaches commercial customers.
The research project is comparing systems developed by Sopogy Inc., based in Honolulu, and HelioDynamics of Britain. Both use mirrors to aim the sun's rays at water pipes, and when sun isn't available to heat the water -- at night, for example -- both rely on gas as a backup.The differences lie in the shape and size of the mirrors used and in the placement of the water pipes.
Sopogy uses several 12-foot mirrors that curve upward, reflecting sunshine onto a pipe running just above the center of each mirror. HelioDynamics uses slabs of small, flat mirrors that reflect the sun's rays onto a single pipe above them.
Both systems use computer-automated trackers to tilt the mirrors throughout the day as the sun moves across the sky.
The hot water in both systems is heated to temperatures just under 200 degrees and collected in a storage tank. Then it goes through an absorption chiller that cools the cold water used in the building's fan units.
The solar systems can work alongside existing gas and electric system .Non-solar systems use gas or electricity to heat the hot water before it goes through the chiller.
Nathan Olivarezgiles of LAtimes praised the effort of researchers and stated that
people want renewable sources of energy, but people don't expect a switch that just happens overnight. By using gas or electricity as a backup, customers not having to replace their infrastructure, and customers know they won't have to get into something experimental."
"The promoter gas company is giving researchers a stage to demonstrate what they can do for their customers". Can Similar arrangements be made between Oil India and IIT , guwahati. In case such collaboration succeed it will change the face of Assam. Power is really short in Assam. If solar energy can take care of air conditioning of industry and large industrial estate at much reduced cost then there would be substantial availability of power for common people of Assam.. It helps Government and society tremendously. IIT, guwahati's research has already resulted in low cost cycle rickshaw beside other projects. This energy research project can be given a head start through the good office's of Minister of Industry by organizing a meeting of chairmen of OIL, AIDC and Director of IIT to give concrete shape to such a public -private research project which can give benefit to industry, Government and to society as a whole.
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AGRICULTURE WOULD BE KEY TO ECONOMIC GROWTH
The Deputy Chairman of the planning commission DR. ALHUWALIA once declared that Indian Economic growth would be 6.8% and more during this fiscal.. We refused to agree to the above figure in this column. NOW CHAIRMAN OF THE Prime MINISTER’S ECONOMIC ADVISORY COUNCIL announced ,for the first time on last Monday, that country may expect growth of 6.5% ONLY. This was exactly the figure we predicted as early as JUNE. According to IMF and world bank growth rate should be 5%. The Finance minister Pranab Mukherjee felt that the economic growth would be around 8% and maybe little higher. In our column we disputed such a notion and reiterated that the economic growth of the country would come through social development and agriculture reform. However, he has realised the fact now that only agriculture could be the saviour. only a few days back Mr. Mukherjee advised '"the banks should now enhance credit to employment generating sectors especially to agriculture and micro enterprise" He now realised that to boost economic growth larger farm credit would be essential.. Man Mohan Singh’s government has given definite stress on the agriculture sector but in state like Assam credit is not taken by agriculturist, as they are afraid of stringent repayment terms. In north east micro credit have become successful for the positive role played by Nedfi. This sector coupled with industrial sector may bring about the required growth initially to 6.5% . The agriculture can play a major role in the overall growth of the economy. We still subscribe to this view. IT IS TO BE NOTED THAT IMF AND WORLD BANK FELT India 's growtt during the year would around five percent during this fiscal. but according to us it would be excess of 65 if not 6.5 %.
Why Government of India ’s main policy makers had revised the growth rate now? This is because the contribution of agriculture sector has gone down due to scanty influence of Monsoon. The contribution from agriculture would be negative. it would be less tan -2%. THE INFLATION IS ON RISE DESPITE MORE THAN EXPECTED CONTRIBUTION OF MANUFACTURING SECTOR.The WPI inched to 1.21 percent for the week ended Oct 10, highest since May 30. . The strong build-up has been observed in the category of primary articles. Food articles have shown 14.13 percent inflation during the period.
With the kharif crop coming to the market, food prices will start cooling off. But ‘the impact may not be much significant to offset the increasing prices, the rising commodity prices are a matter of concern for the economy now. We are much more concerned of the supply side. Unless supply side improves, the inflation would not be contained.
The RBI admitted that managing the trade off between the growth and inflation posed a complex policy challenge to it. The extensive financil inclusion in rural areas are much more important compared to urban areas. The development of primary sector noe would automatically improve purchasing power of large community which in turn would develop urban base as was done in punjab.The prices of aluminum have increased almost 23 percent, while sugar prices have gone up nearly 90 percent in the last three months. Crude prices surged nearly 10 percent and the prices of copper have also skyrocketed about 111 percent, the industry lobby said. Though inflation is expected to rise, according to us, the Reserve Bank of India should not 'unwind its easy money policy in a hurry'. rise in interest rates and crowding out of private investments,' we feel.
UNDER THE CICUMSTANCES AGRICULTURE MAY BE THE ONLY SAVIOUR in the long run. The environment must be created so that consumption need to improve. The consumption would improve provided purchasing power of mass could created. So we need to be innovative. availability of finance wouldn't be the only solution. Bank must see that agriculturist and land lords don't hesitate to accept farm credit. The mental block of people of Assam needs to be addressed. In such a bleak situation why not give a chance to private sector to get involve in agriculture sector as a joint partner to land lords on profit sharing basis. Assam must uplift the ban on farming by corporate sector in production of rice and sunflower oil.. It would create employment for Agriculture graduates & other graduates. India’s economic recovery would come through the villages.
.Now, government should encourage joint sector farming, providing power and irrigational facilities to the farmers. The easy financial access alone would not help unless backed by infrastructure. The involvement of would generate employment for educated class.
The developed nations are using laser technology instead of tractors to till the lands. This helps in optimizing the use of various inputs such as water, seeds, fertilizers, etc. The problem is that Indian farmers cannot afford this technology and unless government and corporate sectors comes in support for agricultural infrastructure. The development of agriculture would remain a dream only ,if involvement of corporate sector is denied as a joint sector partners of landless laborer and that of land lords.
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Why Government of India ’s main policy makers had revised the growth rate now? This is because the contribution of agriculture sector has gone down due to scanty influence of Monsoon. The contribution from agriculture would be negative. it would be less tan -2%. THE INFLATION IS ON RISE DESPITE MORE THAN EXPECTED CONTRIBUTION OF MANUFACTURING SECTOR.The WPI inched to 1.21 percent for the week ended Oct 10, highest since May 30. . The strong build-up has been observed in the category of primary articles. Food articles have shown 14.13 percent inflation during the period.
With the kharif crop coming to the market, food prices will start cooling off. But ‘the impact may not be much significant to offset the increasing prices, the rising commodity prices are a matter of concern for the economy now. We are much more concerned of the supply side. Unless supply side improves, the inflation would not be contained.
The RBI admitted that managing the trade off between the growth and inflation posed a complex policy challenge to it. The extensive financil inclusion in rural areas are much more important compared to urban areas. The development of primary sector noe would automatically improve purchasing power of large community which in turn would develop urban base as was done in punjab.The prices of aluminum have increased almost 23 percent, while sugar prices have gone up nearly 90 percent in the last three months. Crude prices surged nearly 10 percent and the prices of copper have also skyrocketed about 111 percent, the industry lobby said. Though inflation is expected to rise, according to us, the Reserve Bank of India should not 'unwind its easy money policy in a hurry'. rise in interest rates and crowding out of private investments,' we feel.
UNDER THE CICUMSTANCES AGRICULTURE MAY BE THE ONLY SAVIOUR in the long run. The environment must be created so that consumption need to improve. The consumption would improve provided purchasing power of mass could created. So we need to be innovative. availability of finance wouldn't be the only solution. Bank must see that agriculturist and land lords don't hesitate to accept farm credit. The mental block of people of Assam needs to be addressed. In such a bleak situation why not give a chance to private sector to get involve in agriculture sector as a joint partner to land lords on profit sharing basis. Assam must uplift the ban on farming by corporate sector in production of rice and sunflower oil.. It would create employment for Agriculture graduates & other graduates. India’s economic recovery would come through the villages.
.Now, government should encourage joint sector farming, providing power and irrigational facilities to the farmers. The easy financial access alone would not help unless backed by infrastructure. The involvement of would generate employment for educated class.
The developed nations are using laser technology instead of tractors to till the lands. This helps in optimizing the use of various inputs such as water, seeds, fertilizers, etc. The problem is that Indian farmers cannot afford this technology and unless government and corporate sectors comes in support for agricultural infrastructure. The development of agriculture would remain a dream only ,if involvement of corporate sector is denied as a joint sector partners of landless laborer and that of land lords.
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INVEST NOW WITH A CLEAR VISION TO EARN
I am writing on investment after a long gap. This is because the share market has been very volatile and up for some time. Any new investor investing in such a market could have burnt their fingers. Many of our readers have been writing to us enquiring whether they should invest now or not. The share market sensex has come down from almost 17,800 to 15,450 on November 3rd. THERE IS A STRONG POSSIBILITY OF MARKET FURTHER GOING DOWN . However it my slide back upward also temporarily. The present trend is apparently bearish. But none can forecast market trend with certainty.
Under the present low market situation I would like to recommend our readers to invest only if they can hold the money invested for atleast four years. The investors who would be in need of money within one or two years they are advised to stay away from share market investment. The investor who does not have any investment in gold may think of buying gold. The gold is going to be scare in the medium term. The RBI has already started buying gold from IMF. However, gold should not form more than 20% of the total portfolio of any person. THE GOLD ETF can be bought by senior citizen if the have holding capacity. The Gold investment might give a decent return within three to four years time.
Many of our readers have asked where they need to invest. I would like to remind all our readers that investment depends on the risk taking capacity of individual persons, as well as their planning of resources for future. So pattern of investment would be different for different persons. If a person has built up his own home already and doe snot have mortgage to pay bank he or she can take risk more than a person who has yet to clear his hose loan. THE AGE OF PERSON ALSO WOULD DETERMIND THE INVESTMENT PATTERN. I don’t advice any of our senior citizen, of more than seventy years of age, to get into equity based investment now. But this the time for our young readers above 28 years of age to get into buying equity provided they can keep on investing under ‘ systematic Investment Plan’ (SIP) . This is a good time to invest for market has come down substantially from high of 17,000 of September. Many investments GURU believe market may tumble down to a low of 12,000. But I do not believe in such calculations because till now no scientific device has been evolved to correctly predict the market behaviors. MY RECOMMENDATION WOULD BE TO INVEST Now under SIP atleast for two three years and hold the investment atleast for three to four years.
A few senior citizens have asked whether they should desist from entering share market at all. MY VIEWS ARE CLEAR THAT SENIOR CITZEN CAN ENTER THE MARKET PROVIDED THE HAVE EXPERIECE OF MARKET FLUCTUATION AND HAVE HIGH RISK TAKIG CAPACITY. SENIOR CITIZEN SHOULD ENTER INTO GOVERNMENT OF INDIA’S SENIOR CITIZEN SAVIBG SCHEME (SCSS) WHERE even now returns are 9%. The maximum limit of investment is 15lakh. The interest of BANK FIXED DEPOSIT, FOR THREE TO FIVE YEARS PERIOD, IS AROUND 7.25% TO 7.50% ONLY. At present not only equity is doing badly but debt and income funds are also not doing well. SO it would be appropriate to hold the wealth with you, and invest slowly with a clear vision for future, after proper study and planning. The Senior citizen can subscribe balance funds also.
Many readers are asking whether they should invest in mutual fund or in stock. I have explained this issue number of times. Yet I would explain my views once again as lot of persons are asking the question. Please do not enter share market just because your neighbour have done so and have minted money. Before entering the share market ask yourself whether if you have time to study market fluctuations. Do you understand macro and micro economic values? The most people do not have patience to study and to follow up the turn and twist of market. IF you do not have expertises avoid share market and go through the route of mutual funds first. When you get experienced in mutual fund you can get into share market after studying market behaviors from reputed news papers, financial journals etc or through your financial advisors. One thing is sure if you have patience and capacity withstands risk this is the time TO enter market through SIP. A TIME WILL PERHAPS COME, AFTER FOUR YEARS OR SO, WHEN YOU WOULD BE ABLE TO CONGRATLATE YOURSELF FOR TAKIG THE RIGHT DECISION NOW.
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Under the present low market situation I would like to recommend our readers to invest only if they can hold the money invested for atleast four years. The investors who would be in need of money within one or two years they are advised to stay away from share market investment. The investor who does not have any investment in gold may think of buying gold. The gold is going to be scare in the medium term. The RBI has already started buying gold from IMF. However, gold should not form more than 20% of the total portfolio of any person. THE GOLD ETF can be bought by senior citizen if the have holding capacity. The Gold investment might give a decent return within three to four years time.
Many of our readers have asked where they need to invest. I would like to remind all our readers that investment depends on the risk taking capacity of individual persons, as well as their planning of resources for future. So pattern of investment would be different for different persons. If a person has built up his own home already and doe snot have mortgage to pay bank he or she can take risk more than a person who has yet to clear his hose loan. THE AGE OF PERSON ALSO WOULD DETERMIND THE INVESTMENT PATTERN. I don’t advice any of our senior citizen, of more than seventy years of age, to get into equity based investment now. But this the time for our young readers above 28 years of age to get into buying equity provided they can keep on investing under ‘ systematic Investment Plan’ (SIP) . This is a good time to invest for market has come down substantially from high of 17,000 of September. Many investments GURU believe market may tumble down to a low of 12,000. But I do not believe in such calculations because till now no scientific device has been evolved to correctly predict the market behaviors. MY RECOMMENDATION WOULD BE TO INVEST Now under SIP atleast for two three years and hold the investment atleast for three to four years.
A few senior citizens have asked whether they should desist from entering share market at all. MY VIEWS ARE CLEAR THAT SENIOR CITZEN CAN ENTER THE MARKET PROVIDED THE HAVE EXPERIECE OF MARKET FLUCTUATION AND HAVE HIGH RISK TAKIG CAPACITY. SENIOR CITIZEN SHOULD ENTER INTO GOVERNMENT OF INDIA’S SENIOR CITIZEN SAVIBG SCHEME (SCSS) WHERE even now returns are 9%. The maximum limit of investment is 15lakh. The interest of BANK FIXED DEPOSIT, FOR THREE TO FIVE YEARS PERIOD, IS AROUND 7.25% TO 7.50% ONLY. At present not only equity is doing badly but debt and income funds are also not doing well. SO it would be appropriate to hold the wealth with you, and invest slowly with a clear vision for future, after proper study and planning. The Senior citizen can subscribe balance funds also.
Many readers are asking whether they should invest in mutual fund or in stock. I have explained this issue number of times. Yet I would explain my views once again as lot of persons are asking the question. Please do not enter share market just because your neighbour have done so and have minted money. Before entering the share market ask yourself whether if you have time to study market fluctuations. Do you understand macro and micro economic values? The most people do not have patience to study and to follow up the turn and twist of market. IF you do not have expertises avoid share market and go through the route of mutual funds first. When you get experienced in mutual fund you can get into share market after studying market behaviors from reputed news papers, financial journals etc or through your financial advisors. One thing is sure if you have patience and capacity withstands risk this is the time TO enter market through SIP. A TIME WILL PERHAPS COME, AFTER FOUR YEARS OR SO, WHEN YOU WOULD BE ABLE TO CONGRATLATE YOURSELF FOR TAKIG THE RIGHT DECISION NOW.
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Tuesday, October 27, 2009
RANJAN DAS : A WIZARD OF CORPORATE SKY
Ranjan Das, Managing Director of SAP INDIA LTD is no more ! He was 42 years old and considered, by many Corporate Gurus, as the ‘Wizard of the Business Management”. His passing away has created a void in the world of international business. The obituary of Ranjan appeared in National and International electronic & print media all over the world including The WALL Street Journal to Economic Times to quote a few. Assam remained mute spectator to this sad incident, perhaps, in agony; no Assamese knew how to react! He succumbed to heart attack soon after the morning work up on 21st October, at his residence in Bombay.
Ranjan was an energetic boy from Guwahati, Assam, with a determined dream in his eyes. He was born and raised initially at Guwahati by his middle class parent from Uzanbazar. His father was an Assistant Director of Industries. Ranjan had his initial schooling in Guwahati and later studied in Indore and Delhi. He graduated from MIT and did his MBA from Harvard Business School during his mid twenties, all on scholarship from both the well-known university itself.
When he died on October 21st he was only 42 years old. Ranjan’s meteoric rise was a story of success of will power, of Assamese middle class, over money. He always dreamt big. He was restless to achieve his dream. Rajan was selected as the Managing Director and CEO of SAP India Ltd., an international company, promoted by five Germans working once for IBM. Today IBM is one of their licensee in ERM business. Ranjan joined the group eight years ago as its Senior vice president when he was only 34 years old. He had a meteoric rise and within four years he headed his department in USA. On 2007 he was selected to head the organization in INDIA when he was only 39 years old.. A very few Indian has been able to achieve such a distinction in international arena of high business. SAP is the world’s greatest ERP company. Today, IBM, Price water house, TCS, WIPRO even Infosys are their licensees. HCL has joined the bandwagon too.
Ranjan came to India in JULY 2007 and created a niche in the business world. It is an accepted fact that SAP became one of the greatest success stories of Asia during last two years of his leadership. He could defy recession. WHEN MANY COMPANIES were STRUGGLING HARD DURING THIS PERIOD HE took SAP to a great height. Every business head were admitting superb business sense of Ranjan. Ranjan was a fitness freak too. He used to run five miles a day, used work up at gymnasium every morning to keep him fit. He was a fit person alright. Last year he participated in a cross country race in Chennai. Alas, his fitness manias brought him down and he died just after arriving home from gymnasium down below of his apartment. Hearing the news, his mother, at Guwahati, was stunned and devastated in such a way that she could not even manage to visit Bombay to attend the last right of her eldest son.
With his huge success in India, Ranjan was considered to be the next CEO of world wide SAP. If he would have survived the heart attack he would have been the first world leader of business from Assam.
Alas! Ranjan’s death was a misfortune for ASSAM nay to Indian middle class rise. He would have taken professional skill to a rarefied height of international success.
I met Ranjan way back in the later part of eighty when he came to see me seeking my help when his American visa was rejected due to miss understanding of a clause in his i-20. Ron Lorton was then the Console General in Kolkata. During our discussion the miss interpretation was cleared and visa was granted to Ranjan. The MIT offered Ranjan full fees to pursue his studies leading to bachelor degree in computer science. Ranjan studied for full four years and came out with flying colours. After a brief work in Oracle he tried and obtained a scholarship from HARVARD for MBA. He came out with flying co lour and founded a company. He named it “Pataki net work.com.” His dream was not fulfilled. He joined back Oracle. Achieved greater success. German Bosses of SAP were observing him. They gave him an offer which he could not refuse for he wanted to fulfill fill his dream. Ranjan always felt that a Middle class Assamese is not inferior to anyone in the world. He wanted to prove it by his hard and dedicated work. He alwys felt to be a topper, is not important but sincerity of purpose, devotion and hard work are vital for success in life or in death. He strived to achieve that dream. He was successful too. He felt four hours sleep is good enough for a young man. HE hardly slept, mostly dreamt, worked and exercised. Perhaps HE PROVED HIMSELF WRONG. He needed more sleep to ward off his stress.
Ranjan has remained a symbol of empowerment to new generation. From a primary and high school of Guwahti, secondary school of indore he showed how a middle class boy can get admission in MIT and HARVARD without having a penny of his own. In his entire dream and dedicated work it was his lovely wife RUPA contributed most. It was Rupa who took control of entire home affairs raising two boys and agreed to relocate from Bay area, for the sake of his dream, to India. Behind every successful man there remains a lady. Rupa fulfilled her responsibilities with pleasure. She was a journalist herself. She will miss him most.
Ranjan was a great person who loved his state most, named his company in USA with Assamese name. His dream to make ASSAM known for professional leadership remained unfulfilled. Hope someone from Assam will fulfill his dream in future! Once in Boston, accepting his hospitality, I asked him ‘who inspired you most to dream great?’ Without batting an eyelid he replied “It was my Mother who inspired me to dream and it was Rupa who tried to transform it to reality”. Today, Ranjan is no more, but his legacy continues to inspire young boys from Assam to dream… Today we salute to Ranjan’ s indomitable spirit. Let his soul rest in peace.
---------------------------------------------
Ranjan was an energetic boy from Guwahati, Assam, with a determined dream in his eyes. He was born and raised initially at Guwahati by his middle class parent from Uzanbazar. His father was an Assistant Director of Industries. Ranjan had his initial schooling in Guwahati and later studied in Indore and Delhi. He graduated from MIT and did his MBA from Harvard Business School during his mid twenties, all on scholarship from both the well-known university itself.
When he died on October 21st he was only 42 years old. Ranjan’s meteoric rise was a story of success of will power, of Assamese middle class, over money. He always dreamt big. He was restless to achieve his dream. Rajan was selected as the Managing Director and CEO of SAP India Ltd., an international company, promoted by five Germans working once for IBM. Today IBM is one of their licensee in ERM business. Ranjan joined the group eight years ago as its Senior vice president when he was only 34 years old. He had a meteoric rise and within four years he headed his department in USA. On 2007 he was selected to head the organization in INDIA when he was only 39 years old.. A very few Indian has been able to achieve such a distinction in international arena of high business. SAP is the world’s greatest ERP company. Today, IBM, Price water house, TCS, WIPRO even Infosys are their licensees. HCL has joined the bandwagon too.
Ranjan came to India in JULY 2007 and created a niche in the business world. It is an accepted fact that SAP became one of the greatest success stories of Asia during last two years of his leadership. He could defy recession. WHEN MANY COMPANIES were STRUGGLING HARD DURING THIS PERIOD HE took SAP to a great height. Every business head were admitting superb business sense of Ranjan. Ranjan was a fitness freak too. He used to run five miles a day, used work up at gymnasium every morning to keep him fit. He was a fit person alright. Last year he participated in a cross country race in Chennai. Alas, his fitness manias brought him down and he died just after arriving home from gymnasium down below of his apartment. Hearing the news, his mother, at Guwahati, was stunned and devastated in such a way that she could not even manage to visit Bombay to attend the last right of her eldest son.
With his huge success in India, Ranjan was considered to be the next CEO of world wide SAP. If he would have survived the heart attack he would have been the first world leader of business from Assam.
Alas! Ranjan’s death was a misfortune for ASSAM nay to Indian middle class rise. He would have taken professional skill to a rarefied height of international success.
I met Ranjan way back in the later part of eighty when he came to see me seeking my help when his American visa was rejected due to miss understanding of a clause in his i-20. Ron Lorton was then the Console General in Kolkata. During our discussion the miss interpretation was cleared and visa was granted to Ranjan. The MIT offered Ranjan full fees to pursue his studies leading to bachelor degree in computer science. Ranjan studied for full four years and came out with flying colours. After a brief work in Oracle he tried and obtained a scholarship from HARVARD for MBA. He came out with flying co lour and founded a company. He named it “Pataki net work.com.” His dream was not fulfilled. He joined back Oracle. Achieved greater success. German Bosses of SAP were observing him. They gave him an offer which he could not refuse for he wanted to fulfill fill his dream. Ranjan always felt that a Middle class Assamese is not inferior to anyone in the world. He wanted to prove it by his hard and dedicated work. He alwys felt to be a topper, is not important but sincerity of purpose, devotion and hard work are vital for success in life or in death. He strived to achieve that dream. He was successful too. He felt four hours sleep is good enough for a young man. HE hardly slept, mostly dreamt, worked and exercised. Perhaps HE PROVED HIMSELF WRONG. He needed more sleep to ward off his stress.
Ranjan has remained a symbol of empowerment to new generation. From a primary and high school of Guwahti, secondary school of indore he showed how a middle class boy can get admission in MIT and HARVARD without having a penny of his own. In his entire dream and dedicated work it was his lovely wife RUPA contributed most. It was Rupa who took control of entire home affairs raising two boys and agreed to relocate from Bay area, for the sake of his dream, to India. Behind every successful man there remains a lady. Rupa fulfilled her responsibilities with pleasure. She was a journalist herself. She will miss him most.
Ranjan was a great person who loved his state most, named his company in USA with Assamese name. His dream to make ASSAM known for professional leadership remained unfulfilled. Hope someone from Assam will fulfill his dream in future! Once in Boston, accepting his hospitality, I asked him ‘who inspired you most to dream great?’ Without batting an eyelid he replied “It was my Mother who inspired me to dream and it was Rupa who tried to transform it to reality”. Today, Ranjan is no more, but his legacy continues to inspire young boys from Assam to dream… Today we salute to Ranjan’ s indomitable spirit. Let his soul rest in peace.
---------------------------------------------
Thursday, September 24, 2009
Whether buying of gold makes sense now?
During last few months I am flooded with a question from our readers whether should they buy Gold or Gold ETF. I am really surprised to find that so many persons have been rushing to buy Gold now a days. Gold have been favourite of human being from time immemorial. In fact Indian buys and holds maximum quantity of gold. Indian uses gold in ornaments during the wedding. Fashionable persons were gold jeweleries to make style statement. Yet most of the people uses it as the security for life during the financial crisis.
The birth of GOLD ETF emerged out of this sense of secuirty for life. The orld monetary system revolves round the GOLD standard. Nobdoy knows actually how many tons of Gold are kept in the FORTKNOX of USA but i the belief that works out like miracle. Entire monetary system revolve around the Gold. Recently IMF had recommended that countries of the world can sell Gold to combate recession. It is expected that GOLD price may come down when actual sell of Gold takes place. But according to some economist in the next fifteen years the value of Gold would go up many fold. In that pre supposition value of Gold is going up slowly from now onwards. So whether people should buy Gold or GOLD ETF ?
According to me if someone wants to make jeweleary for ewedding then it would be prudent to buy Gold. But it people wants to make an investment out of Gold then it is better to buy Gold ETF. What is GOLD ETF? Who started it? Is is worth while to buy ETF rather the Gold Metal? These are the questions need to be answaeered now.
Exchange traded funds (ETFs)were first introduced on the Toronto, Canada, Stock Exchange around the early '90s. They were then introduced in to the US and other markets during the 90s. in India Gold ETF was started during Twentyfirst century. What is the meaning of GOLD ETF fund?
A simplified definition would be: An exchange traded fund has funds and stocks in one product and trade is made on the particular fund. Prior to ETFs, stocks and funds, were traditionally kept separate to reflect liquidity issues.
The purpose of an ETF is to be able to invest in the growth of an industry or even commodity that was not easily available to the market prior to ETFs.There are certain inherant benefit of ETF. Those are:flexibility in the timing of purchases and sales. No taxes involves in ETF if investment is held for more than a year. However there are cetain disadvantage that there is no control of thebuyers of ETF over the activities or the content of the ETF. There is no gurantee that ETF buyer would own real Gold metal.The i9nvestor cannot redeem gold or take delivery of the gold. They can ofcourse get Cash equivalent to value of market based gold. To buy ETF there is hidden cost broker but that is minimal . It is even lowers than MFund cost. The unit reflect the price of actual price of London Bullion market. The greatst advantage is ETF is safe and there no problem of storage and cannot be sold any day when market is open.Once you have a brokerage account you can buy Gold ETF by placing an order like a normal stock order to buy listed Gold ETF. Most of the ETF are listed only on NSE. Unfortunately, BSE does not have any Gold ETF listed on it.
Gold EFT are fast becoming a rage in India. One reason attributed to its popularity could be its stellar performance in a relatively subdued market conditions.
It is a wise decision to allocate just a small portion of your portfolio to gold ETFs. Gold ETFs should not be looked at as a mainstream investment. Currently, there are six gold ETFs operating in the market and they are all alike. They are structured in a way that all generate same return. The NAV of all funds should be similar as per the market price of the gold metal .All ETF funds charge one percent expense. So any Gold ETF is virtually cost same and returns are also same.
When first introduced in India, many were skeptical about its relevance and suitability in Indian markets, however increasing volumes and new scheme launches(Quantum, SBI) indicate its growing acceptance in a naive market like India. It is a complex financial instrument. It involves many different entities apart from usual fund managers who manage the scheme. However, its has its own limitations since it is listed on exchanges.
Many people are unaware of ways to buy a GOLD ETF.
You need a Demat account along with broker who is a member of NSE to buy a Gold ETF. How much investment a persons should make in Gold or Gold ETF?
Any investopr should not invest al their disposable income in one basket. The money to be invested should be distributed. A persons of forty years age as the thumb rule goes should invest 60% in equity 20% in Gold ETF and 20% in Debt fund or FD( including PPF and bank saving acount). Investors some time make mistake of high investment in Gold ETF as they find when Dollar value goes down Gold Value goes up. But experience says nothing provide better return in long run than (1) work of art,(2) equity,(3) house and then only(4) Gold or Gold ETF. The investor should have gold ETF in their folio but not in preference to equity,and housing . The Gold ETF is good for creation of Wealth butnot for running their family expenses.
To hedge against Financial Collapse buying physical Gold is good if you have secured place to store.In a situation of great financial crisis GOLD ETF and share of Gold mining comapnies would never help . What should be done now?
Buy Gold or Gold ETF on DIP( not share of manufacturing comoanies) and keep it for for long term. But beaware gold should be a minor part of your portfolio and not the whole of your portfolio.
------------------------------------------------------------------------
The birth of GOLD ETF emerged out of this sense of secuirty for life. The orld monetary system revolves round the GOLD standard. Nobdoy knows actually how many tons of Gold are kept in the FORTKNOX of USA but i the belief that works out like miracle. Entire monetary system revolve around the Gold. Recently IMF had recommended that countries of the world can sell Gold to combate recession. It is expected that GOLD price may come down when actual sell of Gold takes place. But according to some economist in the next fifteen years the value of Gold would go up many fold. In that pre supposition value of Gold is going up slowly from now onwards. So whether people should buy Gold or GOLD ETF ?
According to me if someone wants to make jeweleary for ewedding then it would be prudent to buy Gold. But it people wants to make an investment out of Gold then it is better to buy Gold ETF. What is GOLD ETF? Who started it? Is is worth while to buy ETF rather the Gold Metal? These are the questions need to be answaeered now.
Exchange traded funds (ETFs)were first introduced on the Toronto, Canada, Stock Exchange around the early '90s. They were then introduced in to the US and other markets during the 90s. in India Gold ETF was started during Twentyfirst century. What is the meaning of GOLD ETF fund?
A simplified definition would be: An exchange traded fund has funds and stocks in one product and trade is made on the particular fund. Prior to ETFs, stocks and funds, were traditionally kept separate to reflect liquidity issues.
The purpose of an ETF is to be able to invest in the growth of an industry or even commodity that was not easily available to the market prior to ETFs.There are certain inherant benefit of ETF. Those are:flexibility in the timing of purchases and sales. No taxes involves in ETF if investment is held for more than a year. However there are cetain disadvantage that there is no control of thebuyers of ETF over the activities or the content of the ETF. There is no gurantee that ETF buyer would own real Gold metal.The i9nvestor cannot redeem gold or take delivery of the gold. They can ofcourse get Cash equivalent to value of market based gold. To buy ETF there is hidden cost broker but that is minimal . It is even lowers than MFund cost. The unit reflect the price of actual price of London Bullion market. The greatst advantage is ETF is safe and there no problem of storage and cannot be sold any day when market is open.Once you have a brokerage account you can buy Gold ETF by placing an order like a normal stock order to buy listed Gold ETF. Most of the ETF are listed only on NSE. Unfortunately, BSE does not have any Gold ETF listed on it.
Gold EFT are fast becoming a rage in India. One reason attributed to its popularity could be its stellar performance in a relatively subdued market conditions.
It is a wise decision to allocate just a small portion of your portfolio to gold ETFs. Gold ETFs should not be looked at as a mainstream investment. Currently, there are six gold ETFs operating in the market and they are all alike. They are structured in a way that all generate same return. The NAV of all funds should be similar as per the market price of the gold metal .All ETF funds charge one percent expense. So any Gold ETF is virtually cost same and returns are also same.
When first introduced in India, many were skeptical about its relevance and suitability in Indian markets, however increasing volumes and new scheme launches(Quantum, SBI) indicate its growing acceptance in a naive market like India. It is a complex financial instrument. It involves many different entities apart from usual fund managers who manage the scheme. However, its has its own limitations since it is listed on exchanges.
Many people are unaware of ways to buy a GOLD ETF.
You need a Demat account along with broker who is a member of NSE to buy a Gold ETF. How much investment a persons should make in Gold or Gold ETF?
Any investopr should not invest al their disposable income in one basket. The money to be invested should be distributed. A persons of forty years age as the thumb rule goes should invest 60% in equity 20% in Gold ETF and 20% in Debt fund or FD( including PPF and bank saving acount). Investors some time make mistake of high investment in Gold ETF as they find when Dollar value goes down Gold Value goes up. But experience says nothing provide better return in long run than (1) work of art,(2) equity,(3) house and then only(4) Gold or Gold ETF. The investor should have gold ETF in their folio but not in preference to equity,and housing . The Gold ETF is good for creation of Wealth butnot for running their family expenses.
To hedge against Financial Collapse buying physical Gold is good if you have secured place to store.In a situation of great financial crisis GOLD ETF and share of Gold mining comapnies would never help . What should be done now?
Buy Gold or Gold ETF on DIP( not share of manufacturing comoanies) and keep it for for long term. But beaware gold should be a minor part of your portfolio and not the whole of your portfolio.
------------------------------------------------------------------------
THE IMPACT OF DIRECT TAX CODE ON COMMON PEOPLE
The Finance Minister recently announced the proposed Direct Tax Code effective April 2011. The code aims at a comprehensive reform in the sphere of personal and corporate taxation. We would however discuss the impact of the code on common people. To safe guard the interest of business, industry and workmen there are number of chambers of commerce and Trade Unions but for common self employed people and retired people there are none. The Code is open for Public discourse hence it should be debated, discussed and recommendations need to be sent to finance Ministry.
There is a great difference between" Code" and the "ACT". The government is trying to bring in Direct Tax Code" instead of present system of "Tax under Finance Act".
.The Code would be permanent affairs like "Cr P C" or "I PC". Once tax act is converted into a code it would generally not be necessary to introduce changes every year along with budget. This is a reform which the government wants to bring in for the good of the people. The code has proposed no change in the exemption limit of the personal tax. It remains 1,60000 for men,1,90,000 for women and 2,40,000 for senior citizen. Yet percentage of taxation has been reduced up to income of Rs.Ten lakh.
Prima facie, the tax liability will reduce significantly as the draft code proposes to tax incomes up to Rs 10 lakh at 10%, that between Rs 10 lakh and Rs 25 lakh at 20% and sum in excess of that at 30%. Now people pay 10% tax only if his income is less than Rs Three lakh. A person drawing Rs 10 lakh now pays Rs 2.11 lakh as tax. If Code is implemented he would pay tax amounting to Rs 84,000/- only. Is it not really good?
But all deduction now under 80 c will vanish as it is available now except for a few like new pension schemes, LIC etc! This means death nails on small saving schemes. However deduction under 80 C will be enhanced from Rs one lakh to Three lakh. This allowance would surely help generation next. But the exemption on retirement benefits would vanish. The retirement savings will become taxable on withdrawal, as the draft code has proposed to usher in exempt-exempt-tax (EET) regime. The PPF and PF will loose all its glamour and tax benefit.
For younger Home owner there is a bad news too, the deduction of Rs 1.5 lakh allowed on interest paid on home loans appears set to be scrapped. There is no mention of such a deduction being allowed in the draft code. Young people will not get tax benefit.
On implementation of the code all perks would considered part of the gross salary for the purpose of taxation. The impact of that on tax liability of an individual will be known only when the rules are prescribed by the income-tax department at a later date.
But there would be equity in the tax system both vertically and horizontally across all sectors.. The tax treatment of the perks enjoyed by the government employee and the private sector employee will be the same. Till now government sector was in advantage!
It has also proposed that benefits such as gratuity payment made to employees on change of jobs will be allowed tax exemption only if it is invested in a retirement fund.
The most significant reform would be to bring in the EET regime for all approved provident funds, approved superannuation funds, life insurance and New Pension System trust from April 1, 2011 . The PF and PPF were under EEE system now. This benefit will vanish. The amount would be taxed on the year of withdrawal. This would hurt middle class and specially retired lot.
However, the proposed code provides that the withdrawal of any accumulated balance as on March 31, 2011 , from the specified instruments such as PPF will not be subject to tax. The senior citizen should not withdraw amount in a hurry to save tax. Because, where ever they invest the interest would be taxed. The money in PPF should be kept there itself, if possible, as the interest earned would be exempted from tax. When ever emergent requirement occurs then only it should be taken out after paying tax .In that event tax incidence would be much lower. Of course, the rollover from one exempt fund to another fund will not be subject to tax. This means from PF or PPF you can transfer it to NSC and NPS without attracting tax...
The code has proposed to continue with other deductions such as medical insurance premium, medical treatment or maintenance of disabled dependent, treatment for specified diseases for self and dependents, for the handicapped, interest on loan taken for higher education, rent paid for residence, donations to certain non-profit organisations and specified institutions and tuition fees for children.
The long term capital gain tax on equity based instrument was exempt from Taxes till now. But if code is approved it would be taxed like short term capital gains. This would affect the sentiments of investors. Now mutual fund investor would prefer to invest in dividend mode for the dividend would remain exempt from tax.
It appeared that for middle class two things would adversely effect. The taxation on withdrawal of PPF and PF and withdrawal of long term capital gains tax. The code was released for Public response. It would not be wise to sleep over it. Posterity would blame if present generation do not participate in such reform process for common people
-----------------------------------
There is a great difference between" Code" and the "ACT". The government is trying to bring in Direct Tax Code" instead of present system of "Tax under Finance Act".
.The Code would be permanent affairs like "Cr P C" or "I PC". Once tax act is converted into a code it would generally not be necessary to introduce changes every year along with budget. This is a reform which the government wants to bring in for the good of the people. The code has proposed no change in the exemption limit of the personal tax. It remains 1,60000 for men,1,90,000 for women and 2,40,000 for senior citizen. Yet percentage of taxation has been reduced up to income of Rs.Ten lakh.
Prima facie, the tax liability will reduce significantly as the draft code proposes to tax incomes up to Rs 10 lakh at 10%, that between Rs 10 lakh and Rs 25 lakh at 20% and sum in excess of that at 30%. Now people pay 10% tax only if his income is less than Rs Three lakh. A person drawing Rs 10 lakh now pays Rs 2.11 lakh as tax. If Code is implemented he would pay tax amounting to Rs 84,000/- only. Is it not really good?
But all deduction now under 80 c will vanish as it is available now except for a few like new pension schemes, LIC etc! This means death nails on small saving schemes. However deduction under 80 C will be enhanced from Rs one lakh to Three lakh. This allowance would surely help generation next. But the exemption on retirement benefits would vanish. The retirement savings will become taxable on withdrawal, as the draft code has proposed to usher in exempt-exempt-tax (EET) regime. The PPF and PF will loose all its glamour and tax benefit.
For younger Home owner there is a bad news too, the deduction of Rs 1.5 lakh allowed on interest paid on home loans appears set to be scrapped. There is no mention of such a deduction being allowed in the draft code. Young people will not get tax benefit.
On implementation of the code all perks would considered part of the gross salary for the purpose of taxation. The impact of that on tax liability of an individual will be known only when the rules are prescribed by the income-tax department at a later date.
But there would be equity in the tax system both vertically and horizontally across all sectors.. The tax treatment of the perks enjoyed by the government employee and the private sector employee will be the same. Till now government sector was in advantage!
It has also proposed that benefits such as gratuity payment made to employees on change of jobs will be allowed tax exemption only if it is invested in a retirement fund.
The most significant reform would be to bring in the EET regime for all approved provident funds, approved superannuation funds, life insurance and New Pension System trust from April 1, 2011 . The PF and PPF were under EEE system now. This benefit will vanish. The amount would be taxed on the year of withdrawal. This would hurt middle class and specially retired lot.
However, the proposed code provides that the withdrawal of any accumulated balance as on March 31, 2011 , from the specified instruments such as PPF will not be subject to tax. The senior citizen should not withdraw amount in a hurry to save tax. Because, where ever they invest the interest would be taxed. The money in PPF should be kept there itself, if possible, as the interest earned would be exempted from tax. When ever emergent requirement occurs then only it should be taken out after paying tax .In that event tax incidence would be much lower. Of course, the rollover from one exempt fund to another fund will not be subject to tax. This means from PF or PPF you can transfer it to NSC and NPS without attracting tax...
The code has proposed to continue with other deductions such as medical insurance premium, medical treatment or maintenance of disabled dependent, treatment for specified diseases for self and dependents, for the handicapped, interest on loan taken for higher education, rent paid for residence, donations to certain non-profit organisations and specified institutions and tuition fees for children.
The long term capital gain tax on equity based instrument was exempt from Taxes till now. But if code is approved it would be taxed like short term capital gains. This would affect the sentiments of investors. Now mutual fund investor would prefer to invest in dividend mode for the dividend would remain exempt from tax.
It appeared that for middle class two things would adversely effect. The taxation on withdrawal of PPF and PF and withdrawal of long term capital gains tax. The code was released for Public response. It would not be wise to sleep over it. Posterity would blame if present generation do not participate in such reform process for common people
-----------------------------------
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