Indian Saver and Retiree facing STAGFLATION !!

COVID and its aftermath led to govt killing the saver with negative interest rates and worse prices of everything/ daily commodities / basics etc shot up by a minimum of 5% to 10% .. worse the UKRAINE WAR has increased inflation by another 10 to 15 % the difficulty as commodities such as Wheat and OILS have shot up as has cost of fuel gas , petrol diesel etc.

Savings bank gives 3.5 % if ur lucky fds give u 6% seniors get 6.5%. A Vadapav which cost Rs 10 now costs 15 to 25. Even AMUL was forced to up milk costs by Rs 1 / 2 .

The State Govts and Centre has increased inflation by increasing fuel tax during covid time. RBI has done nothing to deal with inflation,, It created very ultra easy liquidity policy post covid..Govt data Inflation is much above RBIs own stated comfort zone. The bond market has been signaling massive inflation for some time now as ET on apr 4 headlined : 10-year bond yield to soon cross 7%; bloodbath in market shows struggle with supply..

Elevated crude prices , commodity prices and a massive govt borrowing program can be a recipee for disaster especially for the non pension retiree and saver who depends on fds as incomes have crashed.

“The 10-year benchmark paper should be around 7-7.25 per cent, possibly by the end of this month as the borrowing in the first half is definitely higher than what the market had expected,

On 4 May, the Reserve Bank of India (RBI) shocked both the stock and bond markets by raising the repo rate by 40 basis points (bps) to 4.4%. This was an inter-meeting hike. and this is not going to change anything Is it too little too late ?

Budget 2022 – What matters most !

With 5 state elections and the farmer agitation fiasco the budget was expected to be populist and fiscally imprudent , The govt should have indexed slabs to real or at least CPI Inflation to give relief to people. ET says Middle class taxpayers left in lurch again as there are no changes in the tax front

Budget math doesnt add up  .. it seldom does in India The combined deficit of States and centre is 10.5%+ .. and govt will go for record deficit financing ..This is interesting as US fed is expected to up Interest rates and change policy from ultra super easy monetary policy . THE RBI and Modi govt will depend on INFLATION TAX as a means to balance its books !!

Will we have runaway food inflation ??? Already real food inflation is massive ,, greens prices are double .. vegs costs are up 25to 50%

TAX Rates refresher

1
Tax Rates
2
Tax Rates Senior Citizens
3
Tax Rates Super Seniors 80+.

Standard deduction Rs 50,000 as provided, they opt for the old tax regime in the financial year 2022-23.

Broad Tax Proposals

  • Provision for filing ‘Updated Income Tax returns’ within 2 years from end of relevant AY
  • Reduced AMT rates for Co-operatives from 18.5% to 15%
  • Reduced surcharge for Co-operatives with total income of 1cr to 10Cr Proposal will reduce surcharge on cooperative societies to 7%.
  • Tax relief for persons with disability: Allow annuity payment to differently abled dependents when parents attaining age of 60 years
  • Deduction for National Pension Scheme for State Government employees u.s 80CCC made at par with Central Govt.
  • Start-ups established before 31.03.2023 (earlier – 31.03.2022; now extended by 1 year) will be provided tax breaks
  • Last date for commencement of manufacturing for claiming lower tax regime under Section 115BAB to be 31.03.2024 (earlier 31.03.2023; now extended by 1 year)
  • Virtual digital assets (Cryptocurrency):
    Income from transfer of virtual digital assets to be taxed at 30%; No deduction for expenses other than cost of acquisition; No set off of losses
    TDS @ 1% on consideration above specific threshold
    Gift to be taxed u.s 56(2)(x)
  • No repetitive appeals for common question of laws
  • Off-shore banking units/ IFSC income to be provided exemptions
  • Surcharge of certain AOPs to be capped at 15%
  • Surcharge on Long Term Capital Gains on any assets to be capped at 15%
  • Health and education cess not allowable as business expenditure u/s 37
  • No set off of losses against undisclosed income detected during search
  • Any cess or surcharge on income not allowed as business expenditure
  • 1 per cent TDS on transfer of virtual assets above a threshold, gifts to be taxed
  • Surcharge on long-term capital gains capped at 15 per cent
  • Loss cannot be set off from any other income

Expenditure and deficit & other key numbers
Proposed fiscal deficit of 4.5% of GDP by 2025/26
Projected fiscal deficit of 6.4% of GDP in 2022/23
Revised fiscal deficit for 2021/22 at 6.9% of GDP
50 year interest free loans over and above normal borrowing allowed for states
Scheme for financial assistance to states for capital investment outlay to be Rs 1 lakh crore for 2022/23 Public issue of Life Insurance Corporation expected shortly

Tax payers can update returns within 2 yrs of AY: Taxpayers will be given more time to update their income tax returns (ITR), announced FM Nirmala Sitharaman during her Budget 2022 speech. As per the announcement, “I am proposing to file an updated return on payment of additional tax for two years from the end of the relevant assessment years.”

Budget 2022 levies 30% tax and TDS on crypto assets: The government has proposed that transfer of any virtual/cryptocurrency asset will be taxed at 30%. No deduction except cost of acquisition will be allowed and no loss in transaction will be allowed to be carried forward, the finance minister announced in Budget 2022 today. TDS will be imposed on payments for the transfer of crypto assets at a rate of 1% for transactions over a certain threshold. Gifts of crypto assets will be taxed in the recipient’s hands.

Image

Some pointer from Economic times site

MUMBAI LOCAL TRAIN FARE CHARTS

MUMBAI LOCAL TRAIN LOCAL FARE CHART / MONTHLY PASS FARE CHART

https://wr.indianrailways.gov.in/cris/uploads/files/1442984551054-Suburban%20Fare%20table%20ST.pdf

https://wr.indianrailways.gov.in/cris/uploads/files/1442984528198-Suburban%20Fare%20table%20CT.pdf

WESTERN RAILWAY TRAIN SCHEDULE / LIST

CENTRAL RAILWAY TRAIN SCHEDULE / LIST

NETWORK MAP

GAS GEYSER SERVICE N REPAIR

GAS GEYSER SOUNDS
TiK CLIK CLICK CLICK CLIK CLICK TAK ……PUK TiK
TiK MAGNET CLIK IGNITER TAK SOLENOID OPEN PUK SOLENOID CLOSE
DIRT GRIME IN PIPES BURNERS AND HEAT EXCHANGER WILL DISABLE GAS GEYSER
RELEASE pressure from GAS INLET pipe by removing the regulator and the gas pipeNOZZLE on the GAS GEYSER .. Clean/OIL LPG regulator DIAL and PIN

Clean the inlet mesh on gas pipe and water pipe properly. REMOVE all CONNECTIONS with circuits and switch AND CLEAN PINS OF ALL CONNECTORS with toothbrush WD 40 OR IPA AND RECONNECT ..
When u tighten n reconnect the GAS PIPE use TEFLON TAPE and please CHECK FOR GAS LEAKAGE WITH SOAPY SOLUTION
A good seal is vital to avoid fires .


CHK BATTERY BOX
Chk the wires comming out of Battery BOX With DC Voltage Multimeter DC CURRENT DIAL 20
Batterys should give slightly below or around 3v DC ie 1.5 x 2 Note READING
Chk if switch is ok

When SWITCH is ON an water tap is OPENED MAGNET In pipe moves up
and activates the MAGNET SENSOR
Open TAP: TIK MAGNET Goes up Water inlet pipe and completes water circuit
Close TAP : TIK MAGNET Goes down breaking water circuit. Continuity chk : circuit is continuous when water is flowing ie magnet is next to it,

CHK if MAGNET IS MOVING UP AND DOWN IN WATER INLET PIPE

CHK MAGNET SENSOR IF NECESSARY
IF MAGNET SENSOR IS OK LED will glow or blink IGNITER on burner with black thick wire WILL spark and GO TAK TAK TAK
UN SCREW MAGNET SENSOR AND HOLD A MAGNET TO IT , CIRCUIT IS CONTINUOUS
Remove MAGNET :Circuit should close. RESISTANCE between wires IS 1 OR 2 OHMS.
CIRCUIT BOX CAN BE FAULTY IF GAS SOLENOID IS NOT GETTING CURRENT FROM BATTERY BOX OR IF IGNITER IS NOT CLICK STARTING .
CHECK CIRCUIT BOX
A. OPEN TAP Or SHORT WIRE CONNECTING MAGNET SENSOR
CHECK IF IGNITER on burner with black thick wire WILL spark and GO TAK TAK TAK ..
TEST VOLTAGE TO SOLENOID WITH DC 20V ON MULTIMETER
Red (+) wire and Black (-) provid Power and Yellow is feedback
B. OPEN TAP Or SHORT WIRE CONNECTING MAGNET SENSOR
Check leads from Circuit box .. current should be appx same as the battery box reading .

CHECK GAS SOLENOID CIRCUIT
Remove LPG REGULATOR OPEN TAP Or SHORT WIRE CONNECTING MAGNET SENSOR
Check CONTINUITY ON SOLENOID RED N BLACK wires ..IF OK THEN COIL is working
Resistance between SOLENOID Data and Red / Data and Black are similar ..
THERE IS RESISTANCE IS between RED BLACK wire .

SERVICE GAS SOLENOID The spring tends to go loose over time or rust or humidity
Remove solenoid CAREFULLY Be extra careful CHK IF rubber ring / GASKET is intact .
Clean and STRETCH the spring on the SOLENOID .. Remove any dust dirt etc,
Clean Solenoid with WD40 OR KEROSENE if necessary . GREASE OR MACHINE OIL IT .
REASSEMBLE WITH DUE CARE : CHECK RUBBER RING IS IN GOOD CONDITION AND PLACED CORRECTLY REPLACE IF NEEDED. TIGHTEN SOLENOID SCREWS PROPERLY SO THERE IS AN AIRTIGHT SEAL


TEMPERATURE / THERMAL SENSOR / OVERHEAT CUTOUT ON HOT WATER OUTLET
Thermal cutout is located ON HOT WATER OUTLET PIPE This is a protective sensor to prevent burn outs AND prevents overheating of GEYSER.
RESISTANCE IS 1 OR 2 OHMS /
Continuity chk : Circuit is continuous till the thermal cutout activates and breaks circuit.


CLEANING THE BURNER AND THE HEAT EXCHANGER
BURNER needs to be cleaned if ur getting orange flame instead of blue . CLEAN WITH BRUSH AND ALCOHOL. CLEAN HEAT EXCHANGER WITH DILUTED ACID esp if ur water is hard and high in calcium content and water flow in geyser is drastically reduced.

GAS Geyser Circuit Repair

GAS GEYSER SOUNDS

TiK CLIK CLICK CLICK CLICK TAK PUK

TiK MAGNET CLIK IGNITER TAK SOLENOID OPEN PUK SOLENOID CLOSE

When u Switch ON the Gas Geyser and OPEN TAP , the water flows, magnet censor allows power to the CIRCUIT BOX which provides power to the igniter /starter producing sparks and also to the solenoid valve that releases gas flow to the burners

Normally SOLENOID PLUNGES and recovers on tap OPENING and Closing to
start and stop gas ..If solenoid closes instantly after it starts then there is a problem , need to investigate issue with the plunger or circuit box .

Open the geyser cover and remove the pipes

RELEASE pressure from gas pipe by removing the regulator and loosening the gas pipe NOZZLE on the GAS GEYSER .. Clean/OIL LPG regulator PIN and insides and pipe if necessary ..USE TEFLON TAPE AT GEYSER END AT GAS PIPE.. Clean the inlet mesh on gas pipe and water pipe
When u tighten n reconnect the GAS PIPE please CHECK FOR GAS LEAKAGE WITH SOAPY SOLUTION AT PIPE REMOVE all CONNECTIONS with circuits and switch AND CLEAN PINS OF ALL CONNECTORS WITH WD 40 OR IPA AND RECONNECT

ELECTRICAL CIRCUIT BOX FUNCTION
POWER FLOWS FROM BATTERY BOX TO THE CIRCUIT BOX
VIA WATER CIRCUIT SWITCH / WATER FLOW SENSOR THE ELECTRICAL CIRCUIT BOX

Battery should give slightly below or around 3v DC ie 1.5 x 2
chk the wireS comming out
of Battery BOX With DC Voltage Multimeter DC CURRENT DIAL 20

CHK IF SWITCH IS WORKING IE THE IGNITER
on the burner with black thick wire WILL spark and GO TAK TAK TAK
LED will glow or blink a bit when switch is on

TEMPERATURE / THERMAL SENSOR / OVERHEAT CUTOUT ON HOT WATER OUTLET
Thermal cutout is located ON HOT WATER OUTLET PIPE This is a protective sensor to prevent burn outs AND prevents overheating of GEYSER.
RESISTANCE IS 1 OR 2 OHMS /
Continuity chk : Circuit is continuous till the thermal cutout activates and breaks circuit.

WATER CIRCUIT / WATER FLOW SENSOR MAGNET / MICRO SENSOR ON WATER INLET (OPEN TAP AND CHK) RESISTANCE IS 1 OR 2 OHMS Check if u hear a noise as the magnet moves up the water pipe and completes circuit MAGNET GOES UP AND DOWN THE PIPE
Open TAP: MAGNET Goes up Water inlet pipe and completes water circuit Close TAP : MAGNET Goes down breaking water circuit. Continuity chk : circuit is continuous when water is flowing ie magnet is next to it,

GAS CIRCUIT

SOLENOID VALVE Regulates gas flow to the geyser. its electrical circuit can get damaged or its spring can get jammed over long period of usage due to dust and wear and tear.

Check the DC Voltage of the leads on the battery box .and note it down .. its little under 3V DC. Remove LPG REGULATOR & DISCONNECT THE SOLENOID , then start water or short water circuit pins to start geyser,, Check the BLACK AND RED LEEDS FROM THE CIRCUIT BOX to see if it is providing current . Reading should almost match battery readings.. IF Not then CIRCUIT BOX can be faulty.

Red (+) wire and Black (-) provid Power and Yellow is feedback normally

A . Remove LPG REGULATOR Check CONTINUITY RED N BLACK wires ..IF OK THEN COIL is working short water circuit or open water tap . The clicking will start n bulb will glow

Resistance between Data and Red / Data and Black are similar ..

B . The spring tends to go loose over time or rust due to humidity

IF SOLENOID IS JAMMED Remove solenoid CAREFULLY Be extra careful to see if rubber GASKET is intact . clean the plunger and spring on the SOLENOID with WD40 OR KEROSENE . AND GREASE OR MACHINE OIL IT AND STRETCH THE SPRING .
REASSEMBLE WITH DUE CARE : CHECK RUBBER RING IS IN GOOD CONDITION AND PLACED CORRECTLY REPLACE IF NEEDED

TIGHTEN SOLENOID SCREWS PROPERLY SO THERE IS AN AIRTIGHT SEAL

CLEANING THE BURNER AND THE HEAT EXCHANGER

BURNER needs to be cleaned if ur getting orange flame instead of blue . CLEAN WITH BRUSH AND ALCOHOL

CLEAN HEAT EXCHANGER WITH DILUTED ACID esp if ur water is hard and high in calcium content and water flow in geyser is drastically reduced.

Budget 2019 What matters most

Too many promises and lots of ideas but how and when will budget ideas be implemented and more importantly how will it be funded is a big ?? because funding is depending on private partnership. Secondly this budget is filled with contradictory goals

The govt wants 90000 crores from RBI , is going to borrow more and substantially enough that it wants to borrow sovereign debt in foreign funds .

Too much populism and mismanagement can make India another Pakistan and Argentina is a big big risk when governments depend on external debt to finance deficits in the distant future.

Budget is very Inflationary ! u will pay more excise and government earns more cess of at least 40000 crores vide oil tax on petrol and diesel. Expect everything to face inflation or mehengai tax even if there is no or little change in normal taxes.

Huge push on reviving a property market with more deduction of 150000 but middle class is over saturated with having empty second and third flats that they are unable to sell .  Model tenancy law will be revolutionary if it can meander through the complex and archaic legal system and free up locked empty houses for use thus increasing supply of rentable property, making postponing a property purchase more lucrative.

There is a big push for govt to recapitalize psu banks 70000 crores is huge but will the npa ko evergreen karo, ji mantri ji, chalta hai and corruption culture of babus in banks change ? will politicians meddling in banks and creating massive NPAs stop ? Essar RCom Kingfisher and Jet Air , N Modi are salient examples of crony capitalism.

INDIRA Gandhi had nationalized banks . The PSU banks have become bankrupt thrice received bailouts to keep them afloat  since then, showing the desperation of Rulers /mantris to control the strings of the economy.

Farmers and psu banks are good candidates for permanent bailouts. How do i become a farmer or a psu staffer ??

The markets are crashing as Modi govt policy reminds it of the Indira Era.

Govt has a disinvestment target of 105000 crores and wants to increase public shareholding to 35% but govt holdings will include PSU and LIC holdings (what hypocrisy).

The govt spells out vide policy to small investors – dont invest in PSU cos as it will keep dis-investing while keeping control .. an unmitigated disastrous way of destroying taxpayer and investor wealth. Wonder who will invest when even UPA era disinvestment is in losses . Atal era disinvestment candidates like  ONGC etc will be in losses very soon the way the govts want to milk them.

Govt wants to lay the red carpet for foreign funds but fails to understand that the local small investor is suffering and bleeding .

Govt it seems, want to incentivize the rich to QUIT India and follow Gandhi bapus advise , as it increases taxes on the rich with added cess .

Gold purchases will fall as u pay 2.5 % more,  Excise / Cess on oil will make more problems for Automakers which are already a all time lows .

Tax of 20% on buyback is ridiculous especially when govt reintroduced LTCG .

This will make a huge impact on investor psyche especially because the policy is shifting towards Indira era policy.

Excise / Cess on oil will make more problems for Automakers which are already a all time lows .

 

 

 

 

 

Rbi cuts rates , markets down

Markets  know everything ..  After an initial pop the bank nifty and markets are down from day highs … A new RBI GOV who gave a rate cut at the worst possible time just before summer comes bringing along food inflation, has made pundits uncomfortable, that when data from govt body’s is very suspect , there is a leak of a draft stats report on poor job growth and there is deeper scrutiny at govts way of working and 2 resignations at govt data body and

there is an old song that i remember from such a situation

Budget 2019 Vote on account what matters most.

Budget math doesnt add up  .. it seldom does in India

The fisc deficit is more than 4.5 % of gdp say some pundits especially considering state govt loan mafis and schemes like raytu bandhu and nrega

When lawyers become FM fiscal math jugglery is a given.. like PC had used oil bonds and other tools to hide deficits ,, this govt has used small savings to lend to Air India , PSU ETF and LIC to fund IDBI and its disinvestment  etc which is putting small savers and lic policyholders and pension funds and eventually the taxpayer at a huge risk .

Inflationary.. please all budget .. RBI will have hands full dealing with inflationary impact

BUDGET 2019 Vote on account

1. Within 2 years, Tax assessment will be done electronically no manual intervention.
2. IT returns to be processing in just 24 hours and Refund given.
3. Minimum 14% revenue of GST to states by Central Govt.
4. Tax free Gratuity limit increase to 20 Lakhs from 10 Lakhs
5. No Taxes vide rebate us 87A upto 5 lakh annual income after all deductions.
6. INDL Income upto 6.5 lakhs  after deductions tax free
7. Standard deduction has increase from 40000 to 50000
8. Ceiling Limit of TDS u/s 194A has increased from 10000 to 40000

HAPPY BUILDER LOBBY and multiple home owners

8. No tax on second self-occupied house
9. Recommendations to GST council for reducing GST rates for home buyers
10. Ceiling Limit of TDS u/s 194I has increased from 180000 to 2400000. Ceiling Limit of TDS u/s 194I has increased from 180000 to 240000
11. Capital tax exemption u/s 54 has increased to reinvestment in two residential houses.
12. Benefit u/s 80IB has increased to one more year i.e. 2020
13. Benefit has given to unsold inventory has increased to one year to two years.

 

 

GENERAL Budget provisions

14. State share has increased to 42%
15. PCA restriction has abolished from 3 major banks
16. 2 lakhs seats will increase for the reservation of 10%
17. 60000 crores for manrega
18. 1.7 Lakh crore to ensure food for all
19. 22nd AIIMS has to be opened in Haryana
20. Approval has to be given to PM Kisan Yojana
21. Rs. 6000 per annum has to be given to every farmer having upto 2 hectare land. Applicable from Sept 2018. Amount will be transferred in 3 installments
22. National kamdhenu ayog for cows. Rs. 750 crores for National Gokul Mission
23. 2% interest subvention for farmers pursuing animal husbandry and also create separate department for fisheries.
24. 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.
25.Custom duty has abolished from 36 Capital Goods
26. Bonus will be applicable for workers earning 21000 monthly
27. The scheme, called Pradhan Mantri Shram Yogi Mandhan, will provide assured monthly pension of Rs. 3,000 with contribution of Rs. 100 per month for workers in unorganized sector after 60 years of age.
28. Our government delivered 6 crores free LPG connections under Ujjawala scheme
29. 2% interest relief for MSME GST registered person
30. 26 weeks of Maternity Leaves to empower the women
31. More than 3 Lakhs crores for defence
32. Custom duty has abolished from 36 Capital Goods
33. Single window for approval of India film makers

 

Starting a Composting Earthworm bin

Composting thru earthworms or Vermi composting is a fun activity especially if there are kids involved . You also get the best compost for your plants  It is a great way to dispose off ur organic waste and reduce ur garbage,

Most Fresh kitchen waste or manure needs to decompose or age a bit before the worms will touch it. Heat from a compost pile can boil an egg, it will kill worms and fresh food scraps + composting bacteria = heat 

You are better off starting with  regular composting then feeding the half done  50 to 75 % done compost to your worms so as not to kill them or have a two or 3 bin approach to ensure that u dont kill worms and keep rotating,

Regular composting  (Stage 1):  Prefer to use earthen pots with small holes to let air in.Plastic mesh baskets are good composters too

Wet kitchen waste (Nitrogen) 1 part to be layered with a composting culture + 3 parts dry items  like shredded paper / cardboard / dry leaves / cocopeat.

 Composting Culture : U can take a litre of warm water + a bit of yeast + 1 tea spoon molassis + Sour curd and / or Vermiwash / Cow / horse manure/  aged cow dung slurry . mix it well and add a bit to each layer to speed up composting (Readymade ones are also available.

Compost bed is ideally max 1.5 to 2 feet in height and 3 ft width

. In 20 days this compost changes color to dark brown and cools down significantly. Worms can be introduced to it with sufficient bedding . Depending upon quantity of worms u should have vermicompost in another 20 days appx … Thus a 2 or 3 bin method i think is best way of composting.

Worms generally love dark and damp beds , aged cow , goat or horse manure, semi done compost or half done compost , which wont heat up They need grit or egg shell powder or sand to digest .

Earthenware khambas,  pots , old large wooden drawers , glass fish tank with hole at the bottom , non rust metal crates and fine mesh bag are great home composters . plastic tubs with ventilation holes will also do the job.

Depending upon where u live you can choose the worms so u have a happy bin. Composting worms are different from regular earthworms as they live in the soil surface rather than deep underground.

Worms most suitable in tropical or hot and humid or sea side areas and grow well at a temperature of 24-30 °C (75-86 °F) and can survive 36°C

Eg Tropical  places with temperature of 12 – 38 °C  Most of Asian coastline , Indian coastline , Mumbai etc South east Asia = Phillipines, Indonesia, Malaysia etc South Americas Brazil etc

1. African Nightcrawlers (Eudrilus eugeniae

2. Indian or Malaysian Blueworms (Perionyx excavatus) may be used in the tropics and are available easily during the monsoon

Great worms for cooler places with temperature of 15 – 30 °C

1. Red wiggler or tiger worm (Eisenia fetida or Eisenia andrei)  are most used hardy worms that are favourite of most composters .

2.  European nightcrawlers (Eisenia hortensis)

The nightcrawlers which are also used as fish bait and the blueworms are more active and mobile and love to travel while red tigers are lazier. I dont reco using alabama jumpers and other invasive species

Earthworms are hermaphrodites, it has both male and female reproductive organs. Two worms join clitella, the large lighter-colored bands which contain the worms’ reproductive organs, and which are only prominent during the reproduction process. The two worms exchange sperm. Both worms may secrete cocoons size the of mustard seeds which contain an egg each. These cocoons are lemon-shaped and are pale yellow at first, becoming more brownish as the worms inside become mature. These cocoons are clearly visible to the naked eye.

Worm poop or Vermicast (also called worm castings, worm humus, worm manure, or worm feces) and worm tea or compost tea is the end-product of the breakdown of organic matter by earthworms.

great videos on composting

 

India Budget 2018 – What matters most !

When Lawyers become FMs the budgets are generally neither here nor there and Mr Jaitley is not so different from his predecessor .. Mr Chidambaram .

This budget is poor especially cause Pre elections 2014 , Arun Jaitley demanded Raise I-T slab to Rs 5 lakh! 

Lets start

TAX RATES 2017

Cost Inflation Index 2017

As there are more negatives than positives im just listing out things

  1. Fiscal deficit is at 3.5% of GDP at Rs 5.95 lakh crore in 2017-18 overshoots 3.2% estimated in previous budget.
  2. Projecting fiscal deficit to be 3.3% of GDP in the next fiscal likely to be overshot due to it being election year …
  3. The FM Jaitley has protected his own ie POLITICIANS with inflation linked increase in wage and incentives .
  4. Big pay hike for gaddi holders President gets at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for governors.
  5. No cheer for aam admi as there is no change in slabs or rates while taxpayer pays 1% more in 4% health and education cess which will replace the education cess.
  6. No tax for super rich Crorepati agriculturalists with bentleys and mercs and swimming pools
  7. Vote bank politics : More Free gas connections in rural India . Good or bad ?. Sustainable or burden on salaried class ?  NREGA costs 45000 Cr + and there is corruption there ..India imports gas and oil… what rural India needs is biogass chulla, smokeless chulla and more efficient chulla, like philipino kalans that burns less wood or they will want free gas for life and spare time will go into increasing population !

General Points

  • Tax slab , tax rates remain unchanged .
  • You pay 1% more on everything 4% health and education cess  will replace the 3% education cess.
  • Long term Capital Gains Tax  reintroduced for gains above Rs 100000 ! LTCG of 10% without indexation for part profits earned after 1 Feb 2018 .
  • Short term capital tax at 15%, DDT at 10% above 10 lakhs dividend.
  • STT will continue to be deducted at old rates(Tds).
  • Standard deduction reintroduced only for Salary /Pensioner class of Rs 40000 in lieu of health and medical expenses (so benefit is 40 – 30 existing = Rs 10000 )
  • Standard deduction on Family pension ???
  • Excise on unbranded diesel cut by 2 rupees to 6.33 rupee/ltr, on petrol cut by 2 rupees to 4.48 rupee/ltr
  • Customs Duty on  mobile phones and televisions increased.
  • Social welfare surcharge of 10% on imported goods. Could cause food inflation as our MSP, land and labor laws make india uncompetitive in comparison to our south and south east asian neighbors !
  • All Railway stations with footfall of greater than 25,000 will have escalators.
  • 12,000 wagons, 5160 coaches and 700 locomotives being procured.

Measures for Senior citizens 

  • Exemptions in income of Rs 50,000 from Banks and post office FD  Rds etc
  • No no TDS on Fixed Deposits and Post Office deposits upto Rs 50,000.
  • Under Sec 80D. Senior C MEDICLAIM Exemption now Rs 50,000
  • Under Sec 80DDB Senior C Exemption now Rs 100,000
  •  8% Interest bearing LIC / Pradhan Mantri Vaya Vandana Yojana investment limit doubled to Rs 15 lakh.

Bloombergs analysis