Are we being taught the art of disaster management?

August 5th 2010: Examination forms were available for November 2010 attempt. This was when PCC students who were completing their articles in April 2011 came to know that they were eligible for writing their exams in November 2010 instead of May 2011. A notification in this regard was issued a couple of days later. Four months is considered ideal for preparation for Final examinations.

This scheme of events left the candidates (due to complete articles in Apr 2011) with just 3 months of time to prepare, if at all they chose to write the exams in November. Not just the time factor, most of the students would not have had their mental framework ready to start the preparation. Many had not even enrolled for their tuitions. In short you get a first hand experience of managing unexpected events. (May be helpful to manage a disater in future)

Sep 30th 2009 : A notification making all questions mandatory for November 2009 examination was issued. We all have heard of One Month notice that an employee gives to his/her company when he resigns. Most of us would appreciate the fact that being a professional course, a student is not expected to prepare selective topics. Some may still go ahead and argue that, the institute thought of having a check on quality.

All that apart, there is no denying that it did have an effect on students who were into their last leg of preparation. One month is quite short notice for students to adjust their preparation. This is a period when most students would be into their last leg of revision. To make last minute changes was asking a little too much from the students. Another experience in managing unexpected events.

Highlights of 2010 budget

Ø · 30% tax on income above Rs 8 lacs
Ø · 20% tax on income between Rs 5 lacs to 8 lacs
Ø · 10% tax on income between Rs 1.6 lacs to 5 lacs
Ø · Uproar in Parliament over hike in fuel prices
Ø · Excise on all non smoking tobacco raised
Ø · 7.5% duty on petrol and diesel restored
Ø · 5% duty on crude petroleum restored
Ø · Fuel prices likely to go up
Ø · Excise duty on petrol and diesel raised to Rs 1/litre
Ø · Cigarettes to be costlier
Ø · Excise on large cars, SUVs, MUV raised to 22%
Ø · Partial rollback in Excise Duty from 10% to 8%
Ø · Excise on large cars, SUVs, MUV raised to 22%
Ø · Presumptive tax limit raised to Rs 60 lacs
Ø · Investment linked deduction benefit for 2 Star hotels
Ø · Deduction of Rs 20000 on investment in infra bonds
Ø · Weighted deduction on R&D raised to 200% from 150%
Ø · No tax on Income up to Rs 1.6 lacs
Ø · Current surcharge on companies reduced to 7.5%
Ø · Minimum Alternate tax hiked to 18%
Ø · IT tax slabs broadened
Ø · IT dept to notify Saral 2 form for individual tax payers
Ø · IT exemption limit enhanced, surcharge withdrawn
Ø · FY11 net market borrowings pegged at Rs 3.45 lac Crs
Ø · 20 Kms of highway to be constructed everyday
Ø · FY10 budget deficit seen at 6.9% of GDP
Ø · FY12 fiscal deficit target at 4.8%
Ø · FY13 fiscal deficit target at 4.1%
Ø · More than 50% increase in funds for minority welfare
Ø · Fiscal deficit target of 5.5% in FY11
Ø · 15% rise in planned expenditure
Ø · Govt to set up National Mission for delivery of justice
Ø · Gross tax receipts Rs 7.46 lac Crs
Ø · Defence capex raised to Rs 60000 Crs
Ø · Allocation to defense raised to Rs 1.47 lac Crs
Ø · Pvt sector to meet food grain storage deficit
Ø · Rs 100 Cr woman farmer fund scheme
Ø · Rs 1900 Crs allocated for UID project
Ø · Skill development programme for textile sector
Ø · Home loans up to Rs 20 lacs to get interest subvention of 1% up to March 11
Ø · Government to contribute Rs 1000 per month for pension security
Ø · Rs 5400 Crs allocated for urban development
Ø · Rs 66100 Crs allocated for rural development
Ø · Rs 2400 Crs allocated for MSMEs
Ø · Social Security Fund to have corpus of over Rs 1000 Crs
Ø · National Social Security fund for unorganized workers
Ø · Interest subvention for housing loans up to 1 lacs
Ø · Rs 10,000 Crs allocated for Indira Awas Yojna
Ø · Rs 1200 Crs assistance for drought in Bundelkhand
Ø · Rs 48000 Crs for Bharat Nirman
Ø · NREGA scheme allocation raised to Rs 41000 Crs
Ø · Allocation to health Rs 22,300 Crs
Ø · 25% of plan allocation for rural infrastructure
Ø · Social sector spending seen at Rs 1.38 lakh Crs
Ø · Allocation for school education up from Rs 26800 Crs to Rs 31036 Crs
Ø · Allocation to power sector at Rs 5130 Crs
Ø · Rs 200 Crs for Tamilnadu textile sector
Ø · One time grant for Tirupur exports
Ø · Draft food security Bill ready
Ø · Clean energy fund to be established
Ø · Allotment for renewable energy hiked by 61%
Ø · Coal regulatory authority to be set up
Ø · Road development hiked to Rs 19894 Crs
Ø · Rs 1.73 lakh Crs, which is 46% of total plan outlay, reserved for infrastructure development
Ø · 2% loan subsidy to farmers
Ø · Farm credit targets to be increased to Rs 3.75 lakh Crs
Ø · Farm loan payments to be extended for six months
Ø · Interest subvention of 2% to be extended for handicrafts and SMEs
Ø · Rs 300 Crs for agricultural impetus
Ø · Additional Rs 1,65,000 Crs for bank re-capitalisation
Ø · Interest subvention for exports to extended for one year
Ø · RBI may give banking licenses to Pvt cos and NBFCs
Ø · FDI policy to be made more user-friendly
Ø · To discuss Kirit Parikh report in due course
Ø · Fertiliser subsidy to be reduced
Ø · Divestment target of Rs 25,000 Crs
Ø · GST to be implemented from 2011
Ø · Hope to implement Direct Tax Code from April 2011
Ø · Calibrated exit strategy for fiscal stimulus
Ø · Need to review stimulus, go back to fiscal prudence
Ø · Significant private investment inflow expected to boost GDP
Ø · Economy can achieve GDP growth of 10%
Ø · India faces a challenge of reverting to double digit growth
Ø · FY 2009-10 was a challenging year
Ø · Need to improve food security and healthcare systems

Advantages of LLP (Limited Liability Partnership)

Limited Liability Partnership will be assessed as a Firm w.e.f Assessment year 2010-11. The definition of Firm has been amended as under,
“Firm shall have the meaning assigned to it in the Indian Partnership Act, 1932 and shall include a Limited Liability Partnership as defined in the Limited Liability Partnership Act 2008.”

LLP enjoy the following advantages on taxation matters:

1. Distributions of profits by the LLP are exempt from tax in the hands of the partners
2. LLP are not liable for payment of Dividend Distribution Tax on profits distributed to the partners. The existing rate of DDT is 16.995% on dividends distributed by companies.
3. LLP are kept out of the purview of Minimum Alternate Tax.
4. The provisions of deemed dividend (defined u/s 2(22)(e)) read with section 56(2) are not applicable to LLP. Any advance made by a Company to specified members is considered as deemed dividend to the extent of distributable profits thereby rendering the amount advanced as taxable income.

LLP also enjoys the following benefits:
1. Flexibility of Capital: There are no restrictions for withdrawal of Capital unlike in case of companies.
2. The cost of registration, compliance of law, audit, management and other paper work is relatively less in case of LLP when compared to such expenses in Company form of organization.