Editorial

Editorial

Disequilibrium: Prisoner of the voter

Driven by her European sensibilities, UPA chairperson Sonia Gandhi created a welfare economics model which while fiscally flawed cannot be begrudged for it tried an all inclusive approach to target the last man standing. Dole economics was predicated on serving the poor and the underprivileged and the centrifuge driving it was MGNREGA, an employment guarantee scheme for the destitute and downtrodden in distant parts of this great land. A string of pearls stratagem was built around this flagship scheme to alleviate the woes of the poor.

Walking with the Lord to eternity

It was that time of the year again last weekend, when tens of thousands of warkaris (pilgrims) entered Pune on foot moving the faithful one step closer to heaven. Men, women and children from villages around Maharashtra and neighbouring Karnataka and Madhya Pradesh were on their 17-day annual pilgrimage to the holy shrine of Lord Vitthal in the temple town of Pandarpur in western Maharashtra. With their unshakable faith, the simple village pilgrims were accompanying the two holy ‘palkhis’ (palanquin processions) of Sant Tukaram and Sant Dnyaneshwar.

The taxing poem

Tax incidence on a taxpayer in India is determined on the basis of its residential status. Global income of the taxpayer is taxed in India if its status is ascertained as resident as per the Indian Income Tax Act. Prior to the 2015 amendment, a foreign company was said to be resident in India, if the control and management of its affairs is situated wholly in India, which resulted in shift of profits by incorporating shell companies outside India that were largely controlled from India.

Falling Fortunes

Rupee breached an important mark of 69, which, coincidently, was its all-time low, on June 28’s trading session. The previous all-time intraday low for the rupee was 68.8 against US dollar which was hit on November 24, 2016. On YTD basis, Indian rupee has depreciated by around 8 per cent.

Several factors were at play such as rising crude oil prices, global uncertainties, outflows from Indian equity and debt markets, widening in India’s trade deficit on account of jump in oil imports to $0.4 billion in April’18; up 41.45 per cent from April’2017.

What Burari deaths tell us

Burari village is in North Delhi, near Model Town 3.  Eleven members of a family committed suicide by common consent. They are described as a normal, healthy family, who had danced at the engagement of one of their daughters, aged 33, who was employed with a multinational company.

Disequilibrium: Good money after bad

Sometimes it makes sense to feed the pigeons to the cats. At least this is the government’s thinking. From a prime privatisation candidate, embattled and rogue IDBI Bank is now being handed over to LIC. A typical status quoist government balance sheet manoeuvre, move things from the left pocket to the right pocket. Confirming and validating my suspicion that the Modi Govt will not sell anything, instead it will keep this bogey on the front burner so that foreign investors continue to delude themselves that reform is underway. I will explain why I am calling IDBI Bank a rogue institution.

A shared future

Over the years, Walmart India has built a solid foundation in the country, with the mission of enabling small businesses to prosper. Since opening its first Cash and Carry store in 2009, Walmart India has served more than a million members, with a keen focus on kiranas and other small businesses.

View From London: Easy laws have come back to bite Europe

Islamophobia and Muslim bashing have returned to centre stage becoming hot button with the US Supreme Court validating the Trump presidential decree on keeping Muslims from five specific nations out of the US. Dissenting judges may have stated that the decision erodes the foundational principles of religious tolerance, but it is a huge shot in the arm for Donald Trump and his policy of religious intolerance. Feeling vindicated, Trump said:  “The Supreme Court has upheld the clear authority of the president to defend the national security of the United States.

Building a future

The Real Estate (Regulation & Development) Act 2016 has been hailed as a landmark reform measure for the country’s real estate sector in post-independent India. The Act is largely anticipated to change the functional paradigms of the sector in India. However, the efficacies of the sector seem far from leveraged as a large number of real estate transactions continue to be mired in litigation on account of property ownership disputes.

The zeitgeist called GST

The Goods and Services Tax (GST), a revolutionary tax reform rolled out on the July 1, 2017, has effectively replaced the previous Gordian Knot of multiple taxes like VAT, central excise duty, commercial tax, service tax, octroi, etc. It has made India a ‘tax-neutral’ nation — and while it evoked a response best described as mixed from real estate buyers, most of them are in favour of it.

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