WHAT WILL COST YOU MORE FROM APRIL 1, 2017 START OF NEW FINANCIAL YEAR IN INDIA

ECONOMICTIMES.COM  Updated: Mar 31, 2017, 03.12 PM IST

A new financial year starts tomorrow. The rules of last year are applicable only till today. There are a host of services for which you'll have to shell out more and some penalties that will be leviable under new norms for the new financial year. Here we pare it down to the finer details to help you keep updated with the changes. 

1. Pay more for health insurance and much more for vehicle insurance 

With the start of the new financial year, you will have to pay much more for health and vehicle insurance. IRDAI, the insurance regulator, has allowed general insurance companies to pay higher commissions to insurance agents and also charge more for third party insurance in case of vehicles. 

Third party insurance, which is mandatory for all vehicles, will cost between 40% to 50% more depending on vehicle type. However, there will be no hike in the third party insurance for private cars with engine capacity below 1000 CC and for two-wheelers with engine capacity less than 75CC. 

2. Cash transaction and several other banking service charges go up: 

While private banks such as Axis, HDFC and ICICI Bank have already introduced new cash transaction charges starting March 1, 2017, the country's largest banker SBI is now following suit effective from April 1st, 2017. For SBI savings account holders, 3 cash deposit transactions would be free per month and transactions beyond the limit will chargeable @ Rs. 50 + service tax per transaction. 

SBI has also increased IMPS charges, where up to Rs. 1000 is free of charge and for transaction amount greater than Rs. 1000 charges will be leviable as follows: A minimum Rs. 1.50 + service tax (ST) per transaction to Rs. 11.50 + ST in case you are using USSD method of transfer and Rs 2 + ST to Rs12 + ST in case you are using IMPS/UPI transfer mode. 

SBI account holders will also be required to maintain a minimum balance in their savings account ranging from Rs. 5,000 - Rs. 1000 depending on their geographical location: i.e. whether account is in a metro or non-metro branch. In case of non-maintenance of required balance you could be charged a maximum of Rs. 100 + service tax. However, PM Jan Dhan Yojana and Basic Savings Bank Small Accounts are exempted from this rule. 

Similarly, in case you have not updated your address correctly in the bank records or have provided wrong address your account could be debited Rs. 100 + service tax in case ATM card or welcome Kit is returned to the bank because of this. 

Others PSUs banks may follow the SBI footsteps in terms of increasing charges. 

3. Penalty for cash payments more than Rs 2 lakh 

The government has banned cash payments of over Rs 2 lakh and you would be penalised if found violating this rule with effect from April 1, 2017. 

Earlier there was no such ban or penalty. 

4.Income tax changes that will cost you money include: 

i)Home loan interest claim on rented property is limited up to Rs. 2 lakh 

If you're planning to buy a property to rent out as an investment or already have a property which is rented, then the start of this financial year may have a bad news for you. Earlier unlimited amount of interest paid on home loan taken for the property could be set off against your other income. However, this set off has now been restricted to Rs. 2 Lakh in case of second house. 

ii)Delay in filing tax return to cost you 

Not filing your income tax return within the deadline - normally July 31 every year - will be also be penalised. 

Delay in filing tax return for 2017-18 will attract penalty of Rs 5,000 if filed by Dec 31, 2018 and Rs 10,000 if filed later. Such fee will be restricted to Rs 1,000 for small taxpayers with income up to Rs 5 lakh.

Billionaire conjures up Sam Walton with $6 billion Indian chain

By Bloomberg | Updated: Mar 31, 2017, 07.56 AM IST

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Small saving schemes interest rates lowered by 0.1%

PTI|

Mar 31, 2017, 12.21 PM IST

NEW DELHI: The government has lowered interest rates on small saving schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi scheme by 0.1 per cent for the April-June quarter, a move that would prompt banks to cut their deposit rates.

For April-June, these have been lowered by 0.1 per cent across the board compared to January-March. However, interest on savings deposits has been retained at 4 per cent annually. 

Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. 

A finance ministry notification said investments in the public provident fund (PPF) scheme will fetch lower annual rate of 7.9 per cent, the same as 5-year National Savings Certificate. The existing rate for these two schemes is 8 per cent. 

Kisan Vikas Patra (KVP) investments will yield 7.6 per cent and mature in 112 months. 

The one for girl child savings, Sukanya Samriddhi Account Scheme, will offer 8.4 per cent annually, from 8.5 per cent at present, while it will be the same at 8.4 per cent for the 5-year Senior Citizens Savings Scheme. The interest rate on the senior citizens scheme is paid quarterly. 

Term deposits of 1-5 years will fetch a lower 6.9-7.7 per cent that will be paid quarterly while the 5-year recurring deposit has been pegged lower at 7.2 per cent. 

"On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis," the ministry said while notifying the rates for the fourth quarter of 2016-17 starting from April 1, 2017. 

While announcing the quarterly setting of interest rates, the ministry had said the rates of small saving schemes would be linked to government bond yields. 

The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government. 

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PERKS OF REACHING 50 OR BEING 60 & HEADING TOWARDS 70 OF AGE.-ON A LIGHTER NOTE ON CLOSING DAY OF FINANCIAL YEAR 2016-17.

This is for all of us 10 years down the line??

1). Kidnappers are not very interested in you.

2). In a hostage situation you are likely to be released first.

3). No one expects you to run anywhere.

4). People call at 9 PM & ask, "Did I wake you?"

5). People no longer view you as a hypochondriac.

6). There is nothing left to learn the hard way.

7). Things you buy now won't wear out.

8). You can eat dinner at 7 pm.

9). You can live without sex, but not your glasses.

10). You get into heated arguments about pension plans.

11). You no longer think of speed limits as a challenge.

12). You quit trying to hold your stomach in, no matter who walks into the room.

13). You sing along with the elevator music.

14). Your eyes won't get much worse.

15). Your investment in health insurance is finally beginning to pay off.

16). Your joints are more accurate meteorologists than the national weather service.

17). Your secrets are safe with your friends, because they can't remember them either.

18). Your supply of brain cells is finally down to manageable size.

19). You can't remember who sent you this list.

20). And you notice these are all in 'Big Print' for your convenience.

And most importantly, never, under any circumstances,

take a sleeping pill & a laxative on the same night!

INDIANS IN AMERICA ARE VICTIMS, NOT TARGETS

March 30, 2017 18:18 IST Rediffmail.com

Three hate crimes have deepened the fear among South Asians that Trump's rhetoric encouraged violence against them, but there is no evidence that Indians have been specifically targeted.

And as long as there is no systematic targeting of Indians or condonation of such attacks by government agencies, there is precious little India can do, says Ambassador T P Sreenivasan, who served as deputy chief of mission at India's embassy in Washington, DC, when the US imposed sanctions against India in May 1998.

In this age of post truth, impressions rather than facts matter and there is a tendency to jump to alarming conclusions, based on signals.

So there is nothing surprising about the three attacks on Indians in the United States being put at the door of President Donald Trump.

After all, he is the one who has poisoned the minds of his people against foreigners, imposed restrictions on arrival of immigrants and restricted the H-1B visas, whose beneficiaries are mostly Indians.

But objective facts show that the Indians were unintended victims rather than targets.

The Kansas shooting that killed Srinivas Kuchibhotla and injured his friend Alok Madasani occurred in a bar, which they had adopted as a hangout.

A local man, who was known for his drinking habits and petty crimes, Adam Purington, was telling them -- half in jest -- that they did not belong to the US.

This irritated not only the Indians, but also other customers and they threw him out of the bar.

An enraged Purington returned after a while and shot at not only the Indians, but also a young white man, who tried to apprehend the culprit.

Purington was charged with premeditated first degree murder and attempted murder.

The authorities considered the attack a possible hate crime and it reverberated in the US and India, raising fresh alarm about a climate of hostility towards foreigners in the US, where President Trump had made clamping down on immigration a central plank of his 'America First' agenda.

The White House strongly rejected the notion that there might be any connection between the shooting and the new administration's sharp language about immigration and the US president expressed concern.

In his address to the United States Congress, President Trump said the 'shooting in Kansas City... remind us that while we may be a nation divided on policies, we are a country that stands united in condemning hate and evil in all its forms.'

• 'Do we belong here?'

'People are devastated,' said Somil Chandwani, a friend of the two victims who lives in Overland Park, Kansas. 'I wouldn't say they are angry. They have a sense of insecurity at the moment. People are trying to find answers.'

The charge sheet gave no details about the motive of the shooting.

The word, India, did not figure in the conversation between the two Indians and their attacker, but there was a mention of illegal migrants and the Indians said they were legal residents who had studied in the US.

It was the fact that the attacker was thrown out by the other customers that enraged Purington and not necessarily any words or action of the Indians.

The silver lining on the incident was that the young white man, who tried to rescue the Indians and took a bullet was duly rewarded by the local residents.

Kansas declared March 16 as an 'Indian American Appreciation Day'. The incident was clearly isolated and did not reflect a sentiment in the locality.

There were also reports that the attacker said later that he had shot two Iranians.

Within a few days, two more attacks took place.

One in Lancaster, South Carolina, where Harnish Patel, who had lived in the US with his family for 14 years, was shot and killed outside his home.

A Sikh man was also shot in Kent, Washington, while he was in his drive way, working on his vehicle. The victim, Deep Rai, was also allegedly told to go back to his country at one time.

These three attacks have naturally deepened the fear among South Asian and immigrant communities that President Trump's aggressive rhetoric and executive orders encouraged violence against them. But there is no evidence that Indians have been specifically targeted.

• 'When they came for the Muslims, where were you?' 

Average Americans are fairly ignorant of geography and the differences between various nationalities.

Similar incidents took place after the 9/11 terrorist attacks and the victims were Sikhs, who apparently were mistaken for Muslims. The headgear was enough to make them look like Osama bin Laden!

They were unable to distinguish between Iraqis and Kuwaitis at the time of the Gulf war. An American was heard boasting to his neighbours that his son had gone to finish off the Arabs. He was not aware that the US was fighting to liberate one nation of Arabs from another nation.

Undoubtedly, immigrants have not been particularly popular in the US, except among the city dwellers, who knew their worth as doctors, teachers, intellectuals and more recently, IT experts.

Outsourcing was seen as an evil by the unemployed in the villages, prompting even President Obama to say that the US should have business in Buffalo, not in Bengaluru.

But he did not do anything to halt outsourcing, which was a win-win situation for both the US and India. Even President Trump will not be able to do without immigrants, particularly the Indians in the IT industry.

Many people have been asking what India can do to prevent tragic incidents involving Indians.

It can do precious little, except to condemn the incidents, insist on proper investigation and payment of adequate compensation. If the victims are US citizens, our leverage is even less.

As long as there is no systematic targeting of Indians or condonation of such incidents by government agencies, there is no reason even to protest.

The case was different in 1998, when the US government itself denied visas to Indians and repatriated scientists, in protest against our nuclear tests.

The Khobragade incident was also deplorable to the extent that an Indian diplomat was arrested and humiliated with US state department connivance.

Our concern about the possible implications of the present government policies shall remain unexpressed as this cannot be proved either way.

There are reports that fewer Indians are travelling to the US, even fewer are going for education there and alternate destinations are being explored.

Hopefully, normalcy will be restored, once the current period of uncertainty in US policies is over.

The American Dream will linger beyond the present dispensation for civilisational reasons.

T P Sreenivasan, (IFS 1967) former Ambassador of India and Governor for India of the IAEA, is Chairman, Academic Council and Director, NSS Academy of Civil Services, Director General, Kerala International Centre.

India opposes Silk Road because Russian backing for CPEC has Delhi embarrassed: China

By PTI | Updated: Mar 30, 2017, 01.03 PM IST

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China sets rules on beards, veils to combat extremism in Xinjiang

By Reuters | Updated: Mar 30, 2017, 10.42 AM IST

BEIJING: China will step up a campaign against religious extremism in the far western region of Xinjiang on Saturday by implementing a range of measures, including prohibiting "abnormal" beards, the wearing of veils in public places and the refusal to watch state television. 

Hundreds of people have died in recent years in Xinjiang, home to the Muslim Uighur people, in unrest blamed by Beijing on Islamist militants and separatists, though rights groups say the violence is more a reaction to repressive Chinese policies. 

The government strongly denies committing any abuses in Xinjiang and insists the legal, cultural and religious rights of Uighurs, a Turkic ethnic group, are fully protected. 

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Oppo sacks Chinese employee who insulted Indian flag

NEW DELHI: Chinese handset maker Oppo said it has sacked an employee who “discarded the Indian flag from the table” at its Noida Sector 63 plant. 

The company said in a statement on Wednesday, “Based on the recent incident and after thorough investigation with the concerned authorities, we have found that a worker discarded the Indian flag from the table during regular external material check.” 

Referring to the incident which allegedly took place on Monday night, the company further said, “We have zero tolerance for such matters and have taken strict action in terminating the individual and continue working very closely with the authorities on the matter.” 

A case has been registered and investigation is going on, Noida’s superintendent of police Dinesh Yadav told ET. “A Chinese person is named in the case… We are collecting evidence and getting the CCTV footage of the place,” he said. 

Meanwhile, the Chinese government on Wednesday said it hopes India will “properly” resolve the issue at Oppo and safeguard its “legitimate rights” as per law. “Company officials are in touch with the local police,” Chinese foreign ministry’s spokesperson .

“The Chinese government always asks its Chinese enterprises and staff overseas to abide by local law, regulations and respect local practices and customs,” he said. Oppo said it regretted the incident, which, it said, in no way represents the company’s position.

“Oppo has deep respect for India and its culture, and it continues to obey the applicable laws and regulations in India and will not tolerate any misconduct,” it said in the statement. 

The company said the incident did not impact manufacturing at the plant, where it makes smartphones for local consumption. 

The incident triggered protests in front of company’s Noida office, while some people took to social media to slam Oppo for its alleged anti-India actions. Some demanded strict action by the government against the company. 

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Lok Sabha assent in hand, Modi sarkar races ahead to roll out GST

By ET Bureau | Mar 30, 2017, 06.29 AM IST

India took a big leap forward in rolling out the goods and services tax (GST), seen as the biggest tax reform since Independence, with the Lower House of Parliament giving its nod to four supplementary Bills. 

Their passage will allow the government to prepare for the July 1 launch of the single levy that will replace multiple central and state taxes and make the country a seamless national market, boosting India’s growth rate. 
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Sexual harassment: Should you report or quit?

Source Rediffmail.com

March 29, 2017 13:26 IST

Neha Bagaria, founder and CEO, JobsForHer, tells you how to handle the situation.

World over, we see more women breaking glass ceilings and achieving success in their own way, in a once male-dominated landscape.

While we laud their efforts, the situation can come with a sting in its tail, in the form of sexual harassment.

When women climb the corporate ladder, they come up against, many times, patriarchal mindsets, from those who still believe women are not equipped to lead in a professional domain.

These unconscious biases lead to hostility from their male counterparts, in some form or the other, the most common being sexual harassment.

As employers, we need to make sure the workplace is a safe place, for everyone.

This is our charge: To keep our workplaces thriving and happy, filled with thriving and happy people.

Sexual harassment at the workplace

After the increasing number of sexual harassment cases in the corporate domain, the Indian government introduced the SH Act (Sexual Harassment) of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The bill proposes relevant measures to be put into effect to: Prevent, inquire into and act against acts of sexual harassment at the workplace.

The SH Act lays down what constitutes sexual harassment:

Any unsolicited acts or behaviour comprising physical contact/advances, sexual gestures or remarks, and/or other physical, verbal or non-verbal conduct of a sexual nature constitute sexual harassment.

The Act lays down that it is mandatory for all employers in India to establish an Internal Complaints Committee (ICC), that includes employees nominated as members by the employer, along with one member from an NGO or similar non-profit group, familiar with the issue of sexual harassment.

According to a survey, conducted by global consulting firm Ernst & Young, during the period of January 2015 to April 2015, most organisations had set up ICCs within the workplace.

Up to 69 per cent respondents had constituted ICCs within their companies during that time, discovered the survey.

It also found that 18 per cent companies had not established ICCs and the remaining 13 per cent were in the process of setting them up.

Going by the survey's findings, it is evident that sexual harassment at the workplace is still not considered a serious issue in the Indian corporate sector.

Although there have been some developments on that front, it has become a matter of extreme importance for women to keep themselves updated on all information regarding this issue.

Be assertive and call out any inappropriate behaviour

It is always advisable for women to speak out any time they witness or are going through this issue.

By calling out inappropriate behaviour, the employee will also be able to discourage the guilty party from committing such offences in future.

Know when to be polite and when to take a strong stand

Sexual harassment can take many forms, ranging from mild teasing to full-fledged misconduct of a sexual nature.

To deal with such instances, women employees should recognise the kind of behaviour that makes them, either slightly uncomfortable, or leads them to feel scared or anxious and take action accordingly.

While the former can be dealt with through a polite but firm warning, the latter should involve strict action from the company's committee against the perpetrator.

Know the protocol on reporting an incident

It is important, not just for women, but every employee within an organisation, to know the right protocol to follow, in case they or someone they know, is facing harassment or hostility at work.

Every employee should be aware of the rules or guidelines regarding sexual misconduct, within that organisation, and approach the ICC or the HR department to report such incidents.

If the situation persists or reoccurs...

In case an employee continues to face harassment, even after the offender has been warned, the ICC or HR committee should terminate the offender's association with the company, and provide counselling to the former.

In case the organisation does not have a dedicated sexual harassment cell, the employee could formally register an FIR with the nearest police station against the harasser.

Another factor to be considered here is the management's final decision on a sexual harassment complaint, made by an employee of a particular organisation.

If the managing committee's decision is not favorable, the victim can formally lodge a case against the offender at a criminal court.

While most female employees do opt to quit working in an organisation, as a last resort, they should ensure that the cost of therapy, required, due to harm caused by harassment be borne by the company, before making their final decision.

Sexual harassment is an extremely serious issue that can severely harm the overall well-being of an employee, if not managed effectively.

The need of the hour is to create comprehensive policies, both within the workplace and under the law, so we can provide a healthy workplace culture to all employees.

Neha Bagaria is founder of JobsForHer, an online portal that helps women get back at their careers after a break.

Neha Bagaria

Government faces embarrassment in Rajya Sabha; 5 opposition amendments to Finance Bill adopted

By PTI | Updated: Mar 29, 2017, 08.04 PM IST

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India in talks with Russia for multi-million dollar deal to upgrade 1000 T-90 tanks

By N. C. Bipindra 

India has begun talks with Russia for a multi-million dollar deal to upgrade the army’s nearly 1,000 T-90 tanks, according to people familiar with the matter who asked not to be identified because the talks are private. 

Under the deal, Russian firms will transfer the tank technology to Indian partners in a bid to shake off the armed forces’ over-dependence on Russian supplies, they said. 

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Race for GST: Lok Sabha passes key tax reform bills

By Reuters | Updated: Mar 29, 2017, 09.30 PM IST

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By Navneet Singhal

ET=GBS 2017: MODI AND TRUMP BOTH PRO-GROWTH,PRO-BUSINESS LEADERS SAY EXPERTS

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Land leasing, renting to attract GST from July 1 2017

By PTI | Mar 28, 2017, 04.23 PM IST

Come July 1 and leasing of land, renting of buildings as well as EMIs paid for purchase of under-construction houses will start attracting the Goods and Services Tax. 

Sale of land and buildings will be however out of the purview of GST, the new indirect tax regime. Such transactions will continue to attract the stamp duty, according to the legislations Finance Minister Arun Jaitley introduced in the Lok Sabha yesterday for approval. 

Electricity has also been kept out of the GST ambit. 

GST, which the government intends to roll out from July 1, 2017, will subsume central excise, service tax and state VAT among other indirect levies on manufactured goods and services. 

The Central GST (CGST) bill -- one of the four legislations introduced, states that any lease, tenancy, easement, licence to occupy land will be considered as supply of service. 

Also, any lease or letting out of the building, including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services as per the CGST bill. 

The GST bills provide that sale of land and, sale of building except the sale of under construction building will nether be treated as a supply of goods not a supply of services. Thus GST can't be levied in those supplies. 

'Goods' in earlier drafts of the bills were defined as every kind of movable property other than money and securities but includes actionable claim. 'Services' were defined as anything other than goods. It was thought that GST may be levied on supply of immovable property such as Land or building apart from levy of stamp duty. 

But the bills presented in Parliament have now clarified this position. 

Tax experts said that currently service tax is levied on rents paid for commercial and industrial units, although it is exempt for residential units. 

Deloitte Haskins Sells LLP Senior Director M S Mani said: "While service tax is applicable at present on sale of under construction apartments, it is levied on a lower value as abatement allowed. The abatement is ostensibly to take care of the value of the land involved in the construction of apartments". 

He said the GST Rules, which will come up for discussion in the Council meeting on March 31, would help ascertain whether a lower rate of GST is proposed for such transactions or whether a similar abatement procedure would be prescribed. 

"This would also be dependent on the rate fixation committee which is expected to finalise its recommendations in April," Mani said. 

Experts said service tax is currently levied on payments made for under-construction residential houses after providing abatement, which brings down the effective rate from 18 per cent to around 6 per cent. 

"The government is trying its best to make GST litigation free. The bills very clearly specify that GST would be charged on any lease of land or letting out of the building or construction of a complex, building, civil structure or a part thereof, where whole or any part of consideration has been received before issuance of completion certificate or its first occupation," Nangia & Co Director Rajat Mohan said. 

Experts said the GST subsumes central levies like excise and service tax and local levies like VAT, entertainment tax, luxury tax. However, it does not subsume Electricity Duty. 

Since the GST Constitution Amendment Act does not provide for subsuming 'electricity duty' under GST, it will continue to be levied by the respective state governments. 

Certain states like Delhi exempt residential properties from electricity duty but levy it on commercial and industrial units. 

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