Finance & Economy in India

Indian finance is a key driver to Indian economic growth. In terms of GDP, Indian economy is the fourth largest in the world. The economic policies of India post independence have helped us in financial and economic growth. Free trade on current account was allowed post 1991. The economic structure in India is very interesting. The agriculture and allied sectors employ 60% of Indian workforce but it accounts for only 17% of the nation’s GDP. The service sector accounts for 54% while the industrial sector contributes towards 29% of the GDP.

The Finance of India is a growing one. The Indian economy has registered a growth rate of 7.4% in the fiscal year 2009–10, with a year-on-year growth of 8.65 in its last quarter. This has exceeded the government forecast of 7.2% increase in GDP India. This year’s growth is driven by robust performance of the manufacturing sector that witnessed a 16.3% growth from last year.

The sectors that showed significant growth include mining and quarrying (10.6%), electricity, gas and water supply (6.5%), manufacturing (10.8%), financing, insurance, real estate and business services (9.7%). The gross national income and the per capita income both have shown remarkable increase compared to last fiscal year. The gross national income is expected to rise by 7.3% in 2009–10 as compared to 6.8% in 2008–09. Per capita income growth rate is expected to be 5.6% in 2009–10.

The Indian capital market faces many challenges for the efficient allocation and mobilization of capital in the economy. The capital market, money market and stock exchange are all regulated by the Securities and Exchange Board of India (SEBI). The stock market in India has two major exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This is regulated by SEBI. Number of companies listed in stock market in India is second to that in the US. As per Bloomberg data, India’s stock market cap was 2.8% of the world’s stock market cap. In 2009, there were 21 IPOs that raised US$ 4.18 billion, in comparison to 36 IPOs with US$ 3.62 billion.

For the current year, it was reported that the Foreign Institutional Investors (FIIs) registered with SEBI as on March 2010 was 1710. According to the Association of Mutual Funds in India (AMFI), the average assets under management under mutual fund industry stood at US$ 170.46 billion for May 2010 as compared to US$ 135.58 billion in May 2009. The Reserve Bank of India’s Weekly Statistical Supplement reported the total India's foreign exchange reserves to be US$ 271 billion.

The Thomson Reuters publication has given top ranking to India in the global project finance (PF) market in 2009. The domestic Indian market has been the main market for project finance that raised US$ 30 billion which accounted for 21.5% of the global PF market.

The economic policies of India have been such that money and its importance have been recognized. The money market, i.e. the financial market for short-term asset borrowing and lending has provided liquidity funding for the global financial system.

Overall, the Indian economic and financial growth is expected to rise, and GDP is expected to reach a double-digit figure by 2011.

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Ways to Simplify Tax

With only 24 hours at hand in a day, it is not possible for a person to remember all his obligations towards his professional life as well as personal life. In your professional life, you have to manage your work, your finances, your office, your bills as well as your taxes. You try to manage all your work systematically. You plan and schedule your time to do all your financial and tax related work. But many times, due to holidays, social activities, health or other reasons, your work gets interrupted and you cannot work as per your planned schedule.
The thing that gets most affected by such interruptions is your tax related work. Be it tax planning, assessing your tax, or filing your returns, it is very important that you manage it all in sufficient time and with accuracy. Some of the ways in which you can simplify your tax and tax processes are as follows:
Plan Your Work 

Tax  India

Even though for some people assessing the tax and filing of return may be a day’s work, yet it is important that you plan your tax related work beforehand. Do not wait for the last date of filing the return. Ensure that you work on your tax issues before the year-end. Ensure that you have all your documents. Make your calculations in advance. Planning of your work will simplify your tax assessment.
Note the Due Dates on a Calendar
On a calendar, mark all the due dates related to your tax processes. Suppose you are an individual, then you can mark dates for filing of return, or date for an appeal, or date for furnishing documents etc. If you are a firm or a company, you must mark the dates of your quarterly payment of taxes, dates for audit, dates of return filing etc. When you have your dates in writing, you will not forget that work and thus it will simplify your tax work.

Tax Planning For The Year

Tax is a word or must say a phenomenon which at one time or other has given shock wave to all.

However, a proper planning of the same can land you in a rich soup of esteemed self financial satisfaction.

As we all know, we have to give tax to government on various things, one such being income tax. In the coming columns we will let you know what are they and how to plan the tax for a concurrent year and be clean. To take a sneak peak, Read on!

What is meant by tax?

The word tax has been derived from the Latin word, taxo which means to impose a financial charge in the physical form of money or other levy upon a tax payer by a state or the functional equivalent of a state such that the failure to pay the same is punishable as per the prescribed law.

Tax in India

What kinds of taxes are there in India?

• Income Tax  
• Sales Tax
• VAT

Investment options in India

 There are several investment options to save tax in India that leads to a systematic investment and growth of money. There are several ways to invest your money in a proper way that gives you high returns on the maturity of the terms.

Investment Options in India

Some of the most common investment fields are:

1- Real  estate.

2- Stock exchange.

3-Mutual funds.

4- Insurance.

5- Fixed deposits.