Developer funding: In a bid to grow the affordable housing book, many institutions have resorted to funding the developers engaged in this space. The credit profile of these developers are sub-optimal given the thin margins - price escalation of key inputs such as cement, steel and sand have a major impact on profitability as house prices cannot be increased without impacting demand drastically. Banks and HFCs which have a sizeable exposure to such developers as part of their housing book are expected to witness elevated NPA levels. … [Read more...] about Housing finance companies are in a turmoil due to lack of demand as well as funding freeze
The bond market, though staring at yet another period of lack of fiscal consolidation, may still look at the few positives on offer. That the government increased the fiscal deficit for FY20 to 3.8 percent from the budgeted 3.3 percent of GDP, but still did not announce any market borrowing, should see bond yields fall in the very short term. … [Read more...] about Budget 2020: Trust deficit then, trust deficit now
Financial planners, in fact, recommend focusing on savings for all income brackets, including those drawing modest salaries. Even if tax-payers are not optimising their deductions at present, going by government data, it does not follow that they should not get better with tax-planning in future too. “They should not use the new tax regime as an escape route, as tax-saver investments can help them save for their long-term goals,” says financial planner Mrin Agarwal. “Largely, it is inertia and procrastination that lead to under-utilisation of tax benefits.” If you are a rich salaried individual and yet struggle to use all deductions and exemptions, you need to either improve your awareness level or savings and investment habits. … [Read more...] about Earning big bucks? Don’t switch slabs; optimise existing tax benefits first
To my mind, considering the nature of Indian demographics, staying focussed on saving taxes is a good idea at this point, even though the government may be hoping that you consume more. If you opt for the new option, whereby you stop making those investments that qualify for tax exemptions and tax benefits such as those under Chapter VI-A and Sec 80C – PPF, LIC, ELSS, EPF – and those under Sec 24, i.e., interest on housing loans, and opt for a lower tax bracket, this choice may seem like a good one in the short term, but may be challenging to deal with in the long term. … [Read more...] about Budget 2020’s paradox of choice to taxpayers: to spend or to save?
The survey also said multiple steps have been taken for easing regulations such as exemption from income tax on investments raised by start-ups, 22 regulatory reforms implemented to improve ease of doing business and self-certification regime etc to boost the sector in the country. … [Read more...] about Economic Survey 2019: Almost half of the 16,500 recognised startups have at least one woman director