The decision not to cut the policy rate was expectedly guided by the current high inflationary environment and still-inadequate monetary transmission. The focus clearly is inflation (vis-à-vis growth), what with the December headline inflation shooting past 6 percent — the upper end of the target band of the Reserve Bank of India (RBI). RBI’s own estimates suggest that inflation, driven mainly by food, will stay above the comfort threshold at least up to the first half of fiscal 2021. … [Read more...] about RBI policy review | The next rate cut is only a matter of timing
Rate cut on gst
The Bill provides for two separate timings for taxpayers to voice their election for the new lower tax regime. In case of the salaried class, the Bill proposes that the election should be made at the time of filing the tax return. It will be interesting to see how the timing of such election marries with the employer’s obligation to deduct TDS. Employers are likely to deduct TDS at the higher of the tax rates on a more conservative note, in which case individuals will need to claim refund of excess taxes withheld. Salaried individuals can make a new election each year where they may choose between personal tax cuts versus personal tax deductions and exemptions. … [Read more...] about Budget 2020|Personal tax rate cuts – to elect or not to elect?
Consistent with the low inflation, the report keeps the weighted average bank lending rate unchanged at 10.4 percent till the first half of 2019-20. That’s a clear message that there is unlikely to be any change in the RBI’s policy rate till at least the first half of 2019-20. But it also suggests there is unlikely to be a rate cut. … [Read more...] about Quick Take | Decoding FSR fine print: RBI unlikely to change policy rate till first half of FY20
This compensation was to come out of a pool that is to be created by levy of cess on certain sin and luxury goods over and above the GST tax rate. The shortfall is calculated assuming a 14 percent annual growth in GST collections by states over the base year of 2015-16. … [Read more...] about Central govt releases Rs 19,950 crore GST compensation to states
"In spite of this position of law and Telangana High Court's order, the central government and several state governments, on the recommendations of the GST Council, amended their respective CGST/SGST Acts to charge interest on delayed GST payment on the basis of net tax liability," the CBIC said. … [Read more...] about Interest on delayed GST payment will now be calculated on net tax liability