Third, remember, India is the largest repository of gold in private hands – some 25,000 tonnes (worth Rs 7,500 lakh crore rupees – whew!!!). Much of it is with small income people, farmers, traders and the like. They like to pawn gold when they need money and redeem their mortgages when they have cash. Today, gold loans account for around Rs 1.6 lakh crore (see table). And even this is only 3.5 per cent of the total gold stocks in India. And this is only 44 percent of the gold loan market, as the rest goes to the unorganised money lender market and small pawn shops. The greater the share of the organised market, the more will India realise that gold is a productive asset, akin to the best of mortgages that an individual can keep with himself. It provides people with an unofficial credit rating, and the ultimate hedge against uncertain times. Remember, when the floods ravaged Kerala recently, most people realised that the only valuable … [Read more...] about Gold needs some very urgently-needed policy changes
Why is duty of care important
“Assessing the root cause of stock price correction is important before considering it as an attractive investment. Some of the sectors, like the auto sector, is passing through disruption of upgradation in emission norms for internal combustion engines and adoption of electric vehicles,” says Bothra of Ashika Stock Broking. … [Read more...] about These 11 small & midcaps fell 30-70% from their 52-week high: time to buy?
China’s pledge shows a likely sharp jump in its imports from the US in times to come. But that’s easier said than done. The big question is, how does China go about the execution part, which may substantially reset its trade ties with other key partners. Second, its agreement and enforcement on prickly issues remains a key factor to watch. … [Read more...] about US, China trade smileys – Equity risk premium now takes a back seat
It’s natural to want to show that VP how stupid his ideas are, and that yours are better. But that’s exactly the opposite of what you should do. Your best course of action is to tell the egomaniac he’s right or find things you like about his input. The fact is that he’s desperate for that kind of approval and almost never gets it. … [Read more...] about The Scientifically Proven Way To Deal With Difficult Coworkers
If you are receiving house rent allowance (HRA) from your employer and paying rent, you can claim exemption for the same. If the rent paid is more than Rs 50,000 a month, don’t forget to deduct taxes at 5 per cent on the rent paid during the year. Such deduction should be made from the rent paid in the last month of the financial year or the last month of the tenancy (if the property is vacated during the year). In case the landlord is a non-resident, you will need to calculate the withholding at normal rates (30 per cent plus applicable surcharge [if any] and education cess). Failure to do so will attract penal consequences. In case you are not getting HRA and paying rent, you can still claim deduction under Section 80GG, up to a maximum of Rs 60,000. … [Read more...] about Know your tax exemptions to invest wisely