Citizens' Issues
Government allocates Rs.9,000 crore for Swachh Bharat Abhiyan
New Delhi : The central government on Monday announced allocation of Rs.9,000 crore for the Swachh Bharat Abhiyan (Clean India Campaign) in the country.
 
"The concept of Swachh Bharat was very close to the heart of Father of the Nation Mahatma Gandhi. Keeping this in mind, the government has decided to allocate Rs.9,000 crore for the Swachh Bharat Abhiyan," said Finance Minister Arun Jaitley, presenting the general budget for 2016-17 in the Lok Sabha.
 
Swachh Bharat Abhiyan is a national campaign of the central government, covering 4,041 statutory cities and towns, to clean the streets, roads and other infrastructure.
 
The campaign was officially launched on October 2, 2014. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Nifty, Sensex not yet out of the woods
A disappointing budget may push the market down again
 
We had mentioned in last week closing report that Nifty, Sensex will struggle to head higher. The week began with a positive close on Monday. However, following three trading session, the indices closed much lower. On Friday, there was mild recovery thanks to strong market rallies in US, Asia and Europe. Over the week, the Sensex lost 555points, while Nifty declined by 181 points. 
 
 
A rally in Asia, Europe and US premarket futures supported a rise in Indian equity markets on Monday. The week began with anticipation about the two crucial Indian budgets to be tabled by the ministers overseeing the finance and railways portfolios. We mentioned that Nifty rally may reverse if it closes below 7,150.
 
On Tuesday, the index closed below the 7150 level and suffered a sharp correction bringing to pause the four days of weak upmove. Investors' confidence was eroded by the continuing conflict between the ruling NDA (National Democratic Alliance) and the opposition, which is seen as having a bearing on some key economic legislations that await parliamentary approval. The government was expected to push through major economic legislations like bankruptcy code and Goods and Services Tax (GST) Bill during the ongoing Budget session.
 
On Wednesday, Indian stock markets suffered a further correction of more than 1.30%-1.50%. The key indices of the Indian equity markets opened on a negative note in sync with their Asian peers and Tuesday's lower close at the US indices. Caution, just a day ahead of the railway budget and F&O (futures and options) expiry, dragged the equity markets lower. Market sentiments were also affected by the softening of crude oil prices, which declined by 1.72% to $31.33, and negative global markets, deterred investors from chasing stock prices higher.
 
On Thursday market was lukewarm to the rail budget. Nifty was pulled lower in the noon session to hit a six-day low. Investors' sentiments were subdued after the railway minister failed to announce big ticket capital expenditure projects in his budget speech, so as to meet the government's fiscal deficit targets. Further, investors took notice of the fact that railway revenue targets might not be met due to a slowdown in economic activity and that the government looked at monetising the internal resources for fund mobilization. On Friday Nifty the market opened 1% higher following rallies in all global markets but gave. It gave up some gains in the morning but after noon shot higher to end the day 0.85% higher.
 
The Economic Survey 2015-16 tabled in Parliament by Finance Minister Arun Jaitley on Friday forecast a GDP growth for 2016-17 in the 7% to 7.75% range. The Economic Survey 2015-16 claims that the country's macro-economy is stable, founded on the government's commitment to fiscal consolidation and low inflation. Major public investment has been undertaken to strengthen the country's infrastructure, claims the survey. The survey has expressed concern over approval of GST Bill being elusive so far and the disinvestment programme falling short of targets. It also states that corporate and bank balance sheets remain stressed affecting the prospects for reviving private investments. The survey cautions that if the world economy remains weak, India's growth will face considerable headwinds. 

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CA Nikhil Vadia simplifies income tax laws
Moneylife Foundation organised an interactive session on deductions allowed under different sub-sections of Section 80 for salaried and self-employed
 
Many salaried people and self-employed professionals end up incorrect taxes as they are unaware of various deductions and exemptions. Some of them put money in tax saving instruments, which exceeds the exemption limit, or make investments which are not eligible. CA Nikhil Vadia, a Voluntary Expert with Moneylife Foundation’s Tax Helpline (www.moneylife.in/taxhelp) , took the audience through an interactive session on deductions allowed under different sub-sections of Section 80 for salaried/employed. With over 19 years of experience in direct and indirect taxation, he simplified the complex provisions of the Income Tax Act. 
 
“Since a deduction is available, I will invest in a particular instrument” is the common wrong approach to investing – and it is wrong. He said that you must make investments on the basis of your needs and not merely because a deduction is available. First, you need to list down your deductions which are in the form of expenses such as tuition fees, home loan repayments etc. After accounting for this, you can work out the investments needed, if required. He said that documentary proof was essential for claiming deductions. Explaining the difference between exemptions and deductions, he went on to explain one of the most important sections for claiming deductions – Section 80C. Section 80C contains many clauses, but 6-7 are the most important. Listing down the different investments that could be made for claiming deductions under this Section, he explained the detailed provisions for each investment head. Understanding income tax is not complete unless you highlight different exceptions to the rules. For instance, coming to Sukanka Samridhi Account for girl child, many people are under the wrong impression that the money will be available when the daughter reaches the age of 21 years. He highlighted that this money is only available after 21 years of investment.
 
He moved on to the other important sections of Section 80. Explaining deduction in respect of contribution to certain pension funds, he explained issues with respect to withdrawal from National Pension System (NPS). He also highlighted the different conditions under which deduction will be available for medical insurance premium under Section 80D.
 
'Tax laws create more criminals than any other law' is the popular saying. Deduction for house rent allowance (HRA) is a fit case for this saying, he said. “A large number of queries on Tax Helpline relate to house property”, he remarked, which makes this deduction extremely critical. Vadia explained the conditions under which this deduction along with deduction on interest is available. He highlighted that deduction also allowed for any expenditure incurred towards stamp duty/registration charges for transfer of house. He explained the conditions under which repayment of loans does not qualify as deduction. 
 
Capital gains arise on sale of capital assets. There are methods to reduce your capital gains liability. Section 54  is one such section.  If capital gains from sale of residential property are invested in purchase or construction of residential house property, the long term capital gains are exempt under certain conditions. Highlighting different aspects and complexity of Section 54 and Sec 54F, he remarked, “There might probably be a case law for each word in Section 54.” The event ended with an lively Q&A session.

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