ECONOMY AFFAIRS AUGUST 2009

ECONOMY AFFAIRS AUGUST 2009

• Following are the highlights of the new Foreign Trade Policy that was unveiled by Commerce Minister Anand Sharma
  • Duty entitlement passbook scheme extended till December 2010
  • Extension of sops for export-oriented units till March 2011
  • Export target of $200 billion set for 2010-11
  • Growth target of 15 per cent for next two years, 25 per cent thereafter
  • Inter-ministerial group to address issues raised by exporters
  • Obligation under export promotion capital goods scheme relaxed
  • Permission for tax refund scheme for jewellery sector
  • No fee on grant of incentives to cut transaction costs
  • Steps to help exporters reduce transaction costs
  • Plan for diamond bourses in the country
  • Single-window scheme for farm exports
  • Re-export of unused leather allowed subject to 50 per cent duty
  • Minimum value addition for tea reduced to 50 per cent from 100 per cent
  • Export units allowed to sell 90 per cent of goods in domestic market
  • Provision for state-run banks to provide dollar credits
  • Twenty-six new markets added to focus market scheme
  • Sops under focus market scheme hiked from 2.5 per cent to 3 per cent
  • Number of duty-free samples for exporters raised to 50 pieces from 15
  • New directorate of trade remedy measures to be set up
  • Zero duty under technology upgrade scheme
• Reader’s Digest Association Inc., owned by the New York private equity firm Ripplewood Holdings decided to file for bankruptcy protection.
• New Income Tax Slab under New Direct Tax Code 2009
   

  Income Tax Slab Under New Direct Tax Code 2009 applicable for A.Y. 2011-12
  Individual Male
  Up to Rs. 1,60,000	NIL
  Rs.1,60,001 – Rs.10,00,000	10%
  Rs.10,00,001 -Rs. 25,00,000	20%
  Above Rs. 25,00,001	30%
  Individual Female
  Up to Rs. 1,90,000	NIL
  Rs.1,90,001 – Rs.10,00,000	10%
  Rs.10,00,001 -Rs. 25,00,000	20%
  Above Rs. 25,00,001	30%
  Individual Senior Citizens
  Up to Rs. 2,40,000	NIL
  Rs.2,40,001 to Rs. 10,00,000	10%
  Rs.10,00,001 to Rs. 25,00,000	20%
  Above Rs. 25,00,001	30%

  
  
• Aurobindo Pharma to buy Trident Life Sciences.It would acquire 100% stake of Trident Life Sciences subject to suitable agreements between the parties.