Double home loan repayment exemption limit to Rs 3 lakh: ICAI

http://www.moneyspidery.com/2012/01/30/double-home-loan-repayment-exemption-limit-to-rs-3-lakh-icai/

Seeking relief for home buyers, accounting regulator ICAI has asked the Finance Ministry to double the tax exemption limit on loan repayment to Rs 3 lakh.

“…it is suggested that the deduction in respect of interest on housing loan in case of self occupied property should be increased from Rs 1.5 lakh to Rs 3 lakh”, ICAI said in a pre-Budget memorandum to Finance Minister Pranab Mukherjee.

Indian Government plans hallmarking of diamonds

http://www.moneyspidery.com/2012/01/30/indian-government-plans-hallmarking-of-diamonds/

India is planning to soon have a hallmarking mechanism for diamonds. Sources said that the government is thinking of certification of diamond like that for gold.

The trigger for the move comes in the form of a recent circular by the customs department imposing an import duty of 2 per cent on both lab-grown diamonds and natural diamonds.

With this, experts fear the country might see a big inflow of lab-grown diamonds, which hitherto had an import duty of 10 per cent. It also raises concern that consumers, finding it hard to tell the difference between lab-grown and natural diamonds, could be duped. Natural diamonds will now attract a duty of 2 per cent as per the notification by the finance ministry.

US remains top investor in India

http://www.moneyspidery.com/2012/01/30/us-remains-top-investor-in-india/

New Delhi, Jan 30 : The uncertainties in global economic climate notwithstanding, foreign investors see India as an attractive investment option.

‘Ready for the transition’ Ernst & Young’s 2012 Indian Attractiveness Survey, reveals that overall the number of foreign direct investment (FDI) projects increased 25 per cent to 864 (valued at $50,813 million) in the 11 months to November, up from 691 projects ($44,874 million) in 2010.

Where has the FDI investment come from? The US remains the leading investor in India, both in terms of projects and jobs generated. There was a 30 per cent increase in the number of FDI projects compared with 2010 and rise of 31 per cent of investment projects (1,282), with more than 316,900 jobs created between 2007 and November 2011, the survey shows.

Health insurance: Employers try co-payment

http://www.moneyspidery.com/2012/01/30/health-insurance-employers-try-co-payment/

Health insurance benefit today is a hygiene factor for employers and they cannot afford to treat it as a talent attraction or a retention tool anymore. The absence of a good program can create an adverse impact in the minds of employees. However in the presence of an average program, one is not likely to give them significant brownie points.

Nippon picks 26% stake in Reliance Mutual Fund

http://www.moneyspidery.com/2012/01/19/nippon-picks-26-stake-in-reliance-mutual-fund/#more-59

The deal values Reliance Asset Management at Rs. 5,600 crore, marking it the largest FDI in the Indian mutual fund industry.

Japan based Nippon Life Insurance Company today signed a Memorandum of Understanding (MoU) to acquire 26 percent stake in Reliance Capital Asset Management (RCAM). The deal is the largest FDI in the mutual fund space.

Nippon Life will invest Rs. 1,450 crore to acquire 26 percent stake in RCAM. The transaction pegs the total valuation of RCAM at approximately Rs. 5,600 crore.

“We are delighted to have Nippon as our strategic partners in the mutual fund business. They are already our partners in the life insurance business. The mutual fund partnership cements and strengthens the relationship between Reliance Group and Nippon Life further and takes it to a new level,” said Anil D. Ambani in a statement.

Reserve Bank of India unlikely to cut rates as it reviews policy

http://www.moneyspidery.com/2012/01/23/reserve-bank-of-india-unlikely-to-cut-rates-as-it-reviews-policy/#more-57

So near and yet so far – is what economists predict about the rate cuts scenario as the Reserve Bank of India (RBI) policy meet nears. While the apex bank is expected to cut policy rates by 125-150 basis points (bps or one-hundredth of a percentage point) in 2012, none is expected on January 24.

“With growth conditions improving slightly and core inflation still elevated, we believe there is no compelling case to ease monetary policy this time around,” said Leif Eskesen, chief economist for India and the Asean of HSBC.

“Moreover, we do not expect a cut in the cash reserve ratio (CRR) this time around to ease liquidity constraints, which would be addressed through open market operations (OMO or buy-back of government bonds and thus increasing availability of funds with banks),” Eskesen added.