Financial Package Fy 2016 & 2017 Nurses Professional Technical: Fill & Download for Free

The single number that represents and gives you detail about any economy is its GDP in constant price term. The real GDP (constant price) of India grew at 5.7% in first quarter of financial year 2017 – 2018. The growth recorded is the lowest in last 2 years as depicted by below chart:Before, we start analyzing the reason for slow growth in economy it is essential to understand that most of the below mention problem continued to exist since the beginning of FY 2015 - 2016.However, the growth number were fascinating largely because of low crude oil prices. India imports 80% of its oil requirement thus any reduction in global crude oil prices should benefit immediately and the benefit gets compounded when the government does not passes down the same benefit to the consumer.The IMF projected that India could gain 3.3% in growth in FY 2015 - 2016 due to fall in crude oil prices. Following chart explores the relationship between Brent crude oil prices and GDP of India.In order to understand the reason for downfall in the GDP number it is important to identify how GDP is determined. The 5.7% growth is arrived by using “Expenditure Approach” under which GDP is calculated as the sum of the final uses of goods and services (all uses except intermediate consumption) measured in purchasers' prices.Components of GDP by expenditureGDP (Y) is the sum of consumption (C), investment (I), government spending (G) and net exports (X – M) where X represent export and M represent import.Y = C + I + G + (X − M)In India “C” is called as Private final consumption expenditure which is sum of expenditure incurred by household for their own consumption and expenditure incurred by non-profit institutions serving household.Further “I” is sum of gross fixed capital formation, changes in stock and valuable. However, gross fixed capital formation contributes majorly towards total investment.The following chart reveal’s contribution to GDP of India by each of the aforesaid mentioned component:From the above chart it is clear that the private final consumption expenditure, government final consumption expenditure and gross fixed capital formation accounts for more than 95% of the total GDP.In order to understand the impact in each of this critical sector, it is imperative that we have a look at there performance over the period.The subsequent chart tries to explain the same by looking at the growth rate in each of the component over the 9 quarter’s.PRIVATE FINAL CONSUMPTION EXPENDITURE (PFCE):The main driver of consumer spending’s is the unemployment rate, interest rate, consumer expectation or consumer sentiments and growth in wage rate. Higher unemployment rate decreases consumer spending. Higher Interest rates can also impact the level of spending on consumer goods substantially because many higher-end consumer goods, are often purchased by consumers on credit. Further, higher consumer sentiment or consumer expectation about the economy overall should drive up the consumption expenditure. For instance, if consumer expects that the overall economy is going to grow he may increase his consumption whereas, if consumer sentiment is negative than consumer will delay consumption and prefer savings.The repo rate of 6.25% for Q3 FY 2016-2017 and Q4 FY 2016 – 2017 was justified considering that inflation for Q3 FY 2016 – 2017 was 3.75% and for Q4 FY 2016 – 2017 it was 3.54%. However, inflation for April 2017 was 2.99% followed by 2.18% in May. The RBI should have reduced the repo rate after may inflation. The reduction could possibly have resulted in increased sale of higher-end consumer goods such as automobiles.The unemployment rate hit lowest in Q1 FY 2017 – 2018. However, it seems the low unemployment rate did not add much to PFCE. This is largely because of low real wage growth. Real wages of listed companies grew by 4.4 per cent in the quarter ended June 2017 whereas it grew by 4.7 per cent in the March 2017 quarter. The long-term annual average growth rate in real wages works out to be 6%. The low real wage growth in Q1 FY 2017 -2018 was expected because of low corporate earnings in Q1 FY 2017 – 2018. The net profit for all the listed companies combined was down by 0.8% y-o-y before adjusting for inflation, lowest in the last four quarter. In real terms the growth was negative in wage rate.Consumer sentiment/expectation can affect the PFCE. If the consumers are not optimistic about the economic growth they will defer or postpone the consumption and prefer saving. The consumer sentiment chart shows decline in the expectation. This could have resulted in decline in PFCE. It can be corroborated with increase in saving during the quarter. For instance, Equity mutual funds during April-June 2017 have seen an inflow of over Rs. 28,000 crores, a surge of nearly three-times from the year-ago level. Further, the aggregate deposit of all scheduled commercial bank increased by 12.6% Y-o-Y which was greater than the growth of 11.3% recorded in Q4 of FY 2016 – 2017 and growth of 9.20% in Q1 FY 2016 -2017. Growth in aggregate deposit is generally negatively correlated with growth in the GDP as can be inferred from below chart:It can be inferred that generally growth in GDP and growth in aggregate deposit move in opposite direction. The correlation during last 9 quarter was -0.55 and the R^2 was 0.298 which means 29.8% of changes in GDP growth rate could have been explained by changes in aggregate deposit over the period.However, all is not bad jut because the saving in Q1 FY 2017 - 2018 is at record high. In order to understand, let’s have a look at following equation:S = I + (G – T) + (X – M)This equation shows that domestic private saving(S) is used or absorbed in one of three ways: investment spending (I), financing government deficits (G – T), and building up financial claims against overseas economies [positive trade balance, (X – M) > 0].Thus over long run higher saving in present can result in higher economic growth in future.GROSS FIXED CAPITAL FORMATION (GFCF).GFCF is major component of Investment expenditure (I). GFCF represent investment made by business in creating fixed assets and construction of new houses by household. The GFCF registered a growth of 1.40% in Q1 FY 2017 – 2018 as opposed to growth of 7.40% in Q1 FY 2016 – 2017. The major reason for decline is “twin balance sheet problem”. The balance sheet is a statement representing assets and liabilities of an institution. Here, twin- balance sheet refer to balance sheet of banks and corporates in India. Twin balance sheet is nothing but problem created due to a leveraged corporate sector alongside a stressed banking sector. India Inc. is currently highly leveraged and because of weak consumption the top line is not improving and as result they are not able to serve their debt service obligations. This has led to rise in the non-performing assets of Indian Bank. For instance, around $191bn-worth, or 16.6% of the entire banking system, is now “non-performing”, according to economists at Yes Bank. As per RBI Financial Stability Report, released in June 2017 the average GNPA ratio of all SCBs may increase from 9.6 per cent in March 2017 to 10.2 per cent by March 2018. However, if the macroeconomic conditions deteriorate, the GNPA ratio may increase further under such consequential stress scenarios”.It is time we look back to the following equation once again:S = I + (G – T) + (X – M)Now the increase in saving can be used to increase the investment only if, banks are willing to lend the credit. However, because of twin balance sheet problem, banks are hesitant to provide credit to the corporate even though there has been surge in aggregate deposit received by scheduled commercial bank.The following chart shows that the credit to deposit ratio has hit rock bottom at 72.80% in Q1 FY 2017 – 2018, which was 75.90% in Q1 FY 2016 – 2017 and 73.70% in Q4 FY 2016 – 2017.GOVERNMENT FINAL CONSUMPTION EXPENDITURE (GFCE).GFCE is expenditure incurred by the general government sector on goods or services that are used for the direct satisfaction of individual needs or wants (individual consumption goods and services) or expenditure on the collective needs of members of the community (collective consumption services)”.The GFCE for Q1 FY 2017 – 2018 registered growth of 17.2% as opposed to 16.60% for Q1 FY 2016 – 2017. The growth in GFCE is lower as compared to 31.90% in Q4 FY 2016 – 2017. The reason for high growth in Q4 FY 2016 – 2017 is low base effect.The growth in GFCE has partially set-off the decline in PFCE. However, going ahead it would be challenging for government to maintain higher GFCE in order to support the economy growth without breaching its fiscal deficit target of 3.2% of GDP. This is because the fiscal deficit as of August 2017 has already touched 96.1% of the Budget estimate and given slow rise in revenue of government, the revenue would not be sufficient enough to finance the fiscal stimulus package.Assuming the budgeted total revenue figure for 2017-18 remains constant, for each additional spending of Rs 10,000 crore, the fiscal deficit as a percentage of GDP roughly increases by a little less than 0.1 per cent.Also, government revenue projections are far too optimistic. For instance, the government had set a target of generating revenue worth Rs 72,000 crore from disinvestment. However, with six months being passed away, the actual revenue from the disinvestment stood at Rs 19,157 crore. Further, its plan to raise revenue through selling of telecom spectrum license may end up receiving look worm response because of stress in telecom industry which has been compounded by lower inter-connect usage charges (IUC).EXPORT and IMPORT(X-M)The export grew at 1.20% in Q1 FY 2017 – 2018 whereas import grew at 13.4% highest in last 9 quarters.The reason for high import is increase in non-oil imports basically manufacturing imports. JP Morgan report points out that “the negative supply side shocked caused due to demonetization has disrupted supply chains and have resulted in higher manufacturing imports into India. Manufacturing sector involving small and medium enterprises post-demonetization has been replaced by imports “Since, India imports largest from China the appreciation of rupees against yuan during Q1 FY 2017 – 2018 also contributed to the increase in import. Further, appreciation of rupees against dollar impact the growth in export specially export of software.Following chart shows the appreciation/depreciation in USD and Yuan against rupees. The depreciation in USD and Yuan represents appreciation in rupees however, not by same amount.The reason for appreciation in rupees is increase in capital flow from foreign. The F.P.I has increased because of higher yield offered on Indian rupees. For instance, the 10-year Indian sovereign bond offer a yield of 6.7% making it attractive return for investor in developed market where yield is still low. There has been surge in carry trade strategy, where investor in lower yield market borrows money to make investment in higher yield market like India. In fact, not only India but other emerging market such as Indonesia and Vietnam have also saw surge in F.P.I. Further, The J.P. Morgan Government Bond Index-EM index of emerging-market local-currency bonds has returned 14.6% in dollar terms so far, this year till August 2017 highlighting the rising investment in EM.

One cannot completely support this move if he has a little knowledge about Indian economy, and finance and economics in general. It was a bold move no doubt but it didn't have a clear agenda. The motives kept on changing day after day and when we ask the FM or the PM about it, they give us the numbers about increase in Digital transactions and stuff like that.Read: Why has India's GDP growth rate suddenly slowed down in Q4?There are several factors responsible for GDP in a quarter. There was some slowdown visible in the domestic situation even prior to the demonetization in the FY 2016–17. There was an impact of the global factors also because global economy was sluggish during that period.There was an impact of demonetization on one-two quarters following it and we cannot only blame demonetization as a whole because all these are cumulative factors that led to this decrease in number.FM today in a press conference said that and I quoteThere is also an impact of, if you look at various sectors, the 9–10% growth which was normally in the services and the financial sector came down and the ability of the banks decreased.But I do believe that in the current global situation, a 7–8% growth, which is at the moment the Indian normal, is a fairly resonable. By global standards (averaging just above 2%) it is very good and by our standards fairly resonable level of growth.I am sure as the impact of all these policies will hold out.I don't defend this move but I don't also believe that only demonetization had a large impact but a large share of impact was due to demonetization. If you the above answer, you will find out that I have written about decrease in the demand in various sectors which led to the downgrade and those impacts were mainly due to demonetization.I also believe that we may see a little downgrade again after the implementation of GST, despite it being a good move, it will effect business, if not the consumers. My uncle recently started the business of exporting packaged vegetables and similar materials, and selling them to hotels and restaurants, on which there was no tax previously and now it has been increased to 18%, which is huge. Similar cases in other sectors may also be there.Let's see what happens!

If you have Form 16 means that you have income from salary.If By Filing independently you mean filing yourself please do . Filing ITR is not rocket science but you need to learn the basics. Our page Understand Income Tax, Fill ITR,Income Tax Notice covers information about Income tax.The word Income has a very broad and inclusive meaning. In case of a salaried person, all that is received from an employer in cash, kind or as a facility is considered as income. For a businessman, his net profits will constitute income. Income may also flow from investments in the form of Interest, Dividend, and Commission etc. Under the Act, all incomes earned by persons are classified into 5 different headIncome from SalaryIncome from House propertyIncome from Business or ProfessionIncome from capital gainsIncome from other sourcesTotal income is sum of income earned under all these categories.Tax Slabs:Income tax depends on the income earned, more the income, more the tax. The income slab also varies with age(less than 60,between 60 – 80 years, more than 80), residence(india/non-resident India), gender(male/female) and financial year. For quite some time India has four income slabs or groupsincome not taxed at all,income taxed at 10%,income taxed at 20% andincome taxed at 30%.For income from Salary employer gives Form 16, and Form 12BA to the employee after the financial year (usually by mid May) . These are used by the employee as reference as well as proof while filing Income Tax Returns. The Form furnishes various details such as Salary Income components of the Employee, Tax Deducted at Source (TDS) by the Employer, and Tax paid by the Employer to the Income Tax Department. Our article Understanding Form 16: Part I,What is return of income?It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the Financial year, called as income tax return or ITR.ITR FormDifferent income tax return forms are made available by Income Tax Dept every year based on kind of income (remember there are five kinds of income, salary, income from house property etc). You should choose a return form according to your status(resident etc) and nature of incomeThe new return forms are annexure less. Hence no documents need to be attached.Calendar year starts on January 1 and ends on December 31 but a Financial year (FY) is from April 1 to March 31. As per the Income Tax Act, income earned in a financial year (FY) is taxed in the next Financial Year. FY to which the income belongs is called the Previous year (PY) and the FY in which the income is taxed is called the Assessment year (AY).Ex: The income earned between 1 Apr 2016 to 31 Mar 2017 will be assessed for tax in the FY 2016-17FY 2016-17 is called Previous YearAssessment Year is 2017-18 or AY 2017-18.You can use Indian Govt tax e filing website which is free or non-govt e-filing websites such as taxspanner.com, taxshax.com, taxsmile.com and taxsum.com.The non-government websites differ from each other on two counts, the number of income sources they cover and the process involved. They also have different packages, offers and discounts. Remember that when you file your returns online, you are sharing important personal financial details, such as your income, savings and investments, bank account details, and so on