QBiz: Census Reveals Grim Picture; Black Money; Chopper Deal

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Mahindra, Airbus Helicopters sign pact for chopper venture

The defence division of the Mahindra Group, Mahindra Defence Systems Ltd, and Europe’s Airbus Helicopters have signed an in-principle agreement to set up a joint venture to manufacture helicopters in India, seeking to tap a military hardware market estimated to be worth an annual $41 billion (around Rs.2.6 trillion) in seven years. The details of the investment will be finalized soon, according to a statement issued by the companies.

Census reveals grim picture of Bharat

The Socio Economic and Caste Census on rural areas reveals that one out of three families is landless, less than 5 per cent of the rural households pay income tax, but over 68 per cent have mobile phones.

Of the total 24.39 crore households in the country, 17.91 crore are in rural areas. Of the rural households, 18.46 per cent belong to a Scheduled Caste and 10.97 per cent to a Schedule Tribe while 68.5 per cent belong to ‘other categories’. Interestingly, over 36.5 lakh families (a little over 2 per cent) belong to no caste or tribe category.

Black money: rules for valuation of foreign assets notified

Anyone having an undisclosed bank account abroad will now have to pay tax and a penalty on the sum of deposits made since opening the account, according to the rules notified for implementation of a one-time compliance window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

The compliance window gives the account holder an opportunity to declare undisclosed assets abroad by September 30 and a further three months to pay the tax and penalty. The rate of tax will be 30 per cent, with an equal amount payable as penalty.

The rules also prescribe valuation norms for bullion and jewellery (including precious stones), immovable property, archaeological collections and paintings, shares (both listed and unlisted), as well as bank accounts.

DFS clears way for $3 bn inflow into insurance

The Foreign Investment Promotion Board (FIPB) has cleared a proposal by Kotak Mahindra Bank to increase the foreign investment limit in the bank to 55% from about 49%.

The DFS move, analysts told the Financial Express, would create room for increased foreign investment in the insurance ventures of these firms. With the hike in foreign investment limit in insurance, about $3 billion in foreign capital is expected to come into a sector starved of capital for expansion.

Europeans tried to block IMF debt report on Greece: Sources

Euro zone countries tried in vain to stop the IMF publishing a gloomy analysis of Greece’s debt burden which the leftist government says vindicates its call to voters to reject bailout terms.

The document released in Washington said Greece’s public finances will not be sustainable without substantial debt relief, possibly including write-offs by European partners of loans guaranteed by taxpayers.

It also said Greece will need at least 50 billion euros in additional aid over the next three years to keep itself afloat.

Implementation of projects rises 8.4% in first quarter, stalled projects decline

In an apparent sign of a pickup in economic activities, reports point to a rise in projects under implementation as well as a decline in the number of stalled projects.

Data released by independent economy tracker CMIE showed an 8.4% rise in projects under implementation in the quarter ended June 30, fastest since the September 2012 quarter. Private sector projects under implementation rose 0.8% in the June quarter, the first expansion in eight quarters.