The Things You Should Know

What is Finance Commission of India: The Finance Commission of India was formed to define the financial relation between the Centre and the States. It was formed in 1951 under the Article 280 of   the Indian Constitution by the President of India, The Commission is appointed every five years and it consists of chairman and other four members. The 14 th Finance Commission is appointed in 2013. The chairman of the Commission is Dr Y V Reddy. 1 st Finance Commission:   The First Finance Commission was appointed in 1951. The chairman of the 1 st Finance Commission was K C Neogy. Key Recommendations of 14th Finance Commission: Sharing of Union Taxes:   The Finance Commission recommended to increase the share of tax devolution to 42% from 32% (recommended by 13th Finance Commission). This is the largest change ever in the percentage of States’ share in net proceeds from tax collection. As per the Commission, this would serve the twin objectives ...

The Congress President Sonia Gandhi's ambitious National Food Security Bill 2013 was passed by the Lok Sabha in August 2013 through a voice vote after the day long debate in Lok Sabha. It was signed into law on 12th September 2013. The Bill was originally conceived by the National Advisory Council headed by Congress President  Sonia Gandhi , who on 27 October, 2010, forwarded the basic framework of the proposed National Food Security Bill (NFSB) to the then Prime Minister Dr Manmohan Singh . The prime minister set up an expert panel under the chairmanship of C Rangarajan to study the NAC's proposal .   The National Food Security Act 2013 has converted the food security programmes of the Government of India into the legal entitlements. This Act includes Mid-Day Meal Scheme, Antyodaya Anna Yojna, Public Distribution System, Integrated Child Development Programme. This Act also additionally covers the pregnant women and lactating mothers. Objective : The main...

INSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND PARTNERSHIP FIRMS: Fresh Start Process:   A debtor, who is unable to pay his debts and satisfies the conditions of this section, will be entitled to a fresh start by obtaining a discharge from his qualifying debts. A debtor can apply, either personally or through a resolution professional, for a fresh start in respect of his qualifying debts to the Adjudicating Authority if - The gross annual income of the debtor does not exceed rupees 60,000/-; The aggregate value of the assets of the debtor does not exceed rupees 20,000/-; The aggregate value of the qualifying debts does not exceed rupees 35,000/-; He is not undischarged bankrupt; He does not owe a dwelling unit, irrespective of whether it is encumbered or not; A fresh start process, insolvency resolution process or bankruptcy process is not subsisting against him; and No previous fresh start order under this Chapter has been made in relation to him in t...

The NDA Government on Friday 18 th March reduced the interest rates on the small saving schemes including PPF (Public Provident Fund), NSC (National Saving Certificate), Kisan Vikas Patra, Sukanya Samriddhi Scheme, Senior Citizen Saving Scheme etc. The new interest rates will be effective from the first quarter of the next fiscal year i.e April 1 2016 to June 30 2016, as the government revises interest rates of such schemes on quarterly basis. The government announced highest reduction of 130 points in case of 1 year period deposit. The current interest rate on this deposit is 8.40% which has been reduced to 7.10%. Interest rate on Public Provident Fund will cut to 8.1% from 8.5%. Currently interest rate on Kisan Vikas Patra is 8.7%, which will be reduced to 8.7% from 1st April. Even the Prime Minister's scheme for girl child 'Sukanya Samriddhi Yojna' is also not spared. The rates on this scheme, launched by PM is being lowered to 8.6% from 9.2%.  Sch...

The Insolvency and Bankruptcy Code 2015 was introduced in lower house of Parliament by the Minister of Finance Mr Arun Jaitley on December 1st 2015.  The Insolvency and Bankruptcy Code, 2015, will replace the existing bankruptcy laws to make it easy for investors to exit within a fixed time frame, in an effort to improve the ease of doing business in India. What is Insolvency: Insolvency is a situation where the entity (individual or organization) becomes unable to meet their financial obligations or debts. Objective : The main objective of The Insolvency and Bankruptcy code 2015 is “to promote entrepreneurship, availability of credit, and balance the interests of all the stakeholders by consolidating and amending the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner and for maximization of value of the assets of such persons and matters connected therewith or incidental thereto. ” ...