BLACK MONEY

A list of 15 individuals and trusts allegedly holding secret accounts in the tax haven of Liechtenstein was released by Tehelka news magazine on Thursday.

The list had been handed over to the Indian government in March, 2009 and the government had taken the stand that the names could not be disclosed because these had been given by the German government on confidential terms.

Investigation by the Central Board of Direct Taxes against the individuals and entities figuring in the list are believed to be close to completion. They are expected to be prosecuted under various provisions of Income Tax Act.

The list released by Tehelka contains the names of 12 individuals and three foundations without their addresses and the business they are involved in as also the amounts they have allegedly stashed in these accounts.

The magazine said it had approached each of the individuals involved and was awaiting their response pending which it is not giving details though it had given the names.

According to the magazine, the name of the chairman of a major Indian corporation was on the list but it had decided to hold back the name because it was awaiting "his full version".

CNN-IBN channel has named four trusts as belonging to Indians — Ambrunova Trust, Marline Management SA, Marnichi Trust and Socalo Stiftung.

THINK IF THE INDIAN BLACK MONEY IS THERE THEN ITS BUT OBVIOUS THAT INDIA WILL FACE INFLATION AND DUE TO THIS COMMON PERSON SUFFERS.

Inflation

In economics, the inflation rate is a measure of inflation, the rate of increase of a price index (for example, a consumer price index). It is the percentage rate of change in price level over time.[1] The rate of decrease in the purchasing power of money is approximately equal.

The inflation rate is used to calculate the real interest rate, as well as real increases in wages

Description of the rate: The rate is usually expressed in annualized terms, though the measurement periods are usually different from one year. Inflation rates are often given in seasonally adjusted terms, removing systematic quarter-to-quarter variation

If P₀ is the current average price level and P _{− 1} is the price level a year ago, the rate of inflation during the year might be measured as follows:

Inflation Rate = {(P0 - P-1)/P-1}*100%

After the year the purchasing power of a unit of money is multiplied by a factor 1 / ( 1 + inflation rate ).

There are other ways of defining the inflation rate, such as logP₀ − logP _{− 1} (using the natural log), again stated as a percentage. In this case after the year the purchasing power of a unit of money is multiplied by a factor e ^{− inflation rate}.

There are two general methods for calculating inflation rates - one is to use a base period, the other is to use "chained" measurements. Chained measurements adjust not only the prices, but the contents of the market basket involved, with each price period. More common, however, is the base period reference. This can be seen from inflation reports from the "relative weight" assigned to each component, and by looking at the technical notes to see what each item in an inflation basket represents and how it is calculated.

India Inflation Rate

The inflation rate in India was last reported at 8.33 percent in November of 2010. From 1969 until 2010, the average inflation rate in India was 7.99 percent reaching an historical high of 34.68 percent in September of 1974 and a record low of -11.31 percent in May of 1976. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. This page includes: India Inflation Rate chart, historical data and news.

Free Fuel Pricing Regime

Amid indications that the UPA government was all set to put in place a partial “free fuel pricing regime” to cut down the losses of oil marketing companies and end the “subsidy culture,” Union Petroleum and Natural Gas Minister Murli Deora is understood to have met Finance Minister Pranab Mukherjee on Sunday to discuss the fuel price hike and other related issues. The meeting comes close on the heels of the one Mr. Deora had with Prime Minister Manmohan Singh on Saturday. The Empowered Group of Ministers (EGoM), headed by Mr. Mukherjee, is scheduled to meet on Monday and discuss the oil price hike issue, including the Ketan Parik Committee report, which has recommended an across-the-board hike in the prices of petrol, diesel, LPG cylinders and kerosene to put an end to the “bleeding of public sector oil companies.” It is learnt that both Ministers discussed the extent of “oil reforms” and products that could be covered under the free pricing policy sought to be introduced. The Finance Ministry has been pressing the Petroleum Ministry to take “bold steps” to unshackle the petroleum sector and bring the domestic prices of at least petrol and diesel on par with the movement in the international crude oil prices, which currently stand at around $72 per barrel. Both Ministers also discussed measures to protect consumers in case of high volatility in the crude oil prices. It is being discussed that a price band mechanism should be put in place to ensure that if crude oil prices crossed those levels, the government would intervene in both the public as well as private sectors to protect the common man.

Price Rise

This is the first time in Indian economy that prices in India are flying high and which is due to the Inflation, currently common man is effected the most because of this. take an example of Petrol Prices in last 2 months i.e Dec 2010 and Jan 2011 Petrol prices have been increased by 5.5 Rs. and it came as an surprise when someone told me that this is not a subsidized rate on which petrol should be provided to public, Govt. is saying that this is because of the high international rate of Petrol however there is a breakdown of prices given below which comprises of lots of taxes which common public is paying.

If the cost price of petrol per litre is Rs 58.90, following is the break up of cost calculated by the government.

Basic Price: Rs 28.93
Excise duty: Rs 14.35
Education Tax: Rs 0.43
Dealer commission: Rs 1.05
VAT: Rs 5.5
Crude Oil Custom duty: Rs 1.1
Petrol Custom: Rs 1.54
Transportation Charge: Rs 6.00
Total price: Rs 58.90

Look at the break up and now decide who is responsible for price rise of Petrol.