Today I watched a program on NDTV Profit during lunch with FM P Chidambaram.
He did mean that the dog food is a joke, and talked about after life....
He did admit that unemployment ratio was well balanced during 1999-2004 (BJP rule) at around 3%, and this UPA government is also maintaining that but with better growth!
He was beating around the bush on bringing the pulses cost.... but with limited option of imports = meaning, self sustained country is the answer. Grow More and do less Commodity Trading!
The Dividend Distribution Tax DDT, is the best bet for long term investments...
Also 25% DDT is tough on Liquid Funds. With the current rate around 7.5%, the effective yield after expenses at 0.5% would be only 5.25%, less than the easy fixed deposits of 6 months rate at 7.5% (taxable at 33.99% is effective 4.95%)...not bad... only 0.3% more than earlier rate of 6.06%, with the given 3 days to pay, it works out OK.
Also he did explain that the MAT on 10 A/B co's (IT) without sops, with low hardware prices etc... would be spending little more than 1.5% of annual turnover, that is nothing! (with a rate of 11.33%).
But ESOP is still being worked out. Might become law in Sept. The explanation, who pays that tax? It would be at 33.99% and already TCS, Wipro and Satyam have issued statements by HR Heads, that it would be borne by the employee.
I am fascinated on becoming the FM one day. I really want to do good to people.