FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
Proposals directed at your purse!
What will be cheaper?
- Leather goods including footwear should cost lower if the manufacturers pass on the duty reduction (from 7.5% to 5%) to consumers
- Pre-forms precious and semi-precious stones would cost lower as a result of duty reduction from 10% to 2%. It should help women shine more J
- Women and to some extent men travelling abroad have some reason to smile. Duty free gold that Women can bring has been hiked to Rs.1,00,000 and by men Rs.50,000.
- Handmade carpets and textile floor coverings of coir and jute to cost less as they are completely exempted from excise duty.
What will be costlier?
- Set top boxes would cost more with higher duty at 10%. This is to help incentivize domestic manufacturers of set top boxes. Till they catch up with the market the average consumer will have to shell out more to catch up with their SRKs and SRTs especially with the growing mandatory digitization of cable TV industry
- Silks sarees purchased from weavers who import raw silk would cost more as the duty for raw silk raised from 5 to 15%.
- High end motor vehicles, motors cycles and similar vessels to cost more with duty on many of them increased. Excise duty on Luxury cars has been raised to 100%, on luxury motorcycles it has been raised to 75% and on Yachts to 25%.
- Smokers, either cut down on the cigars you smoke a day or ready to shell out more. Excise duty on cigarettes and related products raised to above 18%.
- Have you purchased the SUV you had planned to buy? If not, it is going to cost you more as the excise duty for SUVs not registered as taxis to go up from 27% to 30%.
- Did you saying vitrified tiles while your spouse said marble for the flooring of your house? Well FM has strengthened your voice. He has doubled duty on marble from Rs.30 per square meter to Rs.60 per square meter.
- Ever raising silver has one more reason go further up. Proposal to levy 4% excise duty on silver manufactured from smelting zinc or lead.
- Mobiles phones costing more than Rs.2000 to cost more with the raise in excise duty to 6%
- You have one more reason to listen to your mother and eat at home. Service tax to be levied on all air conditioned restaurants.