Practicing Firms

If you want to walk fast, walk alone. But if you want to walk far, walk together. - RatanTata

Practicing Firms

• 1 Proprietorship Firms- 52,913
• 2-5 Partners - 20,506
• 6-10 Partners - 1744
• 11-15 Partners - 235
• 16-20 Partners - 48
• 21-30 Partners - 27
• 31-50 Partners - 7
• 51 & Above Partners - 9

          Total Firms - 75,489

Let us first go through this data published Professional Development Committee ICAI February-2019 edition, where almost 70% CA practicing as a Proprietorship firm and around only 3% partnership firm having more than 6 partners.

About Insurance

An essential part of financial planning is insurance planning. Just like financial planning, it is also specific to the individuals and their situation.

Insurance products available to an individual can be categorized as life insurance and non- life insurance.

Let’s talk about life insurance.

It is taken primarily for the financial safety of your family so as to ensure them a decent/good life even in your absence. A huge responsibility isn’t it?

However insurance is also seen as a way to save and invest. Some insurance policies include a saving component along with the risk protection. The premium collected will be higher, with one portion assigned for risk protection (insurance component) and the other for the saving component (investment component).

Life insurance products can be defined by the benefits that they provide to the insured (Insurance company is called insurer and the one who takes out the policy is called insured).

There are many types of life insurance policies. It should be chosen based on your needs and goals.

👉 Term Life Insurance

It is a pure risk cover product. It pays a benefit only if the policy holder dies during the period for which he/she is insured.

Term insurance premiums are typically low because it only covers the risk of death and there is no investment component in it. The 3 key factors to be considered here are-
• Sum assured (protection or death benefit)
• Premium to be paid (cost to the insured), &
• Length of coverage (term).
Various insurance co sell term insurance with many different combinations of these 3 parameters.

It is the cheapest form of life #insurance.
For a 25 year old male (Non-smoker) who wants to buy life cover of Rs. 1 Cr for upto 60 years age (term = 35 years), the monthly premium will range between Rs. 600-900.

Just imagine a security cover of 1 Cr for your family by paying just Rs. 7200-10800 p.a.

However the same cover for a 35 year old male (term = 25 years) will come at a monthly premium of Rs. 900-1300.

What’s the catch?
Take life cover as early as possible because that will lead to significant reduction in your total outflow in the form of premium plus you will also be covered for a longer tenure. A win-win situation.


👉 Life Insurance

Life insurance cover is must for a sound financial planning of a non-gov employee or a self-employed person atleast.

And now when it is pretty much clear that for a considerable time we have to live alongwith Covid-19, life insurance should not be ignored. 

Government has announced 20 lakh crore package

Government has announced 20 lakh crore package to help the people in these times of economic slowdown and recession. it was annouced on 12th May but details were released in FIVE parts across 5 days by our finance minister press conferences. i will summarize the details of this package.

Monetary policy = 8 lakh crore (by RBI)

This one for Banks and NBFC's

Fiscal Policy = 12 lakh crore (by Govt)

This one for

MSME - Collateral free loan worth 3 lakh crore

POWER DISCOM - 90,000 liquidity lifeline

FARMERS - Already annouced but Now again repeate

STREET VENDORS - 5,000 crore credit facility

MIGRANT WORKERS - 3500 crore

TDS REDUCTION - 25% in existing rate (except Sec 192)

REDUCE EPF CONTRIBUTION - 12% to 10%

OTHERS

FINALLY

WHAT IS THE REAL STIMULUS AMOUNT

BETWEEN 1 LAKH CRORE TO 2.7 LAKH CRORE (APPROXX)

Announcement by Finance Minister TRANCHE-II

Today's Announcement by Finance Minister
TRANCHE-II
Focus on Migrant Workers, Street Vendors, Small Traders, Self Employed People, Small Farmers

Migrant Workers
For migrants who are going back home, we have generated 42.62 crore persons days of work, which is 40-50% more than before the coronavirus lockdown. We have enrolled them 2.33 crore wage seekers in 1.87 lakh gram panchayats who via MNREGA will get enrolled and get jobs. They will be actively engaged, annual expenditure is Rs 10,000 crore.

Special credit facility to 50 lakh street vendors of worth Rs 10,000 crore.

Interest subvention for loans to farmers, normally given for prompt repayment, further extended to May 31, 2020. Close to 3 crore marginal farmers had received loans worth Rs 4 lakh crore at low rates. They were also given a moratorium by the RBI.

25 lakh new Kisan credit card holders have been sanctioned loans worth Rs 25,000 crore


For urban poor, including migrants
Rs 11,000 crores by the Centre sent to states to to set up shelter for migrants and provide food and water
7200 new SHGs have been formed for the urban poor since March 15.

12,000 self-help groups have produced 3 crore masks during Covid period.

Free food grains for migrants for next 2 months.

One Nation One Ration Card
Now card-holders can be used in any ration shop in country.
63 crore beneficiaries in 23 states will get covered by August 100% coverage by March 2021

Affordable Housing Scheme

Shishu Loan with Mudra
Interest subvention support of 2%

Recession in Lockdown due to Coronavirus

The demand will come down by 6% in 2020 comparision to 7 times higher than the 2008 recession.

The spread of coronavirus is affecting energy demand world wide. Energy demand in the country has decreased by 30% approx due to lockdown announced in march 2020. according to the international energy agencies (IEA) demand will decrease per week 0.6% annually. The agency says the industry's trend has increased towards solar, wind and hydropwer. this effect comes due to COVID19 lockdown worldwide.

Advantage offered by India to Foregin Companeis for Investment perspective

Advantage offered by india to foregin companies for investment prospective.


- More economical in term of securing land compare to orher countries.

- Affordable skilled Labor comapre to other countries.

- Change in Labor Laws, which have proved a major stumbling back for Companies.

- Government is considering request from e commerce companies to postpone Tax on Digital Transactions (Which is Introduce in Budget 2020).

- India approved 130 billion rupee ($1.7billion) worth of Investments to make more Drugs and Medical Devices and boost local manufacturing of Drugs intermediates and active pharmaceutical ingredients to cut dependence on Import from China.

It's win win situation for both India and Companies Coming to India. India is offering and amending Laws for Investment of foregin companeis in India.

For foregin companeis, India is emerging markets it will be give a good return and boost the economy.

Saudi Arabia triples VAT (15%) to support coronavirus-hit economy

Saudi Arabia triples VAT (15%) instead of 5% to support coronavirus-hit economy.

The kingdom first introduced VAT two years ago as part of efforts to cut its reliance on world crude oil markets.

VAT will increase from 5% to 15% as of 1 July, while the cost of living allowance will be suspended from 1 June.

The allowance of 1,000 riyals ($267; 245 euros) per month to state employees was introduced in 2018 to help offset increased financial burdens including VAT and a rise in the price of petrol.

The Covid-19 crisis wiped at least $17 trillion (Dh62.4tn) from stock markets globally and led to governments rolling out over $8tn in stimulus packages, as global trade came to a standstill and countries went into lockdowns.

Oil prices fell more than 60 per cent from January's peak this year. The decline in demand from the outbreak, which brought air and land transportation to a standstill following worldwide lockdowns, resulted in a decline equivalent to losing all of India's energy needs, India has the third highest total primary energy consumption globally after China and the US.

The pandemic has tipped the global economy into a recession, set to be the deepest since the Great Depression of the 1930s, with output shrinking 3% this year.

Hon' PM Narendra Modi Ji to address the nation at 8pm

Our Hon' Prime Minister Shri Narendra Modi Ji will address the nation today 12th May 2020 tonight at 8 PM, and tommorrow also will be interacted with chief ministers on ways to deal with the spread of coronavirus and also boost economic activity.
This will be the prime minister's fifth time address to the nation on Covind-19 including vedio confrence.