Union Bank Of India:
Union Bank of India was inaugurated by Mahatma Gandhi more than eight decades ago. It is a Public Sector Unit with 55.43% Share Capital held by the Government of India.

The Union Bank of India has more than 950 branches and extension counters. It has a large network of approximately 659 ATMs spread across the country. In addition to regular banking facilities, Union Bank of India customers can also avail a variety of other services like Online Tele banking facilities, Cash Management Service, Insurance, Mutual Funds, Demat etc.

A depository receipt is a type of negotiable financial security that is traded on a local stock exchange but represents a security, usually in the form of equity that is issued by a foreign publically listed company.

Income tax is a tax paid to the central government on personal income. It is the direct tax paid on income by an individual or a company/firm within a given financial year. The Indian Income Tax department is governed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance , Government of India.

Detailed information on all types of taxation in India can be found here.

The Income Tax Act, 1961 as amended by Finance Act 2010 , under Section 139 makes it obligatory upon any person to file return if the person’s total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax.

Provided that a person referred to, who is not required to furnish a return under this sub-section and residing in such area as may be specified by notification in the Official Gazette, and who during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or at any time during the previous year fulfils any one of the following conditions, namely:

• is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified; or
• is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or
• has incurred expenditure for himself or any other person on travel to any foreign country; or
• is the holder of a credit card, not being an “add-on” card, issued by any bank or institution; or
• is a member of a club where entrance fee charged is twenty-five thousand rupees or more.

The tax liability to be computed for AY 2012 -2013 is as per the under:-

(i) In case of individuals (other than women and individuals who are of the age of 60 years or more at any time during the financial year 2011-12) -

Income (In Rs.): Tax Liability (In Rs.)

• Upto Rs.1,80,000 : Nil
• Between Rs.1,80,001 – Rs.5,00,000 : 10%
• Between Rs.5,00,001 – Rs.8,00,000 : 20%
• Above Rs.8,00,000 : 30%

(ii) In case of women (other than women who are of the age of 60 years or more at any time during the financial year 2011-12)-

Income (In Rs.) : Tax Liability (In Rs.)

• Upto Rs.1,90,000 : Nil
• Between Rs.1,90,001 – Rs.5,00,000 : 10%
• Between Rs.5,00,001 – Rs.8,00,000 : 20%
• Above Rs.8,00,000 : 30%

(iii) In case of individuals who are of the age between 60 and 80 years at any time during the financial year 2011-12-

Income (In Rs.) : Tax Liability (In Rs.)

• Upto Rs.2,50,000 : Nil
• Between Rs.2,50,001 – Rs.3,00,000 : 10%
• Between Rs.3,00,001 – Rs.5,00,000 : 20%
• Above Rs.5,00,000 : 30%

(iv) In case of individuals who are of the age of 80 years or more at any time during the financial year 2011-12-

Income (In Rs.) : Tax Liability (In Rs.)

• Upto Rs.5,00,000 : Nil
• Between Rs.5,00,001 – Rs.8,00,000 : 20%
• Above Rs.8,00,000 : 30%

Reverse Repo Rate
Reverse repo rate is the rate of interest at which the RBI borrows funds from other banks in the short term . This is done by RBI selling government bonds / securities to banks with the commitment to buy them back at a future date. The banks use the reverse repo facility to deposit their short-term excess funds with the RBI and earn interest on it. RBI can reduce liquidity in the banking system by increasing the rate at which it borrows from banks. Hiking the repo and reverse repo rate ends up reducing the liquidity and pushes up interest rates.
How Reverse Repo Rate Works?

When the RBI increases the Reverse Repo, it means that now the RBI will provide extra interest on the money which it borrows from the banks. An increase in reverse repo rate means that banks earn higher returns by lending to RBI. This indicates a hike in the deposit rates.

Repo rate, or repurchase rate, is the rate at which RBI lends to banks for short periods. This is done by RBI buying government bonds from banks with an agreement to sell them back at a fixed rate. If the RBI wants to make it more expensive for banks to borrow money, it increases the repo rate. Similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate. RBI uses this tool to control the money supply.

How Repo Rate Works?
When RBI reduces the Repo Rate, the banks can borrow more at a lower cost. This contributes to lowering of the rates.

Cash Reserve Ratio

The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India, with reference to the demand and time liabilities (NDTL) to ensure the liquidity and solvency of the Banks.  The CRR is maintained fortnightly average basis.

Demand Note

A Demand Note is a type of  paper money that was first issued between August 1861 and April 1862 during the American Civil War in denominations of 5, 10, and 20 dollars. Demand Notes were the first type of paper money issued by the United States in the sense that they were the first in the series of emissions which has continuously achieved wide circulation down to the present day. The U.S. government placed the Demand Notes into circulation by using them to pay expenses incurred during the Civil War including the salaries of its workers and military personnel.

Promissory Note

A promissory note, referred to as a note payable in accounting, or commonly as just a “note”, is a contract where one party (the maker or issuer) makes an unconditional promise in writing to pay a sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. They differ from IOUs in that they contain a specific promise to pay, rather than simply acknowledging that a debt exists.

Financial Action Task Force (FATF) was founded by the G-7 countries in 1989 to develop and promote national and international policies to combat money laundering and terror financing. The membership of the FATF is limited to 35 countries at present. India has an observer status. India is a member of the Asia-Pacific Group, a FATF-style regional body. Membership of FATF will allow India easy access to real-time information on money laundering and terror financing and help to raise the diplomatic pitch against perpetrators. It will also make India more attractive in the eyes of global investors.

13th Finance Commission
The 13th Finance Commission, which makes recommendations on sharing of tax revenues by the Centre and States, has suggested a new path for fiscal prudence in its report submitted to President Pratibha Devi Singh Patil on December 30, 2009.

The Commission was headed by Vijay Kelkar. Other members of the Commission were B.K. Chaturvedi, Indira Rajaraman, Atul Sarma and Sanjiv Misra.

The recommendations of the 13th Finance Commission, Finance Minister Pranab Mukherjee said “would get reflected in the 2010-11 Budget”.
The report, Kelkar said, dealt with the sharing of tax revenue between the Centre and States, distribution of funds among States and support to local bodies. The Finance Commission report assumes significance in view of the ongoing reforms in indirect and direct taxes, which will have a bearing on the tax collections.