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Sunday,
March 9, 2003, Chandigarh, India  
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Govt to go
slow on HPCL, BPCL privatisation PunCom
debate in Budget session LIC gift
on Women’s Day
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In the
wonderland of investment Non-payment
of subsistence allowance
CISF to
guard IGIA
Forex
reserves dip by $2,477m
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Govt to go slow on HPCL, BPCL privatisation
Kolkata, March 8 Speaking as the Chief Guest at the inaugural function of the second World Conference of Oil, Gas and Refinery Trade Unions here, the minister said a status quo in the pattern of equity holdings in the companies would be maintained and a final decision would be taken after the matter was discussed in the House sometime after the Budget session. “I can assure you by quoting what Parliamentary Affairs Minister Sushma Swaraj had said in the House few days ago that the characters of HPCL and BPCL would be maintained until the issue was taken up and debated in the Lok Sabha,” he said. Mr Naik said the proposal for divesting government equities in the two public sector oil companies had already been discussed in the Rajaya Sabha but the issue was yet to be taken up the in Lok Sabha. “The Budget session of Parliament is now on. The issue will be raised in the Lok Sabha some time after the current session,” he later told reporters. The minister, however, declined to elaborate on the subject saying it would be against Parliamentary etiquette when the House was on session. He also evaded questions whether the Government was inclined to rethink the issue or what it was aiming at.” I have merely quoted the Parliamentary Affairs Minister and do not have anything more to say”, he said. Earlier, speaking on the occasion, the minister lauded the performance of the public sector oil companies and described them as the best among the 200-odd PSUs in the country. “Out of 12 PSUs in the oil sector, five are Navaratna companies and the performance of others are very well. In fact, 11 best working PSUs in the country are from the oil sector”, he said.
UNI
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PunCom debate in Budget session Chandigarh, March 8 The union leaders of different departments, at an informal meeting held here today, decided to relaunch their agitation against the government’s proposal to disinvest five companies, including Punjab Tractors, Punjab Alkalies, Conware and the PTDC. They have decided to approach opposition parties and some MLAs of the ruling party to raise the issue in the coming Budget session. They are expecting that since 50 per cent of the employees have already taken VRS, the company can be revived by taking some loans from the market. Incidentally, the Punjab Government rejected Shyam Telecommunications’ bid yesterday for 69.4 per cent share of Punjab Electronics and Production Corporation Limited due to lower price of the bid. Though Videocon, HFCL, Bharat Hotels, Reliance Infocom and Motorala had expressed interest in the company, yet after signing ‘confidentiality agreement’ with the Directorate of Disinvestment, Punjab, these firms did not submit financial bids. The sources said since after looking into the balancesheet and financial records of the company, they had expressed doubts about the long-term financial viability of the company. However, the officials declined to comment upon the bid price or the reserve price.
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LIC gift on Women’s Day
Chandigarh, March 8 The policyholder will also be entitled to a pension plan after the maturity of the policy after 15-20 years, LIC Senior Divisional Manager Tejinder Singh, said in a press statement. The policyholder will get tax rebate under Section 88 of the Income Tax Act and the amount paid during the time of maturity is also exempted, he said. The plan is available for women in the age group of 18-50 years for a sum assured of minimum Rs 50,000 and a maximum Rs 25 lakh. Under Jeevan Bharati, the policyholder will be paid back 20 per cent of the sum assured amount after every five years. The plan covers critical illness like cancers in any part of breast, ovary or fallopian tube for a maximum amount of Rs 1 lakh. Apart from these, the plan also offers accidental and disability benefits up to Rs 25 lakh.
TNS
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In the wonderland of investment Q:
I have a doubt regarding tax exemption on interest and principal payment on housing loan. I have availed housing loan in 1985 of Rs 1,25,000 from bank for purchase of a flat. In April, 2001, again I have availed additional housing loan of Rs 2,14,000 for renovation of the flat. Whether I can claim tax exemption on interest and principal payment on both housing loans? Mrs Suvarna Shenoy A: The deduction of Rs 30,000 is available on interest on capital borrowed for acquiring, constructing repairing, renewing or reconstructing, whereas the enhanced limit of Rs 1,50,000 is applicable on loans taken on or after 1.4.99 for only acquisition or construction. Moreover the process of acquisition or construction should be completed within 3 years from the end of the year in which the capital was borrowed. The Budget-03 proposes to waive off the requirement of completion. In your case, the ceiling on combined loans will be Rs 30,000 only. The rebate for principal repaid u/s 88 can be claimed only for first loan. The loan taken for purchase or construction (not for renovation) of a house is only eligible. The ceiling is Rs 20,000 within the overall ceiling of Rs 70,000 u/s 88.
Q:
We have opened one NRO account in the name of Mr Avinash Kumar and he had given one cheque for INR 1000 from his existing Bank of India account. But RBI auditors have pointed out that NRO a/c opening with a local fund is not in order. Please clarify. Thomas D’Souza A: I do appreciate the stand taken by the auditors. When a person becomes a resident outside India, he is required to inform all banks wherever he has accounts about the change of his residential status. On receiving this information, the banks are required to redesignate the accounts as NRO. Therefore, Mr Avinash Kumar cannot possess the existing Bank of India account, leave alone issuing a cheque of Rs 1,000 to open an NRO account.
Q:
I was in service of a PSU from 23.1.1998 and superannuated (retired) on 31.8.2002 on attaining the age of 58 years. After my retirement I didn/t withdraw the accumulated provident fund money but continued to retain the same with the employer. Now, even after 5 years are over I have decided not to withdraw it since I have been getting good interest rate thereon. In hope this is tax-free in my hands. Since my total service was less than 5 years (I was not working anywhere else) please advise about the taxability of the PF. I have a beneficiary of their Superannuation Scheme also. Kindly comment about its taxability. B. Mukherjee, Kolkata A: According to Rule 8 of Part A of the Fourth Schedule of the ITA, the accumulated balance due and becoming payable to an employee participating in Recognised Provident Fund shall be excluded from the computation of total income. The accumulated balance will lose the exemption from tax unless the employee renders continuous service with his employer for five years or more unless the service has been terminated by reason of the employee’s ill-health, or by the contraction or discontinuance of the employer’s business or other cause beyond the control of the employee. You were forced to leave the service on reaching the age of superannuation and this, in my opinion, was a cause beyond your control. Therefore, I strongly feel that you are entitled to the exemption. The fact that the money in the fund was withdrawn by you after 5 years is inconsequential. On the other hand, the only restriction on Superannuation Fund (SAF) is that any excess over 27% of salary contributed by the employer to PF and SAF put together will not be allowed as deduction. You will earn full benefit of the SAF. The taxability of interest on PF corpus after your retirement is not free from doubt. Some experts feel that the above quoted Rule specificially deals with those situations under which the balance in the PF will be taxable. Accordingly, only contributions made by the employer in excess of 12% of the salary of the employee and interest earned in excess of 12% p.a., is taxable. Taxing the interest earned (after retirement) on the accumulated PF balance is clearly not envisaged. Therefore, such interest would continue to be exempt. Some others feel that the interest earned after retirement on the accumulated balance will be fully taxable as per the provisions of Sec. 10(12) which grants the exemption to “... the accumulated balance becoming due and payable to the employee...” The balance becomes “due and payable” upon retirement and any interest earned thereafter may not be eligible for the exemption. Though not an expert myself, I do not agree with the latter view. After resignation or retirement, an individual can get another job and can transfer his provident fund to the next employer. It does not become due and payable unless he applies for withdrawal. A CBDT clarification is necessary
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Non-payment of subsistence allowance Q: Whether non-payment of subsistence allowance amounts to denial of reasonable opportunity to deliquent? Ans: In state of Punjab v R.K. Sharma, the S.C. was opinion: thus: [2003-I-LLJ-485]. The appeal is directed against the judgement of P&H, H.C. in second appeal. By the impugned, judgement of the first appellate court was reversed and that of the trial court was restored. The suit in question had been filed assailing an order of dismissal passed by the employer in a disciplinary proceedings after holding an enquiry and on coming to a conclusion that the charges against the deliquent have been established. The trial court came to the conclusion that the enquiry is vitiated on account of non-furnishing the report to the enquiry to the deliquent. He also came to the conclusion that there has been a denial of opportunity to the deliquent in as much as the subsistence allowance had not been paid. On appeal by the State Government both the conclusion s were set aside and the suit was dismissed. Or a second appeal being carried by the delinquent, the H.C. relying upon an unamended rule of the service rule came to hold that non-furnishing of report vitiates the entire proceedings notwithstanding the judgement of this court in Ramzan case (1991-I-LLJ 29) holding that the judgement would apply prospectively. Obviously, in the opinion of the S.C., the H.C. committed an error in relying upon the aforesaid unamended rule and the respondent too fairly conceded to the aforesaid position. The H.C. however, on the second ground came to hold that non-payment of the subsistence allowance would tantamount to denial of a reasonable opportunity to the deliquent to defend himself in the enquiry proceedings. Even if the conclusion of the H.C. on the question of non-supply of enquiry report initiating the proceedings cannot be sustained, added the S.C. in as much as there was non-payment of subsistence allowance, it certainly would tantamount to denial of a reasonable opportunity. Therefore, the S.C. held that there was no infirmity with the ultimate Judgement of the H.C. requiring interference of this court U/A 186 of the constitution. Necessarily, therefore, the suit has to be decreed. But having regard to the facts and circumstances of the case the respondent deliquent would not be entitled to any wages from the date of the suit till the judgement of the H.C. and would only be entitled to the wages from the date of the judgement of the H.C. That way, the S.C. dismissed the appeal with the aforesaid modification.
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by K.R. Wadhwaney CISF to guard IGIA The baton for security at the Indira Gandhi International Airport (IGIA) will change hands from the Delhi police to the Central Industrial Security Force (CISF) from early next month. Aviation experts believe that this will streamline the functioning considerably. At least 1000 CISF men have been trained on various subjects like polite behaviour and etiquette, in addition to methodology to guard the airport. Apart from the IGIA at Delhi, the CISF will man another 44 airports in the country. The change over from the police to the CISF will increase the security expenditure of the Airport Authority of India. For the time being, the huge expenditure may not hurt the AAI much since it has enormous reserves in its kitty. But in the long run, it will be difficult for the AAI to incur expenditure on the CISF because only nine airports are showing profits, while other airports are incurring losses. In all, there are more than 150 airports in the country. AAI officialdom is of the view that the airlines using airports should chip in for security because security should be the concern of every agency and not of the AAI only. Airline officials, however, feel that they pay enough to the AAI for parking, landing and the utilisation of buildings and any for additional expenditure will be counter-productive to the airlines. What is causing further concern to the AAI is that three airlines — Alliance Air, Indian Airlines and Air India — delay in making payments due from them. |
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Forex reserves dip by $2,477m Mumbai,
March 8 The
foreign currency assets of the country fell by $2,514 million at $
69,148 million during the period under review, according to RBI’s
weekly statistical supplement released here today. PTI
Syndicate
Bank’s sops to women Bangalore:
To mark the International Women’s
Day, Syndicate Bank has announced the waiver of service charges on fresh
vehicle and consumer durable loans availed by women under the “Synd
Vahan” and “Synd Suvidha” schemes with effect from today till
March 31, 2004. It will also offer a concessional interest rate of 0.5
per cent below the applicable rate on its fresh loans availed by women
under both schemes during this period, a bank statement said here. PTI
BSNL mobile service in Gohana Sonepat:
BSNL has decided to introduce
mobile phone service from March 10 at Gohana telephone exchange in this
district. Mr R.C. Hooda, General Manager of Sonepat district of the
Nigam, told mediapersons here today that the booking of CellOne and
Excel would also be started. PTI
14-day remand for Pendse New
Delhi:
Former Managing Director of Tata Finance Limited (TFL) D.S.Pendse,
arrested in connection with his alleged involvement in the
misappropriation of around Rs 2 crore in group company, was today
remanded to 14 days judicial custody by a Delhi court. PTI
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Mastek BPO Potato export Connect World Birla Sun Life Silicon wafers Appeal on VAT Gold plunges Overdraft for J&K IT growth |
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Software
exports from Bangalore touch an all- time high of 12,000 crore
rupees for the financial year 2002-2003.
(
