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ADAE fires salvo at Mukesh
Mukesh hits back
RIL to buy stake in Colombian oil block
OneIndia plan to slash BSNL tariff
VW team meets Amarinder
Market Scan
It’s time for Vikas WSP to be put under SEBI scanner
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Standard deduction up to Rs 15,000 permissible under family pension
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ADAE fires salvo at Mukesh
Mumbai, February 5 In a frontal attack on his elder brother and the companies owned by him, Anil's confidant Satish Seth in a four-page statement accused RIL of "violating the letter and spirit of the overall settlement reached on June 18, 2005" after protracted efforts by their mother Kokilaben and other family members. Seth, who did not take any question while reading the statement on behalf of Anil Dhirubhai Ambani Group, said "despite formal documentations being agreed and exchanged between the parties, a deliberate and criminal attempt was made yesterday to frustrate and prevent the transfer of such shareholdings of Reliance-ADAG at a mutually agreed time". Referring to the agreement reached between the two brothers with the approval of Kokilaben, Seth said "unfortunately, despite the lapse of this inordinately long period of time, Mukesh Ambani and Reliance Industries Ltd have not completed any of the major activities required to implement the overall settlement." The statement came within hours of Mukesh's top executive Sandip Tondon, Chairman of the four new companies carved out of RIL for transfer to ADAG, stating that Reliance Industries had completed the mammoth exercise of allotment of shares of four new companies and once the listing of the same was done, these would be handed over to Anil Ambani. As per the scheme of arrangement approved by the Bombay High Court, RIL had to enter into several agreements with the Reliance-ADAG companies on gas supply, non-compete and brand agreements, Seth said adding "these agreements have shockingly been executed while the four Reliance ADAG companies are still under RIL control." Accusing RIL of "acting against the interest of 22 lakh Reliance shareholders and to their detriment", he said, "the course of action so adopted by RIL is a mockery of all fundamental principles of propriety, conflict of interest, transparency, fairness and corporate governance." Seth said the four companies — RNRL, Reliance Energy Ventures Ltd, Reliance Communications Ltd and Reliance Capital Ventures Ltd — had not yet been transferred and "RIL's stance in delaying the listing of all four companies has resulted in incorrect, incomplete and misleading information being communicated to the BSE and NSE."
RIL’s rebuttal
Meanwhile, RIL said today the media statement released by Mr J.P. Chalasani, one of the Directors of Reliance Natural Resources Ltd (RNRL) on the gas supply agreement executed between RIL and RNRL is a ‘’deliberate attempt to mislead’’ the public in general and shareholders of RNRL and RIL in particular. In reply to Mr Chalasani’s statement issued by Anil Dhirubhai Ambani Enterprise (ADAE), an RIL statement stated that the Board of RIL had proposed the scheme of arrangement for demerger of RIL’s businesses, including the gas-based energy undertaking, being conscious of the fact that a suitable agreement would be executed with the gas-based resulting company, RNRL, for supply of gas for the power projects of Reliance Patalganga Power and Reliance Energy. The agreement was accordingly an ingredient of the scheme of demerger as envisaged by the RIL Board and the board decided the suitability of the agreement.
— Agencies
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Mukesh hits back Kolkata: Under attack from Anil Ambani for "unfairly" delaying the settlement on Reliance empire, elder brother Mukesh Ambani group today retaliated and accused the other side for the delay. Dismissing allegations by Anil Ambani camp, the Mukesh Ambani-controlled Reliance Industries Limited said it was the other side which was delaying the transfer of the demerged entities. Reacting to the statement by Anil's confidant Satish Seth in Mumbai, the Chairman of the four demerged entities, Mr Sandip Tandon, said, "we will be happy to hand over the companies tomorrow, we don't want on to cling on to these companies." When his attention was drawn to the allegations made in the statement, he said "I deny all the allegations. It was the Anil camp which was pressing for delayed listing, especially of Reliance Communication Ventures Ltd." "As far as we are concerned we have completed all formalities for listing of three companies —Reliance Capital Ventures Limited, Reliance Energy Ventures Limited and Reliance Natural Resources Ltd — and if tomorrow these companies are listed we will hand over them to Anil Ambani," he said. — PTI
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RIL to buy stake in Colombian oil block
New Delhi, February 5 “The company is likely to farm into Ecopetrol’s San Gabriel block this month,” a source close to the transaction said. Ecopetrol holds 100 per cent interest in 346,867 hectare exploration block in the Upper Valley basin and has offered between a 26 and 30 per cent stake to the Indian firm. The company has a 25 per cent stake in Calvalley Petroleum- operated block 9 in Yemen, which began producing oil at the rate of around 2,000 barrels per day on December 12, 2005.
— PTI
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OneIndia plan to slash BSNL tariff
New Delhi, February 5 The tariffs that are expected to be announced sometime next week will be part of the government's much-hyped OneIndia plan, that offers one rate for calls to anywhere in the country. The state-owned operator will go in for a simplistic tariff structure that will not confuse subscribers. He said whatever is the cheapest (local calls up to 50 km slab) should not be touched, but admitted that ushering in an uniform STD rate will be tricky.
— UNI
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VW team meets Amarinder
Chandigarh, February 5 The government sources said, offered concessions and incentives to the company proportionate to employment generated by it.
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by S.C. Vasudeva
Standard deduction up to Rs 15,000
Q My queries are as under:
(a) For a senior citizen and retired government servant, how do we calculate I.T. How much it would be for assessment year 2006-07, financial year 2005-06? Total income from all sources Rs 3,50,000 Saving in PPF and funds Rs 1,00,000, Rs 70,000 and Rs 30,000 (b) Whether Standard deduction on family pension is also not admissible now for the assessment year 2006-07? (c) Whether sectoral caps have been removed or not particularly from PPF of Rs 70,000 for assessment year 2006-07? — Punit Soni A The answers to your queries are as under: (a) For the assessment year 2006-07, the senior citizens who are resident in India are placed in a separate slab which is as under According to the above slabs, the tax on the basis of figures given by you would be Rs 13,000 on a total income of Rs 2,50,000 (i.e. 2,50,000 - 1,00,000 being the maximum amount of deduction permissible under Section 80C of the Act). The above amount of Rs 13,000 will have to be increased by additional surcharge (education cess) @ 2 pc thereof. The total tax payable would thus be Rs 13,260. (b) Yes, a standard deduction of 33.33 pc subject to a maximum amount of Rs 15,000 is allowable under Section 57 of the Act in respect of the income in the nature of family pension. (c) There are no sectoral caps for deduction allowable under Section 80C of the Act. However, the deposit in respect of Public Provident Fund is restricted to Rs 70,000 only in view of PPF Rules not having been changed.
Senior citizens Q. The persons above 60 are eligible for benefits in National Policy of older persons vide notification 3/3/2002-855/693 dated 24.08.2004, Government of Punjab. Are the persons above 60 eligible for income tax relief for senior citizens in financial year 2005-06. — N.S. Sidhu, Bathinda A The Income Tax Act 1961 (the Act) provides that a person who is resident in India and is of the age of 65 years or more shall be considered as senior citizen for the purpose of grant of tax benefit.
Interest on NSCs Q Earlier, the annual accrual interest (automatically re-invested) earned by National Saving Certificates was counted as investment for rebate u/s 88. Now, Section 80C has replaced Section 88. Is the annual accrual interest earned by NSC is counted as investment under Section 80C; alongwith PPF, LIC premium etc? — P.L. Banati, Hisar A The accrued interest on National Savings Certificates would be taken into account for allowing deduction under Section 80C of the Act.
Deduction on donations Q I am a government servant with gross annual income of Rs 1,80,000 approx. I am donating Rs 500 per month to a charitable hospital. The donations to this hospital are exempted from tax under Section 80G. My question is: Can I claim exemption directly by not paying tax or I have to pay tax and then claim refund for the above mentioned donation from the Income-Tax department? — Harmeek Singh A The deduction in respect of donations paid to a charitable hospital, which donations are exempt under section 80G of the Act, can be claimed in the income-tax return only. Therefore, you will have to file the return and claim the deduction of the amount paid as donation in the said return. The tax on the returned income would be payable after deducting the rebate allowable under Section 80G of the Act. I may add that you will have to attach with the return of income, the receipts for the amount paid towards the donation.
Tax & capital gains Q I purchased residential flat under self-financing scheme from Housing Board in 1992 and paid Rs 5,12,843 as detailed below: Rs 24,000/- 25.03.1992 Application money Rs 50,000/- 30.11.1992 Registration money Rs 80,000/- 1 0.05.1993 Ist half yearly instalment Rs 80,000/- 10.11.1993 IInd half yearly instalment Rs 50,000/- 10.05.1994 IIIrd half yearly instalment Rs 97,279/- 15.09.1994 On possession of flat Rs 1,22,904/- 10.10.1994 to 10.09.1997 On monthly basis for 36 months @ Rs 3,414/- p.m. Rs 8,660/- Ground rent up to June 2005 (i) Since I have put the flat for sale, please advise how to calculate long-term capital gain. (ii) I have purchased a shop-cum-office in government auction. Please advise whether capital gain earned on sale of above flat and invested in the purchase of shop-cum-office will be exempt from long-term capital gain tax if so under which section. — Joginder Pal Singh, Amritsar A The answers to your queries are as under: (i) The details given by you in your letter do not indicate whether the amount of Rs 1,22,904 has been paid towards the cost of flat. Presuming that the same has been paid towards the cost of the flat, the amount of Rs 5,04,183 will have to be indexed. The Act does not provide for the indexation of instalments. However, it may be possible to argue that the instalments having been paid towards the cost of the flat, should be allowed to be indexed. If you are prepared to take this position with the department i.e. for the indexation of the instalments, each of the instalment towards the cost will have to be indexed on the basis of the applicable rate for that year and the total cost will have to be arrived at on the said basis. In case you decide not to contest the above position, the amount of Rs 5,04,183 will be indexed by taking the cost inflation index applicable for financial year 1997-98 (331) as the base year. The applicable rate for financial year 2005-06 is 497. The total cost on this basis would be Rs. 5,04,183 X 497 / 331 = 75,70,361. I may add that ground rent of Rs 8,660 would not form part of cost. The amount so computed will be deducted from the sale price and the balance would be the capital gain which would be liable to tax. (ii) The capital gain earned on the sale of a residential house can be utilised for the purposes of acquisition of a residential house within the prescribed time. The benefit of exemption would not be available in case capital gain is invested in the acquisition of shop-cum-office.
IT return Q. I am working as IT consultant in an Indian software company in Delhi. I came to the UK on January 9, 2005 on deputation and will be here till Feb 2006. I have not filed income tax return for year 2004-2005. Kindly let me know the last date for filing IT return in my case? Also, if the date was July 31, 2005, how much I have to pay as penalty. — Amitabh Tiwari A The last date of filing the return for assessment year 2005-06 relevant to the financial year 2004-05 was July 31, 2005. However, you can file your return up to March 31, 2006. The maximum penalty leviable for delay in filing the return is Rs 5,000. The said penalty is leviable in case the return is not filed before the end of the relevant assessment year i.e. before March 31, 2006 in your case. |
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