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Aviation
Notes
Hero Honda impasse ends
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Moody’s bags 49 pc stake in Chinese firm
CLB seeks details of Zee pact on Hindi daily
INVESTOR GUIDANCE
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Aviation
Notes
The appeal is timely as aviation and tourism sectors in the northern region are on a firm take-off. The domestic carriers, particularly no-frill airlines, will be beneficiaries. The flow of traffic without any directional imbalance will turn them cashrich as Punjab is all geared up to become a film city and also an entertainment hub. Many travel agents and film industry bigwigs, belonging to northern region, have time and again reiterated that they would prefer to have studios in quiet and easily accessible environs of a city like Chandigarh instead of operating from overcrowded Mumbai and Delhi, where transportation is now hazard. For once, analysts are wearing optimistic outlook as aviation authorities have shown wisdom in upgrading regional airports instead of putting all eggs in Mumbai and Delhi baskets. Change is the essence of life and, with change, progress in vital segments of aviation and tourism is assured. When the skies were thrown open in 1992, one Raj Airways started flights between Chandigarh and Mumbai. The exercise was a success. But, for some unexplained reasons, the airline folded up for reasons other than load-factor. Indian, however, continues to operate the flight on this golden route but via Delhi. This is not readily acceptable to stars and producers who believe in quick flow because, to them, time is money. Spurred by NRIs (non-resident Indians) for their active participation and support to upgrade northern region, one-day international summit will be held at Mumbai on April 22 to evaluate the situation and also strengthen the infrastructure developments. The spiritual and medical tourism are said to have gained a foothold in Amritsar. Now, there is air emphasis on cinematic and golf tourism. The overall scene, according to industry officials, is rosy. The cause for happiness in aviation sector is that the Minister of State for Civil Aviation Praful Patel and the civil aviation ministry have at long last realised that the Airports Authority of India (AAI) needs complete over-hauling. In the new aviation policy, about to be made public, the role of the AAI will be far different from what is at present. |
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Hero Honda impasse ends
Gurgaon, April 15 The Deputy Commissioner, Gurgaon, Mr R.P.Bhardwaj, the Management of Hero Honda Motors and the CITU’s district chief, Mr Subash Dewan, stated about calling off the strike in separate statements. While the management in a short statement said that the impasse has been amicably resolved, the contractors and the district administration stated that the management has assured the workers on sympathetic consideration to all reasonable demands. The breakthrough was achieved post- midnight after a series of talks between the management and the workers.
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Joshi Auto bags 4 awards
Chandigarh, April 15 With these awards, Joshi Autozone, which commands a market share of over 42 per cent in tricity of Chandigarh, Panchkula and Mohali, has reached a tally of 33. Mr Jagdish Khattar, Managing Director, Maruti Udyog Ltd, presented the awards to the directors of dealership at a glittering ceremony. Joshi Autozone has become Maruti’s first and the only dealer to bag all-India number one position in sales satisfaction index, fourth year in a row.
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Moody’s bags 49 pc stake in Chinese firm
Beijing, April 15 CCXI said that it would be turned into a joint venture between Moody’s and its parent company, the China Cheng Xin Credit Management Co Ltd (CCXCM). The latter will hold a 51 pc stake in CCXI. Terms of the transaction were not disclosed. CCXI is one of the first domestic credit rating agencies in China. It specialises in providing rating opinions on corporate bonds, convertible bonds, financial institutions, structured finance and short term financing paper.
— PTI
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CLB seeks details of Zee pact on Hindi daily
New Delhi, April 15 Zee, through Media West is funding the minority promoter, Ajay Aggarwal, to acquire the majority stake of the Maheswari Brothers who hold 65 pc in the Hindi daily. On Wednesday, Ajay Aggarwal, petitioner in this case, has submitted an affidavit as per the directions of the Bench giving some details of the MoU. According to the MoU, a merchant banker, in principle, has expressed willingness to fund up to 60 per cent of the acquisition cost provided the Aggarwal family could get the other financier (Media West) to fund the acquisition cost up to the 40 per cent (Rs 101 crore) payment. However, the counsel for the Maheswari Brothers raised objections to this and alleged that it was against the order of the CLB, which had directed that the ownership of the company should remain within the two families. However, the counsel for the Aggarwal family dismissed it and claimed that the shares have been deposited in the escrow account. They also alleged that Maheshwaris are curtailing their powers in the name of corporate restructuring. Before this on April 4, CLB chairman S Balasubramanian had given a go-ahead in the deal rejecting Maheswari's contentions and directed the Aggarwal's to submit an affidavit containing the MoU terms.The CLB directed the petitioners to disclose full MoU in an affidavit and listed the matter for April 27.
— PTI
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INVESTOR GUIDANCE Q: I trade in sale and purchase of shares for myself online. In the light of the recent amendments to the definition of the term “speculative transactions”, kindly clarify how profits from trading in futures derivative will be taxed? In case where trading is done by paying only margin money, will the entire contract value be included in the turnover for determining whether tax audit u/s 44AB is required? In FY year 2005-06, my cash (delivery-based) sales of shares are approx Rs 15 lakh. In case of futures derivatives, my turnover (sales + purchases) is approximately Rs 5 crore (under margin trading). Will I have to maintain books of accounts and whether tax audit is a must? — Anil Soni A: FA05 inserted Sec. 43(5d) to clarify that a transaction in derivatives carried out in a recognised stock exchange in India would not be treated as a speculative transaction. Consequently, it can be treated as a business income or short-term capital gains. In my opinion, it would be treated as a business income. As regards audit, there is no clarity on the issue. I personally feel that it would be harsh on the assessee to consider the total of the contract values as the turnover, both in the case of F&O and shares. NRI and PIO Q: I am of Indian origin settled in USA. Till last year I was on Green Card and few months back I am in receipt of Citizenship of USA. Then, I had applied for OCI Certificate also, which I am granted. Now, my questions are as follows: 1) Would I be considered as NRI? 2 What would happen to my NRE account? 3) What would be my status and tax liabilities from next FY onwards? 4) I am Karta of an HUF too, should I continue it or what? Kindly guide me in this regard, also, highlight the point which I should take care of. — S. R. Mittal A: The point by point answer to your queries are 1. You were so far an NRI and now you will be a PIO. However, the rights and obligations of an NRI and a PIO are largely the same. 2. Your NRE account can be continued just the same 3. Nothing changes so far as your status and tax liabilities are concerned. 4. You may continue your HUF if you choose to. Income from property Q: I had purchased a flat in Mumbai and we get possession of flat in April 2007. For that I had taken loan amount of 15 lakh for 20 years from bank on variable rate of interest. I am salaried employee. I had taken room for rent of 7,000 p.m. For tax deduction claim, I had showed HRA of Rs 7,000 pm for whole year. I am paying EMI of home loan of amount Rs. 12,315 so that total principal component is 70,000 and interest component is Rs 33,000. I had also made Rs 5 lakh as part pre-payment. So I want to know whether we can claim in tax deduction on principal component of loan as EMI and part repayment paid in current financial. — B.P. Tripathi A: The deduction u/s 80C and the interest u/s 24 are allowed only when the income from house property becomes chargeable to tax. In other words, the construction should be complete, the flat should be ready for occupation and the municipal annual value is known. The interest for the years prior to the year in which the property was completed, shall be deducted in equal instalments for the year during which it was completed and each of the four immediately succeeding years. Unfortunately, there is no corresponding provision for the capital repayment. Rebate on renovation Q: My wife had purchased a 75 sq. ft. yard in 1998, which was constructed by her & she has purchased an adjoining 75 sq. ft. yard plot in 2003, which is lying vacant. I would like to construct/enlarge/add/alter the house & would like to go in for borrowing from some housing finance company. I would like to know whether I would be able to claim deduction of interest payable to housing company. If not, can I get the land on lease from wife and then construct/enlarge/add/alter so that I am able to claim interest payable by me as a deduction from my total income. — S. Kumar A: The tax concessions on housing loan can be availed only by the person who owns the house. Yes, you can get the land leased to you or purchased by you and thereafter, take a loan for construction of a house. It will not be possible to claim any benefit for renovation or expansion of the house in the wife’s name. Negative salary Q: I am a salaried employee. Recently I left an organisation and joined another. I was unable to serve the notice period so I had to pay them. I am getting the reimbursement from my new company, which they will give me along with my salary income. My new company will show it as an income for me in Form-16 and will deduct tax. The implication is that I had to pay tax on this additional amount. But I will be giving this amount to my old company. Please let me know will I be taxed on this amount or I can claim refund from IT department? — Sachin Chandra A: What the employee is returning to the employer cannot come under the head ‘salaries’ since he is not the employer’s employer. This amount represents application of his income and therefore, it is not deductible. He has merely applied this income to discharge a liability and therefore, it is not tax deductible. There is another view that can be submitted. The salary earned flows out of the contract between employee and employer and so is the penalty paid for early release. Therefore, it can be viewed as a negative salary. In such ambiguous cases, the TDS is always applied on the safe side leaving the employee to claim the excess TDS, if any, through filing the returns. The first view expressed above is accepted by almost all accountants. The amount given to you by your new employer is definitely your salary and will be taxed accordingly. A clarification from CBDT is necessary. Offsetting loss Q: I am salaried person and would like to know, can I offset my short-term non-delivery based loss against short-term delivery-based profit? And do I have to inform my employers’ CA, the resulting amount to be mentioned in Form 16 or can I directly pay tax while filing returns? — Somanath Bhatia A: The loss from speculative transactions cannot be offset against normal capital gains. You can inform the employer regarding this income as per the requirement. The author may be contacted at wonderlandconsultants@yahoo.com
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