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Indian investments abroad up by 53.2 pc
Yellow metal catches Britons’ fancy
... may lose shine in India
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Tax Advice
Now, Tatas eye cars priced over £1 lakh
FM rules out tax sops for big cars, imported hybrids
Fuel price hike fuels CNG sale
AI has to reduce flights to cut losses, says Patel
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Indian investments abroad up by 53.2 pc
Mumbai, July 20 Total number of proposals, during FY 2008, stood at 2,261, much higher than the 1,817 proposals registered in the previous year, posting a growth of 24.4 per cent, the RBI said. While nearly 35 per cent of the proposals for outward FDI were directed towards Singapore, around 23 per cent of the proposals went to Netherlands followed by British Virgin Islands at 7 per cent, the apex bank said. “Large Indian investments going to countries like Cyprus, Singapore, Netherlands, the UAE, British Virgin Islands and Mauritius reflect the generally liberal policies of these countries, particularly those involving favourable tax treatment and investment protection treaties,” the RBI said. For the quarter ended March, 2008, Singapore, Mauritius, Cyprus and the UAE together accounted for a 50 per cent of the outward proposals on or above $5 million, the Reserve Bank said. Out of the total FDI proposals cleared, almost 95 per cent of the investments had deal amounts on or above $5 million, while during the January-March period, investments of this size amounted to 91 per cent of the total outbound deals, it said. During the year, nearly 43 per cent of the proposals came from the manufacturing followed by non-financial services (11 per cent) and trading (4 per cent), RBI data said. “Within the manufacturing sector, proposals were in the areas like electronic equipment, fertilisers, agricultural and allied products and gems and jewllery," the RBI said. Investment proposals in non-financial services included segments such as telecommunications, medical services, software development services and stock broking while those in trading covered sectors such as textiles, chemicals, readymade garments and petroleum products, it said. Meanwhile, total number of outbound investments in foreign JVs and WOSs, during Q1 FY 2008, declined to $4.634 billion from 666 proposals, against $7.115 billion from 549 proposals in the year-ago period, the RBI said. Inflows from India’s outward FDI amounted to $916 million in FY 2008, posting a 76.7 per cent growth over the previous year’s figure of $518 million, the apex bank said.
— PTI |
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Yellow metal catches Britons’ fancy
London, July 20 Leading gold bullion suppliers BullionVault, ATS Bullion and Baird & Co have all revealed record levels of investment in gold bars, and the World Gold Council (WGC) has reported a big increase in the number of gold coins being bought. But this is changing. “We have seen a rising level of interest in gold as an investment in the UK," said Matthew Graydon of the WGC. “Retail investors have realised that gold offers an effective hedge against currency movements, is an effective inflation hedge, and is a proven safe haven in times of financial turbulence.” David Walker, a gold investor, told The Independent: “Some people thought it was an odd thing to invest in, but there is a great sense of actually owning something... If you put your money in pension funds, it could lose money, if you give it to a fund manager, they might lose it, but having it in gold makes you sleep a lot better at night.”
— IANS |
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New Delhi, July 20 “This week gold prices will witness sideways movement with a bias to the lower side and is likely to go up by about Rs 250. The projected levels of Rs 13,000-13,600 per 10 grams will be mostly driven by the greenback and crude oil,” Karvy Comtrade’s Bhavana Glory said. Gold prices on July 15 touched an all-time high of Rs 13,764 per 10 grams for the August contract on cues from global markets where it peaked to 16-week high of $899.6 an ounce in the Comex. Analysts said gold surged in international markets on the back of higher energy prices and inflation concerns globally. However, crude rates have fallen since then. On the domestic front, the metal prices, in tandem with falling crude prices and softening of US dollar, initially traded weak. However, gold recovered in the later part of the week after remarks by the Federal Bank that it may raise interest rates to curb inflation. This week crude prices is likely add to the shine of gold as oil prices, which had lost almost 11 per cent in the global futures market last week on concerns over weaker economic and a cut in demand, is likely to stabilise, said Religare Commodities Metals and Energy Research in-charge Somnath Dey. Further, the expected decline in manufacturing and services and industrial order from the Euro zone and lower rate of new home sales along with durable goods orders from the US zones would also support for a marginal upswing in gold, Glory added. — PTI
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Pay mediclaim premium in cash, lose rebate
by S.C. Vasudeva Q. Contributions to medical insurance under Section 80D is liberalised from the assessment year 2009-2010. I understand that medical insurance premia paid through any mode other than by cash is eligible (subject to prescribed ceilings) for deduction under Section 80D. If the medical insurance premia is paid by credit card, the same is eligible for deduction under the above section or not? — H.P.S. Iyer, Alaknanda A. Section 80D of the Act provides for the payments of medical insurance by any mode other than cash. In my view, therefore, the payment by credit card should be covered for the purpose of granting the relief under the aforesaid section. IT return
Q. I am working as a chief officer in merchant navy in a foreign company and my salary is deposited in an NRE account in a bank in India in dollars. I am able to maintain a stay of 190 days out of India in one financial year. I would like to know, in this case, am I supposed to file income tax returns or not. I have been serving in merchant navy since 2000, and have not filed the tax returns till now. In case I don't need to file return (provided I am able to maintain a stay of 190 days out of India in one financial year.) Then it’s alright, but if a person of my profile needs to file income tax return, then if I start filing from this year or coming year, how will I show the money I already have in my bank accounts. — Jaspreet Singh, Chandigarh A.
According to the provisions of Section 6 of the Act, an individual is resident in India if he has been in India in the previous year for a period of 182 days or more and he is in India for a period of 60 days (183 days for a person who leaves India for the purpose of employment outside India or leaves India during the previous year as a member of crew of an Indian ship) or more during the previous year and 365 days or more during four years immediately preceding the previous year. Since you have been staying out of India for more than 183 days, your status should be that of a non-resident. However, even in case of a non-resident income, which is received or deemed to be received in India in respect of any previous year, is taxable in India. The facts given in the query indicate that your salary income is being received in India directly. You may, thus, be liable to pay income tax on your salary income in case my presumption is correct. In that case, you will be liable to file income tax returns for the years for which the salary has been received in India. NRO account
Q. Please enlighten me about the following points: (1) Whether there is any lock-in period before the funds received on account of the sales proceeds can be transferred to the US from an NRO bank account? (2) Is there any list of some recognised/empanelled chartered accountants maintained by authorised dealer bank who can give the certificate with regard to the payment of tax due on such capital gains, or, any chartered accountant can issue such certificate? In my case, the bank account is being maintained with HDFC Bank. — Ashok Kumar Mittal, Jind A. The answer to your queries is as under: (i) The remittance of $ 1 million permitted out of NRO account is not with reference to the capital gains earned on the sale of shares. This is a general exemption and, therefore, you can avail of such an exemption without any permission. (ii) The empanelment of chartered accountant would depend upon the concerned bank. The bank, if so desires, can maintain a panel. However, there is no such law which provides for the maintenance of such a panel. Income Tax
Q. I am a senior citizen of above 65 years of age. The following income will accrue to me in 2007-08 (assessment year 2008-09). 1. Annual pension Rs 1,42,356 2. Bank interests Rs 2,80,081 3. NSC interest after maturity Rs 33,534 4. Agricultural Rs 5,58,000 Kindly compute my total income-tax 2007-08 (assessment year 2008-09). I have Rs 1,00,000 in Reliance Life Insurance during 2007-08. Rs 28,442 were deducted at TDS Rs 15,000 depostied as advance tax during 2007-08. — Harmail Singh, Sangrur A.
On the basis of figures given in the query your total income would work out at Rs 9,13,971, including the agricultural income. The tax thereon after giving a rebate in respect of agricultural income would work out at Rs 49,740, excluding interest, if any, payable under Section 234B and 234C of the Act. The tax has been computed after giving the benefit of deduction under Section 80C of the act. The net amount of tax payable after giving relief for TDS and advance Tax paid would work out at Rs 6,298. These tax computations are for the assessment year 2008-09 (financial year 2007-08). |
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Now, Tatas eye cars priced over £1 lakh
London, July 20 “Jaguar and Land Rover, now owned by India’s Tata group, are drawing up a new business strategy that will take both brands upmarket into the £1,00,000-plus pricing territory currently occupied by only a handful of luxury car markets such as Bentley,” a report in the UK daily Financial Times said. Earlier this year, Tata group unveiled its low-cost car Nano, which is expected to hit the Indian roads in next few months, with a base model price of Rs 1 lakh. Compared to Nano, the new models envisaged for Jaguar and Land Rover would be over 85-times more expensive at a price of over £1,00,000 (over Rs 85 lakh). Currently, the most expensive Jaguar model is priced at £80,000, while majority of its models are priced between £25,000-£75,000. For Land Rover, the most expensive model is priced at £72,000, the report said. Tata Motors acquired Jaguar and Land Rover for $2.3 billion in April from the American auto giant Ford Motor. “Both Jaguar and Land Rover, through the Range Rover brand, should be able to produce very credible products to appeal to people in those markets,” The Financial Times quoted David Smith, the CEO of Jaguar and Land Rover, as saying. The report said the cars costing £1,00,000 or more had already proved “a fertile area for Aston Martin and Bentley.” “Bentley sales rose above 10,000 units for the first time last year and Aston Martin expects to cross a similar threshold next year,” the report added. The daily said JLR executives saw much of the potential market for cars priced above £1,00,000 in China, West Asia, Russia and other fast-developing markets. According to the report, in spite of the fuel price and credit crunch-driven downturn in luxury car sales in North America and Europe, Smith expects Jaguar’s global sales this year to remain unchanged at 2007 figure of about 60,000 units, and Land Rover’s at about 2,26,000, driven by robust growth in China and other expanding markets. “It might be down in the US but in China, West Asia and Russia it’s booming. While the market is hard, it is not too hard," Smith said. — PTI
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FM rules out tax sops for big cars, imported hybrids
New Delhi, July 20 He also said there was no scope for reducing duties on imported hybrid vehicles, although the government could consider giving more tax incentives if they were manufactured in India. “We are not giving any tax concessions to big cars because they are fuel in-efficient compared to the small car,” Chidambaram said in an interview. He said the incentives to the small cars were given on the ground that “they are fuel efficient”. The government has been gradually decreasing excise duty on small cars as part of plans to make India a global manufacturing hub. In 2006, the finance minister had cut excise on small cars to 16 per cent from 24 per cent and this year’s Budget had brought it down further to 12 per cent. On the contrary, the government had recently imposed fixed excise duties on big cars. Asked if there were plans to extend tax incentives to imported hybrid cars, Chidambaram said the government would do so only if they were manufactured in India. “Oh yes, we will take a look at hybrid cars when they begin to manufacture them (in India),” he said. “When they manufacture and when the first car is ready to roll out that is when we will take a look at it (granting excise benefits),” Chidambaram added. This year’s Budget cut excise duty on hybrid vehicles to 14 per cent from 24 per cent. The finance minister reasoned that India had a huge automobile base that should encourage them to set up manufacturing bases in order to enjoy tax benefits. “We are not cutting import duties on cars. Why should we? We have a huge automobile base here. Let them come in and manufacture it here,” he said. — PTI
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Fuel price hike fuels CNG sale
New Delhi, July 20 Indraprastha Gas Ltd
(IGL), which runs 163 CNG dispensing stations in Delhi, has seen compressed natural gas
(CNG) sales jump to 13 lakh kg per day from 11 lakh kg before the June 4, when the hike in petrol price was announced by Rs 5 a litre and diesel by Rs 3 per litre. “We have seen surge in vehicles filling at our stations. Nearly 2.25 lakh vehicles are being supplied CNG from our outlets,” IGL managing director Om Narain said. “The number of CNG vehicles in the national capital has grown phenomenally.” During the last two years, Delhi has witnessed a growth of 250 per cent in CNG users in the private segment, indicating the trend that more vehicle-owners are going for cheaper CNG conversion after the hike. One kilogram of CNG in Delhi costs Rs 18.90 as compared to petrol costing Rs 55 a litre. A car run on petrol or diesel gives a running cost of Rs 3.37 per km while the same on CNG costs just Rs 0.91 per
km. CNG turns out to cheaper than even LPG, which costs Rs 36.54 a kg. Car run on auto-LPG consumes Rs 2.7 per km.
— PTI |
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AI has to reduce flights to cut losses, says Patel
Mumbai, July 20 “Some harsh steps are required by Air India. They have to cut down loss-making routes. They could also reduce the expenditures,” Patel told reporters on the sidelines of a function here. All airlines are cutting down on routes, and Air India is also planning similar measures, he said, adding, “there are no directions from his ministry on this issue”. The airlines can look at the excess capacity. But there will be no reduction in connectivity, Patel said. On the issue of a bail-out package to the airline industry in the country, the civil aviation minister said that the government does not give any subsidy or money to any airline. “Airlines don’t get any subsidy or money from the government. They bear the expenses only through their income. As long as these airlines can do so, fine, but if they can’t, then they will have to cut down the routes,” he said. The national carriers’ net loss for 2007-08 is being pegged at Rs 2,144 crore. — PTI
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Investors rushing to capitalise on the recent surge in gold could be in for a surprise as analysts have cautioned that the metal is likely to trim the gains and trade in the range of Rs 13,000-13,600 per 10 grams this week, down by over Rs 700 from the record high it scaled last week.
