The Tribune, Chandigarh, India

	India's growth helping global economic recovery: WB New Delhi, January 9 Describing India as a global player and rising economic power, World Bank President Robert Zoellick has said the high level of growth in the country is helping the international economy recover from the crippling effects of recent financial turmoil. "India's return to high levels of growth is helping the global economy recover from the crisis," said Zoellick, who is scheduled to arrive in the country tomorrow on a four-day visit aimed at strengthening cooperation between the multilateral lender and Asia's second-fastest growing economy. India, he further said, "is a player on the global stage. The country's status as a rising economic power is closely connected with how it manages this next phase of growth, balancing rapid development with the environment and most importantly, the need to ensure all people have opportunity." As per a World Bank release, Zoellick will meet Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee and Planning Commission Deputy Chairman Montek Singh Ahluwalia during the trip. He will also visit Bihar. Having witnessed a slowdown in growth in the wake of the global financial crisis, India's growth rate picked up to 7.4 per cent in 2009-10 from 6.7 per cent a year ago. The economy expanded by 8.9 per cent in the first half of the current fiscal, making India one of the fastest growing economies in the world. According to the International Monetary Fund's (IMF) projections, the Indian economy is expected to record a growth rate of 8.8 per cent in 2010-11. Zoellick's discussions with the Prime Minister and government will also cover cooperation on global issues, including preparations for the upcoming G-20 meetings. During his visit, the World Bank President will sign agreements for two new projects in the road and disaster management sectors, as well as meet private sector representatives, self-employed women's associations and urban and water experts. The World Bank Group significantly boosted the support extended to India last year to help offset the impact of the global financial crisis. The Bank Group committed a record $11.1 billion to India during 2009-10. — PTI
	PNB registers turnover of Rs 5 lakh crore Jangveer Singh Tribune News Service Chandigarh, January 9 Punjab National Bank has reached a milestone of achieving a total business of Rs 5,00,000 crore as on December 31, 2010, despite severe shortage of staff and the government policies which are hindering the growth of nationalised banks in the country. Sharing their views with mediapersons during an interaction here today on the sidelines of the Joint Triennial Conference for Chandigarh, Hisar and Kurukshetra circles organised by the All India Punjab National Bank Officers’ Association Chandigarh, Pardeep Kumar and MP Singh, directors on the Board of PNB representing officers and workmen, respectively, said a major credit for this performance goes to the employees of the bank. They said the bank was on course to achieve its target of generating Rs 10,00,000 crore business by 2013. Underlining the need for filing up vacancies and upgrading infrastructure at the earliest, they felt that shortage of staff was the biggest hurdle in the way of restricting the working hours of bank employees and introducing five-day week in banks. A further shortage was looming large with 20 per cent of the total staff strength in the bank of 54,000 set to retire in the coming two-three years, they added. They opposed the recommendation of the Khandelwal Committee for increasing the retirement age of bank employees from 60 years to 62 years, arguing that it will adversely impact the promotion avenues of the younger staff. Pradeep Kumar and MP Singh said though appointment letters were being issued to 2,000 new officers and workmen recruits in stages, many of the new recruits were reluctant to join for various reasons. Out of the 455 appointment letters issued so far less than 200 recruits had joined the bank. Showing concern over the increasing non-performing assets (NPAs), they said steps were being taken by the bank to arrest the trend. Over 1,200 officers attended the conference from the states of Punjab, Haryana, Jammu and Kashmir and Himachal Pradesh. Office-bearers and delegates from these states also participated. AK Gupta, Field General Manager, PNB, Chandigarh, who was the chief guest, informed the gathering that 15 more general managers were being inducted into the bank, which would substantially open up promotion opportunities for the staff. K.D. Khera, general secretary, AIPNBOA informed participants of various issues concerning employees like cashless system for employees at approved multi-specialty hospitals in each city, increase in quantum of Health Check up allowance and improvement in quantitative limits in Hospitalisation Schemes. P.R. Mehta, general secretary, All India Bank Employees Federation, drew attention of the bank management to the need for recruitment to specialised cadres on priority.
	Citi fraud: I-T Dept may probe source of funds Gurgaon, January 9 The Income Tax Department may conduct a probe of its own into the Rs 400 crore fraud exposed at Citibank's Gurgaon branch to ascertain if black money found its way into the ponzi scheme designed by Relationship Manager Shivraj Puri. "The department may look into the matter to find out if unaccounted money was routed to the stock market or elsewhere with the help of the accused," sources said. However, the Income Tax Department is yet to initiate action on the fraud, which at present only covers the investment made by about 20 corporate entities and two dozen high net-worth individuals (HNIs). The entities whose funds were diverted by Puri into the accounts of his relatives include Hero Corporate Services (Rs 13.75 crore), OKS Sapan Tech (Rs 2 crore) and Satyam Auto (Rs 25 crore). Furthermore, Mayar Infratech (Rs 24 crore), Spaid (Rs 62 crore), Karopat Pad (Rs 8 crore), Sunil Kant and Sons (Rs 3 crore), Aero Infratec (Rs 25 crore), Hero Exports (Rs 97 crore), Rekha Munjal (Rs 5 crore), Munjal Investments (Rs 2.5 crore) and Munab Braej (Rs 71 crore) fell prey to the scam. Besides the entities named in the report, the police said they were looking into the records of other entities that claim to have lost money in the fraud uncovered at Citibank's Gurgaon branch late last month. So far, only one HNI client — Helion Advisors Pvt Ltd Managing Director Sanjeev Aggarwal, who lost about Rs 33 crore -- has filed an FIR on the fraud, in which he accused the top officials of Citibank NA, including country head, of being the perpetrators. The police also alleged that Puri used to give fake receipts and bank statements to his clients to mislead them. Case under ED lens too The Enforcement Directorate has sought a copy of the FIR filed by the police on the Rs 400 crore Citibank fraud with a view to lodge a separate case of money laundering against the perpetrators of the scam. Official sources said the directorate has sought the FIR on its own initiative and a copy is likely to be provided by the police soon. The Enforcement Directorate, which exclusively deals with foreign exchange violations and money laundering charges, will look at the possibility of registering a case under the Prevention of Money Laundering Act, sources said. — PTI
	Experts see gold at $1,457 Houston, January 9 Although gold prices fell on Friday, leading towards the biggest weekly loss since July last year, partly due to the recovering US economy and its slipping demand, however, the commodity prices in 2011 are expected to be 19 per cent higher than last year. According to experts, surveyed by the London Bullion Metals Association (LBMA), the average gold price forecast was $1,457 per ounce. — PTI
	Tax Advice No deduction on donation to school by SC Vasudeva Q. I am trying to get my son admitted in a nursery class in one of the most reputed institutions. I have been informally given a message that the admission can be secured provided I have to pay a donation to this school. Can I claim the amount of such donation as deduction from my total income? — Naval A. Section 80C of the Act provides that a deduction shall be allowed to an individual in respect of the tuition fee paid for admission of his children (subject to a maximum of two children) provided such tuition fee has been paid for his whole time education to any school, college, university or any other educational institutions situated within India. The provisions specifically exclude deduction for any payment of donation to school. In view thereof, it would not be possible for you to claim a deduction in respect of donation paid to school for seeking admission of your child. Capital gains Q. I am a salaried employee. However, I have been making investments in shares out of my savings. Recently I sold certain shares and earned a capital gain of about Rs 2 lakh. Is it possible to claim deduction in respect of insurance premium paid against the said income of Rs 2 lakh? — Raghubir Singh A. Section 111 and 112 of the Income-tax Act, 1961 (The Act) specify that the deductions under Chapter VI-A cannot be claimed against a short/long-term capital gain in respect of which Securities Transaction Tax (STT) has been paid. Payment of premium is covered within the provisions Section 80C of the Act which is part of Chapter VI-A of the Act. In view of the above, you would not be able to claim such deduction against the short/long-term capital gain arising on the sale of shares in case STT has been paid thereon. In case of short-term capital gain on which STT has not been paid, deduction under Chapter VI-A should be allowable as such capital gain is taxable at the normal slab rates. Tax on perquisites Q. My employer has provided me a car and a driver. The car is mainly used for official purposes but personal use thereof is also allowed. The maintenance expenses are paid by my employer in its entirety. Am I liable to pay tax in respect of the car which is occasionally used for my personal purpose? — Sanjiv A. The relevant rules of Income-tax Rules 1962 (The Rules) specify that the motor car provided by an employer which is used partly for official and partly for personal purposes by the employee where maintenance cost is met by the employer, the perquisite value of such benefit is taxable in the hands of the employee. The value of the perquisite depends upon the capacity of the car so provided. For example, the perquisite value of a car having the cubic capacity of 1.6 ltrs., would be Rs 2,400 per month. In case a driver is also provided with such a car, an additional amount of Rs 900 per month would also be chargeable as perquisite value thereof. Interest income Q. I have a fixed deposit in the name of my minor daughter. The amount belongs to her as it represents gifts received by her on various occasions. I have been advised that the interest on such fixed deposit is to be added to my income. Is it possible to avoid such tax by claiming that the interest should be chargeable in the hands of my wife who does not have any income thereby getting the benefit of exemption limit applicable to her? — Ram Avtar A. In accordance with the provisions of the Act, any income arising to a minor child is required to be included in the taxable income of the parent whose total income (excluding such income) is higher. It may, therefore, not be possible for you to claim that income arising to your minor daughter should be chargeable in the hands of your wife. It may be added that you would be entitled to claim an exemption to the extent of Rs 1,500 from such an amount of interest.