The Tribune, Chandigarh, India

	RIL faces risk of losing bellwether tag: Experts New Delhi, June 5 Mukesh Ambani-led Reliance Industries (RIL) faces the risk of losing its long-held stock market bellwether position, as its share performance has been below-average for many months now, experts have warned. Reliance Industries, the country's most-valued company and the biggest private sector entity in terms of profits and revenue, has been a sort of benchmark for Indian market for many years by virtue of its large shareholding and valuation. The stock enjoys the maximum weightage in the Sensex and a rise or fall of one per cent in its share price can lead to a surge or plunge of nearly 20 points in the benchmark index. RIL shares have fallen by nearly 7.5 per cent over the past one year, even as the Sensex has gained about 1,259 points or 7.5 per cent over the same period. Experts suggest that the gain in the Sensex would have been higher by at least 300-400 points if the RIL shares had performed in-line with the broader market, if not any better. Less than half of the 30 Sensex stocks have registered a fall over the past one year and the likes of BHEL, DLF, NTPC and Reliance Communications have seen a fall even greater than that of RIL. However, RIL has the maximum weightage of over 11 per cent in Sensex, while other losers are among very low-weight stocks in computation of Sensex movements. "RIL is no longer the market mover. The biggest reason is the uncertainty in the stock on concerns of gas output from KG-D6 basin. Investors are not passionately following the stock at present," CNI Research CMD Kishore P Ostwal said. Geojit BNP Paribas Financial Services' Research Head Alex Mathews also said the co-relation between Sensex and RIL has gradually come down over the years. "Some of the key reasons are that exposure has been shifted to other blue-chip companies, mainly banking sector. Also, exposure of fund mangers has gone down in the oil & gas sector," he added. Expressing similar sentiments, Ashika Stock Broking' Research Head Paras Bothra said the mindset has changed from earlier days when Reliance used to lead the market. "This is obvious from the fact that the index has moved up despite the fact that RIL was trading in the negative," he said, adding that some other companies like ONGC, Coal India, ICICI, Infosys and Larsen and Toubro had now started to move the market indices. Unicon Financial's CEO Gajendra Nagpal said that there were multiple challenges around the RIL stock, because of which it has underperformed. — PTI
	ADB lends $200 m to Assam Guwahati, June 5 The Asian Development Bank (ADB) has extended a loan assistance of $200 million to Assam for several schemes and projects.A high-level ADB team led by Mission Leader Sengay Penjor met Assam Chief Minister Tarun Gogoi and extended the loan assistance for the implementation of schemes and projects in different parts of the state, official sources said here yesterday. The whopping loan assistance for Guwahati will be for introduction of Bus Rapid Transit System from Paltanbazar to Khanapara coupled with other two projects related to drinking water supply for East Guwahati and sewerage. — PTI
	Lagarde likely to be IMF chief: Nikkei Tokyo, June 5 French Finance Minister Christine Lagarde will likely become the next head of the International Monetary Fund (IMF), with backing of the United States and Japan, the Nikkei financial daily reported on Sunday, citing unidentified global financial industry sources in Washington. The US, which has the largest share of votes in the IMF, the main institution overseeing global financial stability, and second biggest voter Japan are expected to officially endorse Lagarde as early as June 10 when the nomination process closes, Japan's Nikkei said. Japanese officials were not available for comments. Finance Minister Yoshihiko Noda has only said a new IMF chief should be selected through an open, transparent and merit-based process. Emerging market countries argue that their increasing influence in the global economy, with China and India the world's fastest-growing nations, should give them a stab at the IMF top post, which has traditionally gone to a European. The IMF has a June 30 deadline to pick a successor to Strauss-Kahn. The IMF board has said it hoped member countries would agree through consensus on a candidate although it could go to a vote. The US and Europe hold 48 per cent of the votes in the IMF, and Japan has more than 6 per cent. Assuming all European members unite behind Lagarde, she would have more than 51 per cent of the votes and get the post, Nikkei said. — Reuters
	Satyam seeks more time for setting up SEZ Hyderabad, June 5 IT services firm Mahindra Satyam has sought additional time for setting up an IT/ITES SEZ at Hitec City in Madhapur here.The Union Ministry of Commerce had already given two extensions for the SEZ and the validity of the last extension is up to June 19. According to a senior official of the Andhra Pradesh government, the latest request for extension has been forwarded to the Board of Approvals for SEZs under the ministry. Mahindra Satyam was granted formal approval for setting up the SEZ over an area of 10.52 hectares in 2006. "The company informed the BOA (of) the steps taken to implement the project and sought some more time as it could not complete the construction due to the unforeseen situation the company got into in January, 2009," the official said. The company also informed the BOA that it is on the recovery path and is getting new customers and new business and hence, is in a position to complete the project. — PTI
	Maruti workers, management standoff continues New Delhi, June 5 The standoff between the management of the country's largest car-maker Maruti Suzuki India and workers at its Manesar plant, who went on strike on Saturday, continued today. "The situation remains the same as yesterday. However, there is no production loss as we have a normal holiday on Sunday," a company spokesperson said. Yesterday, about 2,000 workers employed at the plant stopped production from the second shift of the day, resulting in a production loss of about 650 units. The plant rolls out about 1,300 units every day from the Manesar facility. Striking workers are demanding the recognition of a new union — Maruti Suzuki Employees Union (MSEU) — formed by those working at the Manesar plant, besides retaining contract labourers for the two upcoming new units inside the complex. Taking no disciplinary action against the 11 office-bearers of the new union is also another demand. Meanwhile, worker sources said three rounds of talks have happened with the management so far regarding their demands, but without any outcome. The workers said the company currently has one union, Maruti Suzuki Kamgar Union, which is mainly dominated by those working at the Gurgaon facility. "The Manesar plant is completely different and issues are also separate. So we are asking for recognition of our new union. But the management has forcibly taken written undertakings from workers that they are happy with the old union," a source claimed. — PTI
	Tax Advice Employer’s contribution to PF taxable if service less than 5 years by SC Vasudeva Q. I was employed in a company, which was managing its provident fund through its own trust. I served in the said organisation (2005-09) for 4 years. After leaving in 2009, I requested for payment of contribution to my PF & company contribution toward PF in the year 2010. The said company paid the PF after deducting the tax enjoyed on PF during the 4 years. Even after deducting tax, they have advised that a certain sum will be added in my income during the current financial year (2010-11) as employer contribution. My queries are: 1) Is the company correct in deducting tax on PF 2) If the tax has been deducted then why the part of refund amount is to be added in current Financial Year. — Ashish A. According to the provisions of Section 10(12) of the Income-Tax Act, 1961 (The Act) accumulated balance due to and payable to an employee participating in a recognised provident fund, is exempt to the extent provided in Rule 8 of Part A of Fourth Schedule to the Act. Rule 8 provides that such exemption would be applicable where an employee has rendered continuous service with his employer for a period of 5 years or more. You have not served for a continuous period of 5 years. The amount of employer's contribution and interest thereon is taxable as part of the salary in accordance with the provisions of Section 17(3) (ii) of the Act. An employer is supposed to deduct tax at source as the amount paid to you is part of salary. You would be required to include the employer's contribution as part of your income if it is not so included in Form 16A required to be issued by the company. Gift by daughter-in-law Q. My daughter-in-law gave me Rs 1 lakh. The entire amount was deposited in a bank fixed deposit by me in my name so as to earn the higher rate of interest, being a senior citizen. The entire amount of interest, as earned on the FD, together with the principal amount of Rs 1 lakh was given back to my daughter-in-law. This had been done just to earn the higher rate of interest. The accrued amount of interest on the FD has been clubbed into the income of my daughter-in-law as she is also earning and assessed to income tax. Accordingly, the ITR for the assessment year 2011-2012 will be filed. Kindly confirm as to whether this is in order. (i) My total income for the assessment year 2011-2012 is Rs 2 lakh. I had also sold the equity shares through a recognised stock exchange on which the STT had been paid.This resulted a long-term capital gain of Rs 1.50 lakh. (ii) Like-wise, the short-term capital gain on sale of equity shares on which the STT had been paid works out to Rs. 30,000. (iii) Further, the income from other sources is only Rs 5,000 during the year. I am a senior citizen. Taking into above income, as shown in items 2 to 4, the total income comes to Rs 2.35 lakh (If long- term capital gain, which does not attract income tax is excluded). Kindly advise me on the following in addition to the query as raised in 1, above. A. My income for the assessment year 2011-2012 (excluding the long-term capital gain of Rs 1.50 lakh) is less than the taxable income. Under these circumstances, shall I have to file the ITR for the assessment year 2011-2012. B. Shall I have to pay the short-term capital gain @ 15% on Rs 30,000 being the short-term capital gain on sale of equity shares even though the total taxable income from all sources will be below the taxable limit? C. My total savings during the year are as under: PPF: Rs 70,000 LIC: Rs 15,000 Total: Rs 85,000 — Vishnu Pathak A. a) It would be advisable for your daughter-in-law to show the amount of Rs 1 lakh as gift to you. The interest earned thereon should be shown as your income. This will enable you to claim the adjustment of tax deducted at source. The treatment suggested by you may not be accepted by the tax department. b) In case your taxable income, including short-term capital gain of Rs 30,000 is below the maximum amount on witch tax is not chargeable, you need not file the return of income. You would not be liable to pay tax on short-term capital gain of Rs 30,000 in case your taxable income, including Rs 30,000, is less than Rs 2,40,000 for assessment year 2011-2012. Senior citizen status Q. As per Budget, individuals who have completed 60 years on April 1, 2011, are to be considered as senior citizen for the purpose of income tax slab rates. Is it applicable for the income earned in previous year 2010-2011 (A.Y. 2011-2012) or income earned in 2011-2012 (A.Y. 2012-2013) onwards? — S.P. Dhureja A. The amendment with regard to the status of senior citizen has been introduced by the Finance Act 2011 and would be applicable in respect of taxability of income for assessment year 2012-13 (Financial Year 2011-12). It would not be applicable for assessment year 2011-12. (Financial Year 2010-11) Interest on joint a/cs Q. I am a retired defence officer. I have few accounts in Post Office Monthly Income Scheme. These are in joint names of myself, my son and daughter-in-law. Some amount is my own savings and retirement benefits and some amount is from my son, from his earnings. As per M.I.S. Deposit Scheme, the depositor's share in a joint account is taken as one half (when there are two joint holders) and as one third - when there are three joint holders vide notification no. GSR-706E - D/5.9.2000. Now, my query is whether the amount of interest to be taken into account should also be half or one third as the deposits stand. So far, I was including total amount of interest in my gross income and submitting I.T. return accordingly. My son and daughter-in-law are also paying their own I.T. and have their own income and PAN No. — A.K. Pandey A. The income tax is payable by an assessee on his income. The income chargeable to tax is always ascertained with reference to the source of the capital. In your case, the amounts deposited in Post Office under various schemes are out of your savings and retirement benefits. In my opinion, therefore, the interest earned on such an account should be taxable in your hands. In case any deposit in the joint account is with reference to the source of your son's income, interest earned on such an amount would be taxable as his income. The joint holders may be entitled to receive the money at the expiry of the term of deposit in accordance with the circular quoted by you but in case the amount deposited in Post Office has not originated from their sources, the interest income cannot be bifurcated/trifurcated simply because the account has been opened in the joint name of two/three persons.