|
|
|
|
|
Four HMT officers indicted for fudging production records
Annual General Meeting
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
investor guidance Money received as gift from relative is tax-free My friend's wife (salaried) has taken a home loan of Rs 10 lakh to financially support her brothers by providing them a house. She has been paying instalments of the loan for the past two years. Now, her brothers wanted to liquidate some of their properties to repay her. If she accepts Rs 9 lakh (approx loan amount) from her brothers, will it be treated as a gift or repayment of the loan? Will it be taxable? Is it feasible for her to give the house to one of her brothers?
|
|
Four HMT officers indicted for fudging production records
Chandigarh, June 15 Sources in the Ministry of Heavy Industries informed The Tribune that the four officers — CMD and three general managers (all posted in Pinjore)— were called for a review meeting yesterday. The meeting was held to discuss how to implement the revival package being finalised to bail out the cash- strapped public sector undertaking (PSU). Reportedly, the officers were confronted with the fudged production figures at the meeting. Ministry Secretary S Behuria confirmed that action had been recommended against the officers. He, however, said the final order on initiating action would be passed by the Minister on Monday. He refused to divulge the details of how the officers had fudged the production figures. Sources said the management had allegedly shown a much higher production of tractors at its units in Pinjore and Hyderabad against the actual figures and low capacity utilisation of the tractor manufacturing plant. It was learnt that as against the total tractor manufacturing capacity of 18,000 units, the firm's production was 8,000 units. HMT had been amongst the first and largest PSUs to be set up in the region. When HMT hit a bad patch in early 2000s and their tractor production dropped drastically, it was the other tractor manufacturing companies that began sourcing the equipment from the HMT suppliers. So, while HMT Tractors market share continued to plummet to just 1%, other tractor manufacturing firms continued to increase their market share. However, things were expected to change for HMT Tractors. In April, the government had announced a financial restructuring package of Rs 1,083.48 crore, which was to be implemented in a phased manner. The package would include cash infusion of Rs 447.92 crore and a bridge loan of Rs 22.92 crore from the government, besides non-cash assistance in the form of conversion of government loans into equity and waiver of interest. The government had also approved implementation of revised pay scales for HMT employees and given them permission to sell surplus land for redemption of preference share capital and repayment of bridge loan. With the top management officers now being caught in the wrong, the revival package could be delayed. Final order on Monday
n Sources said the management had allegedly shown a much higher production of tractors at its units in Pinjore and Hyderabad against the actual figures and low capacity utilisation of the tractor manufacturing plant. n Ministry of Heavy Industries Secretary S Behuria confirmed that action had been recommended against the four officers. The final order on initiating action would be passed by the Minister on Monday. |
|
|
Annual General Meeting
Bangalore, June 15 An extraordinary general meeting will soon beheld in order to seek approval from the shareholders for appointing Murthy as the executive chairman and whole-time director for a period of five years commencing from June 1. Murthy said during the past two years since his retirement, the focus on the company's bread and butter business had got 'blurred'. According to him, the bread and butter business was ‘to win highly competitive, large revenue yielding outsourcing projects involving application development, maintenance, testing,
BPO, and infrastructure management’. Murthy said while Infosys must concentrate on its bread and butter business in the short term, it should pursue the medium and long-term goals of consulting-led end-to-end solutions and developoing intellectual property-based solutions to delink revenues from effort. He also lamented the weakening of the company's earnings forecast during the last couple of years and promised to refocus on building a more predictable earning model in the medium term. Saying that the challenge is daunting, Murthy also talked about taking “some tough decisions resulting in pain”. While at least three shareholders, including two from Mumbai (who were participating in the AGM through video conferencing) welcomed the entry of Murthy's US-educated son Rohan in the company and one even suggested that Murthy should also get his daughter to join Infosys. KV Kamath, who was officiating as the chairman today (which is also his last day as chairman since he has quit the post to pave the way for Murthy's appointment as the executive chairman), said regarding Rohan Murty’s appointment, the facts are there. Kamath and Infosys CEO Shibulal had answered the questions raised by the shareholders. Both avoided answering the question on whether children of other board members would also gradually join Infosys. Murthy, reputed for repeatedly insisting that his family members would never join Infosys, is being accused of making a u-turn as his son has now become his executive assistant.
(with agency inputs) |
|
|
investor guidance
My friend's wife (salaried) has taken a home loan of Rs 10 lakh to financially support her brothers by providing them a house. She has been paying instalments of the loan for the past two years. Now, her brothers wanted to liquidate some of their properties to repay her. If she accepts Rs 9 lakh (approx loan amount) from her brothers, will it be treated as a gift or repayment of the loan? Will it be taxable? Is it feasible for her to give the house to one of her brothers?
— Mitra As per Section 56 of the Act, any sum of money received as a gift from a relative is tax-free without any limit. A brother is a relative of the sister as per the definition of the term ‘relative’ and hence if the sister accepts Rs 9 lakh from her brothers, the same would be tax-free in her hands. Gift tax has been discontinued with effect from October 1, 1998. The Section 56 is limited to gifting sums of money. Even under that the section, as mentioned above, gifts between relatives are tax-free. Therefore, if she were to gift the house to one of her brothers, the transaction would be tax-free. I am an NRI, residing in the US and dependent on my daughter and son-in-law. My NRO account is with my bankers in Chennai in which my local income like pension, interest etc are credited. I wish to give a gift, out of my NRO account, to one of my close relatives in India. Can a non-resident give gift to a resident out of his (non-resident) NRO account? — Sujeet Yes, you are free to give a gift to your close relative in India. You need to ensure that the relative in question is indeed covered by the definition as contained in Section 56 of the Act, failing which the money transferred could be taxable in such person's hands. “Relative means spouse, brother or sister, brother or sister of spouse, brother or sister of either parents, any lineal ascendant or descendant, any lineal ascendant or descendant of the spouse, and spouse of the persons referred in clauses (ii) to (vi).” Note, the donor has to be a relative as per the above definition. For example, X whose mother’s brother is Y. Yes, Y is a relative of X (mother’s brother) but X is not a relative of Y (sister’s daughter). |
Mumbai Mumbai Mumbai
|
||||||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | E-mail | |
