Mumbai, September 14
The Reserve Bank of India (RBI) opened a two-day special funding window for banks through the marginal standing facility (MSF) today to help them meet liquidity needs as there would be higher demand for funds on account of advance tax payment.

“Given the market conditions, we have decided to offer two-day funds to banks through the marginal standing facility,” an RBI release said here.

The MSF window remained open today between 5 pm and 5.30 pm and funds will be repayable on September 16. Tomorrow is the last day for corporates and high income individuals to pay their advance tax.

The banks borrowed a record Rs 73,602 crore from the MSF window on September 11, according to the RBI data.

Earlier, on Friday, the RBI had said all designated branches of agency banks would be open on Saturday and Sunday to facilitate collection of advance taxes for income tax and corporate tax from the public.

"All such tax payers who are liable to pay advance tax must make payments in the designated branches of the banks authorised to accept tax payments," the Finance Ministry said.

The central bank has designated bank branches of State Bank and other public sector banks, HDFC Bank, ICICI Bank, Axis Bank, IDBI Bank and Kotak Mahindra Bank to collect advance tax payments. — PTI

Kolkata, September 14
Exuding confidence that the economy will bounce back soon, President Pranab Mukherjee today said there was no reason for gloom to prevail as steps were being taken to boost investments and contain fiscal deficit.

“There is no reason for an atmosphere of gloom to prevail. Fundamentals of the economy remain strong.”

“Stabilising the rupee is foremost in the minds of the policymakers. Strong measures have been initiated to strengthen the external sector,” he said at the annual meeting of the Bengal Chamber of Commerce and Industry here. Observing that steps taken to contain fiscal deficit and boost industrial investments “should show positive results”, Mukherjee said “I am confident that the economy would soon return to the high growth trajectory.”

He maintained that the process of economic reforms had to be continued “with vigour and firmness. Changes wherever required had to be brought in to unleash our growth potential.” He also referred to the good monsoon this year which, he said, would impact positively on agricultural growth and food prices.

Stressing that steps need to be taken to improve the performance of the manufacturing sector, he said the sectoral share of manufacturing in the GDP had remained at around 16% since the 1980s, compared with 25-34% for some of the Asian economies. Increasing competitiveness of the sector would be crucial to achieve the target of taking its contribution to GDP to 25%, he said. — PTI

New Delhi, September 14
The inter-ministerial panel on coal linkages which met here yesterday did not reach any agreement on coal supplies to the power sector, amid the power producers facing fuel supply issues.

The Coal Ministry had called for the meeting of the Standing Linkage Committee (Long-Term) for power to review the status of achievement of milestones in the power sector and other items related to existing coal linkages.

However, officials said the panel would meet again to decide on the linkages agreements. The 13-member panel, chaired by the Additional Secretary Coal, has representatives from ministries like Power, Railways and Shipping.

The meeting was called at a time when some of the power plants are yet to enter into fuel supply agreements (FSAs) with Coal India Limited (CIL) in the wake of various issues, including non-achievement of milestones and issues over supply of poor quality coal.

The milestones, in general, include acquisition of land, signing of power purchasing agreements, among others.

Q: I am a US citizen. Is CA certificate necessary to repatriate my pension from India to USA or is it required only for third party transfer?

— Suresh Bhagat

As an NRI (PIO), your pension has to be credited to your NRO account. And for any remittance from the NRO account, the process of submitting an undertaking and a CA certificate is mandatory.

The person intending to remit has to furnish an undertaking (addressed to the ITO) in prescribed Form 15CA accompanied by a certificate from a CA in the specified format of Form 15CB in duplicate to the bank which in turn is required to forward a copy to the Assessing Officer concerned.

Basically, the procedure related with remittances may be summarized as follows:

* Remitter accesses www.tin-nsdl.com.

* Electronically uploads the remittance details in Form 15CA.

* Takes printout of filled Form15CA with system generated acknowledgement number.

* Signs Form 15CA.

*n Submits the signed Form to the RBI/AD along with Form 15CB in duplicate

* Bank remits the amount.

Q: I purchased a house on hire purchase basis in August, 1980. The total cost of the house was Rs 49,521. The payment was made in monthly installments spread over a period of 12 years commencing September, 1980, and completed in August, 1992. I sold the house for Rs 12 lakh and the conveyance deed was executed in May, 2013. Tell me about the long-term capital gain and tax liability on the same.

Further, I purchased a society flat in January, 2011. The last installment towards the cost of the flat was paid in January, 2013. Can this last payment be offset against the long-term capital gain arising from sale of the house mentioned above?

— Kansal

Effectively, you have purchased your first house for Rs 49,521 less, interest you have paid. This is the cost of acquisition and the date of acquisition is the date when you got the possession of the house. The fact that you have paid the price in installments is immaterial and inconsequential.

You can claim exemption under Section 54 or 54F by purchasing a residential house within a year before or two after the date of sale of the old house. Alternatively, you may construct a residential house within three years after the date.

We believe you have sold your old flat in May, 2013 and purchased a new house in January, 2011. Since the requisite period of one year prior to sale to claim exemption has expired, you cannot claim the exemption under Section 54. We presume you had got the possession of the flat in January, 2011.

Note these answers are dependent upon our correct understanding of your query.

BRIEFLY

New Delhi
Gold slides for fourth day
Gold prices fell for the fourth straight day in the national capital on Saturday falling by Rs 450 to Rs 30,300 per 10 grams on sustained selling amid a weak global trend. However, silver recovered by Rs 450 to Rs 50,750 per kg on an increased offtake by industrial units. — PTI

NEW DELHI
More items under duty drawback scheme
The government on Saturday rationalised the duty drawback and brought more items under the scheme for tax refund to exporters to give a boost to overseas shipments. The revised All Industry Rates of duty drawback, which have been notified, will come into effect from September 21, a Finance Ministry statement said. — PTI

Kolkata
Coal India to seek revised MDO tender next week
Coal India is to come out with a revised tender next week for request for qualification (RFQ) for mine development in seven projects. “Based on discussions with participants, we have modified and refined the terms of RFQ for inviting the Mine Developer and Operator (MDO). We will release the tender next week,” Coal India chairman S Narsing Rao said here on Saturday. Rao said CIL was aiming to offer the MDO contract by March 2014. — PTI