FIPB clears Ispat Telecom project
NEW DELHI, Dec 12 — Foreign Investment Promotion Board today cleared the $ 800 million satellite project of Ispat Group for the second time in a month.

Conference on capital markets
NEW DELHI, Dec 12 — The CII is organising a two-day conference on Indian capital markets starting from December 21, 1998 at New Delhi.

Sinha for consensus on fiscal deficit
MUMBAI, Dec 12 — Union Finance Minister Yashwant Sinha today voiced the need for a political consensus to reduce the gross fiscal deficit through further economic reforms.

ST hike on petrol flayed LUDHIANA, Dec 12 — The decision of the states Council of Ministers to approve the hike in sales tax on petrol by 3 per cent is being criticised by various sections of the industry.

Excise scheme simplified
NEW DELHI, Dec 12 — The government has simplified excise levy scheme for textile processors which would become effective from December 16, Textile Minister Kashi Ram Rana said today.

Patents Bill opposed
NEW DELHI, Dec 12 — The Patents (Amendment) Bill, 1998, is a “sell-out of national interest under pressure from international lobby’’, the Indian Drug Manufacturers Association has claimed.

IDBI launches flexibonds-5
CHANDIGARH, Dec 12 — The Industrial Development Bank of India today launched the fifth series of popular flexibonds from December 21. It will close on January 14, 1999.

FIPB clears Ispat Telecom project

NEW DELHI, Dec 12 (PTI) — Foreign Investment Promotion Board (FIPB) today cleared the $ 800 million satellite project of Ispat Group for the second time in a month.

The proposal of Ispat Telecom to launch, operate and maintain an Indian owned satellite for global mobile personal communication system (GMPCS) had come back to the board as “some more technical details” were sought from the company, FIPB sources said.

The proposal was earlier cleared by the board on November 14, this year.

The board re-examined the project, and involving a foreign direct investment of around Rs 675 crore, recommended it for clearance.

The sources said there was nothing unusual about proposals, which are already cleared once, coming back for re-examination as there was no finality attached to the recommendations of the board.

The Ispat project envisages foreign equity of 49 per cent by the groups’ overseas affiliates and associates. Mittals would hold the remaining 51 per cent stake in the project, which will also enter into manufacture of telecom equipment.

The approval is subject to other conditions like clearance and licence from other ministries. It will also have to be cleared by Cabinet Committee on foreign investment.

Ispat is among 25 other proposals, involving a total FDI of about Rs 755 crore, cleared by FIPB today.

FIPB sources said the board had decided not to list any more media proposals on the agenda till the Information and Broadcasting Ministry finalised its policy of foreign investment in the sector.

Today it deferred four media proposals from Chaitra Leo Burnett, Zen Communications, Optima and Infinite, pending the policy.

Among other proposals cleared today were seven software proposals involving a total FDI of Rs 3.5 crore, including two proposals by HCL Technologies Pvt Ltd and Quark Media House BV Netherland, to set up wholly-owned subsidiaries.

The sources said both these companies already had wholly-owned subsidiaries in the country and the new subsidiaries would be for different activities.

Software has already become the largest foreign investment area in the country in terms of number. However, in terms of investment, it ranks lower down the order because of lower capitalisation of software projects, the sources said.

The board also cleared a proposal by global energy enterprises to set up four wholly-owned downstream subsidiaries for consultancy in power and non-conventional energy with a total FDI of Rs 17.2 crore.

ST hike on petrol flayed
From Our Correspondent

LUDHIANA, Dec 12 — The decision of the states Council of Ministers to approve the hike in sales tax on petrol by 3 per cent (from 7 per cent to 10 per cent) is being criticised by various sections of the industry and trade. This will mean an increase of approximately 70 paise to the consumers in the state.

The Industry and Trade Forum, Punjab, and the Ludhiana Small Scale Manufacturers has termed this decision as anti-industry and anti-people.

Harish Khanna, President of the forum, has condemned this move and alleged that although the notification has not been issued, some of the petrol dealers have already started charging additional 70 paise from the consumers.

Mr Khanna has alleged that the coffers of the state are empty because of the wrong economic policies being pursued by the state government. He urged the Chief Minister to issue a white paper on the economy of the state.

The people, the trade and the industry of Punjab would be forced to launch a “jan andolan” if the government does not withdraw the hike, he added.

Conference on capital markets
Tribune News Service

NEW DELHI, Dec 12 — The Confederation of Indian Industry (CII) is organising a two-day conference on Indian capital markets starting from December 21, 1998 at New Delhi.

The theme of the conference “Towards Sustained Growth” stress on the importance on bringing back sustained growth in the market especially in the present depressed scenario on capital markets.

According to the CII, among many ills afflicting the capital market, most of them are prevalent in the primary market segment and the mutual funds industry.

It is in these areas that structural and other reforms are needed to provide a boost in the capital market, the CII said.There are of course many challenging opportunities that the introduction of the takeover code would throw up if properly implemented, the CII adds.

The reforms in the capital market, in CII’s view, are only partial and need to be deepened and broadened. According to CII a major reason for the loss of confidence in the capital market has been because of fly-by-night operators.

They not only misuse the public funds but also divest most of it from the companies for other purposes other than for the purposes for which the funds were raised.

In addition to these some companies have defaulted in payments in terms of public deposits and CII has urged that these companies should be heavily penalised and brought to book.

The Conference would be inaugurated by Dr Montek Singh Ahluwalia, member Planning Commission, and Mr D.R. Mehta, Chairman SEBI would deliver the valedictory address.

Hosiery Helpline in Ludhiana
From A.S. Prashar
Tribune News Service

LUDHIANA, Dec 12 — A group of enterprising woollen hosiery manufacturers in this hosiery capital of India have set up unique body called the “Hosiery Helpline” to assist the industry in devising ways and means of beating the unprecedented situation created for them by the economic slow down in the country.

The eight-member group was formed about a week ago, largely at the initiative of Sudarshan Jain and Ashok Sahni, has quickly expanded to include 25 members representing the small and medium manufacturers of woollen hosiery, catering to the high end of the market. The core group comprises, besides, Jain and Sahni, Rakesh Bedi, Rahul Garg, Mukesh Jain, Manoj Thakur, Vipin Jain, and Rajan Kapoor. The group will meet shortly to chart out its market strategy.

“The move has been accepted with open arms and I have no doubt in my mind that in the days to come, more and more people will be coming forward to join it”, says Jain. “Our grouping is defensive and not offensive in nature. We are interested only in safeguarding the interests of the manufacturers.”

A combination of factors has so far cast a pall of gloom on the woollen hosiery industry because of low business of woollen knitwear this year. But the manufacturers believe that there is still plenty of time for the industry to turn in a good performance and pull itself out of the red.

Ludhiana’s nearly 10,000 small, and large scale hosiery manufacturing units make worth about Rs 3,000 crore annually. Goods worth Rs 1,000 crore are exported while the remaining is consumed within India. Of this, hosiery goods valued at about Rs 200 crore cater to the high end of the market.

“The winters is yet to set in” points out Jain. “Therefore, there is no cause to panic.... as a matter of fact, things have already started looking up with most hosiery manufacturers recording a rise in sales due to the marriage season. I am sure that things will improve further as soon as the weather turns a bit colder which will bring the dealers flocking to us”.

He points out that the woollen manufacturers record high sales during the festival season, in cold weather and when there is economic prosperity. This year, things have been negative on the three fronts so far. In addition to the general economic recession in the country, weather gods too have not been kind. The winter is only now beginning to set in. Unfortunately, festivals like Dasehra and Divali too fell in October when the weather was relatively warm. The sales were therefore minimal.

Sensing that the woollen hosiery industry is in trouble, the retailers have been delaying their purchases in anticipation of extracting a hefty discount from them. Individually, the manufacturers may have fallen a prey to panic and offered them discounts. But the constitution of “Hosiery Helpline” has helped them in fending off this attack. “The first decision we have taken is not to offer any discount to any retailer before early next year”, says Jain.

“The marriage season is now on and we are recording higher sales. Another spell of marriages scheduled for early next month will give a big boost to the woollen knitwear sales”, says Jain confidently.

Excise scheme simplified

NEW DELHI, Dec 12 (PTI) — The government has simplified excise levy scheme for textile processors which would become effective from December 16, Textile Minister Kashi Ram Rana said today.

A notification in this regard was tabled in parliament yesterday, Rana said adding the monthly excise duty would be 1.5 lakh per chamber per stentor for processed fabrics valued upto Rs 30 per square metre. The levy would be Rs 2 lakh per chamber per stentor per month for processed fabrics above Rs 30 per square metre.

The government has fixed a collection target of Rs 675 crore from this levy this year. There are as many as 4,000 textile processing units and majority of them come in the first category.

Patents Bill opposed

NEW DELHI, Dec 12 (PTI) — The Patents (Amendment) Bill, 1998, is a “sell-out of national interest under pressure from international lobby’’, the Indian Drug Manufacturers Association (IDMA) has claimed.

The domestic pharmaceutical industry was opposed to the Bill as it went far beyond the requirements of trade related intellectual property rights (TRIPS) and overlooked the healthcare needs of the country, the IDMA said in a statement here today.

Indian consumer would be affected as the Bill threatened their very right to life and healthcare by legally licensing their exploitation and granting the right to charge exorbitant prices, it said.

IDBI launches flexibonds-5
Tribune News Service

CHANDIGARH, Dec 12 — The Industrial Development Bank of India (IDBI) today launched the fifth series of popular flexibonds from December 21. It will close on January 14, 1999.

The flexibonds, having a target seize of Rs 750 crore with a greenshoe option of Rs 750 crore, offers four instruments — regular income, growing interest, multi option and infrastructure bond — to suit the varying needs of investors. Mr O.N. Bundellu, Chief General Manager of IDBI said, “we have mobilised about Rs 5,500 crore under the four previous flexibonds from over 26 lakh investors.

The SEBI had permitted IDBI to raise upto Rs 5,000 crore in the current fiscal. In fact, IDBI mobilised Rs 1,342.71 crore in the first tranche through launching of flexibond 4 from September 21 to October 17,1998.

The regular income bond offers a return of 14 per cent annualised for a period of 7 years. The growing interest bond has a built in step up in the interest rates which rise every year from 11 per cent in the 1st year to 20 per cent in the 7th year.

Infrastructure (tax saving) bond offers 3 and 7 years maturity options. Investment in the 3-year maturity bond can be made to avail tax benefit upto Rs 70,000 under Section 88(2) (xvi) of Income Tax Act, or alternately to derive Capital Gains benefit under Section 54 EA of Income Tax Act. The coupon rate of 3-year bond is 12.5 per cent p.a and the yield to investor after taking into account tax benefits goes upto 22.34 per cent p.a.

The 7-year maturity option offers the investor capital gains benefits under Section 54 EB. In this case the coupon rate is 13 per cent. After taking into consideration tax benefit, the YTM goes upto 18.29 per cent. Interest can be earned annually or on cumulative basis. Investors who wish to save and avail tax benefits can take advantage under this instrument.

Sinha for consensus on fiscal deficit

MUMBAI, Dec 12 (PTI) — Union Finance Minister Yashwant Sinha today voiced the need for a political consensus to reduce the gross fiscal deficit (GFD) through further economic reforms.

“We cannot support unviable public sector units as well as reduce the fiscal deficit. For a handful of persons we would be penalising the entire economy”, Sinha said in his address at a seminar on the “Resurgence of Capital Market” organised here by the FICCI.

For improved economic development the fiscal deficit had to be reduced and “I am determined to do my best and set targets to eliminate it”, he added.

To achieve these targets, he also called for a consensus across the government, trade and industry saying that “the government’s challenge is to reduce the GFD and much of the (market) sentiment is dependent on this challenge”.

Sinha said sops and reliefs would do little to improve markets, and buoyancy in capital markets would not be possible unless the economy was perceived to be moving ahead.

The disinvestment policy was not just a budgetary exercise to reduce deficit but part of an overall strategy to restructure the capital market by providing depth in the market through increased number of instruments, he said.

The Finance Minister said he was worried that “savings were booming despite recession” and added that the reason why it was not channelised into the capital market was because the retail investor had been repeatedly hurt.

Sinha called for greater corporate governance coupled with balanced regulation. “Both government and the corporates had not yet learnt to adjust to the forces of the market and therefore while the government made mistakes the corporate sector also acted with less integrity”, he said.

It is the responsibility of corporates, market participants, such as the unit trust of India, mutual funds, banks and insurance companies to play a defined role to bring back the investor’s confidence, Sinha stated.

FICCI President Sudhir Jalan urged the Finance Minister to allow pension and provident funds to invest in the capital market. Provident funds had a corpus of more than Rs 250,000 crore and at least 5 per cent investment in the capital markets should be permitted, he said.

The Chamber also requested the government to replace the Securities Contract Regulation Act, abolish stamp duty on corporate bonds and allow Indian companies to set their own limits for foreign portfolio investment.

NIFT plans Delhi as fashion capital

CALCUTTA: After New York, Paris, London, Milan and Tokyo, New Delhi might well become the world’s sixth fashion capital by 2020 if its administration gives nod to an ambitious proposal by the National Institute of Fashion Technology (NIFT).

In the much-hyped “fashion avenue” project, prepared by its apparel marketing and merchandising department, NIFT has proposed to earmark a pollution-free, high fashion zone in the heart of the Indian capital in line with the world’s five other haute couture paradises.

The project, at present being considered by the Lt Governor of Delhi, was envisaged after extensive research in the retail markets and shopping areas of the city revealed numerous international apparel brands, lifestyle stores and Indian designer labels.

The institute has identified an area encompassing South Extension Market, Defence Colony Market, Santushti Complex, Greater Kailash-I, Mehrauli, Hauz Khas village and Sirifort Road and Priya in Vasant Lok as potential core fashion zones.

“We see great scope to develop these areas into contiguous shopping and leisure avenues,” NIFT’s Information and Protocol Officer T.K. Home told PTI here.

With India being chosen as the headquarter of the International Foundation of Fashion Technology Institutes (IFFTI) this year and a global apparel mart coming up near Delhi’s international airport, the time is ripe to make the city “fully fashion forward”, he said.

NIFT’s “fashion upgradation plan” lays emphasis on enhancing retail potential of these areas by steps like providing a common “form” for these high streets in terms of infrastructure, car parking, resting squares, greenery and cleanliness.

With glamour and sophistication as keywords, the project aims at providing Delhi’s customers, both resident and visiting, an international shopping experience in terms of brands, quality and styles.

“Statistics reveal that Delhi’s 12.8 million population, which is steadily increasing, also has the highest per capita clothing consumption,” Home said, adding its large middle-class provides tremendous potential for the city to become a buyer’s and seller’s paradise.

Seventeen international fashion institutes from the USA, France, the UK, Italy, Japan, Australia, the Netherlands, China and Brazil recently joined hands to set up the IFFTI with its headquarters at NIFT.

An IFFTI panel of experts has also approved the “fashion avenue” project, saying the foundation would provide greater scope for cooperation between the World Trade Organisation (WTO) and on crucial matters relating to international trade regime in textiles and clothing. — PTI

Customer service too good to be believed

The government has pooh-poohed the findings of a study which said that 95 per cent of the respondents-rated customer service in public sector banks is “excellent”.

The banking division in the Ministry of Finance has almost rejected the report since findings of the study commissioned by the Indian Banks Association are too good to be believed.

It was not as if the IBA study was done in a casual and amateurish way. It was done by one of the country’s two largest market research agencies which went around a few thousand branches to know what the customers thought about services of nationalised banks.

Many customers were venting their feelings at a recent seminar on quality improvement in banking. Results of the IBA study surprised the participants so much that many of them said that “it would have been believable if 95 per cent of the respondents had said they were dissatisfied with the service”.

Customers told the Banking Secretary and Head of the Delhi Chapter of the Indian Banks Association Dalbir Singh that the bank staff rarely opened their counters at the right time, “At 10.30 a.m. they rarely open the counters and if they do they are chatting.”

Secretary-General of the Federation of Indian Chambers of Commerce and Industry Amit Mitra himself shared his experiences as a customer. In one of his banks, which he uses for the locker service, the situation nearly came to blows. “I told the manager that I can punch you as a customer and not as a FICCI Secretary-General.” — UNI

Kar Vivad

The Government should review and amend the provision of the Kar Vivad Samadham Scheme (KVSS) in order to make it more attractive to increase revenues collections, a Parliamentary Committee has said.

The Government may review the scheme to achieve the projected collection in the light of suggestions received from various business and industry groups” the first report of the estimates committee of 12th Lok Sabha on KVSS said.

The report presented to Lok Sabha said the scheme could have been made more simpler by amending the present definition of tax arrears. — PTI

Milk sale

Delhi Milk Scheme (DMS) loses Rs 5 on every litre of milk sold in the city where the total loss amounted to Rs 487.30 lakh a month during 1997-98.

While the present cost of production of toned milk and double toned milk is Rs 12.73 per litre and Rs 11.48 per litre, the sale price is Rs 7 and Rs 6 per litre respectively, Minister of State for Agriculture Sompal said.

He denied that DMS was supplying adulterated milk in some colonies saying the commodity is tested for all quality parameters including those prescribed under Prevention of Food Adulteration Act, 1954. — PTI

Labour laws need overhauling: Secretary

NEW DELHI, Dec12 (PTI) —The government is considering rationalising various labour laws to meet the challenges posed by an increasingly globalised environment, a top government official said yesterday.

“There is an imperative need to reduce the multiplicity of trade unions so as to make them more responsible and accountable,” L.D. Mishra, Secretary in the Ministry of Labour, said at a seminar here yesterday.

He said the Industrial Dispute Act of 1947 was archaic and not in tune with the spirit of competitiveness, and that there was a move to change the industrial disputes redressal mechanism to a bipartite negotiation process involving the employer and the employee to the exclusion of government.

The scope of government intervention in industrial disputes should be reduced to the bare minimum, and only where fundamental rights were involved should the state come into the picture, Mishra said.

However, no major changes would be made in the industrial employment standing order governing terms and conditions of employment, he said at the seminar on “Labour Legislation for the New Millennium”, organised by the CII.

“The Industrial Disputes Act would have a new nomenclature — the Employment Relations Act, he said adding that the current tripartite dispute resolution mechanism was not feasible.

Mishra further said there was a need to rework the definitions of what constituted an industry and who was a workman in keeping with the Supreme Court’s directions so that the current discrepancies were removed.

There was a need for rethinking on contract labour to ensure that contractualisation did not lead to exploitation, he said adding that the thrust of the laws should be on regulation.

Labour laws should be considered not only as labour friendly but also as industry friendly, which would lead to better growth and improved productivity in the industry, he said.

Tudor plans expansion

MUMBAI, Dec 12 (PTI) — Tudor India, a subsidiary of the Exide Corporation of the USA, today announced its expansion plans in the field of replacement markets, including traction and motor cycle batteries.

Speaking at the annual general meeting today, Chairman of Tudor India Mark Stevenson said the company had 51 per cent stake in Chloride Motive Power Batteries Limited of the UK, the UK arm of the Exide Corporation.

In a strategic move to make India the main base for the automotive batteries of the premium brand (CMP-UK), the company was planning to boost its stake to 75 per cent after buying the shares from its Indian promoters, he said.

The company, which had accumulated losses of over Rs 20 crore upto June 1998, was now making profits, Stevenson added.

WWICS’ lucky clients
Tribune News Service

CHANDIGARH, Dec 12 — Worldwide Immigration Consultancy Services (WWICS) with 27 branch offices in India and abroad is providing comprehensive transition package consisting of immigration and settlement to its clients.

On the occasion of its 5th anniversary, many surprises, discounts and lucky draw offers were made to the prospective clients retaining its services during October 1998. During the scheme month 254 clients retained our services and were eligible to participate in the contest. Recently, Lt. Gen. K.S. Mann (retd) has taken over as Chief Executive Officer and many more Defence Personnels have also joined this organisation as Zonal Directors.

WWICS is also conducting the exhibition of multinational companies from Canada and USA at Delhi and Bangalore during February 1999. IT professionals will get great exposure and opportunities from global software companies.

Today’s lucky clients were: Mr Rajesh Kumar (Bangalore), Mr Sandeep (Ahmedabad), Mr Devinder Paul (Jalandhar) along with Mr Ponnada Satyanarayana (Hyderabad) who won the jackpot. Five persons also won the consolation prizes.

By Praful. R. Desai
Denial of gratuity

Q: When the court orders reinstatement of workman with continuity of service, is denial of gratuity for the period he has not actually worked tenable?

Ans: The Andhra Pradesh H.C. was dealing with this point in the case of Ram Rao v Asst. Traffic Manager, APSRTC, Hyderabad (1998-II-LLJ. 698) as under:

A conductor of the corporation was removed as a disciplinary measure w.e.f. 22-4-67. The Labour Court on reference held the removal bad and was ordered to be reinstated with continuity of service. This was on 25.3.85.

Consequently, he was reinstated in service. He retired on 30.9.96 on attaining the age of superannuation. On retirement, the Corporation did not pay the gratuity, admissible to the petitioner-workman taking into account the out of employment period i.e. from 22.4.67 to 26.6.85.

Being aggrieved by the said action the present writ petition was filed. The respondent filed counter. In the counter, the management has contended that during 22.4.67 to 22.6.85, the petitioner was not in actual service and therefore, he is not entitled to claim gratuity for that period.

The contention of the management, according to the H.C. is untenable. The court observed that since the Industrial Court has granted to the petitioner the continuity of service, it should be held that for all practical purposes the petitioner should be deemed to have been in continuous service all through. If that is so, there is no justification to exclude the period between 22.4.67 and 26.6.85 for the purpose of computation for the gratuity payable to the petitioner.

In the result, the H.C. allowed the writ petition and directed the Corporation to compute the gratuity payable to the petitioner taking into account the out of employment period i.e. between 22.4.67 and 26.6.85 into account and after so computing to pay the balance of gratuity to the petitioner within a period of two months from the date of receipt of a copy of this order.

By R.N. Lakhotia

Q: I am a housewife. My husband is good for nothing. I have a daughter aged 18 years. My brother died in 1993. He didn’t marry and had no family. He had invested about Rs 5,50,000 in debentures & UTI jointly with my name. So, I got all this money and put it in bank FDs, Post offices and UTI, partly in my name and partly in the name of my daughter.

He had also some cash and gave it to my sister and her daughter. They declared it under VDIS in December 1997, and paid the due Income Tax. Please advise if I have also to pay any Income Tax or any other Tax on the above Rs 5,50,000. I have no other source of income.

— Sushma Kapoor, Panchkula

Ans: In respect of Rs 5,50,000 inherited by you on the death of your brother there is no liability to Income-tax.

Q: In ‘97-98 I received total pension Rs 64,608 which included service pension plus disability pension and also arrears Rs 9,827 due to revision of pensions. My question is whether Rs 12516 which I received as a “Disability element” is taxable or not. If it is not taxable the balance amount remains much below taxable income. Should I file the return. There is no other source of income.

— D.N. Chawla, Amritsar

Ans: The disability pension is taxable as income. However, you will be entitled to receive the benefit of standard deduction in respect of your pension income @ 331/3 per cent of the salary subject to maximum of Rs 20,000 for the Assessment Year 1998-99. You are advised to file your Income-tax return.

Q: I am a Punjab Govt. pensioner. My total pension including the arrears of pension during the financial year 1998-99 will be about Rs 96,000. I shall be obliged if you will kindly let me know the tax liabilities. I shall be attaining the age of 65 years on 15th October 1998.

— L.M. Chawla, SAS Nagar

Ans: Even when you attain the age of 65 years on 15th October, ‘98 you will be eligible to the tax rebate available to a senior citizen for whole of Financial year 1998-99 relevant to the Assessment Year 1999-2000.

Q: I wish to take information regarding prevailing Laws of Income-tax.

1. Is the income from P.O. Kisan Vikas Patra and Indira Vikas falls under rebate Section 80L.

2. The income from K.V.P. must be shown in every year’s return or can be shown on maturity in one year’s income & if we take maturity then Capital App. (Indexed Cost) can be claimed or not.

3. I hold a recurring A/C of Post Office of Rs 200 p.m. Is the interest income should be shown every year or once on maturity after 5 years all together.

— Krishan Lal Anand, Kapurthala

Ans: The income from Kisan Vikas Patra does not qualify for tax deduction u/s 80L. The income from Kisan Vikas Patra must be shown year after year on accrual basis in your Income-tax return.

Q: I am an officer in the Agri Deptt. Alongwith other allowances, I am getting Rs 250 as medical allowance.

My wife, B.A.M.S., is serving as a doctor in a private hospital, 50 km away from my Headquarter. Please reply:

1. There is a Govt hospital at D.B. Nanak. Can I get the prescription of medicine from my wife to get the rebate on I. Tax for the fixed medical allowance?

2. If I purchase medicine from Batala, 35 km from my Head Qtr. am I entitled to Tax exemption/rebate on the medical bills produced from Batala City, for F. Medical Allowance?

— Dr Baljinder Singh Bhullar, Dera Baba Nanak (Gsp).

Ans: Whether you take the prescription from your wife or whether you purchase medicine from Batala, in all the situations you are not eligible to any tax deduction or exemption in respect of the fixed medical allowance received by you. This is because the entire fixed medical allowance is fully taxable. It is only the reimbursement of medical expenses which is exempted in income-tax to the tune of Rs 15,000.

Wipro
BANGALORE, Dec 12 (PTI) — Wipro Infotech has obtained the national licence to provide internet services. Wipro Infotech Communication Services has the hardware in place to give quick and complex solutions as a premium Internet Service Provider (ISP) catering to corporate customers, a company release said.

Meeting
SAS NAGAR, Dec 12 (FOC) — The Mohali Industries Association (MTA) has decided to organise a meeting here of representatives of all industrial associations of Punjab on December 18. The Association President, Mr R.S. Sachdeva, said that the aim of the meeting at the MIA Bhavan would be to unite all associations under one forum so that industry got due attention from the State and Central government for the redress of problems.

Kisan card
SHIMLA, Dec 12 (TNS) — The United Commercial Bank of India today launched its kisan credit card scheme in Himachal Pradesh. A function was organised at Sadhupul in Solan district and Ramesh Chaudhary Irrigation Minister presided.

Gold falls
NEW DELHI, Dec 12 (PTI) — A recovery trend in bullion prices was short-lived today following emergence of stockists offering at prevailing higher levels and both the precious metals, silver and gold, fell back to closed with losses. The quotations: silver .999 (ready) 7235, delivery 7260, coins buyer 10,600 and seller 10,700. Standard gold 4310, ornaments 4160 and sovereign 3750-3800.

Sportking
LUDHIANA, Dec 12 (TNS) — Sportking, manufacturer of quality apparel of Punjab, has become the first outfit in the region to establish a chain of 31 exclusive company showrooms in Punjab, Haryana, Himachal Pradesh and Chandigarh. Mr Raj Awasthi, Managing Director of Sportking said here today that the company’s extensive manufacturing facilities including spinning, weaving, dyeing and manufacturing under one roof ensured a strict quality control and a reasonable price.

Personal Point
CHANDIGARH, Dec 12 (TNS) — Personal Point — health-cum fitness centre of New Delhi opened its second franchisee centre in Sector 9 here. Panchkula and Ludhiana are the other centres operating in this region, after Delhi and its suburbs. The advantage of Personal Point is losing of weight in a scientific way and without any side effects. The programme is quite natural said Dr Sameer Goel.