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Virgin eyes Hyderabad, Bangalore
ONGC strikes at 6 new places
VSNL plans 25,000 km network |
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FIIs net buyers in equities
Wockhardt to launch Captropril in US market this year Dada-Dadi bonds in 10 days: Jaswant
Market may go flat again
No tax relief on loan interest against FDRs
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Virgin eyes Hyderabad, Bangalore and Chennai New Delhi, April 4 “We look forward to further increase our frequencies in the coming year as well as extending our points of operation. We wish to fly daily from Delhi to Mumbai and hope that it becomes a reality soon. Hyderabad, Bangalore and Chennai are other centres where we would like to begin flying from,” the General Manager, India of Virgin Atlantic, Mr Andrew Fyfe, told The Tribune in an interview. Mr Fyfe said there exists a ‘great potential as far as India is concerned’ and a growing demand on the Delhi-London-Delhi route. “With airfares coming down and tour operators handing out exciting packages, we already hear of flights being fully booked, especially to the European sectors,” he said. Last year as many as 4.5 million Indians travelled abroad and the figure is to go higher by 15 per cent this year. Nearly half of the total number of persons flying from Delhi and Mumbai to London each year are forced to do so via third countries, extending their journey time by up to five hours due to unavailability of more direct flights. “We see that as an opportunity for growth. Virgin offers direct connectivity on the route and is henceforth preferred,” he said. He said the airlines will offer customised India-specific services for the Indian travellers. “Our focus will continue to be our customers and we wish to continue delighting them with personalised services and a unique on-board experience,” he said. Currently, every flight on the Delhi-London-Delhi sector has Indian cabin crew. “We have certainly adopted a more Indian flavour in our menus. We have also been careful to ensure that special attention is paid to vegetarian requirements. On board, one can even watch the latest Indian blockbusters and tune into local Indian music and sports,” Mr Fyfe said. On the prospects of the Indian aviation industry in the coming year, he said “next one year would be very exciting.” The airlines launched its operations in India in 2001 and Mr Fyfe said that there has been an increasing demand on the Delhi-London-Delhi sector. “This gave us an impetus to increase the flights to three on this route. The going has been good with 14 per cent share of the traffic with a seat load factor of 70 per cent in 2001, 15 per cent market share with an increased load factor of 74 per cent in 2002,” he said. The airline has also invested heavily on a new first class product across its fleet. “At a time, when other airlines are cutting back on investment, Virgin Atlantic has invested £ 50 million in this product called the Upper Class Suite,” Mr Fyfe said. He said the product would be introduced on all Virgin’s Boeing 747-400 and Airbus A 340-600 aircraft starting shortly. On immediate future plans, Mr Fyfe said the focus is customer-driven and “Virgin would continue to establish and strengthen the values among stakeholders, customers and trade partners through consistent innovation.”
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ONGC strikes at 6 new places
New Delhi, April 4 “During the year, ONGC made six discoveries — East Lakhibari (oil) in Assam, Sonamura (gas) in Tripura, Degam (oil) in Gujarat, Sitarampuram (gas) in Andhra Pradesh, NMT-2 (gas) in Western Offshore and G-4 in Bay of Bengal,” a company press release said here. The onshore finds are being brought into production, and development plans were being prepared for the offshore ones. Offshore discoveries in D-1 and Vasai East fields in Western Offshore and G-1 and GS-15 finds in Eastern Offshore are under development, with deliveries to commence in 2005-06. Service contracts have been awarded for 8 marginal onshore oil fields, with development beginning in 2004-05. “With these awards, ONGC will monetise 1.8 million tonnes of oil in-place worth Rs 870 crore,” it said. Nineteen marginal oil and gas fields in Western offshore have been offered for service contracts. The fields are likely to be awarded by September 2004 and development work scheduled to begin before monsoon 2005. Redevelopment of ONGC’s flagship Mumbai High field in the Arabian Sea has already increased production by 50,000 barrels per day (2.5 million tonnes per year). ONGC made its first deep sea discovery at G-4 structure in Krishna Godavari Basin in January 2004. The discover is estimated to hold 0.8 trillion cubic feet of gas reserves. —
PTI
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VSNL plans 25,000 km network
Mumbai, April 4 “The NLD plans are under our overall strategies of laying Optic Fibre Cable in areas, which are essential,” sources said here today. Analysts estimate that the VSNL would incur nearly Rs 4 lakh per km, amounting to Rs 760 crore, for the proposed NLD rollout. Setting up an own NLD network would also help in providing broadband services at “competitive rates” in the country, the sources said. —
PTI
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FIIs net buyers in equities
Mumbai, April 4 Mutual Funds (MFs), on the other hand, were purchasers in equities at Rs 1,307.91 crore but were more active in debt market to net inflows of Rs 22,802.53 crore during the fiscal ended March 31, 2004, according to the data available with the Securities and Exchange Board of India here. The grand total in calendar year 2004 was Rs 12,987.1 crore ($ 2.85 bn). —
PTI
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Wockhardt to launch Captropril in US market this year
Mumbai, April 4 “Our strategic growth drivers will come from two key areas - value-added services to developed markets like the US and Europe and supply of biogenerics to less regulated markets,” Wockhardt chairman Habil Khorakiwala said here. Simultaneously, the company was also working towards registration of biopharmaceuticals in the developed markets and for this the entity was building global capacities at the biotech park in Aurangabad, Maharashtra, he said. On patenting, he said: “We plan to file nearly 15 abbreviated new drug application (ANDAs) in 2004. We have filed 11 patents to date, including nearly 50 in 2003.” Wockhardt has filed 30 drug master files in the USA and eight in Europe. Mr Khorakiwala, in the annual report for 2003, said Wockhardt has become one of leading suppliers of ‘Captopril’ active pharmaceutical ingredient to the US market and “has drawn up plans to launch ‘Captopril’ tablets directly in the market in the current year. — PTI
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Dada-Dadi bonds in 10 days: Jaswant
New Delhi, April 4 Asserting that the model code of conduct, which bars the government from announcing new welfare schemes pending the Lok Sabha elections, will not come in the way of the scheme intended to offer reasonable returns to the elderly, Mr Singh told UNI that his Ministry officials are working on the details. The details of the scheme, would be known at the time of the launch. —
UNI
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Market may go flat again The long-term prospects of the Indian economy and the stock market are excellent but the stock market may shine only after the Lok Sabha election results are announced in mid-May. During the last fortnight, the stock market had a lot of ups and downs. The sensex closed at 5395 points on March 24; it closed at 5762.81 points last Friday. The recovery was triggered by the Finance Minister’s announcement that the GDP growth during the 3rd quarter of 2003-04 is at the rate of 10.4 per cent. Agriculture is up by 16.9 per cent and the manufacturing by 7.4 per cent. An important question is whether the market indices would continue to climb up this fortnight and later. It appears to me that this is unlikely and the market may go flat even though today’s trading may be somewhat positive. I say this because except for Infosys, which is announcing its results on April 13, there is no other top company making such announcement during April. HDFC Bank and Reliance Energy are no doubt announcing their results on April 16 and Ranbaxy on April 22, but these companies are not big enough to bring any significant change in the market indices. The public interest is likely to be focussed more on elections and cricket news than on the stock market. The stock market is, however, expected to bloom by mind-May when the Lok Sabha election results would be available. Any negative election results against the present coalition government may depress the stock market. There is hardly any doubt that the corporate sector is doing very well. According to the latest news, the advance tax payments by the corporate sector are higher by 43 per cent. The best advice to the long-term investors is: stay invested even if the market goes flat or even gets depressed. Profit taking in blue chips should also be avoided even if the market flops. The general expectation is that the present coalition government is likely to return to power and the market would gush up. Another important development during the last fortnight has been the rise of the Indian rupee against the US dollar. The rupee touched a high Rs 43.30. This is a welcome development for the country’s economy but it may hit India’s exports and net software earnings from the US. It may, however, make imports cheaper and also effect investments in the stock market. The recent disinvestment of IPOs of PSU companies is now over. There has also been some muddle at the Registrars’ level in the ONGC allotments. The retail investors who applied for these issues have not made any substantial gains from the allotments received by them. This experience may caution the investors to be more alert in responding to the IPOs. But Tata Consultancy IPO, which may be offered in July this year, appears to be an excellent and gainful proposition. Though the full details are not yet known, the investors should reach their funds for this IPO offer. During the next financial year, in pursuit of the WTO Agreement, Patent Law, covering both the process and product sides of drugs, is likely to come into effect. Investors should invest in the multipharma scripts whenever price levels of such companies as Glaxo, Pfizer, Aventies, Novartis and such other companies dip. In this column, Pfizer had been recommended when it was around Rs 430. Now it is quoting around Rs 480. Similarly Glaxo scrip had moved down to Rs 575. The Tata group is record that it would merge all its companies which are involved in Information Technology into one major company. Tata Telestar quoting around Rs 17.35, which had also been recommended earlier, should be retained. Even fresh investments may be made. Reliance company is an excellent investment scrip and the long-term investors should retain their present investments in this scrip and add to it when it dips. Reliance has made two new gas discoveries in the Bay of Bengal.
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No tax relief on loan interest against FDRs Q: I am a bank employee working with Punjab National Bank. Recently management of our bank allowed current over draft limit to their employees @ 1 lakh, 2 lakh & 3 lakh to sub-staff, clerical staff and officer staff respectively against salary with condition that monthly salary of the employee will be credited to over draft account and bank will charge 11.39 per cent monthly compound interest. Please clarify that will there be any tax rebate on interest charged by the bank on over draft limit. I came to understand that if some one takes loan against FDR/over draft limit and interest charged by the bank can claim tax relief. — Rakesh Sharma, Kapurthala Ans: The advise rendered to you that interest charged by the bank on loan against FDR/over draft is entitled to a tax relief does not seem to be correct. The deduction in respect of interest paid on loans raised from the bank is applicable when such loan is obtained for the construction/ acquisition of a house property. This deduction is allowable under Section 24 of the Income Tax Act 1961. TA exemption Q: We as employer provide reimbursement to employees of LTA payments made, what should be accepted as "proof of expenditure" to give LTA exemption. Normally employees submit Travel Agent’s bills depicting purchase of train tickets bearing ticket numbers, destination and place of journey only. Now what is our responsibility in this regard to verify whether those bills of travel agents are genuine or not and do they need to provide train tickets (original or p/c). Further in the case of air journey and bus journey, what should be accepted as proof of expenditure. — Anuj Kumar Vasdev, Panchkula Ans: Under Section 192 of the Act, you as an employer are required to deduct tax on the estimated income of the employer. The final determination of the income is to be made by the concerned Assessing Officer in the case of the employee during the course of his assessment as an individual. In my opinion the travel agents bill depicting purchase of train ticket bearing ticket number destination and place of journey would be a prima facie proof for the allowance of exemption in respect of LTA payment. However, for this purpose the employees should also be asked to tender the original rail tickets because the ticket checker normally returns the ticket after examination if the request is made by the traveller for returning the tickets. Similarly, in case of air/bus journey again, the support should be tendered in the form of copy of air ticket and the punched bus fare ticket. TDS on commission Q: In addition to my laboratory work, I am also working as small saving schemes agent since many years and regularly filing the income tax returns. Now the Post Office Department has asked me to deposit the TDS on commission for the period from 01.06.2000 to 31.03.2001. TDS on commission was not applicable before 01.06.2000. Kindly let me know the easy process of getting the refund from the Income Tax Department it I deposit TDS for the above stated period. — Vijay Kumar Bhalla Ans: It is not clear from your query whether the TDS would be deposited with the government treasury or paid to the post office and they in turn would deposit the same. In the latter case if you pay to the Post Office, the Post Office cannot issue you a TDS certificate in the current date in respect of tax deductible for the period 01.06.2000 to 31.03.2001. It is also not clear whether you have already paid tax on the commission income earned by you during the Assessment Year 2001-02. If tax has already been paid by you, there is no question of paying tax again on the said income as ‘TDS’. Tax computation Q: I am a government employee and my salary in the F.Y 2003-04 works out to be 1,54,000 without standard deduction and Rs 1,24,000 after the standered deduction of Rs 30,000 Besides above, (1) I earned Rs 11200 as interest on Bank FD’s/saving account and infrastructure (Tax Savings) Bonds of ICICI and IDBI (2) Rs 1,98,000 dividend from Units of Mutual funds and Equity Companies, which is said to be totally tax free in the hands of investors. (Shall this tax-free dividend earned, also be included Gross total Income for IT purpose). I have contributed Rs 63,000 in GPF and Rs 35,000 in IDBI infrastructure (Tax Saving) bonds that works out to be total 98,000. So please guide me properly, that shall I get rebate, U/S 88, on this Rs 98,000/- @ 20 per cent or @ 15 per cent as all the facts and figures given above? — Sunil Gupta Ans: You will be eligible for rebate U/S 88 of the Act @ 20 per cent on the amount invested by you i.e. Rs 98,000. Income, which is exempt from tax u/s 10, is not included for calculating the gross total income. Salary arrears Q: I have received pay arrears w.e.f. 1.1.1996 in 2004, with the result the total salary including arrears has gone more than five lakh. I want to split the arrears year wise so that the total income comes below five lakh in 2004 so that I may able to avail standard deduction for Rs 20,000/- only. My question is whether I am to split the arrears strictly year wise or I may split these in groups such as arrears of financial year 1999-2000, 2000-2001 can be jointly clubbed in the salary of 2001-2002 because of less tax structure? — Dr P.D. Jain
Ans:
It is not possible to split the arrears year wise since arrears of
salary would be taxable as income of the year in which such arrears are
received. This is as per the scheme of the Act. The entire amount shall
be taxable in the current year. However, you can claim relief u/s 89 of
the Act by making an application to your Assessing Officer in accordance
with Rule 21A & 21AA of the Income Tax Rules, 1962.
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