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Govt announces bio-diesel purchase policy
Bharti Infotel under DoT scanner Market
Update Quarterly results to
separate laggards from performers
Cost inflation index
not applicable to STCG
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Govt announces bio-diesel purchase policy Faridabad, October 9 DiMohan Oils, a subsidiary of the Di Oils Plc — a bio-diesel manufacturing company of the UK — will set up a 8,000 tonne per annum capacity refinery at Chennai to produce bio-diesel in the country. “Considering the growing demand of energy to sustain the economic development, the new policy aims at setting up public-private-panchayati raj partnership to encourage bio-diesel production by jatropha cultivation on the wastelands,” Mr Aiyar said here today, after inaugurating the India’s first hydrogen-CNG filling station at the IndianOil Corporation’s R&D centre. The 5 per cent hydrogen CNG fuel has been developed by the IOC with Japanese and Korean collaboration as part of India’s efforts to look for alternative fuels. In the coming years, Mr S.Behuria, CMD, IOC, said: “The company hopes to introduce this alternative fuel at a competitive price.” On this occasion, an MoU was also signed among the 15 village panchayats of Faridabad and Mewat with DiMohan Oil Company and the IOC. Under the agreement, farmers will plant jatropha plants initially on 1,000 acres of land for DiMohan, which will later sell jatropha oil to the IOC at a minimum price of Rs 25 per litre. The minister said the oil companies-IOC, HPC and BPC would set up 20 purchase centres including at Bathinda in Punjab, Rewari in Haryana and Jaipur and Salawas in Rajasthan to procure bio-diesel from the private players. It will later be used to supply 5 per cent blended diesel in the market. Referring to the fate of ethanol-blended diesel project, Mr Aiyar said, it was facing problems “since the sugar industry was not coming forward to supply ethanol in desired quantity and at the mutually agreed price. But oil companies have floated new tenders and hope to move it forward soon.” Talking to The Tribune, Mr Steve Douty, Executive Regional Director, Di Oils said: “We will invest $2 million in India to set up a bio-diesel refinery at Chennai likely to be commissioned by 2007.”
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LPG import
India will begin importing additional quantities of LPG this week to tide over the shortage in domestic production created mostly by closure of a unit at Reliance Industries Jamnagar refinery. “The shortage was primarily due to shutting down of FCCU (LPG manufacturing unit) of Jamnagar refinery on October 4. We have contracted additional imports to make for the shortfall created because of the shutdown and supplies will start coming in this week,” Mr Aiyar told reporters here.
— PTI
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Bharti Infotel under DoT scanner
New Delhi, October 9 As a preliminary action, the Department of Telecom (DoT) has sent a notice, levying and recovering an amount of Rs 10.10 crore, besides asking the private service provider to submit an additional performance bank guarantee of Rs 3.6 crore.
— PTI
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Cost inflation index
not applicable to STCG Q. Unaware of the capital gain norms, we sold our plot after 32 months of its acquisition and there is a net gain of Rs 7 lakh after counting all costs, brokerage, non-construction fee paid etc. If this amount is counted as shortterm capital gain, it will fall in 30 pc tax bracket for us. Please guide if we can apply cost inflation index or not? And secondly, can this amount be invested in any scheme or bonds to save tax? — Neena Singh, Patiala A. As per the provisions of Section 2(42A) of the Act, the plot would be a shortterm capital asset and accordingly, the capital gain arising on its sale would be a short-term capital gain (STCG). You cannot apply the cost inflation index as it is applicable only in respect of longterm capital gain. Further, there is no scheme or bonds available to reduce tax in this case other than the investment option given under Section 80 C of the Act.
Tax liability Q. I am a government employee. My salary from all sources excluding income from shares is Rs 380,000 and total investment is Rs 100,000. I have earned from shares as per detail hereunder:- Share Amount Sold in Amount Profit purchased in November, 2003 12,000 April, 2005 31,740 19,740 January, 2005 25,670 May 2005 32,360 6,690 June, 2005 22,680 July, 2005 21,980 (-) 700 August, 2005 19,960 Sept, 2005 21,840 1,880 Please let me know my tax liability as per new slab and section for the assessment year 2006-07. — R.C. Sharma, Jalandhar A. It is presumed that the shares sold by you have been subjected to payment of Securities Transaction Tax (STT). Based on the above presumption, the gain in respect of the shares sold in April, 2005 would not be chargeable to tax. On the balance a reduced rate of 10 pc would be payable as tax. Accordingly, your tax liability would be as follows:- (a) Tax on normal income (2,80,000) 34,000 (b) Tax on short-term capital gain (6,690 (-) 700 + 1880) @ 10 pc 787 Total tax payable 34,787 Add: education cess 696 Total tax & cess payable 35,283 PPF account Q. The Finance Minister announced in Budget speech that Rs 100,000 investment in different schemes will qualify for deduction from the net income of the assessee. Please clarify the amount of investment in different schemes separately. Also please clarify what restriction was imposed on HUF PPF accounts. It is learnt that no new PPF account of HUF can be opened. — Pars Ram Bagi, Muktsar A. Section 80C of the Income Tax Act provides for the deduction in respect of aggregate of various sums referred to in Sub-Section (2) of the aforesaid Section as do not exceed Rs 1, 00,000. This Sub-Section refers to almost 20 type of deductions, which are allowable to be deducted from the total income. It is not possible to describe in detail the entire range of deduction on account of space constraint. However, a few of the deductions which are covered under Sub-Section 2 of the aforesaid Section are (i) Life insurance premium paid to effect or keep in force an insurance on the life of the assessee, his spouse and any child of the assessee and in case of Hindu Undivided Family of any member thereto. (ii) The contribution by an employee to a recognised provident fund or any provident fund to which the Provident Fund Act 1925 applies or any provident funds set up by the Central Government. (iii) To effect or keep in force a contract for deferred annuity on the life of the assessee or persons referred in (a) herein above. (iv) Subscription to saving certificate as notified by the Central Government (v) Contribution to Unit Linked Insurance Plan 1971 (vi) Payment of tuition fee (excluding any payment towards any development fee, donation or payment of similar nature) whether at the time of admission or thereafter to any university, college, school or other educational institution situated within India for the purposes of full time education of any of the persons specified in (a) herein above. Vide notification No. 2/8/05-NSII dated 20/5/05 it has been provided that all PPF accounts opened by HUFs and trusts i.e. persons other than individuals on or after 13th May, 2005 shall be treated as Void-ab-initio and immediate action should be taken to close such accounts. It may, however, be noted that the aforesaid amendment will not be applicable to the existing accounts. IT return Q. I am a parttime accountant and my gross income is Rs 1,10,000 per annum. Give clarification about Section 44AA. Whether I should maintain books of account. What I should write in my income tax return and how I should prepare my computation of income chart, if I file my return on the basis of without maintaining books of account. — Rajesh Kumar, Mukerian A. As per the provisions of Section 44AA read with Rules 6F you are not required to maintain any books as your gross receipts are less than the amount prescribed. However, I would advise you to maintain proper books of account, prepare your income and expenditure account and balance sheet and thereafter file your income tax return. Tax liability Q. I will be 65 in January, 2006. So, being a senior citizen during financial year 2005-06. Please advise how much tax I will have to pay as per present income-tax rate. My income is as under. Pension Rs 96,420 Interest from bank Rs 93,580 Total: Rs 190,000 — Dashan Singh, Mohali A. For financial year 2005-06, the maximum amount not chargeable to tax in your case would be Rs 1,85,000. Therefore, as per the details given by you, only Rs 5,000 would be taxable. On the said sum, the tax liability, including 2 pc education cess works out to be Rs 1,020.
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questions for tax advice. These should be brief, to the point and not
exceed 100-150 words. The letters should be sent to Tax Advice C/o The
Tribune, Sector 29, Chandigarh-160020 or emailed to:
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