 |
|
|
FM unhappy over Murthy controversy
Airbus A380 to rely on Indian chip
J&K Bank plans revival of branches in PoK
Assocham signs MoU for agro park in North
Market Update
Tax Advice |
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
|
FM unhappy over Murthy controversy
Bangalore, October 23 He was reacting to the queries by newspersons after a Vijaya Bank function here. “I am unhappy that there is a controversy. Declining to comment on whether his resignation would have a direct bearing on the flow of investments, he said efforts were being made to persuade him (Mr Murthy) to reconsider his decision. “ I think efforts are already being made to request Mr Narayana Murthy to withdraw his resignation and continue as Chairman of BIAL,” he told reporters here. The Centre would clear a nearly Rs 15,000-crore package by year-end to "reinvent" and reconstruct the cooperative credit structure in the country, the Finance Minister said. He said the government would act on the report of the Vaidyanathan Committee, which has given a blue-print on short-term credit, and a consensus package has been sent to the states last week asking them to send their comments within 10 days. "It will cost us nearly Rs 15,000 crore but we are not deterred. This has to be done. Cooperative society movement has to be saved for the future generation. The money has to be found and spent," he said. He said the Vaidyanathan Committee has been asked to submit a report on long-term credit. Once the government gets the report, it would act swiftly, he added. Mr Chidambaram said the government would take fiscal and monetary steps to control inflation but added that he expected the impact of the recent fuel price hike on inflation to be over. He said the government expected inflation to rise by 1 per cent following the effects of the fuel price hike and “inflation has in fact risen by 1 per cent”. “But I think the effects of the (fuel hike) pass through are over. I hope there is no second-order inflation,” he told reporters. “We will take fiscal and monetary steps to control inflation.” Asked if the inflation is “big enough” to raise concern on the interest rates front, he said: “Wait until Tuesday. I don’t know what the Governor (of RBI) is going to do.” Asked if the interest rates would continue to be benign, Mr Chidambaram said he hoped so. “But if there is a fuel price increase and as a result of that certain amount of inflation, then it’s for the Governor (of RBI) to take steps.”— PTI
|
|
Airbus A380 to rely on Indian chip
New Delhi, October 23 "Co-developed and verified" by Indian IT major, HCL Technologies, this chip would be integrated into the system data acquisition computer of the aircraft, a top company official has said. The software would be used for real time advanced data communication needs of on-board critical electronic devices and the delivery to Airbus would happen by this year-end, HCL Vice-President and Head of Aerospace, Sanjay Ganju said here. "The delivery to Airbus for its A 380 programme will take place in the current year through the tier-1 partner of Airbus and that of Boeing will happen after the integration phase of the Dreamliner," he said. "The chip will also handle all network traffic across communication, navigation, surveillance and several other on-board subsystems, which are critial for the flight safety and operations," Ganju said.
— PTI
|
|
J&K Bank plans revival of branches in PoK
Srinagar, October 23 “If it takes off, the move would open up new opportunities for business and economic growth in the region which go beyond the balance sheet of the bank,” Bank Chairman Haseeb Drabu said today. The bank, with 30 per cent foreign institutional investors holding, has already applied to the Reserve Bank of India (RBI) for revival of license to reopen its branches at Mirpur and Muzaffarabad in PoK, he said. As the bank had branches in Muzaffarabad and Mirpur prior to partition, we have applied for revival of the old licenses instead of obtaining fresh licenses, Mr Drabu said adding that the bank was awaiting the RBI nod to go ahead.
— PTI
|
|
Assocham signs MoU for agro park in North
New Delhi, October 23 The chamber said setting up of the agro-park was part of its intensified focus on agriculture sector. “We have identified the agriculture sector as the specific agenda that we, as an industry chamber, would support,” newly-appointed Assocham President Anil Aggrawal said in an interview here. He said the chamber had been in touch with the European Union for collaboration, particularly with Italy, for setting up of agro-processing parks. “We have signed a memorandum of understanding with a consortium of Italian companies for setting up of a 100 acre agro-processing park in North India with an investment of about $80 to $100 million... As per the understanding the Italian consortium would invest 80 per cent while the state government have to shell out the rest 20 per cent,” he said. Mr Aggarwal said the final location was yet to be decided, but locations closer to Delhi, like Haryana, Punjab and UP were being considered.
— PTI
|
|
RBI’s credit policy may decide mood of market this week by Lalit Batra
The markets continued to remain weak and choppy last week. Indices, Sensex and Nifty, both lost 1.6 per cent for the week to close at 8,068 and 2,443, respectively. This has thus marked the third consecutive week of losses for the markets with cumulative losses of about 9 per cent. The mid-cap and small-cap segments of the market have been hit harder over this period with cumulative losses of 11 per cent and 16 per cent from the respective peaks that their representative indices made 3 weeks ago.
Inflation concerns in the United States have cast uncertainty over global emerging markets, including India. Higher US interest rates mean less foreign capital enters high-yielding but riskier emerging markets. In this backdrop, the FIIs have resorted to profit-booking and have already sold equity of more than Rs 1,400 crore during the current month. This week marks a host of major events like RBI’s credit policy on Tuesday, expiry of October 2005 derivatives contracts on Thursday and a number of key second quarter results. Volatility may remain high ahead of expiry of October derivatives contracts. The results declared have remained a mixed bag with some like HDFC Bank, Yes Bank, Satyam Computer reporting strong performances where as likes of ACC, Ranbaxy have fared poorly. Going forward, the last batch of the results to be declared this week hold the key to the future movement of the market. If the results are above expectations the market may recover, where as if the results fail to meet expectations the indices may correct further.
Yes Bank Yes Bank has declared encouraging results for the second quarter of the current financial year. The bank posted a net profit of Rs 14.3 crore against a loss of Rs 1.7 crore in the previous corresponding period. During the half-year, the bank posted net profit of Rs 25.5 crore, against a loss of Rs 2.8 crore in the previous period. Gross income was Rs 74.3 crore against Rs 5.7 crore the previous corresponding period. Interest rose to Rs 36.9 crore from Rs 35 lakh in the previous comparable period. Yes Bank is focusing its energies on a particular region, North and the National Capital Territory of Delhi, and on specific industries — food and agriculture, life sciences, technology, retail and engineering. The bank’s stock has already delivered handsome returns since its listing in July 2005 and the valuation still remain attractive. Investors with a penchant for long-term investing may add Yes Bank to their portfolio.
|
|
Interest from PPF account is tax free
by S.C. Vasudeva Q. Kindly clarify whether deposit in PPF scheme for financial year 2005-06 stands revised to Rs 1,00,000 from Rs 70,000? 2. If interest earned on PPF is non-taxable? 3. Whether on withdrawal of PPF, the drawn amount will be treated as income in year in which it is drawn? — Madhusudan Lal, Patiala A. The answer to your queries is as under: 1. The limit for the deposit of amount in Public Provident Fund account still stands at Rs 70,000. The said limit has not so far been raised under the scheme. 2. The interest earned on Public Provident Fund is not taxable. 3. The amount withdrawn from Public Provident Fund is not taxable at present. Joint account
Q. I have retired this year. I have deposited Rs 3 lakh in joint account of mine and elder son, same in mine and younger son will get Rs 19,980 from each account of post office MIS scheme as interest. I want to show Rs 9,990 in my return and same in elder son’s return of income tax. Balance Rs 19,990 in younger son who has no permanent account number please advice. — Surinder Kumar, Mansa A. The amount which you have deposited in fixed deposit with the bank in the joint account of yourself and your elder son as well as yourself and your younger son belongs to you and is probably out of your retirement benefits. The interest earned on such deposits would be taxable in you hands. In case you want to enable them to enjoy and be liable to tax for any income, it will be better for you to gift a specified amount to each one of them so that they become entitled to interest earned on such amount in their own right. In case your younger son does not have a Permanent Account Number he should apply for the same.
Capital gains & tax
Q. We have ancestral property in Patiala. The same was divided in four equal shares by our mother in 1974. Now I want to sell my share to my brother for Rs 4 lakh. My questions in this regard are as follows: 1. Will there be any income tax on the above deal, if any, how the same will be calculated? 2. My wife is a member of housing society and she has to pay to the society the construction cost. Is this cost can be paid by me from the above deal to avoid payment of income-tax. And what formalities I have to complete? 3. What are the other ways of saving the income-tax? — Sampat Kumar Dhawan, Chandigarh A. The answer to your queries is as under: 1. The division of the house property having taken place in 1974, the value of your share of property as on 01.04.1981 will have to be arrived at. The value of the property as on 01.04.1981 can be obtained from an approved valuer. The value so arrived at shall be indexed to the present date so as to arrive at the indexed cost. The index for the financial year 2005-06 is 497. The amount so arrived at shall be deducted from the sale consideration. The net amount will be the capital gain taxable in the year of the transfer of the property. 2. It would not be possible for you to save the capital gains tax in case the amount is paid to the housing society of which your wife is a member. It will be taxable at the rate of 20 pc plus education cess of 2 pc thereon. In case your total income, including the capital gains exceeds Rs 10 lakh you would also be liable to pay surcharge on income tax at the rate of 10 pc on income tax. 3. In case you want to save capital gains tax you can invest the amount of capital gains in the acquisition of a house within a period of 2 years of the date of transfer or you can also invest the capital gain in the construction of a house within a period of 3 years from the date of transfer. You also have a choice to invest the capital gains in bonds which have a lock-in period of 3 years.
Loan repayment
Q. I intend adding some extra space on the first floor of my residence, with a view to eventually renting it out to augment my monthly income. I am now 75. And I do not think any bank would advance me a loan to undertake such construction. Can I take a formal loan from a relative (son or any other) or even a friend or for that matter any third party etc. and pay it back in equated monthly instalments from the rentals etc? Kindly advise me on the taxation rules for raising such loan. Also, please guide me on the documentation required as per rules. — P. Mohan Sachdev, Dehra Dun A. Section 24 of the Income-Tax Act 1961 provides that where a property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital will be allowed as a deduction from the income chargeable under the head income from house property. The section does not prohibit the obtaining of loan from any particular source. You can, therefore, take a loan from any person, provided the loan is genuine and the interest thereon is actually paid to the person from whom the loan has been taken. The maximum amount of deduction allowable under this Section is Rs 1,50,000 where the property is acquired or constructed with borrowed capital on or after first day of April 1999 and such acquisition or construction is completed within three years from the end of the financial year in which the capital is borrowed. I may add that it would be better to execute a document evidencing the loan and other terms of payment such as interest, repayment schedules, security provided and recourse to available to the lender in case of non-payment. Further, you will also have to obtain a certificate from the lender specifying the amount of interest paid by you for the purpose of such acquisition or construction of property.
Capital goods
Q. Rate of VAT on capital goods is 4 pc. “Capital goods” means plant, machinery or equipment, including equipment for pollution control laboratory and cold storage, used in manufacturing, processing and packing of taxable goods for sale. Weighing machines are used in manufacturing process for:- Weighing & mixing various raw materials according to the desired ration and then for packing of finished goods for sale as taxable goods and in various other manufacturing processes. In view of above, kindly advice if weighing machines fall under capital goods. — D.P. Aggarwal, Ludhiana A. VAT is a state subject. Each state has different rules. In absence of the details with regard to the state in which manufacturing activity is being carried on, it is not
possible to reply to your query.
|
bb
Hydel projects Hero Honda McCain in Punjab Depot at Palwal
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
