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States told to woo NRI investment Reliance Retail keen on HP Canara Bank to set up call centre at Bangalore |
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PNB ratifies hike in lending rate Bhopal, August 12 Punjab National Bank today approved the proposal to hike its prime lending rate from 11.25 per cent to 11.50 per cent after discussing Union Finance Ministry's directive. "The Board of Directors of the bank met and ratified the recent decision to raise the prime lending rate to 11.50 per cent," Chairman and Managing Director of PNB, Mr S.C. Gupta said.
Punjab plans to develop airports Investor
guidance
Income from derivatives can be termed business earning
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States told to woo NRI investment New Delhi, August 12 The NRI remittances having crossed $23 billion as against $21.7 billion last year, the government has urged the state governments to take specific measures to attract NRI investment in priority areas, especially infrastructure sector. The sector requires over $150 billion investment over the next few years. According to Finance Ministry, Andhra Pradesh, Maharashtra, Kerala and Tamil Nadu, along with Punjab have succeeded to a great extent in attracting NRI investment. It is expecting that with almost all banks raising interest rates on NRI deposits, the deposits are likely to increase further this year. Andhra Pradesh is now receiving the highest amount of money remitted by NRIs to India, followed by Maharashtra, thanks to boom in the IT sector. According to Remit2India.com, the online money transfer portal for NRIs, Andhra Pradesh received 22 per cent and Maharashtra got 15 per cent of the total remittances to India estimated to be about $23 billion. Incidentally, Punjab which used to be major beneficiary of NRI remittances, has been left far behind due to small base of professionals migrating from the state. “A large number of NRIs have submitted proposals to invest in India, especially in IT, real estate, telecom, electrical equipment, pharmaceutical and other sectors, and have a major share in the total FDI of around Rs 60,000 crore with total investment over the past three years,” said sources in the Finance Ministry. Out of the $23 billion that comes into India, an estimated $8-9 billion comes from the US, and the next highest is the Gulf. The industrial chambers have also called upon the state governments to remove bottlenecks and set up separate cells to attract NRI investment. |
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Reliance Retail keen on HP Solan, August 12 According to sources, the Himachal Pradesh Horticulture Produce and Marketing Corporation (HPMC) is going to lease out its packaging and grading houses soon to private houses. A number of firms like Adnani Group, Reliance Industries, Dev Bhumi, Container Corporation of India's Frozen Foods Limited, ITC's Frozen Foods Limited have shown interest in HPMC's packaging and grading houses. Apart from this, Reliance Industries has also shown interest in the state cooperative marketing and consumer federation (HIMFED) godowns. The sources said it was planning to take 20 godowns on lease. Further, there was a proposal to lease 30 seed multiplication centres in the state to the private sector. The sources further revealed that Reliance was now surveying the Kinnaur area to explore the possibility of buying Royal Kinnaur apples. The Managing Director of the HPMC, Mr C.R.B.Lalit, said the Reliance Group had shown its
interest, but nothing had been finalised as yet. He, however, said its Jarol Tikker-based packaging and grading house had been leased out to ITC for a period of 10 months. This would fetch HPMC a profit of Rs 10 lakh from rent while another Rs 10 lakh would be spent on infrastructure development by ITC. |
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Canara Bank to set up call centre at Bangalore Chandigarh, August 12 The bank will also open 10 new branches in Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir by the end of this fiscal. This was stated by the bank's General Manager, Circle Office, Chandigarh, Mr Y.L. Madan, here today. He said the bank would open one branch each at Jammu, Amritsar, Mohali, Zirakpur, Manesar, Dharuhera, Sonepat, Hisar and two at Ludhiana. Mr Madan was talking to media persons at the launch of its first core-banking branch at Panjab University, here. He said by rolling out core-banking solution (CBS) across 70 branches this year, 80 per cent of the bank's business would be online. |
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PNB ratifies hike in lending rate
Bhopal, August 12 "The Board of Directors of the bank met and ratified the recent decision to raise the prime lending rate to 11.50 per cent," Chairman and Managing Director of PNB, Mr S.C. Gupta said. He said the Finance Ministry's letter of July 28, asking banks to take prior authorisation from respective Board of Directors before giving effect to a hike in PLR, was received on August 2 and by then the bank had already decided to raise the lending rate. "Ministry's letter was placed before the Board, which put its stamp of approval to raise the PLR by 0.25 per cent," Mr Gupta said. Asked whether the Board discussed any proposal to roll back hike in home loan rates, he said there would be no immediate change in housing loan interest rates and clarified that in PNB, PLR is decided by the Board, while its asset liability committee can take a decision on deposit rates and home loans.
— PTI |
by K.R. Wadhwaney
Punjab plans to develop airports
The Indian civil aviation continues to be mired by turbulance in air and turmoil on ground. There is little rapport between public and private undertakings; in-fighting between the GMR group and Airports Authority of India (AAI) continues with the AAI staff threatening to resort to ‘strike’. This unseeming conflict has caused hinderances in the fast development of the Delhi airport. Passengers and other users are the sufferers. The government, particularly, the Civil Aviation Ministry, stays a mute observer. Whatever is the scenario prevailing in the open skies, Punjab has chartered a fast track to march ahead in the vital aviation sector which leads to further prosperity. It has a right mix of words with actions for developing infrastructure in the northern India in general and Punjab in particular. Punjab in association with the International Punjabi Chamber for Service Industry (IPCSI) has prepared a long-term 10-year plan to build medium-size and small airports and revamp existing helipads. Aware that quick connectivity on domestic and international routes is the key to success, it has unleashed a detailed plan for movement through air and through train and road services. Its other two ambitious plans are commissioning of the Pathankot and Halwara airports and creation of an aviation grid for northern India. The Minister of State for Civil Aviation Praful Patel’s ‘dream-song’ of merger of Air-India and Indian, in the long run, may stay a mere ‘dream’ but he will find Punjab is ready for take-off as he chairs a technical session on civil aviation during the International Summit on Aviation, Tourism and Hospitality Industry at New Delhi on August 28. There is no doubt that Mr Patel is fired by enthusiasm to help develop aviation sector in the country. But his vision has to be all-round development instead of a few select areas like Delhi and Mumbai. Amritsar, for example, has been made an international airport but sadly, not enough is being done in development facilities for passengers and users. Cargo sector, for instance, remains unattended. If general aviation scenario is murky, the fare structure is murkier. Fares remain unstable on domestic and international sectors. They keep increasing in the name of ‘hike in fuel prices’. If the passenger has to pay, say Rs 30,000 on a long haul, he has to shell out another amount between Rs 10,000 and 15,000 in the name of taxes. What are these taxes? Why do taxes vary from airline to airline? Who are the beneficiaries? Why do airlines not provide break-up of these taxes? According to well-informed officials, airlines are more beneficiaries than others. This is done so that passengers don’t crib. The analysts say, it is a well organised ‘racket’. Mr Patel and his team should provide details on this vex tax structure. The Minister of State for Tourism Ambika Soni will inaugurate the one-day summit and many other renowned aviation personalities will attend. |
by A.N. Shanbhag
Income from derivatives can be termed business earning
Q: I am a retired government employee, with pension of nearly Rs 1 lakh per annum. I earned the same amount as long-term capital gains and Rs 1.5 lakh as short-term capital gains (STCG) and Rs 54,000 from intra-day trading and derivatives transactions. I also earned some amount from STCG from mutual fund. I usually do one or maximum two transaction per day in share market. How do I treat intra-day /derivatives gain of Rs 54,000? Will short-term capital be treated at 10 per cent or business income? — R. J. Mishra A:
The income tax department has yet to take a view on this subject. In the meanwhile, you may treat all your delivery-based transactions as exigible to provisions of capital gains. Income from derivatives may be taken as business income whereas day trading as speculative.
Tax on LIC policy
Q: I purchased Bima Sandesh (single premium) policy from LIC on June 28, 2001, (i.e. before April 2003) for basic amount of Rs 1 lakh for a period of five years. On June 28, 2006, I received the payment of basic amount of Rs 1 lakh plus vested bonus of Rs 50,366. I have thus received total amount being Rs. 1,56,366. Kindly advise tax treatment as to whether: Whether the full maturity amount is totally exempted from tax as per Section 10 (10D) as the single premium policy was purchased before April, 2003, i.e. before the amendment of Sec. 88(2A) - now Sec. 80C(3) – Finance Act 03 or Whether only vested bonus amount of Rs. 56,366 is taxable or full maturity amount i.e. Rs. 1,56,366 taxable? — Vedparkash Bhardwaj A: Under Section 10(10D), the following is exempt — any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than… any sum received under an insurance policy issued on or after the 1st day of April, 2003, in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured: The actual capital sum assured shall be computed as per the explanation of Section 80C(3). Now, the 80C(3) and the explanation — The deductions shall apply only to so much of any premium or other payment made on an insurance policy as is not in excess of twenty per cent of the actual capital sum assured. Explanation — In calculating any such actual capital sum assured, no account shall be taken of any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person. In your case, the policy was taken before April 1, 2003, and therefore, the entire receipt, including the bonus is tax-free. Had you entered the policy after that date, the basic sum of Rs 1 lakh would have been taxable because the one-time premium paid was over the 20 per cent mark of Rs 20,000 and in any case, the bonus would also be taxable.
House possession
Q: I am working as a lecturer. I had purchased a house in FY 05-06 and paid stamp duty and registration fees. I got possession in July 2006. Hence I did not avail benefit in the last FY 2005-06. Will I get benefit for this FY 2006-07? If the answer is yes, under which section is this benefit available? — Deepak Chaudhari A: Payment by an individual or HUF towards cost of purchase or construction of a residential house (not necessarily self-occupied) the income from which is chargeable under the head, ‘Income from House Property’, is allowable u/s 80C in respect of: Stamp duty, registration fee and other expenses incurred on transfer but shall not include: i) Admission fee, cost of share or initial deposit ii) Cost of any addition, alteration, renovation or repairs carried out after the issue of the completion certificate or the house is occupied by the assessee or it has been let out and iii) Expenditure where a deduction is separately allowable u/s 24. Such a house is required to be held for a minimum period of five years from the end of the FY in which its possession was taken. The deduction u/s 80C is allowed only when the income from house property becomes chargeable to tax. In other words, the construction should be complete, the flat should be ready for occupation and the municipal annual value is known. Such payments made prior to the year in which the property was completed, is not eligible for deduction. The interest payable against housing loans enjoys benefit u/s 24. However, the interests for the years prior to the year in which the property was completed, shall be deducted in equal instalments for the year during which it was completed and each of the four immediately succeeding years. Unfortunately, there is no corresponding provision for the capital repayment. The authors may be contacted at
wonderlandconsultants@yahoo.com
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