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Chhattisgarh attracts Rs 20,000-cr investment
All-terrain vehicle developed for global meet
Bihar clears projects worth Rs 11,000 cr
Tatas to get land for car project by month-end
Tata Steel closes in on Corus
RIL to build India’s biggest port at Navi Mumbai SEZ
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Tesco should be allowed in retail: Mukesh
Tax
Advice
Market Update
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Chhattisgarh attracts Rs 20,000-cr investment
Raipur, October 8 The Vedanta Group last night signed a memorandum of understanding (MoU) with the Chhattisgarh Government and the state electricity board to set up a 1,200 MW power plant at Korba with an investment of Rs 5,000 crore. "We are also considering investing another Rs 10,000 crore for setting up a large aluminium plant in Chhattisgarh," Vedanta Group Chairman Anil Agrawal told reporters. Chhattisgarh is fast becoming a favoured investment destination for companies world over due to its huge natural resources and industrial peace, he said. Addressing a gathering after signing the MoU, Mr Singh said besides the Vedanta's proposals, Rs 5,000 crore worth of MoUs were signed on Friday with five private companies in cement and steel sectors. "We have succeeded in outsmarting Gujarat in attracting entrepreneurs and in the coming days Chhattisgarh will be number one state in not only proposals but also in terms of real investments," he said. Mr Agrawal was visiting Chhattisgarh for the first time after taking over the aluminium giant Balco, which was privatised by the government in 2001. Mr Agrawal said the Chief Minister has asked him to consider setting up a replica of Balco in the state. "I have already asked my officials to examine the prospect as the Chief Minister wanted us to have a green field aluminium plant in the bauxite-rich Chhattisgarh," he said. Mr Agrawal said he had requested the state government to take steps for setting up an aluminium park. After the disinvestment, Rs 5,000 crore was invested in Balco's expansion and modernisation since it was running on obsolete technology, Mr Agrawal added. — PTI
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All-terrain vehicle developed for global meet
Bangalore, October 8 The single-seat, four-wheeled vehicle designed by 11 mechanical engineering students of Rashtriya Vidyalaya College of Engineering (RVCE) will be India’s entry in the “Mini BAJA Challenge” organised in South Africa on October 12-13 by the Society of Automotive Engineers (SAE). RVCE will be the first college from Bangalore to participate in the challenge, and designing the ATV has helped the team “gain thorough knowledge about intricacies of designing and fabricating a four-wheeler and achieve hands-on experience in automotive manufacture and servicing,” Mr B. Anand, head of the Department of Mechanical Engineering, said. Run by a 300cc single-cylinder petrol engine, the ATV uses special balloon tyres to tackle extreme off-road conditions, said Mr R.S. Kulkarni, who supervised the project. The cost of the ATV came to nearly Rs 4 lakh, including the price of components like tyres and kill switch (to cut off power in case of an emergency) that were specially manufactured. The shock absorbers were imported from the US and Mexico. — PTI
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Bihar clears projects worth Rs 11,000 cr
New Delhi, October 8 “The new government in Bihar is committed to industrialisation and economic development and the state Cabinet as well as the State Investment Board have approved private projects entailing investments of Rs 11,000 crore,” Deputy Chief Minister Sushil Kumar Modi said here. Modi, who was here for a Planning Commission conference on infrastructure development, said the state Government was taking urgent steps to make environment conducive for private companies. “We are working on a variety of enabling factors like infrastructure development, concessions to industries and bringing down the crime rate,” he said. The government was investing Rs 3,000 crore on roads and was also spending on improving the dismal power situation. “At the moment Bihar is generating just 30 mw of power. We have now given Rs 650 crore to the NTPC to revive the Barauni and Kanti thermal power plants, which would give an additional 600 MW. Power generation from these plants will, in fact, start by March-April next year,” he said. — PTI
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Tatas to get land for car project by month-end
New Delhi, October 8 "Of the total 900 farmers, 700 have expressed their readiness to hand over their land. We will ensure that the land owners are compensated adequately," West Bengal Commerce and Industry Minister Nirupam Sen said here. The West Bengal Government is facing opposition for the project, which involves acquisition of 1,000 acres of farmland. The Trinamool Congress along with the Congress has been protesting against the land deal. The land would be handed over to the Tatas by October this year, Mr Sen said. He said the West Bengal Industrial Development Corporation (WBIDC), which had formally acquired the land, would hand it over to Tatas much before the deadline set by Tata Motors Managing Director Ravi Kant. — PTI
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Tata Steel closes in on Corus
London, October 8 The company is understood to have secured funding commitments from its advisers, Deutsche Bank and ABN Amro, as well as Standard Chartered, in the clearest sign yet that it is serious about the former British Steel. The Tata Group, the parent company, is also among a number of groups taking part in a visit to Britain this week by Prime Minister Manmohan Singh to boost trade ties between the two countries. If successful, it would be the biggest Indian takeover of a foreign company.
— PTI |
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RIL to build India’s biggest port at Navi Mumbai SEZ
Mumbai, October 8 The group plans to invest more than Rs 3,000 crore in developing the port, which is located about 10 nautical miles or 16 km south-east of Mumbai harbour. “We are in the process of planning and seeking environmental clearance from the Central Government for Rewas,” a company source said. With a draft (depth of the sea) of 20 metres, the Rewas port has proved to be a clincher for the Reliance Group, which is developing two mega SEZs across 35,000 acres in Navi Mumbai and expect a steady flow of cargo.
— PTI |
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Tesco should be allowed in retail: Mukesh
London, October 8 “Companies like Tesco and Wal-Mart would contribute to this economy hugely and keep local companies on their toes. We should welcome Tesco because it’s good for competition, and that’s good for Reliance,” Mr Ambani told The Sunday Times today. At the moment, Mr Ambani has a clear run while the government keeps global retail giants waiting to enter the country. Reliance is slated to open its first retail store in Hyderabad in the next few days.
— PTI |
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Tax Advice Q. I am working in a nationalised bank. My total taxable salary is Rs 4,40,000 for the financial year 2005-06. Total investment: Rs 1,00,000 (LIC premium, tuition fee, PF amount and housing loan investment) Besides above Rs 10,000 LIC Pension Plan (previously section 80CCC) Rs 9,500 Housing loan interest Rs 1,000 Donation P.M. Relief Fund Rs 3,000 Interest accrued on NSC purchased during financial year 2003-04. Further I have taken education loan for the study of my son. The loan is in the name of my son and I am a co-borrower. Payment made by me Rs.20,000/- from my salary towards principal and interest. My query is:- 1. Investment for LIC Pension Plan is separated to Section 80C or not. 2. Income tax benefit for repayment of education loan where I am a co-borrower. 3. Interest accrued on NSC purchased during 2003-04 Rs.3,000/- is taxable or not. 4. I have taken housing loan, conveyance loan and clean overdraft from Bank at concessional rate of interest whether the amount for difference in interest rate with S.B.I. as Perks is taxable or not. The amount of perks is yet not calculated. 5. Please calculate my total taxable income and amount of tax for financial year 2005-06 — Sarwan Singh Chawla, Ludhiana A. (i) The amount paid towards the LIC Pension Plan though covered within the overall limit of Rs.1 lakh provided by Section 80C of the Act is also covered by another Section 80CCC of the Act which provides for a limit of Rs 10,000. Accordingly, the contribution towards Pension Plan is allowable to the extent of Rs 10,000 and the deduction therefore allowable under Section 80C of the Act will have to be restricted to Rs 90,000. (ii) The provisions of the Act have been changed w.e.f. Assessment Year 2006-07 with regard to the repayment of education loan. According to the new provisions contained in Section 80E of the Act, the deduction is allowable to an individual in respect of any amount paid by him out of his income chargeable to tax by way of interest on loan taken by him from any financial institution or approved charitable institution for the purpose of pursuing his higher education. In view thereof, no deduction will be allowable to you in respect of sum borrowed by you for the higher education of your son. (iii) The interest accrued on National Saving Certificates is taxable. (iv) According to the provisions of Rule 3 of Income-tax Rules 1962 (the Rules) the value of benefit to the assessee resulting from the provision of any concessional loan for any purpose made available to the assessee or member of his household by the employer or any person on his behalf shall be a fringe benefit taxable in view of the provisions of section 17(2)(vi) of the Act. (v) On the basis of figures given by you your taxable income would work out at Rs 3,32,500 on which a tax and education cess of Rs 50,745 would be payable. The following presumptions have been made in this connection: (a) That the condition specified in Section 24 of the Act are complied with and, therefore, the interest on housing loan has been considered as a deduction from your salary income. (b) The interest accrued on NSC is taxable as income from other sources. Interest on NSCs
Q. Please advise me whether the interest accrued for the financial year 01.04.2005 to 31.03.2006 on N.S.C.s purchased up to 31.03.2005 can be treated as re-investment under the category "specified savings within the overall limit of Rs 1 lakh under Section 80C of the Income Tax Act for the assessment year 2006-07. The amount of interest accrued will, however, be included in the income. — Parshotam Lal, Ludhiana A. The interest accrued for the financial year 2005-06 is treated as reinvestment in the category of specified savings within the overall limit of Rs 1 lakh provided under Section 80C of the Act. PPF account
Q. I am a pensioner. My wife and son both are government employees. "My question is whether I can get tax benefit of PPF account of my wife and son (Rs20,000 each account) for the year 2005-06, if I deposit the amount in the PPF account of my wife and son under Section 80C. As the limit of Rs 70,000 as admissible to her/his (wife/son) will be completed in GPF account of her/his office as monthly deduction from the salary. — Madan Lal Singla, Chandigarh A. You would be entitled to a deduction of Rs 70,000 even if the amount that you deposit in Public Provident Fund is in the name of your wife or a minor son. Rebate on family pension
Q. I am a Punjab Government pensioner and also getting family pension. After reading your advice in The Tribune dated April 11, 2005, I claimed the benefit of deduction of Rs 15,000 from the family pension in the return for the Assessment Year 2005-06. My queries are: - a) Will the benefit of deduction of Rs 15,000 (or one third per cent) be available during the Assessment Year 2006-07 (of course in addition to overall exemption of Rs 1 lakh)? b) I could not claim this benefit during previous years and had paid income tax during the years 1999-2000 onwards. Can I claim refund now by filing revised returns for those years? — M.S. Kahlon, S.A.S. Nagar A. (a) The deduction of Rs 15,000 or one third per cent of the family pension whichever is lower is besides the deduction allowable under Section 80C of the Act. b) It would not be possible for you to revise the return of income for the Assessment Year 2000-01, as the same is time barred. Section 80C
Q. I am a Punjab Government employee. My income from salary for the financial year 2005-06 will be Rs 2 lakh. My son is studying in B-Tech and his annual tuition fee is Rs.45,000/-. My query is whether I can claim deduction under Section 80C on Rs 45,000 or max. limit for deduction is Rs 12,000 for tuition fee of one child, as earlier was the case. — Kamlesh Sethi, Faridkot A. The deduction under Section 80C of the Act has an overall limit of Rs 1 lakh. There are no sub limits in respect of various schemes covered under the aforesaid section except in case of Public Provident Fund and in case of policy taken for pension. The tuition fee paid for your son for his B-Tech course would be covered as an allowable deduction under section 80C of the Act provided the said fee is paid to any university, college, school or other educational institution for the purposes of fulltime education. |
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Market Update Markets eased a bit last week as traders and foreign financial investors (FIIs) resorted to profit booking. Last week’s trade was characterised by significant levels of volatility. Sensex lost 0.7 per cent during the week to close at 12,373, while Nifty lost 0.5 per cent to settle at 3569. While the major indices lost ground, the mid and small caps proved to be the gainers. It appears that given the fact that the large caps are currently fairly valued, investors are now starting to turn their attention to lower-rung stocks. Going forward, these stocks could finally be accorded their true values after being out-of-favour after the May and June crashes. Raymonds
Raymond is India’s largest and the world’s third largest integrated manufacturer of wool and wool-blended fabrics. It is the domestic market leader with around 80 per cent market share. The company is the second largest denim producer in the country with a capacity of 40 million meters. It has a widespread distribution network. India’s textile industry has been on a growth trajectory since the quotas were phased out. With policy initiatives in place, capacity expansions and India’s rising market share, I see rapid export growth opportunities in the sector. Raymond has entered in three 50:50 joint venture alliances with overseas entities. These are UCO NV of Belgium. UCO is a market leader in high-end denim in Europe. The second is with Gruppo Zambaiti of Italy, which is among the top three cotton textile fashion companies. The third alliance is with Lanificio Fedora of Italy. Raymonds is getting aggressive on its retail foray. The company plans to add “30 Raymond and 45 “brand only” stores in the current fiscal. Raymond has traditionally had the first-move advantage, be in establishing a presence in the domestic retail arena or entering into overseas alliances. While on the one hand the wider retail presence will continue to enable the company consolidate its domestic market share, on the other, the overseas alliances will give it an edge over players that continue to rely on their stand-alone marketing and distribution capabilities overseas for the export orders. Keeping in mind the company’s strong presence in the domestic woollen fabric and branded apparel industry and future growth prospects, I recommend a buy on declines with a medium-term perspective. |
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