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NDA’s share deal with IFFCO under scanner Reliance makes retail foray ON THE PATH OF REVIVAL: After years of uncertainty, the revival of the 165-year-old Great Eastern Hotel has begun with the start of Rs 120-crore renovation work by the Bharat Hotels group on Sunday. The heritage hotel was expected to be restored to its original glory with the same facade in little over a year, a senior member of the management, said. “We plan to throw open the hotel in early 2008 as a de luxe five-star hotel renamed as Grand Great Eastern Hotel,” he said. Bharat Hotels had bought Great Eastern from the West Bengal Government last year for Rs 52 crore. — PTI Hero Honda to focus on 100-cc bikes |
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International Cars to invest Rs 1,000 cr
in Himachal plant Indians building Millionaires’ Row Tax
Advice Tax rebate on PPF available only to the first holder
IOC’s Q2 net up three-fold
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NDA’s share deal with IFFCO under scanner
New Delhi, October 29 Taking up the issue with the Prime Minister’s Office (PMO), Fertiliser and Chemicals Ministry under the charge of Mr Ram Vilas Paswan is seeking a thorough probe by an independent agency into the matter. While the government is questioning the amendment to the bylaws by IFFCO for taking the government’s equity at par value, the cooperative is holding firm that it has done no wrong. The entire amendment process of the IFFCO bylaws right from August 19, 2002, when the Multi-state Cooperative Societies Act was enacted and the bylaws amended by the general body, representatives of the Department of Fertilisers and their nominee Directors on the Board of IFFCO had a pro-active role in the amendment, Mr G.M. Saxena, Director (Cooperative Development), IFFCO, said. IFFCO had repatriated 69 per cent of the government’s stake between December, 2002, and June, 2004, at the face value of Rs 289 crore as against an estimated net asset value of nearly Rs 1,950 crore at that time and gained unrestrained control of the society. The Finance Ministry, through a letter, has raised strong objections to the manner in which the government equity was repatriated by IFFCO by amending the bylaws without prior government approval, which caused a loss of Rs 1,650 crore, highly placed sources said. The Ministry of Fertilisers had referred the matter to the PMO in June this year and the same was considered by the Committee of Secretaries and it was decided that a legal opinion would be taken in the issue. The Department of Fertilisers had noticed several irregularities in the entire process, casting a strong shadow of doubt on the intentions of the IFFCO management for gaining unrestrained control of the society after returning full government equity. This implied that IFFCO was no more subject to the CAG audit or the CVC’s vigilance mechanism. Since the unilateral repatriation of government equity has been done under the shield of misusing an amendment, and has deprived the government of substantial financial benefits, this matter cannot be treated as closed, sources in the Fertiliser Ministry say. It is, therefore, necessary that the matter should be probed through an independent agency, which could, inter alia, examine the legal issues involved and come up with definitive conclusions on how the matter can be resolved, government sources said. According to IFFCO, the repatriation has been done with the full consent of the Department of Fertilisers after unanimous decision in the Board. The entire capital has been accepted by the Department of Fertilisers without any protest or any condition attached to it and this had been presumably done within the ambit of law, Mr Saxena said. The Ministry of Fertilisers has said that the last tranche of Rs 52 crore was returned just before the new government took over in 2004 but ex-post facto approval of the minister was sought for accepting the repatriation. However, the minister did not accord approval, the ministry
said. — PTI |
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Reliance makes retail foray
Hyderabad, October 29 The store 'Reliance Fresh', the first of the many pilot formats that RIL hopes to roll out starting November 3, would sell only vegetables and fruits sourced from farmers through agri hubs set up by the company, besides other edibles and kitchen equipment. This format would be followed by launch of a nationwide chain of hypermarkets, supermarkets, discount stores, department stores, convenience stores and specialty stores at an investment of over Rs 25,000 crore in the next five years. "The (Reliance Fresh) store is for everyone... prices are affordable for everyone," Reliance Industries Ltd President and Chief Executive (Foods Business) Gunender Kapur told reporters after unveiling the Reliance Fresh brand. He, however, declined to specify how affordable the prices would be vis-a-vis the neighbourhood vegetable market. The launch of the neighbourhood store here would be followed by the opening of mega stores in Mumbai, Delhi and Ahmedabad, besides luxury stores across the country and the company is already in talks with global luxury brands such as Gucci and Calvin Klein and some Japanese consumer durables brands in this regard. The store represents the front-end of RIL’s farm-to-fork project, which involves procuring farm products through agri hubs, establishing a supply chain and providing logistics and finally retailing the products.
— PTI |
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Hero Honda to focus on 100-cc bikes
New Delhi, October 29 Hero Honda’s plan to strengthen its portfolio in the low-margin 100-cc segment comes at a time when its close rival, Bajaj Auto, which is gradually eating into its market share, has made it clear that it would ultimately exit the segment and make 125-cc as its entry-level portfolio. Mr Munjal said the company had planned a slew of launches to strengthen its offerings in the market. The bikes to be launched would include a 100-cc motor cycle and one in the premium segment. The 100-cc segment has been the mainstay for Hero Honda where it dominates. As it pumps in new models in the market, the company is also ramping up the production capacity to meet possible
demand. — PTI |
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International
Cars to invest
Mumbai, October 29 The plant will have a production capacity of 24,000 units per annum, ICML Managing Director Deepak Mittal said here. “We would invest Rs 1,000 crore in the next two years for a plant to be set up in Himachal. Currently we have pumped in Rs 300 crore to begin with and are producing 100 vehicles per month,” he said. The MUVs would be branded as “Rhino-Rover” and launched across the country from January, 2007. The vehicles are currently being sold for test-marketing in Punjab and Haryana. The plant spread across 50 acres would have an installed capacity of producing 24,000 units per annum. “ We aim to export 20 per cent of this to South-Asian countries and Africa,” he added. There would be two models with a price tag of Rs 6-7
lakh. — PTI |
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Indians building Millionaires’ Row
London, October 29 Homes worth more than £1 million on Astons Road are being snapped up and then demolished to make way for mansions worth up to £5 million, complete with indoor pools, sweeping marble staircases and extravagant landscaped gardens, The Sunday Times reported. The popularity of “The Astons” is such that the mention of the road’s name is thought to be enough to impress both potential business partners and brides-to-be. According to locals, nine out of 10 new buyers on Astons Road are Indians, eager to take advantage of the area’s respected private schools and some of the best golf courses within the motorway. Just about two decades ago their parents were living in dilapidated flats in nearby Southall but the new generation has moved out to the leafier areas such as Moor Park, the part of Northwood where Astons Road is situated, the report said. Mr Keith Vaz, Chairman of the National Ethnic Minority Task Force and MP for Leicester East, said: “What the Moor Park community shows us is the real nature of what happens to first generation immigration. “The stereotype view, that they are dependent on the state, is proved to be a myth because they have shown through hard work, dedication and enterprise that they are first-class contributors to our country,” he
said. — PTI |
by S.C. Vasudeva Tax rebate on PPF available only to the first holder
Q: My wife and I are senior citizens. In February 2006, we have opened a joint PPF account with SBI, Gurdaspur, and deposited Rs 2,50,000 in the account. Can we get a rebate of Rs 70,000 each u/s 80C separately in our income tax returns? — Harbhajan Singh,
Gurdaspur A: The PPF account can be opened by an individual in his own name or in joint name. The joint holder of the account is not entitled to deduction u/s 80C of the Income Tax Act 1961, as the facility of adding a joint name is only to enable the joint holder to claim the amount in the case of death of the first holder without any difficulty. Accordingly, in my opinion the deduction to the extent of Rs 70,000 will be allowed against your total income. No deduction can be allowed to your wife in respect of the amount deposited in a joint account with your name as first holder of account. In case your wife wants to claim a deduction u/s 80C against her income, a separate account in her name will have to be opened. Insurance proceeds Q: In 2001, I took two Bima Nivesh insurance policies (one-time premium) of 6 lakh for which premium was less. Now by the end of this year (after 5 years) I will get 9,17,000. Please tell me: 1. Is the excess amount of Rs 3,17,000 taxable? 2. If yes, can I show this amount in two years i.e. assessment year 2006-07 and 2007-2008? 3. Is there any way to save tax by investing in NABARD? I am 74 years old and my income from fixed deposits is Rs 1,30,000. Due to taking excess antibiotics, my vascular vein got damaged resulting in the imbalance. While walking I have to hold somebody’s hand or along with the wall, that too not much. Can I take any rebate for this and how? I am also a heart patient. — Ms Arora A: The amount received on the maturity of Bima Nivesh policies is exempt from tax. The question of taxability of the amount received therefore would not arise. The deduction against the total income u/s 80U of the Act is allowable in case a person is suffering from disability as defined in the said section. The individual claiming a deduction under the said section has to furnish a copy of the certificate issued by the medical authority in the manner prescribed by the rules. The disability as defined in the said section includes blindness, low vision, leprosy-cured, hearing impairment, locomotor disability, mental retardation, mental illness. Tax liability Q: Kindly provide my income tax liability for the financial year 2005-06. Gross income from salary (2005-06): Rs 2,70,000
NSC purchased on 4.02.2000: Rs 35,000 Matured on 4.02.2006: (Rs 64,000 approx) NSC purchased on 17.02.2005: Rs 10,000 GPF: Rs 24,000 GIS: Rs 1,440 PPF: Rs 25,000 LIC: Rs 12,614 Children education fees: Rs 5,000 Saving bank account interest: Rs 1,666 TDS: Rs 9,000 1. Whether interest on NSC purchased on 04.02.2000 and matured on 04.02.2006 has to be shown in income? 2. Whether interest accrued on NSC (6th Year) has to be added in income? 3. If yes, whether it is eligible for deduction u/s 80C? 4. Whether interest accrued on saving bank account has to be added in income? — Rajesh Kumar, Patiala A: On the basis of the figures given by you, the total income works out at Rs 210,371 and the net tax payable would work out at Rs 8,415. While calculating the income it has been presumed that each year’s accrued interest on NSC’s has been included in earlier year in your income. Further, for the purpose of computing your total income, the interest accrued for the current year is included in income under the head other sources. The replies to other queries raised by you are as under: 1. The proportionate amount of interest on NSCs for the period 01.04.05 to 040.02.06 will have to be included in the total income for the assessment year 2006-07. This is on the presumption that accrued interest for each year has been included in the total income of that year. In case this presumption is not correct the entire interest received during the year ended 31.03.2006 will be included in the total income for the financial year ended 31.03.2006. 2. The interest accrued on NSCs should be included in the total income of the each year. 3. The amount of accrued interest is allowable as deduction u/s 80C of the Act subject to the maximum limit prescribed in the said section except for the last year. 4. The interest on saving bank account is includible in the total income. Gift tax Q: Please enlighten us on the following points: A. Can a husband give gift of cash/property to his wife? The interest of the gift and the procedure involved therein. B. In the event of a senior citizen/PAN holder: Who will file the return/returns on his behalf? How will the interest on deposits like MIS. (post office) account, RBI bonds and other bank deposits etc. occurring in the ensuring years, till maturity be treated under these circumstances? — Rajni, Chandigarh A: The answers to your queries are as under: A. The husband can gift any amount of cash or an immovable property to his wife. There is no limit to the extent of which such gift can be made. However, as provided by section 64 of the Act, the income derived from such gifted property will be includible in the income of the donor i.e. the husband. The gifted property would also form part of his wealth for the purpose of computing the net wealth of the donor. B. In case of a senior citizen who is not alive and his estate has not been distributed amongst his legal heirs which estate has an income above the taxable limit, a return of income will be filed by his legal heirs in respect of such an income. The entire income arising to the estate of the deceased will have to be included for the purposes of the taxability of the income. This procedure is for the interim period and after the estate of the legal heir is distributed to the legal heirs, the legal heirs would include the income arising from their share of such estate in their own income. Wealth tax Q: My capital in books is of Rs 22,00,000 and my stock is of Rs 18,00,000. Now my questions are: (a) Will I be liable to pay wealth tax as my capital is above Rs 15,00,000? (b) Will I be liable to file return also? (c) What is included or not included while calculating my wealth? (d) Will be stock as above be deducted from by capital thus remaining as Rs 4,00,000 only? Please clarify, as I have to file the return if I am liable to do so. — Gurpreet Singh, Ropar A: The wealth tax is payable on the assets specified in clause (ea) of section 2 of the Wealth Tax Act 1957. The assets so covered are: (i) Any building or land appurtenant thereto (hereinafter referred to as house), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise, including a farm house, situated within 25 km from local limits of any municipality (whether known as municipality, municipal corporation or by any other name) or a cantonment board, but does not include- 1. a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than Rs 5 lakh; 2. any house for residential or commercial purposes which forms part of stock-in-trade; 3. any house which the assessee may occupy for the purposes of any business or profession carried on by him; 4. any residential property that has been let out for a minimum period of 300 days in the previous year; 5. any property in the nature of commercial establishments or complexes; (ii) motor cars (other than those used by the assessee in the business of running them on hire or as stock-in-trade); (iii) jewellery, bullion and furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals: Provided that where any of the said assets is used by the assessee as stock-in-trade such asset shall be deemed as excluded from the assets specified in this sub-clause; (iv) yachts, boats and aircrafts (other than those used by the assessee for commercial purposes); (v) urban land; (vi) cash in hand, in excess of Rs 50,000, of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account. In case net assets held by you are in the nature of assets described above, the value thereof will be includible in the total wealth. The wealth tax is payable if the net assets are more than Rs 15,00,000. It is evident from the fact in the query that you do not hold any asset of the nature described herein above. In my view, therefore, you are not liable to file a wealth-tax return.
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IOC’s Q2 net up three-fold
Mumbai, October 29 Total income of the company for the quarter under review grew by 43.63 per cent at Rs 58,384.48 crore as against Rs 40,647.48 crore in the year-ago quarter, the company said. For the first six months of the fiscal ended September 30, IOC's net profit stood at Rs 4,831 crore. Dr Reddy’s Labs net up
Leading drug-maker Dr Reddy’s Laboratories Ltd has reported more than a two-fold increase in net profit at Rs 272.66 crore for the quarter ended September 30 as compared to Rs 107.54 crore for the corresponding quarter last year. Total income (net of excise) rose to Rs 948.96 crore for the second quarter in 2006-07, up by 74 per cent from Rs 543.05 crore in the same quarter a year ago. The group reported a consolidated net profit (attributed to the shareholders of the parent) of Rs 292.50 crore for Q2 2006-07 whereas the same was Rs 90.91 crore during Q2 2005-06. The consolidated total income stood at Rs 1982.60 crore for the second quarter this year. HPCL profit Rs 1221.98 cr
Hindustan Petroleum Corporation Ltd (HPCL) has posted a turnaround in its net profit at Rs 1,221.98 crore for the quarter ended September 30 as compared to the net loss of Rs 22.14 crore in the corresponding quarter last year. The total income of the company increased by 45.18 per cent to Rs 24,559.99 crore for the quarter ended September 30 as compared to Rs 16,916.85 crore in the year-ago period.
— Agencies |
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