 |
|
|
Indo-Pak trade may touch $2 b: Study Amalgamation of Sangli Bank with ICICI okayed Infosys in Nasdaq-100 club |
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Govt against selling Tide Water stake to ONGC Tata Indicom expands in HP Aviation
Notes Switzerland woos Indian travellers Investor
guidance Threshold limit of Rs 1.85 lakh for senior citizens, not for NRIs
|
|
Indo-Pak trade may touch $2 b: Study
Islamabad, December 9 The formal trade with India could be doubled to $2 billion after Pakistan's decision to increase the positive list of tradable products, according to a study conducted by secretary general of CUTS International Pradeep Mehta and its Pakistani partner Huma Fakhar, a Lahore-based lawyer. The study, quoted by local daily Dawn, said if there was closer economic cooperation, that could lead to peace. The researchers said they did not agree with the assumption that trade could not help in normalising relations between the two countries. According to the study, the US can promote trade between the two countries by offering duty-free imports, if one used the other's inputs in their exportable items to the US. Both sides to restore shipping services
New Delhi: After a gap of 30 years, India and Pakistan will restore cargo shipping services next week when they sign a revised protocol in the sector amid a flurry of high-level visits here from the neighbouring country in the coming days. The protocol, which will allow the vessels of the two countries to lift from each other's ports cargo of a third country, will be signed on December 14. It will also allow ships of third countries to lift cargo of India and Pakistan. Pakistan's Minister for Ports and Shipping Babbar Khan Ghauri will be here on December 13 to sign the protocol with his Indian counterpart T.R. Baalu, Pakistan's Acting High Commissioner Afrasiab said here today. This will be an amended version of the 1975 Shipping Protocol that prohibits vessels of the two countries from lifting cargo of any third country. The revised protocol, which is the amended form of an existing agreement, will also facilitate transit facilities for seafarers of either country for joining or disembarking from foreign flag vessels subject to possession of necessary valid seafarers identification documents and applicable transit visa. The revised version of the protocol, which was considered a confidence-building measure (CBM) after the 1971 war, is expected to help increase trade between the two countries. The signing of the revised protocol will take place amid increased high-level visits here from Pakistan.
— PTI |
|
Amalgamation of Sangli Bank with ICICI okayed
Mumbai, December 9 The amalgamation is subject to the approval of the sharesholders of ICICI Bank and Sangli Bank, the Reserve Bank of India and such other approvals as may be required. Deloitte Haskins & Sells, Chartered Accountants, the independent valuers appointed jointly by ICICI Bank and Sangli Bank, have recommended a share exchange ratio of 100 shares of ICICI Bank for 925 shares of Sangli Bank. The proposed amalgamation would result in issurance of approximately additional 3.45 million shares of ICICI Bank, equivalent to about 0.4 per cent of its existing issued equity share capital, the release said. The proposed amalgamation is expected to be beneficial to the shareholders of both entities. ICICI Bank will seek to leverage Sangli Bank’s network of over 190 branches and existing customer and employee base across urban and rural centres in the rollout of its rural and small enterprise banking operations, which are the key focus areas for the bank. The amalgamation would supplement ICICI Bank’s urban distribution network and enable the shareholders of Sangli Bank to participate in the growth of ICICI Bank’s strong domestic and international franchise. The amalgamation will provide new opportunities to Sangli Bank’s employees and give its customers access to ICICI Bank’s multi-channel network and wide range of of products and services, the release said.
— UNI |
|
Infosys in Nasdaq-100 club
New York/Bangalore, December 9 The largest electronic stock exchange of the US, Nasdaq Stock Market Inc, has announced the reshuffling in its Nasdaq-100 index by including Infosys, which was listed on Nasdaq seven years ago. The induction will be operational from December 18. Earlier, in November, in a bid to increase the liquidity of the company's shares in the US stock market and enter the coveted Nasdaq 100 index, the shareholders of Infosys Technologies had approved the proposal for raising over $1.6 billion through secondary offering of ADS. Market capitalisation of the domestic IT major has surged to $30.64 billion calculated as per the ADS price at the Nasdaq on December 8. "The Nasdaq-100 Index is one of the world's most recognised benchmarks that owes this distinction to its components: companies that are leaders in a diverse range of industries," Nasdaq Executive Vice-President John L Jacobs said. — PTI |
|
Govt against selling Tide Water stake to ONGC
New Delhi, December 9 ONGC had done due diligence for the company, which is a subsidiary of state-owned Andrew Yule, but its offer of Rs 50 crore was around half of what the government would get from the market, Heavy Industries Minister Santosh Mohan Deb told reporters here. "Now, the government share in the company would be sold through open auction in the next two-three months," The sale of government equity in Tide Water is part of a plan to revive its parent company Andrew Yule. Apart from its lubricant business, Andrew Yule would also shed its electronic business.
— PTI |
|
|
Tata Indicom expands in HP
Shimla, December 9 Tata Indicom would now cover towns of Poanta, Jamta, Nahan, Dhualakuan and Shambhuwala with the launch of the pre-paid services in the district, he said. He said the company's services were now available in 10 districts out of a total of 12 and only Kinnuar and Lahaul Spiti districts remained outside its network. — UNI |
by A.N. Shanbhag Threshold limit of Rs 1.85 lakh for senior citizens, not for NRIs Q: I am a non-resident Indian and senior citizen aged 66 years. I have rented out a shop for Rs 14,000 per month. My income is within tax-free limit as a senior citizen. But the tenant insist he must deduct 33.33 per cent TDS and only the rest will be paid to me. Is it a must for him to deduct TDS? — M. Khureshi A: Your tenant is absolutely right. He is legally required to apply TDS, irrespective of whether you are in the tax zone or not. However, the rate applicable to you is 30.6 pc. Only if the rent happens to be over Rs 10 lakh, the surcharge is applicable and then the rate would be 33.66pc (not 33.33 pc). We find that you can come into nil tax zone by contributing to avenues under Sec. 80C such as life insurance premium or by contributing to ELSS of MFs. You can claim the refund of tax, if due, by filing tax returns. Incidentally, note that the concession of increased tax threshold of Rs 1.85 lakh for senior citizens is not applicable to NRIs. Tax on stock options
Q: Over the last four years, I have earned some stock options from my company that I haven’t yet redeemed. However, I am confused with the terms such as vesting, exercise price etc. I just need to know if I sell the options am I liable to pay tax and if so how much. — R. S. Shroff A: An option is a right but not an obligation to purchase the share of the company at a given exercise price. You have to exercise your option to buy shares, till then you don’t own the shares. Vesting is gaining control over the shares or being eligible to exercise the option. For example, many companies allot options to its employees but the vesting schedule is evenly spread over say four years. This means each year you are eligible to exercise 25pc of the value of the options that are allotted to you. After having been vested with the options, they belong to you even if you leave the company. And by corollary, the unvested options you will lose. As far as taxation is concerned, your exercise date and price is your date and cost of acquisition respectively. If you exercise your options and hold the shares for over one year, you pay long-term capital gains, else the gains would be short-term. Many employees are given the facility of a cashless exercise, where the difference between the sale and exercise price is given to them at the end of the exercise period. In the case of a cashless exercise, the gains are always short-term capital gains. HUF constitution
Q: I have heard about the concept of an HUF in the Income Tax Act. Can you please throw some light on how can one go about creating an HUF in terms of paperwork and other formalities? — Ashutosh A: An HUF always exists. It is the hotchpotch that needs to be filled up with some assets. There are only three ways of achieving this objective : 1. Partition of a larger HUF. 2. Inheritance by a Hindu on succession of property from a male ancestor. 3. A Hindu impressing his self-acquired property with the character of a joint family property. Females do not have a right to stamp their self-acquired property as a joint family property. 4. Receive a gift or bequest from an outsider clearly indicating that the donee should hold the gifted property not as an absolute owner but as his HUF. There was yet another way. As per Hindu law, HUF partition can be partial or total. Where only certain members separate from the family or only certain assets of HUF are distributed, it is considered as a partial partition. A partial partition was very useful tool in view of the fact that it can give rise to several smaller HUFs. If such partitions were allowed to take place, it was possible that soon we may have more HUFs than Hindus. To restrict unabated use of this device, FA81 derecognised partial partitions retrospectively w.e.f. 31.12.78 by introducing Sec. 171(9) in ITA and Sec. 20(A) in WTA. The effect has been negated by FA98 by abolishing gift tax and now, we may again see spate of HUFs springing up. Unless the partition takes place by metes and bounds, the income earned by the recipients, as individuals or small HUFs, will be deemed to be that of the parent HUF. FIFO applicability
Q: One of my friends recently told me about the applicability of FIFO for sale of shares. I am not aware of this issue and hence could you explain how it works and what it means for small investors like me. — Banurao A: While claiming capital gains on shares sold, you have the right to pick and choose only if you hold the scrips in physical format. The care you have to take is to deliver the certificate from the correct lot. Unfortunately, this facility is denied to those who have submitted their certificates to Depository Participants (DPs). If you have dematerialsied your shares, then when you sell a particular scrip, the FIFO method (First In First Out) method will apply. Which means for a particular scrip, the first lot of shares dematted have to be compulsorily sold first, there is no option in this case. The confusing part is that this FIFO does not depend upon the date of your acquiring the scrip, but the date of your handing over the shares to the DP for demat. Moreover, after demat, the date of original transfer is lost. The method followed by the DP need not necessarily be followed for income tax purposes. If separate records are maintained as proof of the acquisition dates, the Department should accepts returns filed on such basis. The authors may be contacted at
wonderlandconsultants@yahoo.com |
Banking services in Bhiwani Forex reserves |
|||||
|
| 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 | |
