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Centre to revive sick PSUs: PM Vodafone,
TPG-led group ahead in talks for Hutch Export of Rhino vehicle begins |
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Market Scan Tax Advice Ficci proposes package on biotech
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Centre to revive sick PSUs: PM Kolkata, December 24 ''The government is committed to modernisation and expansion of our PSUs and their long-term growth and viability... I am confident that many more PSUs will be revived as a result of our efforts,'' he said while formally laying the foundation for the modernisation of the IISCO steel plant at Burnpur in Bengal with an initial investment of Rs 9,600 crore by the Centre. The expansion programme for IISCO, which had been merged with Steel Authority of India Ltd (SAIL) for revival after a prolonged period of sickness, was an example of the government's intention and efforts The century-old British-owned plant which was taken over in 1972 by the Centre, had been virtually sitting idle during the past three decades due to labour problems which led to large-scale lay-off and retrenchments. But following the new modernisation programme, IISCO would be revived with an increased production of 2.5 million tonnes of steel by 2010 from about 1 million tonnes at present. Not only that several ancillary industries in and around the steel town of Burnpur and Durgapur, which were closed down, would now get a chance for revival. The Prime Minister called upon the steel barons and other industrialists to invest more in the steel industry since the demand for steel was increasing fast. He wished that Mr Ratan Tata and others should set up more new steel plants in the country instead of buying foreign companies. Dr Manmohan Singh said the UPA Government had decided in principle to allow more private investment in the revival of old and idle industrial units both in the private and public sectors. The Steel Ministry was drawing up a detailed scheme attention for the revival of central public sector steel companies. Steel Minister Ram Vilas Paswan said the government was also taking steps for the revival and renovation of Durgapur steel plant and Kulti Industries. A fresh attempt would be made for reviving all idle and sick public sector industries before finally handing these over to the private sector. Chief Minister Buddhadeb Bhattacharjee thanked the Prime Minister and Mr Paswan for taking steps to revive the IISCO plant.
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Vodafone, TPG-led group ahead in talks for Hutch London, December 24 “Initial talks with Vodafone and equity funds led by TPG have advanced, while the discussions with others are still preliminary in nature,” a source familiar with the development said, discarding reports that bids had been made for HTIL’s 67 per cent stake in India’s fourth largest mobile player Hutch-Essar. Even as the Indian media was abuzz with reports and speculation that HTIL has received five bids - from Anil Ambani group’s Reliance Communications, UK-based Vodafone, Malaysia’s Maxis, Egypt’s Orascom and Essar that holds 33 per cent stake in the venture - investment banking sources said: “Everything is just at a preliminary stage”. HTIL has mandated Goldman Sachs for the sale of its stake in the India venture, whose enterprise value is being estimated up to $17-18 billion. Sources said that TPG, reportedly having a tie up with Maxis too, is also mulling the option of joining equity funds, including US Blackstone and Kohlberg Kravis Roberts. Earlier, some of these funds were reported to have joined a consortium led by RComm, but there is no official confirmation. Asked for the reasons for the funds exploring the option of going on their own, sources said that purely as equity investors these funds are unhappy about the hype and hoopla being created on HTIL’s stake, as it was pushing up the valuation. It may be recalled that five equity funds had come together last year to acquire controlling 88 per cent stake in Danish Telecom firm TDC for $15.6 billion. Meanwhile, another investment banking source said that UBS, mandated by Vodafone as advisor for Hutch-Essar deal for its long association with the UK based telecom giant, could no longer be involved in arranging funds for RComm consortium. — PTI
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Export of Rhino vehicle begins Hoshiarpur, December 24 Mr Mittal said more shipments would be sent to Bangladesh, Sri Lanka, Indonesia, South Africa, Kenya and other West Asian countries soon. Four models of Rhino had been produced ranging from Rs 5.35 lakh to Rs 6.95 lakh. The company was producing 2,000 cars in a month at Amb in Una district. |
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Market Scan Investments in the stock market have both minus and plus points. On the plus side, it provides a better tax-free return to the long-term investors than bank deposits which have low interest rates and are taxable and depreciate by the inflation rate which at resent is higher than 5 per cent. On the minus side, the stock market investments are riskier, requiring skilful handling, knowledge and experience. Trading and speculation generally end in horrible losses. A retail investor can get good returns in case he/she remains a long-term investor with good knowledge of the stock market. Freshers who have no knowledge and experience should wait, watch and learn before they enter into the stock market. It will be more rewarding for them to invest a part of their investible funds through the mutual fund schemes rather than invest in the stock market as retail investors. Mutual funds have many advantages over retail investors: (a) Mutual funds have better facilities and knowledge about the stock market than the retail investors. (b) Mutual funds can churn their investments with twists and turns in the stock market which retail investors cannot do so unless they turn into traders. (c) The mutual funds provide high tax-free dividend returns to the investors while even long-term investors earn a dividend return of not more than 2/3 per cent. On an average, a good mutual fund scheme provides a net annual return of 10 to 20 per cent. But long-term retail investments may also get rewarded through the issue of rights and bonus shares. One should invest in a mutual fund scheme only after its NAV at least ranges between Rs 12 and 14 per unit. Investments in mutual funds also require expert advice. An investor should not be lured away by what the agents tell him/her. There are many diverse type of mutual fund schemes tailored to fit the requirements and preferences of investors. There are open-ended and growth schemes, tax-saver funds, leadership funds, small and medium Indian leading equity funds, debt funds, monthly income plan funds, various sectoral fund etc. One mutual funds scheme which is still listed on the stock exchange is the close-ended Morgan Stanley Growth Scheme. It was floated in 1994 and would terminate in October, 2009. Its NAV has been ranging between Rs 48 and Rs 51 per unit in recent weeks while on the stock market it can be picked up around Rs 42 per unit or so. This scheme was recommended in this column two years back when it was quoting around Rs 19 per unit. Investments in Morgan Stanley Growth around Rs 42/43 would be quite rewarding for it is expected that in October, 2009, its NAV would not be less than Rs 51 per unit. |
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Tax Advice Q. My sister is working as teacher in a private affiliated school since 1 year on permanent basis. The school authorities are showing Rs 8050 p.m. salary (as per C.B.S.E. pay scale) in their official record but are paying only Rs 5000 p.m. by taking receipt from her on full salary i.e. Rs 8050 p.m. She has many time reminded the school Director to issue her ICA Certificate as to file her Income tax return but to no vain, due to above technical problem. My sister wants to file her I.T. return as per school record of full salary, but do to Pvt. Job and fear of loss of job, she can’t press too hardly for issuance of this certificate on school admn. My question is now as under: 1. Due to
non-availability of this certificate, can she file I.T. return? 2. If yes, what can be the substitute for this certificate, if any declaration by her is suffice? Tuition Fee: My sister has income of 1,600-1,800 p.m. for 6-8 months in a year i.e. about Rs 35,000 per annum. My question are as under: 1. How can she show this income in her I.T. return. 2. Is any tuition fee receipt is required to be issue to students and whether any above receipt (copy) is required to be attached with I.T. return. — Ramesh, Ludhiana A The answers to your queries are as under: (a) On the basis of figures given in the query, the yearly salary income of your sister would be below the maximum amount not chargeable to tax in case of women assessees who are less than 65 years of age. Therefore, she need not file the income tax return. It seems on this basis no tax would have been deducted by the school authorities on the salary income of your sister. However, she must obtain a certificate giving the figure of the total salary paid to her which is Rs 8,050 per month. (b) Even after including the amount of Rs 35,000 per annum on the basis of the figure given in the query, her income would still be below the taxable limit of Rs1,35,000 and therefore she need not file the Income tax return even after including income from tuition fee. (c) It will be better to issue receipts for the tuition fee. Copies of receipts need not be attached with the return. Tax liability Q. I am a retired government female pensioner above 60 years of age. Please calculate my tax liabilities on the basis of the following details for the financial year 2005-06 and assessment year 2006-07. 1. Pension Rs 85,000 2. Interest on deposits
Rs 23,000 3. Long term
capital gain Rs 80,000 4. NSC. (VII - Issue)
purchased on 27.03.2006 u/s 80C Rs 5. Amount of exemption under the rules Rs 1,35,000 — Surinder Khanna A.
On the basis of figures given by you, you will have to pay tax on the longterm capital gain which would be reduced by Rs 27,000, being the difference between your taxable income and the maximum amount up to which no tax is payable by you (1,35,000 - 1,08,000 = 27,000) and would work out at Rs 53,000. Presuming that the longterm capital gain has been earned in respect of capital asset other than the shares, the tax @ 20 per cent plus education cess of 2 per cent would be chargeable on such capital gain. The amount payable would be Rs.10,812. The computations have been made on the presumptions that you are not a senior citizen. Tuition fee Q. We are an employed couple. We are paying a tuition fee of Rs 1,10,000 for our daughter studying MBBS at Manipal (Karnataka). Can we both share the benefit of Section 80C. If yes, then how? If we plan to share the fee as 60:40 ratio. What procedure can we adopt and what proof will be required. — Dr Sukhdev Singh, Barnala A. Section 80C of the Act provide that in computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of the section, the whole of the amount paid or deposited in the previous year, being the aggregate of sums referred in the section as does not exceed Rs1,00,000. Clause (xvii) of the sub-Section 2 of the said section provides for the deduction of any amount paid as tuition fee (excluding any payment towards the development fee or donation or payment of similar nature), whether at the time of admission or thereafter, to any university, college, school or other educational institution situated within India for the full-time education of any two children of such individual. On the basis of the above provision, it should be possible for both of you to claim the deduction of tuition fee if the same is paid by each one of you from your own sources. I may add that claim for deduction under Section 80C of the Act will have to be within the overall limit of Rs 1,00,000 as provided by the aforesaid section. Senior citizen Q. I am a senior citizen, aged 70 years. My income from all sources is less than Rs 1,85,000. Am I required to submit my income tax return when my tax liability is nil? Kindly advise. — B.M. Sethi, Panchkula A. In accordance with the provisions of Section 139 of the Act, in case of a person whose total income exceeds the maximum amount not chargeable to tax without giving deductions under section 10A or section 10B or section 10BA or Chapter VI-A then he is required to file his return of income. This provision has been introduced so as to enable the tax authority to verify the correctness of the claims made under the aforesaid section. In your case if your total income is less than Rs 1,85,000 without claiming any deduction under Chapter VI-A of the Act (e.g. deduction under section 80C, 80D etc. etc.) you need not file the income tax return. |
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Ficci proposes package on biotech New Delhi, December 24 Ficci has also stressed the need to give a fiscal boost to the production and import of biofuel and ethanol to encourage large scale use of the environmentally-friendly fuel. Noting that the expenditure incurred on clinical trials by companies is currently not accepted as an expense to be included for weighted tax deduction at 150 per cent under Section 35 (2AB) of the Income Tax Act, 1961, Ficci has recommended that tax benefit should also be extended to expenditure incurred on clinical trials for all companies. Since expenditure incurred on scientific research is allowed, there is no reason why it cannot be extended to clinical trials as well, it said. The government may consider providing relief to recognised biotech, pharmaceutical and clinical research companies by giving a blanket permission, of say up to Rs 1 crore per annum, for import of laboratory consumables. These can be certified as non-hazardous, if required, it said. At present there is a lack of technical expertise at the airports and ports to handle the biological materials. Customs officials may be updated regularly. |
YES Bank IAFL plans Su-Kam eyes US |
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