 |
|
|
HSBC to buy 73% in IL&FS Investsmart
Pvt Cos set to bid for new Mumbai airport
Jet to link San Francisco with Shanghai
Vodafone told to pay damages of Rs 50 lakh
JK Cement to set up plant in Chhattisgarh
|
|
Rel Infra dilutes 5 pc stake
Aviation Notes
Investor Guidance
|
|
HSBC to buy 73% in IL&FS Investsmart
Mumbai, May 17 The acquisition will enable HSBC to use Investsmart's platform for distribution of other financial products, including mutual funds, and help in accelerating growth of the group in the domestic market, HSBC India's CEO Naina Lal Kidwai told PTI here. "We would like to use the wide presence of Investsmart and its rich client-base to further tap opportunities in the market. The existing management and workforce of the company would be maintained," Kidwai said. HSBC will make an open offer for another 20 per cent share in Investsmart and this decision is likely to be announced on May 20. If the open offer gets full response, HSBC may go for delisting, Kidwai said. "We will take a decision on the delisting issue only after seeing the response for the open offer," he said. The acquisition, which will enable HSBC to grow its presence in the domestic brokerage space, will be performed through the group's Indian subsidiaries, including its security arm, HSBC Securities and Capital Markets (India), HSBC said in a statement earlier today. Investsmart has a market capitalisation of $300 million (around Rs 1,200 crore) and is listed on the premier stock exchanges in the country while its global depository shares are listed on the Luxembourg Stock Exchange. "Investsmart's retail brokerage business will be a great addition to our offering in India. The company's local expertise and strong management team will play a key role in strengthening our service proposition in India," Kidwai said. E*Trade Mauritius, a wholly-owned subsidiary of E*Trade Financial Corporation, had recently indicated its intention to exit from IL&FS Investsmart following losses it suffered in the US subprime turmoil. HSBC has a strong customer-base of 20 lakh in India and has operations in various verticals in financial services like banking, investment banking, capital markets, asset management and insurance broking. The bank has 47 branches and 170 ATMs across 26 cities in the country and has a staff-strength of over 33,000. Investsmart has operations in different segments, including equity and commodity broking and mutual funds distribution. It has a customer-base of 1,38,000 in the country and has 88 branches. — PTI
|
|
Pvt Cos set to bid for new Mumbai airport
Mumbai, May 17 The Maharashtra government has announced that a new international airport will be ready at Navi Mumbai by 2012. The ministry of environment and forests has given in-principle clearance for the new airport and work on it will start in the next 10 months, according to Chief Minister Vilasrao Deshmukh. While the Airports Authority of India will be providing aviation-related infrastructure like Air Traffic Control, the Navi Mumbai airport will be owned by the City Industrial Development Corporation and the private player will be chosen to construct the airport on a build, own, operate and transfer basis. Land for the new airport, measuring 2,750 hectares, was reserved right at the time it was conceived more than 25 years ago. The government will have to acquire some land though most of it is in the control of CIDCO, which manages the Navi Mumbai township. However, environmentalists had objected to the airport on the grounds that a part of the land was covered by mangroves and thus fell under the Coastal Regulation Zone rules. The central government has since amended the rules to accommodate the airport project, Deshmukh told reporters recently. Plans for the Navi Mumbai airport include an adjoining township and business-related facilities like hotels, a recreation zone and a business zone that aims to put it on par with international facilities like Singapore's Changi airport and the Hong Kong airport, say state government sources.
|
|
Jet to link San Francisco with Shanghai
San Francisco, May 17 "With the regulatory approval process now finalised for the new route, we are very pleased to enter this new stage of Jet Airways' North American expansion," Jet Airways founder and chairman Naresh Goyal said. With this launch, Jet Airways will become the first Indian airline to fly from San Francisco to Mumbai and only the second airline worldwide to fly non-stop from San Francisco to Shanghai. The flight from
the San Francisco International Airport will also be its fourth daily North American departure to India, following launches of service from New York's JFK and Newark airports, and Toronto Pearson International Airport, within the past year.
— PTI |
|
Vodafone told to pay damages of Rs 50 lakh
New Delhi, May 17 "We hold the telecom company guilty for indulging in highly unfair trade practice affecting crores of subscribers by adopting unfair and deceptive method to promote its business interest directly as well as indirectly," Commission president Justice J D Kapoor said. Vodafone had launched in July last year a scheme 'Baaton se banaiye sona, bees minute mein' under which it offered 10 gold coins and one bumper prize of Maruti SX4 through a lucky draw to the subscribers whose talk time was more than 20 minutes in a day. — PTI
|
|
JK Cement to set up plant in Chhattisgarh
New Delhi, May 17 The net profit at Rs 223.67 crore represents a rise of 26 per cent over the previous year. “The good performance is attributed to increased production, higher cement sales and improved all round efficiencies”, said Vinita Singhania, managing director, JK Lakshmi Cement. The proportion of blended cement increased to 77 per cent during the year, up from 67 per cent in the previous year, leading to increase in the volume of cement manufactured by the company as well as reduction in the cost of production. While cement production was up by 15 per cent during the financial year under review, the cement sales were up by 21 per cent by optimum production. The company is aggressively pursuing its value added business of Ready Mix Concrete (RMC) to increase profitability. During the year under review, five more RMC plants were set up by the company (each with a capacity of 60 cubic metre per annum) at Mohali, Surat, Baroda, Ahmedabad and the second unit at Jaipur. In the current financial year, the company plans to set up RMC plants at five new locations taking the number of RMC units to 14. The company is putting up a 2.7 million ton capacity greenfield project at Chhattisgarh entailing an investment of about Rs 1,100 crore. The project is scheduled to be commissioned by 2011.
|
|
Aviation Notes
By the time of June, July and around, the mess around airports is cleared, India's rapidly falling image in aviation sector would have dipped from projected ‘world class’ to ‘rural level’.
This is a reality because private developers have been provided far greater latitude in their work parameters than they should have been allowed. Another fact is that the developers have been allowed to display their attitude of couldn't-care-less because, with strong money muscle, they are cocksure that they will get away even when passengers are subjected to inconveniences, pain and indignities. Take the case of Indira Gandhi International Airport (IGIA). It has been the ‘domain’ of the GMR's Delhi International Airport Limited (DIAL), which has been making half-baked assurances when engaged with the renovation/
upgradation/ modernisation work. The naked statistics show that since DIAL's taking over, the over-all functioning has deteriorated and passengers' problems have multiplied. The main reason for this unprecedented passenger troubles is that GMR may be a renowned developer, but, sadly, it has taken more on its plate than it can chew. Apart from renovation and modernisation work in India and abroad, it has also been involved with Indian Premier League (cricket). The bottom-line is that every project gets into topsy-turvy mould, when bosses' focus gets divided from one project to another. To Planning Commission’s serious strictures, the DIAL authorities say they will construct a `temporary terminal building', as it was done in Doha during Asian Games in 2006. By the time this hurriedly constructed building is raised, the monsoon season would have set in the capital. For the last month or so, the DIAL officialdom has been talking about utilisation of the Haj terminal. Most of the time it will not be made available because of several other formalities and constraints. The moot point
here is that why should there be an independent terminal for only Haj operations? The minister of state for civil aviation Praful Patel may not have taken planning panel's observations kindly. But will he be kind enough to tell why should there be `jungle raj' existing at the IGIA? Since DIAL's assuming charge of the IGIA, there have been: All these problems are not because of congestion and construction work, but, because of inefficient and unprofessional functioning of the DIAL. The troubles and woes of passengers will multiply until minister and ministry bring some sense of discipline in the working of the private developers. |
|
Investor Guidance
Q: I have a query about tax rate for short term capital gains and tax rate for total income. Say, I have a long term capital gains of Rs. 60,000 and short term capital gains of Rs. 3,00,000. I have no other income. Now what should be income tax I should pay? Should it be 10% of Rs. 3,00,000 i.e. Rs.30,000? Or should I use the A: The LTCG of Rs 60,000 is tax-free. As regards short-term gains,
for a Resident individual or an HUF, where the total income as reduced by Short-Term or Long-Term Capital Gains on which tax is exigible falls below the tax threshold of Rs. 1,00,000 the gains would be reduced by the amount by which the total income so reduced falls short of Rs. 1,00,000 and the balance of the gains would be taxed at the rates applicable. In short, where the tax liability arises only because of inclusion of such capital gains in the total income, tax is levied on the excess over the minimum taxable limit. In your case, since you have no other income, you will be liable to pay tax @ 10% on Rs 2,00,000 (= Rs 3,00,000-Rs 1,00,000).
Please note that the 10% rate is applicable only for FY 07-08. From FY 08-09, the rate of tax on short-term capital gains is 15%. Rebate u/s 80C
Q: I find that I do not have enough funds left over by the end of the year to claim the full deduction of Rs 1 lakh under Section 80C. In this regard, my father has a housing loan (in his own name). I send money to him and he pays Rs 8,000 per month to the housing finance company. I had requested the company to transfer the loan to my account so that I can claim the interest deduction but they are not agreeable to do so. I myself pay house rent of Rs 7,200 per month; but the owner of house does not give any receipt. Can I claim HRA deduction or can I claim any deduction for paying the EMI on behalf of my father? A: 1. You will get the deduction up to Rs 1 lakh only if you contribute to the avenues covered by Sec. 80C; not otherwise. You may invest only so much that you can afford to. 2. The housing finance company is very much justified in not transferring the loan in your name. Even if it did, you are not eligible for the benefit since the house is in the name of your father. 3. If you do not have any proof of paying house rent, it would be difficult for Gains from PMS
Q: My query is regarding the tax rules applicable on gains from PMS (Portfolio Management Schemes). Does the amount of tax be decided when we redeem the PMS? Or do we pay short-term capital gains tax or long-term capital gains tax based on the churning of portfolio by the PMS Manager?
Is the tax rate as applicable to equity-oriented mutual funds? A: In the case of a Portfolio Management Scheme, the company that manages the portfolios (referred to hereinafter as the Portfolio Manager) undertakes transactions on behalf of its clients. The clients’ monies are pooled in the pool account of the Portfolio Manager and transactions are undertaken therefrom on behalf of the clients. In this regard, the Portfolio Manager merely acts in a fiduciary capacity with regard to the client's funds and all rights, liabilities and obligations relating to securities transactions are essentially that of the client. For this service, the Portfolio Manager charges an agreed fee to the clients for rendering portfolio management services. The Portfolio Manager ordinarily purchases or sells securities separately for each client. However, in the event of aggregation of purchases or sales for economy of scale, interest allocation is done on a pro rata basis. In other words, the Portfolio Manager may hold the securities belonging to the portfolio account in its own name on behalf of its clients (if the contract so provides) and in such an event the records of the Portfolio Manager and its report to the client indicate that the securities are held by it on behalf of the portfolio account. This is in conformation with the guidelines issued by SEBI vide Securities And Exchange Board Of India (Portfolio Managers) Regulations, 1993 as amended from time to time.
The rates of tax depend upon the view taken by the authorities as to whether this is a business or investment activity of the investor. We strongly feel that this should be construed to be investment activity since the person does not spend any time on decision taking process. PPF account
Q: My PPF A/C completed its term of 15 years and now I have got it extended for another block period of 5 years Kindly advise the tax status of my investments/earnings/withdrawals during the extended period of 5 years after the proposed EET regime is implemented. A: As far as PPF maturity goes, the FM clearly stated that it is the intention of the government to move to an EET based system of taxation. This means, investments like those under Sec. 80C which enjoy a deduction from income would be taxed upon maturity. As of now, there is no proposal to tax such investments. However, the FM has stated that he has appointed a committee which will devise the structure and form of an EET system and present it to the Parliament. Only when it is passed, there will be a semblance of clarity, hopefully. This includes ELSS (Sec. 10(38)), LIC proceeds (Sec. 10(10D)) etc. Rebate on home loans
Q: I had availed loans for the purpose of construction of house from SBI as well as from my employees co-operative society at a fixed rate of interest. I want to claim deductions for these loans. The house is completed within three years from date of acquisition. It is used for self- occupation. Is there any format for claiming the interest and principal for housing loan towards income tax. A: The interest payable on capital borrowed for acquiring or constructing a self-occupied residential property is deductible with a ceiling of Rs 1,50,000. The acquisition or construction should be completed within 3 years from the end of the year in which the capital was borrowed.
The assessee should obtain a certificate from the lender that such interest was payable on the amount advanced for acquisition or construction of the house, or as refinance of the principal amount outstanding under an earlier loan taken for such a purpose. Conveyance allowance
Q: Please clarify if the employee gets Rs 2,000 per month as conveyance allowance in his salary, what will be employer’s liabilities & what are the employee’s liabilities. A: Conveyance allowance is exempt up to Rs 800 p.m u/s 10(14). Therefore, employee’s liability on the same would be to the tune of Rs 1,200 p.m. The employer’s liability will come in the picture only if the conveyance allowance is taken under the ambit of Fringe Benefit Tax (FBT). It is our considered opinion that the FBT law does not envisage taxing such allowances. Hence employers would not have any tax liability on the same. The authors may be contacted at
wonderlandconsultants@yahoo.com. |
Markets closed tomorrow Tata Indicom scheme Morgan Stanley cuts 1,500 jobs CPCL profit up 98 pc L&T, GE Energy in pact Pantaloon’s investment plan NTPC No 1 workplace
|
|||||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
