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Decision on EPF interest rate put off
Black marketing of steel goes unabated
Aviation Notes |
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Investor Guidance
WB kudos for Indian R&R policy
Patel reviews AI functioning
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Decision on EPF interest rate put off
New Delhi, July 5 The decision on revision in the rate of interest of the EPF corpus fund for the year 2008-09 was deferred till the next meeting of the EPFO. A high-level meeting of board members of Central Provident fund chaired by Union labour minister Oscar Fernandes decided that the industries with 10 or more employees will have to contribute towards the EPF accounts from now on. "The ceiling for the industries have been revised and now any industry with 10 or more employees will have to deduct EPF money of the employees," Fernandes said. Currently, industries with twenty or more employees are covered under the ambit of EPF. "It was a major decision and there are several industries that were required to be covered under the EPF. There was resistance from the part of the industries but then it was in the favour of employees," CITU leader and a member of the EPF board W.V. Vardharajan said. "We want that the rates should be revised. The current rate is not enough. The
government has to take the rising inflation into consideration before forming any opinion on the revision in the rate of interests," he said. The matters that came up during the meeting were decisions on constituting executive and sub committees and delegation of financial powers to executive committees. The board also took up the issue of industries faltering in paying the EPF money. These industries are putting up requests before the board about giving relaxation in damages, Vardarajan said. "There are cases when industries come to the board with such requests. We have not decided anything about it today but we will look into the issue," he said.
— PTI |
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Black marketing of steel goes unabated
Ludhiana, July 5 According to Inderjit Singh Pradhan, president, Chamber of Industrial and Commercial Undertakings, Ludhiana, CR coil should be available at the rate of Rs 46,000 per tonne, but it was being sold at a premium price of Rs 58,000 per tonne today. Similarly, HR Coils should be available for Rs 42,000 per tonne but was being sold for Rs 52,000 per tonne in the black market. He alleged that secondary steel producers were buying the steel at the rates fixed by the government, but were indulging in black marketing and hoarding. Enquiries made by The Tribune revealed today that there had been an increase of Rs 20,000 per tonne in the steel prices during the past six months starting from January 2008. MS rounds had risen from Rs 28,000 per tonne to Rs 45,000 per tonne. He said the secondary steel plants at Mandi Gobindgarh and Ludhiana were responsible for the black marketing and hoarding of steel materials. He informed that only 40 per cent of the industry, particularly engineering industry, was functioning and 60 per cent was lying closed because of hike in the steel prices. Pradhan and Avtar Singh, general secretary of the chamber, called upon the Union steel minister to take immediate steps to stop the uncontrolled price rise of steel.
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100 Indian trainee pilots duped in US
by K.R. Wadhwaney The Indian civil aviation, in doldrums on account of steep rise in fuel prices, has hit another turbulent air pocket. The short-listed IAS-cadre official, Naseem Ahmad Zaidi (currently India's representative at the International Civil Aviation Organisation (ICAO), who has been named as the next DGCA, has sought time, at least two months, before he can possibly assume his responsibilities. Since the ministry, for whatever reasons, is determined not to award a promotion to a departmental candidate, who has slogged and toiled hard for more than three decades, Kanu Gohain has been 'bestowed' upon third extension — this time for two months. Gohain, a knowledgeable director-general, was asked to continue on the afternoon of July 2, although his second extension ended on June 30. "We are headless", was the curt reply of officials on July 1. In the chequered history of the directorate, only one bureaucrat has worn the colours of the director-general with distinction. He was M.R. Sivaraman, who, apart from being IAS officer, was a qualified flier. There are several 'ifs' and 'buts' in Zaidi's joining. He still needs to be cleared by the Appointments Committee of the Union Cabinet. What happens if he is unable to join? Will Gohain's two-month extension be extended? His situation is virtually the same as that of H.S. Khola, who was only the deputy director-general when he was given the reigns of the department. He continued as DG when he became joint DG. He became full-fledged DG and got extensions. He survived corruption charges, including one from the American Flight Academy (AFC). While there is turmoil in this country, more than 100 Indian trainee pilots have been duped in California (USA). The firm, American School of Aviation, has closed down abruptly leaving all students in a lurch. The minister of overseas Indian affairs, Vayalar Ravi, is trying to help them out. The situation is tense. Each student had paid $40,000. The 10-month course had already extended to 18 months. What was shocking was that students were asked to vacate the hostel as school authorities had not paid the rental and other dues for water and electricity. The plight of NRIs in the US is the same as the trainee-hostesses who had joined the Flying Cats which has arbitrarily been shifted from Ludhiana to Chandigarh. Each student had paid Rs 90,000 for the training. All this has been happening because there is mushroom growth of such schools and travel agents. The government is no more than a mute observer. The problems in aviation industry will become more acute as airlines have decided to do away with the commission to the agents. Many travel agents will be forced to close their shops. Some big ones will survive and levy 'service charge' to passengers. It means passengers will have to pay more instead of getting any discount on national and international flights. The woes of student-pilots and student-air hostesses will increase because training facilities in this country are woefully inadequate. Those that are existing like Indira Gandhi Uran Academy are badly managed. The government must take measures that developments are all-round. What is the point in buying aircraft if there are no pilots and hostesses?
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NRIs can invest in Indian stock market, MFs
by A.N. Shanbhag Q: I am an NRI. Am I allowed to invest in the Indian stock market or only can buy mutual funds? — K Gupta A: As an NRI or a PIO, you are allowed to invest both in Indian stocks as well as Indian mutual funds. However, for investing in stocks you require what is known as a PINS permission from RBI. Under PINS, you can have only one NRE and/or NRO account linked to your demat account. All your trading activity has to be done through this specific bank and demat account. The PINS permission is acquired on your behalf by the bank in which you choose to have the bank and demat account. Also, as an NRI, you are not allowed to short sell, you have to take delivery and give delivery of buying and selling transactions, respectively. Investing in mutual funds on the other hand is fairly straightforward in as much as NRIs and PIOs have general permission of RBI to buy and sell units. In other words, for transacting in mutual funds, PINS is not required, you may invest just by filling out the form of the relevant scheme and attaching the cheque therewith. Note that for both, stocks as well as mutual funds, having a PAN is mandatory. NSS withdrawals Q: If my taxable income drops to near zero, can I start withdrawing from the NSS 1987 in amounts of Rs 2.25 lakh per year, which is the tax-free limit for senior citizens for FY 08-09? I have a total of Rs 8 lakh accumulated in NSS 87. What remains after I pass away. Can it be collected by my nominee or legatee. — C. Subbarao A: Yes, it would be an excellent policy to unlock the funds in NSS-87. As a matter of fact, if contribute Rs 70,000 to PPF, mainly to earn the 8% tax-free interest rather than earn the deduction u/s 80C, you can withdraw as much as Rs 2,95,000 (2,25000 + 70,000) without coming in the tax net. You can withdraw Rs 30,000 more by depositing this amount in other avenues u/s 80C. For instance, NSC pays 8% (tax-free in your case) whereas you are earning only 7.5% in NSS. Consultancy fee Q: I am a retired government servant, providing professional consultancy service. I have earned Rs 2.80 lakh as "Professional Consultancy Fee". I haven't maintained any profit and loss account for this service. How should I treat the fees earned as consultant in filing the tax return? Since I haven't maintained P&L account, is there any provision under which I can show some percentages of this fees under the head of "profit & gain from business" in computing my taxable Income? — C.M. Bhatt A: The income received from professional consultancy service will be taxable under the head “Profits and Gains from Business or Profession”. You will have to file your tax return using ITR-4. Under the new series of forms, there is no requirement of attaching any annexures like profit and loss account (P&L) etc. However, you may specify the expenses incurred by you in order to earn such income and then subject the net income after expenses for tax. In other words, though you do not have to create a formal P&L account etc. you will need to mention the expenses and income. In the absence of any records, you may refer to your bank pass book for ascertaining the expenses. Capital gains Q: Please answer the following queries - 1.If one earns capital gains from sale of house, can one save taxes by investing the same in a plot of land? 2. If one builds a house on that plot after 2 years can one save capital gains tax? Even if the house is rented out? If the house is sold? 3. Will capital gains from sale of a plot be treated as capital gains from sale of a house? 4. A house sold in the current year was renovated (improvement) 10 years earlier as per plans submitted to the municipality. However, there is no evidence of the expenses incurred. Can the owner consider the advantage of the renovation. (addl. expenses) to calculate the capital gains? — Tambe A:
1. No. Sec. 54 requires the capital gains to be invested only in a residential property. 2. The assessee can claim exemption u/s 54 by investing the Long-Term Capital Gains (not the entire sale proceeds) to purchase a residential house within 1 year before or 2 years after the date of sale of the old house. Alternatively, a residential house may be constructed within 3 years after the date. 3. Capital Gains from sale of a plot is not the same as capital gains from sale of a residential house for purpose of saving taxes. 4. We presume that you have got the permission given by the municipality on your record, and you have got proof of the fact that you have renovated the property and the extent to which you have renovated is there in the blueprint. In that case, you can obtain an official chartered valuer to assess your value addition and use this figure for computing the capital gains. Business loss in MFs Q: Can loss on investment in Mutual Funds (MFs) be used as business loss, the way we can do in the case of trading losses with respect to stocks ? — Riddhi A:
Generally not, unless you can prove that investing in MFs is indeed your business. This can be ascertained by examining the facts of the case — your past tax returns, whether you have borrowed money to invest in MFs etc. Normally, this is applicable only to share transactions as day trading is possible. In MFs, because of the loads etc. one cannot and should not trade frequently, so treating the loss as business loss may not be feasible. The authors may be contacted at
wonderlandconsultants@yahoo.com |
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WB kudos for Indian R&R policy
New Delhi, July 5 The presentation broadly outlined the factors and circumstances that led to a complete revamp of the earlier 2003 policy and the evolutionary process that heralded the beginning of a new era for the displaced. The process of formulation, which included extensive consultations with state governments, industry representatives, civil society organisations, social activists, was especially highlighted. |
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Patel reviews AI functioning
New Delhi, July 5 Civil Aviation secretary Ashok Chawla, Air India CMD Raghu Menon and other senior officials of the ministry and Air India were present at the meeting. The next review meeting is expected to be held within the next fortnight. Currently Air India and Indian are said to be in their worst
financial health. NACIL is so deeply in red that its loses have tripled during 2007-08 from Rs 688 crore
just a year back. |
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