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Over 100 Cos defy bear hug
We are facing digital doomsday
Indian firms losing more on US bourses
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Tax Advice
‘Slowdown in world economy to impact growth’
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Over 100 Cos defy bear hug
Mumbai, July 6 While a few of these companies have registered a growth of nearly two-fold or three-fold, a number of them have seen their values growing by more than 10 per cent with an average surge of nearly 15 per cent. The stock market has been mostly on a downslide for close to six months now and its benchmark Sensex as well as total valuation has dipped by close to a third since January 10. The barometer index, Sensex, had scaled a lifetime high of 21,206.77 points on January 10 before embarking on a southward journey losing close to 8,000 points till now. A number of large-cap companies have seen their valuations dip sharply - with a loss of close to Rs five trillion by companies headed by the country’s five richest individuals, namely Mukesh and Anil Ambani, K. P. Singh, Azim Premji and Sunil Mittal. The net loss has been more than Rs 25 trillion for all the listed entities in the country. However, an estimated 114 companies have actually seen their market value growing in this period, shows an analysis of change in M-cap figures since January 10. In absolute terms, these companies have seen their market capitalisation growing by close to Rs 46,000 crore to more than Rs 3,54,000 crore. However, just about 30 companies out of these have a market capitalisation of more than Rs 1,000 crore and the growth has been mostly in single or double-digit percentage points for these firms. In absolute terms, the biggest gain of close to Rs 9,000 crore has been for Infosys, followed by over Rs 5,000 crore for Sun Pharma and Ranbaxy. Besides, companies like Cairn India, Satyam, Glenmark Pharma and Sterling Intl have also seen a surge of about Rs 2,000-4,000 crore. Other major gainers in this period include Cipla, Nestel India, GlaxoSmithKline, REI Agro, Spice Communications and ICI India, BOC India and Temptation Foods. In percentage terms, the growth has been relatively modest at about 10 per cent for companies like Infosys, Cairn, Satyam and relatively better at 25-35 per cent for Sun Pharma and Ranbaxy. However, companies like Sterling Intl, Zandu Pharma, Khaitan Weaving, Sandur Manganese, Gujarat Foils, Champagne Vine, KLG Capital, Choksh Infotech and Rollatainers have seen a gravity-defying surge with their market values more than doubling in this period. — PTI
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We are facing digital doomsday
London, July 6 More than 85 per cent of the available addresses have already been allocated and the rest will run out by 2011, according to a prediction by the Organisation for Economic Cooperation and Development. These are not the normal web addresses that you type into your browser’s window. These are the numerical internet protocol (IP) addresses that denote individual devices connected to the Internet. They form the foundation for all online communications, from e-mail and web pages to voice chat and streaming video. IP addresses are so basic to the success of the Internet that you really do not need to know a website’s domain name if you know their IP. In fact, domain names are only a convenience for people who have better luck remembering to type, say, www.google.com, than they would have trying to remember Google’s IP address of 216.239.39.99. When the current IP address scheme, called Internet Protocol Version 4 (Ipv4), was introduced in 1981, there were hardly 500 computers connected to the Internet. The address makers at that time allowed four billion addresses, thinking they would last for ever. They have been nearly gobbled up in just under 30 years! As addresses run dry, we will all feel the pinch: Internet speeds will drop and new connections and services will either be expensive or simply impossible to obtain. The solution to the shortage is to upgrade to a new address protocol. The Internet protocols are prepared by the Internet Engineering Task Force (IETF), a large open international community of network designers, operators, vendors, and researchers concerned with the evolution of the Internet architecture and smooth operation of the Internet. It is already prepared for the doomsday. It has devised a replacement system called IPv6 more than a decade ago providing enough addresses for billions of devices as well as improving Internet phone and video calls, and possibly even helping to end e-mail spam. Then why the doomsday predictions? The problem is that the new system is not really compatible with the Internet of today. If, for example, Google wants to support IPv6, it will need to build a whole new IPv6 web service, complete with new domain names, servers and bandwidth. The costs run into billions. Until such time, start looking at the countdown clock for the doomsday at penrose.uk6x.com. — IANS
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Indian firms losing more on US bourses
Mumbai/New York, July 6 Eleven Indian companies, which are listed both in local stock market and on the NYSE or Nasdaq in the US, have seen their collective market capitalisation in India plunge by over Rs 1,55,000 crore (about $48.7 billion) since January 10, after which the downslide began on Dalal Street. In comparison, these firms have seen their Wall Street valuations, based on market cap figures in the US bourses, dipping by a higher $55.7 billion in the same period. These companies include four IT companies Infosys, Wipro, Satyam and Patni Computer, two largest private sector lenders ICICI Bank and HDFC Bank, Tata group’s Tata Motors and Tata
Communications, Vedanta group’s Sterlite Industries, public sector telecom major MTNL
and pharma major Dr Reddy’s Labs. The US market valuation of these 11 companies stand at about $95.6 billion, down from $151.3 billion on January 10 when The Indian stock market benchmark Sensex had scaled its lifetime high of 21,206.77 points. In comparison, the Indian market valuation of these companies stand at about Rs 3,95,000 crore (about $91.5 billion), down from about Rs 5,50,000 crore ($140 billion) as on January 10. A sharp depreciation in the Indian currency versus the dollar has also contributed to a bigger fall in their local market valuations in the US currency terms. While all the companies have seen their US market values dipping in this period, Satyam is the only that has seen the dollar value of its Indian market value rising in this period. Among the individual companies, ICICI Bank, HDFC Bank, Infosys, Tata Communications and Tata Motors have seen larger erosion in their US market capitalisations as compared to that for the Indian market. However, companies like Wipro, Sterlite, Patni, MTNL and Dr Reddy’s have seen almost similar fall in both the US and Indian market capitalisations.
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Profit on STT-paid shares is tax free
by S.C. Vasudeva Q. I am a senior citizen house wife. I have no regular source of income. However, in the past I worked as an L.I.C. agent for about 12 years and earned commission. With this amount I have purchased Reliance Industry shares and their value at present is between Rs 6-7 lakh. I want to sell these shares in one lot and with this proceed I will invest the amount for construction of shop for my grand sons. I have been told, that as shares are more than one-year-old, as such tax or any other liability is due to be paid as S.T.T. Education cess Tax was paid by me at the time of purchase of said shares. I want to know to whether I have to pay any tax what-so-ever? Can I utilise the amount for construction work? — Raj Vasudeva, Faridabad A. Long term capital gain earned on the sale of shares on which security transaction tax (STT) is paid at the time of sale, is exempt from tax. It will be advisable for you to sell these shares through a broker so that the transaction is effected through a stock exchange and the STT is paid thereon. The amount of long term capital gain on such a sale would not be taxable in view of the provisions of Section 10(38) of the Income-tax Act, 1961, (the Act). The gross amount realised on sale of shares can thus be utilised for construction of shops. Gift to relatives Q. Please clarify the following points relating to gifting money to relatives:- 1. To which persons/relatives the money can be gifted and is there any limit fixed for this amount in any financial year? 2. Are daughters-in-law and grandsons covered in the point (1) above? 3. What are the formalities/conditions to be fulfilled at the time of gifting money? 4. In whose income the income from gifted money, if any, shall be accounted for in case of a minor i.e. the person who has gifted money or the guardian? — Pawan K Garg,Patiala A.
According to the provisions of Section 56 of the Income-tax Act, 1961, any sum of money, the aggregate value of which exceeds Rs. 50,000/- is received without consideration i.e. as a gift by an individual or an HUF in any previous year by a person, the whole of such aggregate amount will be chargeable to tax in the hands of the recipient as income from other sources. One of the exceptions provided in the section is in respect of amount received from a relative. The term relative has been defined to include: 1. spouse of the individual; 2. brother or sister of the individual; 3. brother or sister of the spouse of the individual; 4. brother or sister of either of the parents of the individual; 5. any lineal ascendant or descendant of the individual; 6. any lineal ascendant or descendant of the spouse of the individual; and 7. spouse of the person referred to in (2) to (6). A gift received by a daughter-in-law from her father-in-law or by a grandson from a grand father would be covered within the exception. The gift of an amount can be made by a simple letter and there are no other formalities required except that the gift so made must be accepted by the donee. This can also be in the form of an acceptance letter. In case of gift to a minor, the income from the transferred asset will be clubbed with the income of the parent whose income is higher. Such clubbing is required to be made till the minor attains majority after which such income will be taxable as his income. SGTC tax Q. I am a salary earner person , having a PAN and file IT return every year. I would like to know more about STCG tax on equity shares. Let me proceed this way My brokerage house charges me following expenses - A) Brokerage B) Service tax on
brokerage C) STT D) stamp Duty E) transaction charges F) CDSL charges on sale of equity Suppose I purchase share worth Rs 1,000, which includes Rs 50 as sum of a) to e). Rs 50 is my expense and Rs 950 is actual cost and after two months, if I sell all shares for Rs 2,000, including Rs 50 as sum of a) to e). It means I will get only Rs 1,950. How do I calculate short term tax? Please tell me how much will be my net profit? — Mayank Dubey A.
On the basis of the facts given, the amount of charges paid for acquiring the shares would become part of the cost of the shares. Accordingly, the cost of shares would be Rs 1,000 less the amount of STT which would not form part of the cost. The charges paid at the time of sale of shares would be deductible from the sale price and therefore the net sale price would be Rs 1,950. The short term gain, therefore, would be the difference between the two amounts. The same would be taxable for assessment year 2009-10 at the rate of 15 per cent plus applicable education cess. |
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‘Slowdown in world economy to impact growth’
New Delhi, July 6 The Plan Panel deputy chief said fiscal 2008-09 by all accounts was a bad year for the world economy and India’s growth rate would be impacted adversely. It is for this reason that economic growth may moderate to about 8 per cent, instead of the targetted 8.5 per cent in FY08. “If in a year the world economy is going through its most difficult phase, then I think that Indian economy registering 8 per cent growth is not a bad deal,” Ahluwalia said. He was hopeful that the slow down in the world economy would bottom out next year and the India economy would stand to benefit from it. Ahluwalia said India in fact was not much affected unlike some other countries and felt that the double digit inflation was mostly a result of external factors, including the soaring global crude oil prices. He said the measures taken by the government and the RBI would take some time to bring results on the ground. — UNI
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