|
|
|
|
Barclays puts Q2 GDP growth at 8.5%
CII: It’ll be 9.5 pc for services
DoT may allow spectrum sharing
|
|
R-Money aims at Rs 50,000 cr corpus
BHEL to invest Rs 1,400 cr
Tax Advice
Market Update
|
|
Barclays puts Q2 GDP growth at 8.5%
New Delhi, September 7 “In Q2 of the current fiscal, gross domestic product (GDP) growth is likely to be about 8.5 per cent,” Barclays said in its recent emerging markets research report. According to the global investment banker, the country’s annual growth is running well above 8 per cent and the first quarter growth rate of 7.9 per cent is likely to be revised upwards by 0.3-0.5 percentage points. However, Barclays projected 7.5 per cent growth rate for 2008-09 with “risks tilted to the upside”. India recorded 9 per cent GDP growth rate during 2007-08. The RBI forecasts a GDP growth rate of 8 per cent in the current fiscal, while the Prime Minister’s Economic Advisory Council expects the economy to rise by 7.6 per cent. Referring to the inflationary spiral, the investment bank has said demand-side pressures on inflation would persist for the next one-two quarters and the apex bank would continue to keep the liquidity conditions tight over the next 3-6 months. The banking regulator, meanwhile, in its currency and finance 2006-08 report has indicated that it is important in the present scenario to show continuously “a determination to act decisively, effectively and swiftly to curb any signs of adverse developments in regard to inflation expectations”. Inflation, which is reining over 12 per cent, is still way above the RBI’s projection of 7 per cent by the end of the current fiscal and the regulator has in phases raised the cash reserve ratio and reserve repo rate to 9 per cent to tame rising inflation. — PTI
|
|
CII: It’ll be 9.5 pc for services
New Delhi, September 7 In a snap poll conducted by Confederation of Indian Industry (CII), majority of the CEOs from services sector felt that expansion in the sector would continue during the current year with more money to be pumped in, resulting in creation of more job opportunities. “Both investment and employment is expected to increase in the services sector despite pressure on profitability during the current year,” CII director-general Chandrajit Banerjee said. CEOs also expect employment to increase during the year, particularly in the healthcare sector, followed by retail, tourism, IT and ITeS and financial services. The survey revealed profits would be under pressure due to high interest rates, stiff domestic competition and increase in staff cost. Major impediments to the sector’s growth were global economic slowdown, deceleration in the economy and shortage of talent and skills, it said. —
PTI |
|
DoT may allow spectrum sharing
New Delhi, September 7 New telecom players may find it difficult to roll out services with only 4.4 MHz of spectrum and compete with existing players who have been allocated 10-12 MHz of scarce spectrum. If allowed, two new players may join hands to combine the initial spectrum taking it to 8.8 MHz and this would not only help in reducing the infrastructure costs but also result in better quality of services with less number of subscribers and more spectrum. Minister of state for communication and IT Jyotiraditya Scindia has convened a crucial meeting tomorrow of senior officials in the Department of Telecom to consider the proposal of sharing of spectrum among other things. According to sources, the proposal would also help the existing mobile operators who have been seeking additional spectrum with the increase in number of subscribers but are unable to get due to its scarcity. Meanwhile, the DoT will kick start the process for 3G mobile services tomorrow as it holds pre-bid conference for both Indian and foreign companies to conduct the auctioning of spectrum in 22 telecom service areas. Issuing the request for proposal, the DoT has convened a pre-bid conference on September 8 and will open the financial bids, of those who qualify technically and meet all the criteria for selection, on September 30. — PTI
|
|
R-Money aims at Rs 50,000 cr corpus
New Delhi, September 7 The company has introduced two innovative products, he said, adding that there would be some more which would generate a good business. The wealth management entity is currently managing assets of about Rs 1,000 crore. At the same time, the facility would be extended to 50 cities by December from |
|
BHEL to invest Rs 1,400 cr
New Delhi, September 7 “We are planning to invest Rs 1,400 crore to build a castings and forgings factory,” BHEL chairman and managing director K. Ravi Kumar said. BHEL has also formed a 50:50 joint venture company with Heavy Engineering Corporation to cater to the needs of castings and forgings. —
PTI |
|
Tax Advice Q. My wife was in service but she left the service about 10 years ago. She had received Jewellery at the time of her marriage from her as well as my parents. The value of the jewellery in accordance with the prevailing rates of gold should be more than Rs 25 lakh. I have been suggested by my consultant that she should file the wealth tax return. She does not have any income and, therefore, how can she be subjected to wealth tax? Is the opinion of my consultant correct? — K.K. Soni, Faridabad A. According to the provisions of Section 2(ea) of the Wealth Tax Act, 1957, jewellery is exigible to wealth tax. Further, the wealth tax is leviable if the net wealth of an assessee exceeds Rs.15 lakh. In view thereof, your wife is liable to file wealth tax return because the value of the jewellery held by her exceeds Rs.15 lakhs. The wealth tax is payable at the rate of 1 per cent of the net wealth exceeding Rs 15 lakh. The earning of any income has no relation with regard to the leviability of wealth tax. Tax calculation
Q. Calculating Income Tax for F.Y. 2007-08 Salary Rs 2,41,671 Interest Rs 43,721 Total Salary Rs 2,85,392 Deduction under
Section 80C Rs 1,00,000 Advance tax + TDS paid Rs 8,715 Please calculate the tax? — Nidhi Arora, Panchkula A. On the basis of the facts given in the query, your total income is Rs.2,85,392. After giving relief for the allowable deduction under Section 80C of the Act, the taxable income would work out at Rs.1,85,392. The tax payable on the said total taxable income would work out at Rs.7,806, including the education cess of 3 per cent thereon. As you have already paid Rs 8,715 in the form of advance tax and tax deducted at source, you would be entitled to a refund of Rs 909 from the Income Tax Department. It may be added that the tax has been computed on the presumption that you are below the age of 65 years. Senior citizen scheme
Q. If we make an investment under Senior Citizen Scheme, where we do not avail Tax benefit under Section 80C of the Act. Kindly advise how the pre-mature payment of the said investment would be treated for income tax purpose? — Inderpal, Chandigarh A. In case you have not claimed the benefit of deduction under Section 80C of the Act for the amount deposited under Senior Citizen Saving Scheme 2004, the provisions of sub Section (6A) of Section 80C of the Act, which provide for the withdrawn amount to be treated as income of the assessee in the year in which the amount has been withdrawn shall not become applicable. However, Rule 9 of the said scheme would become applicable. According to the said Rule, in case the account is closed after the expiry of one year but before the expiry of two years from the date of opening of the account, an amount equal to one-and-a half per cent of the deposit shall be deducted and the balance paid to the depositor. In case the account is closed on or after the expiry of two years on the date of opening of the account, an amount equal to one per cent of the deposit shall be deducted and balance paid to the depositor. Stock investment
Q. I am an employee with a multi national company. Apart from the salary income, I also keep on investing in stocks and shares. I have been filing my Income-tax return regularly and showing the salary income therein. There are 3-4 transactions every year in respect of my investment activities in shares and stock. The resultant profit and loss on such transactions has not been included in my return. I have been advised that even if it is a small amount, the same should be included in the tax return. I seek your advice in this regard. — Radhakrishan Gupta, Malerkotla A. The facts in the query indicate that you are only an investor and are not carrying on the business of purchase and sale of shares. Accordingly, the capital gain arising on the sale of shares or any capital loss arising therefrom should have been included in the Income-tax return. In case the capital gain arises from the sale of shares which have been held for a period of more than one year and the transaction has been subjected to securities transaction tax, the same would be exempt from tax under Section 10(38) of the Act. In case the capital gain arises from shares held for less than the aforesaid period, the same would be taxable and should have been included in your tax return. I may add that you can revise your return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment whichever is earlier. For example, a return for assessment year 2007-08 can be revised upto March 31, 2009. You can, thus, declare the gain if any, on sale of shares by filing a revised return for the said year so as to rectify the above omission. |
|
Market Update The markets, as expected, were extremely volatile last week. In the initial part of the week, the market rallied on falling crude prices that calmed the inflation concerns but the gains were wiped out due to setback in the global markets and concerns over the nuclear deal. The global markets took a hit after federal reserve chairman Ben Bernanke stated that he expected economic troubles to persist in 2009 as well and the fed would leave the key interest rates unchanged at 2 per cent, which meant that the outlook for US economy was weak. Going forward, the markets are expected to open strong on Monday on the back of the NSG waiver but rumours emanating from the US about the possible takeover of Fanie and Freddie by the US government may hold back a runaway rally. Another positive development, locally, has been a positive inflows from the foreign financial investors (FII’s) after a long time. The FII’s were net buyers to the tune of Rs 766 crore on the first four days of the month. There has been a change of guard at the Reserve Bank of India (RBI), the new chairman, Dr Subbaro, takes over. Subbaro’s immediate challenge would be to fight inflation, which is at a 16-year-high. HDFC
Investors with a three years horizon may buy into the scrip of Housing Development and Finance Corporation (HDFC) at the current market price of Rs 2,200. This is based on the fact that the worst for the scrip may be over as we are of the view that inflation may have peaked out and any further tightening of the money supply by the RBI at worst may be 50 basis points in the key interest rates. Also, the listing of a key subsidiary may unlock substantial value in the stock. HDFC, a leader in mortgage market, has reported a loan approvals of Rs 9,996 crore in the first quarter of the current financial year. This transalates into a growth of 30 per cent and is higher than what was witnessed in the fourth quarter of the last financial year. Though, we believe it may be difficult for HDFC to continue this growth rate going forward on account of the rising interest rates and falling housing demand due to skyrocketing real estate prices, at the same time it may be able to corner further market share in this space, as the banks are going slow on lending in this segment with a view to rebalance their loan books away from the retail business. Further, the recent monetary tightening, in the form of a hike in CRR/SLR and other reserve requirements, has levelled the playing field between banks and NBFCs as for as the housing loan space is concerned. Moreover, a close rival (ICICI Bank) has priced itself out from the housing space, which augurs well for the HDFC’s core housing finance business. HDFC’s key subsidiaries, HDFC Bank and HDFC Standard Life, continue to perform well. HDFC is also contemplating listing its life insurance subsidiary (HDFC Standard Life) in the current fiscal, which would help unlock substantial value. Also, implementation of the proposed hike in FDI for insurance sector augurs well for the company. |
|
| 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 | |
