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SBI slashes lending, deposit rates
Stimulus Plan
Sun Microsystems eyes BPO sector
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Aviation Notes
Investor Guidance
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SBI slashes lending, deposit rates
Mumbai, December 20 State Bank of India's PLR now stands reduced at 12.25 per cent, the bank said in a press note today. The rate cut came a day after India's largest housing finance company HDFC reduced its interest rates by 50 basis points for loans of more than Rs 20 lakh for both existing and new customers and introduced a new slab for sub-Rs 20 lakh. Union Bank of India, another leading public sector bank had reduced its deposit rates yesterday, while Bangalore-based state-run lender Canara Bank announced reductions in their deposit and MSME lending rates. With the country's largest lender reducing the PLR, other leading banks are also expected to follow the leader in the next few days, banking sources said. The bank also cut deposit rates by 0.25-1 per cent, which will again be effective from January 1, across all maturities. With the revision, 1-2 year deposit rates will now attract an interest rate of 8.5 per cent as against the earlier 9.5 per cent while deposits having two years to less than 1,000 days maturity will attract a 8.75 per cent (9 per cent), the bank said. Similarly, the 1,000-day special deposit scheme, which had offered 10 per cent rate earlier, will now give 9 per cent to investors, SBI said. — PTI
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Stimulus Plan
New Delhi, December 20 Singh is believed to have discussed the specific proposals in the package that are expected to be announced next week, sources said. Economist and Rajya Sabha Member C Rangarajan was also present in the meeting. In the second stimulus package, further cuts in interest rates, raising the cap on income tax rebates on housing loans and relief to automobile and textile sectors are expected. The government has already announced a four per cent cut in excise duty across-the-board and raised the public expenditure by Rs 20,000 crore in the first stimulus package announced early this month to counter the impact of the global meltdown. The Reserve Bank on its part had injected around Rs 3,00,000 crore liquidity into the system through a series of cuts in key policy rates and other measures. Taking cues from the RBI, several banks have lowered their lending rates. |
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Sun Microsystems eyes BPO sector
Chandigarh, December 20 With 73 per cent of net users in India now having a broadband connection, the company sees a huge scope for growth for this specialised technology that is completely stateless. “This has no local operating system and a single administrator can deploy and maintain thousands of desktops efficiently. This is a green technology, which also helps to use power more efficiently. It is for this reason that we are now witnessing a shift in client base from small environments to larger deployments,” said Manish Malhotra, director-software, Sun Microsystems. In town to deploy this technology at the Swami Vivekanand Institute of Engineering and Technology (SVIET) at Banur and help it become a digital campus, Malhotra said the technology was earlier being used in laboratory environment. “But we have improved upon it considerably, and now it has found wide acceptance in constrained community environments like BPOs, banking, financial services and insurance (BFSI) and defence sector,” he said. He said while educational institutions can use this technology to enhance learning and create an eco-friendly IT infrastructure, it is beneficial in the BFSI because of reduced hardware maintenance cost, improved security and scalability, and an effective Linux desktop environment. In defence, it can provide reduced hardware maintenance costs, improved security and scalability. Besides India, this technology has found wide acceptance world wide and has become a major growth driver for the company. As an early innovator in the thin client market with nearly a decade of experience, this technology has seen a growing appeal of desktop virtualisation technologies industry-wide.
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Aviation Notes Worldwide, all national airlines are granted full-fledged autonomy in their day-to-day functioning. All of them are allowed to work commercially and professionally without even slightest intervention by the respective governments. While enjoying fruits of autonomy, all national airlines are accorded meticulous protection, including promoting manufacturing outfits in selling aircraft, like Airbus Industrie and Boeing. Sadly, reverse is the procedure in this country where national carrier is vigorously arm-twisted in every sphere. Air India (National Aviation Company), for example, is autonomous only on paper. It does not enjoy any freedom in appointments, transfers, promotions and even in sackings. The latest area of bone of contention is ground handling, which is a money-making sector. The policy drafted by the civil aviation ministry is more inclined towards private players than NAC. Why should it be so? If the government does not stand by its own child (NAC), who would? Aviation analysts say that if the government is disinclined to own its child, it should fold its shop instead of playing ‘double and dubious role’. Disillusioned and dissatisfied with the ministry’s functioning, several units like Air India Employees Union (AIEU), Pawan Hans Union (PHU) and Aviation Employees Guild (AEG) are planning for a stir on Tuesday, December 23. If the protest-stir comes about, it will needlessly cause another negative publicity in the already dwindling aviation scenario. Rajasansi airport
The sooner Amritsar’s Rajasansi airport is made world-class international airport, the better it will be for the aviation sector in this country. The creation of cargo hub is the need of the hour because export and import of cargo, particularly textiles and sports equipments, will ‘rain’ money in Punjab and India. Worldwide, the cargo upliftment gets precedence over passengers because it is more money-spinner than passengers traffic. This is because industrialists and other agencies have fully realised that ‘time is money’ and quick turnover of cargo and exchange of money are the needs of the hour. The modernisation of the Amritsar airport will gain pace only when the Punjab government activates the sluggish Airports Authority of India (AAI). It usually works at a snail’s pace and functions only when ministry directs it. Several air-fields and airports are under the umbrella of defence, which is indeed vital. But certain areas like at Agra can be allowed for civil operations. Similarly, a large chunk of land available around Rajasansi airport can be allowed to be utilised for the civil operations for the betterment of the country’s welfare. The aviation analysts say that it is more an ‘ego equation’ than any ‘defence problem’. In addition, the upgradation of the Amritsar airport will considerably reduce congestion at the Indira Gandhi International Airport (IGIA) which, as scenario exists, will cater to more passengers traffic than Mumbai. Despite initiation of third runway and category III-B ILS in place, the fog is still disrupting flights at Delhi. What causes deep concern is that fog discending at Kolkata is disrupting flights at Delhi. If the visibility decreases a bit at Delhi, why should not commanders land? |
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Investor Guidance Q: Company XYZ Ltd. is paying Rs. 40,000 yearly LIC premium of one of its employees. Employee is not claiming deduction of this Rs. 40,000 u/s 80C in his computation of income. Company is paying FBT on premium paid. This expense is debited to Staff Welfare expense in company books. Please let us know whether on maturity amount received by employee from LIC will be taxable in his hand. — Sunanda A: It seems from your query that the policy that you are referring to is a Keyman insurance policy. Any sum received under a Keyman insurance policy is not covered by Sec. 10(10D) and consequently, such an amount is fully taxable in the hands of the recipient, unless it is received on the death of the insured person. Home loan repayment
Q: I have the following two
questions - 1) My wife and I are joint owners of our house. Whether the loan repayment against housing loan under Principal and interest component will be deducted only from the earning counterpart or otherwise? 2) Whether the mediclaim policy amount of Rs 15000 will be inclusive of Rs1 lakh limit of saving or it will be directly deducted from the taxable salary? — K.S Yadav A:
It seems from your query that it is you who own the house and your wife’s name has just been added as a second holder as a matter of precaution. In this case, the deduction for loan repayment under Sec. 80C as well as that for interest will be deducted from your income. In any case, if your wife doesn’t earn, there is no significance of the tax deduction. Resident status
Q: Who is a person not permanently resident in India? Also can a foreign national (not NRI or PIO but a rank foreigner) who has been working in India, upon the termination of his employment take his savings back with him abroad? How much money can such person send abroad during the period of his employment in India? — Uttakarsh A:
A person with a foreign passport, resident in India for employment of specific duration, irrespective of its duration, or for nonspecific duration not longer than 3 years is defined as a ‘person not permanently resident in India’. As per Circular 4/2008-09 dt 1.7.08, a foreign national of non-Indian origin who has retired from an employment in India or who has inherited assets from a person resident in India or who is a widow of an Indian citizen who was resident in India, may remit an amount not exceeding $ 1 million, per financial year (April-March), on production of documentary evidence in support of acquisition / inheritance of assets, an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular No.10/2002 dated October 9, 2002. During the period of employment, a foreign national is allowed to remit for maintenance of his close relatives abroad, amount up to his net salary after deduction of taxes, contribution to Provident Fund, etc.,. The same facility is extended to a citizen of India, who is on deputation to the office or branch or subsidiary or joint venture in India of such foreign company. If a part of such person’s salary is paid outside India, up to 75% of the salary of such deputies, including a national of a foreign state Resident in India, may be credited to his bank account outside India and the remaining paid in rupees. Income tax has to be paid on the entire salary. An entity in India may remit an amount being its contribution towards the provident fund, superannuation, pension fund in respect of the expatriate staff (means a person whose funds are maintained outside India by his principal employer outside India) in its employment who are Resident but not permanently resident. The authors may be contacted at
wonderlandconsultants@yahoo.com |
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Chandigarh, December 20
