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G-20
‘Favours’ from RIL
Aviation Notes |
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| Investor Guidance ELSS can help save tax Q Earlier you have mentioned that ELSS (equity-linked saving schemes) is an eligible investment for deduction under Section 67 of the proposed Direct Taxes Code as an eligible investment. Is it correct? I have studied the code to a small extent but could not come across the provision for ELSS investments being eligible for tax saving. Please confirm.
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G-20
Pittsburgh, September 26 “There is no economic crisis in India. It is certainly true that as a sequel to the global economic crisis our exports have suffered that has affected the rate of growth, but even then our economy is growing at a rate of 6.5 per cent. Therefore, there is no crisis, as such in India," Singh said. However, the Prime Minister acknowledged that in a highly interdependent world, India has a stake in the stability and growth of the world economy. “If the world economy collapses, there is obviously some effect on our country. Already the rate of our growth of our economy particularly our exports have suffered,” he said, adding that this has led to decline in exports of important labour-intensive products like gems and jewellery, leather goods textiles. “So in an increasingly interdependent world, I think, no country by itself can ensure that all its goals of economic life can be achieved working to the exclusion of other participants in an increasingly interdependent world," Singh said. The Prime Minister today said the scope for acceleration of stimulus package for the recovery of the economic crisis were “limited” but in the same breath not appeared to rule out any such possibility. “Our response of stimulus was to a specific domestic situation. It is true that we have limited scope for accelerating stimulus package and our options are limited because of factors like substantial fiscal deficit.” Manmohan Singh has assured South Africa that there would be no “discrimination” against the proposed $23-billion merger deal between Bharti and MTN. “As far as MTN issue is concerned, I mentioned it to the South African President. I hope that this deal would go through and there will be no discrimination against it,” he said.
— PTI |
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‘Favours’ from RIL
New Delhi, September 26 “The CBI should be directed to immediately launch an inquiry into the approvals of capital expenditure accorded by Sibal during his five-year tenure to all operations, including Reliance (Industries),” Suravaram Sudhakar Reddy, deputy general secretary of the CPI, said in a letter to the Prime Minister. Reddy, who is a former Lok Sabha member, also said: “The government should ensure that the Petroleum and Natural Gas Ministry's request to give a two-year extension to Sibal is immediately withdrawn.” Referring to articles appeared in the media, Reddy said the ministry and Sibal had played a vital role in the hasty approval of the hike in capital expenditure of RIL for the Krishna-Godavari basin from $2.4 billion to $8.8 billion.
— IANS |
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Aviation Notes As suggested by the US, the Directorate-General of Civil Aviation (DGCA) has streamlined its flight inspection directorate (FID) to help improve safety norms. The FID has been strengthened from current four to 32 and more than 3,000 violations have been detected. On the basis of this feed-back, the Federal Aviation Administration (FAA) of the US has decided not to downgrade India from category I to sub-Sahara-African category II. At least 1,000 more such checks will be organised to achieve the target of 4,200 before the year ends. Recently, a DGCA team visited some training schools abroad and found them sub-standard in various aspects like infrastructure and coaching. In view of this, the government has decided to subject pilots with certificates from foreign schools to rigorous tests before considering them fit for employment in any Indian oufit. The analysts feel that this is a welcome change because most of the foreign-trained pilots are not worthy enough for employment in the country. According to analysts, the measures, as shown, are merely 'paper-exercise' to avoid down-grading. They maintain that there is little rapport among four vital areas - DGCA, Airports Authority of India, Delhi International Airport Limited and Air Traffic Controllers. The scenario in general aviation is much worse. The pilots are made to take control of aircraft at the behest of over-zealous politicians. There have been instances of the aircraft lying in hangar and taken out for flying without undertaking mandatory checks. With the FAA sword no longer hanging on India, the road is now open for increasing international operations. The analysts are of the firm view that the situation continues to be murky with most of the airlines, including national carrier, are passing through the “burden of financial troubles and expectancy”.
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Investor Guidance Q Earlier you have mentioned that ELSS (equity-linked saving schemes) is an eligible investment for deduction under Section 67 of the proposed Direct Taxes Code as an eligible investment. Is it correct? I have studied the code to a small extent but could not come across the provision for ELSS investments being eligible for tax saving. Please confirm. — Sudhir Kaushik A ELSS is indeed an eligible investment for claiming tax deduction under the new code. The only difference is that instead of a direct investment in the new regime, the investment has to be routed through one's account with the permitted savings intermediary. NRO fixed deposits
Q I am an US citizen of Indian origin. I recently invested some money in NRO fixed deposits in India but I am distressed to note that the withholding tax that is mandatory deducted is close to 33%. It means almost one-third of the interest is taxed. This is my only income in India and total interest is below the basic exemption limit of Rs 1,50,000. I have been informed that I will have to file a return to get refund of the withholding. Could you let me know under which section of the Income Tax Act does it specify that the rate is 33%? Secondly, when I was in India my father used to submit Form 15H (if I am not wrong) requesting the bank not to withhold tax since his income was below the taxable limit. Can I not submit this form as the purpose is the same? — Basu A
The withholding tax rate is 31% for income below Rs 1 million and 34% for income above this limit. If your interest income, which is your only income in India, is below Rs 1,50,000, then the rate applicable should be 31%. This rate is taken from part II paragraph (1)(b)(i)(K) that specifies a rate of 30% on the whole of other income (other than the incomes specified in other clauses). A 3% (30% + 3% = 31%) education cess is added to the base rate. Form 15-G (for non-seniors) or 15-H (for senior citizens), requesting for non-application of TDS is not available for NRIs. Accrued interest
Q Following is my query regarding NSC accrued interest for deduction u/s 80-C. If NSC is purchased during a financial year, say on September 13, 2008, then which is the first year for calculating accrued interest on NSC, i.e., whether FY 2008-09 or 2009-10 ? — Arpit Parekh A NSC-VIII is a cumulative scheme where the amount invested along with the accrued interest is paid at the end of the term. However, the interest, though compounded on half-yearly basis is exigible to tax on annual basis. If the NSC is purchased on September 13, 2008, then you may include the return for the first year in the return for FY 09-10. The authors may be contacted at
wonderlandconsultants@yahoo.com
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