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NTPC starts getting RIL’s KG gas SingTel ups stake in Airtel Market Update |
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| Tax Advice No rebate on son-in-law’s insurance premium Q. Is it possible to claim deduction under Section 80C of the Act in respect of LIC premium paid on the life of my daughter and her husband. — Dev Karan
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NTPC starts getting RIL’s KG gas
New Delhi, November 1 NTPC's Anta plant in NCR region this morning started receiving 0.6 million standards cubic meters per day of KG D-6 gas, industry sources said. KG D-6 gas will replace the costly LNG that the plant currently uses and will save Rs 150 crore in power generation cost annually. The government had allocated NTPC 2.67 mmscmd of gas from KG D-6 fields but the company had on September 23 signed Gas Sales and Purchase Agreements (GSPA) for less than one-fourth of the earmarked volumes. NTPC had signed contracts with RIL to buy 0.13 mmscmd of KG D-6 for its Faridabad power plant in Haryana, 0.03 mmscmd for Anta in Rajasthan and 0.45 mmscmd for its Dadri unit in Uttar Pradesh. However, due to constraints in state-run gas utility GAIL India Ltd's pipeline to transport KG-D6 gas, all of the 0.61 mmscmd would be consumed at Anta plant for the time being, sources said. The production of gas from RIL's KG basin has gone up to 45 mmsmcd but is still short of its present capacity of 65 mmscmd. Sources said of the 2.67 mmscmd originally allocated by the government to NTPC, its Kawas power plant in Gujarat was to get 1.75 mmscmd and Gandhar 0.30 mmscmd. But the state-run utility does not want to use KG D-6 gas as it is seeking from RIL gas for expansion projects at the two sites at the price of $2.34 per mmBtu that RIL had committed in a 2004 tender. NTPC wants to swap the allocations for these with the gas its plants in northern India get from Panna/Mukta and Tapti fields. The proposal entails partially diverting subsidised/PMT gas for NTPC's power plants in the northern part of the country to Kawas and Gandhar. The gas allocated to Kawas and Gandhar will then be diverted to NTPC's plants in the north. Sources said for the two plants to operate at a minimum 70 per cent of the capacity (Plant Load Factor), a combined 2.71 mmscmd gas would be needed. So, 2.71 mmscmd of subsidised/PMT gas would be diverted from NTPC's plants in northern India to Kawas and Gandhar. An equivalent quantity would be moved from D6 to these plants in North India. "Essentially, this meant that gas allocation had to be increased, which has now been done," an official said. RIL is currently producing about 45 mmscmd of gas from KG D-6. Of this 14.45 mmscmd is being supplied to fertiliser plants and over 24 mmscmd to power plants.
— PTI |
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SingTel ups stake in Airtel
New Delhi, November 1 In a notice to Singapore Stock Exchange, SingTel said it has entered into a conditional share purchase agreement with Bharti Group entity to buy an additional 7,30,000 issued shares in Bharti Telecom, a promoter company of Bharti Airtel.
— PTI |
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Market Update
Weakness in commodity prices, poor results by some large companies, skepticism about the recovery being only liquidity-driven, fears about the stimulus packages being withdrawn, rising inflation, and expectations of an impending exit by the government of its loose fiscal stimulus were some of the factors that had the bulls worried last week. Seizing the opportunity, bears went on rampage through out the last week and BSE Sensex fell 5.4 per cent. Markets in the rest of the world had a similar story to tell. Apart from India, Germany (down 5.7 per cent), Brazil (down 5.4 per cent), and France (down 5.3 per cent) led the fall. The US ended the week lower by 2.6 per cent, while China fell by 3.6 per cent. Some disappointing results from large companies like PetroChina and National Australian Bank weighed down on Asian markets, further fuelling concerns that markets may have gotten ahead of fundamentals and that stocks may have risen faster than the pace at which earnings will perhaps rise going forward. Inflation last week moved up from 1.21 per cent from previous week to 1.51 per cent and this had RBI’s stand vindicated that inflation is rearing its head again and the India’s economy must get ready for higher interest rates in future. Overall, at the current juncture the market looks to be negatively poised and may head for more correction in coming days. The turnaround may come about if the global markets stablise and an early settlement to the ongoing Reliance tussel. Inflation also needs to temper down in coming days, otherwise RBI will raise interest rates sooner than expected which may lead to further dent in corporate profits. Zydus Wellness
Zydus Wellness was formed in January 2009 following the merger of the consumer healthcare division of Cadila Healthcare (Cadila) with Carnation Nutra Analouge Foods (a subsidiary of Cadila). The merger aimed to strengthen the group’s presence in the fast-growing consumer health and wellness segment. Zydus Wellness is a debt-free company with free cash of Rs 72 crore on its books. Given the strong internal accruals, the company will not require any equity or debt financing to sustain its organic growth and will be able to pay good dividends on a recurring basis. |
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Tax Advice
Q. Is it possible to claim deduction under Section 80C of the Act in respect of LIC premium paid on the life of my daughter and her husband. — Dev Karan A. Section 80C of the Act provides for the deduction of any amount paid to effect or keep in force the insurance on the life of individual himself, his wife or husband or/and any child of such individual. The deduction is allowable within the limit of Rs 1 lakh specified by the aforesaid section. The payment made for taking an insurance policy in the name of your daughter would be allowed as deduction under the aforesaid section of the Act. However, no such deduction is permissible if the policy is taken in the name of daughter’s husband. IT refund
Q. I am 68-year-old retired officer of the bank and have several special term deposits and term deposit receipts with the bank. Last year, the interest on my STD/TDRs accrued and paid to the extent of Rs 1,50,000 during the financial year from 01.04.2008 to 31.03.2009 and TDS of Rs 11,384 was deducted during the said year. I have also got pension of Rs 1,34,000 during the last financial year. I have to further submit that I am also a disabled person to the extent of 70 per cent due to accident and getting income tax rebate of Rs 50,000. Besides above, I am also repaying home loan instalments of Rs 30,000 every year @ Rs 2,500 per month. I have filed my income tax return and claimed refund of Rs 11,384 which has not been paid to me so far. Now, I would like to know whether I can submit form 15G or 15H to the bank to save income tax deduction at source and subsequently await for refund of TDS. — DC Goyal A.
You are a senior citizen and therefore you can file Form 15H for non- deduction of tax at source for the financial year April 2009 to March 2010. I presume that your total income of the aforesaid financial year, including the interest income would be below the maximum amount not chargeable to tax in case of a senior citizen. It may be added that you would be liable to file income tax return for the assessment year 2010-2011 (relevant to the previous year 2009-10) in view of the proviso to Section 139 of the Income Tax Act 1961, which requires the filing of return of income by a person who has claimed deduction under Chapter VIA which covers deductions allowable under Section 80C and Section 80U of the Act. As to the refund due for assessment year 2009-10 is concerned, you have to approach the tax authorities for granting tax refund on the basis of the return filed by you. IT return
Q. I am a Haryana government pensioner and have income from pension and bank interest. My income from these sources exceeds the maximum amount not chargeable to tax. I also have some dividend income on mutual funds, which I understand, is exempt from tax. Am I required to disclose this income in my return. Kindly let me know the Income-tax Form in which I am required to file the return. — Ravi A.
The applicable return form in your case would be ITR 2. The income from dividend will have to be disclosed in Schedule E-1 even though the same is exempt from tax. Gift to relative
Q. My daughter is living in the USA. She is married and has two children settled in that country. She has not come to India for quite some time. My wife has been asking me to send some amount to her as she would have received such gift on festival occasion. I understand that there is a scheme whereby a person can remit $5,000 as gift to a person living abroad. Has the said limit been increased or is it remains the same? My bankers are not able to guide me on this subject. Please let me have your view in this regard. — AK Saxena A.
The earlier scheme of sending an amount of $5,000 as gift to a relative has since been changed. At present, it is possible to send a sum of up to $2,00,000 per financial year (April-March) for any current account or capital account transaction or a combination of both. The limit also includes remittance towards gift and donation by a resident individual. You can, therefore, remit the amount of gift to the USA within the said permissible limit without any problem. |
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