The Tribune, Chandigarh, India

	Blow to Cadila’s H1N1 vaccine plan New Delhi, February 7 Cadila Pharmaceuticals’ plan to indigenously develop Influenza A HINI (swine flu) vaccine in collaboration with US-based Novavax is likely to be delayed as the government has shown caution in giving go-ahead for the clinical trials. “We have not given approval (for clinical trials) to Cadila yet as they are using a new technology called virus like particles (VLP),” Drug Controller General of India Surinder Singh said. "We are still studying the process... and it would take some more time before we decide on that," he added. Last year, Cadila along with four other Indian companies, Zydus Cadila, Bharat Biotech, Panacea Biotech and Serum Institute, had applied for the health regulator's permission for conducting trials for vaccines in India. All other Indian firms except Cadila Pharmaceuticals have got the permission and have started the clinical trials for the vaccine in India. Singh said globally there was only one vaccine that used VLP technology. So, the company need to substantiate the new technology's credentials. “We are still looking at data they gave us for the trials conducted in Mexico, but other Indian companies are using traditional methods to develop vaccines, it is already tested and certified … so we need to be very cautious,” Singh said. An email query sent to the company remained unanswered. According to industry officials, it will take around at least another three months for the Indian firms to develop the vaccines and their shots will be available in the market by April this year. For meeting immediate requirements, the government has already placed the order for 1.5 million doses of imported vaccines in the country. Ahmedabad-based Cadila Pharmaceuticals is one of the largest privately held pharma companies in India. — PTI
	Budget Wishlist Retain sops, urges Commerce Ministry New Delhi, February 7 The Commerce and Industry Ministry has urged the Finance Ministry to retain the stimulus package in the coming Budget, stating that its withdrawal may "unsettle" the industry and impede the growth momentum. In its Budget proposal, the Commerce Ministry has suggested that the fiscal incentives given to the industry in 2009-10 in the wake of the global economic downturn should be continued. "The same level of Cenvat (excise duty) should be continued for some more time...otherwise it may unsettle the industry and impact business calculations in such a way as to disrupt the pace of industrial growth," the ministry said. The government had reduced excise duty by 6 per cent across the board and service tax by 2 per cent in different phases, beginning December, 2008, to boost domestic demand which was impacted due to the global financial meltdown began in October, 2008. The other demands include continuation of the 2 per cent interest subsidy to be extended to exporters and extension of the export-oriented unit schemes beyond the 2010-11 fiscal. The ministry has also sought income tax exemptions to all export promotion councils. Commerce secretary Rahul Khullar had met revenue secretary PV Bhide in this regard last month. Since it is Finance Minister Pranab Mukherjee who has to take a final call on these proposals, Commerce and Industry Minister Anand Sharma will meet Mukherjee soon to press for the concessions in interest rates and indirect taxes. The country's exports had come under severe pressure since October, 2008, and kept contracting till October, 2009. During April-December of this fiscal, merchandise exports declined by 20.3 per cent to $117.58 billion from $147.56 billion in the same period last fiscal. However, since November, 2009, the exports sector returned to growth for the first time in 11 months, and in December even imports began to grow. — PTI
	No cut in corporate tax likely in Budget New Delhi, February 7 The government may not tinker with the corporate tax rates in the Budget 2010-11 despite pressure from India Inc to slash rates or at least do away with surcharge and cess. The industry has been clamouring for a reduction in the corporate tax rate to 25 per cent from the current over 30 per cent, including education cess and surcharge. The corporate tax rates can be kept at the same level and the industry may have to wait for the fiscal 2011-12 for the rate to be 25 per cent as proposed in the draft direct taxes code, said a senior Finance Ministry official. Currently, domestic firms earning total income of over a crore in a year have to pay corporate 30 per cent tax. Besides, surcharge of 10 per cent and education cess of 3 per cent are imposed on them, taking the total tax liability to 33.99 per cent. Those earning up to Rs 1 crore of income draw a total tax liability of 30.9 per cent.— PTI
	NMDC biggest loser Mumbai, February 7 The past week, during which benchmark index Sensex dipped below the psychological 16,000-level, saw all top 10 valued firms losing over Rs 67,000 crore from their market capitalisation. During the week ended February 6, NMDC fell the most. The country's largest iron ore producer, at the third place in order of its valuation, lost Rs 17,761.86 crore to have a market capitalisation of Rs 1,79,442.32 crore. In the past week, the Sensex plunged 442 points to 15,915.65 at the end of Saturday's trade on the BSE. Reliance Industries maintained its numero-uno position even after losing Rs 17,282.43 crore from its valuation, which took its total m-cap to Rs 3,24,948.84 crore. ONGC and NTPC together lost a sum of Rs 8,719.42 crore from their valuation. At the end of the week, the total m-cap of ONGC, which is at the second spot, declined to Rs 2,34,099 crore and NTPC, at the fourth place, saw its valuation plunge to Rs 1,69,073 crore. During the past week, NTPC came out with its follow-on-public offer, which was subscribed 1.2 times. The issue, through which the government is divesting 5 per cent of its stake at a floor price of Rs 201 a share, is valued at Rs 8,286 crore. — PTI
	Market ready for rebound: Analysts Mumbai, February 7 The Dalal Street may witness a corrective bounce back this week buoyed by a recovery in the US markets as analysts feel traders are waiting on the sidelines to enter the market shrugging off fresh concerns over the world recovery. "The markets are ready for a corrective bounce back. It fell steeply in the last few days and now some upside can be seen as traders are willing to enter the market at this levels," Unicon Financial chief executive Gajendra Nagpal said. Marketmen said the signal for a rise has already come in the market as the Sensex regained 125 points or 0.79 per cent on Saturday to close at 15,915.65 points. On Friday, shrugging off the fears of Europe's sovereign debt problems, the US markets ended in the green, making traders optimistic about a possible bounce-back rally. The optimism has been driven by a possible EU action on these debt problems. "It seems the US markets have found its support. The markets have fallen very sharply in the past few sessions and no further fall is expected this week as Asian cues are expected to be positive on Monday," SMC Global vice-president Rajesh Jain said. However, traders cautioned that with the strengthening of US dollar, foreign investors would continue to pull out funds which could put some pressure on the spot market. "Domestic institutions would invest next week. It is doubtful whether the market will be able to sustain upside as rising dollar would keep it volatile," Taurus Mutual Fund managing director RK Gupta said. However, marketmen cautioned that a strong dollar is a cause of long-term concern as investors might miss out on a pre-Budget rally. — PTI
	First IT investment region for in AP soon Suresh Dharur Tribune News Service Hyderabad, February 7 India’s first Information Technology Investment Region (ITIR) is set to come up here with a potential to attract investments to the tune of Rs 2.19 lakh crore over the next five years. The project, covering an area of 200 km, envisages development of self-contained townships, housing IT, the IT enabled Services (ITeS) and electronic hardware manufacturing units. “We will soon send a feasibility report to the government for approval. All industrial promotion schemes and incentives will be made available to companies establishing their operations in the ITIR region,” Chief Minister K Rosaiah said. The ITIR would bring huge investments into the state along with enhanced GDP levels and creation of enormous direct and indirect employment, he said. The ITIR will be developed in public-private-partnership mode over a period of 25 years for growth of the IT, the ITeS and hardware manufacturing sectors. “For the first time in the country such a massive project in the IT sector has been taken up. On completion, it will provide direct employment to about 15 lakh people and indirect employment to another 53 lakh,’’ state IT Minister K Venkat Reddy said. Meanwhile, the state government is giving finishing touches to the Information and Communication Technology (ICT) Policy - 2010-15. “Based on the inputs from the captains of various verticals of the IT and the ITeS sector, the government is contemplating providing incentives to the industry to conduct seamless operations in the state,” Rosaiah said.
	SGPC, HDFC Bank tie up for donation Tribune News Service Amritsar, February 7 A new channel has been opened by the SGPC for those living abroad who wish to donate for langar (community kitchen), holding of Akhand Path and maintenance and construction of shrines. An agreement was reached between the committee and HDFC Bank during the inauguration of the facility, Payment Gateway, here yesterday. A Rajan, chairman, HDFC Bank, was also present on the occasion. This facility would enable NRIs to give direct donations into the accounts of the SGPC, said Joginder Singh Adliwal, secretary, Shiromani committee. He added that it was a long-pending demand of the NRIs, who had urged a number of times to the committee for evolving such a system of direct payment of donations. Rajan said a website, www.sgpconline.net, had been created in this regard and a link of which had also been provided at www-sgpc.net. He said the customers could also able to make donations through their credit cards with this facility.
	Tax Advice NRIs can lend up to $2.5 lakh to kin by SC Vasudeva Q. I am an NRI based in the UK since 2003. On account of some financial difficulties, my brother wants to borrow Rs. 3 lakh from me. The amount has to be paid from my NRE account which I maintain with State Bank of India. I do not have NRO account. Can I make payment to him from my NRE account? — Harbans Singh A. In accordance with the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations 2000, an individual resident in India may borrow a sum not exceeding $ 2,50,000 in foreign exchange from his close relative subject to the following conditions: The loan is interest free; the maturity amount is not less than one year; and the amount have been received by a person resident in India by inward remittance in foreign exchange through normal banking channels or by debit to NRE account of the NRI. The term ‘close relative’ includes brother. You can thus lend the amount to your brother from your NRE account. Share income Q. I am a senior citizen having an annual income of Rs.2 lakh without having any benefit u/s 80C which is exempted. Besides this income, I have an approximate Rs1.50 lakh from share business. I contacted my CA to deposit the advance income tax on this share income. He advised that this share income would be clubbed in my trading business for calculation of income tax purpose. I have been told by someone that I have to pay 10 per cent on such business. Kindly advise me whichever is correct and under which section of I-Tax Act as I am already over delayed in depositing the advance tax. — A.K. Chawla A. The information given by your CA is correct. The income from shares business will have to be taken as part of your total income on which advance tax will be payable. The rate of 10 per cent was applicable for the taxability of short-term capital gains arising from the transfer of equity shares in a company or units of equity-oriented funds held for less than 12 months. The above rate has now been increased to 15 per cent. The rate of 15 per cent will be applicable if the transaction relating to transfer of shares have been subjected to Securities Transaction Tax. Since you have stated that you are carrying on the business of purchase and sale of shares, the above provisions of the Act would not be applicable to you and the profit from the business of share dealings will have to be clubbed with the other income on which tax would be charged at the normal slab rate. House construction Q. Novaritis repurchased 120 shares @ Rs 450 per share allotted to me in June, 2009. This full money is a part of sum invested in the purchase of self-occupied house in August, 2009. Please advise if I will get the benefit of income tax on LTCG under Section 54F of I-T Act. — S.L. Bansal A. Yes, you will be entitled to claim the benefit of exemption from the taxability of long-term capital gains in case the entire sale proceeds of shares have been utilised towards the construction of the house. I hope you are aware that the construction of a residential house has to be completed within three years of the date of the transfer of a long-term capital asset i.e. shares of Novartis. Tax on arrears Q. Whether income tax is to be deducted by the banker for the arrears paid to the pensioners in the current year for the revision of pension from the previous year. If it is to be then at what rate? — Vivek A. The bank will have to deduct TDS on the amount of arrears of pension to be received by a pensioner. The applicable tax rate will be based on the presumption that the entire amount of pension, including arrears, represents the total income of the pensioner for the financial year for which the tax is required to be deducted under section 192 of the Income-tax Act 1961 (the Act). NRO Q. My son opened a saving account in State Bank of India at Panchkula in 2003. He left for Canada for a permanent resident Visa in 2008. His bank account is still in operation and he has given a power of attorney to me for operating such account. He came to India for a few days in the preceding year. Please let me know whether the account maintained by him can continue as it is or there any requirements for the closure of the account. — A.K. Mehta A. It will be advisable to inform the bankers about the migration of your son to Canada. His account will have to be converted into a Non-Resident (Ordinary) Account. In accordance with the master circular issued by the Reserve Bank of India, in case a person resident in India leaves India with an intention to stay outside India for an uncertain period, his existing account is required to be designated as Non-Resident (Ordinary) Account. He can thus continue to maintain his account on the condition that he acts in accordance with the requirements of the Reserve Bank of India.