The Tribune, Chandigarh, India

	Industry against 100% FDI in defence: CII New Delhi, May 9 Indian and foreign industries in defence sector are divided over raising the foreign direct investment (FDI) to 100 per cent, a survey has found. While the Indian industry, including the Small and Medium Enterprises (SMEs) are in favour of hiking the FDI limit to 49 per cent, foreign companies feel limiting it would make it an "unattractive proposition", the study found. The study 'FDI in Defence - A Case for Review', released here today by CII, said the demand was for a higher FDI cap in defence industry over the existing 26 per cent. "The major proponents for increasing FDI cap, apart from the foreign vendors, are the SMEs and larger organisations seeking to diversify into defence production," the study said. They believe that increasing FDI limits would help to secure the transfer of key technologies to India, and would boost the foreign capital investment available to them. "Despite attractive defence projects in the pipeline, certain foreign vendors felt that where Transfer of Technology (ToT) was involved, the returns likely to be generated on the basis of the current FDI regulations -- coupled with the lack of control they would have over the technologies and know-how they are being asked to provide -- makes entry into the Indian market an unattractive proposition," it said. The CII found that the FDI issue was driven by a number of factors. These were sovereignty concerns in respect to the ownership of core strategic industries like defence; government's desire to rapidly acquire more advanced technologies; and the assistance foreign players can provide to SMEs. That apart, there were concerns of the larger players, both private and defence public sectors units, which felt greater foreign involvement would be at the expense of their own businesses. Further, a number of foreign companies were keen on making India their "home market" - both a major domestic sales market and a global manufacturing hub. "But the current FDI restrictions constrain their ambitions in this regard. The result is it has limited FDI inflows to India with a total of only Rs 7 million between April 2000 and February 2009," the study said. Among the other key findings were that the industry was not in favour of 100 per cent FDI in defence segment, though more than 50 per cent of CII members wanted an increase in the FDI limit to 49 per cent, which they felt would be beneficial. "The FDI should not exceed 49 per cent," the study said. The CII members said the current 26 per cent FDI in the segment could be increased subject to Joint Ventures (JVs) also engaged in Research and Development and the Intellectual Property Rights (IPR) should rest with the JV. — PTI
	Indian Bank to expand branch network Ruchika M. Khanna Tribune News Service Chandigarh, May 9 With retail loans being the focus area for growth, Indian Bank is set to introduce innovative products under its retail loan portfolio. In the coming week, the bank will be introducing a jewel loan for senior citizens and a combo loan, wherein a person availing a home loan can get special discounts on auto and retail loans. Talking to TNS here today, TM Bhasin, chairman and managing director, Indian Bank, said this year the bank would focus on expanding its retail loans, loans to micro, small and medium enterprises (MSMEs) and current and savings accounts. Besides, the bank is also looking at expanding its network in north India, especially Punjab, Haryana and Himachal Pradesh. “Thus, a lot of innovative products would be introduced in these segments. This week, we are launching a jewel loan for senior citizens, which will enable them to get a loan (up to 70 per cent of the valuation) against their jewellery, at just 10 per cent rate of interest. This will be a liquid type of loan, and will be processed within 24 hours. We already have a jewel loan in south India and assets under management in this portfolio is to the tune of Rs 7,000 crore. Another combo offer will be introduced for those loanees who have a good credit history for three years. They will be offered auto and retail loans at a discount of 0.5 per cent rate of interest, and the loans will be processed in seven days,” he said, adding that the two products would revolutionise the retail loan segment. The CMD said the bank, with its network of 1,756 branches across India, was planning to add 190 new branches this year. Of these, 16 branches will be opened in North - six each in Punjab and Haryana and two each in Himachal Pradesh and Chandigarh. Besides, the bank is also looking at good growth in business from its two overseas branches at Singapore and Colombo. “As against business of Rs 6,250 crore from these overseas branches, we are looking at increasing the business to Rs 10,000 crore during this fiscal,” he said. Bhasin said the bank had done exceptionally well in the last financial year, with the net profit of the bank at Rs 1,544.99 crore, showing a 24.8 per cent growth.
	Indian ADRs lose $12 bn in a week New York, May 9 Indian stocks trading on the American bourses collectively lost over $12 billion last week, with IT major Wipro topping the losers' chart. For the week ended May 7, the 16 Indian companies listed on the New York Stock Exchange and Nasdaq together lost $12.55 billion from their market capitalisation, with Wipro alone shedding a staggering $3.14 billion to settle at $29.82 billion as Wall Street saw one of its worst weeks in many months. Wipro is followed by copper major Sterlite Industries whose market capitalisation tanked by $2.39 billion to $12.85 billion during the week when the main American indices plunged more than five per cent as the escalating Greece debt crisis rattled the global markets during the week. Infosys Technologies' valuation fell by $1.97 billion to $32.25 billion, while the market value of HDFC Bank decreased by $1.57 billion to $21.05 billion. — PTI
	Tax Advice Rebate allowed on amount deposited in son’s PPF a/c by SC Vasudeva Q. I am a Punjab govt. pensioner. Can I contribute towards the PPF A/c of my married son so that I may get income tax exemption under Section 80C. — Jaswant Singh Barnala A. You should be entitled to get a deduction in respect of the amount deposited in the Public Provident Fund of your married son as the same is permitted under Section 80C of the Act. II Q. I am a senior citizen. I am a pensioner and have rental income. The Income Tax Act Section 80C(4) allows deduction on PPF contribution made in case of individual, in the account of the individual, wife or husband and any child (major or minor, married or not) of such individual, and in the case of an HUF any member thereof. I have no own PPF account. My sons, who are married and in government service, have their own separate PPF A/cs. My one son has deposited Rs 30,000 in his PPF A/c and will take rebate accordingly. I also deposited Rs 35,000 in my son’s PPF A/c and I want to take rebate on Rs 35,000. Similarly, my second son has deposited Rs 20,000 in his PPF A/c and will take rebate of Rs 20,000. I also deposited Rs 35,000 in his PPF A/c and I want to take rebate on the deposit of Rs 35,000. Thus I want to take rebate on total Rs 70,000 from two PPF A/cs of my sons. Kindly advise if the rebate of Rs 70,000 is admissible to me or not. — Uttam Singh A. The deduction under Section 80C of the Income-tax Act 1961 (the Act) is allowable in respect of amount paid or deposited by an assessee by way of contribution towards PPF account set up by the Central Government where such contribution is an account standing in the name of the child of the assessee. You should therefore be entitled to claim the deduction to the extent of Rs 70,000 in respect of the amount deposited in the PPF account of your sons. Section 80C Q. The interest accrued on a deposit in the bank under the tax saving scheme and on the National Saving Certificates of the post office for the year 2009-2010 is deemed to be deposited in the abovesaid schemes does qualify for rebate under Section 80C of the Act. Does extension of deposit for another three years after expiry of five years in the year 2010 under the senior citizen savings scheme in post office qualify for benefit under Section 80C of the Act. Please clarify it. — Parshotam Dass A. The interest accrued on National Saving Certificates is deemed to have been invested in the acquisition of National Saving Certificates and therefore is allowable as deduction under Section 80C of the Act. A reference made by you in the query regarding interest accrued on the deposit in a bank under tax saving scheme may kindly be elucidated so that the issue can be clarified in accordance with the provisions of the Act. Section 80C of the Act now provides for the deduction (within the overall limit of Rs 1 lakh) in respect of amount deposited in an account under Senior Citizen Savings Scheme in accordance with the Rules specified under the said scheme. A depositor is allowed to extend the account for a further period of three years by making the application in the prescribed form within one year after the maturity period of five years. The extension of account is deemed to have been made from the date of maturity irrespective of the date of application. The mode of deposit specified under the Rules is by cash, by cheque or demand draft in favour of the deposit office. In my opinion, therefore, it is not possible to get the benefit of deduction under Section 80C of the Act in respect of any extension of deposit. IT refund Q. I received 40% arrears during the year 2008-09 but 100% arrears were added in my income during 2008-09 and income tax was deducted on that. Now, the government gave 30% arrears out of the remaining 60% and my employer added 30% arrears in my income during 2009-10 and deducted the income tax. Thus, my employer has deducted the income tax twice i.e. in FY 2008-09 and again in 2009-10. Please suggest me the procedure to get the refund. — Raj Kumar Goyal A. In case excess deduction of tax has been made in respect of the arrears received by you, the only method to claim the refund thereof is by filing a tax return and making a claim for the refund of the excess tax deducted at source. Senior citizen Q. I am a pensioner. My date of birth is 02.02.1946. In which financial year/assessment year would I become senior citizen for income tax purposes? — Hans Raj Gupta A. An assessee is entitled to higher basic limit of exemption from tax in case he is of 65 years of age or more at any time during the previous year. In view of your date of birth being 02.02.1946, you should be able to claim such benefit in the assessment year 2011-12 as you will be 65 years of age on 02.02.2011. Gift to daughter Q. My wife gave her daughter (aged 20 years) a gift of Rs 17 lakh for marriage. My daughter prepared an FDR in a bank. She earns interest of Rs 1,75,000. My query is whether my daughter has to file income tax return or not. — Narender Kaur A. A person is required to file an income tax return if his/her total income exceeds the maximum amount on which tax is not payable. In case the income of your wife exceeds Rs 1,90,000 for assessment year 2010-11 she would be required to file a return of income. The position would remain same in case of your daughter. The reply to the query is based on the presumption that your wife is below 65 years of age.