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Pan-India 3G bid reaches
Rs 15,416 cr
Reliance Infra net dips 27 pc
Investor Guidance
Aviation Notes
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Pan-India 3G bid reaches
Rs 15,416 cr
New Delhi, May 15 Having projected a now meagre figure of Rs 35,000 crore from the auction of the 3G spectrum for mobile phone services in the country, the Finance Minister would have enough revenue at his hands after the auction to reduce his borrowings as a result of the fiscal deficit. After the completion of the auction on the 30th day, the government's provisional revenue from the sale of 3G airwaves reached Rs 62,253.83 crore and nationwide licence price was at Rs 15,416.56 crore. The government has to give out four such licences and along with the sale of the broadband wireless access (BWA) services the government’s revenue from the two auctions may well touch Rs 75,000 crore. The Finance Minister has gone on record saying that windfall on account of auction of 3G telephony spectrum would provide more elbow room to the government to promote growth and deal with rising prices. After the conclusion of 167 rounds of auction, the pan-India 3G licence price was around 340 per cent higher than the Rs 3,500 crore reserve price. Earlier, the government had said that it hoped to rake in Rs 55,000 crore from both the 3G auction and the rolling out of broadband wireless Internet services in the country. Slots for three-four players are available in each of the 22 circles into which the country has been geographically divided for the 3G services, which will facilitate faster connectivity and enable applications such as Internet TV, video-on-demand, audio-video calls and high-speed data exchange. Nine telecom companies - Bharti Airtel, Reliance Communications, Vodafone Essar, Idea Cellular, Tata Teleservices, Aircel, Etisalat, S Tel and Videocon Telecommunications - are participating in the online auction process which will end only when the demand is equal to the number of slots available in each circle. The auction started on April 9. The government has already given BSNL and MTNL spectrum for 3G services on the condition that they pay the same licence fee as would be levied on private players after the auction. Mumbai continued to attract the highest bid at Rs 2,910.49 crore. It was followed by Delhi, the provisional winning price for which stood at Rs 2,885.68 crore. Karnataka was at Rs 1,564.27 crore followed by Tamil Nadu at Rs 1,464.94 crore and Andhra Pradesh at Rs 1,255.56 crore. While Delhi, Punjab, Orissa, Bihar, Kolkata and Assam witnessed more players in fray than the number of slots available, Mumbai, Jammu and Kashmir, Haryana, Madhya Pradesh, West Bengal and Kerala could not attract enough bidders. The winning firms will have to deposit the money within 10 days after the auction and the successful bidders would be allowed to offer 3G services on a commercial basis from September 1. |
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Mumbai, May 15 Total income rose to Rs 2,810.6 crore for the January-March quarter 2010, from Rs 2,691.6 crore in the same quarter last fiscal, Reliance Infrastructure said in filing to the Bombay Stock Exchange. The board of directors have proposed an interim dividend of Rs 7.10 per share on the face value of Rs 10 each to the shareholders. RNRL profit up 26 pc
Reliance Natural Resources Ltd (RNRL) today reported a 26.85 per cent growth in its consolidated net profit at Rs 90.75 crore for the year ended March 2010. Total operating income of the Anil Ambani-led firm rose to Rs 298.38 crore in the year ended March 2010, up 10.50 per cent from Rs 270.01 crore in the same period a year-ago, the filing added. Reliance Power
Reliance Power today said its consolidated net profit jumped nearly three-folds to Rs 683.8 crore for the year ended March 31, 2010. The company had a net profit of Rs 244.5 crore in the year ended March 2009, Reliance Power said in a filing to the Bombay Stock Exchange. Total income rose to Rs 843 crore in 2009-10 from Rs 360 crore in the previous fiscal.
— PTI |
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Investor Guidance Q: I have purchased a flat in 2008 which was under construction and I got the occupation certificate (OC) only in March 2010. However, till such time I have been paying the EMI of loan (principal+interest) from May 2008. In the FY08 and FY09, I could not get the interest deduction benefit as I didn't have the OC. Hence in FY10 and going forward, I apportioned the interest paid in the first 2 years (2008 and 2009) into 5 parts and wish to claim the same along with the deduction of Rs 1,50,000 available from this year. Query: Now the apportioned interest part comes to Rs 27,000 (Rs 1,35,000/5). Now, whether the interest deduction benefit for current year 2010-11 should be Rs 150,000 + Rs 27,000 or only Rs 150,000. Please explain. 2. Can't I get the benefit of both HRA and interest deduction, if I am residing in a rented apartment which is in the same locality as my purchased flat? — Rahul Guha A: The interest paid prior to taking possession is deductible in five equal instalments starting from the year in which possession is obtained. So, basically your understanding of the law is correct. However, the overall limit for interest deduction under Sec. 24 for any year is Rs 1,50,000 for self-occupied property. This includes the instalment of the pre-possession interest. Therefore, in your case, the total interest deductible in year 2010-11 would be Rs 1,50,000 and not Rs 1,50,000+Rs 27,000. Also, as long as you pay rent for the premises you live in, you are eligible for the HRA deduction notwithstanding whether you own a flat in the same locality or otherwise. Capital gains on ESOPs
Q: I have a question on employees stock options (ESOPs). I was allotted 20,000 shares in 2006 @ Rs 181.40 and these shares vested in 2007. In February 2010, I purchased the vested 1,700 shares @ Rs 181.40 at which time the Fair Market Value (FMV) was Rs 248.25 for which I paid the tax of 30.9%. I sold the 1,700 shares in March 2010 @ Rs 240. Please let me know if I have to pay tax as some of my colleagues say that I don’t have to pay capital gains as the FMV was higher than the selling price.
— Kenny Scanlon A: As per the current law, the difference between the FMV and your exercise price of Rs 181.40 would be taken as perquisite and brought to perquisite tax. Subsequently, upon sale, the difference between the sale price and the FMV would be the capital gains. Therefore, if you have paid the tax on the difference between Rs 248.25 and Rs 181.40 on the 1,700 shares, then in effect the FMV of Rs 248.25 becomes your purchase price when you sell the shares. And since the same is lower than your sale price, you do not have to pay capital gains tax. So your colleagues are right! PPF account
Q: Please clarify if an investment of Rs 70,000 in PPF can be made in the account of the parent as well as the account of the dependent child. I am not bothered about the tax deduction looking at this more from the point of view of an investment option. Earlier, this was said to be not allowed and it was mentioned that interest on account will not be given. Request you to confirm if the same still holds good.
— Vaibhav A: You can contribute Rs 70,000 to the account of self and your minor child put together. This holds good whether you claim tax deduction or not. However, there is no embargo on you contributing to the fullest extent to the account of your spouse and major children, married or otherwise. Basically, it is a good idea to earn 8% tax-free from all the accounts. Basically, the child has to be major, dependent or otherwise. The authors may be contacted at wonderlandconsultants@yahoo.com |
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Aviation Notes
The international travelling, even to neighbouring countries like Nepal, Sri Lanka and Dubai, has not only become expensive and joyless but it has become an unbearable pain to departing passengers owing to erratic functioning of the GMR’s consortium, Delhi International Airport Limited (DIAL), at the Indira Gandhi International Airport (IGIA). At least on three nights in a week, particularly Saturdays and Sundays, the departing passengers have to jostle and even lose their wallets before being able to set their feet at the entry point of the renovated departure terminal building. Why this sudden deterioration? It is because there is an uncontrolled traffic at the IGIA’s departure concourse - passengers, visitors, trolleys, scattering of suitcases, cars, touts and agents hovering around causing irritation. The plight of arrival passengers is no better. They are harassed at the immigration counters; they have to wait for long to get their baggage. Then they are swindled by touts, baggage handlers and taxi drivers. The relations, who come to fetch their passengers, face enormous problems in parking their cars even after paying exorbitant fee of Rs 160 for general parking and Rs 240 for premium parking. Who is responsible for fixing these parking fees? Why is fee so high? Present capacity for car parking is little more than 2,000. The DIAL is constructing its own parking bay, which will levy its own fees. The DIAL charges users fee from passengers at Delhi, Bangalore and Hyderabad. Why this levy? Does Railways charge any fee from passengers for improving infrastructure at stations and buying/manufacturing new trains. Why should then private operators charge this fee? Have these airports been privatised? If no, the fee, earned by the private company of GMR is totally uncalled for. Why there is sudden deterioration in the functioning of the IGIA during past six months or more? There are several reasons. But one most important cause is that the consortium’s CEO has been known more for his cargo handling than passenger handling. If the functioning of the IGIA has deteriorated so is the case with the operation of two other outfits -Civil Aviation Ministry and Directorate-General of Civil Aviation. The senior officials of both these bodies have been guilty of seeking and securing important jobs in private airlines for their kith and kin. If relations of politicians have been instrumental in exploiting National Aviation Company (Air India) for their importance, the kith and kin have been secuirng key positions in private carriers. No wonder, private airlines have turned ‘blue eyed airlines’ in comparison to the national carrier, which is flying through turbulent weather. The civil aviation scenario in Delhi will considerably improve when another airport is raised. The rule prohibiting another airport within the radius of 150 km has been done away. There are several countries which have two or more airports within the radius of 150 km. Taking this as a yardstick, the government has consented for new airports to be built. Apart from Noida, maybe, there will be another airport in Navi Mumbai and some other centres, including Goa and Kerala. Both Delhi and Mumbai airports have no capacity for expansion and it is high time to have airports in and around these metropolitan cities.
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