The Tribune, Chandigarh, India

	Huawei, ZTE get nod to supply telecom gear Tribune News Service New Delhi, August 21 Having complied with the conditions laid down by the Indian security agencies, two Chinese firms have been given permission by the government to supply telecom equipment to Indian telecom operators. According to reports, Tata Teleservices and Reliance Communications (RCom), the two operators who had sought permission to import the equipment from Chinese firms Huawei and ZTE, had been given a go ahead. The clearance from the government came after both the Chinese exporters agreed to new tighter rules laid down to address the security concerns. The government had earlier barred the local mobile phone operators from placing orders with Huawei and ZTE on security concerns, resulting from its suspicion that Chinese equipment might have spying technology embedded to intercept sensitive conversations and government communications. The government had tightened rules for telecom gear imports, saying vendors must allow inspection of their equipment and share design and source codes in escrow accounts. Incidentally, the government's move to bar the Chinese firms had hit local telecom operator’s growth prospects in a booming market that is the world's fastest-growing, and is getting ready for rollout of 3G services and broadband networks. ZTE's second-quarter profit fell below market expectations after the Indian restrictions. Minister of State for Telecommunication Sachin Pilot informed Parliament yesterday that the state-run telecom operator BSNL, which was directed in 2009 not to buy Chinese equipment for use in sensitive zones near the country's land border, was now free to deal with Chinese vendors on the basis of the tightened gear import rules. The government had directed BSNL not to buy equipment from the Chinese vendors for deployment in the sensitive regions of the country in the interest of national security, Pilot said. It had barred deployment of Chinese equipments in Assam, Manipur, Tripura, Sikkim, Nagaland, Arunachal Pradesh, Mizoram, Meghalaya, West Bengal, Gujarat, Rajasthan, Punjab, Jammu and Kashmir, Himachal Pradesh, Uttarakhand and Maharashtra. He said the decision was taken because "participation of foreign companies in strategic sector has bearing on the national security. BSNL being a public sector undertaking, its network has to be relied upon in emergency". After the government issued new guidelines on July 28 for procuring telecom equipment from foreign vendors in consultation with the Ministry of Home Affairs to address security concerns, "accordingly, now BSNL may enter into agreement with foreign vendors for purchase of equipment/software/ services," Pilot said. Shenzhen-based Huawei and ZTE have taken on global names like Ericsson, Nokia Siemens Networks and Alcatel Lucent in recent years, winning major contracts in both emerging and developed markets and have gained market share in India with their low-cost products.
	Investor Guidance Resident can repatriate up to $2 lakh pa by AN Shanbhag Q: I am interested in NRI investments in India and also in the fixed deposits. However, I am worried about the repatriation laws of the RBI that may change any time and may compel me to keep the money in India with no option of repatriation. Can you please address this concern of mine and provide a response on the options and possibility of RBI regulation changes etc. — Kedar A: We appreciate your concern. However, note that over the past years, the regulations related with remittance and repatriation for NRIs have actually been liberalised steadily. In fact, now a million dollars may be remitted from one’s NRO account per year. Even for residents, the limits have been steadily enhanced. Now residents may invest/send as gifts abroad up to $200,000 per annum. This limit was $25,000 some years ago. India’s foreign exchange reserves are quite high and the country continues to attract more foreign investment, both portfolio as well as FDI. Therefore, there is no possibility whatsoever of the government to compel any investor to keep the money locked in the country without any option for repatriation. Deceased’s IT return Q: If a person dies in April, 2010, is it obligatory for his family to submit his income tax return for the FY 2009-10? If yes, then whose signatures will be valid on his return? — Manchanda A: The returns are required to be filed in the name of “Estate of --------”. It can be signed by one of the Trustees to the will or his legatee. This procedure may continue for one or two more years, until the estate is distributed appropriately. Exemption u/s 54 Q: I own a flat in Mumbai. I am intending to buy a larger flat (under construction). Likely date of completion of construction is August 2013.The agreement to buy the new flat under construction will be signed now -July 2010, payments will be made in instalments over 3 years and possession of the flat will be given in August 2013. I will sell my current flat after I take possession of my new flat to enable me to pay off the bridge loan taken to buy the new flat. My query is as under: Since I am entering into an agreement now (2010) for the purchase of a flat under construction (in a co- op housing society), will I be entitled to capital gains tax relief on my old flat to be sold in 2013? Will the taking of my possession of the new flat in 2013 be considered as the date of acquisition or will 2010 (date of signing of the agreement to buy the flat) be considered as the date of acquisition. Please clarify. — Porus Karanjia A: Sec. 54 gives exemption from tax on long-term capital gains arising out of sale (or transfer) of buildings or lands appurtenant thereto, and a residential house, self-occupied or not, provided the assessee has purchased within 1 year before or 2 years after the date of sale or has constructed within 3 years after that date, a residential house. If only a part of the capital gain is used, the exemption would be pro-rata and the excess will be chargeable to tax. You are planning to sell the old house within 1 year after purchasing the new house. Therefore, you will be eligible to claim the exemption u/s 54. The date of your signing the contract as well as the payments made to the contractor is immaterial. After you take possession of the new flat in 2013, you will be the owner of two flats. The authors may be contacted at wonderlandcon sultants@yahoo.com
	Aviation Notes ‘T-3 not ready for domestic operations’ by KR Wadhwaney Be it civil or defence, the aviation sector continues to suffer tragic mishaps due to negligence. Ignoring ‘unfavourable’ weather, the Army’s four-seater helicopter, Cheetah, crash-landed near Viswema, near Kohima, on August 18. Three precious lives - Col P.Lal, Capt Rajesh Sharma (pilot) and Capt Nikhil (co-pilot) - were lost and the aircraft sustained a critical damage. Where was the need to operate a flight when the weather was unsuitable in the region? When the defence authorities are so careless in adhering to safety norms, one can imagine the plight of general aviation in civil sector. No matter what advisories are issued by the civil and defence authorities, the pilots continue to violate these norms. The wreckage of the chopper has been found and the probe is being conducted. Regardless of the findings of the probe, there is an urgent need for total adherence to flying norms, particularly in adverse weather conditions, which have been responsible for mishaps. Several precious lives have been lost due to gross negligence but discipline is yet to descend on the pampered community of pilots - be it civil or defence. The Delhi International Airport Limited (DIAL) continues to act in haste bringing upon itself uncalled for problems. While the inauguration of the 5.4 million square feet Terminal-3 was done as early as on July 3, the operations of domestic flights are unlikely to commence until the end of the Commonwealth Games on October 14. There are several grey areas in the Terminal-3 and operations on domestic sectors by the airlines is not possible. This is the latest report of the committee that surveyed the new terminal, which looks impressive but it is not ready for operations. The terminal of any international airport is like township. It is full of facilities and amenities and it is a ‘gateway’ for the country. The new terminal is indeed ‘visual symphony, in art, sculptures and design, but it will become ‘talking symphony’ when passengers transit through it without any hassle... “It does not seem to be so”, said three foreign women passengers, adding: “Things are not moving as they ought to be in a new Terminal.” The ministry officials said: “The shifting of domestic airlines to the new terminal is not advisable at this point of time as we do not want to face any embarrassment during the Games,” adding that “Even international operations have not settled down as there are several glitches, technical and others”.
	RCom unveils Nokia Life Tools service Tribune News Service New Delhi, August 21 Telecom major Reliance Communications (RCom) and Nokia India have jointly announced a first-of-its-kind multi-faceted business alliance.The RCom-Nokia alliance will aim to foster greater use of mobile services, giving consumers an opportunity to get richer experiences and do more with their Reliance mobile phones. The partnership is structured to offer an array of mobile, data and value-added services. The offers include Nokia Ovi Life Tools, Nokia Ovi music unlimited, GPRS and data card for its subscribers across India. Reliance will offer Ovi Life Tools services in two versions, subscription and pay-per-use. While the subscription service for education and entertainment services will be offered at Rs 30 per month, the agriculture service will be available at Rs 60 per month. The pay-per-use service will cost Rs 3 per request. Mobile music has become increasingly popular among the Indian consumers. According to estimates, close to 40 per cent young people prefer to listen to music on their mobile phones. To make it easier for consumers, Reliance Mobile’s GSM customers can download music up to 12 GB data usage(approximately 2,400 songs) from Nokia’s music service - Ovi Music Unlimited using Nokia’s OMU-enabled phones.
	Airtel, RCom ready with 3G infra New Delhi, August 21 Leading telecom operators Bharti Airtel and Reliance Communications yesterday said they were ready with their 3G infrastructure and are waiting for the government to release spectrum. The government is likely to release spectrum on September 1 this year after it gets vacated by the defence forces. "Our network is already ready for providing 3G services. Our content and application are also getting ready for the same and the IT too has geared up. The only thing that needs to be added is the radio network," "I am hopeful that before the end of this calendar year, we should see some light on 3G and real user experience happening," Airtel CEO for India and South Asia, Sanjay Kapoor said. — PTI