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PAN to be must for all MF investments
LIC to invest Rs 61K cr in stocks
Banks woo farmers
Google fails to buy out Groupon
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Assocham for setting up 15 clusters in Punjab
Tax Advice
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PAN to be must for all MF investments
New Delhi, December 5 The move is part of the revised Know-Your-Customer (KYC) compliance norms to be adopted by fund houses from next year in order to comply with money laundering prevention rules. Currently, individual investors need to quote PAN only for investments of Rs 50,000 or more, although non-individual investors are required to quote their PAN for all amounts. All the fund houses have been asked by industry body AMFI to comply with new KYC norms, which would include collecting details like PAN, address proof and photograph of all their new and existing investors, with effect from January 1, 2011. The AMFI (Association of Mutual Funds in India) decision follows a direction from market regulator SEBI earlier this year to tighten the KYC norms to check fraudulent practices and money laundering activities. Earlier in 2007, SEBI had made it mandatory to furnish PAN - which is allotted by the Income Tax Department - for all stock market transactions as part of efforts to check fraudulent practices. The fresh move will lead to MF investors going through some additional paper work, but it is expected to also benefit them as the entire KYC documentation would be centralised across all the fund houses with the help of PAN details. Subsequent to this, existing investors would not need to go through any paper work for fresh KYC compliance at the time of their new investments. With AMFI asking all the fund houses to implement new and standardised KYC norms with effect from next month, the fund houses have started the process of collecting the required documents from their investors. In a circular issued to all the fund houses and distributors, AMFI has said that the industry has signed up CDSL Ventures Ltd (CVL) to undertake the centralised record keeping of all KYC documents. On completing the one-time process of common standard of KYC with CVL, the investors will be able to transact across multiple mutual funds without having to repeatedly submit their documents with each mutual fund, AMFI said. The KYC norms were first implemented in the mutual fund industry in February 2008 for all investors putting in Rs 50,000 or more in mutual fund schemes. Subsequently, the rules were revised with effect from October 1, 2010 and all the investors other than resident individuals were asked to furnish PAN irrespective of the amount. However, resident individuals were allowed to invest up to Rs 50,000 without quoting their PAN details. There are 44 fund houses in the country, who collectively manage over Rs 7 lakh crore of assets in more than four crore investor accounts. — PTI
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LIC to invest Rs 61K cr in stocks
New Delhi, December 5 "This year we are likely to invest around Rs 61,000 crore (in equity market)," LIC Managing Director Thomas Mathew told PTI. Increase in exposure to equity market secondary or primary market would depend on market condition, he said. "We hold shares for long term. Whether it's down or up it's opportunity for us," he said. — PTI |
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Banks woo farmers
Chandigarh, December 5 And it is not just the public sector banks, but also the private banks and finance companies spreading their wings in the rural areas of Punjab and Haryana. A number of these banks and finance companies, who are advertising their products at the Agro Tech 2010, organised by CII, say that the good credit culture in the two states has forced them to increase their exposure in the agriculture sector and launch new retail loans suited to the needs of the farmers. Providing loans to start rose cultivation, dairy, buying tractors/ combine harvesters, loans against warehouse receipts - these banks are going all out to offer the best deals to the farmers. In the wake of a bumper wheat crop earlier this year, the farmers are spoilt for choice as each of these institutional lenders is offering loans at competitive rates. Thanks to the RBI directive making it mandatory for banks to advance three per cent of the total loans to the farm sector, farmers in this region are certainly spoilt for choice. Seen at the Agro Tech here, Kotak Mahindra Bank, Axis Bank, L&T Finance and SBI were wooing the farmers with a wide bouquet of loans. An official of Kotak Mahindra Bank informed TNS that the bank’s total exposure in the agriculture sector in Punjab and Haryana stood at Rs 250 crore and they were advancing Rs 15 crore worth of agriculture loans each month. “Though as of now we are offering loans for buying new tractors, we have just launched two new loans - personal loans and refinancing of old tractors. We are also providing loans to the lessee farmers,” said the official. Axis Bank, too, has a high exposure in the agriculture sector in this region, with Rs 1,500 crore being advanced to farmers here. Naresh Kumar, retail agri head, Punjab and Haryana, Axis Bank, said because of a good credit culture and pay back capacity of farmers in this region, they were launching several new products for the farming community.
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Google fails to buy out Groupon
New York, December 5 "Google Inc's multi-billion dollar bid to acquire local deals site Groupon Inc ended Friday as the two sides broke off talks," The Wall Street Journal reported, citing a source familiar with the matter. It seemed as though the negotiations between Google and Groupon were on the verge of completion at one point of time. However, Groupon's board of directors — many of whom are investors in the company — were unable to reconcile their differences over whether to accept the proposal. The company continues to remain an independent, privately held firm and plans to come with an IPO in the future, the report noted. AllThingsD had previously reported that Google offered USD 5.3 billion for Groupon, with a further USD 700 million to be paid subject to Groupon's ability to hit certain performance milestones. — PTI |
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Assocham for setting up 15 clusters in Punjab
Chandigarh, December 5 Releasing the Assocham study on “Cluster Development for Inclusive Growth in Punjab”, Babu Lal Jain, chairman of the chamber’s entrepreneur development council and DS Rawat, national secretary general said the total funds required to provide basic and essential infrastructure in these clusters will be about Rs 500 crore which could be mobilised through Public-Private Partnership (PPP). Rawat said there are already 20 clusters in Punjab recognised by the Government of India as against the 6,500 clusters across India. “The state is one of the most prosperous and cannot sustain longer due to lack of proper infrastructure, electricity shortage, social integrity and labour force shortage. About 75 per cent of the total population of Punjab is directly or indirectly dependent on agriculture. The state produces 14 per cent of India’s cotton, 20 per cent of India’s wheat, and nine per cent of India’s rice,” he said. The 15 new clusters suggested by Assocham are at Mandi Gobindgarh (agricultural implements), Amritsar (rice mills, shoddy yarn, powerloom), Batala (machine tools, rice mills, castings & forgings), Faridkot (embroidery, rice mills), Jalandhar (sports goods, agriculture implements, rubber goods, leather tanning, leather footwear, surgical instruments), Kapurthala (rice mills), Kartarpur (wooden furniture), Gurdaspur (rice mills), Phagwara (diesel engines), Patiala (agricultural implements, cutting tools), Sangrur (rice mills), Bathinda (agriculture implements), Barnala (zari & zardozi), Rupnagar (carpet, agricultural implements) and Pathankot (embroidery, cutting tools).
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Tax Advice
Q. I retired on 31.5.2006 as PA from the Punjab State Electricity Board, Patiala & took gratuity of Rs 3,43,217. Again on revision of new pay scales, I took another amount of enhanced gratuity of Rs 73,261 only by getting deducted/deposited an Income-tax of Rs 7,550 on 8.10.10 by my Deptt. i.e. PSEB (Now PSPCL & PSTCL).
Sir, I have learnt that the gratuity has already been enhanced from Rs 3.50 lakh to Rs 10 lakh by Parliament w.e.f. 24.5.2010. Sir, Can I have an expert advice from your goodself that whether I am entitled to take the refund of Rs 7,550 already got deposited, from the Income-tax Deptt. in the Income-tax return for the year 2010-11 (Assessment Year 2011-12), as on my making inquiry from the I-Tax Deptt., PTA unofficially one day, learnt that they have not received any Notification in this respect (gratuity from Rs 3.5 lakh to Rs10 lakh). Please tender advice how I take the refund of Rs 7,550 got deposited as tax, calculated on enhanced gratuity by my Deptt. (PSEB) while releasing the same to me. Hoping to receive a good opinion in view of above, so that I can claim the refund from the I-Tax Deptt. in my I-tax Return for the year 2010-11 (A.Y. 2011-12). — Swaran Singh A. The Notification issued by the Government of India with regard to the increase in the limit of exempted amount of gratuity would not be applicable to you. The notification as to the increased limit is applicable to persons retiring or on after 24th May, 2010. On the basis of the facts given in the query, retirement date in your case is 31st May, 2006 and therefore, the notification issued by the Government of India for increasing the limit to Rs. 10 lakh is not applicable to you. You have not indicated whether you had claimed the relief under Section 89 of the Act in respect of arrears of gratuity received in financial year 2010-11. You can make a claim in this respect with your employer. If the same has not been claimed as aforesaid, you may make the claim at the time of filing the tax return for the assessment year 2011-12. Exemption limit
Q. I am a resident Indian and a senior citizen. Is it possible that income from other sources, taxable short-term capital gains and taxable long-term capital gains be aggregated and the basic exemption limit of Rs 2.4 lakh be availed? — Ramesh Chand A. The basic exemption limit is available from all heads of income other than income from winning from lotteries, crossword puzzles, races, card games etc. Therefore, you can take the benefit of basic exemption limit for income from other sources except the winnings from lotteries etc referred to herein above, short-term capital gain and long-term capital gain taken together. The basic exemption limit is to be adjusted against incomes which are taxable for example in your case income from other sources and short-term capital gain. In case the basic exemption limit is not exhausted then the same can be adjusted with the income which is taxable at special rates for example taxable long-term capital gain. I-T refund
Q. My ex-employer has deducted income tax on the final settlement amount, and has issued the requisite form (period April, 2010 to Aug., 2010). The amount has not yet been settled by my employer, though TDS has been deducted and paid to the income-tax department. How should I compute my tax in my return? Can I claim a refund for the excess TDS deducted? — K.K. Chugh A. As per Section 15 of the Act, salary is taxable on due or receipt basis, whichever is earlier. Thus, your ex-employer is correct in deducting the TDS on accrual basis though the full and final settlement is yet to be made. You will have to show the entire income, including full and final settlement amount, as per the form issued to you in the tax return and you can claim the deduction of tax deducted at source from the tax payable by you. In case excess deduction of tax has been made by your employer/ex-employer, you can claim the refund for such excess deduction made by your employer/ex-employer. Gift & tax
Q. Can my mother transfer some of her shares to my wife as a gift. Can such a transfer be shown as gift for income tax purposes? These shares had been purchased more than a year ago. How the transaction will be treated in the income-tax return of my mother? — R. Kumar A. Your mother can transfer the shares to your wife and such gift shall not be treated as income in the hands of your wife in terms of Section 56 of the Act. There is no column in the tax return to show such a gift. However, it will be advisable to prepare the gift papers so that the same can be presented to the department as and when any inquiry in this regard is made. However, whenever your wife will sell these shares, then as per Section 64 of the Act, the capital gain arising on sale of such shares shall be reflected as income of your mother and shall be taxable in her hands. In case the shares were purchased by your mother more than a year ago and securities transaction tax has been paid at the time of sale of shares by your wife, such capital gain being exempt from tax, will be reflected as exempt income in the tax return of your mother. Medical claim
Q. I retired from Punjab Govt. and my wife who is wholly & solely dependent upon me, has undergone bypass heart surgery in Fortis Hospital, Mohali in December, 2009. I have spent Rs 2 lakh on her treatment but the Punjab Govt. has reimbursed to me only Rs 1,04,000. I want to know whether any tax benefit is available to me on the balance amount i.e. Rs. 96,000. My expenses on medicines for her follow up out door treatment in Fortis Hospital, Mohali are about Rs 1,200 per month. Since the Punjab Govt. does not allow reimbursement on out door treatment, whether any tax benefits are available for the said amount. — Kuldeep Singh A. There is no provision in the Income-tax Act, 1961 (The Act) to enable you to claim deduction for the amount of Rs 96,000 paid in respect of your wife’s surgery. Section 80DDB of the Act provides for a deduction in respect of medical treatment of specified diseases or ailments. These include neurological diseases, malignant cancers, Aids, chronic renal failure and hematological disorder. The expenditure incurred on bypass heart surgery is not covered by the provisions of the said section. You would not be entitled to claim deduction in respect of the expenses on medicines for out-door treatment. It would be advisable to get a medical insurance which would enable you to claim such expenses from the insurance company. |
Lakshmi Mittal Delhi-Milan flight Cheema Boilers awarded
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