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Global economy in danger zone, says World Bank
Robert Zoellick, President, World Bank
CREDAI against realty regulator
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Maruti moves towards normalisation at Manesar
Indiscipline among staff hits Air India
No tax on gratuity up to Rs 10 lakh
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Global economy in danger zone, says World Bank
Beijing, September 3 Speaking in Beijing, Zoellick urged Europe and the United States to tackle their debt problems, and noted that near record-high food prices and volatile commodity markets are threatening the most world's vulnerable people. "The financial crisis in Europe has become a sovereign debt crisis, with serious implications for the Monetary Union, banks, and competitiveness of some countries," he said. "My country, the United States, must address the issues of debt, spending, tax reform to boost private sector growth, and a stalled trade policy." Turning to China, where he is leading a World Bank study on how the nation can improve its economic growth model, Zoellick was upbeat. China is "well positioned" to become a "high-income" nation in the next 15 to 20 years, from its status as an "upper-middle income" country now, he said. The question is whether China can avoid the "middle income trap", where national productivity and income growth stalls after per capita income hits $3,000 to $6,000, Zoellick said. "If China were to continue on its current growth path, by 2030 it would have an economy equivalent to 15 of today's South Koreas, using market prices," he said. "It's hard to see how that expansion could be accommodated with an export and investment-led growth model." Although China is the world's second-largest economy, its per capita gross national income stands at just $4,260, World Bank data showed, less than a tenth of the $47,140 seen in the United States. Critics have long said China relies too much on heavy investment and exports to drive its economy, and should encourage domestic consumption. For Chinese consumption to take off, analysts say China needs to cut income taxes, improve healthcare services and labour mobility, and reduce Beijing's share of national income by raising dividend payouts from state firms, among other measures.— Reuters Crisis looming large
Growth slows and investor confidence weakens World Bank urges Europe and the US to tackle their debt problems Record-high food prices and volatile commodity markets threatening According to World Bank, financial crisis in Europe has become a sovereign debt crisis China "well positioned" to become a "high-income" nation in the next 15 to 20 years |
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CREDAI against realty regulator
Chandigarh, September 3 The code of conduct, which is now being adopted by various chapters of Confederation of Real Estate Developers Association of India (CREDAI), including the Punjab chapter of CREDAI, is aimed to maintain “the friendly cooperation between developers, promoters, builders and customers. From bringing in transparency while signing the agreement with a purchaser to time of booking units, and from legal agreements of sale to price escalation and quality of construction - this new code of ethics will now be mandatory for all members of the CREDAI to follow. Lalit Kumar Jain, president of CREDAI, today said the new code of ethics had been formed to bring in more accountability and transparency. “CREDAI has already implemented this in Karnataka, Gujarat and Tamil Nadu, where the association has achieved a 99 per cent success rate in the redressal of complaints,” he said. Vehemently opposing the constitution of a regulator for the real estate sector, he said while CREDAI was doing its bit to instill consumer confidence, there was no need to have a regulatory body. The government has proposed to form a regulatory body through Real Estate Regulation Bill 2011 which seeks to protect real estate buyers from unscrupulous developers. “The entire gamut of problems in this sector should be addressed by the bill,” he said. “There are 48 departments from where a developer has to take sanctions before the project can take off. This leads to exploitation of developers. The draft bill should also consider reducing the time taken for getting approvals,”he added.
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Maruti moves towards normalisation at Manesar
New Delhi, September 3 The company has been facing major labour troubles at the plant resulting in its sales plummeting for two months on the trot. It had yesterday started production of cars at the second plant at Manesar and after producing 125 cars yesterday, the number went up by another 25 today on the second day of the plant being in function. "In a move to raise production volumes, the company had commenced part production of cars in plant B, the second plant at Manesar yesterday (Friday). The weld shop of this plant was started," the company said. The company said that the two plants at Manesar were integrated and that the output from weld shop in plant B was fed to the assembly line of plant A. "This gives the company flexibility to deploy more manpower in assembly operations, and produce more vehicles," the statement said while adding that the company had recruited 125 ITI-trained operators today.
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Indiscipline among staff hits Air India
by KR Wadhwaney The recent incident of Air India's executive pilot from Bombay zone getting caught with a girl in a Delhi hotel is only tip of the iceberg. Such instances of sex and smuggling are on the rise as there is no discipline in the organisation, which, apart from enormous losses, is reeling under infighting among members of the cockpit crew. The incident is two months old. It happened on the night of July 4-5 when the victim screamed for 'help' in the midnight. The pilot, an executive, is a member of the Indian Commercial Pilots Association (ICPA) of Bombay zone. What action did the ICPA take against the erring pilot for dragging the organisation to disrepute? Similarly, the airline is merely instituting an inquiry, instead of suspending the pilot for his questionable behaviour. According to reports, the pilot in question is influential and enjoys a clout in the Mumbai's political circle. But whatever may be his contacts, should he be allowed to go scot free for his unethical behaviour? The security staff of the hotel used 'master key' to obtain entry into the room. The girl was questioned and allowed to leave the hotel. The airline seniors were duly informed and, according to reports, the pilot was asked to submit a written explanation. Narrow escape
President Pratibha Patil had an agonising time, though brief, as her Indian Air Force (IAF) chopper had a technical snag before taking off at Kollam for Thiruvananthapuram. When the pilot ran the engine, he noticed 'smoke' coming out from the air-conditioner vent. He switched off the engine and then the President was flown in another chopper. According to reports, all Air Force choppers require aggressive maintenance and checks before they are made to fly with VVIPs on board the aircraft. Recently, again, Kochi, when Gulf Air's plane, Airbus A-320 skidded off the runway into 'kutcha' while landing at the international airport. Some passengers did not sustain minor injuries owing to heavy landing. According to the Minister of State for civil Aviation, Vayalar Ravi, rain and strong winds were responsible for the plane skidding. The moot point was why was the pilot granted clearance when the weather was not conducive for operations? The plane, with 137 passengers and six members of crew, veered off the runway. The nose-wheel of the plane was badly damaged. The runway had to be closed for 8 hours and flights were diverted to other airports. The DGCA ordered an inquiry but the tower should be 'cautioned' so that such situations could be avoided. |
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No tax on gratuity up to Rs 10 lakh
by A.N. Shanbhag Q: I worked in the Health Department as a dental officer from 1984 to 2007. I took premature retirement in 2007. I received gratuity of Rs 3.50 lakh in 2009. I received Rs 5.50 lakh in April 2010 as revised gratuity according to the 6th Pay Commission. Kindly let me know the income tax clause under which this amount is exempt from income tax. — Romila Goyal A: We do not have good news for you. The ceiling of exemption has been increased to Rs 10 lakh from Rs 3.50 lakh by a notification 43/2010 dt 11.6.10. This raised limit is applicable to the employees who retire or become incapacitated prior to such retirement or expire or whose employment is terminated on or after 24.5.10. Since you have retired prior to this date (in 2007), the ceiling applicable to you is Rs 3.50 lakh. Again, since you have already received 3.50 lakh in 2009, this entire amount of additional gratuity of Rs 5.50 lakh received by you is fully exigible to tax. Registering will
Q: A relative of mine got a portion of share of his parental property and sold it. Subsequently, he purchased a flat after a few days adding some money from his own. He has three children, two sons and one daughter. He wants to write a will in favour of his son only as he looks after him in his old age. Please advise. — PC Bajaj A: As long as the estate of your friend is self-acquired and not inherited, he has a right to bequeath his assets to anyone as per his wish. It would be advisable to get the will registered for adequate precaution lest it gets contested later on. Resident status
Q: Shortly, I will complete 10 years of living in the US. Over this time, I have been staying about 300 days (more than 182 days) each year out of India and hence have maintained my NRI status throughout. This year, I plan to wrap up here and come to India to settle for retirement. I have three properties here in the US. Selling these may take some time - perhaps over a year or more. When I bring back funds after selling the properties, will there be any tax liability in India? Note that I will be paying tax in the US. — Surya A: If you come to India anytime after September 2011, you would continue to be an NRI for the current financial year too. It is only for and from April 2012 that you would be a tax Resident of India. Moreover, by virtue of having been an NRI for all these years, for FY 2012-13 and for FY 2013-14, you will have the status of RNOR (Resident but Not Ordinarily Resident). An RNOR does not have to pay tax on this foreign income in spite of the fact that he is a tax Resident of India. Therefore, if you manage to sell the properties before April 2014, there will be no India tax applicable on the sale. Note that tax applicability has to be determined at the first instant when the income is booked i.e in this case when the properties are sold. Bringing the money to India is a mere application of income (transfer of funds) and is tax neutral. In other words, whether you bring the sale proceeds to India or not, the tax incidence will not change. If the sale is effected prior to April 2014, there will be no tax imposed in India, else, you will also be liable for capital gains tax in India and will then have to take shelter under the DTAA that India has with the US. Reinvestment of capital gains
Q: I understand that If a property is sold and receivable is re-invested into another property, then capital gain tax can be avoided/deferred. Does this hold true even if a residential property is sold and the funds received are used to buy a commercial property? — Harshal Punj A: Reinvestment of the capital gains into another residential property provides the exemption from paying the capital gain tax. Some notable points - such reinvestment for tax saving is only available for a property that is long-term in nature i.e. it has been held for over three years. The reinvestment has to be done within two years of sale (in case the new property is being constructed, the time limit is increased to three years). In case residential property is being sold, only the capital gain portion needs to be reinvested. Where commercial property is being sold, the net sale proceeds (as against only the capital gain portion) after deducting brokerage and other incidental expenses have to be reinvested. And lastly, the reinvestment has to be necessarily into another residential property only and not in any commercial property. Invest in REC bonds to save capital gains tax Q: I have got a capital gain of Rs 60 lakh by selling inherited residential property. Please advise its proper use to save tax liabilities. Also;1. How long the amount can be kept in savings a/c? 2. Can I purchase one or more residential property out of this amount? 3. If the residential property is less than the amount, can the balance amount be deposited in infra-structure bonds to save taxes? — Saket Mehta A: We presume that 2. U/s 54, purchasing a residential house (only one and not two) by utilising the amount of capital gains within 1 year before or 2 years after the date of sale of the old house. Alternatively, construct a residential house within 3 years. Note that in both the cases, the amount of capital gains is to be invested and not the net sale proceeds. 3. It is possible for you to use either one or both of the above-mentioned strategies to save the tax on long-term capital gains. The authors may be contacted at wonderlandconsultants@yahoo.com
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World Bank President Robert Zoellick said on Saturday, as growth slows and investor confidence weakens.
Speaking in Beijing, Zoellick urged Europe and the United States to tackle their debt problems, and noted that near record-high food prices and volatile commodity markets are threatening the most world's vulnerable people.
The real estate consumer is all set to become a king. Even as they wait for the government to establish a regulator to take on the powerful real estate developers for redressal of complaints, the real estate developers, scared of the “too consumer-friendly and anti-realtor” approach in the draft Real Estate Regulation Bill, have themselves formulated a code of conduct.
