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R-Power to invest over Rs 6,000 cr in Rajasthan
Auto sales in top gear
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Banks okay $3.5 bn loan to AI: Report
Tax Advice
Markets to remain choppy
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R-Power to invest over Rs 6,000 cr in Rajasthan
Dhursar (Jaisalmer), April 1 "Based on futuristic policy of the Government of India as well as the Government of Rajasthan, we hope to double the capacity to 300 MW in the next 24 months. This would mean our investment at this location would exceed Rs 6,000 crore," Anil Ambani, Chairman of Reliance Power, said after the commissioning of the 40 MW plant here on Saturday. The 40 MW plant has been set up at an investment of about Rs 700 crore. The long-term power purchase agreement for the project has been signed with Reliance Infrastructure and the power generated would be used for Mumbai. The project would generate more than 70 million units of clean power. The project is financed with a debt equity ratio of 75:25. While Reliance Power has put in the entire equity, the debt has been provided by the US Exim Bank and the Asian Development Bank (ADB). "Our Dhursar plant demonstrates the huge potential of solar energy to help India meet its growing energy needs in the most environmentally friendly manner. Reliance Power's vision is to become India's largest green power company and the commissioning of this solar project is the first major step in that direction," he said. Further, the company is developing a 100 MW
solar thermal plant at the same site as part of national solar mission. The two projects would require an investment of about Rs 2,800 crore, which is the largest investment in solar power at a single location, according to the company.
— PTI green power
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Japan to back US nominee to head World Bank
Tokyo, April 1 Kim, a Korean-American, will be contesting against two nominees from emerging market countries - Nigerian Finance Minister Ngozi Okonjo-Iweala and former Colombian Finance Minister Jose Antonio Ocampo - for the Washington-based institution's top job. "We decided he is an extremely suitable candidate for the World Bank presidency and we will support him," Azumi said, stressing his track record working on HIV/AIDs issues with the World Health Organisation. Azumi said the right candidate for the job would understand Japan's stance as a major contributor country and would be able reflect that in the World Bank's policies. Kim, a physician and anthropologist, was named by the Obama administration in March as the US pick to succeed Robert Zoellick when he steps down in June. By tradition, an American has headed the World Bank since its founding after World War II, but emerging economies are increasingly open about challenging that convention. Next on the agenda of Kim's "listening tour" as the US Treasury Department calls the trip, is Seoul, New Delhi, Brasilia and Mexico City. He is touring the world between March 27 and April 9 to meet heads of state, finance ministers and others to talk about priorities for the World Bank.
— Reuters |
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Auto sales in top gear
New Delhi, April 1 Toyota sales
jump 87%
Toyota Kirloskar Motor (TKM) Deputy Managing Director (Marketing) Sandeep Singh said, "... the demand next month could be impacted due to the increase in excise duty, registration tax and VAT." TKM, a joint venture between the world's largest carmaker Toyota and the Kirloskar Group, said it recorded an 87 per cent increase in car sales to 18,220 units in March, driven by highest ever monthly sales of its 'Etios'and 'Liva' models. Tata Motors sells over 1 lakh units
Tata Motors reported a 20 per cent jump in total vehicle sales during March at 1,00,414 units compared to 83,363 units sold in the same month last year. Its total passenger vehicle sales in the domestic market rose 34 per cent at 36,984 units in March, highest ever in a month, over 27,678 vehicles sold in the year-ago period. In the commercial vehicles segment, the company sold 58,063 units in the domestic market last month. M&M’s sales
up 25%
Mahindra & Mahindra posted 25 per cent increase in sales at 47,001 units in March - the highest ever monthly sales number in the history of the company. Similarly, Honda Siel Cars India, a joint venture between Japanese auto major Honda and the Siel Group, recorded a three-fold jump in its sales for March 2012 at 11,016 units. — PTI |
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Banks okay $3.5 bn loan to AI: Report
New Delhi, April 1 The plan, which includes debt restructuring of 180 billion rupees by the banks and a committed equity infusion by the federal government, will require the Cabinet's approval, the report said citing unnamed officials. Officials at Air India could not be reached immediately for a comment. Of the debt being restructured, 105 billion rupees would be converted into a 10-15 year loans and the rest would be paid to banks through a government bond issue, the report said.
— Reuters |
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Tax Advice Q. I am a government employee. My annual income from salary is about Rs 12 lakh. I have an agriculture income of Rs 5 lakh. The agriculture land is in my name. Should I add agriculture income to my salary income for tax calculation? Will it increase my tax? Can I show this income in my wife's name? — Darshan Bhullar A. The agricultural income is exempt from income tax under the provisions of Section 10 of the Income Tax Act, 1961. However, the amount of agricultural income is added to the other income so as to ascertain the applicability of tax rate on the total taxable income. In your case, therefore, the computation of tax would work out as under: Your total income without the agricultural income being Rs 12 lakh, income above Rs 8 lakh in your case is taxable @ 30% for assessment year 2012-13 (financial year 2011-12). The tax payable on Rs 12 lakh would be Rs 2,17,330. However, by adding agricultural income for rate purposes, the payable tax would work out at Rs 3,02,820. This is as per computations given below:- Total income (a): 12,00,000 Agricultural income (b) :5,00,000 Tax on (a)+(b) 17,00,000: 3,62,000 Less tax on (b) + 1,80,000 (being the slab up to which no tax is chargeable) 6,80,000: 68,000 Tax payable: 2,94,000 Add: EC @ 3% thereon: 8,820 Total tax payable: 3,02,820 It would not be possible to reflect agricultural income as the income of your wife if the agricultural land is owned by you. Medical expenses
Q. I am an employee of Punjab State Power Corporation Limited (formerly Punjab State Electricity Board). I got medical treatment (both knee replacement) of my mother, aged about 74 years, from Deepak Hospital (A charitable Hospital) Ludhiana. The period of indoor treatment was 20.05.2011 to 30.05.2011. I submitted medical bills of Rs 3,27,510 for reimbursement to my department. The department sent these bills to the CMO, Ludhiana, on 14.07.2011 and the CMO’s office further sent these bills to the Director, Health, Punjab, at Chandigarh on 08.09.2011. The office of the Director, Health, Punjab, took two months and ultimately verified these bills for Rs 2,48,147 only at AIIMS New Delhi/Govt. rates vide their letter dated 02.11.2011. My department has deducted Rs 36,000 as TDS and have made a payment of Rs 2,12,147 only. Thus Rs 1,15,363 has been deducted from the actual amount spent by me. My queries are: (a) When a competent authority of the Punjab Govt. has verified the rates at AIIMS New Delhi/Govt. rates, is actual received amount of medical bills required to be added in my total annual income of financial year 2011-12. (b) Is income tax payable on this amount of 2,12,147 i.e. the amount received as medical reimbursement? (c) Is my department right for deducting Rs 36,000 as TDS? (d) What action should be taken by me now? — Kiran Kumar Verma A.
The proviso of Section 17(2) of the Income Tax Act, 1961 (The Act) exempt any sum paid by an employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family in respect of prescribed diseases in any hospital approved by the Chief Commissioner. The diseases prescribed in Rule 3A(2) of Income-tax Rules 1962 (The Rules) do not include the knee replacement. The amount paid by the Punjab Government, therefore, is not exempt from the provisions of the Act and would be treated as a perquisite and would be includible as part of your taxable salary. Tax liability
Q. I shall be attaining the age of 80 years in April, 2012, and thus be entitled to tax benefits of super senior citizen. My queries are: (a) Since my total income for pension, house rent and interest shall be about Rs 4 lakh, should I submit Form 15-H to my banker in April, 2012. (b) Will I have to invest up to Rs 1 lakh in tax-saving scheme. (c) Will I have to file the income tax return for the financial year 2012-13 in Assessment Year 2013-14. (d) If otherwise, when should I inform the tax authorities that I am a super senior citizen and entitled to a tax rebate of Rs 5 lakh and as such will not be filing the return during the assessment year 2013-14. — SL Mahajan A. (a) You can file the relevant form with the bank for the non-deduction of tax at source as income up to Rs 5 lakh is not chargeable to tax. (b) You are not obliged to invest Rs 1 lakh in tax- saving schemes as you are not liable to pay tax in case your total income does not exceed Rs 5 lakh. (c) You are not required to file your return of income for the financial year 2012-13. (d) The law does not require any information to be sent to the tax authorities. However, if you so decide, you can inform the tax authorities. Gift of shares
Q. I have 100 shares of Nestle since long. Now I want to gift these shares to my son’s wife. Can I do this? Also let me know if she sells the shares, whether this money belongs to her. — Narender Kumar A. You have not indicated in the query whether these shares are being held in physical mode or in a demat account. In case the shares are held in physical mode, stamp duty leviable on the transfer of shares shall be payable on the basis of market price applicable as on the date of the gift. The purchase price will have no relevance in such a case. In case the shares have been dematerialised and are held in fungible form, the purchase price has no relevance. In case shares are held by you for more than a year, long-term capital gain arising on the sale of such shares will be exempt under Section 10(38) of the Act provided Security Transaction Tax has been paid on the sale of such shares. Even after the gift of these shares to your daughter-in-law, the income from long-term capital though exempt from tax, will have to be reflected in your tax return. This is because the income from assets transferred to son’s wife is required to be clubbed with the income of the individual who has transferred such assets under Section 64 of the Act. |
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personal finance
A Will forms a part of your estate planning. People generally get confused and assume Estate planning as Real Estate planning. Not many know that Estate planning entails planning of distribution of all your assets to your family/legal heirs in the event of your death. The assets may include immovable property like your house, property, land or financial assets like your investments (shares, mutual fund units, bank account), household items, jewellery or any other such assets which you may have. Why should you make a Will?
When should you make a Will?
People generally think that they should make a Will after they retire. But, you don't know how long will you live. Hence, it is never early or late as such when you decide to prepare a Will. Thus, you should make a Will after you own any assets, whether movable or immovable. Since Will is a revocable document, you can also alter it as many times as you wish to. You can add new assets in your Will and also change the beneficiary any time. Any adult can make a Will. The legal age for making a Will is 18 years. How to prepare
a Will?
A Will can be made on a stamp paper or even on a plain paper. It can be written in any language you wish to. Please note there is no specific format for making a Will. First of all you should prepare a list of assets that you own. Then you should prepare a list of people (including legal heirs and relatives) whom you wish to bequeath these assets. Once both the lists are ready, you should name the persons who will inherit the respective assets. At least two persons must sign the Will as witness in token of acceptance of the fact that the executant has signed it in their presence. Witness has to be an adult; thus a minor cannot be a witness to a Will. You need to appoint at least one person as executor of the Will, who will execute the Will after your death. The executor has the right to distribute the assets to the beneficiaries as per the intention mentioned in the Will. It is not necessary to register a Will. However, it is always advisable to get it registered. A Will can also
be notarised. Just like you do financial planning for your family's future and goals, it is equally important to ensure that your assets, even after your death, are inherited by the person whom you wish to by creating a Will. So, by now I am sure you have got an idea how easy, useful and important it is to make a Will and would be willing to prepare it at the earliest. You now know that if you have a will to make the Will, there is a way to make it. I believe this justifies the
saying "Where there is a will, there is a way"! The author works for Apnapaisa.com, a price and features comparison engine for loans and investments. The views expressed are his own. |
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Markets to remain choppy
It was a topsy-turvy week with Monday seeing a sharp fall and Friday seeing a sharp rise. The net result of five days of sharp movements saw the markets closing marginally in the positive but not before testing important support levels twice during the week. The BSE Sensex gained 542.46 points or 0.24% to close at 17,404.20 points. The NSE NIFTY gained 17.35 points or 0.33% to close at 5,295.55 points. The broader indices like the BSE500, BSE200 and BSE100 gained an almost identical 0.32%, 0.32% and 0.31%, respectively. The BSE Midcap lost a paltry 0.07% while the BSE Smallcap gained 0.05%.
The Indian Rupee closed at Rs 50.88, recovering marginally over the previous week. The financial year has changed and trading for the year 2012-2013 has now begun. On a financial year basis, the BSE Sensex lost 2,041.02 points or 10.5% against the year beginning level of 19,445.22 points. The NSE Nifty lost 538.20 points or 9.23% against a year's opening level of 5,833.75 points. The quarter which had begun very well and saw the indices gaining for seven weeks on a trot have been under correction thereafter and almost 45% of the gains made in the first two months of January and February have been lost in the remaining period. The Finance Minister tried to assuage the feelings of people, particularly of the FIIs, on P-Notes or participatory notes saying they would not attract the provisions of "GAAR" while taxing of FII business would be another matter which helped the markets to recover on Friday. There is no clarity on what would eventually happen and one would have to wait till the Finance Bill is actually passed. Till that happens, one thing is crystal clear that the markets would be choppy and there would be plenty of action on both sides. In less than two weeks from now, results for the fourth quarter and year-end results would begin and that would determine which way markets would move but it appears that we are in for turbulent times in the days ahead. Inflation continues to be a cause for concern and petrol price hike imminent and the same could happen even as you are reading this article. Whether RBI will cut interest rates is another matter and would be debated for the next couple of weeks. IVRCL and Zee are in the middle of a controversy after Zee group picked up a stake in IVRCL, which is equal or slightly higher than the promoter holding. The share has seen plenty of action this week and closed at Rs 66.25 having gained Rs 7.95 or 13.64% during the week. This counter would see a lot of action during the week ahead and could be watched and also traded. I believe that there could be a hostile takeover or coming together of both parties with either event being favourable for minority shareholders. The week ahead would be choppy with alternate bouts of gains and losses happening. There is every possibility that the week ahead could finally end in negative territory with Friday's gains seeing profit taking at the beginning of next week. The BSE Sensex has support at 17,193, then at 17,070, then at 16,920, then at 16,858 and finally at 16,659 points. It has resistance at 17,527, then at 17,588, then at 17,691, then at 17,861 and finally at 18,107 points. The NSE Nifty has support at 5,230 points, then at 5,185, then at 5,126, then at 5,076 and finally at 5,014 points. It has resistance at 5,333, then at 5,356, then at 5,437, then at 5,499 and finally at 5,527 points. It's a crucial week and Friday's sharp rally would be tested for strength. Any breakdown in the same could be dangerous for the market. The writer is founder of KRIS, an investment advisory firm. The views expressed are his
own. market pointers
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Dhursar (Jaisalmer), April 1
Where there is a will, there is a way. Indeed your English teacher has taught you the above saying in the school. You must be wandering what significance this saying can have in your adult life. Now, even though you have grown up, the phrase holds the same significance but with a different interpretation. It cannot only alter your 'life' story but also save you from being a witness to the family 'drama' from the heaven. Yes, I am referring to making of the Will. I mean, you need to make a 'Will' to ensure that your legal heirs inherit your assets the way you want them to and they have a successful and a happy 'Way' ahead in their life after your death. You earn and save throughout your life so that you and your family can live a happy life forever. But, if you haven't made a Will, your task of giving direction to distribution of what you have earned remains unaccomplished.
The sectoral indices were a mixed bag with BSE FMCG gaining 2.04% and BSE Auto gaining 1.36%. BSE Bankex lost 0.92% while BSE Realty lost 0.76%. In individual stocks, gold loan companies Mannapuram and Muthoot Finance were big losers after RBI tightened gold loan norms with the companies losing 16.37% and 13.86% respectively. BHEL lost 3.44% while State Bank of India lost 3.23%. Maruti Suzuki gained 3.06% and Coal India was up 2.53%.