New Delhi, June 2
Gold prices breached the Rs 30,000 mark for the first time on Saturday on heavy buying by stockists and retailers amid strong overseas trend, triggered by global financial uncertainty which has increased the metal's appeal as a safe investment haven.

Gold shot up by a hefty Rs 960 to touch a record high of Rs 30,300 per 10 grams in line with global rally where it jumped the most in ten months.

Traders said gold, both of 99.9 and 99.5 per cent purity, recorded the biggest single day gain of Rs 960 each to Rs 30,300 and Rs 30,160 per 10 grams, respectively.

Sovereign also shot up by Rs 350 to Rs 24,200 per piece of eight grams.

Marketmen said signs of weakening job growth in the United States and the deepening eurozone debt crisis has increased metal's appeal. Increased demand from investors further fuelled the trading sentiment, they added.

In New York, gold jumped 4.24% to $1,626.30 an ounce, the biggest rise since August 8. Gold prices in global markets usually sets the trend in the domestic markets.

Silver, in the bullion market here, also rose by Rs 650 to Rs 54,550 per kg in the local market. In New York, the metal rose by 3.5 per cent to $28.68 an ounce, the largest gain in two weeks.

Silver ready surged by Rs 650 to Rs 54,550 and weekly-based delivery by Rs 880 to Rs 54,510 per kg. — PTI

Q: I’m staying in government accommodation (no house rent allowance). The flat I had purchased with a bank loan is rented out. Can the latter be deemed a self-occupied property and, if so, is the rent taxable? Presently I'm showing this flat as a let-out property and the rent income is included in my income tax calculation. The yearly outgo for EMIs is around Rs 1.5 lakh (principal plus interest). I'm taking benefit of the both Sec. 80C (principal component) and Sec. 24 (interest component) of the Income Tax Act. Am I doing the right thing?
— R. S. Rao

A: One self-occupied residential property is free of tax — the emphasis being on "self-occupied". If a property is rented out, it can't be termed self-occupied. Since your property is rented out, it'll not qualify as self-occupied (exempted from tax). In other words, if you're earning income (in this case rent) from any property, regardless of whether how many you own, the entire rent is taxable. Your treatment regarding tax deduction claimed is accurate.

Q: I opted for opening an NRE (nonresident external) account at a well-known private bank, as I expected it to be faster in response and offer online transaction facility. But is it safe to park funds in private banks? Does one get his money back in any worst case scenario? Or do you suggest opening an additional NRE account in a state-owned bank as they're commonly thought to be more "secure"?
—Mandar

A: The answer depends upon your choice of the bank, whether private or state-run. There are some government-owned banks that are very sound and there are some private banks that could be sounder. At any rate, a maximum of Rs 100,000 is the only insurance you have against your deposits with any private or state-run bank.

Chandigarh, June 2
Traders getting their goods in Punjab can now heave a sigh of relief. With the state’s excise and taxation department now moving towards creating “virtual” instead of the existing physical barriers, traders will now get seamless entry/exit from the state.

With Punjab having succeeded in moving towards electronic information collection and 75% of total data getting online, the state is now ready to have virtual barriers at all 36 information collection centres. The first place where a virtual barrier will be set up is at Dahni, near Nangal, on the Punjab-Himachal border.

Excise & taxation commissioner A. Venu Prasad told The Tribune three-fourths of all data entry at the information collection centres is online now, and the remaining will be done in the next two months.

“Once all 36 information collection centres become electronic information collection centres, we’ll be able to do away with physical barriers and have seamless entry of goods in the state. We expect the first virtual barrier to come up in Dahni in two months’ time. Once the pilot here is successful, we’ll go full steam,” he said.

With the creation of virtual barriers truckers and traders will attest self-generated forms to pay their taxes. With all work being done electronically, the dispatcher of goods just has to log on to the website of excise and taxation department, feed the data on the goods that he is bringing in Punjab and generate a form.

This form has to be submitted to the excise inspector deputed at each information collection centre, who validates the data and entry of goods is allowed. The entire process takes 10-15 minutes. So far, bulk customers are using electronic submission of forms.

Once every trader starts using it, it will pave the way for virtual barriers at all 36 electronic information collection centres.

This will mean a goodbye to long queues of goods- laden trucks at information collection centres as data entry of goods or their physical verification is not required. It will also help bring down complaints about the harassment by data entry operators at these centres, as everything will be done electronically. With virtual barriers there would be no personnel manning the information collection centres and free flow of goods will be allowed after e-filing of the data.