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SEBI mulls independent regulator for exchanges
Xpress Money plans major expansion in Punjab
Tax Advice
India on the cusp of cloud revolution
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Aviation Notes
Titan eyes Punjab for leather goods biz
Loan distribution centre launched
Audi eyes top slot in Indian luxury car market
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SEBI mulls independent regulator for exchanges
New Delhi, July 8 Under the existing regulatory framework in India, the stock exchanges act as the front-line regulators for the market and the SEBI (Securities and Exchange Board of India) is the ultimate oversight and regulatory authority. After putting in some efforts to effect a major overhaul last month in the way stock exchanges are run and owned, SEBI is now looking at ways to minimise any possible conflict of interest in the regulatory and business interests of bourses. As per the new rules, exchanges can also get listed, although not on their own platform. Sources said SEBI is of the view that an independent SRO could be set up to take over member regulation functions of stock exchanges in the long run, but trading regulations and surveillance actions should remain with bourses. However, a dual-reporting structure could be introduced for the regulatory department of stock exchanges for now to tackle any conflict of interest. Under dual reporting, the head of regulatory department would report to the MD or CEO of the bourse as well as to an independent committee of the exchange's board. The SEBI’s board has already approved a proposal for providing the seed fund for setting up the SRO, whenever deemed appropriate. For trading regulations and surveillance actions also, the SEBI is in favour of dual-reporting for the heads of these departments -- to the CEO or MD as well as to an independent committee of the board of the bourse. In the area of listing of the companies, SEBI would continue to prescribe minimum listing standards, but the exchanges would have the power to put in place additional stringent measures. The heads of listing department would also have a similar dual reporting. SEBI has already announced that it would form a Conflicts Resolution Committee (CRC) with majority external and independent members to deal with all issues concerning 'conflicts of interest'. The CRC will consider matters of policy, guidelines involving conflict issues and recommend standards that are pertinent to the areas of potential conflict in the exchanges. The issues of conflict will be referred by exchanges or may be taken up suo moto by the CRC. — PTI Regulating bourses
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Xpress Money plans major expansion in Punjab
Chandigarh, July 8 The company plans to expand its agent locations from the present 36,000 to 50,000 by the end of 2013. The company is also planning to expand its business in the European Economic Area (EEA) and US. Talking to The Tribune, Sudhesh Giriyan, Head, Xpress Money Services, said though Kerala and Tamil Nadu continued to be the top remittance receiving states in the country, Punjab had lost its third slot in inward remittances to Uttar Pradesh. “The total inward remittances in 2011 were to the tune of $64 billion, thus making India the largest market in the world for inward remittances. Though Kerala and Tamil Nadu retained the top slots for receiving inward remittances, Punjab has slipped to fourth position after Uttar Pradesh. This may be mainly because of the huge migration from Uttar Pradesh in recent times,” he said. Giriyan said in the coming year they would add 2,400 new agent locations (over and above the existing 2,400 locations) in Punjab, besides adding 1,000 locations each in Bihar and Rajasthan. “In all, we propose to add 14,000 locations and most of these will be added in Kerala, Tamil Nadu and Uttar Pradesh,” he said. He said since most of the inward remittances were being received from countries in the West Asia (UAE and Saudi Arabia), besides European countries and Australia, they were also expanding their locations in these countries. “We have seen a double-digit growth in our business in 2011, and now we enjoy a 10 per cent share of the cash-to cash remittance business in India. With these expansions, we hope to raise our market share substantially by 2013,” he added.
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Medical reimbursement exempted from tax
By S.C. Vasudeva Q. I am a senior citizen. I retired in 2003 from the Punjab Education Department as a school teacher. My income from pension and interest (FDs etc.) is Rs 3,53,506 for the F.Y. 2011-12. I got both my knees operated in 2010 and received Rs 2,27,918 as medical reimbursement from the department during 2011-12. I deposited the advance tax on my whole income. The details are as under: Salary and interest: Rs 3,55,413 Medical reimbursement: Rs 2,27,918 Total: Rs 5,83,331 Less: Rebate of 15,000 (maximum) On medical reimbursement: Rs 15,000 = Rs 5,68,331 Less: deduction u/s 80C: Rs 1,00,000 Total taxable income: Rs 4,68,331 Income tax thereon: Rs 21,833 Cess @ 3%: Rs 655 Total tax: Rs 22,488 I deposited Rs 22,500 as advance tax before March 31, 2012. In a query of AS Jassal in your column on 23.4.12, you had mentioned that the whole medical reimbursement (Rs 2,27,918 in my case) amount is not taxable income. Please let me know under which section of the Income Tax Act the whole medical reimbursement amount is tax-free. I deducted only Rs 15,000 as tax-free reimbursement amount. How can I get refund of the excess amount deposited as advance tax? Please advise. — Nirmal Kaur A. The reimbursement of any expenditure incurred by an employee on his medical treatment or treatment on any member of his family is not treated as perquisite in case such treatment has been in any hospital maintained by the Government or approved by the Government for the purposes of such medical treatment. In case the amount has been reimbursed to you, the same would not be treated as perquisite under Section 17 of the Income Tax Act, 1961 (The Act).
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India on the cusp of cloud revolution
New Delhi, July 8 A white paper released by the CII titled “The Indian Cloud Revolution” in association with KPMG and Amarchand Mangaldas & Shroff, says, “Cloud-based services can be leveraged by the government to launch new e-Governance initiatives quicker and with lower overhead costs. A common cloud platform will also enable local governments and other public agencies to adopt e-Governance for better citizen services, without requiring the setting up of significant IT infrastructure.” The white paper emphasises that any cloud policy will have to take into account the data sovereignty and governance considerations and study the worldwide global practices relating to resolving jurisdictional conflicts. It highlights that from the data security perspective, the cloud’s fluid architecture presents the biggest challenge and may require an amendment to the current laws to harmonise jurisdictional conflict issues and may provide clear prescriptions on the security measures to be adopted. “Globally, the adoption of cloud has increased over the years, and growing at a rapid pace. Cloud can drive the inclusive growth by providing platform to scale the reach of education, healthcare, financial services, entrepreneurship and governance, among others. This white paper evaluates the opportunities and challenges that are faced in India’s roadmap for cloud adoption,” said Chandrajit Banerjee, Director-General, CII. WHAT IS CLOUD COMPUTING? Cloud computing allows storage of data and access to software on a pay-per-use model, helping companies to cut costs as they do not have to invest in infrastructure. Major cloud service providers include Google, Amazon and Microsoft, who store the data of clients on servers across the globe.
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Pilots’ strike over, situation yet to become normal
By K.R. Wadhwaney The 58-day-long strike of Air India pilots, the second longest in the Indian civil aviation history, is over. But it has left the national carrier, which is already crippled, in utter chaos and turmoil. The losses have mounted leaving the carrier in a virtual state of coma. Analysts are of view that turnaround of the national carrier does not seem to be feasible unless it functions like before i.e. Indian Airlines to fly on domestic routes and ‘Maharaja’ on international sectors. The Delhi High Court’s order is being honoured ‘in letter and in spirit’ but the judgment is ‘silent’ on several pertinent issues, particularly on the subject of ‘seniority of the pilots’ prior to their resorting to the agitation. The Indian Airlines’ pilots and other staff continue to feel that their multiple problems are not being addressed by the management. The overall situation remains tense. The end of the strike at the behest of the court order is a ‘temporary measure’. The turmoil in the industry will continue as long as politicians are allowed to head ‘trade unions’ like the Indian Pilots Guild (IPG). The illegal agitation was started and continued for so long only because it was ‘master-minded’ by a small-time Thane politician Jitendra Awhad. His colleagues have gone on record saying that his shouldering the responsibility of pilots’ cause was totally unwarranted as his ‘trade union’ record suggested that he was ‘beholden to civil issues’. The final report on the Rio-Paris Airbus A-330 crash that killed 228 people three years ago faults pilot, sensors and inadequate training. The report has suggested 25 ‘recommendations’ to prevent a repeat of the disaster. The pilots’ associations and Air France have been at loggerheads with plane-maker Airbus for this tragedy. Similar situation exists in this country where pilots lack in training and competency. Many of the pilots, who have rejoined Air India, will have to obtain flying licence and secure medical certificates before they are declared fit to fly. Any lapse in this regard can prove suicidal. According to analysts, it will take at least a month before the situation normalises.
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Titan eyes Punjab for leather goods biz
Jalandhar, July 8 The company aims to be a big player in the trade and is currently sourcing its leather requirements from import houses in Chennai, Bangalore, Hyderabad, Mumbai and certain other areas. “We will explore the possibility in Punjab and will tie up with Jalandhar-based entrepreneurs manufacturing leather goods. This will provide business opportunities to the city-based leather houses to supply belts, purses, hand bags and other items,” claimed Dinesh Amitha, business head, Titan Industries. Amitha was in the city to launch the company’s 20 per cent discount offer on all watches till August 22. He disclosed that the company reported a turnover of Rs 6,520.89 crore for 2010-11, out of which Punjab contributed Rs 20 to Rs 25 crore.
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Loan distribution centre launched
Jalandhar, July 8 To boost the agriculture sector, the bank has been providing loans starting from Rs 25 lakh till Rs 5 crore and more, he added. — TNS
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Audi eyes top slot in Indian luxury car market
How different has your approach been in India, vis-à-vis the competition? Audi is one of the fastest growing luxury car brands in India and we have ambitious growth plans. Our goal is to become the leading automobile luxury brand in the Indian market in the next couple of years. We are constantly enhancing our product line, network growth and creating wider brand awareness. We have already sold 4,000 cars from January to June 2012, and recorded a growth of 43 per cent in this period. At Audi, we believe in the 4Ps - Product, Price, Promotion and Place. We have always followed this strategy and that has put us in good stead. We are expanding our dealer network and will soon launch new centres in Navi Mumbai and Goa. Our brand has also bagged 27 awards for our class defining products such as the A8, A7 and the A6. What is the present state of the Indian market and how soon do you think it will revive? The customer sentiment now is ‘withholding back’ and rising fuel prices and interest rates have also been a concern for people. In the long-term, India is a very exciting market. Globalisation of the Indian economy, rising wealth and aspirations of people who are no longer shy to indulge in luxury purchases, are factors that are fuelling growth in India. What is the future of the Indian market and how big it really will be by 2020? Despite the slowdown in the global economy, the luxury automobile market is doing quite well. India has grown at an exciting pace, and it is still growing. Total luxury car market is growing by 5-10 per cent but we have seen a greater positive customer buying behaviour for our cars and are confident that Audi will see growth of at least 35-40 per cent this year. And by 2020, we aim to sell 50,000 cars here. Are the Indian and China markets same? The luxury segment in India is growing rapidly and has tripled over the last five years. While some of the markets have become stagnant, India and China are now adding to the growth of the luxury car market. The long-term vision is that the car market in 2020 will be between 4.5 million - 5 million cars, which can take India in the league of top 3 markets globally. Learning from our 21 years of market leadership in China, our strategy of building a strong brand, a high quality network and a strong product portfolio is paying its dividend also in India. This country has become a key strategic market for Audi. You have been launching new models in India, how do you see yourself in India over the next few years? In 2012, we are continuing our strategic course of product expansion and launching attractive vehicles in the market for sustainable and profitable growth. Thanks to our bestsellers, the A4, A6, Q5 and Q7 and Q3 SUVs, and ever growing dealer network, we have moved into the number-two position among premium car makers in the first quarter. The debut of Audi Q3 has helped in leveraging Audi’s position as the fastest growing luxury car brand in India and has boosted our sales. We plan to have a total of 25 dealerships by the end of this year. We are still maintaining our forecast of selling 8,000 cars for 2012 and acquiring the pole position by 2015. Globally, we aim to be the number one car manufacturer by 2015 and I aim at doing the same in India as well. At present, which models do you think are building Audi’s volumes in India? The new Audi A4, with its progressive design, efficient driving dynamics and class defining interiors which we launched in May, is doing really well with a younger audience and a much wider customer base. With A4, we are poised to maintain our tag of being the fastest growing luxury brand in India. We also received a tremendous response for recently launched Q3 and saw 500 bookings within 5 days of its launch. Even our top-end sports cars and sedans have also been very successful with our customers. Are there any plans to manufacture Audi cars in India? India is a very important market for us but the industry is going through a pressure phase. Its a time which will sift out the good ones from the bad. The fly-by-night guys will find it difficult to maintain pace. In such a scenario, localisation may make sense. However, not every component can be locally produced.
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In this article, I have analysed the common mistakes that cardholders make and how they can avoid these mistakes. Ignoring the terms and conditions
No doubt the terms and conditions are quite difficult to understand, but one needs to try. Ignoring them is not going to make them disappear. Many cardholders are surprised when they notice a change in interest rates or annual fee being charged on their free-for-lifetime cards. Read the terms and conditions carefully and try to understand them. If you have any difficulty, you can call up the customer care division for clarifications or simply search on Internet for the meaning of those terms. Ignoring monthly statement
Reading your monthly statement is as important as reading the terms and conditions. Keep a track of your monthly spends on credit cards and cross check for any suspicious charges on your card. Call customer care immediately if you notice any spends that you did not make are being reflected in your billing statement as credit card frauds are rampant.
Minimum monthly dues are usually 5% of the total outstanding amount. At this rate it will take more than a year to pay off the entire dues. It is a happy situation for the credit card issuer, but not for the cardholder. The card issuer will get its share of high interest rate, which can range between 26% and 47% per annum, including service charges. Secondly, all the new purchases on the card get combined with the outstanding amount and the interest is charged on the combined balance. Paying only the minimum amount due will keep the cardholder in debt for a long time. Whenever possible, pay more than what is minimum due to keep the debt down to manageable level. Ignoring payment due date
Make sure you know the payment due dates on each credit card you hold. Delayed payment will add more burden on your finances with hefty interest charges and late payment fees (up to Rs 787) and frequent delays in payment will also affect your credit score. If you have been paying your dues on time and have missed one payment, you can call up the card issuer and request them to waive the penalty charges though it is not a binding on them to do so. If you have not done it till now, then subscribe immediately to the card issuer service of sending an sms or email reminding about the payment due date. If you are frequent traveller or too occupied with your professional obligations, subscribe to auto debit facility. But make sure there is enough balance in your account to avoid any payment dishonour, else you will be penalised from both ends i.e. your banker as well as card issuer (up to Rs 562, including service tax). Overspending
Impulse shopping on credit cards gives a kick, but on the wrong side and by the time we realise it, it is too late in most cases. This is how the debts on credit cards grow. Before you shop on credit card, just analyse your financial situation and ask yourself:
Try answering these questions before you make those purchases. This will help you take a little control on your finances. Avoid withdrawing cash against credit card
Withdrawing cash against credit card is as simple as withdrawing cash on your debit card. But the trap lies in the withdrawal fees, which is usually up to 33.7% per annum including service tax plus interest rate ranging from 26% to 47% per annum, including service charges. Remember that the interest rate is applicable from day one as there is no free credit period for cash withdrawals. Do not ever fall in the trap of withdrawing money against your credit card unless and until it is an extreme emergency. Then too make sure that you pay back the same at the earliest. Having multiple credit cards
Having and managing multiple cards can definitely increase your credit ratings. But remember that each application for credit cards gets registered as an enquiry in your credit report. Excessive numbers of such enquiries indicate that you are "Credit Hungry" and in an urgent need of money. This makes the providers more cautious while evaluating your application for any credit facility. Don't pick too many credit cards. Just have 2-3 cards that offer required credit limit and low interest rate on revolving credit facility. Acquiring too many credit cards is a temptation with many obsessive spenders. This way we see that credit card offers convenience but only to those who use it wisely and do not fall into the golden trap (or platinum, titanium trap) laid by the credit card companies. The writer is Product Manager, Apnapaisa.com. The views expressed are his own
What are Options & Futures*
An option gives you the right to buy or sell the underlying asset . A call option gives you right to buy the underlying asset while a put option gives you the right to sell. An option contract specifies the strike price, that is, the price at which you can buy or sell the underlying asset. In Futures, you buy a contract which will have a specific lot size of shares. When you buy a Futures contract, you don’t pay the entire value of the contract but just the margin. Open interest is the the total number of contracts not closed or delivered on a particular day. |
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Tax deduction on interest income
Many of us keep our money either with banks or with cooperative credit societies, be it in fixed deposits or recurring deposits or in savings account. Not only this, we also invest in various government-run schemes like NSC, PPF and Senior Citizen Saving Schemes. While making these investments everyone wants to plan these investments in such a manner so that no TDS (tax deducted at source) is effected on your interest income. In this article, I shall discuss the various provisions related with TDS on such interest income which can help you understand when tax will be deducted and when you will get your interest without deduction of TDS. Tax deducted at source
(TDS)
As per the provisions of the Income Tax Act, there are certain investments/deposits on which no tax is required to be deducted without any limit of the amount of such interest. Tax is not deducted on any interest paid on any savings account or deposit in any of your recurring deposit account, be it with any bank, or co-operative credit society or cooperative bank. Even in case of any cooperative society paying any interest to its share holders, the cooperative society does not have to deduct any TDS whatever be the quantum of interest. In addition to the above, no TDS is required to be deducted by the post office on any interest paid on any deposit with post office like savings accounts, recurring deposits, fixed deposits or monthly scheme schemes. Likewise no TDS is applicable on various saving certificates like Kisan Vikas Patra and Indira Vikas Patra. Since interest on PPF account is exempt from tax, hence it is not subject to any TDS. No deduction of tax up to a limit
Unlike the benefits of no TDS without any limit available on the accounts and schemes discussed above, the Income Tax Act provides the benefit of no deduction of tax at source when the income is within a certain limit. For all the fixed deposits with banks, credit societies, cooperative banks etc., the payer will deduct tax at source if the income from such fixed deposit exceeds a limit of Rs 10,000. Please note that the limit of Rs 10,000 shall be calculated with reference to interest on aggregate of all the fixed deposits made with the bank. However, while calculating the limit of Rs 10,000, each branch shall be treated separately. So if you earn interest less than Rs 10,000 from each branch of the same bank though your overall interest on fixed deposit maybe higher than the limit of Rs 10,000, no tax will be deducted by any of the branch. Please note that though no tax is required to be deducted on various deposits with post office or various saving certificates without any ceiling, but there is one exception. In case interest on Senior Citizen Saving Scheme exceeds Rs 10,000 in a year, the bank or post office will deduct TDS at the rate of 10%. TDS at higher rates or nil rates
Though the rate of TDS is 10% on such interest income, the Income Tax Act provides that a person who is entitled to receive such interest which is subject to TDS can submit form No. 15 G or 15H for no deduction of tax at source. In such cases, the bank can pay you interest without deducting any tax from your interest even if the same exceeds the ceiling of Rs 10,000. One very important aspect that needs to be kept in mind is that even if you are fine with tax being deducted by the bank from interest being paid to you, even in such case you have to furnish your PAN number to the bank. If you fail to furnish the PAN number, the bank shall deduct tax at the rate of 20% instead of 10% generally applicable. Even in the case where you are eligible to furnish either form No. 15G or 15 H, you should furnish your PAN number to the bank. If you fail to mention your PAN number in the form no. 15G or 15H, the bank will deduct tax at the rate of 20% so instead of receiving interest without TDS you will be subjected to TDS at the rate of 20%. Please ensure the correctness of the PAN number when you communicate the same to the bank. If the PAN number mentioned by you is found to be incorrect, the bank will be obliged to deduct tax at the rate of 20%. I am sure by now you have become aware of the intricacies of the TDS provisions as applicable to interest. Thus, you can plan your investment in such a way so as to minimise the incidence of TDS and escape from the hassle of having to claim the refund in case your income is below taxable limit or in case when you want to receive the income without TDS legitimately for any reason. The writer is CFO, Apnapaisa.com. The views expressed are his own |
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Audi in India has been a major success story. Despite being a late entrant into the Indian market, this Volkswagen group company has taken big strides to become the second largest seller in the luxury car market. With its innovative marketing strategies and management support, the German automobile maker has now set its eyes in taking over the number one spot from BMW.
Audi in India has been a major success story. Despite being a late entrant into the Indian market, this Volkswagen group company has taken big strides to become the second largest seller in the luxury car market. With its innovative marketing strategies and management support, the German automobile maker has now set its eyes in taking over the number one spot from BMW. Having completed five years in India, Audi India has firmed up its plans to become market leader in the coming years. Michael Perschke, Head of Audi India, in an interview with The Tribune, talks about the company’s journey so far and its future plans.
Paying only minimum dues
