Overseas investors pumped in over Rs 24,000 crore (US $4.6 billion) in Indian stock market during February, the eighth consecutive month of inflows, taking the total investment tally to $8.4 billion so far this year. Foreign Institutional investors were gross buyers of shares worth Rs 78,888 crore, while they sold equities amounting to Rs 54,449 crore -- a net inflow of Rs 24,439 crore ($4.57 billion), according to SEBI data. This was the eighth straight month of net investment by FIIs starting July, 2012. "FIIs continued to be bullish on Indian equities and heavily invested in Sensex and Nifty companies. We expect this inflows would continue in the coming months as well”, CNI Research CMD Kishor Ostwal said.

Global chip maker Intel Corporation is unveiling plans for the fast growing tablet space. In an interview, Sandeep Aurora, marketing director at Intel South Asia talks to Sanjeev Sharma about the new initiatives, if tablets are hurting the growth of personal computers and India growth plans.

Q: What has Intel’s progress on tablets been?

We’ve seen significant progress in the tablet space over the last year. We recently announced our latest System on Chip (SoC) – Intel Atom Z2760 (Clover Trail) with key OEM (original equipment manufacturer) partners. Already 10 device variants are on shelves across the world and we continue to see more and more devices shipping each week. These devices have up to 10 plus hours of battery life and offer weeks of connected standby in thin, light designs. We aren’t stopping there. Our next generation SoC, Bay Trail, will have about 2x performance over the current generation. In short, Intel remains committed to enabling innovative mobile designs thereby giving consumers a variety of Intel processor-based tablets from which to choose.

Q: What is the company’s differentiation strategy?

People around the world now have a wide range of Intel-based tablets, which deliver the performance and flexibility to do everything consumers and business users want. Intel Atom processor-based tablets are well-positioned for people whose top priority is mobility, offering great battery life in thin and light designs. Tablets with Intel Core processors are well-positioned for people who want the best performance in a tablet design and tablets based on these processors can be designed to be thinner and lighter than a notebook while delivering a great level of performance for usage models that define the Windows 8 tablet experience.

Q: Which OEMs will introduce the Intel powered tablets running Android OS?

We are actively working with a range of hardware, software and service vendors across the Indian ecosystem to extend Intel offerings on Android tablet devices at different price points.

Q: What is your view of tablets negatively impacting growth of PCs?

We don’t see this as an “either/or” endgame but instead encourage people to look at their primary needs: people still need to create, do work, learn — and a PC is still critical for that. The great news is the PC isn’t what it used to be. Thanks to Ultrabook devices, they exemplify the greatest of mobile characteristics and yet pack the performance and form factor needed to get down to business. Tablets can be a terrific option for people who have lighter content creation needs and want all day battery life in thin and light form factors.

Q: How critical is India to your growth strategy?

Intel’s vision states: “This decade we will create and extend computing technology to connect and enrich the lives of every person on Earth”’. The fact is that one of every seven people on Earth are in India and that’s indication enough of how important India is to Intel’s growth strategy. That said, with over 65% of the population under the age of 35, India is poised to be one of the largest consumption markets for computing worldwide. However, only 21 million households in India have a PC today and only 112 million people in India use the Internet out of population of 1.2 billion. That’s a huge opportunity for us.

Q: What are some of your local strategies for growth?

Intel’s goal in India is to extend our computing technology to connect and enrich the lives of every Indian. The Indian government recently announced that the goal of its national IT policy is to ensure that at least one person in every family is e-literate. Intel is committed to working with the government and to help the government enable this vision, Intel’s recently launched ambitious initiative called the National Digital Literacy Mission aims to bring about a strong public private partnership to drive faster technology adoption, with key focus on awareness creation at the grassroots. With the National Optic Fibre Network implementation seeing the light of day, broadband connectivity will improved and a multidevice play will emerge. India is such a big opportunity for all device makers from the handset to the supercomputer that the customizing and localizing devices for India is a given.

Q: What kind of demand are you expecting from Punjab and other states in terms of tablets?

Tablet sales in India are expected to double from its existing levels in 2013. Most of this growth is expected to be driven by higher consumer spends among the youth and growing demand from education and healthcare segments. Punjab and a few other states have shown signs of improvement in literacy rates in the last decade. With the Indian government focused on improving the education system also as a part of its ambitious Sarva Shiksha Abhiyaan and other schemes, the concept of e-learning and interactive learning is gaining rapid traction in tier 1 and 2 towns and cities in India.

Intel’s goal in India is to extend our computing technology to connect and enrich the lives of every Indian. With the National Optic Fibre Network implementation in the country seeing the light of day, broadband connectivity will improved and a multidevice play will emerge. India is such a big opportunity for all device makers from the handset to the super computer that the customizing and localizing devices for India is a given.  — Sandeep Aurora, marketing director, Intel South Asia

San Francisco/Seattle/ Paris, March 3
Eight years ago, US regulators substantially increased their dependence on the aircraft industry to help keep flying safe.

The US Federal Aviation Administration (FAA) said it would no longer directly manage routine inspection of design and manufacturing. Instead, it would focus on overseeing a self-policing program executed by the manufacturers themselves through more than 3,000 of their employees assigned to review safety on behalf of the FAA.

These so-called designees had existed for decades, but the FAA had vetted and controlled them. Under the new system, companies chose and managed them, to the point where the FAA even had trouble rejecting those they felt were unsuitable for the job, according to one government watchdog.

As the drama of the overheating lithium-ion batteries on the Boeing 787 Dreamliner unfolds, that relationship is coming under intense scrutiny.

No evidence has surfaced that the designee system is responsible for the battery problem that has prompted regulators to temporarily ban the plane from the skies. The story has raised the question, however, whether the regulator hands over too much power to the industry.

"This is an occupation with a built-in conflict of interest," said Gordon Mandell, a retired FAA certification engineer.

With Boeing doing about 95 percent of its own inspections, adds Mary Schiavo, former Department of Transportation inspector general, "it's kind of do-it-yourself." The situation was not unique to Boeing, she said. "There are places around the world that saw an FAA inspector once, maybe five years ago, and that's it."

HOW WERE TESTS VERIFIED? Boeing's new ultra-modern carbon-composite jet has been grounded around the world for six weeks as the National Transportation Safety Board leads an investigation into two battery incidents, joined by the FAA. Both agencies are also looking into the 787 certification process.

"We need to understand what tests were done and who was certifying those tests, and again how they were verified — not just by Boeing, but by the regulator as well," NTSB chairman Deborah Hersman said on Feb 8, referring to the battery and other key parts made in a long, global supply chain.

At the broadest level, even some supporters of the designee process are asking whether the FAA is up to the task of effectively overseeing the system. Among them is Ken Mead, another former DOT inspector general and a veteran of investigating the FAA. "The questions I'd want answers to are: Does the FAA have the right people with the right expertise to make sure the FAA is in a position to critically second-guess? And have they critically reviewed the approval process so this does not happen again?" he said.

However, the FAA's defence of its abilities and approach is unwavering. — Reuters

Q: According to a CBDT notification, interest on Post Office savings accounts up to only Rs 3,500 in the case of single accounts and Rs 7,000 for joint accounts will be tax exempt. Starting from fiscal 2012-13, banks’ savings account interest up to Rs 10,000 has been exempted from tax. Do these two provisions still exist and, if so, under what sections/notifications have these exemptions been provided for FY13 (for mentioning in IT returns)?

Prem Sagar

A: Interest incurred on Post Office savings accounts is exempt under section 10(15) of the Income Tax Act, 1961 to the extent of Rs. 3,500 in case of single account and Rs 7,000 in a joint account. The deduction allowable from financial year 2012-13 to the extent of Rs. 10,000 should not be equated with the aforesaid exemption. An income exempted under section 10(15) of the Income Tax Act does not form part of the total income and therefore the exemption to the extent allowable under section 10(15) of the Income Tax Act would be excluded from the total income. Deduction to the extent of Rs 10,000 is allowable from such total income under Section 80TTA of the Income Tax Act. These two deductions are separate and should not be compared with each other. The exemption allowable under Section 10(15) of the IT Act will have to be disclosed in the column which relates to exempted income and the deduction under section 80TTA of the Act would allowable under Chapter VI-A of the Income Tax Act.

New Delhi, March 3
Air Asia and Tata Group which have proposed to set up a domestic airline along with Arun Bhatia of Telestra Tradeplace, have sought approval for renting and leasing of aircraft, besides carrying of air freight.

According to sources, in its application to the FIPB, the partners have also sought permission for engaging in ancillary activities. "Other activities for which they have sought permission include air transport carriers (of freight), cargo handling, renting and leasing of aircraft," a source said.

The application for renting and leasing of aircraft, however, does not include financial leasing. — PTI

The finance minister has attempted a deft balancing act between the pressures of populism and the imperatives of austerity in the FY2013-14 budget

Finance Minister P. Chidambaram was wooing foreign investors and he has largely managed to keep them happy through this budget. People were also expecting additional deductions for fresh investments in financial instruments and some schemes to wean people away from gold. These expectations were only partly met with a tripling of benefits in the clumsily designed Rajiv Gandhi Equity Savings Scheme (RGESS) and an additional deduction for interest payable by a limited number of first time homeowners.

Those who were expecting a dose of higher taxation to fund the giveaways that the budget was widely expected to be provide heaved a sigh of relief. There were no additional taxes except for a mild increase in tax for the super rich (for those with income exceeding Rs 1 crore)

A quick look at some of the things that affect individuals directly that has been either promised or are the proposed tax changes:

• The deduction for investment in listed securities and mutual funds up to Rs 25,000 per annum (at the rate of 50% of the amount invested) will now be available for 3 years instead of just the first year. This is an excellent step as tax deductions spur investments as nothing else does. Now if only the scheme itself can be simplified as promised by the finance minister this should get a fair amount of collection and bring fresh investors in the equity market.
• The newly introduced deduction for interest payable on a home loan taken by a first time home buyer with a loan limit of Rs 25 lakh and a house property cost of Rs 40 lakh seems to imply that it will allow the deduction even if the property is under construction next year. This interpretation, if correct, will mark the first time that deduction will be available even for properties that are under construction as at the end of the year. It will also act as a one time additional deduction for people who acquire ready property in the next financial year where the loan amount is between Rs 15 lakh and Rs 25 lakh. Unfortunately it is available only if the loan has been sanctioned and disbursed after April 1, 2013. So lenders can kiss goodbye to sanctions/disbursements in March 2013 for eligible loans.
• Taxpayers with taxable income below Rs 5 lakh will get a tax benefit of Rs 2,060. This is an excellent way to keep the tax net intact and still give some benefit to the people at the lower end of the slab.
• Tax deducted at source (TDS) at the rate of 1% has been introduced for properties costing more than Rs 50 lakh. This is very different from the way this provision was sought to be introduced last time around and hence should not have a significant impact on property transactions as long as the process of paying the TDS and filing of TDS return is made easy by the department for buyers who otherwise don't have any tax deduction account numbers.
• The reduction of securities transaction tax (STT) in mutual funds purchase and sale/redemption is an excellent step. After all the mutual fund itself pays the STT and payment of STT by the individual amounted essentially to double taxation. This will reduce the transaction costs making mutual funds more attractive for individual investors.
• There is a brave announcement of inflation-indexed bonds to pitch it as an alternative to gold that is traditionally believed to protect you against inflation. It will be interesting to watch the proposition that will be rolled out and how popular it will be with the retail investors. The credibility of inflation numbers as put out by government controlled bodies is not high and hence a suitable surrogate to measure inflation will need to be worked out if the inflation indexed bonds are to make a mark.
• There was an intriguing announcement about a women's bank largely run and managed by women and focusing on the needs of the Indian women. This is the germ of a great idea and can work really well in the long run. This clearly proves that the bureaucracy can come up with great ideas if they really want to. Whoever thought of this idea deserves a bow even if the idea does not work as well as envisaged currently. However it does not augur too well for the Reserve Bank of India's autonomy since the finance minister assumes that the license will be available and the bank will be up and running in 7-8 months. Does that mean that this particular application will get special treatment or will we see fresh banking licenses being issued to others in the same time frame as well?
• A very interesting idea has been proposed for a comprehensive insurance policy that provides life cum disability, health cover, maternity assistance and pension benefits all rolled into one. Whilst this has been proposed for the unorganized sector and is likely to be paid for by the government, there is no earthly reason why a similar plan should not be available to every citizen of this country, off course, fully paid for by the consumer. The plan needs to be standardized and available off the shelf and be easily available even if it is for limited cover amounts with higher premiums payable for higher coverage.
• The Direct Tax Code has been promised in this budget session itself as has the Insurance and Pension Fund Regulatory & Development Authority bill. Let's see whether the finance minister is able to keep his promise.
• The long delayed general sales tax (GST) will hopefully see the light of the day this year finally. The carrot of central compensation has been dangled. Let's see if the bait is bitten by state governments in time.

The author is CEO of Apnapaisa.com, an online marketplace for loans & investments

Kiran Shah, 35, is the sole earning member of his family. He lives with his parents, wife Neha, a housewife, and his two kids aged 5 and 3 in Mumbai. Like most parents he has several aspirations like planning for his children's education, marriage, etc.

Recently, Kiran lost a dear friend who was 34 years old. He is worried about what will happen to his family if he meets the same fate. Spending some thought on this makes him realize that income replacement is his first priority need.

Typically each individual has six basic financial needs which he/she faces at some point in time during his lifetime. These needs are:

• Income replacement
• Living with impaired health
• Education funding
• Retirement planning
• Wealth accumulation
• Wealth enhancement

While it is important for one to be insured, what is more important is to be insured for the right reasons based on needs. Hence when buying insurance, before seeking advice from an insurance company, a family member or friend or looking at which product is doing best in the market it is important to analyze one's needs and having identified your need buy insurance plan that best addresses this need.

However, based on an individual's life stage, one or more of these needs will take priority over the other. It is important to sufficiently cover needs which are of higher importance first instead of covering all the needs at one go.

Once the needs and priorities are identified then one shall take each need one by one and shall plan investments to take care of that particular need.

Such need based financial planning helps one understand the financial status in its entirety and plan for future savings and expenses. The holistic picture is necessary for allocation of one's savings to various needs based on risk profile.

Once such need that is common and important to most individuals is the concern of what would happen to his/her dependent if he/she is no more around and to plan for the financial independence of the dependents in case one is no more to take care of them. This is exactly what 'income replacement' need means. Income replacement as the name suggests is 'to be able to replace your income if you are no more around'.

For every individual who is an earning member and have several dependents on him/her, income replacement becomes a very important tool of risk management.

This need can be taken care of by purchasing a life insurance policy. While there are various products offered by insurance companies for this need, a pure protection or term product is best suited to take care of this need. In a typical term product policyholder pays a certain premium for the amount of cover chosen. In case of unfortunate death of policyholder, the nominee is paid the sum assured. If the policyholder survives for the term of the policy then the contract ceases and no benefit is payable.

However more often than not, surviving members of the family are not financially savvy enough to manage the lump-sum that they would receive on demise of the earning member and the money may not be used judiciously. In such cases the whole purpose for availing a cover is lost as the family does not become financially independent. To overcome this problem there are several products which offer the death benefit in monthly installments instead of lump-sum.

The difficult part is to arrive at the amount of insurance cover. The general rule is to project the expenses of family or income of the policyholder till the retirement age of the policyholder and buy cover to that extent. Generally the need for cover increases with increase in income till certain age and then reduces as one begins to accumulate savings and becomes nil at retirement.

It is a good practice to buy insurance cover such that is pays lump-sum benefit to the extent of liabilities one may have such as loans etc and monthly amount to the extent of expense of family.

Recently there are pure protection products sold through the web channel by most insurance companies. These plans are cheaper since there is no commission paid to the agent or intermediary. However one should opt for online policy if he/she is sure that the survivors are capable of managing the claim process as he/she would not be there when the benefit of the policy is to be availed. Moreover one should explain the policy benefits to the survivors so that they are aware of the risk cover and the benefit.

It is extremely important that when one buys an insurance cover one should always fill the form oneself and disclose all the correct information so there is no problem at the claim stage.

If you have understood your needs well and followed the proper procedure then you shall not worry anymore. You have taken care of this need of providing "income replacement".

The author is CEO of Edelweiss Tokio Life Insurance