 |
Sunday,
December 30, 2001, Chandigarh, India  
|
World economy may worsen in 2002: experts
In the wonderland of investment
Chambal Fert to bid for 51 pc stake in NFL
Gratuity not paid
|
|
|||||||||||||||||||||||||||||||||||||
|
Border lobbying
ILS not accurate in thick fog
Forex reserves cross $ 48 b
|
|
World economy may worsen in 2002: experts London, December 29 A raft of new predictions from London banks suggest that in 2002 the world economy is unlikely to see much of an improvement, and could even worsen. Economists at Lehman Brothers say the global economy is likely to grow just 1.1 per cent next year. It estimates that the economy grew by 1.2 per cent this year. Lehman's global chief economist, John Llewellyn, said: "The worst may soon be over for the world economy, but a return to the heady performance of the past five years seems unlikely." HSBC is more optimistic, predicting that the global economy will grow by 2 per cent next year, compared with an estimated 2.1 per cent in 2001. However, the bank's economists note: "There should be some kind of global recovery over the coming year but the pace of recovery will, in our view, ultimately be disappointing over the medium term." The UK, however, is expected to fare a little better. Merrill Lynch predicts that the UK economy will grow by 2 per cent, compared with an estimated 1.9 per cent this year. As a result Merrill's analysts predict that the FTSE 100, which closed on Friday at 5,242,having started the year at 6,222, will finish 2002 at around 5,500, making it one of the more pessimistic of the city's blue chip institutions (see chart, below). Hopes that the USA will lead the way look misplaced. Analysts believe that US firms, which have reined in their spending during the second half of this year, will look to build up their inventories in the new year. However, Lehman Brothers argues:"After that initial, inventory-led burst, it seems unlikely that the 2002 recovery will be particularly strong." Analysts remain acutely concerned about the prospects for Japan, where last week the number of unemployed reached a record high. The threat of the country entering a prolonged financial crisis continues to damage confidence, with the result that economic growth in Japan is predicted to fall further next year and to grow by very little in 2003. By arrangement with The Observer |
|
In the wonderland of investment Q: There is a 1-by-6 scheme applied all over India, but which city or town covered under the scheme is not clarified, please inform me about the circular of CBDT which specifies the definition of city.
Mansukh A: FA01 has extended the 1-by-6 scheme to all urban areas, having a municipality and a population of over 5,000 as per census conducted in 1991. Vide Notification So No. 410(E) urban areas will include ‘Towns and Urban Agglomeration’ as listed in table A-4 of the second part of Part II-A of Series-I of the Census of India, 1991. The names of these towns are available on — http://incometaxdelhi.nic.in/vsincometaxdelhi/scheme/onesix.htm Q: 1. Banks are extending housing loan facility to its staff on the concessional rate of interest. The loan amount is to be repaid in 15 years and thereafter the simple interest so applied in 5 years. My friend who is an employee of the bank had availed housing loan from his bank 15 years back. He used to take the benefit of Sec. 88 (i.e. repayment of housing loan) as well as Sec 24(2) (on account of interest applied on housing loan) in the relevant financial years. He wishes to know whether he can get the benefit of Section 88 now as he is repaying only the interest portion of the housing loan account. 2. One person has availed housing loan for construction of independent house. Till date he has utilised the loan amount for purchase of plot only. Construction is yet to begin. Repayment of housing loan will begin after 18 months of disbursement of first instalment of housing loan or completion of construction whichever is earlier. Whether exemption on interest can be availed even if it is beyond his control to start the construction like release of plot/clearance by local bodies, etc. 3. There is a ceiling on the amount of housing loan a bank employee can avail. Previously it was Rs 1,50,000 for clerical employees thereafter it was raised to Rs 3,00,000 and now it has been enhanced to Rs 4,50,000. An employee who has availed housing loan of Rs 1,50,000 10 years back, has again availed additional housing loan of Rs 3,00,000 (Being the difference of first dispensation and the recent dispensation) for extension of his house for which he is entitled as per the provisions and terms and conditions of service. I would like to know whether the employee is entitled for deduction from gross income the interest on housing loan up to the increased limit i.e. Rs 4,50,000 or otherwise. 4. Some of the employees raise housing loan from employee credit co-op credit society to meet margin money/short fall for construction/purchase of flat apart from bank loan. Whether these employees are entitled to claim benefit of rebate u/s 88 under the head repayment of housing loan for repaying loan amount availed from employees credit society, and the interest applied on such loan amount under relevant section. 5. Some of the employees raise housing loan from employees credit co-op society only as the banks are reluctant to finance the projects since the piece of land falls under the undeveloped societies. In such cases, whether benefit of rebate can be claimed for repayment of housing loan and interest applied thereon under relevant sections. Shrikant Vishwekar A: The way you have posed the queries, you appear to be a consultant. This is not a forum for consultants to obtain free advice. Nevertheless I find that the answers to these will be of general interest and therefore, I will answer them, but excuse me for being brief. 1. For eligibility of deduction, the word used is interest ‘payable’ and not ‘paid’. Therefore, if a finance company collects the loan first and interest later, the borrower will be able to claim the rebate u/s 88 on a larger amount and also claim deduction of interest u/s 24 on accrual basis. The interest payment can wait until the principal amount is collected. Some employers, especially PSUs and banks, follow this practice. 2. Both concessions, rebate on repayment of capital and deduction of interest are allowed only when the income from house property becomes chargeable to tax. In other words, the construction should be complete, the flat should be ready for occupation and the municipal annual value is known. The interest for the years prior to the year in which the property was completed, will be deducted in equal instalments for the year during which it was completed and each of the four immediately succeeding years. Unfortunately, there is no corresponding provision for the tax rebate. 3. If the borrower takes another loan for repaying the original loan, he can still continue to claim the deduction on interest on the second loan. The ceilings will depend upon the fresh loan being taken on or after the April, 99 and the acquisition or construction is completed before April 1, 2001. It appears that under such a situation, the rebate u/s 88 is lost. The increased limit of loan is inconsequential and immaterial. The increase will differ in different cases. It is the interest paid on fresh loan that matters. 4. The eligibility of the rebate on part payment of loan is available if and only if the loan is taken from i) any self-financing or other schemes of any development authority, housing board or other similar authority engaged in the construction and sale of house property on ownership basis or ii) any company or co-operative society of which the assessee is a shareholder or member towards cost of house property allotted to him. There is no such restriction on interest. The deduction can be claimed irrespective of the source. 5. Credit cooperative societies are eligible institutes. Q: I have bought 900 shares of Wartsila during May ‘01 and sold out during Sept ‘01. I have portfolio account with Federal Bank and I have sold out the same through Federal Bank. But Federal Bank has deducted as TDS 30% of the capital gain after sale. Please let me know your advise of how to save from this huge TDS. I am an NRI in Kuwait and my portfolio account is non-repatriable basis. Saji A: This is the typical malady we Indians suffer from. We are so good in our profession that the overseas employers appreciate our abilities and reward us handsomely. The bad part is that we do not take care of our assets and indulge in investments without having any details of their structure. Why do we not take professional advice before investing? The fee paid for this purpose will be the best investment and will eliminate all the heartburns emanating from the problems arising out of this ignorance. Federal Bank has correctly applied the TDS because that is the law. The only recourse open to you is to file the returns and claim the refund. |
|
Chambal Fert to bid for 51 pc stake in NFL
Mumbai, December 29 The CFCL Board has recommended to shareholders for their approval of an investment not exceeding Rs 900 crore for acquiring a 51 per cent stake in NFL and other equity shares that may be offered for acquisition pursuant to public offer to be as per the SEBI’s Takeover Regulations, 1997, the K.K. Birla group company said today.
PTI |
rc
Gratuity not paid Q: Is it true that even consent to an agreement to deduct monies due from gratuity is always void? Ans: In Kuttan Pillai v State of Kerala, the Kerala H.C. was dealing with this issue. Petitioner retired from service while working as Last Grade Servant on 1.1.2000. Retrial benefits have been sanctioned to him. Inspite of the same, no gratuity has been disbursed to him. It was submitted that the petitioner had agreed for recovery of an amount of Rs 35,738. Therefore, the petitioner can get only the balance amount. In reply thereto, petitioner submits that as per the provisions of S:60 of C.P.C., agreement for reduction of any amount from the gratuity is void. In that way, the matter is before the H.C. H.C. observed that gratuity is payable to the petitioner on the basis of rules contained in Rule 3, Part III of the Kerala Service Rules. When, in the opinion of the H.C., this provision contained in the rules give right for payment of gratuity after the amount due to the Government companies, after having consented in that line, the petitioner cannot now turn round and say that the deduction is void. It is based on the statutory provisions contained in Rule 3. On that basis, the amount due from the petitioner to the Government company, namely, the Kerala Finance Corporation, is sought to be recovered. Therefore, the H.C. said that the petitioner will be entitled to get only the balance, if any left, after deducting the amount made mention of by himself in the aforesaid annexure. Thus, the H.C. held that there is no reason on the part of the respondents in delaying the balance amount, if any, beyond 31.12.2000. The delay in paying the balance amount beyond December, 2000, on expiry of a reasonable time after submission of annexure, is not justified. Therefore, the respondents shall be liable to pay interest on the balance amount w.e.f. 1.12.2000 until the date of payment. Payment shall be effected, with interest payable at 6 per cent at any rate, within a period of three months from the date of receipt of a copy of this judgement. In that way the original petition was disposed of. |
ty
Border lobbying THE grapevine has it that a leading private sector refinery player is lobbying hard to ensure that hostilities do not break out between India and Pakistan. Why? Well, the group is known to be vocally patriotic, and yes, of course, its refinery is a trifle to close to the border for its comfort. Operators blink It seems that the Kolkata-based market operators who were rumouredly assisting in ramping the notorious K 10 stocks have lost their nerve and begun to unwind their positions after the recent developments. Makes sense, since the buzz was that they were carrying forward stocks financed at an interest cost of 28 per cent.
Bumper crop With the reinforcement of the news about Bayer’s enhanced interest in Aventis Crop Science doing the rounds, there is a buzz that a buy-back offer may be in the offing. Any guesses on the price front?
Prediction After the Poona based soothsayer’s prediction of a post-Divali rally materialised, all eyes are now on his 2002 prediction. Sources close to him whisper that it will be a positive one. Watch this space. |
sti
ILS not accurate in thick fog A
man, with explosives in his shoes and forged travel documents, hoodwinked the Paris airport security authorities and boarded an American Airport flight recently. He was in the process of detonating the explosives to blow up the plane. The alert cabin crew found his movements suspicious and, with the help of passengers, saved human lives and aircraft. It was a sheer providential escape for hundreds of passengers. The lapse has not only caused an unprecedented embarrassment to the French authorities but it shows vulnerability of security officials manning international airports. Despite stringent measures, the man was able to conceal explosives in his shoes. As terrorist activities are increasing, there is an urgent need to have “military level” security at all international airports, which are highly vulnerable. Unless ground security arrangements are considerably tightened, the security of passengers and safety of aircraft will always pose serious problem. ILS installed
The sophisticated instruments landing system (ILS) category-III-A has been installed and inaugurated at the IGIA. On paper, it will enable pilots to land at a visibility level of 200 metres and decision height of 50 feet. But many commanders of international airlines are wary of using it as its functioning in poor visibility is not 100 per cent accurate as the situation demands. The pilots flying on domestic sectors are not trained and they cannot make use of the system. In other words, the flights will continue to get disrupted and dislocated during fog until January. Fleet rationalisation
Air India will induct A-310-300 aircraft on dry lease in place of ageing B-727-200 and A-300-B-4 aircraft, which have become uneconomical. |
bb
Reliance Cap MF Sun F&C MF Film institute CESC tariff |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 121 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
