Cabinet defers Neyveli divestment
Assam plans hydrocarbon finding body
HP approves 52 projects
CBoP gets RBI nod to issue shares
Maruti sells 50,904 cars in May
Minda profit up
New Delhi, June 3
“It (the approval for disinvestment of NLC) was postponed as we had to consider various aspects,” Information and Broadcasting Minister Priyaranjan Dasmunsi said after the meeting of the Cabinet Committee on Economic Affairs.
The proposal to divest 10 per cent stake in NLC first came up before the CCEA on January 30 but it could not be cleared due to some differences among ministries.
The matter was again referred to the Department of Disinvestment, which has moved a revised proposal after obtaining approval of the Planning Commission and all the relevant departments and Ministries.
The government proposes to sell 10 per cent of the shares in the NLC through book building process.
The process of sale would start as soon as the CCEA nod is achieved and the proceeds would go to the National Investment Fund (NIF).
The government holds 93.56 per cent stake in the company, which is listed on the Bombay Stock Exchange and National Stock Exchange.
Based on the price of the company’s shares on the stock exchanges, the government is likely to raise around Rs 1,300 crore. — PTI
Guwahati, June 3
State Power and Industry Minister Pradyut Bordoloi told reporters here today that the government would set up the corporation to tap hydrocarbon resources in the state and also to reactivate the 2000 closed oil wells of the ONGC to generate crude oil.
Reactivation of closed ONGC oil wells was imminent in view of the refineries in the state receiving 5 million metric tonne crude when they needed 7 mmt leaving the balance 2 mmt to be imported, he said.
Stating the company would be set up as the one done in Gujarat for exploring oil, Mr Bordoloi said it would be a public-private joint sector project.
On the queries, the minister said, the state exploration corporation would, however, not surpass the activities of the ONGC or Oil India Ltd exploring hydrocarbon in the state and the areas of operation of all would be worked out in advance.
Asked about the reason for setting up the state corporation, Mr Bordoloi said: “The Assam government would earn more money as presently it earned only from the royalty on crude oil.
Now the government would earn directly from selling the crude oil and generate employment avenues for the local unemployed, he added.
The minister, however, did not specify when the corporation would be set up. — PTI
HP approves 52 projects
Shimla, June 3
Speaking on the occasion, the Chief Minister, Mr Virbhadra Singh, said that an industry- friendly environment and good governance had resulted in attracting 7,181 small, medium and large industrial units to the state with an investment of Rs 18,278.49 crore. He added that this had resulted in generating employment potential for 2.56 lakh persons, during the past three years.
He said the pollution -free climatic conditions were most conducive for the IT and BT entrepreneurs who had submitted their proposals to the government in large number. "The surplus power availability was the most vital feature for any industry and Himachal had potential for generating immense power," he remarked.
He directed the authorities to ensure that prospective entrepreneurs are provided need -based land after ascertaining the actual requirement projected in the proposal.
CBoP gets RBI nod to issue shares
Chandigarh, June 3 The bank proposes to allot up to 7 crore equity shares at a price of Rs 19.25 per equity share. The bank had allotted 12.76 crore equity shares at a price of Rs 19.25 per equity share on March 21, 2006, to funds managed by India Value Fund Advisors Private Ltd, and Citigroup Venture Capital International Growth Partnership Mauritius Ltd as per the approval from the RBI received earlier. The Centurion Bank of Punjab operates on a strong nationwide franchise of 243 branches, 391 ATMs in 123 locations and is supported by over 4,700 employees.
Chandigarh, June 3
The bank proposes to allot up to 7 crore equity shares at a price of Rs 19.25 per equity share.
The bank had allotted 12.76 crore equity shares at a price of Rs 19.25 per equity share on March 21, 2006, to funds managed by India Value Fund Advisors Private Ltd, and Citigroup Venture Capital International Growth Partnership Mauritius Ltd as per the approval from the RBI received earlier.
The Centurion Bank of Punjab operates on a strong nationwide franchise of 243 branches, 391 ATMs in 123 locations and is supported by over 4,700 employees.
Maruti sells 50,904 cars in May
New Delhi, June 3 The total sales stood at 53,396 units during the month, which includes 2,492 units of exports. The company said sales in the domestic A1 segment (Maruti 800) grew by 10.25 per cent in May compared to sales in the same month last year.
New Delhi, June 3
The total sales stood at 53,396 units during the month, which includes 2,492 units of exports.
The company said sales in the domestic A1 segment (Maruti 800) grew by 10.25 per cent in May compared to sales in the same month last year.
Hyundai Motor India Ltd (HMI) has announced that its sales for the period May 2006 stood at 25,883 vehicles, comprising 16,102 units in the domestic market and 9,781 units in the overseas market. HMIL’s flagship brand Santro, sold 12,475 units in the domestic market growing by 33 per cent corresponding to last year’s monthly sales over the same period.
Hyundai Motor India Ltd (HMI) has announced that its sales for the period May 2006 stood at 25,883 vehicles, comprising 16,102 units in the domestic market and 9,781 units in the overseas market.
HMIL’s flagship brand Santro, sold 12,475 units in the domestic market growing by 33 per cent corresponding to last year’s monthly sales over the same period.
New Delhi, June 3
The Profit after Tax of MIL for the FY 2005-2006 was Rs.1295.48 lakh, up from Rs. 1021.54 lakh for FY 2004-2005, witnessing an increase of 26.82 per cent. — TNS
Mumbai, June 3
In a position paper on the Indian food-processing industry submitted to the government, Assocham pointed out that the industry's access to institutional finance for term loans and working capital requirements have been limited in the past and continues to be restricted even now. — UNI
by K.R. Wadhwaney
Continental Airlines has introduced ‘online check-in-system’ on its recently launched Delhi-New York non-stop flight which, according to Delhi airport officials, has been a preferred carrier by Indian travellers.
Winner of several major awards for providing comfort to passengers, the airline officials in Delhi have gone on record as saying that the ‘online check-in system’ enables the passenger to acquire the boarding pass at the click of a button.
Announcing this additional facility, the airline’s Senior Director (India) Laurent Recoura said: “judging from the overwhelming response from the travellers, we have launched this facility so that operations become more convenient”. Rated as one of the best airlines in world, the carrier offers several other facilities to even ‘economy-class passengers’. “This proves our commitment to our clientele”, the airline said.
Switzerland, particularly Geneva, has become a favourite destination for Indian travellers. More than half-a-dozen travel agents, including three Mumbai-based one said that ‘we are surprised at the unprecedented growth to Geneva. The Switzerland Tourism Board team of officials, led by the Ambassador to India Dominique Dreyer, disclosed that the growth of traffic had doubled and, judging from the recent trend, it could be trebled before 2006 was out.
According to travel agents, the commission and incentives from airlines has decreased substantially but an unprecedented volume of traffic to Switzerland, Europe and the US is helping us keep afloat in razor-sharp travel market.
Easily accessible by air, rail and road from key European centre, Geneva, known as the ‘heart of Europe’ has been chosen as the destination by Indians. Magnificently situated on the banks of the largest lake in central Europe and at the foot of the Jura mountains, Geneva seems to have charmed the Indian tourists. Christian Rey and Francois Bryand, two important members of the team, said that they were here on a short visit to provide highlights of Geneva and other tourist sports in Switzerland.
Considered as the ‘City of Peace’, Geneva headquarters a number of humani tarian institutions. “No wonder, Indians have developed a special liking for Geneva”, said the STB official.
The Indian civil aviation is on the road to take-off. But it is certainly not shining so brightly to warrant another about 10 airlines to fly on the domestic skies. Analysts feel that needless entry of airlines will crowd Indian skies.
The operators waiting in queue for clearance are of the view that curbs like equity base from Rs 30 crore to Rs 50 crore and reduction in aircraft age from 15 years to 10 are needless curbs to provide better playground to some. The over-all situation is messy as there is one rule for some and another for others. The influence of some individuals is so much that announcement of the new aviation policy is being delayed.
by A.N. Shanbhag
Q : My employer is providing me free health insurance cover through group mediclaim policy. My employer pays 100 pc premium for the health insurance of the employee & 50 pc premium for the health insurance of the family members. The premium for a single person under the group medical insurance policy is Rs 2,000. In my case suppose my employer has paid a premium of Rs 2,000 for my insurance & Rs 2,000 premium for insurance of my wife & son. In addition, a sum of Rs 2,000 is being deducted from my salary towards 50 pc premium for the insurance of my wife & son. Please advise in this case what amount will be added to my perks & how much deductions can I claim under Section 80D.
— S. Khalsa
A : You will be able to claim Rs 2,000 deductible for the 50 pc premium paid towards insurance of your wife & son. Group medical insurance for employees and their families or reimbursement of insurance premium to the employees who take such medical insurance is exempt from perk value.
However, there is a silly problem. The Section 80D states, “Deduction up to Rs 10,000 paid out of income chargeable to tax is allowed in respect of medical insurance premiums paid by cheque by an individual. Yes, since you have not paid by cheque, the concession may be denied to you. One of my readers was denied the same when he paid the premium through credit card!
Q : I am an assessee last 50 years and has been regularly filing my income tax returns without enclosing capital accounts and balance sheets. I have now started preparing capital accounts and balance sheets from the financial year ending 31.3.2004. If at any time the case is selected for scrutiny, can the ITO insist for balance sheets prior to 31.3.2004. What action can be taken by the ITO on the failure of the assessee to produce the balance sheet for the period beyond 31.3.2004. Also advice the manner in which I should defend of case such situation arises.
— Santosh Singh
A : This is a danger faced by all assesses who do not file their balance sheets. It is advisable for everyone to file the same along with their returns. The department has a right to call for data for the past 8 years.
PAN and demat
Q : I am a government employee and have PAN and a demat account. My wife is a housewife. She doesn’t have any source of income. I operate another demat account in her name and do day trading in her account. Now I came to know that PAN is going to be compulsory to have a Demat account. Please advise should I
(A) Apply for PAN in my wife’s name. If yes, then is it compulsory for every PAN holder to file return irrespective of her income? As income from share trading is not fixed and even may be negative. Is there any complication if I invest Rs 30,000 to Rs 40,000 in her name in a year in her account. Then what would be her tax liability if she earns some amount from trading? Or
(B) Close demat in her name.
A : Yes, every demat account has now to be backed up by a PAN. Mere possession of PAN does not necessarily mean that the PAN holder has to file tax returns, even if the income is below the tax threshold. We strongly feel that since she has no money of her own, her income will be taxable in your hands. You should stop using her as a name lender.
Q : I moved from India to the US five years back (2001). Before moving, I bought a property in India (2000). I am interested in selling the property and remitting funds to the US. Can I sell the property and remit funds now thru the option of “funds that can be remitted due to emigration that has limit of $100,000”? Any capital gains impact in India?
A : The funds for emigration needed to be used whilst emigrating. Now, five years after having moved, it is not tenable that you need to use the facility for emigration. Also, for property having been acquired out of rupee funds, there is a ten-year lock-in before allowing repatriation. The snapshot of the law is presented hereunder for your perusal:
India has taken a giant step in the direction of full convertibility through Circular 67/2003-RB dt 13.1.03 supplemented by RBI Master Circular 4/2004-05 dt 1.7.04. Earlier, it was possible to repatriate forex on current account and also some specified small amounts on capital account.
Now, it has become possible for an NRI or a PIO to remit as much as US$ 1 million per calendar year for bona fide purposes out of the sale proceeds of assets held in NRO accounts. He should have acquired the assets in question, out of rupee resources when he was in India or by way of legacy/inheritance from a person who was a resident in India.
In the case of immovable property acquired out of rupee funds, the remittance of sale proceeds is available subject to the condition that the property should have been held for a minimum period of 10 years. If such a property acquired out of Rupee funds is sold after being held for less than 10 years, remittance can be made, if the sale proceeds have been held by the NRI for the balance period in NRO Account (savings or term deposits) or in any other eligible security, provided such investment is traced to the sale proceeds of the immovable property.
For remittance of sale proceeds of assets, both financial and immovable property acquired by way of inheritance/legacy or settlement from a person who was Resident, there is no lock-in. The remittance can be effected only when it is sought for all bonafide purposes to the satisfaction of the AD. An undertaking by the remitter and certificate by a Chartered Accountant in the format prescribed by CBDT vide their Circular 10/2002 dt 9.10.02 has to be produced.
It is necessary to file Form-A2, FEMA declaration, certificate from an accountant, and undertaking for payment of income tax, in the specified format. A no-objection-certificate from the income tax department will be useful, but not necessary.
Since the property is held for over 3 years, Long-term capital gains tax will be payable.
Q : In the Finance Act 2006, the Finance Minister has changed the investment pattern for saving capital gains tax by removing the name of NABARD restricting the investment to NHAI (National Highway Authority of India) and REC (Rural Electrification Corporation). Till date bonds of these corporations are not on sale. This is certainly not fault of tax payer. What is the status if investment is made after the expiry of six months period, but only when bonds are open for public investment?
— N. K. Prasad
A : Yes, you are absolutely right. In spite of pleas from many journalists, including yours sincerely, the authorities have not yet taken any action. They appear to be more interested in collecting taxes by creating such impasse for the taxpayers.
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