SPECIAL COVERAGE
CHANDIGARH

LUDHIANA

DELHI



THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS

B U S I N E S S

Customers of private banks to shell out more
ICICI, UTI Bank to up service charges from July 1
New Delhi, April 22
Bank customers will have to pay more for availing services like ATM cash withdrawal and cheque returns as lenders, led by the ICICI Bank and the UTI Bank, have hiked fees for such operations if a minimum balance of Rs 5,000 is not maintained in accounts.

Top industrialists to meet Nitish today
Patna, April 22
It is literally a day out for who’s who of India Inc when they assemble in Patna tomorrow to share some time with Chief Minister Nitish Kumar for a greater cause related to corporate’s social responsibility.

Doctorate for Sunil Mittal
Chandigarh, April 22
The Govind Ballabh Pant University of Agriculture and Technology has conferred the Degree of Doctor of Science (Honoris Causa) on Sunil Bharti Mittal, chairman & group CEO, Bharti Enterprises.

Sunil Bharti Mittal



EARLIER STORIES

 
Visitors gather near the A6 sedan from Chinese automaker Chery on the first day of the Shanghai Auto show in Shanghai
Visitors gather near the A6 sedan from Chinese automaker Chery on the first day of the Shanghai Auto show in Shanghai on Sunday. Chery Auto Co, China's biggest domestic producer, unveiled two new sedans, the A3 and the A6, which will go on sale this year and are destined for export. — AP/PTI

Alliance Air to acquire 16 aircraft
New Delhi, April 22
Alliance Air, a wholly-owned subsidiary of Indian, plans to acquire 16 50-seater turbo-prop aircraft over the next 18 months for expanding its operations.

Pantaloon on expansion spree
New Delhi, April 22
Continuing with its expansion spree, Kishore Biyani’s Future Group plans to invest about Rs 4,000 crore in next one year to expand its retail chains.

Market UPDATE

Monetary policy may trigger movements
The market shrugged off a bigger than expected jump in inflation and uncertainty over the RBI’s next move in its monetary policy to add another week of gains to its kitty last week. Key stock indices rose for the second week in a row as the Indian bulls cheered results from IT biggies Infosys, TCS, Wipro, Satyam and HCL Tech.

Tax Advice

Seek relief u/s 89 for arrears
Q. I am a senior citizen of 81 years and a Govt. Pensioner. I have been submitting my income tax returns to the Department regularly and hold PAN Number. My income from all sources i.e. pension, bank interest and rent for a portion of my self-occupied house let out, had till now been below the prescribed taxable income limit after allowing permissible exemptions and rebates.






Top









 

Customers of private banks to shell out more
ICICI, UTI Bank to up service charges from July 1

New Delhi, April 22
Bank customers will have to pay more for availing services like ATM cash withdrawal and cheque returns as lenders, led by the ICICI Bank and the UTI Bank, have hiked fees for such operations if a minimum balance of Rs 5,000 is not maintained in accounts. New rates would be applicable from July 1.

The ICICI Bank customers, who do not maintain quarterly average balance (QAB), will be charged Rs 50 per transaction instead of Rs 25 as done earlier. These charges would be after they avail five free ATM transactions during a quarter as against the earlier six.

A debit card PIN regeneration through a branch will now be charged Rs 25.

In case of an inward cheque return, charges have been hiked to Rs 350 from the present Rs 200, an ICICI Bank spokesperson said.

All these charges are in addition to 12 per cent service tax and 3 per cent educational cess.

The bank is already charging as much as Rs 750 for every three-month period if any customer fails to maintain a minimum average of Rs 5,000 per quarter. For receiving monthly statements, the bank charges Rs 200.

The UTI Bank has also hiked certain charges for customers who maintain to fail QAB of Rs 5,000, while some other banks are also planning to hike service charges.

“We have not increased service charges but only hiked penal charges from Rs 500 to Rs 750 for non-maintenance of quarterly balance. For returning cheques, charges have been hiked from Rs 250 to Rs 350,” UTI Bank’s vice-president (liabilities) Anindya Mitra said.

The Centurion Bank of Punjab business director (wealth management, distribution and loans) Harpreet Singh, said: “We are not currently increasing our charges and will review the situation after three months.”

Meanwhile, Punjab National Bank executive director K Raghuraman said: “Our service charges are static for the past 4-5 years and in the near future we do not plan any hike”.

Notably, the RBI has instructed the banks not to levy exorbitant service charges and provide detailed information to the customers about them.

A study group of the RBI has also invited public suggestions on whether banks should impose charges on making payments through cheques to encourage customers to use electronic mode of money transfer.

However, another leading private lender, HDFC Bank, has no immediate plans to hike these charges.

“We have no plans of the sort as of now,” an HDFC Bank spokesperson said.

This bank also requires the maintenance of a minimum quarterly balance of Rs 5,000. — PTI

Top

 

Top industrialists to meet Nitish today
Ambarish Dutta
Tribune News Service

Patna, April 22
It is literally a day out for who’s who of India Inc when they assemble in Patna tomorrow to share some time with Chief Minister Nitish Kumar for a greater cause related to corporate’s social responsibility.

Top industrialists and heads of financial institutions,

as members of the Bihar Development and Investment Council(BDIC), will participate in the first-ever meeting of BDIC to work out the roadmap for attracting private investments and suggest tangible measures to accelerate the pace of development for a resurgent Bihar.

The BDIC was formed by Nitish in November last as part of the image makeover exercise for the state.

The 17-member strong delegation representing industrialists include Anand Mahindra of Mahindra and Mahindra, Sanjiv Goenka of RPG, Kumar Mangalam Birla of Aditya Birla Group, Suresh Neotia of Gujrat Ambuja, Analjit Singh of Max India Ltd, Habil Khorakiwala, president, Ficci, Priya Paul of Park group of India, K.V.Kamath of ICICI bank, Homi Khursokahn of Tata Chemicals ,Tarun Das of CII, S.Ramodorai of TCS, among others.

The BDIC vice-chairman, who was earlier a member of the planning commission during the NDA regime at the centre, N.K.Singh said promoting public-private partnership would be an important function of the BDIC. Nitish heads the council as its chairman.

Singh pointed out that 11th five-year plan of the state visualised a private investment of Rs 1,08,000 crore to achieve the daunting 8.5 per cent GDP growth target, besides Rs 59,000 crore of public investment.

Bihar has already attracted private investments of over Rs 27,000 crore in the past 16 months of Nitish rule.

Top

 

Doctorate for Sunil Mittal
Tribune News Service

Chandigarh, April 22
The Govind Ballabh Pant University of Agriculture and Technology has conferred the Degree of Doctor of Science (Honoris Causa) on Sunil Bharti Mittal, chairman & group CEO, Bharti Enterprises.

He has been honoured for his invaluable contribution for the welfare of society and the nation as a whole, in the field of his profession in particular, and other areas of public interest in general.

The degree was awarded to him by the Governor of Uttarakhand and chancellor of university Sudarshan Agarwal on the occasion of 23rd covocation at Pant Nagar yesterday.

Top

 

Alliance Air to acquire 16 aircraft

New Delhi, April 22
Alliance Air, a wholly-owned subsidiary of Indian, plans to acquire 16 50-seater turbo-prop aircraft over the next 18 months for expanding its operations.

The airline is already on the look out in the global market for various types of 50-seater turbo-prop aircraft, either through direct acquisition or through leasing, sources said.

In case the government gives a go ahead to its fleet purchase plans, it would be the first time that the airline would be buying aircraft since its launch in 1996.

While the sources maintained that no final decision has been taken as yet, they did not rule out leasing of all the 16 aircraft or a mix of purchase and lease.

The state-owned carrier flies to all the 11 functional airports in the entire region.

Its current total fleet strength is 17 planes, including 11 Boeing 737s, besides the ATRs and a Dornier. — PTI

Top

 

Pantaloon on expansion spree

New Delhi, April 22
Continuing with its expansion spree, Kishore Biyani’s Future Group plans to invest about Rs 4,000 crore in next one year to expand its retail chains.

“We are increasing the outlets of Big Bazaar from 50 to 100 by next year. We are also adding eight more stores of HomeTown,” Pantaloon Retail (India) Ltd. managing director Kishore Biyani informed.

Besides, the company would also come up with 12 malls under central and brand factory formats at places like Gurgaon, Kolkata and Chennai. The company has set a target of Rs 30,000 crore turnover by 2010-11. — PTI

Top

    
Market UPDATE

by Lalit Batra

Monetary policy may trigger movements

The market shrugged off a bigger than expected jump in inflation and uncertainty over the RBI’s next move in its monetary policy to add another week of gains to its kitty last week.

Key stock indices rose for the second week in a row as the Indian bulls cheered results from IT biggies Infosys, TCS, Wipro, Satyam and HCL Tech. The bulls did well to weather the Asian storm on Thursday, when a higher than expected Chinese first quarter growth triggered speculation of further tightening measures by Beijing.

Some important events are lined up this week which may trigger sharp market movements either way. The first and the most significant of those is the RBI’s monetary policy. The central bank is expected to hold interest rates steady at its policy review this Tuesday, although analysts say tightening is not over yet and may decide to take steps to curb capital inflows that have been driving up the rupee. The other events important from market’s perspective are the results of heavyweight like Ranbaxy, Maruti Udyog, Reliance Industries and the expiry of derivative contracts this Thursday.

Wipro

Wipro’s last financial year’s (2006-07) results point to the continued strong momentum that the company is witnessing in the global off shoring space. While volume momentum continues unabated, large and integrated players like Wipro are also getting three to five per cent higher billing rates from new clients for its IT services business. For the BPO business, the company continues to move up the value chain in terms of integrating these services with its core IT offerings. The benefit is visible in terms of improving profitability of the BPO business, while IT services margins are coming under some pressure on account of rupee appreciation and wage inflation.

I believe that India will continue to dominate the IT off shoring market despite challenges in terms of rupee appreciation against the dollar, increasing labour costs which threaten India’s comparative cost advantage, new challenges like quality control while staying cost competitive, emergence of new pockets of competition from other geographies, including China and the shortage of quality labour. No other country at the moment has India’s supply pool.

Wipro has continued to turn out strong performances, as visible from the quarterly results. While the company has faced margins and attrition pressures like its peers during this period, it has maintained a strong volume momentum and has also done well to successfully integrate the companies it acquired over the past 12 months.

Considering that off shoring, as a practice, is gaining increasing acceptance globally, and clients are now looking at outsourcing/off shoring high-end services to third party vendors, the tip-tier Indian software services players like Wipro are likely to benefit tremendously in future. Investor may buy Wipro on declines with a two-year perspective.

Top

    
Tax Advice

by S.C. Vasudeva

Seek relief u/s 89 for arrears

Q. I am a senior citizen of 81 years and a Govt. Pensioner. I have been submitting my income tax returns to the Department regularly and hold PAN Number.

My income from all sources i.e. pension, bank interest and rent for a portion of my self-occupied house let out, had till now been below the prescribed taxable income limit after allowing permissible exemptions and rebates.

During the current financial year 2006-07 I have received payment of arrears of various pensionary/retiral benefits amounting to Rs90,000 approx. as a result of implementation of a court judgement. These arrears relate as under:

Old age pension @5% & 10% of basic pension on completion of 70 & 75 years age, respectively, for the period 01.01.1997 to 30.09.2006, and dearness relief thereon.

Difference of fixed medical allowance for the period 04.03.1995 to 30.09.2006 and travel concession equal to one month’s basic pension on completion of 2 calendar years during the period 01.01.1991 to 31.12.2004.

If the amount of arrears is added to my normal income it will far exceed the taxable exemption limit of Rs 1.85 lakh. Being an old man, I have no plans to invest the amount of arrears in any tax saving scheme of long-term duration.

In view of the above, I seek your advice for reducing my income tax liability for the Assessment year 2007-08.

— R.S. Sood, Chandigarh

A. You should seek a relief under section 89 of the Act in respect of arrears of salary etc; received by you. The said section provides that where an assessee is in receipt of a sum in the nature of salary being paid in arrears or in advance or is in receipt, in any financial year, of salary for more than 12 months due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, Assessing Officer shall, on a application made to him in this behalf grant such relief as may be prescribed. Rule 21AA of Income-tax Rules 1962 provides filing of Form No. 10E for seeking such relief from tax department. This form should be filed along with the return.

Tax liability

Q. I am a senior Punjab government officer. My income during financial year 2006-07 (Assessment year 2007-08) will be as under:

(a) Gross salary: Rs 4,31,066

Deductions:

GPF subscription: 60,012

GIS: 1,440

LIC: 5,645

Pension scheme: 10,000

Tuition fee: 7,920

HRA: 44,682

You are requested to calculate tax to be deposited during the Year 2006-07.

— Dr Ashwani Kumar

A. The computation sheet sent by you makes no mention about the deduction in respect of LIC premium and the tuition fee paid by you. The query also does not indicate whether the amount paid for the pension scheme is covered within the provisions of section 80CCC or 80CCD. If it is so covered, the amount of pension contribution should be within the overall limit of Rs 1 lakh provided for by section 80C of the Act. Presuming that you comply with the conditions specified in relevant provisions of the Income-tax Act 1961 (The Act) regarding the allowability of deduction of the L.I.C. premium, tuition fee as well as pension contribution, these three sums will also have to be deducted in addition to the deduction of Rs.61,452 allowed by your office. The total deduction thus allowable would be Rs 85,017 (61,452 + 5,645 + 10,000 + 7,920) against your total income of Rs.4,31,066.

The deduction in respect of house rent allowance under section 10(13A) of the Act read with Rule 2A of the Income-tax Rules 1962 is allowable to the extent of the following amount:

(a) the actual amount of such allowance received by the assessee in respect of the relevant period; or

(b) the amount by which the expenditure actually incurred by the assessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee in respect of the relevant period; or

(c) an amount equal to

(i) where such accommodation is situate at Mumbai, Kolkata, Delhi or Chennai, one-half of the amount of salary due to the assessee in respect of the relevant period; and

(ii) where such accommodation is situated at any other place, two-fifth of the amount of salary due to the assessee in respect of the relevant period.

Whichever is the least of (a), (b) and (c)

The details with regard to the payment of rent as well as the place where the accommodation has been taken on rent by you, are not available in the query. It is therefore not possible to compute such deduction. Further the tax payable in respect of your income cannot be computed in the absence of the aforesaid details.

II

Q. My annual income is 2,34,000 from my salary and my savings is approx. 70,000 (P.P.F., L.I.C.) etc.

I am also trading through share broker and giving brokerage charges.

My question is

1. What will be my tax liability if I am earning Rs 5,000 approx. from day trading monthly.

2. Is brokerage given to share broker is tax free or not.

— Amritpal Arya

A. It is presumed that you are carrying on the business of purchase and sale of shares and therefore the amount of Rs 5,000 approximately per month being earned by you would be taxable as income from business and profession carried on by you. After adding such income to your salary income and allowing deduction of Rs 70,000 toward savings, the taxable income would work out at Rs 2,24,000 on which a tax of Rs 20,196 including the education cess would be payable for the assessment year 2007-08 i.e. previous year ending 31st March 2007. The brokerage paid by you on sale of shares would be deductible from the gross consideration. The brokerage paid on purchase of shares would be taken as part of the acquisition cost of shares.

ULIP account

Q. I have opened one ULIP A/c in name of minor son and one PPF account in name of minor daughter. Now both are major. Kindly let me know that this money belongs to son and daughter or to me.

— Vikas Gupta, New Delhi

A. The amount deposited by you in the account of ULIP/PPF in the name of your minor son and minor daughter would belong to them.

Top

 





HOME PAGE | Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Opinions |
| Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi |
| Calendar | Weather | Archive | Subscribe | Suggestion | E-mail |