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Reliance seeks clarity on SEZ cap
TVS plant goes on stream
Indonesian firm enters Valley
Market Scan |
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Tax Advice Section 89 deals with income over-assessment Q. I am a veterinary officer in animal husbandry department, Punjab. I took ex-India leave from August 4, 2005 to May 17, 2006, and received salary for the said period in October 2006.
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Reliance seeks clarity on SEZ cap
Mumbai, April 29 Commerce ministry had also written to the EGoM seeking clarity on the issue. An official of Reliance’s Mumbai SEZ said, “We plan to make a presentation before Mukherjee, explaining our stand.” The EGoM had recommended that there should be a cap of 5,000 hectares on the size of SEZs and that state and central governments should not intervene in any manner in land acquisition proceedings. Reliance has proposed a SEZ over 9,000 hectares in 45 villages of Raigad district. Asked about Maharashtra Chief Minister Vilasrao Deshmukh’s directives to stay land acquisition for the project, the official said, “As far as we are concerned, land acquisition is still going on.” Deshmukh’s directives came after Raigad district collector D S Zagde wrote to the state revenue secretary, seeking instructions from the government on land acquisitions for the SEZ. He pointed out that “if we do not complete the entire process, particularly declaration of our intention to acquire land by May 31, the whole process will be declared null and void.” On March 23, Deshmukh had told the state legislative council that state government would not initiate proceedings for acquisition of land. He later said even if the proceedings were in progress, the revenue department would not pass the final award for change of ownership of the land. Meanwhile, farmers in areas affected by the project, who stand to benefit from land acquisition rates (Rs 25 lakh per hectare for crop land) announced by Reliance, have started venting their ire against “certain political parties”. They feel that due to the hurdles in the way of the project, they may be deprived of a good value for their land, the official said.
— PTI |
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New Delhi, April 29 The company aims to upgrade the production capacity of four lakh motor cycles a year to six lakh per annum, a company statement said. “With the launch of this plant, TVS Motor company will have reduced cost of transportation of vehicles as this facility will cater to all the states in northern India, and parts of central India,” the statement said. The facility will also help the company to improve their delivery time to the vast dealer network already established in these areas and help the company to increase sales, the statement further added. — UNI
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Indonesian firm enters Valley
Jammu, April 29 “JAFAA, the first ever MNC to invest in the
valley, has assured to make the state self-sufficient in both dairy and poultry. Looking at the state’s potential in these sectors they have signed the MoU, for ensuring employment generation in the valley,” Tambroo group of industries CEO Nazir Tramboo said on phone from Srinagar. The MoU was signed yesterday by Tambroo and JAFAA CEO H.C Chinn.
Meanwhile, the Confederation of Indian Industry has welcomed the move. |
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Time right to book profits
by J.C. Anand Last week was packed with good news. The Reserve Bank of India (RBI) announced its monetary policy for 2007-08 with unchanged rates all along; it was welcomed by the industry, bankers and the stock market. Many major companies declared quarterly results (some combining these with their annual results), which were better than market expectations. During the first four trading days, Sensex was up by 334.42 points. But on the last working day (Friday) the market was down by 320 points. Overall, the Sensex closed at 13,908.58 points (Friday) against 13,928.33 points (Monday) with a loss of 19.75 points. This fall in Sensex on Friday was due to two reasons: with a sharp downtrend in the Asian markets and with the feeling that the market may not find some trigger for any bullish trend as larger number of major corporate sector companies had already announced their quarterly results. The RBI’s monetary policy has left all rates unchanged, reserve repo rate and repo rate unchanged at 6 per cent and 7.7 per cent, respectively. Cash reserve ratio for scheduled banks also stands at 6.8 per cent with effect from April 28. The RBI has forecast the economic growth at 8.5 per cent (lower than 8.5 - 9 per cent for 2006-07). It has also reduced its inflation rates estimate from 5 per cent to 4.5 per cent for the medium term. Ceiling on overseas investments by mutual funds has been raised from $3 billion to $4 billion. Indian companies’ limit for portfolio investments in listed overseas companies has been enhanced to 35 per cent of network from 25 per cent. The corporate results have been impressive. Reliance Industries’ annual results indicate a 20 per cent growth in net profit of Rs 10,908 crore from Rs 9,069 crore the previous year. Net sales are higher by 30 per cent. ABB’s quarterly results net profit is higher by 66.86 per cent at Rs 8,663.31 lakhs as against Rs 5,130.33 lakh during the corresponding period last year. Net sales are higher by 63 per cent. The order book is up by 26 per cent. Bharti Airtel’s net profit is up by 98 per cent for the 4th quarter ending March 31, 2007, over the same quarter last year. Ranbaxy’s quarterly results indicate that the profit is higher by 79 per cent. Glaxo Pharma’s first quarter net profit is up by 9 pr cent. Crisil’s net profit for the first quarter is up by 103 per cent. One of the few companies which has disappointed is Cipla which reported 34 per cent dip in net profit for the quarter ended March 31, 2007. Sesa Goa has been acquired by Vedanta, a UK based company owned by an Indian trader in metals. Vedanta has paid $ 981 million to acquire 51 per cent stake in this company. Vedanta has also to come out with an open offer of Rs 2,036 per share for purchasing an additional stake in Sesa Goa, GTL has also announced that the company will buy back its shares at Rs 300 per share after it is approved by the shareholder. There is likely to be some good news regarding Gujarat Alkalis scrip this week. Shareholders holding the shares of Sesa Goa, GTL, DIC, Gujarat Alkalis should hold on to these scrips. The market is likely to move within a narrow range or move down this week as not many major companies have now to announce their quarterly or annual results. The first quarter results that would be announced in July are likely to be discouraging. It is time to book profit in companies, which have bad management or weak prospects. One should, however, hold on to companies like Reliance Industries, Larsen and Toubro, Grasim, ABB, Siemens, Reliance Communication, Ranbaxy, Wockhardt, Areva T & D etc.
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Tax Advice by S.C. Vasudeva Q. I am a veterinary officer in animal husbandry department, Punjab. I took ex-India leave from August 4, 2005 to May 17, 2006, and received salary for the said period in October 2006. Can I give a revised income-tax statement to my drawing and disbursing officer and file a revised tax return for the financial year 2005-06 by adding the salary from August 4, 2005 to February 28, 2006 in that year’s income? — Rajinder Pal Singh, Lohian Khas A. You should seek relief under Section 89 of the Act in the assessment year 2007-08. Section 89 provides that where an assessee is in receipt of a sum in nature of salary, being paid in arrears or in advance due to which his total income is assessed at a higher rate than that at which it would otherwise have been assessed, the assessing officer shall, on an application made to him in this behalf, grant such relief as may be prescribed. Rule 21A of the Income-tax Rules, 1962, provides for giving relief in the aforesaid cases. Further the tax at source in respect of the arrears of salary from August 4, 2005 to May 17, 2006 must have been deducted in October 2006, i.e. at the time of making the payment. The relief under section 89 of the Act would enable you to avail the benefit of such tax deducted at source. Demat of shares
Q. I purchased 200 shares of Unitech for Rs 9,000 in March 2000. I have no proof of purchase though I have a photocopy of share certificates, which I got transferred in my name at that time. This year, I got these shares demat and sold them for 16 lakh. Kindly tell me the tax provision and papers to be enclosed with the return. — Meera Gupta, New Delhi A. Long Term capital gain earned on the sale of your shares would be exempt from tax in case (a) it is in respect of equity shares held by you, (b) the transaction of such sale is entered into after Chapter VII of the Finance (No. 2) Act 2004 came into force, and (c) the transaction is chargeable to securities transaction tax under the said chapter. If you satisfy the above conditions, you can declare that the said income is exempt from tax. In such a case, you should enclose, with the IT return, the sale bill of the broker which would indicate the payment of securities transaction tax as well as a copy of the share certificate showing endorsement in your name in March 2000. Senior citizen
Q. I am going to be 65 soon. Please advise whether I am entitled for senior citizen exemption of Rs 1,85,000 for 2007-08. — Madan Lal Gupta, Malout A.
Yes, you will be considered a senior citizen under the Income-tax Act 1961 and would be entitled for the exempted slab of Rs 1,85,000. Include
interest
Q. I am a central govt pensioner. My total earnings during financial year 2006-07 are: Pension: 84,000 Med Allowances: 7,700 Interest Income M I S: 77,400 IDBI Bonds: 5,000 NSC 10,000 Bank savings: 18,000 Total Income: 2,02,100 (i) After completing 65 years of age, will I be considered a senior citizen for the assessment year 2007-08? What will be my tax liability? (ii) Is the interest earned on MIS, tax saving bonds, NSCs and s/bank etc considered income? If so, can it be computed in rebatement under 80G? (iii) Whether the total amount or only the interest earned in a particular year (on maturity) in case of MIS, bonds, NSCs, is to be included in the income during that year? — Baldev Raj, Chandigarh A.
(i) You will be considered a senior citizen for the assessment year 2007-08 for the purposes of taxability. The tax on an income of Rs 2,02,100 would be Rs 3,488, including the education cess thereon. ( ii) Interest earned on MIS, tax saving bonds, NSCs and savings accounts is taxable. Interest on NSCs, as accrued for the year, can be considered for claiming deduction under section 80C of the Act. (iii) It would be in your interest to include the interest earned on various schemes on accrual basis. The interest received on maturity may lead to an abnormal increase in your income resulting in a higher tax. Refund of amount
Q. I am a senior citizen. I submitted my IT return for the assessment year 2006-07 in July 2006 but did not deduct the amount of Rs 1,85,000, which is exempt from income tax of a senior citizen. I, however, deducted the amount of accrued interest on NSCs, TDS, and the advance tax paid by me. Since I did not deduct the amount from my total income, I have deposited excess amount as income tax under self-assessment. I have submitted the TDS certificates, bank challans for advance tax and self-assessment tax paid by me along with the IT return. Kindly tell me the procedure and time limit for claiming the refund of the excess amount. — A K Katyal, Mani Majra A. The facts given by you are not very clear. It is presumed that tax was calculated by taking the exemption limit of Rs 1 lakh, which is applicable to a person who is not a senior citizen, and the tax has been paid on the basis of such computation. If you have made a claim in the return as to your senior citizen status, the assessing officer is bound to grant refund of the excess amount paid by you together with the interest on the excess payment. |
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