Bull run likely today
UPA’s economic agenda for 5 yrs
Wim Plast sets up unit at Baddi
Bull run likely today
Mumbai, May 17
Domestic brokerage firm Angel Broking CMD Dinesh Thakkar said, "...the UPA could form the (next) government without the Left (and it) will further soothe investors' nerves. The markets are expected to rally as fresh money from FIIs and those waiting on the sidelines on account of the political uncertainty, makes its way to Indian stock markets."
As it is now clear that the UPA would form the government again, and without the Left support this time, analysts said the Sensex could rise by 700-800 points on Monday, the first trading day after the announcement of the results.
After the 2004 elections, the markets plummeted over 800 points at the prospects of Left parties exerting influence over policy decisions of the UPA government.
Tomorrow's rally, if it takes place, would be just the opposite of what happened on bourses after the poll results were out five years ago.
"The verdict of the people is clear... The Left is left out. The UPA has a clearer mandate than they had during the last polls," Kejriwal Research and Investment Services head Arun Kejriwal said.
While most of the market experts expect a rally between 400 points and 700 points, some of them said the surge could be as high as 800-1,000 points.
ICICI Securities managing director and CEO Madhabi Puri Buch said India is likely to see a healthy capital market and robust flow of foreign funds once the new government takes charge at the Centre and presents the full budget.
Sensex had surged 300 points on Friday, the last trading session, to settle at 12,173.42 points. A rally of 500-700 points could take the benchmark closer to 13,000 on Monday.
Experts have also exuded confidence that the market would continue to trade on the higher trajectory in the coming week.
Sharekhan's Research head Gaurav Dua said it was clear that "people voted for a stable party and made it clear that they do not want to follow Leftist ideologies".
Markets will give a thumbs-up on Monday and open firm. A 100-150 point rally on the Nifty can be expected as investor sentiment would be high as a stable government comes to power, he added.
Angel Broking's Thakkar further said, "The election results have come as a positive surprise and are expected to go down well with the markets considering that markets like continuity of the government policies, mindsets and ideologies." — PTI
UPA’s economic agenda for 5 yrs
New Delhi, May 17
During the 14th Lok Sabha, Parliament passed 247 Bills. Although 40 Bills lapsed due to the dissolution of the Lok Sabha, 39 are still pending in the Rajya Sabha.
Though it is difficult to predict the urgency with which the government might bring up any of these Bills, but these Bills will definitely give a clear policy direction to the industry and to the society.
The new Bill on making a National Resettlement and Rehabilitation Policy will provide for benefits and compensation to people displaced by land acquisition purchases or any other involuntary displacement.
The government did bring through draft legislation on the issue but due to shortage of time it remained an unfinished agenda.
The Bill on pension reform, which was before Parliament, takes away the obligation to pay pensions from the government and shifts the responsibility of saving for old-age to the individual could not be passed because of opposition from key ally, even though the BJP had supported it when it was brought up in 2005.
The Insurance Laws (Amendment) Bill seeks to raise the foreign direct investment cap in the insurance sector from the existing 26 per cent to 49 per cent.
This will change the capital requirement for insurance companies and provide greater flexibility to the Insurance Regulatory and Development Authority (IRDA) to decide on investment guidelines.
The Bill also seeks to increase the Life Insurance Corporation’s paid-up capital to Rs 100 crore from Rs 5 crore.
This will ensure that the life insurer complies with IRDAs norms for minimum capital requirement of Rs 100 crore, bringing LIC on level-playing field with private insurers.
The government was seeking to replace the Companies Act of 1956, and had floated the Companies Bill.
The main object of the Act was to provide protection to investors, creditors and public at large and at the same time leaving management free to utilize its resources and energies for the optimum output.
Implementing the new income tax code to simplifying the law. Banking Regulation (Amendment) Bill, 2005, to make the voting rights of shareholders in private sector banks equal to their voting shares. Currently, voting rights of the shareholders are capped at 10 per cent, irrespective of their actual holding.
Passing an Act on the creation of futures market regulator, the Forwards Market commission and creation of a warehousing regulator.
Warehousing Development & Regulation Act (WDRA) scheduled for notification on March 1, 2009, was delayed because of uncertainty over appointment of the regulator.
Making the new foreign trade policy and reviewing guidelines of new foreign direct investment guidelines. Passing required laws to get Competition Commission functional.
Wim Plast sets up unit at Baddi
Chandigarh, May 17
Maharashtra-based company, Wim Plast Ltd., a part of the Cello Group, leader in plastic consumer and household products, has set up a plant with state-of-the-art technology at Baddi.
The fusion of technology plant has been imported from Italy. This type of plant is first in Asia and third in the world. The company manufactures wall panels (Cello bubble guard board) and false ceilings (Cello bubble guard ceilings).
The product is a monopoly product of the company as no other company manufactures the same in India.
These wall and false ceiling panels are manufactured by Wim Plast and marketed by Vista Plastech across the country.
Arunesh Agrawal, chairman-cum-managing director, Vista Plastech, while talking to The Tribune here today, said “these panels are extemely light in weight as compared to foam board and wood and are available in various colours.”
He further disclosed that these panels could be cut, creased, and welded ultrasonically, as per the requirement.
The panels are also resistant to most of the chemical agents and insect-proof
Agrawal said, “These panels, made from 100 per cent virgin poly propylene, are ideal for use in offices, hospitals, hotels, warehouses, malls, homes and industries. Cello bubble guard wall panels have various advantages over other materials like gypsum board as these are water-proof, termite-proof, fire resistant, economical, maintenance-free and easy to install.”
The CMD further informed that Wim Plast has so far invested Rs 20 crore in Baddi plant and provides employment to over 200 persons. The company is targeting a turnover of Rs 100 crore in the very first year of operations.
Vista Plastech has marketing offices in Mumbai, Chennai, Ghaziabad and Dehradun. They are in the process of appointing dealers and distributors throughout the country. Agrawal also did not rule out the possibility of opening company’s retail shops in future.
The company also makes wood and floor protectors, which can be used while renovating a house/office without damaging walls or floor of the premises. The wall panels are priced between Rs 24 and Rs 28 per sq ft.
Q. Can a lady give a gift to his son’s HUF? If yes, will the gifted amount be treated as income of son’s HUF or not? The amount of the gift is Rs 5
A. According to provisions of Section 56(2)(vi) of the Act, any sum of money, the aggregate value of which exceeds Rs 50,000, is received without consideration by an individual or a HUF, in the previous year from any person or persons on or after 01.04.2006, the whole of the aggregate value of such sum is chargeable to Income tax in the assessment of the recipient under the head “Income from other sources”.
The said section further provides that in case the amount is received from any of the relatives, the same shall not be treated as income of the recipient. The term relative has been defined as under by the aforesaid section:
As would be observed from above, any receipt from a relative even if it exceeds Rs 50,000 would not be exigible to tax. The section covers both individuals and HUFs. However, the definition of relatives as contained in the aforesaid section covers only relatives of individuals.
In case of HUF, it either means that exemption would be applicable to a relative of a Karta or that HUF cannot have relatives and all gifts received by HUF would be taxable. However, later interpretation does not fall in line with the intent of the main provisions. In view of the uncertainty of the provisions of law on the subject it will be better to avoid such a transaction.
Rebate on compassionate assistance
Q. In Haryana, after the death of a government employee compassionate assistance (equivalent to per month salary except house rent) is granted per month to the living spouse of the deceased government employee. I want to know whether this compassionate assistance is divisible among legal heirs on the pattern of family pension for the purpose of calculation of income tax as the spouse is already a government employee and is getting a salary of about Rs 3 lakh p.a. and he is also getting a compassionate assistance of about 2 lakh p.a. Also, kindly let me know whether there is any rebate in income tax. A. The complete facts in the query are lacking as the terms of compassionate assistance granted to the living spouse of the deceased government employee are not indicated. It is, therefore, not possible to give you a concrete reply.
Q. In Haryana, after the death of a government employee compassionate assistance (equivalent to per month salary except house rent) is granted per month to the living spouse of the deceased government employee.
I want to know whether this compassionate assistance is divisible among legal heirs on the pattern of family pension for the purpose of calculation of income tax as the spouse is already a government employee and is getting a salary of about Rs 3 lakh p.a. and he is also getting a compassionate assistance of about 2 lakh p.a. Also, kindly let me know whether there is any rebate in income tax.
A. The complete facts in the query are lacking as the terms of compassionate assistance granted to the living spouse of the deceased government employee are not indicated. It is, therefore, not possible to give you a concrete reply.
Q. Whether salary includes dearness allowance or not for the purpose of calculating taxable house rent allowance in term of Section 10(13A) of Income Tax Act in case of Central/Haryana Government Employee where Dearness Allowance counts for gratuity but does not count for pension. Reference of Section/ Rule/ Instruction if any in this regard may kindly be quoted.
A. According to provisions of Rule 2A of the Income Tax, Rules, 1962, specifying the limits for the exemption of the house rent allowance, salary shall have the meaning assigned to it in clause (h) to Rule 2 of Part (a) of the IVth Schedule to the Act.
According to the said Rule, salary includes dearness allowance, if the terms of employment so provide. You may examine terms of employment so as to ascertain the treatment of dearness allowance for computation of house rent allowance.
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