SPECIAL COVERAGE
CHANDIGARH

LUDHIANA

DELHI


THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

Now, show ID proof to swap credit/debit cards
New Delhi, July 26
Next time you flash your credit or debit card to make any payment, be ready to carry along a photo identity card as banks have asked the merchants to do so to check any fraud, especially for high-value purchases. With the growing usage of credit and debit cards, the instances of fraud related with them are also growing in the country. There are an estimated five crore credit cards and an average of about 2,000 frauds are reported every month. In addition, there are close to 30 crore debit cards.

ICICI to recover dues from pay
New Delhi: In their constant pursuit of recovering dues from credit card customers, banks are empowering themselves with a tool that allows them to ask employers to deduct the outstanding amount from the salary.


EARLIER STORIES



Tax Advice
Gift to spouse tax exempt
Q. Can a husband give gift to his wife and vice versa? Can one get tax rebate on contribution made to an LIC or pension fund when the beneficiary is minor/major daughter’s daughter or daughter’s son and or a married daughter or a son?

64 US banks bite dust in 7 months
New York, July 26
Seven more US banks have collapsed pushing the total number of failures to 64 this year or an average of nine entities every month. Reflecting the deteriorating financial situation, the bank collapses in 2009 is more than double the total of 25 such entities in 2008.

FIIs up ante on Ambani stocks
Mumbai, July 26
In the midst of a continuing legal battle over gas dispute between two Ambani groups, foreign investors seem to have got more confidence than the small individual investors of the country in the strength of the businesses run by the two industrialist brothers.

FinMin to finalise AI bailout package soon
New Delhi, July 26
The Finance Ministry would give a final shape to a bailout package for Air India over the next fortnight and present it before the second meeting of the high-level Committee of Secretaries (CoS) on August 29, official sources said today.

 

 





Top








 

Now, show ID proof to swap credit/debit cards

New Delhi, July 26
Next time you flash your credit or debit card to make any payment, be ready to carry along a photo identity card as banks have asked the merchants to do so to check any fraud, especially for high-value purchases.

With the growing usage of credit and debit cards, the instances of fraud related with them are also growing in the country. There are an estimated five crore credit cards and an average of about 2,000 frauds are reported every month. In addition, there are close to 30 crore debit cards.

To prevent the card frauds, which are mostly perpetuated by impersonation through stolen, lost and hacked cards, the RBI has already suggested a number of steps to be implemented by the banks.

On top of it, the banks are now asking the merchants to further verify the identity of the cardholders through authoritative photo identity proofs like PAN card, passport or voter ID cards.

The country's largest private sector bank, ICICI Bank, also the biggest credit card issuer in India, has communicated to its customers that "photo identity proof might be required at merchant outlets for high-value card transactions."

A number of other banks have also informed the customers as also the merchants about the additional identity verification mechanism to prevent the frauds.

ICICI Bank alone reported more than 8,000 cases of credit card fraud worth over Rs 11 crore to the RBI between April and December 2008. Besides, HSBC reported close to 2,500 cases of fraud worth about Rs 5 crore during the same, while thousands of such cases, resulting into losses of several crores of rupees, were together reported by players like American Express, Citibank, Standard Chartered Bank and Deutsche Bank. — PTI

Top

 

ICICI to recover dues from pay

New Delhi: In their constant pursuit of recovering dues from credit card customers, banks are empowering themselves with a tool that allows them to ask employers to deduct the outstanding amount from the salary.

Employees, who may have defaulted on payment, however, cannot object to this deduction of dues at source, according to the new clause introduced in the 'terms and conditions' by the country's largest private sector lender ICICI Bank and expected to be adopted by others as well. — PTI

Top

 

Tax Advice
Gift to spouse tax exempt
by S.C. Vasudeva

Q. Can a husband give gift to his wife and vice versa? Can one get tax rebate on contribution made to an LIC or pension fund when the beneficiary is minor/major daughter’s daughter or daughter’s son and or a married daughter or a son?

Bank deposits exceeding a period of five years or more are exempted or interest earned by such instruments within the ceiling of one lakh. Does it also include a RBI 8% taxable bonds-2004 and also post office MIS accounts where term is six years in end case?

— K Verma

A. Your queries are replied hereunder:

(i) A husband can gift any amount to his wife without any tax liability thereon. However, the income earned on the gifted amount would be clubbed with the income of the husband. A gift by wife to a husband is also exempt from tax but the income earned on the gifted amount would be clubbed with the income of the wife.

(ii) Section 80C covers the deduction for any amount paid by an individual to effect or to keep in force an insurance on his/her life, his/her spouse and any child of such individual. Such deduction is subject to a maximum amount of Rs 1,00,000 specified in the said section. The child may be major or minor. Therefore, a married daughter would also be covered in the aforesaid category. However, daughter’s daughter or daughter’s son would not be covered for the purposes of claiming deduction under Section 80C.

(iii) The deduction in respect of contribution to pension scheme of the Central government is allowed to an individual who has paid or deposited any amount in his account under the pension scheme notified by the Central government. The account has to be in the name of the contributor only.

(iv) The deduction under Section 80C is allowable in respect of long-term deposit for a fixed period of not less than five years with a scheduled bank in accordance with the Central government scheme notified in this regard. The interest on such deposits is not covered within the provisions of the aforesaid section.

(v) The amount paid toward the acquisition of 8% taxable bonds of the RBI (2004) is not covered within the provisions of the aforesaid section. However, five-year deposits under the Post Office Time Deposit Rules 1981 are covered for the purpose of deduction under the aforesaid section.

PPF account

Q. I am a senior citizen and filing IT return every year. I have a daughter and I have been depositing Rs 70,000 each every year in the PPF accounts of my two granddaughters without claiming any rebate under Section 80C. The PPF account is under the guardianship of my son-in-law, who is also income-tax payee. I feel that above is in accordance with existing provisions of the IT Act.

— JS Parthi

A. The gift to your granddaughters is not taxable under the provisions of Section 56 of the Income-tax Act, 1961 (the Act). However, such deposits of Rs 70,000 every year in the PPF account of your granddaughters would not have entitled you to claim the deduction under Section 80C, which, as per facts given in the query, you are not claiming.

Rate of depreciation

Q. I have a vehicle (TATA 407) that I use for transporting scrap items. I want to know the rate of depreciation on it.

— Sam

A. The facts in the query do not indicate whether the vehicle is registered as a commercial vehicle or as a motor car. In case it is registered as a motor car, the rate of depreciation for tax purposes would be 15%. In case the same is registered as a new commercial vehicle that was put to use before April 1, 2002, the applicable rate of depreciation would be 50%.

Top

 

64 US banks bite dust in 7 months

New York, July 26
Seven more US banks have collapsed pushing the total number of failures to 64 this year or an average of nine entities every month. Reflecting the deteriorating financial situation, the bank collapses in 2009 is more than double the total of 25 such entities in 2008.

So far this month, 19 banks have failed, with seven entities being shut down on July 2 and July 24, respectively.

Out of the seven banks which collapsed this Friday, six are subsidiaries of Security Bank Corporation, Georgia. As of March 31, 2009, the six banks had total assets of $2.8 billion and deposits to the tune of $2.4 billion, according to the Federal Deposit Insurance Corporation, which is often appointed as the caretaker of failed entities.

Further, the authorities shut down Waterford Village Bank that had assets worth $61.4 million and deposits of $58 million. The failure of these seven banks would cost the FDIC about $812.6 million. In June, the authorities closed nine banks. On February 13 and April 24, four banks each collapsed. — PTI

Top

 

FIIs up ante on Ambani stocks

Mumbai, July 26
In the midst of a continuing legal battle over gas dispute between two Ambani groups, foreign investors seem to have got more confidence than the small individual investors of the country in the strength of the businesses run by the two industrialist brothers.

In the first quarter of the current financial year, foreign institutional investors (FIIs) increased their shareholding in nearly all the listed companies of the two Ambani groups, while individual domestic investors cut down their exposure to these companies during the same period.

These companies include Reliance Industries and Reliance Petroleum Ltd from the Mukesh Ambani group as also Reliance Capital, Reliance Communications, Reliance Infra and Reliance Natural Resources Ltd (RNRL) from the Anil Ambani group.

Interestingly, the three-month period ended June 30, 2009, saw the Bombay High Court delivering its judgment in a legal battle between the two groups over supply of gas from elder brother Mukesh-led RIL to Anil group firm RNRL. — PTI

Top

 

FinMin to finalise AI bailout package soon

New Delhi, July 26
The Finance Ministry would give a final shape to a bailout package for Air India over the next fortnight and present it before the second meeting of the high-level Committee of Secretaries (CoS) on August 29, official sources said today.

At the first meeting on its financial restructuring yesterday, Air India had sought government's urgent help and urged for equity infusion of about Rs 2,500 crore and a soft loan of Rs 10,000 crore for five years.

While the government may make only a partial contribution, a major part of this package is likely to be through partial disinvestment of government equity or issuance of initial public offer, sources said.

Officials of the Finance and Civil Aviation Ministries would sit with those from Air India in the next 15 days to finalise the package proposals as discussed yesterday by the CoS, they said.

The government funding, either in the form of loan or equity, would be linked with aircraft deliveries.

Air India, which is estimated to suffer a loss of Rs 7,200 crore in 2008-09, has been overburdened by its working capital borrowings worth Rs 17,000 crore. — PTI

Top

 





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