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ICICI Bank to take over BoR 
Share swap ratio: 25 ICICI shares for 118 BoR shares 
New Delhi, May 23
In a major acquisition deal, ICICI Bank today announced merger of Bank of Rajasthan (BoR) with it through share-swap in a non-cash deal that values the BoR at about Rs 3,000 crore.

IDR Issue
StanChart fixes price band 

New Delhi, May 23
Global banking major Standard Chartered today announced a price band of Rs 100-115 a piece for its Indian Depository Receipts (IDRs), a move that would help the UK-based lender raise up to Rs 2,760 crore.


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Low fresh credit to beneficiaries of farm-debt waiver 
Chandigarh, May 23
The UPA may have returned to power on the success of the Rs 72,000-crore Agriculture Debt Waiver and Debt Relief Scheme (ADWDRS). But post the success of this scheme, the government has been unable to ensure fresh credit to farmers, especially those whose debts were written off under the ADWDRS.

Godrej to buy Issue Group
New Delhi, May 23
Godrej Consumer Products today said it will acquire Latin America-based Issue Group, a market leader in hair colours in several counties in the region.

Tax Advice

  • Return can be revised within a year

  • Interest on CPF

  • IT refund

  • Tax liability





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ICICI Bank to take over BoR 
Share swap ratio: 25 ICICI shares for 118 BoR shares 

New Delhi, May 23
In a major acquisition deal, ICICI Bank today announced merger of Bank of Rajasthan (BoR) with it through share-swap in a non-cash deal that values the BoR at about Rs 3,000 crore.

After the approval of the deal by the boards of the two banks, ICICI Bank managing director and CEO Chanda Kochhar told PTI, "It is a win-win situation for shareholders. Just by dilution of three per cent of our equity, we will get Bank of Rajasthan and it will expand our network by one-fourth." Announcing the deal, she said the merger would be through offering 25 shares of ICICI for every 118 shares of BoR but its promoters Tayal family which hitherto have over 50 per cent stake would not get a board seat in the amalgamated entity.

"Present ICICI board would continue as it is," she said adding that the deal works out to about Rs 3,000 crore but "there is no cash outgo." It may be recalled that Bank of Rajasthan share prices nearly doubled in the last four trading sessions after the two lenders agreed in principle for the merger.

She said shareholders' approval for the deal would be obtained at the Extraordinary General Meeting on June 21.

"After this, we will move the Reserve Bank for its approval," she said adding that "as per our legal advice we do not need to go to the government for the approval of the Foreign Investment Promotion Board."

When contacted BoR's dominant shareholder Pravin Tayal, who was asked by RBI to dilute family's over 55 per cent equity to about 10 per cent, said "no decision" has been taken on his representation in ICICI after the merger.

Tayal, who had yesterday sought one ICICI share for every three held by BoR shareholders, said "I respect the amalgamation scheme decided by the board." On the issue of employees of BoR, Kochhar said "We will be fair. We have always been fair. We have the experience of two earlier mergers and have not retrenched anyone." The last acquisition by ICICI was that of a regional lender Sangli Bank.

The BoR has 463 branches across the country and the amalgamation would push up the number of branches of ICICI Bank to about 2,500. Post-merger, the total business of ICICI Bank will cross Rs 4 lakh crore. PTI 

l Non-cash deal

l BoR valued at Rs 3,000 cr

l No board berth for Tayals

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IDR Issue
StanChart fixes price band 

New Delhi, May 23
Global banking major Standard Chartered today announced a price band of Rs 100-115 a piece for its Indian Depository Receipts (IDRs), a move that would help the UK-based lender raise up to Rs 2,760 crore.

The issue, which will be the first-of-its-kind in the country, will help the UK bank raise about Rs 2,760 crore at the upper price band, while on the lower side it would be able to raise Rs 2,400 crore.

The issue of StanChart Bank, comprising 24 crore IDRs, will open for public subscription on May 25 and close on May 28, following which the final issue price per IDR will be set, Standard Chartered Plc said.

IDRs are derivative instruments that derive their value from the shares deposited with custodians. The foreign company will deposit shares with a custodian, who will issue depository receipts based on these shares.

Retail investors whose bid amount does not exceed Rs 1,00,000, will benefit from a further 5 per cent discount on the final issue price.

Allotment of the IDRs is scheduled to be completed by June 7, 2010, with listing on the Bombay Stock Exchange and the National Stock Exchange shortly thereafter, it said. PTI 

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Low fresh credit to beneficiaries of farm-debt waiver 
Ruchika M. Khanna
Tribune News Service

Chandigarh, May 23
The UPA may have returned to power on the success of the Rs 72,000-crore Agriculture Debt Waiver and Debt Relief Scheme (ADWDRS). But post the success of this scheme, the government has been unable to ensure fresh credit to farmers, especially those whose debts were written off under the ADWDRS.

The situation is more alarming in the food bowl of the country (Punjab and Haryana), where banks seem to be overlooking the beneficiaries of this scheme.

Though public sector banks, regional rural banks and cooperative banks have extended (though less in number) credit to farmers, private banks in Haryana and cooperative banks in Punjab have failed to extend credit to any beneficiary of the ADWDRS.

According to information available with The Tribune, no private bank in Haryana has provided fresh loans to farmers who benefited under the scheme and are now eligible for fresh loans. In Punjab, cooperative banks, too, have failed to come to the aid of these farmers and have provided loans to just 13 per cent of these farmers, and given fresh loans to the extent of 9 per cent of the amount of waiver and relief.

These banks say most of the farmers under this scheme are chronic defaulters and they had stopped making transactions with Primary Agriculture Credit Societies (PACS). They, however, reason that these farmers may have now shifted to other banks for availing fresh credit, but they are not denying fresh loans to the farmers.

Bankers say though the amount of loan waived in the two states is a small percentage of the loan waived across the country, banks in Punjab have so far provided credit amounting to Rs 467.82 crore (just 45 per cent of the total waiver and relief provided), and only 18 per cent of these beneficiary farmers (under ADWDRS) in the state have been provided loans. In Haryana, loans worth Rs 923.67 crore (49 per cent of total waiver and relief amount) have been provided to 26 per cent of the total beneficiary farmers.

The issue came up for a debate during the State Level Bankers Committee meeting (SLBC) for Punjab and Haryana held here earlier this week. Taking a serious note of the poor credit outflow to these beneficiaries, SLBC chairman and CMD of Punjab National Bank KR Kamath has asked lead banks in all districts of the two states to take up a sample study at some places to ascertain the reasons for poor credit offtake to these farmers and submit report during the next meeting of the SLBC. The study will also determine if loans are being disbursed to only a few selected farmers.

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Godrej to buy Issue Group

New Delhi, May 23
Godrej Consumer Products today said it will acquire Latin America-based Issue Group, a market leader in hair colours in several counties in the region.

Godrej Consumer Products Ltd (GCPL) has entered into "an agreement to acquire a 100 per cent stake in Laboratoria Cuenca, Consell SA, Issue Uruguay and Issue Brazil (collectively referred to as 'Issue Group')," the FMCG major said in a statement.

The acquisition provides a self-sustaining platform for GCPL's ambitions in the hair care and household insecticides segments in Latin America, the Indian firm said.

"The Issue Group provides us the perfect platform for establishing a strong presence in the fast-growing hair colour markets in Latin America," GCPL chairman Adi Godrej said. PTI

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Tax Advice
by SC Vasudeva
Return can be revised within a year 

Q. Kindly refer to your tax advice in The Tribune of 01.02.2010. I have a honour to submit whether splitting of year-wise arrears of pension can be done to get relief in the tax deduction.

Whether year-wise revised income tax returns can be filed for the year 2006-2009.

Any other way out to claim the tax relief on the arrears of previous year and a copy of the requisite form may please be sent.

S.C. Kapila

A. Your queries are replied hereunder:

(i) A return of income in respect of an assessment year can be revised within one year of the end of the said assessment year (AY). For example, a return filed for the assessment year 2009-10 (financial year ending 31st March 2009) can be revised by 31st March 2011.

(ii) You can ascertain on the aforesaid basis whether you would be able to revise your tax returns for the years 2006-09.

(iii) It would be advisable to claim relief under Section 89 of the Act. Such a relief could have been claimed by filing the requisite form with the employer also. In case it has not been so claimed, the claim can also be made with the Assessing Officer. The claim can be made while filing the return of income for the assessment year in which such arrears have been included. Form 10E has to be filed for claiming such relief.

Interest on CPF

Q. My employer, Food Corporation of India, directed me to include the interest amounting to Rs 26,582 accrued on CPF after date of retirement in my other income from income tax purpose. Please clarify if the interest accrued on CPF from date of retirement to date of final payment is taxable.

R.S. Saini

A. Interest accrued on Contributed Provident Fund Account if the same is not in excess of 9.5% per annum is exempt from tax. The facts in the query do not indicate the circumstances under which your employer had asked you to include the amount of Rs 26,582 being interest accrued on Contributed Provident Fund after the date of retirement. Please provide complete facts of the case so that your query can be replied.

IT refund

Q. I submitted my income tax return for the year 2002-03 (first time) in Saral form attaching with Form 16A issued by the Postmaster __ showing the deduction of TDS at source. The column in the Saral Form claiming refund of TDS remained omitted, being - misunderstanding that refund will automatically be issued. Dealing Asstt. of I.T.O. Hisar has not given me satisfactory reply. Can I take up the matter now? If so, to whom I should address. Refund has not been issued at all.

2. A letter regarding deduction of TDS from the amount of commission earned by the SAS Agent / MPBVYA (Post Office) was issued by the Income-tax Department some time past in the letter No. F1/15/2000 NS-II dated 24.09.2002. the letter in question was received by the Postmatster Hisar on 25.10.2003 too late, as it remained dumped in some place. The Postmaster, Hisar, got deposited from me on 22.06.2004 a sum of Rs 17,444 being the amount of TDS for the period 6/2001 - 3/2002 and issued Form 16A to me. I attached the said 16A Form with the return for the year 2004-05 for refund of the said amount. But the I.T.O., Hisar has refused to oblige me and has returned the said Form 16A without any action.

Similarly a sum of Rs 8,123 being TDS has not been recovered and deposited from me for the period 4/02 to 10/02 on 09.01.2010.

Kindly guide me what I should do for the refund of amount of TDS so recovered as I am a senior citizen and no income tax become due. The return for the period 4/01 to 3/02 has not been submitted while the return to the period 01.04.2002 to 31.03.2003 has already been submitted.

Ram Chander

A. (i) The assessment for the assessment year 2002-03 has become time barred and the claim for refund of tax not having been made in the tax return, it may be difficult for you to obtain the tax refund at this stage. However, you can try your luck by making an application to the Central Board of Direct Taxes for intervening in the matter.

(ii) Section 199 of the Income-tax Act 1961 (the Act) applicable for the assessment year 2003-04 required that credit shall be given to a taxpayer for the amount deducted on the production of the certificate in the assessment made under the Act for the assessment year for which such income is assessable. The facts given in the query do not indicate this aspect of the matter. In case the commission income had been assessed for an earlier assessment year and the certificate in respect thereof is furnished later along with the return for the later assessment year, the credit for tax or refund of such tax would not be available in the year in which such certificate has been attached with the return. If the facts of your case correspond to what is stated hereinabove, you will have to approach the Central Board of Direct Taxes to remove difficulty which is experienced by you for obtaining the refund of tax for which certificate has been furnished late by the Post Office.

Tax liability

Q. I am a Railway pensioner. My gross salary (including all interest etc.) for the financial year 2009-10 comes out to be Rs 3,54,779

(i) I have invested Rs 32,356 in LIC premium.

(ii) I had to undergo heart bypass surgery in January 2010 in SPS Apollo Hospital, Ludhiana. The expenditure on pre-operation testing was Rs 11,000 and on actual operation was Rs 1,31,500. All receipts given by the hospital.

(iii) No medical expense is remittable to me from the Railway, being pensioner. Neither I have any health insurance cover.

Kindly advise me on my tax liability for the financial year 2009-10.

Atma Singh

A. Your total income on the basis of the figures given in the query works out at Rs 3,22,423. The tax thereon (after giving deduction for the LIC premium paid by you) would work out at Rs 19,038. The calculations are based on the basis of the presumption that you are not a senior citizen. No deduction is allowable for the expenditure incurred by you for the heart bypass surgery.

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