Gold zooms to Rs 23,175
Oil PSUs to lose Rs
1.8 lakh cr on fuel sales
New Delhi, April 30
The yellow metal spurted by Rs 655 to all-time high of Rs 23,175 per 10 grams as the metal in international markets climbed to a record high of $1,570.60 an ounce in day-to-day trading.
Hectic buying by stockists and retail customers ahead of 'Akshya Tritya' festival, a traditional day for buying gold further bolstered the market sentiment.
Silver, however, lacked necessary follow-up support on reduced offtake at existing higher levels and shed Rs 500 to Rs 71,500 per kg.
Market analysts said the recent surge in gold prices in the domestic markets, driven by a firming global trend on bets that the dollar will extend a slump, boosted the demand of the metal as a store of value.
They added that the upsurge was speculative in nature and scattered small buying for the coming festival and marriage season supported the market trend.
On the domestic front, gold of 99.9 and 99.5 per cent purity rose by Rs 655 each to a record high of Rs 23,175 and Rs 23,055 per 10 grams, respectively.
Sovereign followed suit and rose by Rs 100 to a fresh high of Rs 18,500 per piece of eight gram.
On the other hand, the white metal attracted profit-taking by dealers at existing higher levels and recorded a moderate loss of Rs 500 to Rs 71,500 per kg, while weekly-based delivery fell by Rs 570 to Rs 70,600 per kg.
Similarly, silver coins lost Rs 500 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces. — PTI
Oil PSUs to lose Rs
1.8 lakh cr on fuel sales
New Delhi, April 30 Indian Oil, Bharat Petroleum and Hindustan Petroleum will "at current international crude oil prices lose Rs 180,208 crore in revenues on selling diesel, domestic LPG and kerosene below their imported cost in 2011-12 fiscal", an industry official said here. The revenue loss, termed as under-recovery by oil firms, will be the highest ever, even more than what they lost in 2008-09 when crude touched a record high of $147 a barrel. The three oil firms now lose a record Rs 18.19 per litre on diesel, Rs 29.69 a litre on kerosene and Rs 329.73 per 14.2 kg domestic LPG cylinder. In addition, they lose about Rs 7.50 per litre on petrol, whose rates have not moved in tandem with the imported cost despite its pricing being freed from the government control in June last year. "Losses on petrol are not included in the under-recovery figures for 2011-12 as it is a decontrolled commodity," the official said. The basket of crude oil India buys had averaged $83.57 per barrel in 2008-09 and calculations for the current fiscal have been done at the prevailing rates of around $110 a barrel. — PTI
New Delhi, April 30
Indian Oil, Bharat Petroleum and Hindustan Petroleum will "at current international crude oil prices lose Rs 180,208 crore in revenues on selling diesel, domestic LPG and kerosene below their imported cost in 2011-12 fiscal", an industry official said here.
The revenue loss, termed as under-recovery by oil firms, will be the highest ever, even more than what they lost in 2008-09 when crude touched a record high of $147 a barrel. The three oil firms now lose a record Rs 18.19 per litre on diesel, Rs 29.69 a litre on kerosene and Rs 329.73 per 14.2 kg domestic LPG cylinder.
In addition, they lose about Rs 7.50 per litre on petrol, whose rates have not moved in tandem with the imported cost despite its pricing being freed from the government control in June last year.
"Losses on petrol are not included in the under-recovery figures for 2011-12 as it is a decontrolled commodity," the official said.
The basket of crude oil India buys had averaged $83.57 per barrel in 2008-09 and calculations for the current fiscal have been done at the prevailing rates of around $110 a barrel. — PTI
by AN Shanbhag
Q. I migrated to the USA on 3rd July, 2009, and got a Green Card. I visited India between 9th February 2010 and 30th April 2010. I presume I shall be considered an NRI for FY 09-10. What about the next year? How many days can I come to India for if I wish to maintain my NRI status?
I have pension and other income in India and have savings bank accounts in India. Is it all right to keep these accounts and for how long can I keep these? Do I have to close these accounts and then start new NRO/NRE account? Can I have more than one NRO account?
— Charanjit Chhatwal
A. Yes, you will be an NRI for FY 2009-10. And if you are in India for less than 182 days in FY 10-11, you will be an NRI for that year too and so on. An NRI should not continue his or her erstwhile resident savings bank accounts. These accounts have to be either closed or redesignated as NRO. You may also start a fresh NRO or NRE account. And lastly, you may open as many NRE or NRO accounts as you desire with any bank that offers this facility. There is no restriction on this.
Ownership of property
Q. I purchased a property in 2005 by executing sale deed. But the physical possession was taken in July, 2008. Which year (2005 or 2008) would be considered for long-term capital gain? Please also comment regarding indexation benefit.
— Deepali Batra
A. Ownership of the property is to be taken from the date of possession. So in our opinion, for the purposes of long-term capital gain, the property has to be held for a period of three years from July 2008. The indexation will also be applicable from that date.
Q. I got jewellery as gift from my parents, parents in- law and other relatives at the time of my wedding 47 years ago. I now want to sell it and put it in a fixed deposit to get regular income. Will this sale attract any income tax?
— Hardev Kaur
A. Yes, long-term capital gains tax will have to be paid. For this purpose, you will have to get this jewellery valued from a chartered valuer for its Fair Market Value as on 1.4.81. You can use this value for working out indexed cost of acquisition. Hope this value does not cross the threshold level of Rs 15 lakh. If it does, the Department has a right to demand wealth tax for all these years.
Investment and ITR form
Q. I have a query regarding stock investing and ITR form.
1. If I invest in 10 different companies listed in any stock exchange in India with different amounts in each company through secondary market in a FY so that investment in one company does not exceed Rs 1 lakh but overall amount invested in 10 companies exceeds Rs 1 lakh then do I need to mention it in the ITR.
2. If I receive dividend but no short-term or long- term capital gains in selling shares or MFs in a financial year and have only income from salary or bank interests then which ITR form needs to be filled?
A. 1. The Annual Information Returns (AIR) schedule in the ITR forms requires the disclosure of i) Cash deposits aggregating to Rs 10 lakh or more in the FY in an SB account. ii) Credit card payments aggregating to Rs 2 lakh or more in the FY. iii) MF investments of Rs 2 lakh or more in a single transaction iv) Investment of Rs 5 lakh or more in bonds or debentures v) Investment of Rs 1 lakh or more in shares issued by a company vi) Purchase or sale of immovable property valued at Rs 30 lakh or more and vii) Investment in RBI Bonds of Rs 5 lakh or more in the FY.
Item (v) above refers to investment in IPOs or rights issues. It does not apply to secondary market transactions. So in the case specified by you, no AIR disclosure would be required.
Incidentally, in the fresh ITR forms issued for tax filing for FY 10-11, we do not find the AIR schedule. Perhaps this requirement has been dropped for this year. If there is any change in this position, the same would be notified through this column.
2. You have to use ITR-2 though it states that the Form is meant for individuals and HUFs not having income from business or profession and you do not have any such income. The details of exempt dividend received by you can be filed only through ITR-2.
The authors may be contacted at firstname.lastname@example.org
by KR Wadhwaney
The Indian civil aviation has once again plunged into politician-inspired vicious whirlpool of mess and uncertainty with harassed and harried passengers being reduced to nobody's baby.
The poor and neglected passengers, including disabled ones, have to beg for seats even after shelling out an additional amount of Rs 2,000 to Rs 4,000.
This shocking and abnormal situation has arisen at the behest of some politicians, who are currently not directly linked with civil aviation. They are quietly chuckling at the development, while the current politicians in the hot seat are too weak to sort out the mess.
The situation is fast developing into a pre-designed saga of the national carrier sitting in hangar while private operators will be gracing the Indian skies in every nook and corner.
There may be no serious objection to private operators flying on Indian skies. But in the open sky policy, with governance non-existent, all hell will let loose in determining the fare. The private operators will charge what they please and the innocent passengers will be the sufferers.
The recent Air India pilots' flash strike has been a handiwork of some politicians, whose hidden agenda has been to create a situation so that the national carrier gets into a 'liquidation mode' and private operators get into driver's seat in Indian skies.
Despite the high court order, a large section of pilots have defied the whip and struck the strike throwing operations into disarray. The leaders of the pilots faction say that they will continue with the strike until their reasonable demands are conceded by the national carrier's bosses.
De-recognising the Indian Commercial Pilots Union (ICPU), cancellation of flights and suspending half-a-dozen pilots will not solve the problem.
What may help sort out the mess is that the authorities must study the situation with an open mind.
Air India and Indian Airlines were two arms of the national carrier. At the time of merger, the employees, senior, junior and even pilots, were assured that they would be treated equally. But the merger came about, the one arm (Indian Airlines) was amputated, while all eggs were thrown in another arm (Air India). This was highly unjustified and, despite repeated protests, the authorities failed to make a sincere endeavour to solve the problem.
The national carrier's problems are the same that are obtaining in the Directorate-General of Civil Aviation. A section of 'small fish' is being penalised, while the 'bosses', who were wholly aware of the wrongdoings and happenings in the pilots' scam, are staying unscathed.