FINANCIAL EDUCATION

Sunday, July 20, 2008

Golden Quotes

People laugh because I am different
and I laugh because they are all the same...
That's called ATTITUDE

CA PASS OUT PARTY OF JAB WE MET CA (CHANDIGARH )

DATE :-20TH JULY 2008

VENUE:-THE PARTY CLUB,SCO 215-217,SEC 34,CHANDIGARH

TIMINGS: 10A.M TO 3 P.M

CA’S Who enjoyed the CA pass out party of JAB WE MET CA on 20th july,08 …….

1. MANOJ GARG
2. SOURABH SONI
3. MOHAN
4. SANDEEP SYAL
5. DEEPAK
6. ANKIT GOYAL
7. SOPHIA KHATTAR
8. GURVINDER SINGH SAINI
9. AMAN PREET KAUR
10. RICHA SAINI
11. VIVEK SAHNI
12. ABHISHEK
13. SATBIR
14. ASHUTOSH
15. VIKAS SHARMA
16. DEEKSHA
17. POOJA
18. MANEET KAUR
19. RIDHIMA
20. SUCHETA
21. AKHIL GUPTA
22. BHUVAN
23. RAGHAV
24. ABHASH
25. HEMANT
26. KRISHAN
27. NARESH
28. NIPPUN ARORA
29. PARAS GUPTA
30. RUPESH
31. SUKHWINDER SINGH
32. VIKRAM
33. VIKAS CHANDEL
34. GAURAV MISHRA
35. TAMANNA
36. RAJIV AGGARWAL
37. MANPREET SINGH
38. VIKAS ATTRI
39. SACHIN MEHTA
40. MUNISH SHARMA
41. VARUN SOOD
42. VIKAS KAPAHI
43. AKANKSHU SINGHAL
NEXT PARTY OF JAB WE MET CA IS GOING TO BE ORGANISED SOON……………..

Saturday, July 19, 2008

Cash to get scarce in coming days

19 Jul, 2008, 0107 hrs IST, ET Bureau
MUMBAI: Cash in the money market is likely to get even more scarce in the coming days. Banks will now have to place an additional part of deposits with the RBI starting July 19, when the revised norms on cash reserve requirements come into force. This is at a time, when banks have been borrowing close to Rs 30,000 crore from the Reserve Bank of India (RBI) on a daily basis. The RBI hiked the cash reserve ratio (proportion of deposits which banks have to park with RBI as cash) to 8.75% in June, besides making it costlier for banks to borrow from its daily cash window. As a result, funds worth almost Rs 16,000 crore would be seen moving out of the banking system. Starting next week, banks have to park Rs 8.75 for every Rs 100 worth of deposit they gather. That apart, banks have to pay 8.5% to the central bank as interest on their daily borrowings from RBI’s cash window, thus making it costlier for them to manage their cash flows. While the CRR hike itself will take out Rs 8,000 crore from the system next week, RBI would also be issuing bonds worth Rs 10,000 crore, bring cash conditions under further pressure. Treasury managers foresee banks to be borrowing up to Rs 45,000 crore from the central bank at the daily repo window next week while borrowing rates in the inter-bank call money market are expected to rise to 9.5%. IDBI Gilts head of treasury SS Raghavan said, "While all signals seem to be hinting at another 50-bps hike in the cash reserve requirements in the forthcoming policy review, there will be some respite, with Rs 30,000 crore of the loan waiver amount reaching banks, following the policy." A good stock of treasury bills issued in April is maturing in July. It was anticipated that fund proceeds of these bills would ease the cash crunch in the banking system. A senior trader with a leading bond house pointed out had most treasury officials were hoping that these funds would provide some respite to the liquidity crisis. However, the central bank simultaneously announced a series of bonds sold through the market stabilisation route to essentially suck out these funds. The banking system has been experiencing tight cash conditions since the past one month. On one hand, inflows in the foreign exchange market have been dwindling off, at a time when there were fund outflows owing to corporate tax payments in mid-June.

Norms for reducing carbon emissions soon

Publication:Economic Times Delhi;
Date:Jul 19, 2008;
Section:Corporate & Economy;
Page Number:15
NEW DELHI: The government is working on an exhaustive set of norms, which would include tax concessions for the industry, to reduce carbon emissions. The ministry of science & technology would submit a report on norms for reduction of carbon emissions to PM’s Council on Climate Change in November this year. “The norms would include tax concessions and legislative framework to motivate India Inc to effectively undertake carbon emissions’ reduction programme,” said minister of science and technology Kapil Sibal.

ECB norms may be eased for core companies

ECB norms may be eased for core cos

19 Jul, 2008, 1752 hrs IST, ET Bureau

NEW DELHI: The government is likely to make it easier for infrastructure companies to borrow from abroad – a key requirement for sustaining the economy’s rapid expansion. The high-level coordination committee on external commercial borrowings (ECBs) is expected to meet soon and the focus would be on enabling infrastructure companies to access funds cheaper and faster. Allowing infrastructure companies to bring home more funds may also help in containing inflation if its impact on liquidity is strictly checked, finance ministry officials feel. A stronger rupee may help the government in reducing the import bill as higher dollar inflows can enhance rupee’s purchasing power. At 11.91%, wholesale prices-based inflation is hovering close to 12%. “In a situation like this, encouraging inflows would help ease inflation. Infrastructure companies should not be deprived of long-term funds. Easing of ECB norms should happen logically. Sooner or later, the high-level co-ordination committee on ECB would meet,” a government source said. The forthcoming meeting of the panel, which comprises officials from the finance ministry, capital market regulator Sebi and RBI, is set to discuss the issue. The source said that government suggests policy and the RBI considers it and decides the quantum of relaxation. “It is the RBI which decides the number,” sources added. Government sources had recently told ET that using exchange rate as an inflation-management tool involves a cost and a cost-benefit analysis has to be made. “We have to decide whether for the economy as a whole it is better to push the rupee up, and at what cost and who bears the cost. Yes, if the Rupee appreciates we will have more fiscal space. There is a view in our economy that there is no direct or significant pass through from the exchange rate to the prices. Also, that while there might be a pass through from exchange rate to prices while the rupee is weakening, there is not much pass through when the rupee is strengthening. That’s a question we have to consider. Impact of exchange rate on inflation is asymmetric as between appreciation and depreciation. We have to pay a cost to manage exchange rate. Its a free market”, a top source had recently said. The government and the regulators had tightened the norms last August when copious capital inflows were adding muscle to rupee, hurting exports and enhancing local money supply. They imposed a tight cap of $20 mn on that part of a company’s ECB that could be brought back to India. This restriction was relaxed to some extent in May by allowing infrastructure companies to bring home $100 mn and $50 mn for others, subject to RBI approval. The government also allowed corporate houses in the services sector such as hotels, hospitals and software companies to raise low-cost funds abroad for importing capital goods. These entities are allowed to borrow up to $100 mn from abroad, subject to central bank’s permission.

Taxability of VRS compensation

Taxability of VRS compensation
Terminal benefits cannot be brought within the scope of “amount received” under Section 10(10C), which was introduced to make voluntary retirement attractive.
T. C. A. Ramanujam
Section 10(10C) of the Income-Tax Act, 1961 exempts payments received by a salaried employee from the employer under a Voluntary Retirement Scheme up to Rs 5 lakh. The law requires that the scheme should be framed in accordance with the guidelines prescribed in Rule 2 BA of the I-T Act. No relief is available if the scheme is not approved prior to the date of voluntary retirement. Subsequent approval will not entitle a retired employee to claim exemption. TO READ MORE CLICK ...BUSINESS LINE

No Form-16 needed in I-T return

No Form-16 needed in I-T return

19 Jul 2008, 0316 hrs IST,TNN ,ECONOMIC TIMES

NEW DELHI: While filing tax return this year, you need not attach Form-16 with the form. In a statement on Friday, Central Board of Direct Taxes (CBDT) said that annexures and certificates like Form-16, relating to tax deducted at source are not required for income tax returns filing. "No annexures, TDS/TCS certificates are required to be annexed to the returns of income." an official statement said. A senior CBDT official said that all informations regarding TDS are recorded in the PAN (permanent account number) data of a tax payer. He said the department collects data on TDS from various sources and keep it in the PAN data banks of tax payers. Therefore, he said, the tax payers should just provide the TDS informations in the specified column in the return form. If the figure provided in the return is not matched with the data collected in PAN, then the department would ask the tax payer to furnish the Form-16. The credit for TDS and tax collected at source (TCS) will be allowed on the basis of details furnished in the relevant schedules of the return forms. Assessing officer will not disallow claim in this regard (return against excess tax paid) only on the ground that the TDS/TCS certificates have not been filed along with the return of income, the statement said. Also, to enable tax-payers to file returns in the electronic mode, the new return forms have been made annexure-less, except ITR-7, which is the returns for trusts. The electronic return filed with electronic signature will be treated at par with a physical sign. In case of tax return filed without electronic signature, the department said, the tax payers will get an acknowledgement, which will have return receipt number. A tax official said the tax payer should send the acknowledgement to the department. He said only after receiving the acknowledgement form the tax payer, the assessing officer can assess return filed in the electronic form. The department also said a tax payer can make electronic payment of taxes from the account of any other person.

Tax can be paid online from another person’s a/c :

Publication:Economic Times Delhi;
Date:Jul 19, 2008;
Section:EFM;
Page Number:7
IN A NUTSHELL

Tax can be paid online from another person’s a/c :

CBDT • NEW DELHI: The government on Friday clarified it will allow a taxpayer to make electronic payment of taxes from the bank account of any other person as well. The idea is to facilitate electronic payment of taxes by different categories of taxpayers. However, the challan for making such payment must clearly indicate the Permanent Account Number (PAN) of the taxpayer on whose behalf the payment is to be made. It will not be necessary for the assessee to make payment of taxes from his own account in an authorised bank, the Central Board of Direct Taxes said.

Dell’s Indian subsidiary gets tax breather •

NEW DELHI: In a major relief to the Indian arm of the global IT major Dell International, the Authority for Advance Ruling on Friday said that the fees paid by it to an American company for using telecom bandwidth will not be taxed in India. The relief would be subjected to the existence of a permanent establishment of the overseas telecom company in India, the Authority clarified in a ruling.

TDS certificate not needed with tax return

Publication:Economic Times Delhi;
Date:Jul 19, 2008;
Section:EFM;
Page Number:7
IN A NUTSHELL
• NEW DELHI: The government on Friday said annexures and certificates relating to tax deducted at source like Form-16 are not required to be submitted along with income tax returns. “No annexures, TDS/TCS certificates are required to be annexed to the returns of income. Wherever, documents are attached with the return, the receiving official is required to detach and return to the tax payers all such annexures,” the Central Board of Direct Taxes said in a statement. It said that original documents and certificates may be produced by assessees as and when called for by the assessing officer.