All modes of transport aided by flight covered by expression 'Airplane'; eligible for 40% depreciati

IT: All types of crafts or modes of transport aided by flight, are entitled to 40 per cent depreciation

Asset purchased using exempt income of a trust would also be eligible for depreciation

IT: Depreciation is allowable on assets which came into existence by application of income, which is exempt under section 11

Loss making co. couldn't be excluded from comparables if it reported profits in immediately precedin

IT/ILT: A company cannot be rejected as a comparable as persistently loss making, if it reported operating profit in immediately preceding year

For sec. 54F relief locality and social status of assessee decides built-up area and land appurtenan

IT : For allowing deduction under section 54/54F, extent of land appurtenant to residential house has to be determined with regard to locality where residential house is situated, social status and profession of individual and other factors for proper and convenient enjoyment of residential house

GST will not subsume entry tax: Sumit Kumar Chakraborty

Two recent judgments on entry tax by the single and Division Bench of the Calcutta High Court have divided lawyers on the constitutional validity of the tax. In an interview with Namrata Acharya, president of West Bengal Taxation Tribunal Bar Association, Sumit Kumar Chakraborty, talks about the legal implications of the judgments and the constitutional provisions pertaining to entry tax. Edited excerpts:

What is your contention with the entry tax in West Bengal?

The West Bengal Entry of Goods into Local Areas Act, 2012 was challenged by various dealers before the Calcutta High Court on the ground that it violates the Constitution of India. The government can restrict the movement of goods from one state to another but for that there is a need for the President's assent. West Bengal did not take President's assent before imposing the entry tax.

Second, the government had said entry tax was introduced for some purposes or end use. They could not show any purpose of use for the money collected through entry tax. Thus, the single judge Bench had held the Act as ultra vires.

The matter went to the Division Bench of the Calcutta High Court, which directed the dealers not to seek refund on taxes already paid. At the same time, the government was allowed to continue with the assessment for entry tax.

Are the judgments of the single and division Bench in contradiction with each other?

No, they are not. The next hearing is in November. We are of the view the Act is still ultra vires, as the earlier judgment of the single Bench has not been stayed by the division Bench. Hence, the Act is still invalid. So, how can I pay tax?

The commercial tax department is asking how the court can ask for assessment when the Act is invalid.

What is assessment? It is the quantification of the liability to pay the tax. Realisation is a different thing. The court did not ask for realisation.

Assessment is determination of tax. In the case of entry tax disputes, some courts have held that the tax has to be paid. But our court has not said so, so the realisation of tax is invalid.

So, why are the dealers not filing a contempt of court case against the state?

The government is using coercive methods. It is issuing notices for assessment, not realisation. Only if they issue realisation notices does the question of contempt arise.

What are your views on the justification of entry tax?

Entry tax can be levied by state governments. Article 301 says a state can impose tax on the entry of goods into another state. However, for that restriction, you have to have the consent of the President. Several other states are also fighting cases pertaining to entry tax. In case President's assent is obtained, there are several other grounds under which the entry tax can be called unconstitutional.

For example, it is to be seen if the tax violates Article 14, 19, 304 of the Constitution. I've the fundamental right to bring any goods from any state to my state. Suppose, if a person is transferred from Chennai to Kolkata, he will be bringing his goods for use of consumption and use in West Bengal. So, is he liable to pay entry tax? The Act violates the law of equality as some states have imposed entry tax and some have not.

Recently, Punjab changed the name of entry tax as advanced tax on import of goods. Can the tax be retained by changing its name?

Advance tax is equated with self assessment of income tax. It is to be seen how they adjust the entry tax with self assessment.

IPL in FEMA violation; Special Director to form an opinion before calling BCCI President for persona

FEMA : Special Director was to be directed to first form his opinion whether to proceed against petitioner, President of BCCI, for remittances in violation of FEMA before calling petitioner for personal hearing as per rule 4 of Adjudication Rules

Jsw Plans Chennai Centre, To Expand Presence In Auto Steel

06-Oct-2013

Mumbai: JSW Steel Ltd is planning to set up a processing centre in Chennai, its third such unit in India, as it expands its presence in the competitive value-added steel segment.



“Chennai is in the blueprint. We are looking for land,” Jayant Acharya, director, commercial and marketing, at JSW Steel, said in an interview on Friday.



Processing centres are essentially service units that are closer to factories of clients and help steel companies customize products such as auto body parts, thereby ensuring speedier delivery and low freight costs.



JSW Steel has one of the largest steel capacities in India at 14.3 million tonnes (mt) and is pushing up production of value-added steel, including high grade automotive steel, serviced in a big way through imports.



Last week, JSW Steel said it would set up a processing centre in Pune in a joint venture with Japan’s Marubeni Itochu Steel Inc. in the automobile hub of Pune and invest Rs.204 crore, half and half through equity and debt.



The first phase of the project is expected to come on stream by fiscal 2015 with an installed capacity of 180,000 tonnes per annum that can be scaled up to 360,000 tonnes a year in the second phase, the firm said.



“Anyone who is in auto-grade steel has to have processing centres,” said Chirag Shah, director of research at Barclays Capital, an investment bank. “Obviously, Pune and Chennai are automobile hubs and processing centres will help them to service different geographies.”



Shah said Indian steel makers are seeking to compete with foreign steel makers who service the auto sector, and JSW Steel’s efforts are a step in this direction.



Auto steel is considered to be the most dynamic market where quick innovations are needed to keep pace with new automotive designs as well as the need to have lighter and stronger body parts.



“Other than challenging other domestic steel makers (in auto steel), there is also import substitution that is taking place and that is what JSW is aiming for,” Shah said.



Global rival Posco imports close to 2 mt of steel from its factory in South Korea and has five processing centres in India and a manufacturing unit. It is looking to open at least three more centres, according to company executives who spoke to Mint earlier this year.



India imported 7.9 mt of steel in the fiscal ended March, of which auto-grade steel was about 3 mt, industry data show. The country’s total production of steel was at 77.6 mt, up 2.5% from a year ago, according to the Joint Plant Committee, a research arm of the steel ministry.



In 2011, JSW announced its first Rs.122 crore processing centre in Haryana, also a 50:50 joint venture with Marubeni Itochu, to cater to north India.



Acharya of JSW said the northern India plant is to be set up near Faridabad and it and the Pune plant are likely to be operational next year.



In addition to automobile companies, these centres will be equipped to process flat steel products such as hot-rolled, cold-rolled and coated products for white goods, construction and other value-added segments. JSW Steel produced 8.5 mt of steel in fiscal 2013, of which 6.3 mt was flat products that mainly go into the making of automobiles and consumer durables.



On Friday, shares of JSW Steel rose 1.57% to Rs.774.05. The BSE metals index was up 0.63% to 8,729.94 points, while the benchmark Sensex rose 0.07% to 19,915.95. From October 2012 till date, JSW Steel’s share price have risen 4.19%, while the metals index has declined 17.89%.

Source:- livemint.com

Indian Tea Attracts Better Price On Demand From Us, Russia, Iran

06-Oct-2013

Recently the Tea Board of India and the Association of Tea and Coffee in Russia jointly organised a charity auction of Darjeeling tea in Moscow. First flush high quality Darjeeling tea from 20 estates - Badamtam, Margaret’s Hope, Thurbo, Castleton, Barnesberg, Okayti, Gopaldhara, Rohini, Tindaria, Glenburn, Sour­enee, Arya, Puttabong, Risheehat, Sungama, Goomte, Thumsong Ora­nge, Chamong Organic, Lingia Organic, and Jungpana were specialities of the auction.



Professional tea tasters were part of the auction that was featured by popular Russian television personalities. According to Tea Board officials, the auction evoked encouraging response from Russian consumers, with tea varieties fetching high prices of $ 1,384 per lot of 1.2 kg. While Darjeeling tea from the Castleton estate won the highest bid of $1,384, the second highest bid was offered for Chamong Organic ($1,076), the third highest bid was for Badamtan estate ($646). The other tea varieties were also well received, with prices ranging from $200 to $500 per lot of 1.2 kg.



So, if Russia comes forward, can the US be far behind?



According to tea industry officials, particularly exporters, Indian tea is finding increasing acceptability in the US markets. The demand for premium Indian tea, in fact, is reportedly going up by 6-7 per cent. Leading tea exporters like McLeod Russel, Goodricke Group and Rossell Tea are all upbeat. And that’s not without reason. Premium



Indian tea is fast coming up as a more preferred alternative to coffee in the US. The good thing is that discerning American buyers are ready to pay good prices for premium Indian tea varieties.



Consumer goods research firm Packaged Facts has predicted in its latest report that over the next two years, tea sales at restaurants, grocery stores and shops across the US is expected to expand to $18 billion. And there are already signs of this increase. Tea sales had already gone up 32 per cent between 2007 and 2012 and reached $15.7 billion. Indian tea companies are expected to latch on to the opportunity.



The US and Russia would be the two biggest markets for Indian tea. They would also be crucial for price expectations. According to industry estimates, while good varieties of Darjeeling tea fetch $20 per kg on an average, the premium high-quality varieties can fetch up to $60-70 per kg in the US.



The encouraging news from the US and Russia have come at a time when the Iranian tea importers are also exploring options of buying larger volumes of tea from India and negotiating terms for solving the payment problems. The Indian Tea Association expects to export 20-21 million kg of tea to Iran in the current year itself.



Things, therefore, look bright on the export front. On the domestic front too, production in north India stood at 414.62 million kg till July, vis-à-vis 375.02 million kg in 2012, according to the last figures from Indian Tea Association (ITA).



However, the scene in south India is completely different, which produced almost 6 million kg less at 132.2 million till July. The north accounts for around 75 per cent of total tea production.

Source:- mydigitalfc.com

India’S Technical Textile Industry To Reach $36 Billion By 2016-17

News that India's technical textile industry is set to be growing rapidly in the next few years comes as the Techtextil India trade fair welcomes more than 182 exhibitors from Austria, India, Turkey, Sweden, Switzerland, Czech Republic, UK, Netherlands, US, and other.



The industry is expected to grow at a rate of 20% annually to reach $ 36 billion by 2016-17. “Technical textile is an important part of the overall textile sector in India. Not only has it grown at an annual rate of 11% during 2006-11, but is also estimated to expand at a rate of 20% to reach $ 36 billion by 2016-17,” explained Raj Manek, Messe Frankfurt Trade Fairs India Managing Director.



The technical textile industry in India, whose current size is estimated at $ 17 billion, is seen as the next hub for both manufacturing and consumption, he said.

Indian market



India is seen as a key growth market for the sector, given the sheer size of its population. Cost-effectiveness, durability and versatility have made technical textile popular in the domestic market.



With the discovery of new applications every day, the growth of the industry is only expected to amplify, Manek commented.



He was speaking on the sidelines of Techtextil India 2013, an international trade fair for technical textiles and nonwovens that is taking place from 3-5 October 2013, Mumbai, India, exhibiting the newest products, services and technologies available in the sector.

Techtextil



Techtextil was launched in 1986 in Frankfurt am Main, Germany. Today, the Techtextil brand consists of six shows within a two-year cycle: Techtextil Frankfurt, Techtextil India, Techtextil Russia, Techtextil North America (Atlanta), Cinte Techtextil China, Techtextil North America (Las Vegas).



The show’s user-oriented trade fair concept include ten product groups reflecting the entire value-added chain of technical textiles, nonwovens and innovative apparel textiles. Techtextil has defined twelve application areas to address all industry target groups on the visitor side.

Techtextil India



Techtextil was launched in India in 2007 and its success led to the foundation of consecutive shows. The second edition in 2009 had a participation of 110 exhibitors and a footfall of 6339 business visitors (including Heimtextil India).



In 2011 the show gathered together 130 exhibitors and 3814 business visitors.

Source:- innovationintextiles.com

Race For Abu Dhabi Oil

06-Oct-2013

State-owned firms ONGC and OIL are planning to collaborate with private energy firms such as Reliance and Essar to bid for a prolific oil and gas block in Abu Dhabi.



A 75-year oil concession granted by Abu Dhabi to foreign partners in onshore areas is about to expire beginning of next year.



Adco, an affiliate of state operator Abu Dhabi National Oil Company, one of the oldest oil companies in the region, is currently working on the block with a consortium that includes BP, Total, ExxonMobil, Royal Dutch Shell and Portugal’s Partex.



The contract is set to expire, and the Abu Dhabi government has started the process of inviting fresh bids to partner Abu Dhabi Company for Onshore Oil Operation (Adco) in exploring the block. Bids will be received this month. A large number of international companies are interested in the block because of its high reserves.



The Indian firms are studying hydrocarbon data, possible consortium structure to compete with global players and the amount of stake to bid for.



“It is an immense opportunity for the exploration firms in the country to bid for blocks in such a proven hydrocarbon zone,” industry sources said.



Consortium partners



Sources said the process had just started and it was too early to finalise the Indian consortium partners, though a partnership among PSUs and private players was an option. However, the consortium is likely to bid for a minority stake only.



According to analysts, joint bidding by state-owned firms will provide the financial muscle. However, the consortium must also include global firms to induct new technology in exploration.



The oil and gas blocks on offer provide an immense opportunity for the Indian firms to buy stake in a region which is a major source of crude for the country.



Adco plans to increase its crude output to 1.8 million barrels per day (bpd) by 2017 from 1.6 million bpd. The largest oil producing company in the UAE controls 98 billion barrels of proven oil deposits.



The consortium is likely to face competition from existing global players, who are keen to bid for the renewal of the concession. New players from Asia are also likely to bid.



The exploration firms from the country will have to compete with China National Petroleum Corporation (CNPC), the Korea National Oil Corporation, Japan’s Inpex and Russia’s Rosneft.



The oil ministry is likely to encourage state-owned firms to bid aggressively as part of New Delhi’s energy security strategy.



Oil ministry sources indicated that the Abu Dhabi government could favourably look at the bids by the Indian consortium considering the friendly ties between the two countries.



Energy security



The Abu Dhabi asset can provide an impetus to Indian companies in their hunt for quality assets in regions close to the country. It is also likely to energise ONGC Videsh Ltd (OVL), which had failed to secure a stake in the prolific Kashgan oilfiield in Kazakhstan recently.



“One failure does not mean we stop operations in the country completely,” OVL managing director D.K. Sarraf recently told reporters here.



The government has eased the investment norms for state-owned firms to fast track overseas acquisitions.Maharatna firms such as ONGC can independently take decisions on investments up to Rs 5,000 crore, which will reduce the time period to make bids.

Source:- telegraphindia.com

No Replacement Yet For Coal India Independent Directors

06-Oct-2013

Coal India Ltd, the world’s largest coal miner, has not replaced the seven independent directors who finished their tenures in August after resisting some policy decisions that had been seen as harming the company’s interests.



The delay in replacing them points to the clogged decision-making at the state-owned company, in which the government plans to sell a 5% stake through the so-called offer for sale (OFS) route to raise as much as Rs.10,000 crore to narrow the fiscal deficit to the lowest in five years.



The seven directors were credited with highlighting the active role independent board members can play in influencing the functioning of firms rather than being passive supporters of management decisions.



“This is not a good precedent to not have any independent directors, especially at a time when the company is planning an offer for sale,” said Shriram Subramanian, founder and managing director of InGovern, a corporate governance research and advisory company. “This does not send the right signal to investors.”



In addition to the OFS, crucial decisions that await the new independent directors are Coal India’s plan to import coal to meet the domestic shortfall that goes beyond 100 million tonnes, and the acquisition of overseas companies to expand its resources base.



Of the seven directors, Samir Barua, a professor at Indian Institute of Management—Ahmedabad, was an academic. The rest were officers of the Indian Administrative Service with varying backgrounds.



The other independent directors were R.N. Trivedi, Sachi Chaudhari, Anis Ansari, Kamal Gupta, Sheela Bhide and A.K. Rath.



Subramanian said none of the seven directors had been reappointed possibly because their independent stance on key policy matters had discomfited the government.



The directors opposed the terms and conditions of the fuel-supply agreement (FSA) that Coal India signs with power plants guaranteeing supply of the fuel and softened the terms and the penalty levels in the final policy.



They also insisted that coal imported by Coal India to deliver to customers must be priced at the market value without being subsidized in any way by the company.



The directors also questioned the supply of coal to cement and metal firms at low prices, saying such customers sold their products at market prices and it wasn’t fair that Coal India should subsidize their fuel cost.



“Whatever we said, we said judiciously,” one of the former independent directors said on the condition of anonymity.



The directors wanted to bar power firms that sold all or part of their power at market rates from signing the FSAs and getting low priced and guaranteed coal supply.



An official at Coal India, not wanting to be named, said the process of the new appointments was on.



Landmark tenure



During the three-year tenure of the independent directors, the government had to issue two presidential directives ordering the companies to sign FSAs amid rising pressure from the power companies.



“It was perhaps for the first time presidential directives had to be issued by the government,” Subramanian said. “It was basically a matter of the dominant shareholder vis-a-vis the independent directors.”



The government issued the first presidential directive in April last year, ordering Coal India to supply as much as 80% of the coal requirements of power firms at a time when the company’s production was faltering.



In July this year, a second presidential directive was issued, asking Coal India to sign FSAs with power plants for a capacity of 78,000 megawatts (MW), according to media reports.



“The presidential directive helped the independent directors as they absolved them of any blame of taking decisions that were financially risky for the company,” one director said.



The Children’s Investment Fund Management (UK) Llp (TCI), a UK-based investor that has a lawsuit against Coal India, may have contributed in forcing the independent directors to take a bold stand against unfavourable policies, analysts said.



The lawsuit being heard in the Calcutta and Delhi high courts has named the directors in addition to the management of the company and the government, saying the firm’s policy of selling coal at low prices in India was bad for shareholders.



“There were no differences, no disputes. We made the firm take a call on the subsidy element,” said a second independent director who did not want to be named. “What we said was based on merit.”

Source:- livemint.com

Gold Imports May Pick Up, Touch 725 Tonnes In Fy'14

06-Oct-2013

The country's gold import, which is at a "standstill" now, are expected to pick up and may touch 725 tonnes this fiscal, a top industry body has said.



"The gold import is presently at a standstill, but it may pick up in the next three months till December to 150 tonnes and we expect total imports to touch 725 tonnes in FY'14," All India Gems & Jewellery Trade Federation (GJF) chairman Haresh Soni told PTI on the sidelines of a Bombay Bullion Association (BBA) summit here.



The country imported 354 tonnes of gold in April-September 2013, of which 118 tonnes came in April, 162 tonnes in May, 31 tonnes in June, 41 tonnes in July, 2 tonnes in August and nil in September, Soni said.



The country's total yellow metal consumption is around 900 tonnes a year, of which 600 tonnes goes into manufacturing and 300 tonnes into investments.



Gold imports into India, the world's biggest buyer of the metal, virtually stopped after a July 22 RBI circular which tied domestic consumption to exports. The new rule stipulates that 20 per cent of imports must be turned around for exports, most of which are in the form of jewellery.



India, battling a record high trade deficit and a weak currency, is trying to curb imports of dollar-denominated gold, most expensive non-essential item in its import bill.



"We are starving for supplies as artisans are idle. We are optimistic that government may allow imports," Soni said.



Meanwhile, GJF is hopeful of receiving RBI and SEBI approval for its proposed Rashtriya Swarna Nivesh scheme, an initiative which is expected to bring the idle gold back into circulation.



"We hope to collect 400 tonnes of gold through this scheme in FY'14. We plan to start pilot project with 500 jewellers and gradually increase it to 10,000 jewellers," Soni said.



The focus of the BBA-organised India International Bullion Summit was to strengthen India's presence in the global bullion market, and increasing interaction of domestic gold and jewellery industry with its international counterparts, BBA president Mohit Kamboj said.



"The IIBS served as the single platform for industry experts, suppliers and buyers to converge and address the concerns of the industry," Kamboj said.

Source:- timesofindia.indiatimes.com

Indian Rupee Opens Lower At 61.49 Per Dollar

Indian rupee fell marginally to 61.49 per dollar in early trade Monday as against Friday's closing of 61.43 per dollar. According to Agam Gupta of Standard Chartered, while the US government shutdown will continue to weigh on sentiment, SEBI's decision to ease and rationalise the rules around FIIs will act as a positive cue for the currency markets.



"The range for the day is seen betwen 61.25-61.75/USD," Gupta says. The dollar continues to trade above 80 levels after it rose for the first time in six sessions on Friday but was still within striking distance of a recent eight-month low as the US Government closure and fears about a debt default kept investors cautious. The euro slips to 1.35/dollar and the yen trades at 97/dollar.

Source:- moneycontrol.com

Now pay more for banking services

While the increase in repo rates will make loans more expensive, you also need to be cautious about the fees and charges for other banking services and transactions, which have been hiked in the recent past. Find out how these can add up to your monthly outgo.

Loans

The EMIs on big-ticket loans, such as those for home or car, will go up.

Home loan

Outstanding loan: Rs 50 lakh

Remaining tenure: 179 months (14 years, 11 months)

Original interest rate: 10.5%

Original EMI: Rs 55,500

Revised interest rate: 10.75%

Revised emi: Rs 56,250

Car Loan

Outstanding loan: Rs 5.5 lakh

Remaining tenure: 77 months (6 years, 5 months)

Original interest rate: 10.75%

Original EMI: Rs 9,918

Revised interest rate: 11%

Revised EMI: Rs 9,989

Service charges

The random charges and fees imposed by banks may not seem too high, but cumulatively, they can leave a big hole in your pocket. Here's how.

Cheque return Rs 350-750

From a fixed monthly charge for a cheque return, some banks have begun to levy a graded fee based on the number of instruments. Also, unlike earlier, return of fund transfer will also be taken into account.

Phone banking

Rs 50

From 1 November, some banks will offer only first two calls free in a month, and subsequently, charge Rs 50 per call (not for calls to register complaints or card loss). Currently, all such calls are free.

SMS alert

Rs 15 per quarter

Most banks are now charging for SMS alerts; the service used to be free earlier. Some banks levy a higher charge of Rs 25 per quarter for current accounts.

Branch banking

Rs 100

With effect from 1 November, Rs 100 will be charged after the first four free cash transactions in a month. This is the charge if specified balance is maintained; in case of non-maintenance, all transactions will be charged at Rs 100. Earlier, Rs 50 was charged per cash transaction in case the specified balance was not maintained.

Credit cards

3.25-3.35%

Some credit card issuers have revised the interest rate on outstanding amount after the credit free period from 3.05-3.15% to 3.25%, with effect from 1 October.

Non-maintenance of minimum balance

Rs 250-500

Banks typically charge for nonmaintenance of the specified minimum balance in the account. Now, some banks are switching from the requirement of Average Quarterly Balance (AQB) to Monthly Average Balance (MAB).

Cash withdrawal at ATMs

Rs 20

Most banks levy a fee of up to Rs 20 beyond five transactions at ATMs of other banks.

Debit cards

Rs 150

Some banks have revised the annual fee from Rs 100 to Rs 150 in urban centres; others have introduced an issuance fee of Rs 100, which was not levied earlier.

How to operate MS Excel to arrive at the corpus you can amass

We all save and invest to fulfil our future desires. While some manage to save a significant portion of their incomes, others put away only a meagre amount. Irrespective of the level of savings, proper investment planning is required to achieve financial goals. While planning, the following questions come up:

How much will be my corpus in, say, 10 years if I save Rs X amount every month, or every quarter, or year? What will be the future value of the amount I invest as a lump sum? The answers to these questions lie in the mathematical concepts of 'compounding' and 'time value of money'. Those who want to estimate the future value of their investments should have some knowledge of the basic exponential and logarithmic functions.

This is because the equations used in estimating future values require the application of these basic mathematical concepts. Most people are reluctant to solve equations and, instead, seek the help of financial planners to get the answers. Though such calculations can be easily done using scientific calculators, one needs to understand the operational features of these calculators.

Apart from solving mathematical equations and operating scientific calculators, if one knows the basic MS Excel functions, the calculations can be done in seconds. Excel takes care of all mathematical functions, such as addition, division, multiplication, exponential and logarithms. The user only needs to put in his savings or investment, the interest rate, and tenure of investment.

The future value or corpus appears in seconds. The best part is that the user can create scenarios by changing the variables and a new corpus shows up instantly.

Let us explore the FV function of MS Excel with an example. Rajeev wants to invest Rs 8,000 every month for 10 years. If the interest rate is 9% per annum, he wants to know the corpus value after 10 years. Open an Excel sheet and go to 'Formulas'. Select 'Insert Function' and then 'Financial' from the drop-box menu. In the 'Financial' function, select 'FV', after which the following box will appear:

1) Input variables

Let us look at the input variables of the FV function. The first is the rate, which is the rate of interest one expects from the investment. In this case, it is 9%. The important point here is that, if the investment is monthly (as in our example), the interest rate needs to divided by 12. If the investment is quarterly, the rate is divided by 4.

If the investment is twice a year, the factor for rate is 2. Nothing needs to be done if the investment is annual. The second input is Nper, which is the tenure of investment. In our example, this is 10 years. Depending on the frequency of investment, the tenure needs to be multiplied by the respective factor.

Here’s how economic indicators can affect your financial life

Here's how you can tackle a ballooning EMI

Muthoot Finance launches its ESOP; to benefit over 24,000 employees

PTI Oct 1, 2013, 09.40PM IST

(The plan was approved as…)

KOCHI: Muthoot Finance Ltd, India's largest gold loan company today announced the launch of its maiden Employee Stock Options Plan (ESOP), which would benefit its over 24,000 employees.

The plan was approved as a special resolution in the company Annual General Meeting held here on September 27, the company said in a press release.

The plan will grant employee stock options to employees through one or more employee stock options schemes.

Among the salient features of the ESOP are that Options convertible into such number of equity shares not exceeding three per cent of the paid up capital at any point of time, Each option (after it is vested) will be exercisable for one Equity share of Rs 10 each fully paid up.

All permanent employees, including Directors, whether working in India or abroad, would be entitled in the employee stock options scheme. Options can be exercised within a period of eight years from the date of grant.

The appraisal process to determine the eligibility of the employee will be specified by the Board and the number of options that may be granted to workers under the Scheme shall be determined by the ESOP Committee from time to time.

Commenting on the special provision launch, M G George Muthoot, Chairman, Muthoot Finance said the plan would not only enable the company reward past loyalty and performance, but also attract and retain the best talent, besides enabling employees develop a greater sense of ownership with the organisation.

George Alexander Muthoot, Managing Director, Muthoot Finance said Muthoot Finance has about 24846 plus employees. With this maiden ESOP scheme, the company wants not only to reward existing employees who have been active in achieving long-term corporate goals, but also be the best company to work for by retaining and attracting new talent to drive the next leg of growth.

Portal for pension-related info to ex-servicemen launched

PTI Oct 1, 2013, 08.55PM IST

(CAG Shashikant Sharma today…)

NEW DELHI: CAG Shashikant Sharma today launched a website for providing pension-related information to ex-servicemen.

"The Defence Pensioners' Portal has been designed to provide pension related information to pensioners paid by the Defence Pension Disbursement Offices (DPDOs)," a Defence Ministry release said.

The portal was launched on the sidelines of a function to mark the 267th Defence Accounts Department Day.

"The dpdopensioners.org portal can be accessed to know the details of pension received by the pensioner and the history of his pensionary benefits," the release said.

The Defence Ministry gives pension to more than two million pensioners under it.

Speaking on the occasion, Minister of State for Defence Jitendra Singh complimented the Defence Accounts Department for issuing revised Pension Payment Orders (PPOs) to 6.5 lakh pensioners.

"It has undertaken the gigantic task of issuing revised PPOs to pre-2006 pensioners on account of 6th Pay Commission. It is satisfying to note that the Department has been able to issue 6.5 lakh corrigendum PPOs besides implementing the Cabinet Secretary Committee recommendations made in 2012," he said.

The Minister expressed hope that the department would complete the issuing of balance 12 lakh corrigendum PPOs as quickly as possible by deploying all possible resources.

Defence Secretary RK Mathur also addressed the gathering in presence of IAF Chief NAK Browne and Navy Chief Admiral DK Joshi.

EPFO asks field staff to reduce proportion of rejected claims

PTI Sep 25, 2013, 06.14PM IST

(Expressing concern over…)

NEW DELHI: Expressing concern over high ratio of rejection of claims for withdrawal or transfer of PF, retirement fund body EPFO has asked its field staff to adopt client-oriented approach to minimise the number of such cases.

"It is found that rejection ratio is on the higher side. A total of 27 offices have rejected more than 23 per cent of their claims... (They should) ensure that rejection ratio is brought to minimum," said a circular issued by Employees' Provident Fund Organisation to its field formations.

It further said that an, "effective and targetted client outreach programme may also be initiated to educate the employees as well as PF members to avoid common errors while filling the claim form which leads to rejections of claims".

Every year, EPFO receives more than one crore claims from its subscribers for withdrawals or transfer of provident fund and settlement of pension.

The body has been trying to improve upon its services on the claim settlement front and is endeavouring to reduce time period for that to less than three days. However, EPFO is supposed to settle all type of such claims with in 30 days period as per its citizen charter.

In a recent performance review, it observed that Gujarat and Madhya Pradesh Zone of EPFO toped the chart with settling 58.51 per cent claims within three days as on September 2, 2013, followed by Haryana and Rajasthan Zone at 43.52 per cent and Uttar Pradesh and Bihar Zone at 38.16 per cent.

The review further stated that efficiency of settling claims per day per social security assistant was highest at Noida office at 27 claims followed by Gurgaon office at 26.

It was also observed that EPFO's Howrah office has also joined league of regional centres where claims settlement in three days is more than 60 per cent.

The Howrah office settled 84.46 claims in less than three days in August compared to 47.47 per cent in April, 46.92 per cent in May and 48.09 per cent in June. It had settled 83.29 per cent of claims with in three days in July this year.

However, it was observed that percentage of claim settled by the all EPFO offices in the country within 30 days, came down to 97.68 per cent in August compared to 98.32 per cent in the previous month.

Most people lack awareness about creditworthiness: Survey

PTI Sep 23, 2013, 06.34PM IST

(Most borrowers in the country…)

NEW DELHI: Most borrowers in the country are unaware about the fallout of defaulting on loan payments as well as presence of systems to rate their creditworthiness, says a survey.

As many as 91 per cent of the respondents were found to be lacking awareness about the adverse impact of not paying their loan dues, according to Credit Sudhaar, a leading credit health improvement company.

The survey, which covered more than 300 people across eight cities, also found that about 85 per cent of the people did not have any idea about the presence of credit bureaus -- entities that maintain database of borrowers and help lenders to check their creditworthiness while giving away loans.

Delhi and Pune led with 1 out of 4 respondent being aware of Credit Bureaus. Besides, Delhi, Bangalore and Pune had more than 10 per cent respondents knowing their score.

"The primary objective of conducting the survey was to understand the cause and effect analysis of clients who have been through credit impairments. In other words, we wanted to understand the reasons for unavailability of credit to clients due to negative credit history and a low credit score," Credit Sudhar Co-founders Arun Ramamurthy and Gaurav Wadhwani said.

The survey revealed protection of credit as a major concern as none of the respondent had taken any steps to protect their identity from theft.

Moreover, 92 per cent of respondents are unaware of their credit scores -- ratings given by credit bureaus.

Besides, a mere four per cent of the people surveyed have checked their credit scores in last one year and 98 per cent of respondents could not decipher a sample credit report when they were shown one.

"The survey revealed that 91 per cent of the customers were not aware of the impact of non-payment of credit dues," Ramamurthy and Wadhwani said.

"We feel that a lot of this could have been avoided if they would have been aware of their credit health and the impact of non-payment of credit dues. We also realised during the survey that penetration of professional credit counselling is almost nonexistent in India, which leaves space for presence of credit advisory services," they added.

RBI may offer two consumer price inflation linked savings products

ET Bureau Sep 21, 2013, 06.32AM IST

(Deposit growth has been…)

MUMBAI: Central bank to launch saving products to attract investor away from gold & realty.

The Reserve Bank is working on two savings products where returns will be linked to consumer price inflation, a move aimed at weaning retail investors away from gold and real estate. One of the products will pay a lump sum amount at the end of the maturity period based on annual consumer prices, similar to fixed deposits that have always been attractive to retail investors.

"We have started the process to issue two kinds of retail inflation-indexed retail certificates— one with lump sum payment at the end and the other with indexed interest payments," RBI governor Rajan told reporters after his first monetary policy review on Friday.

Rajan had hinted at such a move immediately after taking charge as RBI chief on September 4. "Households have expressed a desire to be protected against CPI inflation," he had told reporters. "Together with the government, we will issue Inflation Indexed Savings Certificates linked to the CPI New Index to retail investors by end-November 2013."

Saugata Bhattacharya, chief India economist at Axis Bank, said, "Apart from an hedge against inflation, it will help address the cash flow needs of diverse investors or savers."

Deposit growth has been slowing for some months now. Annual deposit growth, even as of early September, is 13.37%, lower than the RBI's comfort level of 14% for the year.

Steps involved in applying for Permanent Account Number online!

BankBazaar Sep 18, 2013, 11.59AM IST

(Here are the steps involved…)

Indians use the Permanent Account Number (PAN) Card as an identification document for different purposes. There are many holders of the PAN card who are neither working nor file tax returns; but have this solely for the purpose of identification. As the importance of this document has increased over the years, more and more people are applying for it.

As a result of this, the Income Tax department has sought to simplify the process of applying for a PAN card. While the PAN card could earlier be obtained only through middlemen, who were usually Chartered accountants, today the PAN card can be easily applied for online. This is an easy and user friendly process, with clear instructions and guidelines given at every stage. Here are the steps involved in applying for a PAN card when you wish to do it online -

1 Visit the website of the Income Tax Pan Services Unit. This can be visited at https://tin.tin.nsdl.com/pan/

2 This is the home page of the Income Tax PAN Services unit and has different choices such as application for a new PAN, Enquiry and Tracking status, Reprint of PAN card and changes or correction in the PAN details. The applicant must choose the option which is applicable to him.

3 To apply for a new PAN, Form 49A will need to be used. Form 49A can be filled online by visiting https://tin.tin.nsdl.com/pan2/servlet/NewPanApp. Fill in the details and submit the form online. After the form is submitted online successfully, an acknowledgement is displayed. This shows a unique 15 digit acknowledgement number. This acknowledgement must be saved and printed for further process.

4 The acknowledgement form must be sent to the Income Tax department. Before sending this, you will need to attach a few documents along with the acknowledgment form. This includes a proof of address and a proof of identity. Your name which is mentioned in these documents should be in the same format as that in the PAN application form. Take care of this at the time of filling in Form 49A.

5 You must also affix two recent colour photographs on the acknowledgment form in the applicable space. Signatures have to be made where indicated. The photograph you affix should be clear and recent, as this is the same photograph which will be used on your PAN card.

6 Application for PAN necessitates payment of Rs.96 if the communication address is within India. In this case, you can make the payment by one of the following methods - cheque, Demand Draft, internet banking, credit card or debit card. If the communication address is outside the country, then the amount to be paid is Rs. 962, and this is only in the form of a demand draft. In the case of payment by internet banking, by credit card or by debit card, the payment has to be made at the time of filling in the form, after which a payment acknowledgement will be given. Take a print of this and attach with the acknowledgement form.

7 The acknowledgement form must thus be accompanied by photographs, proof of address, proof of identification and the payment/payment proof as the case may be. This must be sent to NSDL in Pune within 15 days of the online application date. The envelope must be subscribed with the words 'APPLICATION FOR PAN - Acknowledgement Number'. The applications are processed at NSDL after receipt of payment - meaning if the payment has been made by means of a demand draft or cheque, you must wait for realization of the payment.

The steps above are simple and self explanatory. There are adequate instructions, guidelines and a list of Do's and Don'ts in the website which will guide you in every step of the PAN application process. The application status can be tracked online after the acknowledgement has been sent. Online payments made can also be tracked online. NSDL also offers the facility of tracking by writing to them at their address or by sending an SMS to 57575 by typing SMS NSDLPAN -space-Acknowledgement No.

The process of changing or correcting the details of your existing PAN card is similar to the process of applying for a new PAN card. At the home page of the Income Tax PAN Services Unit, you will need to select "Changes or Correction in PAN details". Fill in the PAN Change Request Form online and follow the steps above. This PAN change request section also has separate guidelines, instructions and Do's and Don'ts to help you.

Therefore you no longer have to depend on someone else to get a PAN card for yourself or anyone you know. Simply follow the above steps and get it.

Even in bad times, stick to a financial plan

Madhu T, ET Bureau Oct 4, 2013, 11.09AM IST

(Experts say individuals…)

When the going gets tough, hoard as much money as possible. That is the simple strategy adopted by some individuals to face the likely setbacks presented by the prevailing bleak economic scenario. According to financial advisors, some of these individuals are absolutely sure that the economy is not going to turn around in the near future. They are also reasonably sure that they have to endure a job loss or at least a pay cut in the coming months. The solution to all these gloomy possibilities: save as much as possible, create a war chest so that you are ready to face any adversities . "I must confess that things weren't this bad even during 2008. We used to get calls from at least half-a-dozen new clients every day. That has almost stopped ," says a financial planner, who doesn't want to be named. "Even existing clients are really worried about the future. They are not very convinced about the longterm prospects of the economy. We really have to convince them," he adds. Despite the pep talk, some people have cut down on their investment and very few individuals have completely abandoned their financial plan to save more money.

How Bleak is the Scenario?

However, according to financial advisors, the strategy may badly backfire. "This is not a strategy. These people are reacting to external events and they are in a panic mode. They have not planned for future goals. That is why they are reacting in such manner," says Gaurav Mashruwala, a certified financial planner. "Instead of preparing for an eventuality, this strategy is trying to predict the future . That is why it will complicate matters further." Many experts like Mahsruwala believe the pessimism is overdone . "Yes, things are not that good. But many of my clients, especially the richer ones, are overdoing it," says a wealth manager, who doesn't want to be quoted. He cited the huge gains made by the markets on the appointment of the new governor of the Reserve Bank of India or on some vague statement coming from US Federal Reserve or some Indian government official to send home the point. D Sundararajan, investment consultant at Trendy Investment , says, he understands the vulnerabilities of this set of individuals . "But instead of focusing on these external factors, they should actually try to strengthen their financial plan to face an eventuality."

Focus on Your Financial Plan

Experts say they really encourage people to save more, but they say saving more becomes a problem when one overlooks all other goals. "One should always try to save more. But if you have the real concerns about your future, saving is not enough. You have to plan for your future, after taking into account all eventualities on the way," says Mashruwala. He says an average individual should try to follow certain rules all the time: she or he should have a health cover; a life insurance cover if there are dependents. She or he should have a plan to clear off debt if there is any. Next step is to start investing to meet future financial goals. Here again follow the thumb rule: park the money in liquid or liquid-plus or bank fixed deposits to meet short-term goals; if the goal is 2-3 years away, look at debt schemes and invest in equity only if the goal is 7-9 years away. Irrespective of whether the future prospects are bleak or bright, one can't bypass these steps. Now, moving to the present "bleak scenario," one should try to identify the concerns rather than soaking in the general pessimistic mood, say experts. For example, what are you bothered about? Is it a job loss or a pay cut? Then, you should focus on increasing your contingency fund. "If you have outstanding loans or big EMIs, you should try to build a bigger contingency fund. Also, if you and your family are covered by your company health insurance cover, you should try to get an individual cover," he says.

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