Tuesday, 6 December 2011
LIC to float first infra debt fund(IDF)
Life Insurance Corporation of India (LIC) along with Srei Infrastructure Finance will float the country's first infrastructure debt fund (IDF), under a government scheme aimed at boosting investments in sectors like roads, seaports, airports and power.
The IDF scheme was announced in Budget this year. In June, Sebi came out with norms for these funds to be set up through the mutual funds route. Recently, the RBI laid down the guidelines for infra debt funds as NBFCs.
A senior official told FE that the government was keen to set up the first IDF by January. LIC is in talks with Sebi to get the approval for a debt fund, which will be a mutual fund, the official said.
As per norms of the IRDA (Insurance Regulatory and Development Authority), insurers are allowed to invest only in AAA and AA rated debt papers in the infrastructure sector.
Hemant Kanoria, CMD, Srei confirmed the development. Kanoria said, “Recently, Srei has got an in-principal approval from Sebi to set up a mutual fund. The market regulator has approved the trustees.
The IDF scheme was announced in Budget this year. In June, Sebi came out with norms for these funds to be set up through the mutual funds route. Recently, the RBI laid down the guidelines for infra debt funds as NBFCs.
A senior official told FE that the government was keen to set up the first IDF by January. LIC is in talks with Sebi to get the approval for a debt fund, which will be a mutual fund, the official said.
As per norms of the IRDA (Insurance Regulatory and Development Authority), insurers are allowed to invest only in AAA and AA rated debt papers in the infrastructure sector.
Hemant Kanoria, CMD, Srei confirmed the development. Kanoria said, “Recently, Srei has got an in-principal approval from Sebi to set up a mutual fund. The market regulator has approved the trustees.
Stock Trading Tips for 07 Dec 2011
Stock Trading Tips for 07 Dec 2011
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
| AXISBANK | BUY ABOVE | 1042 | 1033 | 1060 |
| SELL BELOW | 1020 | 1030 | 1000 | |
| BANKINDIA | BUY ABOVE | 350 | 347 | 359 |
| SELL BELOW | 343 | 346 | 335 |
Friday, 2 December 2011
Stock Trading Tips for 05 Dec 2011
Stock Trading Tips for 05 Dec 2011
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
| PATNI | BUY ABOVE | 456 | 452 | 468 |
| SELL BELOW | 447 | 451 | 435 | |
| OIL | BUY ABOVE | 1,154 | 1,143 | 1,184 |
| SELL BELOW | 1,131 | 1,141 | 1,105 |
Thursday, 1 December 2011
Stock Trading Tips for 02 Dec 2011
Stock Trading Tips for 02 Dec 2011
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
| AJANTPHARM | BUY ABOVE | 347 | 344 | 355 |
| SELL BELOW | 340 | 343 | 331 | |
| ASTRAZEN | BUY ABOVE | 1260 | 1250 | 1280 |
| SELL BELOW | 1236 | 1247 | 1204 |
Wednesday, 30 November 2011
Stock Trading Tips for 01 Dec 2011
Stock Trading Tips for 01 Dec 2011
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
| RANBAXY | BUY ABOVE | 439 | 435 | 450 |
| SELL BELOW | 430 | 434 | 422 | |
| SUNTV | BUY ABOVE | 267 | 265 | 275 |
| SELL BELOW | 262 | 264 | 259 |
Tuesday, 29 November 2011
Stock Trading Tips for 30 Nov 2011
Stock Trading Tips for 30 Nov 2011
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
| BHARTIARTL | BUY ABOVE | 377 | 374 | 385 |
| SELL BELOW | 370 | 373 | 362 | |
| RELIANCE | BUY ABOVE | 772 | 765 | 792 |
| SELL BELOW | 757 | 764 | 740 |
Petrol in India costlier than in US
Petrol in India is costlier than in its neighboring countries and in the US, primarily because of high taxes.
Petrol in Delhi today costs Rs 66.42 per litre as against Rs 44.88 a litre price in the US, Minister of State for Petroleum and Natural Gas R P N Singh told Rajya Sabha in a written reply to a question.
Even after the November 16 reduction of Rs 2.22 per litre in rates, petrol at Rs 66.42 a litre in Delhi is costlier than Rs 48.64 a litre in Pakistan.
Whereas in Sri Lanka it is Rs 61.38 per litre, Rs 52.42 a litre in Bangladesh and Rs 65.26 per litre in landlocked Nepal. Incidentally, Nepal does not have a refinery and imports all its requirement from India. However, petrol in Europe is costlier than in India. In the UK, it is priced at Rs 104.60 per litre.
Singh said of the Rs 66.42 per litre price of petrol in Delhi includes Rs 26.59 a litre because of taxes (both central excise and local sales tax or VAT).
The US has only Rs 5.32 per litre tax on petrol while it is Rs 62.47 a litre in UK.
Petrol price in India has risen 39 per cent, or Rs 18.49 per litre, since April 2010. Petrol in Delhi cost Rs 47.63 per litre last year.
The hike in rates in Pakistan is lower at 26 per cent, from Rs 38.74 per litre to Rs 48.64 a litre. Sri Lanka has seen a 36 per cent increase from Rs 45.23 per litre in April 2010 to Rs 61.38 a litre at present.
In Nepal, petrol price went up from Rs 49.98 per litre to Rs 65.26 a litre currently, an increase of 31 per cent. Nearly 45 per cent of the current retail price of petrol in Delhi is made up of taxes.
The refinery price of petrol is just Rs 36.82 per litre, on top of which Rs 2.25 in inland freight and marketing cost and margin is added. Besides, Rs 14.78 per litre is the excise duty component and Rs 11.07 a litre is the sales tax that Delhi government charges. Another Rs 1.50 is the commission that petrol pump dealers earn.
Petrol in Delhi today costs Rs 66.42 per litre as against Rs 44.88 a litre price in the US, Minister of State for Petroleum and Natural Gas R P N Singh told Rajya Sabha in a written reply to a question.
Even after the November 16 reduction of Rs 2.22 per litre in rates, petrol at Rs 66.42 a litre in Delhi is costlier than Rs 48.64 a litre in Pakistan.
Whereas in Sri Lanka it is Rs 61.38 per litre, Rs 52.42 a litre in Bangladesh and Rs 65.26 per litre in landlocked Nepal. Incidentally, Nepal does not have a refinery and imports all its requirement from India. However, petrol in Europe is costlier than in India. In the UK, it is priced at Rs 104.60 per litre.
Singh said of the Rs 66.42 per litre price of petrol in Delhi includes Rs 26.59 a litre because of taxes (both central excise and local sales tax or VAT).
The US has only Rs 5.32 per litre tax on petrol while it is Rs 62.47 a litre in UK.
Petrol price in India has risen 39 per cent, or Rs 18.49 per litre, since April 2010. Petrol in Delhi cost Rs 47.63 per litre last year.
The hike in rates in Pakistan is lower at 26 per cent, from Rs 38.74 per litre to Rs 48.64 a litre. Sri Lanka has seen a 36 per cent increase from Rs 45.23 per litre in April 2010 to Rs 61.38 a litre at present.
In Nepal, petrol price went up from Rs 49.98 per litre to Rs 65.26 a litre currently, an increase of 31 per cent. Nearly 45 per cent of the current retail price of petrol in Delhi is made up of taxes.
The refinery price of petrol is just Rs 36.82 per litre, on top of which Rs 2.25 in inland freight and marketing cost and margin is added. Besides, Rs 14.78 per litre is the excise duty component and Rs 11.07 a litre is the sales tax that Delhi government charges. Another Rs 1.50 is the commission that petrol pump dealers earn.
How NRIs can claim Tax Deduction at Source exemption
Tax deduction at source in the case of Non-Residents - sec. 195
Special provisions are applicable to non-residents that income arising from interest from deposits, interest from specified securities, income from units of mutual funds etc. are liable for taxation at certain concessional rates i.e. 10%, 20% 30% etc. At the same time, Income-tax Act also fastens a liability on persons responsible for paying to on-resident (not being a company) or to a foreign company any interest or any other sum chargeable under the Income-tax Act (excluding salary), of deducting Income-tax thereon at source at the rates in force and credit the same to Central Government account. Such deduction of tax has to be made at the time of crediting the income to the account of the payee or recipient or at the time of payment. The rates presently prescribed are:-
(i) 20% on Investment income and long term capital gains and interest payable by Govt. or an Indian concern on moneys borrowed. However, it may be noted that in so far as T.D.S. on long term capital gains relating to foreign exchange assets, for Asst. Year 1998-99 is concerned, rate of T.D.S. will be at 10% as against 20% for 1997-98 and earlier year as specified above;
(ii) 40% on income by way of winnings from lotteries and cross word puzzles and winnings from horse races, and
(iii) 30% on all other income. This is of course subject to concessional rate of tax applicable to non-residents as will be discussed in the chapter dealing with special provisions applicable to non-residents. If the amount of other income like rent etc. exceeds Rs. 1,20,000/- then the tax will be deducted at the rate higher than 30% as may be applicable to the income of non-resident.
The amount of income tax deducted is to be increased by surcharge @10%.
One important factor to be kept in mind is that the expression "any other sum" chargeable under the provisions of the I.T.Act as used in Section 195 of Income Tax Act does not necessarily refer to sums which represent wholly income or profit to the recipient. Section 195 takes within its sweep any sums paid to a non-resident which do not wholly represent income or profit chargeable under the Act but a portion of which only so represents. In view thereof, a provision is also made for the determination in advance of the actual amount representing income out of the total sum payable to a non resident. For this purpose an advance determination from assessing officer is required to be obtained by the payer. Non-resident recipient of income can also approach the assessing officer and obtain certificate that no deduction be made while paying amount to the non-resident.
There are two circumstances in which you might be eligible for TDS exemption:
1) If the DTAA between the country of your residence and India allows a lower rate of TDS
2) If your total income is lower than the basic exemption limit of Rs 1.6 lakh
So the next question is: What does an NRI need to do in order to take the benefit of this exemption or reduced rate of tax?
If the DTAA between the country of your residence and India allows a lower rate of TDS
We saw that in case of certain incomes like interest income or royalty income, the DTAA for US and UK allows a reduced rate of TDS for NRIs. For instance, in case of interest income, while TDS is deducted at 30 per cent for NRIs, where there is a DTAA, the TDS rate is reduced to 15 per cent.
Similarly, there is a complete waiver of TDS in case of fees for professional services. So if you are an NRI providing services to someone in India and are receiving payment thereof, you can get a waiver of TDS.
However, in order to claim the reduced rate of TDS or waiver of TDS under the DTAA, you would need to submit a tax residency certification from the country of your residence. This will certify that you are a tax paying resident in that other country and that tax on that income is being duly paid in that country, ensuring no leakage of tax revenue for either countries.
In the US, the tax residency certificate is called Form 6166 and the application needs to be made to the Internal Revenue Service (IRS) in Form 8802. Complete details of the procedure are available here. In the UK you would need to get the tax residency certificate from the HM Revenue and Customs.
If your total income is lower than the basic exemption limit of Rs 1.6 lakh
It may happen that your total income in India is less than the basic exemption limit of Rs 1.6 lakh per financial year. In such cases, you may apply to the Income Tax Officer in your jurisdiction in India, requesting for a waiver of TDS. If the Tax Officer grants you the waiver, you may submit this to the payers such as your bank and claim TDS exemption.
Special provisions are applicable to non-residents that income arising from interest from deposits, interest from specified securities, income from units of mutual funds etc. are liable for taxation at certain concessional rates i.e. 10%, 20% 30% etc. At the same time, Income-tax Act also fastens a liability on persons responsible for paying to on-resident (not being a company) or to a foreign company any interest or any other sum chargeable under the Income-tax Act (excluding salary), of deducting Income-tax thereon at source at the rates in force and credit the same to Central Government account. Such deduction of tax has to be made at the time of crediting the income to the account of the payee or recipient or at the time of payment. The rates presently prescribed are:-
(i) 20% on Investment income and long term capital gains and interest payable by Govt. or an Indian concern on moneys borrowed. However, it may be noted that in so far as T.D.S. on long term capital gains relating to foreign exchange assets, for Asst. Year 1998-99 is concerned, rate of T.D.S. will be at 10% as against 20% for 1997-98 and earlier year as specified above;
(ii) 40% on income by way of winnings from lotteries and cross word puzzles and winnings from horse races, and
(iii) 30% on all other income. This is of course subject to concessional rate of tax applicable to non-residents as will be discussed in the chapter dealing with special provisions applicable to non-residents. If the amount of other income like rent etc. exceeds Rs. 1,20,000/- then the tax will be deducted at the rate higher than 30% as may be applicable to the income of non-resident.
The amount of income tax deducted is to be increased by surcharge @10%.
One important factor to be kept in mind is that the expression "any other sum" chargeable under the provisions of the I.T.Act as used in Section 195 of Income Tax Act does not necessarily refer to sums which represent wholly income or profit to the recipient. Section 195 takes within its sweep any sums paid to a non-resident which do not wholly represent income or profit chargeable under the Act but a portion of which only so represents. In view thereof, a provision is also made for the determination in advance of the actual amount representing income out of the total sum payable to a non resident. For this purpose an advance determination from assessing officer is required to be obtained by the payer. Non-resident recipient of income can also approach the assessing officer and obtain certificate that no deduction be made while paying amount to the non-resident.
There are two circumstances in which you might be eligible for TDS exemption:
1) If the DTAA between the country of your residence and India allows a lower rate of TDS
2) If your total income is lower than the basic exemption limit of Rs 1.6 lakh
So the next question is: What does an NRI need to do in order to take the benefit of this exemption or reduced rate of tax?
If the DTAA between the country of your residence and India allows a lower rate of TDS
We saw that in case of certain incomes like interest income or royalty income, the DTAA for US and UK allows a reduced rate of TDS for NRIs. For instance, in case of interest income, while TDS is deducted at 30 per cent for NRIs, where there is a DTAA, the TDS rate is reduced to 15 per cent.
Similarly, there is a complete waiver of TDS in case of fees for professional services. So if you are an NRI providing services to someone in India and are receiving payment thereof, you can get a waiver of TDS.
However, in order to claim the reduced rate of TDS or waiver of TDS under the DTAA, you would need to submit a tax residency certification from the country of your residence. This will certify that you are a tax paying resident in that other country and that tax on that income is being duly paid in that country, ensuring no leakage of tax revenue for either countries.
In the US, the tax residency certificate is called Form 6166 and the application needs to be made to the Internal Revenue Service (IRS) in Form 8802. Complete details of the procedure are available here. In the UK you would need to get the tax residency certificate from the HM Revenue and Customs.
If your total income is lower than the basic exemption limit of Rs 1.6 lakh
It may happen that your total income in India is less than the basic exemption limit of Rs 1.6 lakh per financial year. In such cases, you may apply to the Income Tax Officer in your jurisdiction in India, requesting for a waiver of TDS. If the Tax Officer grants you the waiver, you may submit this to the payers such as your bank and claim TDS exemption.
Monday, 28 November 2011
Tamil Nadu Guideline value in January , 2012
The Tamilnadu government had lost stamp duty because of the long gaps between revisions of guideline values. The last revision was in 2007, when the guideline values fixed in 2006 were notified. The latest revision comes a full 5 years after the last assessment of guideline values.
''The guideline value final draft is expected to be ready by December 15, 2011 for the government to take action. The new law provides for rapid changes in market values. It may be implement in January 2012" said One of the government official in registration department.Lands across the Tamilnadu depending on agricultural, residential, commercial or industrial, have been classified into as many as above 100 categories for the purpose of fixation of guideline values.
For an example, in the case of agricultural lands, depending on if they are wet lands irrigated by channels, wells, single cropped or double cropped, lands adjacent to highways and rail lines and bus route in which case there is a possibility that they are likely to be converted to industrial land.
The draft guideline values have taken into account the market values & patterns. The fast developing suburbs and peripheral areas will see guideline values move higher in line with market patterns.In the state, land value is unlikely to be below Rs. 1 lakh an acre anywhere. So, low land values have been largely corrected that is increased in many fold.
''The guideline value final draft is expected to be ready by December 15, 2011 for the government to take action. The new law provides for rapid changes in market values. It may be implement in January 2012" said One of the government official in registration department.Lands across the Tamilnadu depending on agricultural, residential, commercial or industrial, have been classified into as many as above 100 categories for the purpose of fixation of guideline values.
For an example, in the case of agricultural lands, depending on if they are wet lands irrigated by channels, wells, single cropped or double cropped, lands adjacent to highways and rail lines and bus route in which case there is a possibility that they are likely to be converted to industrial land.
Categories Detail
35 categories - Wet lands;
21 categories - Dry land ;
20 categories - Residential land ;
8 categories - Commercial use ;
35 categories - Wet lands;
21 categories - Dry land ;
20 categories - Residential land ;
8 categories - Commercial use ;
6 categories - Mixed use ;
5 categories - Industrial use.
5 categories - Industrial use.
The draft guideline values have taken into account the market values & patterns. The fast developing suburbs and peripheral areas will see guideline values move higher in line with market patterns.In the state, land value is unlikely to be below Rs. 1 lakh an acre anywhere. So, low land values have been largely corrected that is increased in many fold.
Stock Trading Tips for 29 Nov 2011
Stock Trading Tips for 29 Nov 2011
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
| WIPRO | BUY ABOVE | 375 | 372 | 380 |
| SELL BELOW | 368 | 371 | 356 | |
| TCS | BUY ABOVE | 1099 | 1089 | 1120 |
| SELL BELOW | 1076 | 1085 | 1041 |
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