Friday, April 3, 2009
ATMs blocked as consumers cash in on fee relief
| Niladri Bhattacharya / Mumbai April 03, 2009, 0:33 IST |
Using third-party automated teller machines (ATMs) may be free now, but withdrawing cash from these machines has not been easy in many parts of the country.
During the first two days of free ATM use, when account-holders rushed to the nearest outlet to withdraw cash, many customers have had to deal with printouts saying “transaction declined”. Customers using their own banks’ ATMs did not, however, face similar problems.
Executives at State Bank of India (SBI) and ICICI Bank, which together account for over 17,000 of the nearly 40,000 ATMs, confirmed that third-party ATM use was proving difficult. The problems were the result of overloads on the national financial switch (NFS), which enables inter-bank transactions.
Transactions on a bank’s home ATM network are processed through a different switching system, while inter-bank transactions go to NFS, the country’s largest domestic network for authentication and routing payment details of various e-commerce transactions and e-government activities.
Adding to the volumes were the higher cash withdrawals at the start of the month. Typically, cash withdrawals go up ahead of a long weekend, such as the one starting tomorrow.
“The traffic has increased manifold. NFS is yet to put in place requisite systems to handle this huge volume,” said an SBI executive.
“For inter-bank transactions the routes are different and there may be a problem with satellite connectivity,” an ICICI Bank spokesperson said. Asked about the problem, an HDFC Bank spokesperson, however, said the bank’s terminals were not affected and there was no significant surge in volumes.
Bankers said the problem had also been taken up with the Reserve Bank of India (RBI) before the shift to free ATM use from April 1. “RBI has assured us that this problem will be addressed. It will take a few days for the system to be upgraded,” a bank executive said.
Although ATM use is free, for withdrawals as well as balance enquiries, banks are yet to finalise new inter-bank transaction charges.
An RBI official said the regulator has not received any complaints and the problem was not due to any pricing-related issues.
Courtesy : Business standard
Thursday, April 2, 2009
Irretrievable Breakdown of Marriage-Another Ground for Divorce
The Law Commission of India submitted to the Government of India, its 217th Report on “Irretrievable Breakdown of Marriage-Another Ground for Divorice”. The Chairman of the Commission, Dr. Justice A.R.Lakshmanan, former Supreme Court Judge, forwarded the report to the Union Law Minister, Dr. Hans Raj Bhardwaj.
Section 13 of the Hindu Marriage Act, 1955 provides grounds for presentation of a petition for divorce. Section 27 of the Special Marriage Act, 1954 similarly provides grounds for grant of divorce in the case of a marriage solemnized under the Act. However, the said Acts do not provide “irretrievable breakdown of marriage” as a ground for divorce. The Law Commission of India in its 71st Report title “The Hindu Marriage Act, 1955 – Irretrievable Breakdown of Marriage as a Ground of Divorce” recommended amendments in the Hindu Marriage Act to make irretrievable breakdown of marriage as a new ground for granting divorce among the Hindus. Recently, the Supreme Court also in Naveen Kohli V. Neelu Kohli (AIR 2006 SC 1675) recommended to the Union of India to seriously consider bringing an amendment in the Hindu Marriage Act, 1955 to incorporate irretrievable breakdown of marriage as a ground for the grant of divorce.
In view of the above, the Law Commission of India suo motu took up the study of the subject. The Commission examined the extant legislations as well as a number of judgments of the Supreme Court and High Courts on the subject and has expressed the view that “irretrievable breakdown of marriage” should be incorporated as another ground for granting divorce under the provisions of the Hindu Marriage Act, 1955 and the Special Marriage Act, 1954. The Court before granting a decree for divorce on the ground that the marriage has irretrievably broken down should also examine whether adequate financial arrangements have been made for the parties and children.
Section 13 of the Hindu Marriage Act, 1955 provides grounds for presentation of a petition for divorce. Section 27 of the Special Marriage Act, 1954 similarly provides grounds for grant of divorce in the case of a marriage solemnized under the Act. However, the said Acts do not provide “irretrievable breakdown of marriage” as a ground for divorce. The Law Commission of India in its 71st Report title “The Hindu Marriage Act, 1955 – Irretrievable Breakdown of Marriage as a Ground of Divorce” recommended amendments in the Hindu Marriage Act to make irretrievable breakdown of marriage as a new ground for granting divorce among the Hindus. Recently, the Supreme Court also in Naveen Kohli V. Neelu Kohli (AIR 2006 SC 1675) recommended to the Union of India to seriously consider bringing an amendment in the Hindu Marriage Act, 1955 to incorporate irretrievable breakdown of marriage as a ground for the grant of divorce.
In view of the above, the Law Commission of India suo motu took up the study of the subject. The Commission examined the extant legislations as well as a number of judgments of the Supreme Court and High Courts on the subject and has expressed the view that “irretrievable breakdown of marriage” should be incorporated as another ground for granting divorce under the provisions of the Hindu Marriage Act, 1955 and the Special Marriage Act, 1954. The Court before granting a decree for divorce on the ground that the marriage has irretrievably broken down should also examine whether adequate financial arrangements have been made for the parties and children.
Declaration of holiday on 14th April, 2009 - Birthday of Dr. B.R. Ambedkar
It has been decided to declare Tuesday, the 14th April, 2009 as a Closed
New tax rule to usher in clarity on TDS credit
The new CBDT rule has now settled the position that a person who is liable to pay the tax should be eligible for the TDS credit
Joint owners in shares, deposits or property could now have the right to claim
K.R. Srivats
New Delhi, March 20 Tax deducted at source (TDS) credit can now be availed by persons other than the deductees. This has been clearly articulated by the Central Board of Direct Taxes (CBDT) in a new rule on TDS credit availment.
Bringing relief and certainty to taxpayers, the CBDT has also spelt out the situations and the procedure through which the tax credit will be made available for persons other than deductees.
The credit for TDS will be allowed to persons other than the deductees only in cases where the relevant income is assessable to income tax in the hands of such other person. The new CBDT rule has now settled the position that a person who is liable to pay the tax should be eligible for the TDS credit, say tax experts.
To illustrate this point, consider a situation of winnings from a raffle going to a minor. The tax is deducted before the payment is made to the minor. Under the clubbing provisions of income tax, the income of the minor gets clubbed with those of the parent and gets taxed at the latter’s hands.
As the TDS certificate is in the name of the minor (deductee being the minor), tax authorities at the ground level often deny TDS credit to the parent even though the incomes are clubbed and assessed in the hands of the parent. Now, the CBDT has made it clear that tax credit has to be granted to the parent (the person in whose hands the income is assessable).
Similarly, in a situation where the deductees are joint owners of shares, property and deposits, the CBDT has now said that the TDS credit would be available to the respective joint owners in proportion of their ownership of the asset. Hitherto, no mechanism was available by which all the joint owners in shares, deposits or property could have the right to claim TDS credit.
“The latest CBDT rule on credit for TDS will bring clarity at the ground level. They have gone by the principle that the person who pays the tax should get the tax credit,” Mr Jayesh Thakur, Associate Director, PricewaterhouseCoopers told Business Line.
Till date, tax officers were taking different views on the eligibility for tax credit in situations where the income is assessable to tax in the hands of persons other than the deductee. Hitherto, assessees were often required to go up to the High Courts to get benefit of the TDS credit, point out tax experts.
Trusts, partnership firms
The CBDT has also brought clarity and certainty to the eligibility for availment of TDS credit in respect of trusts, partnership firms and Association of Persons (AOP).
In situations where the deductee is a Trust and the income is assessable in the hands of trustees, the TDS credit should be granted to the trustee. Similarly, where the deductee is partner or karta of a Hindu Undivided Family (HUF) and the income is assessable as the income of firms or the HUF, the TDS credit would have to go to the partnership firm/HUF.
Where the deductee is the Association of Persons (AOP) and the income is assessable in the hands of the members, the CBDT has made it clear that the TDS credit should go to the members of AOP.
The procedure: For persons other than the deductee to get the TDS credit benefit, the deductees are required to file a declaration with the deductor. The declaration should have details of the other person (i.e. the person to whom tax credit is to be given) like name, PAN, payment or credit in relation to which tax credit is to be given and the reason for giving credit to such person.
The deductor would report tax deduction in the name of such other person to the tax authority. The TDS certificate could also be issued in the name of the person other than the deductee.
In Budget 2008-09, the Government decided that the system of allowing credit to the assessee for TDS/Tax collected at source (TCS) needs a certain degree of flexibility considering the ongoing technological and business process changes.
Instead of providing rigorous conditions regarding the method of giving credit for TDS in the Income Tax Act itself, the Government decided to do this through the rules. That promise has now been implemented by CBDT by bringing the necessary rule for this purpose.
Govt abolishes banking transaction tax
New Delhi, Apr 1 (PTI) Taxpayers will not have to pay levy on withdrawal of cash from banks with the government withdrawing the Banking Cash Transaction Tax (BCTT) from today.
The government had introduced 0.1 per cent BCCT in 2005 on cash withdrawals of more than Rs 50,000 (individuals) and Rs 1,00,000 for others in a single day from non-savings bank account maintained with any scheduled bank.
The tax has been withdrawn from April 1 following an announcement made by the then Finance Minister P Chidambaram in his budget speech for 2008-09, sources said.
In his Budget speech, Chidamabram had said, "The BCTT has served a very useful purpose in enlarging the information system of the Income Tax Department. Since the information is also being gathered through other instruments introduced in the last few years, I propose to withdraw this tax with effect from April 1, 2009." The levy was introduced in 2005 to track unaccounted money and trace its source and destination.
Though BCTT was not introduced with the intention of revenue generation, the levy, as per the revised estimates, contributed to the exchequer Rs 600 crore during 2008-09. The BCCT collection was Rs 550 crore for 2007-08.
The government had introduced 0.1 per cent BCCT in 2005 on cash withdrawals of more than Rs 50,000 (individuals) and Rs 1,00,000 for others in a single day from non-savings bank account maintained with any scheduled bank.
The tax has been withdrawn from April 1 following an announcement made by the then Finance Minister P Chidambaram in his budget speech for 2008-09, sources said.
In his Budget speech, Chidamabram had said, "The BCTT has served a very useful purpose in enlarging the information system of the Income Tax Department. Since the information is also being gathered through other instruments introduced in the last few years, I propose to withdraw this tax with effect from April 1, 2009." The levy was introduced in 2005 to track unaccounted money and trace its source and destination.
Though BCTT was not introduced with the intention of revenue generation, the levy, as per the revised estimates, contributed to the exchequer Rs 600 crore during 2008-09. The BCCT collection was Rs 550 crore for 2007-08.
Wednesday, April 1, 2009
Notification on TDS and TCS -PIB Release
The Board has amended the rules relating to Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) vide Notification No. S.O.858 (E) dated 25th March 2009.
In this context, taxpayers are informed that the new Form 17 (the challan for payment of TDS and TCS) is applicable only for payment of tax deducted or collected at source on or after 1st April 2009. Therefore, in respect of any TDS or TCS made before the 1st April, 2009, the payment will continue to be made to the credit of the Central Government by using the challan in Form No. 281 (i.e. the old challan form) even after 31st March 2009.
The Central Board of Direct Taxes will shortly issue a detailed circular on the amended rules relating to TDS and TCS.
In this context, taxpayers are informed that the new Form 17 (the challan for payment of TDS and TCS) is applicable only for payment of tax deducted or collected at source on or after 1st April 2009. Therefore, in respect of any TDS or TCS made before the 1st April, 2009, the payment will continue to be made to the credit of the Central Government by using the challan in Form No. 281 (i.e. the old challan form) even after 31st March 2009.
The Central Board of Direct Taxes will shortly issue a detailed circular on the amended rules relating to TDS and TCS.
Monday, March 30, 2009
Nehruvian bravado haunts IAF’s vistas - Part I (Natteri Adigal)
“THE SARAS project will continue, we will not shelve it.” The heroic announcement of SK Brahmachari, Director General, Council of Scientific and Industrial Research (CSIR), has cheered faithful patriots, ever ready to puff up their chests in pride.
The announcement came shortly after the second prototype (PT-2) of the light transport aircraft (LTA) Saras crashed on the outskirts of Bangalore in early March. The 14-seater multi-role plane is being developed by ’expert’ science research VIPs at National Aerospace Laboratories (NAL), a CSIR outfit.
More than the monstrous sums squandered in the development, which has been going on since the early 1990s, the real tragedy was the loss of three young IAF officers. Test pilots Wg. Cdr. Praveen, Wg. Cdr. Deepesh Shah, and Test Engineer Squadron Leader Ilayaraja, who were on board the pre-doomed aircraft, died in the crash.
NAL chief AR Upadhyaya had taken the considered view that the accident must not hamper the program in India’s quest for beating the big names in the business. If Brahmachari, who met NAL ’scientists’ and relatives of the deceased pilots, is to be believed, the father of one of the pilots told him that completion of the Rs 200 crore project would be a fitting tribute to his son.
Whether it was true or not, it is this suicidal mindset - not just being prepared to become a martyr if needed but actually dying due to the ineptitude and criminal negligence of top bosses and utter mismanagement - that is being promoted by fake experts living in a Nehru era time warp.
A high-profile science babu who has dedicated his entire career (pushing files) to the country in one of the 37 research institutes governed by CSIR paid a typical homage saying, “These young officers have supported the test flying of the LTA, knowing fully well the risks involved with the experimental production. No great success can be achieved without paying the price.”
What he did not mention explicitly was that the price involved in fitting emergency equipment like ejection seats, mandatory when test flying unproven stuff, was too high compared to the cheap lives of passionate IAF officers in India!
This attitude came to the fore just one month previously in case of LTA’s compatriot LCA (Light Combat Aircraft) named Tejas. Air Commodore Rohit Varma, who heads the LCA flight testing at the National Flight Test Centre (NFTC), said, “Unlike other countries where test pilots are retired airmen, our test pilots are all serving pilots, bringing in contemporary experience of our operating environment!”
Countries which really want to develop such machines are idiots by implication because they believe that only highly experienced pilots will be able to take split-second decisions, often needed while facing situations that could not have been predicted! Apparently, the dare devilry or agility of pilots who have hundreds of flying hours left in them are not the attributes needed for this job.
NFTC bosses incidentally boast, “This centre has been set up entirely indigenously.” This is a sick Nehruvian mindset obsolete in an age when the concept ’global hubs’ is in vogue. Even far richer countries prefer to source such items in other countries in order to keep pace with advancements and to ensure quality and cost-effectiveness, rather than sink money in indigenization.
Rapid fire experts of India have come out with a brilliant idea to cut down the likely setback due to the fate of the PT-2, which was completely destroyed in the accident. The PT-1 aircraft will be modified and touted as the PT-3 by fitting the higher thrust Pratt and Whitney engines! Bring a donkey, present it as a horse and get a willing jockey to ride it! After all, any number of suckers are available to test-fly such make believe machines and become martyrs.
Of note, the PT-1 that had its first flight in May 2004, exceeded its empty weight target by almost a tonne. That is 25 per cent. Therefore, the PT-2, which first flew three years later than the PT-1 did (and crashed now), was fitted with the 1200 shp version of the original 850 shp engines, imported from Pratt & Whitney, Canada.
The PT-3 was supposed to be a ’production-standard prototype’, targeting a 500-kg weight reduction, using advanced materials. It was expected to fly by 2009-end, pushing certification into 2010.
Courtesy: Merinews
Saturday, March 28, 2009
Award Scheme for writing original books/reviews in Hindi on subjects pertaining to Income Tax, Excise and Customs, Service Tax and Narcotics
Government of India
Ministry of Finance
Department of Revenue
Subject: Ministry of Finance, Department of Revenue Award Scheme for writing original books/reviews in Hindi on subjects pertaining to Income Tax, Excise and Customs, Service Tax and Narcotics from 01.10.2008 to 30.09.2009
Books pertaining to Income Tax, Excise and Customs, Service Tax and Narcotics written or reviewed originally in Hindi during the period from 01.10.2008 to 30.09.2009 will be accepted for consideration in the Department of Revenue upto 20 October, 2009 for the following prizes:-
Scheme for Books written originally in Hindi
First Prize (one) - Rs. 25,000/-(Rupees twenty five thousand)
Second Prize (one) - Rs. 15,000/-(Rupees fifteen thousand)
Scheme for Book-review in Hindi
First Prize (one) - Rs. 8,000/-(Rupees eight thousand)
Second Prize (one) - Rs. 6,000/-(Rupees six thousand)
Eligibility
1) Should be a citizen of India.
2) The books should be written/reviewed during the period from 01.10.2008 to 30.09.2009.
General Terms
Persons participating in these schemes shall observe the following conditions and they will be governed by the following:-
I. Published books as well as manuscripts will be accepted under the scheme. The published books/manuscripts should have been published written during the prescribed period only.
II. Persons who are willing to send their books for consideration under the above-mentioned scheme are requested to send six copies of their books and two passport size photographs along with the enclosed proforma duly filled by 20 October, 2009 at the following address:-
Director (OL),
Ministry of Finance, Department of Revenue,
Room No. 264-A, North Block,
New Delhi – 110001
III. The books/manuscripts received in the Department shall not be returned.
IV. The books/manuscripts received after the last date shall not be entertained. The Department of Revenue shall not be responsible for any loss of book or delay in post.
V. The copyright of the awarded book shall remain with the writer.
VI. Only those books that have been written originally in Hindi will be accepted under this scheme.
VII. The book should not have been written under any other Government Scheme.
VIII. The book should not be a Hindi translation of book written in any other language or published earlier by the writer.
IX. In case the book has been awarded earlier by the Government of India or a Union Territory/State Government, a mention to this effect should be made in the application form.
X. In case the book/manuscript has been written by more than one person, the amount of prize money would be divided equally amongst them.
XI. The Department of Revenue has the exclusive right in the selection of person for the award.
XII. No correspondence regarding awarding of the prize or its process would be entertained.
XIII. The Department of Revenue has the exclusive right to make any change in the Scheme.
XIV. The Additional Secretary (Revenue)/Joint Secretary (Revenue) may forward the book to the Evaluation Committee for consideration.
XV. The awarded persons would get the prize money and a citation, which will have to be printed in the next edition of the book.
XVI. Information regarding the prize would be given well in advance by the Director (OL)
(Madhu Sharma)
Director (Official Language)
Telephone- 23095365
264-A, North Block, New Delhi
आयकर, उत्पाद शुल्क एवं सीमा शुल्क, सेवा कर तथा नारकोटिक्स से संबंधित विषयों पर हिन्दी में मौलिक पुस्तक लेखन योजना एवं पुस्तक समीक्षा योजना
(01 अक्तूबर,2008 से 30 सितम्बर, 2009 तक)
1. (क) लेखक का नाम:
(ख) पदनाम:
2. पुस्तक का नाम:
3. पुस्तक का विषय:
4. प्रकाशक का नाम, पता व प्रकाशन का वर्ष:
5. पुस्तक लिखने का कार्य सम्पन्न करने की तिथि(माह-वर्ष):
6. मैं एतद्द्वारा प्रमाणित करता/करती हॅू कि:-
(1) ------------------------------- पुस्तक मेरी मौलिक रचना है ।
(2) उक्त पुस्तक--------------------------------- के बीच में लिखी गई/प्रकाशित हुई है ।
(3) मेरी उक्त पुस्तक का विषय मेरे द्वारा किए जा रहे/किए गए कार्य से संबंधित है।
दिनांक:- लेखक के हस्ताक्षर
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