9 august 2001

rbi recommends interest tax relief on pds investment income
mumbai--the reserve bank of india (rbi) has recommended that primary dealers (pds) should be exempt from paying tax on interest income from investments to the ministry of finance (mof).
the move follows the tax imposed on major state-run pds on their interest income, and a representation on the same has been made by pds through the primary dealers association of india (pdai) to the central board of direct taxes (cbdt) for the latters consideration.
sources say, this representation assumes significance in light of the fact that in the last audit of the comptroller and auditor general (cag) on pds, a qualification towards provision for the said tax has been effected.
however, to a clarification sought by the pds, the rbi had specified that tax need not be paid on interest income, but it was not taken into consideration by the i-t as notification was not there.

8 august 2001

s&p cuts india currency rating to negative
new delhi--international credit rating agency standard & poor's has downgraded india's sovereign credit rating, for both local and foreign currency, to 'negative' from 'stable' in view of unchecked fiscal deficit and rising domestic indebtedness. in an assessment likely to impact india's economy negatively, s&p also lowered the long-term local currency rating to 'bbb minus' from 'bbb.'