CBDT eases I-T scrutiny norms for individuals
Bangalore: The Central Board of Direct Taxes (CBDT) has relaxed the norms for income scrutiny of individuals who have an exempt income of over Rs2 lakh, but are honest tax-paying citizens. In September this year the CBDT had called for compulsory scrutiny of all returns where the exempt income was above Rs2 lakh for non-corporate assessees.

According to revenue officials the CBDT has issued instructions calling for scrutiny only in certain cases.

The revised instructions set at rest fears that genuine cases, such as dividend income or gratuity received on retirement exceeding Rs2 lakh would also come in for scrutiny. Several items fall under the category of exempt income.

Section 14A, mentioned in the revised set of instructions, provides that expenditure incurred by the tax payer in relation to earning tax-free income is not deductible.

Thus if the tax payer having exempt income exceeding Rs2 lakh has claimed such a deduction, then such tax payer's income will be scrutinised. There are also instances where taxpayers attempt to show black money in the form of exempt income.
Back to News Review index page  

China to soon become world's 3rd largest foreign trader
Beijing: China will soon become the world's largest foreign trader as its trade is expected to hit a record $1.1 trillion this fiscal year with an annual growth of about 30 per cent. A report issued by the department of planning and finance of the ministry of commerce and it's think-tank, the China Academy of International Trade and Economic Cooperation, said that China would emerge as the third largest player engaged in foreign trade after the US and Germany in 2004.

The report attributed the fast growth to macro-control measures instituted by the Chinese government, the strong development of Chinese economy, the recovering world economy and an improved trade system and policies.

In 2003, China's foreign trade was worth $850 billion.
Back to News Review index page  

5 new airports planned
New Delhi: The government is considering a proposal to build five new airports in the country with an investment of over Rs6,000 crore, to come up in Goa, Navi Mumbai, Pune, Kanpur and Nagpur. The proposed airport in Nagpur will developed as an international aviation hub.

However, no decision has been taken on the funding and operation of the airports. The government feels that setting up greenfield airports will give it the flexibility of allowing private and foreign participation, on the lines of the Bangalore and Hyderabad airports.

Officials said the government would soon start feasibility studies at these locations. This also form a part of the government's strategy to improve the aviation infrastructure in the country.

The Nagpur airport will be developed as a hub for Indian carriers, where they will be able to fly in for onward connections across the country.
Back to News Review index page  

Auto comp firms can access EU
New Delhi: Indian automobile component makers can now access the $7-billion EU market as the European Union is set to relax import norms and relax the requirement of allowing exports only from original equipment manufacturers (OEMs). This means companies can sell directly in the after-sales (or replacement) market. Till now, Indian auto spare parts manufacturers were exporting components directly to automobile companies and were not allowed to sell in the after-sales market.

The relaxation becomes effective from January next year. This means that auto component exports, pegged at a mere $1.25 billion, would now have access to the $7-billion EU auto component market.
Back to News Review index page  

Business confidence receding: CII
New Delhi: India Inc is not as optimistic about the country's growth prospects as it was in the first half of the year says CII.

According to the Confederation of Indian Industry's (CII's) 62nd Business Outlook survey, the Business Confidence Index for the second half of the financial year has dropped by 1.2 points to 64.8. In the first six months, India Inc was upbeat on growth, expecting the economy to grow over 7 per cent.

The survey for October 2004-March 2005 shows that 37 per cent of the respondents expect GDP growth to be between 6 per cent and 6.5 per cent for the current financial year. 26 per cent of the companies questioned feel growth in 2004-05 will be 6.5-7 per cent an equal number of companies say the economy will grow 5.5-6 per cent. The rest (11 per cent) feel growth will be below 5 per cent.
Back to News Review index page  

Premji figures 11th on Financial Times list of 'billionaires with heart'
New Delhi: Azim Premji, chairman Wipro, is the only Indian (ranked 11th) in the Financial Times special report of the top 25 dollar-billionaires who are doing the most to shape the world.

The report listed out the super-rich including nearly 600 dollar-billionaires around the globe and has named the top 25 "who are changing the way people live."

The paper estimates Premji's net worth at $6.7 billion, and says he has done much to change the structure of international business and ultimately affect people's lives by winning in the global IT market.

Premji's charitable foundation does more work on education in poor rural areas, giving $5 million a year, the Financial Times says.

Microsoft's Bill Gates heads the list, with an estimated net worth of $46.6 billion. Other inclusions are media mogul Rupert Murdoch; Soros Fund Management chief, George Soros; Italy's Prime Minister, Silvio Berlusconi and; Intel Chairman Emeritus, Gordon Moore.
Back to News Review index page  

India's forex reserves soar
Mumbai: India's foreign exchange reserves rose to $122.224 billion on November 5 from $121.18 billion a week earlier, according to the Reserve Bank of India's weekly statistical supplement released on November 13.

The Reserve Bank of India said foreign currency assets expressed in US dollar terms included the effect of appreciation or depreciation of other currencies held in its reserves such as the euro, pound sterling and yen.

The reserves include India's Reserve Tranche Position (RTP) in the International Monetary Fund.
Back to News Review index page  

India, Singapore to sign free trade agreement
Singapore: India and Singapore are set to sign a comprehensive trade pact with India after a regional leaders' summit in Laos later this month, according to the Straits Times newspaper and government officials here.

As a result of the agreement, resource-poor Singapore will receive concessions on its $3 billion exports almost immediately after the Comprehensive Economic Cooperation Agreement comes into effect, the said.

India, meanwhile, will gain greater access to Singapore's services industry while airlines in both countries would be looking at increasing flights and destinations, the paper added.

Bilateral trade between the two countries is worth about $5 billion at present.

The trade pact will be India's second after its deal with Sri Lanka. New Delhi is also pursuing an agreement with Asean and considering deals with China and Japan.
Back to News Review index page