The Hindu Business Line : Sunday, February 25, 2007

NRIS
State Bank of Travancore hikes interest rates
The State Bank of Travancore has hiked the interest rates on domestic term deposits and non-resident ordinary term deposits for various periods with effect from February 26. The revised rates are: 4.50 per cent for seven days to 14 days (Rs 25 ... More

BUDGET
I-T exemption limit may be raised to Rs 1.5 lakh
With direct tax revenues being buoyant this year, taxpayers could look forward to some relief in the form of an increase in income-tax exemption limit from Rs 1 lakh at present to Rs 1.5 lakh per annum. According to highly placed sources in ... More

Raise basic I-T exemption limit
I would like to request the Finance Minister to bring back the standard deduction for salaried employees and also to increase the basic exemption limit as salaried employees bear the brunt of taxes. Mili Rastogi, Assistant System Analyst, ... More

Differential tax slabs for corporates
It is time now to bring in differential tax slabs for corporates as is done for individuals. It may not be appropriate to have uniform tax slabs for corporates and the Government should encourage small and medium scale industries to expand by ... More

Withdraw service tax on exports biz
Presumptive tax regime, which will ensure a simple and clear tax environment, should be introduced to encourage foreign investments in this sector. The service tax should be withdrawn for the export business. There should be no excise on ... More

Technical analysis of budget scenarios
Sensex can stabilise above 12870 and Nifty above 3723 even if there is a knee-jerk reaction to Budget. More

Restore standard deduction
In the Finance Act 2006, standard deduction was removed. Salaried class are not allowed any expenses and they pay tax before they spend anything, whereas business class assessees are paying tax on income after making all the expenses. The ... More

Give prime importance to agriculture sector
Agriculture is to be given prime importance in the national economic activities. The fact that farmers are not getting their due is evident from the increasing suicide attempts of late. The reasons cited for the same is lack of irrigation, ... More

Need for fair deal on service tax
When service tax was levied on services rendered by lorry transport agents, lorry transport agencies and transporters throughout the country resorted to nationwide bandh, paralysing the movement of essential goods, which forced the Union ... More

Service tax must be based on usage
There should be no flat rate service tax. It should be progressive according to the usage. So the flat telephone service tax may be reduced to minimum 2 per cent for those who use up to Rs 500 and progressively enhanced to 5-10 per cent. ... More

Tax income or expenditure
I would like the Finance Minister to either tax income or expenditure. The service tax is another version of expenditure tax that is paid out of taxable net income received by people. Avoid multiple taxation. Abolish income tax and concentrate ... More

Reduce corporate, personal tax rates
Reduce the corporate and personal tax rates to 20 per cent. Reduce service tax rate to 8 per cent. Club the dividends from companies to the taxable income if the taxable income of a person/HUF/ company exceeds Rs 1 crore per year. Impose a ... More

Allow depreciation sops for salaried
Salaried class assessees should be allowed depreciation at least on the vehicles they use to commute between residence and office, and on computers. Business class assessees claim depreciation on vehicles/computers against the income from ... More

Independent panel to curb black money
An independent monitoring committee should be introduced to curb black money from the system. Excise duty on premium cars must be hiked. Tax on LTA on foreign travels should be made nil. Strict norm on purchase and sale of property must be ... More

Give more sops to investments
The Finance Minister must do something as far as direct taxes are concerned. There has been a reasonable direct tax collection this time and could be made better provided more rationalisation occurs. The zero-tax limits for senior citizens should ... More

More for senior citizens
It is high time interest rate on deposits of senior citizens is increased to a minimum of 12 per cent, tax free. Further, the mediclaim insurance age limit should be increased to 75 years with premium at 50 per cent level from the existing. All ... More

Allocate more for defence spending
I want reduction in prices of electronic and electrical items, more subsidies for farmers, increase in prices of cigarettes, tobacco, decrease in prices for petrol and diesel. There must be more allocation for defence spending, including R&D and More

Abolish special additional duty on all imports
To control inflation, the Government should abolish Special Additional duty on all imports. The duty loss would be lower as it is Modvattable. The other way is by disinvestment of PSUs. Infrastructure projects like airports, have been privatised. ... More

Focus on dryland farming
The ensuing Budget must focus on dryland farming. Although Green Revolution boosted wheat and paddy output through extensive - and often reckless - use of better seeds and chemicals, making India self-sufficient in food, the food production is ... More

Unearned income must be taxed more
We have the following suggestions based on basic tenets: Unearned income should be taxed at higher rates than earned income (e.g., manufacturing, services units income), compliance costs should be low, tax avoidance methods should be minimised ... More

ECONOMY
SMART MESSAGE
Guarding against rise in prices
Remember that inflation influences your personal investment decisions in several ways. More

INFRASTRUCTURE
ONGC-Cairn pipeline project: Engineers India to do feasibility study
To look at cost recovery, size of pipeline; Cairn Energy chief to visit India soon More

PETROLEUM
ONGC appoints consultant for 3rd party audit of wells
Measures against incurring high exploratory costs More

CARS
SIAM suggests tax deduction for car loans
In a bid to ensure that new car sales are not affected by the increase in interest rates, the Society of Indian Automobile Manufacturers (SIAM) has suggested that a deduction in income-tax similar to housing loan should be granted for car loans. ... More

Question & Auto
I am planning to buy a new diesel car in the Rs 7-8 lakh price bracket. I am looking at either the Hyundai Verna or the Ford Fiesta. Which is the better option? I have heard that the Fiesta's ground clearance is very low. Also, is there ... More

INDUSTRY ASSOCIATIONS
Plea to include exports to CIS nations for duty credit benefits
FICCI has urged inclusion of Commonwealth of Independent States countries and trans-shipment exports in the eligibility criteria for duty credit benefit under the Focus Market Scheme. In its memorandum on the Foreign Trade Policy to the ... More

DISINVESTMENT
CPI opposes power PSUs divestment
The Communist Party of India (CPI) will oppose the disinvestment initiatives of the Union Government announced recently in the three power public sector units — Rural Electric Corporation, Power Grid Corporation of India ... More

WTO
Luxembourg sees key role for India in WTO talks
`EU, G-20 too have a crucial part in the progress of negotiations' More

RURAL DEVELOPMENT
Godrej Agrovet to focus on rural marts
Marts to help rural consumers in the buyback of output, crop finance, supply of agri-inputs and animal feeds, transfer of information (weather, price, and demand supply), etc More

EXPORTS & IMPORTS
Milk powder export ban: Casein makers unaffected
It may be pure coincidence, but among the leading casein manufacturers unaffected by the ban on milk powder exports is Dynamix Dairy Industries Ltd (DDIL), which has its unit at Baramati, the constituency of the Union Agriculture Minister, Mr ... More

VENTURE CAPITAL
VCs look for clear exit routes
Venture capitalists are experts who have the ability to take calculated risks to make innovative ideas a reality through encouraging new enterprise. — MR VISHNU VARSHNEY, CEO AND MD OF GVFL More