The Hindu Business Line : Why restrict proxy's right to speak?

I am inclined to agree with you. The restriction is not as unfair as it is ridiculous, because people who want to engage a professional speaker have their way come what may.

All that it requires to circumvent this seemingly solemn restriction is to arm the intended speaker with one share so that his status morphs from that of proxy with its belittling implications to that of a full-fledged shareholder with the right to speak as well.

No law should lend itself to be made a laughing stock. No restriction should be imposed that can be got round without any difficulty.

At any rate, the fear that professional speakers would come to dominate company meetings is largely exaggerated.

If both the sides can hire the best speakers, corporate democracy rather would be better served. In short, instead of baulking at proxies, the Government should shed the age-old shibboleths underpinning the law on proxy.

Principal vs interest

I have a query on taxation. Please confirm the treatment of principal and interest on housing loan in Form 16 for financial year 2005-06. The principal is going to be included in Section 80C, where the total limit is Rs 1 lakh and will be deducted from gross salary.

Please confirm.

Avneesh Trivedi, Kanpur

Interest is deductible while computing income from house property. Suppose this happens to be your only self-occupied house, it will qualify for nil annual value resulting in a loss to the extent of interest.

This loss from house property can be set off against your salary income. If you have capital gains or income from other sources all these would be added to your salary and gross total income (GTI) determined.

From the GTI, deduction under Section 80C, among others, would be granted.

(ASK! Send in your querieson accounting, auditing, corporate law and taxation to ask@thehindu.co.in)

S. Murlidharan

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