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Govt to dilute fringe benefit tax

     New Delhi: The Parliament has passed the Finance Bill 2005-06 with amendments like diluting the controversial Fringe Benefit Tax (FBT), exempting savings account from the 0.1 banking cash transaction tax and raising income tax exemption limit for women and senior citizens. The Government has decided to move an official amendment to the Finance Bill even as NDA returned to the House after a three-day boycott to participate in the debate involving the passage of the Bill. Retaining the overall rate of the controversial Fringe Benefit Tax (FBT) at 30 per cent, Finance Minister P Chidambaram however diluted some key provisions of the FBT. The controversial 0.1 percent tax on the withdrawal of 10,000 or more rupees has been taken back. Now the withdrawal from savings bank accounts will be totally exempted. However the withdrawal from current accounts and term deposits will attract the tax. Withdrawal beyond Rs. 25,000 from current accounts by individuals and Rs. one lakh by companies and others will attract the 0.1 per cent tax. Withdrawal from the term deposits will also attract this tax. Income tax exemption limit for women has been raised by another Rs. 10,000 and that for senior citizens by Rs. 35,000. Now income tax exemption limit for women has been increased to 1,35,000 and for senior citizens to 1,85,000.

      In the the budget proposals, the Finance Minister has proposed to hike exemption limit for women to Rs 1,25,000 and senior citizens to Rs 1,50,000 In the Finance Bill, Chidambaram had originally proposed 0.1 per cent banking cash transaction tax on all withdrawals beyond Rs 10,000. Expenditure on advertisement has been excluded from levy of fringe benefit tax. But any privilege, service or amenity provided directly or indirectly by an employer by way of reimbursement or otherwise to employees will attract FBT, which is to be paid by employers. Similarly, any free or concessional ticket provided by the employer for private journeys of employees or their family members and any contribution to an approved superannuating fund for employees will come under the purview of FBT. Entertainment, provision of hospitality of every kind by the employer to any person, whether by way of provision of food or beverages or in any other manner will attract FBT. This includes any expenditure on or payment for food or beverages provided to employees in office or factories and any expenditure or payment through paid vouchers usable at eating joints or outlets and conference, other than fee for participation by employees.

     Expenditure on employees welfare will attract FBT but not the expenditure incurred or payment made to fulfill any statutory obligation or mitigate occupational hazard or provide first aid facilities in hospital or dispensary run by employers. Other expenditures that will come under FBT are conveyance, tour and travel including foreign travel, use of hotel, boarding and lodging facilities, repair, running, maintenance of motorcars and aircraft and the amount depreciation on them. Use of telephone including mobile phone will attract FBT but expenditure on leased telephone line will be exempt. Maintenance of any accommodation like guest house except those used for training purposes, festival celebrations, use of health club and similar facilities, use of any other club facilities, gifts and scholarships will come under FBT.

     The following are highlights of what Finance Minister Chidambaran announced on the floor of Parliament: Expenses on conferences to come under FBT Repairs and maintenance of cars to come under FBT Guest house and club facilities, gifts to be under FBT Foreign travel expenses to be under FBT Sales promotion expenses exempted from FBT Contribution to superannuation funds to be under FBT

     Meanwhile, the NDA has decided to break its three-day boycott of Lok Sabha and participate in the discussions on the Finance Bill. BJP Parliamentary Party spokesman V K Malhotra told reporters that by participating in the Finance Bill debate, NDA wanted to blow the whistle on the Government's claim that the Opposition had not taken part in the Budgetary discussions for the second consecutive term.

567 tribals reconverted to Hinduism in Orissa district (Go To Top)

     Bargadh (Orissa): Around 567 people belonging to 122 families today re-embraced Hinduism in a function organised by the Vishwa Hindu Parishad in Bargadh district of Orissa. These people who had earlier converted to Christianity say that thje promises made to them during the conversion, were never fulfilled. Conversion has always been an emotive issue in Orissa. Hindu organisations have been accusing the Christian missionaries of luring the tribals into Christianity by Promising them money. In the recent time, various Sangh Parivar outfits have struck back with a vengeance reconverting various converted individuals back into Hinduism. "They said that many Christians traits have been ingrained in them and they said that they want to leave those traits. They further said that they want to accept the Hindu religion of their fore-fathers. They came to us and our workers gathered them and we arranged for their home coming after a religious function," said Dharam N Sharma, Secretary Vishwa Hindu Parishad. Those whio returned to the fold of Hinduism have accused the Christian missionaries of reneging on the promises made during their early conversion. "They promise us money and jobs and lure us into conversion. We have clarified that we do not need them. We are Indians and will remain as Hindus," said Balram Nath, a local who returned to Hinduism. The function was marked with religious ablution of those who reconverted. The organisers tied holy strands on the converts to mark their return into the Hinduism.

LS passes Finance Bill  (Go To Top)

     New Delhi: The Lok Sabha today passed the Finance Bill, 2005, of Rs 3,91,200 crores after a marathon discussion of nearly ten hours spanning over four days. Union Finance Minister P. Chidambaram replied to the discussion as the Opposition took part on the last day of the discussion over the Bill. As some the amendments, the Finance Minister raised the permissible limit of non-taxed withdrawals on a single day from Rs 10,000 to Rs 25,000. He also promised to use his "persuasive skills" to ask every state government not to levy VAT (or Sales Tax) on the CSD canteens selling goods of daily requirement to the defence personnel. The amendments to the Finance Bill, 2005, indicate that while withdrawal from Savings Bank accounts will be totally exempted from the 0.1 percent tax, withdrawal beyond Rs 25,000 by individuals and Rs one lakh by companies and others will attract the 0.1 per cent tax.

     Withdrawal from term deposits will too attract this tax. As relief to women and senior citizens, PC proposed to raise the Income Tax exemption limit for women by another Rs 10,000 to Rs 1,35,000 and for senior citizens by additional Rs 35,000 to Rs 1,85,000. Correspondingly the Income Tax rates have been revised for women and senior citizens, Chidambaram said, adding women earning between Rs 1,35,000 and Rs 1,50,000 will attract 10 per cent tax and between Rs 1,50,000 and Rs 2,50,000 will attract 20 per cent. Beyond Rs. 2,50,000, he said, the tax rate would be 30 per cent. Now, after the amendments, for senior citizens, Income between Rs 1,85,000 and 2,50,000 will attract 20 per cent and beyond Rs 2,50,000, it would be 30 per cent. Replying to BJP deputy leader VK Malhotras contention that the Budget contained tough provisions for the women and senior citizens as it reduced their tax rebate, PC said his policy was to encourage tax savings and not tax rebates. "Let the women and senior citizens save their incomes under any of the 17 heads and claim tax benefits," he said.

18 Shiv Sainiks held for ransacking power utility office (Go To Top)

     Pune: Pune police arrested 18 Shiv Sainiks on Monday for ransacking the local office of the state electricity board. The activists were protesting the acute power crisis in the city. A huge number of Shiv Sena activists entered the premises of the Maharashtra State Electricity Board (MSEB) office in Pune and ransacked it. They also set on fire a section of the office, besides beating up some employees. "We were sitting inside the cabin and they threw the chair on the table and ransacked the office. All of a sudden dozens of Shiv Sena activists came inside and burnt some furniture also. Then I rushed to contact my officer," said Prahlad Salunke, Superintending Engineer, MSEB. Some journalists also suffered injuries in the scuffle between the activists and MSEB workers. MSEB has said that the power situation across Maharashtra state would remain critical for next three years. India's most industrialized state is reeling under a 4,000- MegaWatt power shortage, which has hit all areas across the state other than the state capital Mumbai. Industry estimates power cuts result in a loss of one billion rupees a day.

In the city of Taj Mahal, a major eye selling racket is busted (Go To Top)

     Agra (Uttar Pradesh): Agra may be famous for its Taj Mahal, but it has acquired a noteriety as well for incidents that more often defy the value for humane existence That the lust for money can stoop man to such levels, no one would have thought. People can even remove eyes from the corpses to sell them off for hefty amounts. In a bizarre incident in Agra, the police busted a racket involving senior medical personnel involved in selling donated eyes by removing them from corpses. T P Singh, a technician by profession used to take out eyes from dead bodies and used to sell them to people. Singh had been pursuing this business for years now. But recently during a sting operation by a T V channel he was caught taking money in return for an eye. Though the police have registered a case against Singh, he denies the charges. Singh said that the people he was talking to were donors and nothing else. "He was a donor and he wanted to donate the eye. So I went and took the eye and came back", said T P Singh, the accused. "This offence is cognisable under the Organs Transplant Act 1992. We have lodged an F.I.R and will take appropriate action. This possibility cannot be ruled out that the accused has carried out such transactions in the past also; this is a matter of investigation. It would be clear only after enquiring with the donors that if the organs were donated voluntarily or there was money involved in the transaction. This is a matter of investigation", said Rajiv Krishna, SSP, Agra. Angry residents of Agra, especially the medical fraternity has demanded quick and strict action against it. "These kinds of incidents leave a black mark on our profession. All those who are concerned will come together and raise a voice against it", said Dr. Alka Sen, a local medico.

Two Communist leaders freed in Nepal (Go To Top)

     Kathmandu: Two Communist Party leaders, who had been placed under house arrest following the February 1 Royal coup in Nepal, were released on Monday. CPN-UML General Secretary Madhav Kumar Nepal and the party's Standing Committee member Bamdev Gautam were released this morning, but the authorities decided to extend the detention of former Deputy Prime Minister Ramchandra Poudel by another three months.The district administration office in Tanahun has reportedly been handed over a warrant extending Poudel's custody in the Damauli prison for alleged violation of the Public Security Act. On Sunday, the government withdrew security personnel from Madhav Kumar Nepal's residence. Nepal was placed under house arrest along with Nepali Congress President Girija Prasad Koirala, who was released a couple of weeks ago. The prison term of former minister and CPN-UML standing committee member Ishwor Pokharel, who is in the Saptari jail has also been extended by another three months. The NCP-UML is one of the coalition parties in the sacked government headed by Sher Bahadur Deuba.

     On Sunday, thousands of Nepalis marched through the streets of Kathmandu in protest against King Gyanendra. Declaring the lifting of the emergency an eyewash, over 8,000 placard-carrying unionists and political activists shouted slogans against Gyanendra's February 1 move to sack the Sher Bahadur Deuba government, impose emergency rule, detain political leaders and suspend civil liberties. "Withdraw the royal proclamation of February 1," union leaders shouted as they marched in May Day rallies in Kathmandu on Sunday. "Restore democracy and free political leaders," read a placard carried by one protester. Parties claimed that hundreds of their activists had still not been freed despite the lifting of the emergency rule. King Gyanendra seized power to end a nine-year Maoist revolt that has killed more than 11,000 people. The Maoists want to overthrow the monarchy and set up a Communist republic in one of the world's poorest countries.

Sania on career best ranking -72

     New Delhi: Indian tennis sensation, Sania Mirza, today reached the WTA rankings of 72-her career best. The WTA rankings were released today. Mirza earlier got a wild card to participate in the French Open, although she is still recovering from an ankle injury. She was forced to miss India's campaign in the recent Fed Cup tennis tournament due to the injury. Although Sania is having problems because of the injury, she won her first WTA title in Hyderabad after putting up a brave fight against eventual winner Serena Williams in the third round of the Australian Open.

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