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biz

THE NAVHIND TIMES

thursDAY, April 16, 2015

New pension scheme

BY TENSING RODRIGUES
In his recent budget, the Finance Minister
has proposed an additional tax deduction for
contributions to NPS
up to ` 50,000. Is it advisable to invest in NPS
now?
 Jaime Fernandes
First let us place this
additional tax saving
opportunity in proper
context. Under the existing tax provisions investments and payments
become eligible for deduction from the taxable
income under three sections: 80C, 80CCC and
80CCD. Section 80C covers deduction in respect
of life insurance premia,
deferred annuity, contributions to provident
fund, subscription to
certain equity shares or
debentures, etc.; section
80CCC covers deduction
in respect of contribution
to certain pension funds
(pension funds operated
by insurance companies);
and section 80CCD covers deduction in respect
of contribution to pension scheme of Central
Government (that is
NPS). Section 80CCE
sets an overall limit for
deductions under these
three sections (80C,

80CCC and 80CCD) to

` 1,50,000 starting from
AY 2015-16. The new
sub-section 80CCD(1B)
creates an additional
deduction of ` 50,000
beyond the limit set by
section 80CCE. That is,
one can now save/invest
and claim deduction for
` 1,50,000 + ` 1,50,000 = `
2,00,000.
Before I answer your
specific question: Is it
advisable to invest in NPS
now?, let me just comment on these changes
in tax provisions with
respect to NPS. Section
80CCD was introduced
exclusively for NPS; why
was not NPS clubbed with
other pension products
under section 80CCC?
After that the government introduced a new
subsection
80CCD(2)
providing for deduction
of contribution made
by the employer into a
taxpayers NPS account.
Such a provision does
not exist for any other
product covered by sections 80C or 80CCC; the
contributions made by
the employer to life insurance, provident fund,
or other pension funds,
are not eligible for deduction; why such a benefit to NPS only? Now the
government has given

additional deduction for tunity to postpone tax,

contributions to NPS. rather than save tax. One
argument that
This makes it
is usually adamply clear that
vanced in case
the government
of E-E-T is that
is giving special
when you start
treatment
to
receiving penNPS, and veersion, your ining away from
come is likely to
creating a level
be low, possibly
playing field for
Your below the taxaall similar prodble limit. That is
ucts. This is a
a very untenable
patently wrong money
assumption; in
policy.
Now, let me answer most of the cases, it will
your query Is it advisable not hold good. In the case
to invest in NPS now?. of commutation it could
NPS is Exempt-Exempt- be really a problem, as
Tax product. What it suddenly a big sum would
means is that when you get added to your taxable
contribute to it, you get income for that year; so
a tax benefit if you con- it would be like getting
tribute ` 2,00,000, that caught in a cloudburst.
Now what is the situmuch of your current income becomes tax-free. ation in case of 80C prodWhen you earn interest ucts? PPF is Exempton the contribution (as Exempt-Exempt product
long as it remains there), that you pay tax at no
you pay no tax on that stage. ELSS too is E-E-E.
income (on the interest). NSC too is E-E-E, taking
But when you withdraw into account the fact that
from the accumulated the interest from NSC is
balance, as pension, you taxable but also eligible
pay tax. If you with- under 80C. Insurance
draw as a commutation premium I would not
too, you pay tax on the consider as a tax saving
amount withdrawn; it alternative (you should
gets added to your taxable buy insurance for protecincome for that year. So tion of your dependents,
the tax that you had saved not to save tax), but even
paying, you pay then. So that is E-E-E, subject to
NPS offers you an oppor- certain conditions.

Please send your comments and queries to : <investment.ideas.shop@gmail.com>

India Inc seeks

further cut in
interest rates
UNI
NEW DELHI: Encouraged
by drop in inflation, industry chambers on Wednesday pitched for further
cuts in the interest rates
by the Reserve Bank of
India to jack up economic
growth.
FICCI, ASSOCHAM
and PhD stated that with
the wholesale and retail inflation falling significantly,
the countries macroeconomic situation looks
comfortable.
They said there was
a strong case for cut in
lending rates to improve
the consumer demand.
The annual inflation, as
measured by the Wholesale Price Index (WPI),
dropped further to (-) 2.33
per cent in March from (-)
2.06 per cent in February
2015 on the back of sharp
decline in prices of potato,
fuel and power, minerals
and sugar.
Going ahead, it will
be imperative to support
this buoyancy to assure a
sustainable turn around in
the industrial sector. We
look forward to another
round of downward revision in the repo rate in
June 2015 or perhaps ear- Electricians from the Manila Electric Railroad and Light Company (MERALCO) maintain a secondary translier, Jyotsna Suri, presi- mission line in Manila on Wednesday. MERALCO is the largest electric distribution utility in the Philippines,
dent, FICCI said.

a 111-year-old company that serves more than five million customers. 

Top PSUs sign tech

pacts with global firms

Sensex plunges 245 pts, ends below 29K mark

NEW DELHI: Leading public sector firms, including

BHEL,
Instrumentation
Ltd and HMT have firmed
up as many as six MoUs with
top global companies from
Germany, Switzerland, Russia and Bulgaria for scaling
up Indian manufacturing in
high-tech areas such as precision instrumentation and
engineering solutions at the
ongoing Hannover Messe in
Germany.
These
Memoranda
of Understanding were
signed on Tuesday at a
special event in Hannover,
organised by the EEPC India, the countrys apex engineering organisation.
The MoUs included
tie-ups between BHEL
and Russian Joint Stock
Company, INTMA for up-

MUMBAI: The benchmark

BSE Sensex on Wednesday
fell 245 points to end below 29,000-mark, mainly
bogged down by last-hour
selling in healthcare, capital goods and tech stocks
as investors resorted to
profit-booking ahead of
the start of result season
on Wednesday.
The exporters stocks
fell on concerns that the
strength in the rupee after
inflation data may persist
and hurt their revenues,
brokers said.
Meanwhile, continuing the deflationary trend
for fifth month in a row,
inflation touched a record
low of (-)2.33 per cent in
March on cheaper manufactured goods and food
items, prompting industry

coming projects in Russia

and Kazakhstan, REIL and
Milkotronics Ltd, Bulgaria
for manufacturing milk
analyzers in India, Instrumentations Ltd and KE
Kauer Engineering, Germany for control valves.
Besides, three MoUs
were signed by HMT with
Num Controls, Switzerland
for CNC controls, systems
and drives; FT Machine
Tools, Germany for flow
forming machines and EnitGmbH, Germany for total
engineering solutions.
Secretary in the Department of Heavy Industry Rajan Katoch announced 250 million dollar
R & D project to develop
Advanced Ultra Super
Critical Technology for
power generation. UNI

Honda unveils four

new bike models

PANAJI: Honda Motorcycle and Scooter

India Pvt Ltd (HMSI) has recently launched
4 new models in the market. All this
products are made more attractive and user
friendly. The CB Shine
incorporates new designs
that include graphics,
side panels, trendy visor,
tail light, tank and alloy
wheels and a new refined
HET engine. In terms of
safety also, the addition
of combi-breaking
system (CBS) ensures higher safety for the
rider by reducing breaking distances. The
Dream Yuga 2015 will have new stickers and
graphics on the front cowl, side panel and
fuel tank. The engine includes a new Honda
red coloured logo and will come in 3 colours.
The Dream Neo 2015 too gets new graphics
on tank, side cowl and stickers on side panel
and the premium red Honda logo. And lastly,
the Dio will be offered with new stickers,
side panel graphics and logo and will be
available in dual tone colour options.

Audi launches updated Q5

PANAJI: Audi launched its updated

Q5 in the Goa market on Wednesday.
The improved, luxury, SUV has
many additional features in design,
infotainment, assistance systems and
engines while retaining its sporty,
attractive and versatile identity, said
Ashwin Sirsat, general manager, Audi
dealership, Porvorim. The current upgrade
is the third modification of Q5 after its
launch in India in 2012. The car is in
direct competition with Mercedes Mx
and BMW - X5. On-road cost starts at
` 1.5 crore and goes up to ` 1.60 crore,
depending on the model. Audi entered
the Goa market in 2012 and is the market
leader among luxury cars, said Shirsat.
Sales are about 12-15 cars a month with
professionals like doctors and also
hoteliers emerging as top buyers in recent
years. The Goa market for luxury fourwheelers is estimated at 350 cars annually.
NT

PTI

30,000

BSE SENSEX

29,459.14

29,500
29,000

-244.75

28,500
28,000

28,799.69

27,500
27,000

11 13 17 19 23 25 27 31 1
March 2015

Intra-day on April 15
29,100
29,000

Previous close:
29,044.44

Open:

29,087.25

28,900

Close:

28,799.69

28,800
28,700

9 10 11 12 13 14

KBK Infographics

9 13 15
April

Change

-244.75 (-0.84%)
Top
% Top
Losers
Gainers %

BHEL

-3.43 SSLT

3.32

M&M

-3.26 ONGC

1.76

Tata
SBI
Motors -2.81

1.59

Wipro -2.70 ITC

1.23

15 16 Axis

Bank

Tata

-2.65 Power

1.19

to renew its demand for

further rate cut by the Reserve Bank.
The 30-share BSE
index resumed higher
at 29,087.25 against last
close of 29,044.44 points.
The barometer firmed up
further to the days high
of 29,094.61 on the back of
easing retail inflation.
However,
selling
in blue-chips in the late
trade dragged the index

below the 29,000-level.

It finally settled 244.75
points or 0.84 per cent
lower at 28,799.69.
Of 30-Sensex kitty, 23
stocks ended lower, while
7 other finished higher.
The 50-issue NSE
Nifty
slipped
below
8,800-level by falling
83.80 points or 0.95 per
cent to close at 8,750.20.
Intraday, it hovered between
8,840.80
and
8,722.40.
Tata
Consultancy
Services will report its
result on Thursday, while
Reliance Industries will
declare its results for the
quarter ended March on
Friday.
On Sensex the biggest losers included, Tata
Motors, Infosys, Axis
Bank, Sun Pharma, M&M,
HDFC Bank and BHEL.

in short

AFP

EU charges Google with

market abuse, to probe Android

Cap on withdrawals
through ATM is
policy decision: RBI

AFP

PTI

BRUSSELS: The EU on
Wednesday
formally
charged US Internet giant
Google with abusing its
search engine dominance
and launched a sensitive
probe into its omnipresent
Android mobile phone operating system.
On the first count,
the Commission said it
had sent a formal Statement of Objections to
Google, charging it with
systematically favouring
its own comparison shopping product in its general
search results pages.
The Commissions
preliminary view is that
such conduct infringes EU
anti-trust rules because
it stifles competition and
harms consumers, a statement said. If found at fault
under EU anti-trust rules,
a company faces a fine of
up to 10 per cent of its annual sales -- in Googles
case, $66 billion in 2014.
The Commission said
it would continue to examine three other areas of
concern -- copying of rivals web content, exclusive advertising regimes
and undue restrictions on
advertisers -- identified in
probes dating back to 2010.
In a potentially hugely

important development, it
also announced a separate
investigation into Googles conduct as regards the
mobile operating system
Android.
The
investigation
will focus on whether
Google has entered into
anti-competitive
agreements or abused a possible
dominant position in the
field of operating systems,
applications and services
for smart mobile devices,
the statement said.
EU
Competition
Commissioner Margrethe
Vestager said Android was
hugely important and it
was vital it be open to all.
Smartphones, tablets and similar devices
play an increasing role in
many peoples daily lives
and I want to make sure
the markets in this area
can flourish without anticompetitive constraints
imposed by any company,
she said. Google accounts
for about 90 per cent of the
EU search market and now
has 10 weeks to reply on
the search count.
Vestager told a press
conference that the door remained open to an amicable
settlement and she called
on Google to take every opportunity to discuss the issues with Brussels.

NEW DELHI: The Reserve

Bank of India (RBI) on
Wednesday told the Delhi
High Court that putting
a cap on the number of
withdrawals by banking customers using their
ATM cards without being
charged, is a policy decision taken in public interest.
A bench of Chief Justice G Rohini and Justice
Rajiv Sahai was also informed by RBI that the
ATM facility was made
available with a view to
reduce cash usage and increase electronic transactions in the country.
The court was hearing a public interest litigation (PIL) filed by advocate
Swati Aggarwal, seeking
directions to allow banking customers to make
an unlimited number of
transactions free of any
charge on their own bank
ATMs.
Indias Central Banking Institution, which controls the Monetary Policy
of the Rupee, however,
opposed the PIL, saying
the petition is not maintainable and is liable to be
dismissed, as RBI has not
violated any laws of the
land.

Tech Mahindra teams up with Comverse

Sai Service Goa excelled in the MSIL certification programmeforWest 1 Regionin Mumbai recently. Sai Service Goa
won the first 3 places in sales expert category. The first place went to Nandesh Falari, while the second and third places
were awarded to Ameya Pednekar and SangreshVerlekar respectively. Also, the first place in the POC sales category
was given to Sharmila Kulabkar while Prajyot Potnis and Bhupesh Kamat were adjudged as the Emerging Stars.

Knight Frank collaborates with

Rolls-Royce, Anmol Jewellers

MUMBAI:Knight Frank, in association

with Rolls-RoyceMotor Cars Mumbaiand
Anmol Jewellers, hosted an event to
celebrate the launch of The Wealth Report
2015 recently in Mumbai. This yearly issue
provides a unique insight into the attitudes
of ultra-high-net-worth individuals towards
property, investments and spending
patterns across the globe and provides an
annual analysis of wealth flow and property
investment around the world.NT

Manish Jain is new

chairman of GJF

MUMBAI: Manish Jainhas been

unanimously appointed as the chairman
of the All India Gems and Jewellery
Trade Federation (GJF) for the year
2015-17. Jain is the founding member of
GJF, the national trade federation for the
promotion and growth of trade in Gems
and Jewellery (G&J) sector across India.
Jain, the son of freedom fighter Ishwarlal
Shankarlal Jain, is the managing director of

Rajmal Lakhichand Group, a 161-year gold

jewellery firm, which has been established
since 1854 in Jalgaon, Maharashtra.He
is also a philanthropist and social worker
addressing various causes.

Parineeti Chopra to endorse

Siyarams womens brand

MUMBAI:The House of Siyarams unveiled

its first-ever ready-to-wear fashionable
Indian ethnic and lifestyle brandSiya for
women. Parineeti Chopra has been roped
in as the first brand ambassador for Siya
womens collection by Siyarams.Chopra
unveiled the new logo, collections and ad
campaign of Siya for women by Siyarams in
the presence of the management team and
Kishan Poddar at a studio in Mumbai.She
shot for Siyaram exclusively as the new
brand ambassador.Siyas eclectic range
includes best of the finest pure fabrics
designed to display elegance and brings
out the real beauty of every girl. Priced
from ` 700 onwards, Siya will eventually be
available at thousands of outlets in all the
cities across India similar to Siyarams wide
network spread which is about 1 lakh outlets
pan India.

REUTERS
TEL AVIV: Information
technology group Tech
Mahindra is partnering
with US-Israeli Comverse
Inc to set up a research
and development centre
in Israel.
The two companies
did not disclose financial
details.
Manish Vyas, president of Tech Mahindras
communications group,
said the deal -- which
would bring the Indian
company hundreds of
engineers -- will help the
firm more than double its
engineering business revenue within a few years.
The company does about
$400 million annually in
engineering, about half of
that is in telecoms.
Engineering is a
very large part of our
business but we want to
make it even bigger. We
believe it can be a billion
dollars annually in the
next few years, he said.
Given the culture of entrepreneurship in Israel
we need to be here.
Under the strategic

relationship, Tech Mahindra will be responsible

for R&D and customer
services while Comverse will be in charge of
product management and
sales.
The venture into
Israel by Tech Mahindra,
which is part of the 16.5
billion Mahindra conglomerate, is the latest
sign of booming ties between the countries since
Indian Prime Minister
Narendra Modi came to
power last year.
Tech Mahindra
executive vice chairman
Vineet Nayyar said the
companys global activities will be concentrated
in three countries - India,
the United States and
Israel.
Tech Mahindra,
which employees over
98,000 people in 51 countries, will take on about
400 Comverse workers,
up to 300 from Israel and
the rest mainly from the
United States, France,
Japan, Bulgaria and India.
Comverse last year
began a restructuring
that included reducing its

workforce by 14 percent.
We hope to gain access to world class talent,
Vyas said. We have a big
presence in Europe, India
and the US. (But) Israel was missing from the
global footprint in terms
of talent.
About half of Tech
Mahindras business is
in telecoms with the rest
from banking, healthcare
and manufacturing.
Tech Mahindra
owns Israels Leadcom,
a provider of network
services for telecom
companies, after it
bought Leadcoms parent Lightbridge Communications in February.
Leadcom has about
25 workers in Israel and
Vyas said the company
is still working out what
the relationship will be
between Leadcom and the
Comverse staff.
He said Israel fits in
nicely with the companys
long-term strategy, which
includes a programme
that enable employees to
start up their own businesses with equity from
Tech Mahindra.