Companies & Sectors
Aircel-Maxis: ED charge sheets Dayanidhi Maran, others
New Delhi : Enforcement Directorate (ED) on Friday filed a charge sheet against former communications minister Dayanidhi Maran and five others involved in a money laundering case related to the Aircel-Maxis deal.
 
The charge sheet was filed before Special Judge O.P. Saini, who has fixed January 18 for further hearing.
 
ED has named Maran, his brothers Kalanithi Maran, Kalanithi's wife Kavery Kalanithi, company South Asia FM Ltd. (SAFL) and its managing director K. Shanmugam and firm Sun Direct TV Pvt. Ltd. (SDTPL) for money laundering of Rs.742.58 crore.
 
It was alleged that Dayanidhi Maran influenced a Malaysian businessman to buy Aircel by coercing its owner Sivasankaran to part with his stake.
 
The ED has booked the accused under various charges dealing with money laundering.
 
The investigation has revealed that Rs.742.58 crore was paid to Dayanidhi Maran by Mauritius based companies.
 
The money was paid to SDTPL and SAFL, both of which are owned and controlled by Kalanithi Maran.
 
The money was utilised by the two companies in their business, ED said.
 
The probe revealed that promoters of the SDTPL are Kalanithi Maran and Kavery Kalanithi.
 
"Dayanidhi Maran obtained the proceeds of crime to the tune of Rs.742.58 crore through the companies of his relatives by camouflaging the proceeds of crime as capital contribution in SDTPL and SAFL and has committed the offence of money laundering in receiving the said proceeds of crime in the said companies owned and controlled by his brother, Kalanithi Maran and Kavery Kalanithi," the investigation report said.
 
It added that Shanmugam was responsible for managing affairs of SAFL as managing director who assisted in money laundering process.
 
In this case of illegal gratification to Dayanidhi Maran, investigation under PMLA of Maxis, Berhad Malaysia, T. Ananda Krishnan, Augustus Ralph Marshall, South Asia Entertainment Holding Ltd (SAEHL), Mauritius, South Asia Software Technology Ltd (SASTL), Mauritius, South Asia Multimedia Technology Ltd, Mauritius (SAMTL) and Astro All Asia Networks Plc, Britain (Astro) is being carried out by sending Letter of Request to Mauritius and Malaysia, the ED stated.
 
The execution reports are awaited from these countries, it added.
 
Investigation pertaining to involvement of the foreign nationals and others was still being carried out, while further investigation was also being conducted related to Foreign Investment Promotion Board (FIPB) approval in Aircel-Maxis feal and other issues, it said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Nifty, Sensex may record a minor bounce – Weekly Closing Report
Nifty has to close above 7,670 for the first sign of a bullish trend
 
We had mentioned in last week’s closing report that Nifty, Sensex are in no man’s land as we enter 2016 and that Nifty has to stay above 7,850 for the uptrend to continue. The major indices in the Indian stock markets suffered a sharp correction and went below 7850 on the first day itself, that is, Monday and continued to head lower in line with the global cues – plunge in Chinese stock markets and geo-political tensions. On Friday, there was a minor recovery with the indices improving by 0.33%-0.44% over Thursday’s close due to value buying by investors. The trends of the major indices in India during the course of the week’s trading are given in the table below:
 
 
European shares fell on Monday on the first trading day of 2016 after weak Chinese data rekindled global growth worries, while oil prices jumped and bond yields dropped on rising tensions in the Middle East, reports Reuters. Chinese manufacturing surveys showed that any hopes for a recovery in the sector were premature. Adding to the worries, China's central bank fixed the yuan at a 4-1/2 year low. Chinese shares fell sharply, prompting the stock exchange to halt trading. European stocks followed Asia's lead. Germany's DAX dropped 3.4%. Investors were wondering how much further the U.S. Federal Reserve would raise rates this year after its first rate hike in almost a decade last month. 
 
Negative global cues, coupled with disappointing macro-data, subdued Indian equity markets on Tuesday. This led the Indian equity markets provisionally closing the day's trade in the red a day after it plunged to a new four-month low. Initially, the bellwether indices opened on a firm note in sync with their Asian peers. However, they soon receded on the back of negative international cues from the US, rising geo-political tensions in the Middle East and disappointing macro-data. Besides, investors were seen cautious regarding the upcoming macro-data on industrial output, retail inflation and the third-quarter earnings results which start from January 14. Nevertheless, some value buying and mildly positive Asian markets soothed investors' nerves.
 
Geo-political tensions, coupled with caution over upcoming macro-data and quarterly results, depressed Indian equity markets on Wednesday. Initially, the bellwether indices opened on a flat-to-negative range in the wake of two days of consecutive falls, disappointing domestic macro-data and global uncertainties. Nevertheless, both the indices soon pared their losses on the back of short-covering, value-buying and positive Asian markets' close. 
 
Finance Minister Arun Jaitley's comments on Tuesday regarding further reforms in the infrastructure sector also buoyed sentiments. However, the benchmarks soon receded, as investors were spooked over the rising geo-political tensions in the Far East following North Korea's reported testing of a thermo-nuclear device. In addition, volatility was stoked by the upcoming US non-farm payroll figures scheduled for release on late Thursday India time, along with minutes of latest FOMC (Federal Open Market Committee) meeting. Both the events could provide indications on future US rate hikes. Besides, caution prevailed over the upcoming domestic macro-data on industrial output, retail inflation and the third-quarter earnings results which start coming in from 12th January.
 
The Indian cabinet on Wednesday approved setting up of a credit guarantee fund for loans of Micro Units Development & Refinance Agency Ltd or MUDRA Bank. The fund is expected to guarantee loans worth more than Rs1 lakh crore to micro and small units in the first instance, the government said. The cabinet meeting chaired by Prime Minister Narendra Modi also gave its nod to covert MUDRA Ltd to MUDRA Small Industries Development Bank of India (MUDRA SIDBI Bank), a wholly owned subsidiary of SIDBI.
 
Panic selling triggered by a plunge in Chinese markets, coupled with rising geo-political tensions and upcoming US macro-economic data, dented Indian equity markets on Thursday. This led to the S & P BSE Sensex receding close to its 52-week low on a closing basis. The bellwether indices opened on a negative note following a rout in the Asian markets which was triggered by accelerated devaluation of the Chinese yuan, disappointing domestic macro-data and global uncertainties. Commodity prices, too, plunged as the economy of the world's largest consumer namely China struggled. The benchmark Shanghai Composite Index declined 7% within just 29 minutes, which led to a halt in trading, as the circuit breaker mechanism was triggered. The Chinese markets' fall impacted other global bellwethers, including the Japanese and Australian indices, which reacted negatively.
 
A weak rupee and increase in selling activity by foreign portfolio investors (FPIs) also subdued sentiment on Thursday. According to data with stock exchanges, FPIs had divested Rs242.48 crore on Wednesday. Market observers pointed out that volumes continued to rise in the sell-off, affirming the weak sentiment. Geo-political tensions in the Middle East and North Korea testing a thermo-nuclear device on Wednesday eroded investors' confidence. Besides, caution prevailed over the upcoming domestic macro-data on industrial output, retail inflation and the third-quarter earnings results which start coming in from January 12. The markets seemed to have ignored the positives, especially the release of latest FOMC (Federal Open Market Committee) meeting minutes which indicated that the US Fed might delay another round of rate hike.
 
The S&P BSE market breadth favoured the bears on Thursday -- with 2,189 declines and 636 advances. Sector-wise, automobile, capital goods, banking, healthcare and oil and gas indices stocks came under selling pressure.
 
A minimum dividend of 30%, declaration of special dividend and issue of bonus shares were the new guidelines from the central government as the owner for central public sector enterprises (CPSE) on Thursday. The department of economic affairs under the union ministry of finance in its office memorandum on 5 January 2016, said as a majority owner of CPSEs, the central government has decided on the new dividend policy. According to the new policy, a CPSE would declare an annual dividend of 30% of profit after tax (PAT) or 30% percent of the central government's equity whichever is higher; declaration of special dividend as a return for its equity investments; and issue of bonus shares by companies having large cash reserves. According to the department, the companies would have to look at market borrowings for capital investments so as to leverage the favourable debt-equity ratio. The economic affairs department also said market borrowing for capex would enforce more professionalism in the CPSEs. The new dividend policy seeks to increase the dividend income for the central government from the earlier rates of 20% of PAT or 20% of equity whichever is higher.
 
Positive Asian indices, and hopes of political consensus over key economic legislations, buoyed Indian equity markets on Friday. This resulted in the S &P BSE Sensex ending the day's trade up 83 points, a day after it touched a new 52-week low. On Friday, the bellwether indices opened on a positive note in sync with their Asian peers. Asian markets gained after China decided to put quick-fixes to its falling markets such as the suspension of the circuit-breaker system which halted trading twice this week. The Chinese administration raised the guidance rate for the yuan and asked state-controlled funds to buy equities. The major indices closed marginally higher in the Indian stock markets over Thursday’s close. On Friday, the S&P BSE market breadth favoured the bulls -- with 1,945 advances and 814 declines.

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Tax Benefit for Differently-abled in India
There are many tax benefits available to the differently-abled, parents who have dependents who are differently-abled, and for the private sector providing employment opportunities to them
 
There are more than 80 million people in India who are differently-abled. The challenges and hardship which they face are enormous form getting basic education, rehabilitation, continuous cost of medical requirements and getting job or practising a profession or vocation. The government of India has provided various concessions and reservations to empower differently able person and their families.
 
There are many disabled individual and families who are tax payers and there are many individuals who have dependents who are disabled, but are not aware of the provision of the Income Tax Acts which provides various benefits and concession in tax.  Further government has also provided concession to private sector to encourage them to appoint differently able person.
 
The article highlights the benefits government provides in Income Tax Act, Professional Tax and a scheme to encourage private sector to provide employment opportunities to differently able. 
 
The deduction under section 80U, 80DD, 80DDB and 10(14) under Income Tax Act and Professional Tax Act are direct deduction were as through proper tax planning one can claim benefit under section 64(1) of Income Tax Act. There is also one scheme introduce by Government to encourage private sector to employee person who are differently able. Lets us go through in details all 7 different benefits.
 
1. Income Tax Act, Section 80U – Deduction in case of person with disability
 
Who can claim the benefit: Individual who is resident during previous year and is certified by Medical Authority to be a person with Disability.
 
Deduction allowed: In case of Person with Disability (at least 40%) Rs75,000 is allowed. In case of Person with Severe Disability (80% of one or more disabilities) Rs1,25,000 is allowed.
 
Important Definitions:
 
“Disability” shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), and includes “autism”, “cerebral palsy” and “multiple disabilities” referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).
 
“Medical Authority” means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), or such other medical authority as may, by notification, be specified by the Central Government for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).
 
“Person with Disability” means a person referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).
 
“Person with Severe Disability” means—
 
(i) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or
(ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).
 
Important Points to be noted:
 
In a few cases, medical certificate will be valid up to a limited period, say five years and requires individual to reassess himself with the medical authority for fresh certificate. The deduction can only be claimed when the medical certificate is live. In case it is expired, a new certificate is required to claim the deduction.
 
Individuals whose income is from salary, Tax is deducted from source (TDS) by employer from monthly salary. The tax is computed after considering estimated gross total income of the individual for the entire year and divided by 12 months. Individuals can inform the employer regarding the benefit under this section, which can be reduce from gross total income and hence TDS is deducted on the lesser amount.
 
For prescribed Forms, see Form No. 10-IA and Forms prescribed under Persons with Disabilities (Equal Opportunities, Protection of Rights & Full Participation) Act, 1995. Medical certificate can be issued by Neurologist having a degree of Doctor of Medicine (MD) in Neurology (or, in case of children, a Paediatric Neurologist having an equivalent degree) or A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.
 
2. Income Tax Act, Section 80DD – Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability
 
Who can claim the benefit: Individual or Hindu Undivided Family (HUF) who is resident during previous year, and has incurred expenditure in relation to maintenance or treatment of depended disable or has invested in a particular scheme of LIC for benefit of the depended disable.
 
Deduction allowed: 
 
Rs75,000 for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability. Or Rs1,25,000 for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with Severe disability having medical certificate granted by prescribed Medical Authority
 
Any amount paid or deposited under a scheme framed by the Life Insurance Corporation or any other insurer or the Administrator or the specified company for the maintenance of a dependant, being a person with disability or person with Severe disability (subject to over all limit of Rs75,000 or Rs1,25,000 as applicable)
 
Important Definitions:
 
“Dependent” means—
 
(i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
(ii) in the case of a Hindu undivided family (HUF), a member of the Hindu undivided family dependent wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year
 
Other definitions of “disability”, “medical authority”, “person with disability” & “person with severe disability” will be same as mention in section 80 U.
 
Important Points to be noted:
 
In the case of an individual the deduction is available to spouse, children, parents, brothers or sisters of the individual. In the case of HUF the deduction is available to any member of the HUF.
 
Currently LIC is offering Jeevan Aadhar Plan for claiming benefit under this section.
The nomination in case of insurance taken should be in favour of dependent for receiving the benefit in lump sum or annuity in event of death of individual or Members of the HUF in whose name subscription of the scheme is taken. Alternatively nomination can be in favour of trust for the benefit of dependent
In case the dependent predeceases the individual or the member of the Hindu undivided an amount equal to the amount paid or deposited under the insurance scheme shall be deemed to be the income of the Individual or HUF in the year in which such amount is received and shall accordingly be chargeable to tax as the income of that year.
 
In a few cases medical certificate will be valid up to a limited period, say five years and requires individual to reassess himself with the medical authority for fresh certificate. The deduction can only be claimed were the medical certificate is live, in case it is expired new certificate is required to claim the deduction.
 
Salaried individuals have their tax deducted by employers from the monthly salary. The tax is computed after considering estimated gross total income of the individual for the entire year and divided by 12 months. Individuals can inform the employer regarding the benefit, which can be reduce from gross total income computation and hence TDS is deducted on the lesser amount
 
For prescribed Forms, see Form No. 10-IA and Forms prescribed under Persons with Disabilities (Equal Opportunities, Protection of Rights & Full Participation) Act, 1995. Medical certificate can be issued by Neurologist having a degree of Doctor of Medicine (MD) in Neurology (or, in case of children, a Paediatric Neurologist having an equivalent degree) or A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.
The benefit under this section will be not be available in cases were dependent has avail benefit us 80 U.
 
3. Income Tax Act Section 80DDB Deduction in respect of medical treatment, etc
 
Who can claim the benefit: Individual or HUF who is resident during previous year, and has paid any amount for the medical treatment of such disease or ailment, for himself or dependent in case of individual or any member of HUF in case of HUF
 
Deduction allowed: Rs40,000 deduction shall be allowed or amount actually paid, whichever is less. In case any of the above is a senior citizen (65 years or more), an additional deduction of Rs20,000 shall be allowed towards payment of the senior citizen. i.e. in case of senior citizens the above limit of Rs40,000 shall be upgraded to Rs60,000. Further in case of Super Senior Citizen (80 years or more), the limit is Rs80,000.
 
Important Definitions:
 
“Government hospital” includes a departmental dispensary, whether full-time or part-time, established and run by a Department of the Government, for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants.
 
“Senior Citizen” means an individual resident in India who is of the age of sixty-five years or more at any time during the relevant previous year.
 
Important Points to be noted:
 
The deduction shall be reduced by the amount received, if any, under the insurance from the insurer or reimbursed by the employer
 
For availing the deduction a certificate in the prescribed form from a neurologist, an oncologist, an urologist, a haematologist, an immunologist or such other prescribed specialists, working in a Government hospital, has to be submitted.
For the purposes of section the following shall be the eligible diseases or ailments:
 
(i) Neurological Diseases where the disability level has been certified to be of 40% and above,—
(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinson’s Disease
(ii) Malignant Cancers
(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
(iv) Chronic Renal failure
(v)  Haematological disorders:
(a) Haemophilia
(b) Thalassaemia
 
4. Income Tax Act Section 10(14) Rule 2BB Transport Allowance
 
Who can claim the benefit: Salaried Individual
 
Deduction allowed: Rs3,200 per month
 
Important Points to be noted: 
 
Transport allowance is granted to an employee, to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty. Most of employers pay Rs1,600 per month as the same is exempted. However, for employee, who is blind or orthopedically handicapped with disability of lower extremities, the exempted amount is Rs3,200 per month
Employee can request employer to structure their pay in such a manner that they receive Rs3,200 as monthly transport allowance to claim the benefit
Tax Exempt is irrespective of actual expense. (No bills/receipts needed)
 
5. Income Tax Act Section 64 Income of individual to include income of spouse, minor child, etc.
 
Who can claim the benefit: Individual who has a minor child suffering from any disability of the nature specified in section 80 U.
 
Deduction allowed: There is no direct deduction, but the income generated by minor child who is disabled will not be clubbed with individual.
 
Important Points to be noted: 
 
As the income of the child is not clubbed, the child is treated as a separate entity and can file an independent return with all its benefits. For example, Individual can transfer their revenue generating asset like fix deposits in the name of disabled child and the interest earned will not be clubbed with the income of individual but will be assessed separately, which provides significant scope for tax savings.
Further, the disabled child while filing own return can claim benefit under section 80U
 
6. Profession Tax Act, State Maharashtra Section 27A Exemptions 
 
Who can claim the benefit: Any person suffering from a permanent physical disability (including blindness), being a permanent physical disability specified in the rules made in this behalf by the State Government, which is certified by a physician, a surgeon or an oculist, as the case may be, working in a Government Hospital.
 
Deduction allowed: Complete amount of professional tax payable
 
Important Points to be noted: 
 
The individual shall forward the certificate to employer who will produces the aforesaid certificate before the prescribed authority in respect of the first assessment year for which he claims deduction.
As the professional tax is subject matter of state, which is responsible for collection, making rules and provide exemption, individual need to check with respective states for rules if any for exemption. (the above exemption is in relation to Maharashtra State). In most states, the professional tax is exempted for disable person.
 
7. Scheme For Providing Employment To Persons With Disabilities In Private Sector
 
Who can claim the benefit: Private Sector Employers who are employing person with disability on or after 1 April 2008.
 
Deduction / Benefits: Payment of the employer's contribution to the Employees Provident Fund (EPF) and Employees State Insurance (ESIC) for the first three years by Government.
 
Important Points to be noted: 
 
Employees with disabilities, with monthly wage up to Rs25,000 per month, working in the private sector would be covered. Those earning above Rs25,000 per month will not be eligible.
 
The scheme will be applicable to the employees with disabilities employed covered under the Persons with Disabilities (Equal Opportunities. Protection of Rights and Full Participation) Act. 1995 and the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple disabilities Act. 1999.
 
The employers would submit a copy of the disability certificate including statement, issued to the disabled employee by the Competent Authority, first time when such benefit under EPF and ESI is claimed.
 
The Government will directly provide employer's contribution for the schemes covered under the Employees Provident Fund & Miscellaneous Provisions Act. 1952 and the employment State Insurance Act 1948. This will be done in respect of employees for a maximum period of three years.
Though the government has provided some relief in tax, however much can be done to further empower the differently able people. The exemption under 80U and deduction for expenditure incurred for medical treatment under 80DD should be increased to Rs2,00,000 , considering rising cost of living and increasing cost of medicine supplies and rehabilitation.  
 
One of the major problems that a person with disability faces is in travelling. Most of them spend a huge amount on commuting to work places as the public mode of transport is not accessible for wheelchair users and for most other users; considering this, the government should increase the limit of transport allowance exemption for salaried class up to Rs5,000 every month. The introduction of scheme to encourage private sector to employee differently able person is good step by government. As per annual report 2009-10 by ministry of social justice and empowerment, under the scheme, 144 and 261 persons have been registered by Employees Provident Fund Organization (EPFO) and Employees State Insurance Corporation (ESIC) respectively till 30 September 2009 though the initially target was to create one lakh job every year. Though the response has been dreadful, the government needs to increase the incentive for further participation by private sector. For example, the government should link incentive for private sector to create work places accessible, increase the limit from three years contribution to life long. With the budget and the election coming, we can hope for some more promises from government.
 
(For any query, you can write to [email protected] Before taking any decisions do consult your Professional / tax advisor. The author does not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this document nor for any action taken in reliance there on.)

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COMMENTS

Piali Chatterjee

1 year ago

i wanted to know if a PwD can ask for a deduction on tax on fixed deposits in banks

shashank

2 years ago

Thanks for highlighting the provisions of deductions, as many may not be knowing. Please tell about, is there a income limit for claiming deduction by an individual/parents/guardian and is there a way to claim medical expenses incurred more than 1,25,000 on the dependent disabled person by parents.

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